In the current buyer market there are many active buyers seeking for their next home right now, but availability is scarce and multiple offers are typical. Making an offer on a home you’re competing for might be stressful, but there’s more to winning a bidding war than having large cash. Here are some ideas to help assist you manage a competitive buyer’s market.
1. Your Local Realtor London Ontario
A London realtor who is experienced at negotiating is by far the most effective weapon you have for winning a bidding war. RE/MAX, we make certain that as sales representatives we continue to excel in training and education beyond the requirements set out by OREA. A bit part of development is the art of bargaining – to bargain you have to understand your local market. When hiring an agent, inquire about how they maintain this skill set – an agent’s first goal should be to provide a every conceivable benefit to their customers, especially when an offer is in competition.
2. Stand out
The price you’re willing to pay is important, but so are you. Because most homeowners have an emotional tie to their property, finding a correct suitor might be just as essential as obtaining top money. Consider include a personal touch, such as a family photo or a quick, handwritten letter about why you love the house, when making an offer. Sometimes it is not just about the emotional attachment to the home – sometimes people wish to give back.
3. Increase the Deposit
The size of the deposit matters. You do not need to put down a six-figure deposit, but the larger the deposit, the more appealing your offer will seem. If you do not have the additional cash on hand, you can contribute an additional sum once all requirements have been met. Generally speaking – the deposit you put forward goes towards the final closing price of the home. So from the buyer perspective the end result does not change – but psychologically it is a major advantage to have.
4. Be Flexible
A winning bid frequently relies on flexibility. When it comes to things like the closing date, be as flexible as possible, and if feasible, provide a range of time you can accommodate rather than a set day. Traditional closing times are two to three months, however some sellers may feel that a shorter closing time is more convenient for them. In the current market sellers are looking for a quick possession so be prepared to make decisions fast. Closing dates are things that do not cost the buyer – so flexible provides you with an additional free win.
5. Conditions and Inclusions – Keep It Clean
To win a bidding battle avoid asking the seller for conditions such as financing and inspection, as well as seeking inclusions in the selling price. You may boost your bid even more by providing proof of mortgage preapproval or other paperwork proving your financial ability to complete the purchase. Remember that by scratching the above criteria, you are committing to closing on the home, so be sure. Make sure finance will not be an issue, and undertake an inspection before submitting your offer to avoid surprises later on. Essentially what your are committing to is giving the seller a clean offer.
6. Run your Numbers
Your London Realtor will assist you in determining the true market value of the property for consideration, which may be substantially higher in a hot market. Once you’ve determined its worth, figure out how much you can afford and how much you’re willing to spend for this particular home. Carefully looking at positive and negative attributes of the home and come forward with your best foot.
7. Do not be afraid to WALK AWAY
Sometimes walking away is the only way to win. If a bidding war causes the home’s price to exceed your budget, it’s not the house for you. But don’t worry, your realtor, Yasir Khan at RE/MAX will assist you in locating the right home. The best way to approach the walk away method is simply consult your realtor ahead of time – consider your budget, consider the value of the home and walk in with your absolute best number.