How to tame the housing wars: Why open bidding may not work
Correction: Bully bids are pre-emptive offers submitted before a date indicated by the seller. An earlier version of this article incorrectly referred to bully bids as aggressive offers.
The idea of eliminating blind bidding from residential real estate transactions is gaining steam among those looking for a quick way to squirt some cold water onto Canada’s sizzling hot housing market.
In B.C., for example, the provincial government is reviewing blind bidding as part of a broader effort to strengthen protections for homebuyers.
In much of Canada, the volume of homes changing hands has come down from the eye-popping peak set in March. But for every home with a for-sale sign, in many parts of the country, there are still plenty of eager homebuyers, and bidding wars remain common.
But while critics of blind bidding make a straightforward case, it’s hard to tell whether so-called “open bidding” would be any better.