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Bidding Wars becoming the norm for Hamilton, Stoney Creek and Grimsby

February 26, 2015

Hamilton, Stoney Creek & Grimsby is a growing hot bed for real estate, where buyers (and their real estate agents) need sharp elbows to secure a deal. Now these cities are becoming even more cutthroat for home seekers, thanks to a shift in the way bidding wars have evolved and become the norm.

In this low-inventory environment, sellers are receiving numerous offers on their properties, causing them to backtrack on selling to the first submitted offer, in bidding wars, which have become increasingly common, the concept of “best and final,” in which Agents ask buyers to submit their highest and most appealing offer.

For buyers, the shifting landscape is causing frustration. “Now there are buyers who will pay $2000-$60,000 over asking. Sometimes the first person gets so irritated; they don’t want to compete. They just walk away.”

In some cases it’s not the highest offer that gets accepted but the offer that has the least amount of conditions or no conditions at all (cash offer).  A Home inspection, financing conditions are always recommended by the representing agents which makes pre home inspections by the seller or buyer a more powerful tool and a lender pre approval for the buyer important at the negotiating table.

“We’re very careful with the term ‘best and final’ because you get a ‘best and final’ from one of the buyers, and then someone else’s “best and final” blows that offer out of the planet, and what are you supposed to do?” Jeff Golfi said. “You can’t have your client not take the better offer”.

Low inventory, affordability, heavy sales volume and out of town buyers appear to be driving competition between buyers.

Grimsby detached and town home prices remained consistently high in 2014. The average sales price for a Grimsby detached home inched up by 1.06% to $$416,584 in 2014, a modest year-over-year gain, an increase which brings the average price close to $248.20 a square foot. The Average price for a Grimsby town home inched up by 1.08% to $282,546 this year, which brings the average price close to $203.00 a square foot. These prices are very attractive with the average selling price in Burlington for 2014 being $656,774 for a detached home & $401,387 for a town home.

Not all homes go into bidding wars, the average days on the market for a Grimsby listing is 45 days so picking the right realtor to price, market and negotiate your sale of property is a big part of getting top dollar for your home!

-Jeff Golfi

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