The current Hamilton and Burlington area real estate market is experiencing a large number of homes that are selling with competing offers. You may think these are just the really fixed up places that look fantastic, but that’s not the case. Competition is taking place at all price levels, and with homes in all sorts of condition. The deciding factors seem to be; price in relation to the market, availability of comparable homes, amenities offered by the house, and more.
If you are in the process of buying a home, and would rather not find yourself in competition, here are a few things to consider.
- Work with a REALTOR® who has access to new properties for sale quicker than you will find them on realtor.ca. If you have a relationship, your REALTOR® can send you listings immediately, enabling you to be one of the first to see the home. Keep in mind you may need to act quickly.
- Be prepared. If you see a home you want to buy, and they are not holding off on offers, act right away. Don’t wait for others to decide to make an offer. Have your deposit funds ready, your financing ready to go, and your home inspector ready and waiting. This is not the kind of market where you want to ‘sleep on it’.
- If you really like the house, don’t try the low ball offer first to ‘see if they will come down’. You may waste your opportunity to be the only offer the home seller is looking at, and if you do end up in competition, you have not made a particularly good first impression.
- If you really like a house, and they have set a future date for offers, you can present what is called a bully offer. In this case, your REALTOR® will advise the listing sales person that he has an offer that is only irrevocable for a short period of time. This causes the home owner to decide if they want to look at your offer, or wait and take the chance that they receive a better offer later. If you want your bully offer to be considered, it needs to be a very good offer. Both price and terms need to be exceptional for the seller to effectively give up their chance at competing offers.
- Another choice is to postpone your home buying until a time period when there are generally fewer buyers in the market, such as during some parts of the summer and at the end of the year, around the holidays. These times vary depending on where you are, so if you are considering this approach, speak to your REALTOR®. Keep in mind that fewer sellers will have their homes on the market during these time periods, so your selection may not be as good.
If you want to discuss how to get the home you want, at the price you want to pay, call a Coldwell Banker Pinnacle Real Estate Sales Representative. Their experience and training will help you be successful in your home hunting efforts.