You’ve Lost the Bidding War On Your Dream Home
Kanebridge News
Share Button

You’ve Lost the Bidding War On Your Dream Home

Enter the five stages of grief.

By Kris Frieswick
Tue, May 18, 2021 11:08amGrey Clock 3 min

If you are trying to buy a house right now, you’re in the middle of a real-life Hunger Games. You finally find that perfect little house that you can’t live without, and there will be 13 other people who feel the same way.

That means you’ll be sucked into the worst possible outcome in any house-hunting scenario—a bidding war. Those other house hunters, like you, will do whatever is required and use all the weapons at their disposal to land the place. And when you lose, which you most likely will, you will watch your dreams—of backyard cookouts, of being able to get out of bed on both sides, of room to turn around in the bathroom without bumping your butt on the sink, of a kitchen in which your pots and pans don’t all have to live in the oven—evaporate. You will be gutted. You will grieve mightily, just like when [your childhood pet’s name here] got hit by a car.

The good news is that you will get over it, eventually. But first, you’ll have to go through the five stages of grief that accompany the loss of any bidding war. The stages start right after you stop swearing. Here’s what each stage looks like, plus some suggested coping mechanisms to get through them:

Stage One: Denial

You didn’t really want that stupid house. It’s a stupid house. Forget that house.

You should: Keep saying this to yourself until this stage wears off. It’s the best you’re going to feel for awhile.

Stage Two: Anger

That house wasn’t stupid! It was awesome and you lost it. Why do you keep on LOSING?? Why can’t you ever WIN anything? It’s just like the high school state basketball championship that you LOST. And all those times you lost the lottery. Oh great! Now there’s a hole in the wall above the TV from you throwing your laptop in loser rage. Loo. Zer.

You should: Stop with the throwing. You’re going to be in your house awhile. But don’t repair the hole. That’s just conceding that you are never moving out. Go buy a painting to cover it up. It will take your mind off all the losing.

Stage Three: Bargaining

You are brilliant! Why didn’t you think of this before? You tell your broker to offer 5% above the winning offer, no matter what it was. Your broker tells you it was all cash, 30% over asking, included a new Range Rover, the buyers are closing on the property in eight hours, and their moving truck is already idling outside the house. “Face it,” your broker says. “You lost.” “NO!” you think really loudly to yourself. “You lost, broker person. YOU lost.”

You should: Drink and cry. But whatever you do, don’t watch HGTV. All those clueless, insanely picky, delusional, yet somehow winning house hunters will make you throw things at the TV, which you can’t replace because you need your savings for a downpayment. Theoretically.

Stage Four: Depression

You will never find a house. Just quit looking. It’s pointless. Why even bother? You’re going to be stuck in this dumb, ugly house for the rest of your life, looking at that terrible painting you just bought to put over the hole. You hate that painting. What is that even a painting of? An angry bee stinging a… a walrus of some sort? Is it even hung the right way up? It looks like a five-year-old drew it. It’s a stupid painting.

You should: Stop drinking and go to bed. Leave the picture alone. It’s hung properly. You maybe should have paid for a nicer one, or bought some fine art photography of the Eiffel Tower or a foggy Brooklyn Bridge. Deal with that tomorrow. If you have dreams about blowing up that house that someone else won, that’s a normal part of the grieving process.

Stage Five: Acceptance

Wait. That’s not a bee and walrus. It’s a flower in a garden. Now that the morning sunlight is hitting it, it’s not that bad of a painting. The colours go with the comfy chair. Like you planned it that way. You sort of like it now. You’re gonna sit in that comfy chair and admire your new painting, have a cup of coffee and take a quick scroll through the listings sites to see if anything came on the market overnight. You’ll use your phone, since your laptop is in pieces.

You should: Love the one you’re with. Maybe go ahead and fill in that hole. Keep the faith. Your house is out there. It might take you a year to find it. You might need to look at 100 houses or more. Maybe you’ll have to wait until this insane market crush has calmed down a bit. But you’ll find it. In the meantime, remember to be thankful that you’ve got a roof over your head, be that as it may.

