75% of Canadian Homebuyers Avoid Bidding Wars

Canadians homebuyers avoid bidding wars

See more of this beautiful home at ComFree.com

Perhaps the stereotype that Canadians are way too nice rings truer than we think. According to a web-based survey by Leger Marketing for BMO Bank of Montreal, 75% of Canadian homebuyers avoid bidding wars when it comes to house hunting.

Do Canadian homebuyers need bidding wars?

Only 25% would willingly enter a bidding war and from those, 50% would be willing to go 10% above asking price, and 25% would be willing to go a whopping 20% above asking. That might make for some very happy sellers, but does it happen often enough that it will eventually become the norm. Unlikely.

Alberta, Ontario, Prairies most likely to engage in bidding wars

Here is how the willingness to enter a bidding war breaks down in Canada:

Province

Percentage

Saskatchewan 32%
Manitoba 32%
Ontario 28%
Alberta 25%
British Columbia 23%
Atlantic Canada 13%
Quebec 10%

 

The survey of 1,000 home and condo owners, taken between March 19 and 22, 2012, also revealed that 34% of men are more readily willing to bid as much as 20% more on a home than women, and that only 20% of women are willing to enter a bidding war at all.

Of course, considering that your total housing costs should not exceed more than 30% of your household income, it’s important to know when it’s time to walk away from a bidding war.

Are you a Canadian hombuyer engaging in a bidding war?

According to Doug Porter, the deputy chief economist for BMO Capital Marketer, “Prices and sales in the rest of the country are rising modestly.”

So where do you stand in all of this? Would you be willing to start a bidding war if you found the home of your dreams? Let us know in the comments below.

Rosy Saadeh

About Rosy Saadeh

Rosy Saadeh is a Social Media Manager and Marketer and spends her time scouring the net trying to make new friends, help clients and post interesting stories about real estate and the like in Canada. Connect with her on Twitter, Facebook, Google+, and Pinterest.

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