More and more buyers in the Toronto market feel that they are being cheated in a multiple offer scenario. How does a buyer or buyer’s agent truly know that there are competing offers with their own? I have news for you buyer’s, you don’t, and neither does your buyer agent. There is no systematic way of finding out unless you launch an investigation with TREB or RECO for mis-dealings.
The Toronto Real Estate Board (TREB) offers no protection for the buyer in a multiple offer scenario. The system that TREB has set up for multiple offers is dated and out of reach with reality. I have been on several multiple offer’s and I question wether there truly is competing offers. It is a 50/50 shot in the dark wether to believe a listing agent. I have had buyers that chose not to believe in a competing offer scenario and there was other offers. So as a buyer do you want to take that chance? No, therefore you compete and take at face value a competing scenario.
There are several ways to make the system more fair. One way is to have a buyer agent registry, in which all agents involved in a multiple offer are disclosed to which other agents are competing. The agents can then verify if they have an offer. If an agent withdraws an offer, it should be disclosed in writing to all agents before offer presentation.
Secondly, if a multipple offer scenario arises, no offers can be faxed. You must present your offer. Buyer agents will then be able to verify that other agents have offers. With todays technology (i.e. Skype) there is no reason for faxing offers. Do your job agents, present offers!
These two solutions are sure way to help the buyer in a multiple offer scenario. Will TREB actually do anything? Probably not! They are two busy scanning listings for agents who put zero under the tax section.