Re:Canada bans foreign home buyers for two years
by qwery on Tuesday April 19, 2022 @04:22PM
(#31088512)
The only way your bid gets accepted is when you overbid. If your "fair"/"what it's worth" offer gets accepted, you have overvalued the property.
> generally they will give you one chance to "improve" your offer
Of course, you have no idea what you're competing against, or if there even is a higher offer.
> in an open bidding system, you are literally in competition for who can/is willing to pay the most for the home.
This is true for blind auctions too.
> The ceiling is basically what you think is "fair". > in an open bidding system ... The ceiling is what you can/willing to afford
I don't see any reason why you couldn't set the ceiling to what you think is "fair" at an open auction.
Re:Canada bans foreign home buyers for two years
by switchbak on Tuesday April 19, 2022 @02:57PM
(#31087341)
That kind of rationality is rarely found in a hot market. You'll essentially be driven to massive overbidding due to the highest bid in the group. In a big enough market with enough demand, you can be sure that high bid will be well beyond a rational amount. Fairness has essentially nothing to do with it.
Once you lose 5-10 bids, you'll either give up on owning a home, move to the country or start upping your bid to suit.
Now, in an open bidding system, you are literally in competition for who can/is willing to pay the most for the home. The ceiling is what you can/willing to afford - back and forth with other bidders until literally the highest price is extracted.