It never fails when you really want a Windsor property, make an offer and next thing you know, other buyers are bidding as well.
What’s really frustrating is when a home has been sitting on the market forever! You tour the property, thinking something must be wrong with it, but as it turns out, you love it! Because it’s been for sale for several months, you assume that the sellers will be excited to receive your offer. But guess what? Your agent calls to tell you that the house has been sold. Wait? How did that happen?
No real estate agent can explain why a property that appears dead, suddenly gets all kinds of offers, particularly when their client decides to make a bid. Unfortunately, it just happens much to the frustration of us all.
How can you make sure that your offer is accepted when multiple offers are expected? How can your offer stand out from the rest?
1. Offer large deposit:
By increasing your deposit you are showing the sellers that you are serious about buying and closing on the property. This speaks volumes to the homeowner. All you are doing is giving them the money a bit sooner. Of course, make sure all deposits are contingent on inspections, etc.
2. Get Pre-approved:
Show the sellers that you have been pre-approved for their home by showing them a letter from your mortgage company. This is a great piece of paper to have and often a seller will accept your offer even if their bid was a little lower because unless they have this information, sellers don’t know if a person can afford their home.
3. Give Sellers Time:
What this means, is give them a few extra days after closing to move and don’t charge them for it. Sometimes, sellers need some extra time, especially if you have a quick escrow.
4. Write an offer immediately:
If you like a home, don’t wait too long to make an offer, especially in a hot seller’s market. Homes can often be sold in less than a day, so if you find the home you want, in a neighbourhood you love, then you may want to make an offer immediately.
5. Write your best offer:
And again, if the market is good, don’t lowball. Offer your highest price, make it the best you can be after reviewing comps. And keep in mind, sellers often will lower the price of their home, so a bidding war will take place and make the price go higher. That doesn’t mean you are losing money, since the price was deliberately lowered. It just means you are paying closer to what the property is worth.
If you are buying a home and it’s a buyer’s market, you don’t see as many bidding wars, but they do happen, especially with homes that are highly desirable, priced very well and in excellent, highly sought after neighbourhoods. Here are some things that are good to know:
1. Don’t be greedy:
If you really want the home, but don’t care so much for the window coverings or furniture, don’t ask for them just to get a better deal. Don’t expect or ask the seller to pay for closing costs or any other extras. Your offer may not be considered, especially if they have other offers on the table.
2. Write a letter:
It never hurts to write a letter to the seller telling them how much you love their home. Most sellers have an emotional attachment to their property and they want to make sure the next owners love it just as much. Be sincere and this very well could work in your favor.
3. What’s important to the seller?
The length of an escrow is often very important to a seller. Maybe they need to sell quickly as they are paying for two mortgages or maybe the want a longer escrow until school gets out. Find out what they want and make that part of your offer.
4. Get ready for a counter:
Even in buyer’s market, chances are, sellers may counter all multiple offers. Yes, the risk is the buyers may walk away, but be prepared to counter even if you made a very good offer.
Extra Tip When Making An Offer:
1. Have your real estate agent find out if anyone has been looking at the property or any recent showings. See if any showings are scheduled or anybody might be writing an offer.