Melanistic Magazine - Vol. 10

HOME OWNERSHIP 101

With Errol Scott

Making Offers in a Competitive Market

You’re a first time home buyer or one of the many who are making the move to Western Canada. You are prepared to make your first bid, and your realtor advises that you’re in competition: there are multiple offers being made on your dream property. What do you do?

Here are some tips that may put you in the best position for success.

1. Ensure that you have an effective and agile mortgage broker. What that means is, when you are in a position to make an offer on the property that you have identified, they are able to have a shorter financing condition window for you. This makes your offer more attractive to sellers.

2. Select a reputable home inspector ahead of time that can get into the home fairly quickly. Typically for conditions, one can anticipate 7-10 business days in a normal market scenario. If you are able to condense this to a 5 day window, your offer appears more appealing.

3. Consider increasing your deposit. Typically a buyer would aim for a 5% deposit- this equates to $20,000 on a $400,000 home. If you are able to make a higher deposit, which is refundable, it allows you to stand out against the competition.

4. When you are with your agent, carefully analyze the offer based on what the seller may want. For example, if you learn that the seller is hoping for a 15 day possession date and you are able to accommodate this, it may place you in a better position for the win. Give the seller what they want. For $415,000 the likelihood that the home would sell for the asking price is quite low in a multiple offer scenario. Consider pitching your offer above the list price, closer to the comparatives which is a better reflection of the market’s average.

5. Carefully look at what the comparable homes are selling for. A home may be listed at $400,000 however your agent identifies that comparable properties have sold

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www.errolscott.com