According to data available from the Calgary Real Estate Board, in March, Alberta home sales decreased by 20 per cent to a dismal 5,131 transactions. Unfortunately, for potential home sellers, this is a trend that appears to be here to stay.
The data also revealed that while Canadian MLS sales increased by 9.5 per cent from the previous year, sales in Calgary had actually decreased by an astounding 30 per cent to 2,215 transactions. At the same time, properties for sale continued to hit the market. In fact, the data divulged that more than 5,800 properties in Calgary were listed on the MLS, a substantial increase from the approximately 3,600 this time a year ago.
As a result, prospective home sellers in Calgary are looking for alternative methods of selling their homes. One of the most promising options is to sell by auction.
However, this is a topic of heated debate among realtors, sellers, and buyers. Sellers wonder if they could get a higher price by offering full disclosure or by opening the bidding process, while buyers become frustrated when they fail to win homes through the traditional closed bidding method. Many bidders express a desire for open bidding, where they would know how much they need to increase their bid by to win.
There is speculation that Calgary’s hot real estate market is placing buyers in difficult situations. After all, individuals who are looking for “conditions” attached to the sale are frequently losing out on the purchase. Home inspections are often skipped. While there was at least a one week wait for qualified home inspectors six months ago, today they are frequently done on the same day they are requested. In cases of multiple offers, the offer accepted is usually the one that has the least number of conditions attached to it. Home inspectors are cautioning buyers to beware of what they may be getting into. For example, there may be problems that cannot be seen unless you know exactly where to look.
Auctions can eliminate this problem because the potential buyer has plenty of opportunities to have the home inspected before they submit their bid.
In the past, Calgary realtors have agreed that a home inspection is the responsibility of the buyer, but today they have changed their recommendation. In order to get top dollar for their home, sellers are encouraged to have an inspection done before they list the property. A typical home inspection costs around $300.
Bidwin.org is proud to offer their services in helping you sell your home via a home auction.