Seven Tips to Help You Win in a Multiple Offer Situation
If you’ve been paying attention to the Ottawa real estate market, you know that we’re in the midst of a hot seller’s market! With low supply and high demand, competition is fierce for almost every home that comes up for sale.
What does that mean for you as a buyer? It means you’ll most likely have to prepare for a bidding war. But don’t let that scare you away from buying your new home! Here are seven great tips to help increase your chances of winning a multiple offer situation.
1. Put Your Best Offer In
Multiple offer situations are not the time to be conservative. When there’s a lot of competition for the same home, you have to expect it will sell for more than the asking price. In order to impress the seller in this situation, you’ll have to come in with your best offer.
Determine the maximum amount you are able to spend and bid the full amount. If you’re unsure how much over asking you should go, consider how you would feel if you lost the home. Would you regret not spending an extra $1,000 to win or are you confident that it’s the most you would spend on this home?
2. Be Prepared to Act Fast
Homes don’t stay on the market for long when inventory is low. You may only have a few days to view, inspect and make a decision on a house. That means you should be ready to attend a showing on short notice and you must have your financials in order. Meet with your lender ahead of time to obtain a pre-approval for a mortgage and be sure to have your deposit ready.
In order to avoid any delays, you should also meet with your lawyer early in the buying process. They’ll ensure you have all the necessary information together so you’re ready to move forward when the time comes. If you don’t already have a lawyer or mortgage broker, your PREMIER Realtor® can help with a referral.
3. Limit Your Conditions When There Are Multiple Offers
After price, conditions can make or break a deal when it comes to winning a multiple offer. Offers with no conditions have the best chance of winning, so that’s why it’s so important to have your financials in order ahead of time. But keep in mind if you choose to forgo a finance clause and the selling price is much higher than the actual value of the house, it could cause the lender to back out.
Consider bringing an inspector with you to the viewing if you’re really serious about the home. This will allow you to waive an inspection condition while still ensuring the home you’re buying is sound. Buying a home without an inspection can be very risky and should be avoided if possible.
4. Be Flexible in Your Closing Date
The highest offer isn’t always the one that wins the bid. If the closing date doesn’t work for the seller, they may choose to accept a lower offer. If possible, find out what kind of time frame the seller is looking for and work within it. Being flexible on your closing date could mean the difference between getting the house you want and someone else beating you out.
5. Increase Your Deposit
The deposit is the portion of the down payment that you pay up front to show the seller you’re a serious buyer. Sometimes increasing the amount of the deposit can help tip the odds in your favour.
6. Limit Your Demands
In a buyer’s market, you can often get away with requesting items such as drapes or appliances be included in the deal. In a seller’s market, you want to give the homeowner the option to decide what they are taking and what is staying. Remember, it’s a lot easier to buy a new washer than it is to find another house.
7. Write A Letter
If you really love a home and just can’t stand the thought of losing out, try writing a note to the sellers. Sometimes the seller wants to know that the new owner will love and care for the home as much as they did, and you might be able to convince them with a heartfelt letter.
Although the current real estate market may seem daunting, your dream home is out there. Our agents have the knowledge and experience to help you navigate a multiple offer situation.