This Toronto family struggled to buy a home for $2 million. Here's how they did it
Toronto homebuyers are being urged to put their best offer forward first in an effort to avoid disappointment during the bidding process.
Jonathan Wong said he and his wife had been searching for a detached home in Richmond Hill, with an early maximum budget of $1.5 million, for years before they were finally able to close the deal.
The 40-year-old said they put a bid on two homes previously, but played the “incremental game” and ultimately lost.
“Off-and-on for three years we went to open houses, did our due diligence even pre-approved on the mortgages so that we can jump on the right house and we ever saw it,” Wong told CTV News Toronto.
“I guess for whatever reason the right house didn't show up or the price points were just way too high.”
They eventually upped their budget to $2 million, but were unable to put a successful bid on a home. Wong said they would pick an offer they were comfortable with, knowing the owner would come back and ask for a higher price.
“What we learned through that process is that, because it's blind, you actually don't win that way,” he said. “You can't win that way because the owner will always come back to you and say, ‘Do you want to improve your bid?’ but you don't actually know what the other people are offering. So you're going to lose more often than not, at least that's what we experienced.”
- Have you recently bought a house? We want to hear from you
While Ontario may see changes to the Trust in Real Estate Services Act that would allow home sellers to share bids on their property next year, the process as it stands now is blind, meaning that individuals looking to put an offer on a home do so without knowing how much their competitors are putting forward.
A new regulation proposed by the Ontario government—which is part of a larger regulatory change that will go into effect un April 2023—would give sellers the option to “opt for an open offer process.”
Bidding reform is also a part of the Liberal Party’s election platform, although it is unclear what exactly would change.
Kevin Crigger, president of the Toronto Regional Real Estate Board, said the lack of supply on the market could play a part in how competitive a bidding process can be. Often, he said, clients will be advised to put their “best foot forward” at the beginning of the process. This would include coming up with terms and conditions.
“I think by staying engaged in a longer process over many hours, all it does really is given opportunity for those you're competing with to also you know, add to their respective offers,” he said, adding that homebuyers need to have a discussion with their real estate agent around the value of the property and its position in the market before making any offers.
“I think if you have a comfort level at a price point and you have a comfort level around, you know terms, certainly putting your best foot forward is always the best approach.”
Wong successfully put a bid on a home in Richmond Hill in September 2021. The asking price for the detached home was $1.9 million and the couple offered $2.15 million up front.
“I think we're just lucky that the owner wasn't interested in prolonging the process,” Wong said. “It's not without its quirks, but it’s way better than any of the houses right now that are on the market for roughly the same price.”
CTVNews.ca Top Stories
Widow looking for answers after Quebec man dies in Texas Ironman competition
The widow of a Quebec man who died competing in an Ironman competition is looking for answers.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
World seeing near breakdown of international law amid wars in Gaza and Ukraine, Amnesty says
The world is seeing a near breakdown of international law amid flagrant rule-breaking in Gaza and Ukraine, multiplying armed conflicts, the rise of authoritarianism and huge rights violations in Sudan, Ethiopia and Myanmar, Amnesty International warned Wednesday as it published its annual report.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
Amid concerns over 'collateral damage' Trudeau, Freeland defend capital gains tax change
Facing pushback from physicians and businesspeople over the coming increase to the capital gains inclusion rate, Prime Minister Justin Trudeau and his deputy Chrystia Freeland are standing by their plan to target Canada's highest earners.
U.S. Senate passes bill forcing TikTok's parent company to sell or face ban, sends to Biden for signature
The Senate passed legislation Tuesday that would force TikTok's China-based parent company to sell the social media platform under the threat of a ban, a contentious move by U.S. lawmakers that's expected to face legal challenges.
Wildfire southwest of Peace River spurs evacuation order
People living near a wildfire burning about 15 kilometres southwest of Peace River are being told to evacuate their homes.
U.S. Senate overwhelmingly passes aid for Ukraine, Israel and Taiwan with big bipartisan vote
The U.S. Senate has passed US$95 billion in war aid to Ukraine, Israel and Taiwan, sending the legislation to President Joe Biden after months of delays and contentious debate over how involved the United States should be in foreign wars.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.