The Real Estate Council of Ontario (RECO) is asking consumers, “How much would you go over budget to win a bidding war for your dream home?”
A new study of recent Ontario home buyers and home sellers, commissioned by RECO, found that 47 per cent of those polled would consider paying up to 10 per cent over their budget and 31 per cent would consider offering 10 to 20 per cent more to outbid the competition. In the Greater Toronto Area, where bidding wars are more likely to occur, 57 per cent of respondents would consider offering up to 10 per cent over budget and 38 per cent would consider going over their budget by between 10 to 20 per cent.
To help consumers overcome the challenges of a hot market, RECO launched the Be Home Smart Tour, a community outreach campaign that will travel to 13 locations across Ontario this fall and into 2017. The campaign includes an interactive display booth targeting those in the buying and/or selling stage of their lives – engaged/newly married couples, new parents and downsizing boomers.
“Our research findings make it clear that too many Ontarians may be struggling to keep a cool head in the hot and highly competitive real estate markets that are becoming the norm,” says Joe Richer, registrar of RECO. “Buying or selling a home can be a rollercoaster of emotions. People tend to let their heart rule their heads, especially first-time buyers.”
The survey found that 35 per cent of recent homebuyers said they let their emotions influence them more than they should have the last time they purchased a home. Among millennials 18 to 34 years of age, the number jumped to 42 per cent.
Stops in the RECO Be Home Smart Tour include the London Baby Expo at the Metroland Media Agriplex on Oct. 1 and 2; the Zoomer Show in Toronto at the Enercare Centre on Oct. 29 and 30; and the BabyTime Show in Toronto at the Metro Convention Centre from Nov. 11 to 13. More shows around the province will be added in 2017.
