Tips for Buying in a Seller’s Market
Another offer rejected? There’s nothing more disappointing than having your heart set on a new home and then being outbid by another buyer.
Here are some of our tips for competing in our “Seller’s Market”.
- Have your finances in order BEFORE you make an offer so you know exactly what you can afford and are not scrambling at the last minute when offers are due.
- Know what prices homes in your area are selling for-take a look at recent comparable solds so you’re well versed in the values in the neighbourhood and know when you might be looking in the wrong market.
- Consider making an “unconditional offer.” This does come with some risks and takes confidence in you and your agent’s ability to evaluate the property you’re interested in that may not have a home inspection, or other documents available for you. However, with a seller’s direction, you may have time to do your due diligence prior to making your offer which can help eliminate much of the risk.
- Don’t shop at the top of your budget. In order to compete effectively, you’ll need to shop below your maximum budget to leave room for having to offer above the asking price.
- Re-evaluate your options. If you’re consistently losing out on properties, you may want to look at other options like lowering your budget, looking at smaller homes or considering a different area. You may be competing in a market segment that is beyond your budget.
- Consider making a “bully offer”. You may want to attempt a bully offer to get ahead of the crowd of other buyers who may be interested in the same property. It may not always work, but it may give you an advantage and ensure you are successful if the seller is willing to consider it.
- Don’t give up. It’s incredibly frustrating for everybody involved when you are constantly outbid. The current market conditions mean that home buying may take longer and you will need to make more than one attempt at offers before you are successful, so keeping your expectations in check will help. Understanding these facts and keeping a positive mindset will go a long way in minimizing your feelings of frustration and wanting to throw in the towel!
Above all else, find an agent that knows how to navigate the landscape of multiple offers and has proven strategies to help you be successful. Give us a call and let our experienced team help you make your dream of home ownership a reality.
