Winning the Bidding Wars
When looking at ways to win the real estate bidding wars and achieve your dream spot, I recommend making your offer as clean as possible. First, see your offer as a Seller does? If you are the Seller would you look favourably at the offer you are submitting? In a Seller’s Market such as the one we are currently in the Seller holds the cards and is in control. You will most likely only get only one chance to make an offer that stands out.
Conditions – The two main conditions are financing and home inspection
Know your budget and stick with it. As a buyer, you have been to your mortgage broker and you know the borrowing amount you are approved for. A finance condition in an offer is often a stumbling block for a Seller who is reviewing a few offers. Many of those in competition with yours don’t have a financial condition. Check with your mortgage person and if this condition can be removed – do it.
If adding an inspection condition, make the condition as short as possible. Reach out to a couple of trusted and recommended inspectors to find out how quickly they can do an inspection if you are going to make an offer with an inspection condition. An inspection in 4 days versus 10 days makes a big difference to a Seller wanting to have conditions firmed asap.
An offer with too many conditions will quickly be rejected. Remember that the Seller is taking a risk if they accept an offer with conditions. If the conditions fall through the other potential buyers may have already purchased something else, so an offer without conditions is always favoured by the Seller.
Deposit – A deposit is a show of faith and of your seriousness in purchasing the property. It is also a sign that you are in a good financial position and can afford a larger deposit. Again, this gives some comfort to the Seller. So, the highest deposit you can comfortably submit is suggested.
Exclusions Avoid Asking for Personal Items. Don’t ask for more than the inclusions. An offer asking for items that are not included such as furnishings, watercraft etc. weakens your offer. Don’t be tempted to throw in extra items.
Bidding wars are stressful on buyers. Listen to the advice of your trusted agent. Make sure your agent is an experienced, strategic negotiator. The ability of your agent will make a difference in your success in obtaining the spot of your dreams in a Seller’s market. Follow these steps and good luck. The spot of your dreams is waiting 🙂