With the strong Seller’s market we are currently experiencing, this seems like a good topic to touch on.
If you are currently in the process of buying a home, you have likely come across a competing offer situation, whether you chose to compete or not. The low inventory of homes currently on the market, and the ideal conditions to buy, have created a lot of frustration for buyers.
If you have found a home you would like to purchase and discover you are competing with others to buy the property, here are some suggestions:
- Include as few conditions in your offer as you can. If you wish a home inspection, consider having one done before the offers are presented. That way you know if you really wish to proceed with the purchase, and it also offers added assurance to the seller that you are sincere in your offer.
- Be sure your finances are in order. Don’t assume you can obtain the mortgage. Go to your bank/mortgage broker and have them do the complete approval for you. That way there are no surprises for you or the seller.
- Keep the time frame for your conditions as short as possible. A couple days ensures the seller that you and your agent have done your homework, and it is just a case of final approvals, not full application.
- If possible, try to match as many of the terms the seller is requesting, whether it be closing date, chattels they have offered to include, deposit amount etc.
- Speaking of deposits, at times, offering a substantial deposit can assure the seller that you are a serious buyer.
- Keep in mind that you most likely have only one chance to be the accepted offer. Make your first offer your best.
- When deciding how much to offer, don’t get carried away. Keep in mind that if you are financing your purchase, the appraisal will be what the bank looks at when they are determining how much mortgage they will advance you. If you are getting an insured mortgage, the lending guidelines may be even more stringent.
- Listen to your agent. They have expertise in helping people buy homes. They will help you make the right decisions, and will endeavour to negotiate your purchase on the best possible terms for you.
- Don’t let frustration drive you to overpay for a home. I have heard of buyers making offers on 8-10 homes before being successful in having their offer accepted.
Keep in mind that winning in competing offers is not always being the one that gets the offer accepted. I believe it is only a win if you buy the right home at the right price. Buy a home you really like, but don’t fall in love with it until you move in. If you keep that in mind, you will not be in the mind frame of ‘buy at any cost’. You can remain in control of your purchase.
If you are thinking of buying, be sure to have a skilled professional to help you. Call a Coldwell Banker Pinnacle Real Estate – with our Ultimate Service Guarantee, we will always put your needs first.