#HOMEBUYERS What to know about bidding wars? Multiple Offers!?
Wednesday Jan 29th, 2020Share
This post is rather fitting, considering the last few weeks we have been seeing A LOT of multiple offer situations! It's something that we haven’t seen too much of lately, but with the SUPPLY being so low, everyone is acting fast on what is available!
When the demand is high and inventory is low, buyers have to go above and beyond to make sure their offer stands out.
Quickly presenting a strong offer with a strict time limit for acceptance – often just a few hours – could give you an advantage over other buyers who haven’t prepared yet.
Presenting an offer without conditions is the norm in GTA bidding wars. Discussing appraisal risk with your mortgage broker (*Important) and doing a home inspection before you offer will reduce your risk.
If your offer is accepted, the sale is final. There is no going back. Make sure you know the risks involved before going in with no conditions.
BE WILLING TO WALK AWAY
Buying a house is an emotional process, especially when you’re in competition with other buyers. Make a plan and stick to your budget to avoid making decisions you may regret later, even if it means walking away from a deal.
Besides the price, other things you can be flexible on that help:
- Closing date to meet sellers wants
- Get personal! many sellers have a personal attachment to their home and are happy to know their home is going to a nice family that will take care of it. A personal note sometimes can go a long way ! While money is pretty much always going to be the final deciding factor in a real estate decision, it never hurts to humanize your offer with a personal appeal. If you love a property, let the seller know in a letter. Be open and honest regarding why you feel so strongly about their home and why you think you’re the right buyer for it, and don’t be afraid to get a little emotional. This tactic isn’t going to work on all sellers (and almost certainly not on investors), but on a seller who themselves feels a strong connection to the property, it may make a positive impact.
Winning a bidding war on a house takes a bit of strategy and a bit of luck. As your Realtor I will be able to help guide you through each step of the process so that you know you’re making the right decisions at the right times. Be confident, be calm, and trust that if it’s meant to happen, it will.