It finally happened. You found the house you’ve fallen in love with and want to place an offer. You go to your real estate agent, sign an offer and write a cheque for your money deposit. You pace around in anticipation until your real estate agent calls you back. While you sent in a bid, three other people did as well, and unfortunately your bid lost. How did this happen? How can you prevent it from happening again?
Unfortunately, in a seller’s market it is common for a home to receive multiple offers. Even if a home is dated and neglected, it is possible to receive multiple offers within minutes of one another. We’re here to tell you to not lose hope. Even though it may seem like there is no point to writing an offer on what could easily turn into a bidding war, it is important to remember that there is always a winning offer. So why can’t that winning offer be yours? Here are some sure-fire tips to make sure your bid become the winning bid.
1. Move Quickly
While most people start their own house hunt online by themselves on websites like www.realtor.ca those sites in a hot neighbourhood aren’t likely to help you the way a local and well-connected real estate agent could. This is because a local real estate agent will be able to tell you the second a property comes up on the market, sometimes even before which means that you could be first in line to your dream property.
2. Make A Bully Offer
If you are absolutely convinced that the house you are viewing is the house for you and you are willing to strongly demonstrate your conviction, consider making a “bully offer”. A “bully offer” is submitted before offer night. The idea behind this is that if you offer a price above asking before bidding has even begun, the seller feels obligated to consider and even accept your offer as you are a guarantee. If they decline your offer and wait to see what happens when offers are open, there is no surety on their side that they will get the same offer you submitted to them.
3. Think About Contingencies
While it is common practice to ask for contingencies in the negotiation phase of homebuying, in a competitive market the fewer contingencies you have the less hassle you will provide to the seller and the more likely they will sell to you. While generally it isn’t a good idea to forego a home inspection as this can protect and educate you from serious issues with your potential new home, a trusted real estate agent can help navigate when it might be appropriate to do so.
4. Be Flexible On Your Closing Date
The fewer barriers you put up to the seller the more likely they will be to accept your offer. The seller of your dream house might need to move in a matter of weeks. Even if it might not fit your schedule, the way to win the house may be to make your move faster than you anticipated. Alternatively, the seller may need a few months to move out because they’re waiting for the school year to end or their next home to be finished. Either way, the more accommodating you are, the greater your chances of winning a bidding war.
We get it, buying a house is stressful. The last thing you want is a bidding war on top of an already emotionally wrenched situation. If you have any questions about bidding wars or want to learn more, please book a free consultation call with us by clicking HERE!