More transparent real estate bidding system focus of new pilot project
Posted April 15, 2022 7:45 am.
Buying a home can often be a stressful process and the blind bidding system can add that extra layer of frustration if you have no idea what other people have offered.
With that in mind, a new pilot project is being set up, aimed at creating a more transparent process.
It’s essentially a reimagining of the whole system we have now and it’s particularly relevant for markets like Vancouver and Toronto, where buying a home has become out of reach for many people.
“Multiple offer scenarios have become increasingly commonplace in today’s real estate environment,” Canadian Real Estate Association (CREA) chief executive Michael Bourque said in a statement. “Canadian property buyers and sellers seek greater confidence in the process, while Canadian realtors seek tools to enable and more easily manage these situations. We’re very excited about the potential of this pilot to address both.”
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Under this CREA project, you’d be able to see offers from other potential buyers in real time, using software from Australian real estate firm Openn Negotiation.
“Through six-plus years of development, execution, and innovation in the Australian market, we have proven that both the real estate professional and consumer benefit greatly from enhanced transparency,” said executive director of Openn Duncan Anderson in a statement. “We are thrilled by the opportunity to partner with CREA to introduce Openn Offers to the Canadian marketplace.”
Toronto realtor Shane Little tells CityNews it’s an approach that some people would like to see tried at the very least.
“Buyers are fed up,” Little said. “They feel like they’re getting kicked in the teeth a little bit. They have to waive their conditions, they don’t know what they’re competing against.”
Little says it won’t solve the affordability issue — but it is one piece to the larger puzzle.
“It’s not going to fix the issue,” Little said. “At the end of the day it is a supply issue. But I do think it will have a significant effect for buyers.”
And there are other challenges too. The regulations in some provinces would appear to ban this pilot project from even going ahead, at least as they stand right now.
The CREA says it will launch in select markets at some point this summer.
