Ontario Real Estate Association calls on province to allow open bidding process
The Ontario Real Estate Association (OREA) is recommending the province adopt a new open bidding process that could be a game changer for home buyers, who are currently forced to bid blind against competing offers in Toronto’s hot housing market.
Under the current rules, realtors aren’t allowed to share the details of an offer with anyone other than the home seller. That means consumers, facing competition from other buyers, have no idea what money or conditions they are bidding against.
The blind process has been blamed for driving up home prices in particularly fierce competition such as that seen in the Toronto-area real estate market in 2016 and early 2017, when it was common for a property to attract a dozen offers, sometimes more.
The market has since cooled, but less heated competition for homes continues, particularly in the city of Toronto.