Transparent Sale Process Receives 45 Bids
TORONTO, Nov. 14, 2018 (GLOBE NEWSWIRE) — In an event unlike any that the Toronto real estate market has seen before, a Scarborough home sold in an action-packed open auction Tuesday night.
The property, 6 Mozart Avenue, a detached bungalow in a quiet East Toronto neighbourhood opened for bidding online early in the evening, and after considerable activity, it all closed with a sale.
In all, 45 bids were placed on the property, with all the drama of a live auction. Hundreds watched online as the price crept up $2,000 at a time, until there was only one bidder remaining. Nearly a dozen bidders participated, and in this process, were able to see exactly the price it took to be in the lead.
Quite different from the ‘silent bidding wars’ that have become a staple in Toronto real estate, the transparency of the auction actually gave the buyer a reason to stick around a bit longer in the process. Seeing the price to pay ensured that no potential buyer would be uneasy about whether they were overbidding or coming in too low.
With a starting bid of $650,000, the property was priced in line with many market comparables, and there was a reserve price set (it was revealed to be $675,000 when it was reached). The reserve price was the bid that ensured the home would be sold at the end of the auction, and it was hit just an hour into the bidding.
As the auction approached a conclusion, bidders bounced back and forth as onlookers (and bidders who had bowed out) watched. When the dust settled, the successful bidder purchased the home for $743,000. As per auction terms, the paperwork was all signed the same evening, closing out an exciting night for real estate.
The auction was run by On The Block Realty, the brokerage and auction house who developed this auction platform and who have run about half a dozen GTA home auctions in the last year. The listing had more than 80 showings over the course of the week, and Realtors were quite enthusiastic to learn more about the process. The participation was a clear message that this is a new option for real estate in the GTA, and a choice that sellers can strongly consider as a way to get the best price for their home.
With the recent suggestions of the Ontario Real Estate Association including a call for open bidding as an option for sellers, this auction truly proved why such an option could be beneficial to all parties. Several people were registered to bid, but saw the price go past their comfort level and didn’t even have to place a bid because they knew the price was too high for them. At no point was there uncertainty about what to offer or when, as the bidding continued until only one buyer remained.
In the end, that buyer, and an equally happy seller got to go to bed with a deal on a house that came together in the most transparent way the Toronto market has ever seen.
On The Block is the product of Katie and Daniel Steinfeld, two GTA Realtors with an extensive background in finance, marketing and sales. As platforms like Uber and Airbnb have disrupted their spaces, On The Block is positioned to challenge a real estate process that for too long hasn’t seen significant change. With transparency in constant question, and affordability diminishing, it’s more important than ever to give people some choice and power in the biggest purchasing decision of their lives.
Chief Executive Officer
On The Block Realty, Inc.