Supply and demand are very important, especially for the real estate industry. When you are in a seller’s market there is a lot of demand and low supply. Often due to this, prices on homes that are listed can result in multiple offers on the table with prices elevating well above asking price. How do you compete in this situation? Our Anne Winch Real Estate Team has some advice so you can compete and still keep within your means.
Get out your calculator!
Before you get into a bidding war, find out your limits. You may think your mortgage will only be only $100 more a month but also factor in your living, entertainment, and miscellaneous expenses into your calculation. Also, look to the future if interest rates go up. Will you still be able to afford the home? Find that amount that you will be comfortable living and paying.
Invest in a reputable real estate team
Next to getting your finances in order, finding the right real estate team that will be working for you is paramount. Their job is to close the deal and be the go-between negotiator for any offers you may have on a property. Here is what our Anne Winch Real Estate Team can help you with:
- Give you the true value of the home you wish to put an offer on – not just the listed price
- Respect your budget and find homes within your price range
- Negotiate on your behalf so you will be competitive in a bidding war
- Talk to our Team to find out what price or needs the seller has
- We will also know if any other offers fall through so you can quickly make another offer
Inspections and financing
Sellers want to know you have been pre-approved or have cash in hand and often have the least amount of inspections on your offer. This is not the time to put in a clause that is contingent on the sale of your home. Some buyers may even waive inspections to get ahead of the competition. This is not always advisable but you should check with your real estate company to see if this may help you or not. If you do have inspections, make sure they are done quickly. Be ready to offer asking price or a bit above.
Closing date
Give them the closing date they want. This can be a key for many sellers as they may need a specific date to move to their next abode.
Get that cheque ready!
You want to have your cheque ready when you make an offer to show that you are serious. Check with your realtor for the amount of deposit that should go with your offer.
We hope this helps you understand how important putting in a competitive offer can be. Give our Anne Winch Real Estate Team a call and we can help you through the purchasing process. We would love to help you find your next home!