In a hot market like today, sellers often have the upper hand. Multiple offers on a housee for sale are becoming more typical. Being a buyer in a sellers’ market can get a bit tricky, especially when you find a home you simply must have. Here are some things to consider to get an upper-hand when bidding on a house with multiple offers:
Get Pre-Approved
Being pre-qualified for a mortgage is one of the first steps in the process of buying a home you love, but being pre-approved will take you one step closer to securing the sale. Pre-approval means your lender is committed, in writing, to financing you. Having a pre-approval letter to present to the sellers really makes you stand out from the rest of the interested buyers in a competitive offer situation. It shows the seller you’re qualified and puts you in a stronger negotiating position. When a seller sees your pre-qualification, this puts them at ease and guarantees them a smoother deal, which is hard to pass up.
Significant Deposit
When a potential buyer submits on offer to purchase a home, they provide a deposit to the seller which demonstrates the buyer’s commitment to purchase. During a bidding war, submitting a large deposit can go a long way. This can give the seller confidence in your ability to achieve the financing you require, show the seller you’re comfortable with taking some risk and signal affordability. If you have the cash at hand, make a deposit above average and show the seller you’re serious about closing.
What’s Your Best Offer?
If you find a home you can’t live without and others feel the same, you’ll want to quickly figure out your best offer. Whether you choose to offer full price or a bit above asking price, make an offer you can live with if it’s rejected. Lowballing can encourage sellers to look for further offers which can create a bidding war or amplify a current multiple offer situation. When considering your best offer, your realtor will determine the actual market value which signifies what other buyers are willing to pay for the home.
It’s also helpful to consider going into an offer without conditions. Sellers often accept unconditional offers quicker and even above offers of higher value. The fewer the terms you include, the less headache for the seller. Before you submit an offer without conditions, it’s important you have a trustworthy realtor to help you understand the implications and risks that accompany this option.
Add a Human Touch
Playing nice can increase your chances of your offer being accepted by a seller in a bidding war. If you find a home you truly need, don’t ask the seller to agree to terms that are inconvenient for them. Avoid asking the seller for personal items to be left in the home. Try to find out what agreements could help seal the deal. Perhaps the seller could really benefit from a quick closing. Consider offering something kind like a few extra days to move out without compensation. Small gestures of kindness can stand out during a stressful time for the seller. You can even write a letter to the seller explaining why you love the home and how you’ll feel living there for years to come. A human touch can give you an edge as a buyer.
Who You Work With Matters
Working with a realtor with good connections can give power to your offer. Who your realtor knows is important as is how they connect to the seller and their representation. A top negotiator will know exactly how to get you what you need while making a seller feel they’re being compensated fairly. Selling or buying a home should always be a win-win situation.
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If you are seeking advice on buying a home in the Ottawa area, or have more questions for us, we are happy to provide you with helpful guidance and support. Email us at info@buyandsellottawa.ca or call us at 613-590-3036.