How to Win in a bidding war?

houses

Durham Region in Ontario is currently experiencing many homes that are being sold in multiple offers, which can be very frustrating to a buyer who has lost homes they loved on multiple occasions.  There is ONLY ONE WINNING offer and sometimes multiple loosing offers.

If you’re in the market to purchase a new property in our area,  here are some strategies that can help position yourself and your offer above others.

1. Get pre-approved for a mortgage first and make sure the lender has done a credit report to ensure that you won’t have any unforseen issues.  If possible, get this in writing. Have your down payment and income verification verified your bank or lending institution.

2. Understand the sellers’ needs. Buyers often make the mistake of wanting to “win” in negotiations. However, in a hot sellers’ market it is the seller that has the upper hand, not the buyer. Aim for a “win-win” situation. Find out what is important to the Seller.   A great example of this is the closing date. Try to give the Seller their preferred date. Ask which appliances are included in the offering price and only include those.

3. Have as few conditions as possible. If you’re putting an offer on a home that has generated a lot of interest, you may need to consider not including some standard conditions (financing, home inspections). Although we do not recommended  this approach, it is a reality in today’s market.  All things being equal, a firm offer in a bidding war will typically win over a conditional offer.

4. Include a large deposit. Your ability to put a large deposit with the offer does provide the seller with confidence in your buying power. This sometimes will make the difference if there are several offers that were close in purchase price. It can give you an huge advantage over the other buyers in a bidding war.

5. Make a strong offer. You will only have one opportunity to buy that home,  so bring in your best offer. If it doesn’t go, move on. There is always another home  Ask your sales representative what % of the list price houses are selling.  Remember this is an average.

Sometimes an offer comes in that is in left field and it doesn’t make sense. We are seeing a lot of Toronto buyers coming into our market area. We are a Bargain, compared to Toronto Prices.

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