This is the question of the day in Southern Ontario.
What to offer when you are in competition for a property you really want.
REALTORS(r) sometimes have formulas that vary from market to market. For example, X amount for every offer in the competition or a certain percentage for every offer in the mix.
It’s something but its not full proof by any means. In a more normal balanced market we can look at the comparable properties that have recently sold but even that is not full proof in this type of market.
The lack of balance in the supply and demand is throwing all logic out the window. The bidding war seems to be more impacted by where the other Buyers are coming from ( for example from a higher priced market so everything looks like a bargin). Also on how many times the other Buyers have lost in competition. Some get so fed up that they go all in on one they really want and often pay tens of thousands of dollars more than the next best bid. All information you can not get beforehand.
My best advice is to put in an offer at a price that if you lose and are told it was close you will say “that’s okay, that’s what I was willing to pay” or if you win you don’t say, “oh no, I over paid”. That is your sweet spot and one only you can determine.
If I figure out the formula, I’ll let you know. Wish I had a crystal ball!