Let’s face it, in Simcoe County the real estate market is hot and it’s leading to tons of bidding wars. This can be frustrating when you have your heart set on a particular property and you’re unsure if the seller is going to choose your bid. Now more than ever it’s important to do everything you can to craft a compelling offer that can help you win in a bidding war.
What is a bidding war?
A bidding war is a situation where a property has multiple offers, each competing to be selected by the seller. Buyers attempt to make their bid as attractive as possible using a variety of tactics.
Here are six ways to make your offer look more enticing in a bidding war
- Have as few conditions as possible
Having fewer conditions in your offer will up the ante. Waiving the home inspection, having a flexible closing date, and guaranteeing finance are some examples of ways to make your offer more appealing. It’s important to note these conditions are usually in place to protect the buyer — proceed with caution. Foregoing a home inspection could also lead to unexpected big-ticket expenses.
- Get pre-approved for a mortgage
It’s ideal for the seller to know they’re working with a buyer who has the capacity to afford their property, and getting a pre-approval is that assurance. The pre-approval can also speed up the process if your offer is accepted – another bonus in the seller’s eyes.
- Have your deposit cheque ready
When purchasing a property, a deposit is paid by the buyer as a sign of good faith that you will be completing a transaction with the seller by a specified date. Have this cheque ready to go with your offer to show the sellers that you are serious about the property and that they shouldn’t expect any delays in the process.
- Use a realtor who can get it done
A realtor has been a part of negotiating the sale of many homes and knows what to do in the instances that could arise during a bidding war. You’re more likely to make poor decisions and let your emotions drive the sale when handling it yourself. A realtor has a great pulse on the market and is the perfect team member to have in your corner.
- Competitive Offer
This one seems obvious, but we’d be remiss not to mention it – put in a competitive offer. The reality is, in Simcoe County most homes are selling for over asking therefor you need to be prepared to offer something competitive. Work with your realtor to determine the current market value of the home and enlist their knowledge when preparing an offer. This will help to ensure you don’t bid too low and miss out, or too high and overspend.
- Write a Letter
Ask your realtor to include a personal letter written by you and your family. Sometimes this can be the difference between the top two offers if they are similar. Tell the sellers a little about you, your family, what drew you to their home, etc. People are emotional and having a story to go with your offer can make all the difference.
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