Trish Bongard Godfrey

No slowdown in sight.

18 November 2016
Trish Bongard Godfrey

In my office we have a white board where agents post their recent sales. It includes the Property, List Price, Sold Price, Number of Offers and who represented the Buyer and the Seller.

The Board I wish we had is the wall of deals not made: Deal Not done. Offers prepared and submitted with multiple offers for clients and who did not get the deal, because that would be very revealing, too. This week I represented buyers on an offer in Lawrence Park that went for well over list price, and there were 6 offers all together. There had been 7, but one dropped out. The next night, a colleague texted me at about 9 PM to say she was sitting in a car, waiting, and was one of 20 offers on a property that was probably a “first time buyers” home, on Kingston Road. It sold for over $900,000.   These are just anecdotal stories: we all have them. You’ve heard them.

Each of these offers represents a lot of professional time, gas, and congestion. It involves a lot of stress, too.

Each Buyer has probably visited the house at least twice or maybe even up to 4 times, and perhaps a couple of these Buyers have paid for a home inspection. And let’s say each property visit is in two cars (client and agent), so that’s at least 80 car trips from somewhere. And in at least ¼ of these visits from serious buyers, I am betting the parents came along. So, add on another 5 car trips. And that doesn’t include all those people who went to see the open house who didn’t make an offer!

Probably all of these Buyers have engaged their bank, or mortgage broker or parents, in several hours of work to get some sort of financial pre-approval.

Each Offer takes about a day in total to prepare, get signed, reviewed, edited, etc. Every Agent should have paid some money to get property information from Land Registry that the Seller does not provide. They may have consulted a lawyer if there were tricky elements to the deal. They have spent lots of time reviewing other property sales: comparing and contrasting, determining what the final sale price might be. They will have also spent days, or even enough time to add up to weeks, visiting other homes so that their client would know which property they would buy.

During offer presentations, quite often, clients had stood by while they waited for feedback from the listing agent, who, on their clients instructions, has send some or all the offers back to see if they can get more money for their property. Families, lenders, contractors, and friends all get calls during these times while the Buyers consider whether or not to continue with the auction. It’s stressful, and takes a lot of energy from Buyers and Sellers alike. 

There is a whole lot more that goes into this process, but I am telling you these anecdotal stories

  1. To suggest that the market did not slow down after the election last week and
  2. To avoid saying anything much about the election results. I think that the impact on real estate will for sure be “uncertain”, but I honestly don’t know if it will be good or bad for the market.

But if asked, I say this: I am pretty sure that there are a lot of Canadian ex-pats who will be thinking about coming home, and Americans who are looking for a way out.

Time will tell.