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A Helping Hand in Multiple Offers

Multiple offers in a competitive housing market; for as much as it happens, buying strategy isn’t discussed enough.  If you’re putting an offer in on a house in Guelph, especially in the ultra-competitive spring market, there is a good chance you will be in a multiple offer situation. It’s just reality and a reality that is often good for sellers, but not so much for buyers. But don’t fret as there are things you can do to help win.

Here are 10 suggestions to help you succeed:

  1. Work with an experienced local Real Estate Agent. Having someone who knows the market, neighbourhoods, amenities, other agents and common area practices is a good person to have on your team. Your agent will be your advocate and you want someone who knows what they are doing.

  1. Ensure your agent keeps you informed when the market is hot and listen to their advice on timing. Taking quick action with a strong offer could just be your winning ticket.

  1. Don’t wait. As soon as the house comes on the market – go look at it! Waiting could cause you to lose out because there will probably already be offers on the table, or even sold by the time you see it. This is where having a local agent is important because they can react quickly on your behalf. No sense having an agent that has to travel, it could severely lessen your chances at success.

  1. Ensure your finances are sorted out with a lender before you look. Don’t just do one of those online calculations that tell you what you can afford. Get pre-approved by a lender who delves deeper into your finances and tells you exactly what you can afford.  A strong approval letter from your lender can be a powerful tool when submitting an offer.

  1. If you like the house you need to make a quick decision. If proceeding with an offer, have your agent speak with the selling agent before writing up the offer. Gaining information about the sellers wants and needs is important and can help you put forth a strong offer.

  1. Know you will have to offer over list price. You often only have one shot and your goal is to beat out other offers. If you see a low list price there is a good chance it’s listed low to drum up multiple offers which will shoot the price up. Your agent will be able to discuss fair market value and you can decide what your price limit will be.

  1. Have as few conditions as possible. If you need to do a home inspection, then try to arrange for a pre-offer inspection. The seller’s goal is for the deal to close and the least amount of contingencies there is, the greater chance this will happen.

  1. Cash is king and in most cases, it will beat out similar offers with financing conditions. I realize most people don’t have the cash to outright purchase a home, and not having a financing condition in an offer is not advisable for everyone. But, if you do your due diligence and speak with your lender you may feel comfortable offering without this condition.

  1. Increase your deposit. Most houses require a deposit of at least $5000-10,000. If you have the money available – offer a larger deposit. Deposits are due within 24hrs of an offer being accepted, and your increased deposit will let sellers know you are serious and committed to closing on their home.

  1. If possible, have your agent present the offer in person. This way they can tell the selling agent about you, your situation and why you really want the house. Writing a letter to the sellers explaining why you want the house can also be of benefit.

It can be very frustrating and emotionally taxing when dealing with multiple offers. It is important to talk with your local Realtor and understand the buying process before you start looking. Always remember that no matter how much you love the house, it isn’t yours until the offer is accepted. Buying a house is a big deal and for most, it’s the largest purchase they will ever make. Being prepared is your best bet for being successful and winning in a competitive market. And of course, if you have any questions about the buying process I would be happy to help.