While the bidding war scenario is a dream for a home seller, it can be a cause of anxiety for a buyer. Keep these 10 tips in mind as you head in to the competitive fall market.
Working with an agent whom you trust, who is dedicated to your home purchase, and can confidently navigate a bidding war will give you the best chance of a win when it comes to multiple offers.
If it’s a possibility, an all cash or mostly cash offer is extremely enticing to a seller and can give you the competitive edge against other bidders who may need to wait for bank financing to come through.
If an all cash offer is not an option, ensuring that your mortgage is pre-approved for that specific property will show the seller that you are motivated and have already secured financing.
It is advisable in all scenarios to have as large of a downpayment as possible, ideally 20% or more. This is especially beneficial in a bidding war situation, proving that you will be a good financial candidate for the purchase.
Avoid causing possible delays to the sellers by preparing any paperwork that must be completed in order for an offer to be accepted ahead of time.
A multiple offer scenario is not the time to submit a low-ball offer in the hope to get a deal. Come to the table with your best and final offer. At least you will know you offered your absolute best if the deal doesn’t go your way.
We do not advise waving all conditions, however it is important to keep them clear and concise. Leave no more than the necessities in the contract (such as a home inspection) and tighten up deadlines on conditions so that they don’t drag on.
Be prepared to perform a home inspection on the property within 24-48 hours. It will be more attractive to the seller to confirm the deal within the first few days after conditional acceptance.
Be sure that your agent relays your story to the home sellers. Both home buying and home selling can be emotional transactions, and it may help for certain sellers to know that their home is going to a growing family who will enjoy the neighbourhood and will create new and wonderful memories together in the home.
It’s best to try to work around the seller’s closing timeline as much as possible. If you can adjust the closing on your previous home in order to give the seller the closing date they want, this could be a bargaining chip that’s as good as cash.