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: May 13, 2021



MOST POPULAR

Consumers are going to gravitate toward applications powered by the buzzy new technology, analyst Michael Wolf predicts

Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Related Stories
Property
The locations where apartment rents are picking up the pace
By Bronwyn Allen 05/03/2024
Property
Hong Kong Takes Drastic Action to Avert Property Slump
By ELAINE YU 01/03/2024
Property
The Australian capitals experiencing world-class price growth in luxury real estate
By Bronwyn Allen 29/02/2024
The locations where apartment rents are picking up the pace

Stronger demand in some areas is pushing unit rents up faster than houses

By Bronwyn Allen
Tue, Mar 5, 2024 3 min

Renters are returning to the apartment market, leading to higher growth in weekly rents for units than houses over the past year, according to REA data. As workers return to their corporate offices, tenants are coming back to the inner city and choosing apartment living for its affordability.

This is a reversal of the pandemic trend which saw many renters leave their inner city units to rent affordable houses on the outskirts. Working from home meant they did not have to commute to the CBD, so they moved into large houses in outer areas where they could enjoy more space and privacy.

REA Group economic analyst Megan Lieu said the return to apartment living among tenants began in late 2021, when most lockdown restrictions were lifted, and accelerated in 2022 after Australia’s international border reopened.

Following the reopening of offices and in-person work, living within close proximity to CBDs has regained importance,” Ms Lieu said.Units not only tend to be located closer to public transport and in inner city areas, but are also cheaper to rent compared to houses in similar areas. For these reasons, it is unsurprising that units, particularly those in inner city areas, are growing in popularity among renters.

But the return to work in the CBD is not the only factor driving demand for apartment rentals. Rapidly rising weekly rents for all types of property, coupled with a cost-of-living crisis created by high inflation, has forced tenants to look for cheaper accommodation. This typically means compromising on space, with many families embracing apartment living again. At the same time, a huge wave of migration led by international students has turbocharged demand for unit rentals in inner city areas, in particular, because this is where many universities are located.

But it’s not simply a demand-side equation. Lockdowns put a pause on building activity, which reduced the supply of new rental homes to the market. People had to wait longer for their new houses to be built, which meant many of them were forced to remain in rental homes longer than expected. On top of that, a chronic shortage of social housing continued to push more people into the private rental market. After the world reopened, disrupted supply chains meant the cost of building increased, the supply of materials was strained, and a shortage of labour delayed projects.

All of this has driven up rents for all types of property, and the strength of demand has allowed landlords to raise rents more than usual to help them recover the increased costs of servicing their mortgages following 13 interest rate rises since May 2022. Many applicants for rentals are also offering more rent than advertised just to secure a home, which is pushing rental values even higher.

Tenants’ reversion to preferring apartments over houses is a nationwide trend that has led to stronger rental growth for units than houses, especially in the capital cities, says Ms Lieu. “Year-on-year, national weekly house rents have increased by 10.5 percent, an increase of $55 per week,” she said.However, unit rents have increased by 17 percent, which equates to an $80 weekly increase.

The variance is greatest in the capital cities where unit rents have risen twice as fast as house rents. Sydney is the most expensive city to rent in today, according to REA data. The house rent median is $720 per week, up 10.8 percent over the past year. The apartment rental median is $650 per week, up 18.2 percent. In Brisbane, the median house rent is $600 per week, up 9.1 percent over the past year, while the median rent for units is $535 per week, up 18.9 percent. In Melbourne, the median house rent is $540 per week, up 13.7 percent, while the apartment median is $500 per week, up 16.3 percent.

In regional markets, Queensland is the most expensive place to rent either a house or an apartment. The house median rent in regional Queensland is $600 per week, up 9.1 percent year-onyear, while the apartment median rent is $525, up 16.7 percent.

MOST POPULAR

Consumers are going to gravitate toward applications powered by the buzzy new technology, analyst Michael Wolf predicts

Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Related Stories
Lifestyle
Where property prices are rebounding around the country
By KANEBRIDGE NEWS 02/01/2024
Money
China’s Economy Shows Signs of Stabilizing—and a Slower Recovery
By Reshma Kapadia 30/10/2023
Money
Population projections: We’re getting older and having fewer babies
By Bronwyn Allen 24/11/2023
0
    Your Cart
    Your cart is emptyReturn to Shop