Depuis le 10 juin 2022, une législation révolutionnaire sur le courtage immobilier au Québec est entrée en vigueur, transformant radicalement la manière dont les courtiers immobiliers s'engagent dans le processus d'achat de leurs clients. Cette nouvelle loi proscrit expressément aux courtiers immobiliers de représenter à la fois l'acheteur et le vendeur au cours d'une même transaction, considérée comme un conflit d'intérêts manifeste.
In-depth analysis of artificial bidding
Artificial bidding explained: A multi-faceted phenomenon
At the core of real estate, artificial bidding is a phenomenon in which property prices are pushed to artificially high levels, often influenced by the perception of strong demand rather than actual value. This complex dynamic benefits a minority while posing considerable risks to the integrity of the real estate market and to fairness within society. As real estate brokers, our involvement in this dynamic is significant, often placing us at the crossroads between our customers’ expectations and needs, and the imperatives of ethical and responsible professional practice.
The origins and drivers of artificial bidding
Artificial overbidding is rooted in a complex combination of economic, psychological and market factors. The pressure to acquire property in highly competitive markets, the sometimes unrealistic expectations of sellers regarding the value of their properties, and intense competition between buyers are all catalysts.
When a property for sale attracts a large number of visitors, it’s common for the seller’s broker and his client to imagine that the property is of interest to a large number of people. However, many of these visitors, often without a broker of their own, lack information and are driven by emotion and pressure. This situation is exacerbated when the broker, acting in the seller’s interest, stresses the urgency of taking action due to high demand.
This dynamic puts considerable pressure on potential buyers who are not accompanied by a broker. Encouraged to submit offers hastily, which may turn out to be inappropriate, they unwittingly contribute to artificially inflating the volume of offers received by the seller.
This escalation triggers a spiral where the mere knowledge of other competing offers puts unnecessary pressure on the buyer. When they learn that the number of bids has reached 10, 15 or more, they rush to bid, and this only serves to push up the final price of the property. This is the essence of artificial bidding, a reality for which we all bear some responsibility.
It is our duty to advise buyers to be represented by their own broker, in order to navigate the process more serenely. Artificial overbidding, fuelled by an erroneous perception of demand, leads to an inflation of offers that does not reflect the true reality of the market.
As real estate professionals, we need to reflect on the implications of our actions and work together to promote more ethical and transparent practices. It is by adopting a more responsible approach that we can contribute to a healthier and fairer real estate market for all.
Societal and economic impact: an overview
The effects of artificial bidding extend far beyond individual real estate transactions, affecting society as a whole. This phenomenon contributes to widening inequalities in access to property, affecting first-time buyers and middle-income households in particular. What’s more, it fuels the formation of real estate bubbles, the bursting of which can have disastrous consequences for the global economy, leading to financial crises and economic instability.
Towards ethical thinking and action in real estate
Faced with these challenges, the need for collective awareness and a commitment to more ethical and responsible practices in the real estate sector is more pressing than ever. We, as brokers, have a crucial role to play in this transformation. It is imperative that we demonstrate integrity, by advising our customers wisely and refraining from participating in bidding strategies detrimental to the fairness of the market and the well-being of society.
Innovations and solutions: Towards a fairer, more transparent real estate market
But the future is not without hope. Promising initiatives are already in place to address this issue. The purchase brokerage contract (C.C.A.) introduced by the OACIQ is a significant step forward, providing a legal framework to help regulate overbidding practices. In addition, our www.delacheteur.com platform is at the forefront of innovation in the industry, providing buyers and the brokers who represent them with valuable tools and information to navigate the real estate market more ethically and transparently. This platform is designed to transform the real estate buying experience, focusing on transparency, accessibility and fairness, through the efficient and ethical management of real estate transactions.
A call for commitment and innovation in real estate
As we approach the launch of our platform, scheduled for May 1, 2024, we find ourselves at the dawn of a new era in the real estate sector. This innovative tool represents more than just a platform; it embodies a call to action for all players in the real estate market, encouraging them to adopt more responsible and ethical purchasing methods. Together, let’s explore these new avenues, commit ourselves to a fairer market, and work to protect the interests of all participants fairly, whether buyers or sellers.
In short, artificial bidding in real estate is a multi-faceted issue that requires careful attention and concerted action on the part of industry professionals. By adopting a more ethical approach, exploring innovations such as our www.delacheteur.com platform, and working together towards a more transparent and equitable market, we can help create a healthier real estate environment for all.
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