A proxy for real estate bidding wars

Would you spend millions at a real estate auction?

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Auctions are the new real estate bidding wars (BarryCohenHomes.com)

Auctions are the new real estate bidding wars (BarryCohenHomes.com)

Would you consider selling your home in an auction? While real estate auctions are a lot more common in the U.S.A, a Toronto realtor is hoping to attract some attention—and lots of money—by auctioning off a Bridle Path mansion.

Barry Cohen, a realtor with RE/MAX Realtron, scheduled an auction date with Concierge Auctions for April 16, 2015 for the sale of 40 Park Lane Circle in the extravagantly expensive section of Toronto’s Bridle Path area. Cohen is hoping the auction of this 6+2 bedroom, 14 bathroom, new-build mansion (which sits on 2.4 acres of land overlooking the ravine) will push the $13,980,000 list price up.

Auctions aren’t common but using a hold-back offer strategy is and this is the strategy many Toronto realtors (as well as realtors in other popular urban cities) use to push up the price. In an auction, the potential buyer needs to register. Hold-back strategies also require potential buyers to register (through their realtor and, typically, by formally submitting a purchase offer). Just like an auction, the hold-back strategy requires days or weeks of promoting the property (through pictures and open houses) in order to drum up interest and hopefully demand. And just like auctions, hold-back strategies typically turn into real estate bidding wars, which push up prices. The only real difference is that an auction is a more formalized hold-back strategy/bidding war.

(For more on strategies and tricks realtors use to sell homes go here.)

If you want to participate in this Bridle Path auction, you’ll need to register by April 14.

Read more from Romana King at Home Owner on Facebook »

Do you have a real estate questionMoneySense senior editor, Home Owner columnist and licensed real estate agent Romana King takes reader questions on buying, selling and home renovations today (Wednesday, March 18, 2015) at 1 p.m. EST.

To submit your questions in advance email letters@moneysense.ca, use #realestatechat on Twitter or join us live. Preference will be given to live chat attendees.

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