When the market is hot, homes are scarce and hungry buyers abound. Getting caught up in a spiral of competing offers quickly becomes a stress-filled, high-stakes game, leaving bidders exhausted, hopeless or saddled with a bloated mortgage. What’s a buyer to do? Our post this week looks at a few tips that may help pre-empt a bidding frenzy and strike a reasonable deal quicker.
Get pre-approved
When supply is low, buyers need to be nimble. Get concrete numbers from your lender on how much home you can afford. When making the offer, include written proof that you’re ready to roll financially.
Expedite the home inspection
If you’re serious about a listing, don’t wait to make the home inspection a condition of sale. Get early permission to bring in a professional inspector. If it passes with no major issues, you’ll have a green light to make a cleaner offer.
Be flexible on the closing
Let the seller dictate the closing date. If it’s longer than anticipated, packing up into storage and moving twice may be a better option than going through another round of house hunting. If the date is sooner, the heated market means you’re likely to sell off your own home just as fast.
Anticipate a counter offer
If the seller comes back asking for more money, extra clauses or is playing hardball, you need to react quickly. Run through possible scenarios with your agent and come ready with a response.
Meet and exceed expectations
When offers abound, sellers call the shots. To beat the crowd, you need to sweeten the deal. Possible tactics can include:
- Paying a larger deposit than asked
- Being flexible on the irrevocable date and conditional periods
- Offering bonuses such as paying for junk removal, clean up, moving expenses or legal fees
Be the first in line
Work with your agent to present the first offer. A seller who wants to vacate quickly with minimal drama may accept a clean, reasonable offer straight away.
Are you buying or selling during the Spring market? What’s your strategy to get the deal done? Need help? An experienced agent and skilled real estate lawyer in Ontario are key members of your team.
