Bidding Wars

OTTAWA — Spring is here, and for some that means the hunt is on for a new home. What they might find themselves involved in, however, is a bidding war.


A poll conducted for Bank of Montreal showed 16 per cent of respondents had at one point in their lives been involved in a bidding war for a home.


Respondents in the online survey, taken by Leger Marketing, were all Canadians between the ages of 25 and 45, and had intentions to purchase a home within the next two years.


Those who had been part of a bidding war, on average, said they were prepared to pay nine per cent above the listed price.


Still, homebuyers are advised to maintain fiscal discipline when shopping for a dwelling.


"Buying a home can be the most important purchase decision one will ever make, so it's important to take a practical approach by setting your spending limit and sticking to it," said BMO mortgage expert Laura Parsons.


"The shine of finding the perfect home can quickly wear off if you over-extend yourself financially and leave yourself without the wiggle room to enjoy it."


The poll found British Columbia was the province in which respondents were most likely to see themselves involved a home bidding war, at 25 per cent. The response rate was lowest in Quebec, at four per cent.


The poll was taken between March 10 and March 21.

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