Five things we learned about Toronto’s real estate bidding wars from the Globe and Mail

Some basic math: a hot real estate market in Toronto as well as several banks that offer mortgage rates historically low, like a bidding war seriously ridiculous (case in point: the bungalow Willowdale sold for $ 1.2 million in early This month the asking price $ 421.800). A recent Globe and Mail have dug in the battles of Toronto races, share stories from the nightmare Homebuyers and a few words of caution from experts. Here are our top five lights.


The first Realtors Crafty uses psychological tricks to start the bidding war
Property prices predators to burn the bidding wars are a winning tactic. Low prices create "auction fever that more deals will determine the bid higher than they would have started at a higher price to begin with," according to a professor of economic psychology.


The second Toronto is attracting foreign buyers with a lot of money and spend it
The story contains some striking examples of how foreign buyers fueling the market. The woman who paid more than $ 421,800 for the bungalow Willowdale request from China, as a buyer who paid $ 1.4 million for a unit of Don Mills quoted at $ 1.25 million dollars. An agent with Harvey Kalles said it has sold more than a dozen suites with a blow to their foreign customers.


The third potential buyers Desperate to break the rules for home-purchase label
When agents are submitting an offer for a house in Mississauga, has been shown to buyers as defined in person to plead his cause. At least the house was for sale, also, a couple who are looking to Christmas has begun to distribute the letters to pass some beautiful homes and asked if the owners would consider selling.


The fourth year the school is located behind the thrust of the spring sales
The warmer weather is not the sole cause of the housing market heats up in spring. Home Sales peak in March and April the families who buy now may move during the summer, which means that children will not change mid-year school.


The fifth Banks offer more money than buyers require
Economists argue that low interest rates encourage people to overload yourself, but banks, apparently doing their urging. "I go to the bank to get approved for a mortgage," says a buyer, who stayed behind. "I think to a maximum mortgage of $ 600,000, and the bank tells me:" Why so little? Why not go to a loan of $ 900,000 or $ 1 million? "