Buying a home is one of the biggest financial and investment moves you will make in your life! It can also be more difficult than it needs to be, especially if you’re trying to buy in a seller’s market. But don’t worry - we’re here to help:
Here's where a great real estate agent will come in handy. They can help determine whether your local housing market favours buyers or sellers. This will tell you how and what you should offer on a particular home you wish to buy. An agent can also tell you what similar homes are selling for in the market, giving you a better idea of the value of a home.
Don’t wait too long to make an offer
With more buyers than there are homes in a market like this, make an offer and fast, or stand the chance of losing the home of your dreams!
Get pre-approved so you can instantly make an offer
Getting a mortgage pre-approval will signal to a seller that you are a genuine buyer and you can seal the deal on the offer that you made.
Consider not adding too many contingencies in your offer
If you have multiple contingencies on an offer, especially the selling of your current home, may be seen as undesirable to a seller. If another buyer came along with the same offer just with less contingencies, chances are the seller is going to choose the other. However, don’t sacrifice your peace of mind just to secure a property, be comfortable with whatever offer you decide to make.
Start with a strong price
Put your best foot forward, at the same time not exceeding your pre-approved price. Sellers will take an offer closer to the asking price more seriously than a low ball offer.
Include a higher deposit amount
Again, this is going to show the seller how serious a buyer you are. Just make sure whatever conditions you do have on the offer, that they cover you if you back out for any reason.
Be prepared for competing offers
There are things your can do to come out on top of a bidding war:
Including the stronger deposit
Taking an active part in negotiations
Leaving the closing date open - let the seller decide
Be open to buying a new construction
The competition may be too much and the choices too little. Going with a new construction or even a RTM may be the answer you’re looking for. You’ll be waiting longer for move-in day, but you will be able to choose the floor plan, finishings, fixtures etc. to your liking.
It can feel overwhelming making an offer, especially when the market favours sellers, but don’t be discouraged. Maintaining a level head will be crucial through the important home buying and decision making process.