The first Ontario home to sell on the Final Offer platform was 367 Balliol St., Toronto, which was purchased via a final offer for $2.1-million on an initial list price of $1.699-million.StudioGTA
The conventional wisdom in real estate is that blind bidding is never going away, despite strong opposition to the practice, because of a simple assertion: they work.
“For my entire career we’ve been handcuffed doing blind bidding,” Adam Nadler, a realtor with Royal LePage Your Community Realty in Richmond Hill, Ont. The theory goes that if buyers have to jump into a pool with no information other than the number of other registered bids they will all make their maximum offer – and perhaps overpay – gaining the seller the best possible price. It has been such a strongly held view that, until this year, the laws governing Ontario realtors wouldn’t even allow them to share details of competing bids. “Buyers were bidding against themselves, and that becomes a really big issue,” said Mr. Nadler.
However, with changes to the Trust in Real Estate Services Act (TRESA) coming into force, Ontario sellers can now choose whether or not they want to keep the guessing game going. Exactly how to present that newly available information was left open in the TRESA legislation, leaving a gap for potentially new ways to do business.
“For the consumer, they don’t want the guesswork, they want more information,” said Tim Quirk, Chief Strategy Officer with Final Offer, a U.S.-based venture-backed real estate tech platform that’s ready to test whether the old blind bidding status quo can compete with a more transparent way to sell homes.
FinalOffer.com launched in Canada in recent weeks working with three large Toronto-area brokerages. Its website looks like any number of online real estate listings services, with the key difference that sellers can let potential bidders know about offers they have received and even offer guidance about what prices they might accept above the initial list price. Sellers commit themselves to a price they would consider and also a “final offer” price – a sort of pre-loaded bully offer price, that would let a buyer skip the bidding contest and lock up the sale. The first Ontario home to sell on the platform was 367 Balliol St., purchased via a final offer for $2.1-million on an initial list price of $1.699-million.
Mr. Nadler has already got one listing with open bids on the platform. He’s an early adopter, having first heard about Final Offer from U.S.-based colleagues in the fall of 2023. He pushed his brokerage to consider adopting it.
“People just want to have a fair chance, or a fair opportunity to buy,” said Vivian Risi, a veteran Toronto realtor and Mr. Nadler’s boss. She’s rolled the platform out to the hundreds of agents working with her, but doesn’t expect them to abandon blind bidding. “I don’t think it’s going to be overnight. … I think it’s going to be an adjustment process. There will be certain clients where this feels right for them. Now they have an option.”
The Final Offer platform allows potential bidders to know about offers sellers have received and even offers guidance about what prices they might accept above the initial list price.StudioGTA
Final Offer launched in 2022, and has rolled out to 10 states and now Ontario. According to Mr. Quirk there have been 500 homes sold in the U.S. on Final Offer, 85 per cent sold with winning bid prices disclosed to bidders in some way. There’s also early data that suggests there’s a price upside to going transparent. “What we’re seeing is on average, they are selling their homes for 2 to 7 per cent sales-to-list price higher than market average,” he said.
Final Offer’s share of the U.S. market is still a drop in the bucket. In the Washington metropolitan area where Final Offer has been operating since it launched, there were more than 60,000 homes sold in 2023.
There are many who don’t believe open offers of any kind are going to take over real estate in Ontario, or Canada.
“I’ll tell you right now: sellers, they never say ‘yes’ to transparency,” said Nasma Ali, broker with One Group – Real Broker Ontario Ltd. “The whole system of no transparency is in favour of the seller.”
Not that blind bidding works every time: Ms. Ali’s seen inexperienced agents botch an offer night for a seller by neglecting to come back to buyers for a second round, leaving willing bidders waiting and leaving potential money on the table. “The only argument I see for a seller, maybe some people might be more inclined to offer more – and be more comfortable to offer their max – if they are seeing it’s close,” she said.
Ms. Ali has heard from buyers who call sellers holding blind auctions greedy, but she questions why anyone would thinking that sellers shouldn’t be allowed to pursue the highest possible dollar.
“There’s an element we all forget, especially in a country where it can be very hard to get by: Sellers are often in a very rare position of finally being able to get ahead and finally make some money,” she said. For many long-time homeowners, their house is their No. 1 asset, in recent decades, the one that’s appreciated the most.
There is little data to prove that blind auctions make prices rise higher than open auctions. A 2021 study from the University of Ottawa’s Smart Prosperity Institute found that Sweden and New Zealand (countries with more open bidding) actually both outperformed Canada’s real estate price inflation.
“This isn’t something that will help affordability, it’s not meant to do that,” said Mr. Adler. Final Offer data suggests it can deliver higher prices with transparency, he said, while making sellers feel better about the whole process. “It’s doing extremely well for sellers, but the rated satisfaction for buyers has also increased,” he said.
“Whether buying a car or computer, the better you understand your decision the better you feel about it,” said Chris Slightham, president of Royal LePage Signature Realty, who says his brokerage jumped on the Final Offer train in part because it was venturing into unknown territory. “We knew we needed something to offer clients and consumers. … What comes with that is trial and error and learning and what scenarios does it work best in. For now, we’re excited to be on the leading edge and bring it to the marketplace.”
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
