It seems like the restricted inventory we are seeing in the market has given us the return of the Bidding Wars or more politely referred to as The Offer Date in most real estate literature. For the most part they help listings sell at a faster rate than perhaps they would without it and in some cases they sell for better than market value.
Just this week my clients fell in love with a very nice town home in Newmarket that was listed at $365,000 with a fixed Offer Date and a pre-listing home inspection was provided. The home had significant recent renovations that were amateurish at best with the 'renovator' making making visible mistakes NOT listed in the home inspection (???). (Faulty electrical work, buckling laminate floors, granite backsplash installed as broken pieces). We now had several red-flags but the client felt comfortable and we made our offer.
After submitting our offer at noon as per the instructions (to apparently avoid late nite offers) we were informed just before midnight that we lost to a firm bid at $20,000 over asking. In my opinion some buyer either took bad advice or somehow had money burning a hole in their pocket considering for $4,000 they could have bought a much larger home, better updated in a better location just the night before.
Maybe it's time we asked the government to allow bids to be published (like an auction) instead of the private bidding that happens now. Just my two cents.