Buying a home is a very exciting process. But imagine that after many viewings and open houses, you finally found what you’ve been looking for – your dream home! Then, with a huge smile on your face, you call your Two Awesome Realtors to let them know that you are finally ready to make an offer. They inform you that there will be multiple offers.
This is something no buyer ever wants to hear. As your heart starts to sink and your smile is rapidly disappearing, your Two Awesome Realtors reply, “don’t worry we are experts in multiple offers. If you follow our tips for Winning in Multiple Offers, there is a high chance you will get to own the home of your dream.”
Before making any offer, preparation is key, especially when it comes to multiple offers. This demonstrates to the seller that you’re a serious and qualified buyer. Giving your offer more credibility.
Market & Price
It is important to know the market and how much comparable properties in the area have sold for. Also how long they typically take to sell. This allows you to be informed and make a competitive and realistic offer. A multiple offer situation is not the time to be trying a low-ball offer. Depending on the number of offers you may be required to ask over the asking price in order to obtain the property. But your Two Awesome Realtors will advise you on a competitive price based on the market conditions.
Speed
In a competitive market, time is of the essence. You will need to act promptly as delaying your offer may give the seller enough time to accept another party’s offer.
Deposit
Typically, a deposit of 5% of the purchase price is payable upon subject removal. Having these funds available when you start looking for a home is essential. To make your offer more attractive you could consider making the deposit amount higher or payable upon offer acceptance.
Mortgage Professional
It is important to be in constant communication with your mortgage professional. When you find the right property for you, we recommend providing your mortgage broker with a copy of the listing and having another detailed chat with him or her about your financing subject and offer price.
Dates
Often the sellers have specific closing and moving dates that they need. Being flexible and accommodating with dates, may make your offer more appealing than others.
Letter
Including a heartfelt letter along with your family photo which expresses your love for the property and your intentions for its use is always recommended in a multiple offer situation. These personal touches can create an emotional connection, setting your offer apart from the rest.
Subjects
In a multiple offer situation you need your offer to be as straight forward as possible with very limited subjects. It is important to do your due diligence prior to entering a multiple offer situation. This means reviewing documents like Title Search, Property Disclosure Statement, Survey Certificate, Drawings, Copies of Permits, Strata Documents, etc. You may also consider having a pre-inspection done on the property in advance to insure you fully comfortable with the condition of the home. Although it is not recommended, often buyers waive their subject to financing clause; however, this is risky and needs to be discussed fully with a professional mortgage broker.
Professionals
In a competitive market, it’s very important to have a professional and skilled team working for you. Not only do you need Your Two Awesome Realtors, but you also need an experienced mortgage broker, home inspector and lawyer. Together we will ensure your offer is accepted and the process is as smooth as possible!
If you are thinking of buying a home or have any additional questions, feel free to contact us or email your Two Awesome Realtors at info@aheerbitkova.ca
