I’ve been asked lately what buyer’s can do to win in a multiple offer situation. Here are 4 tips to win in a seller’s market in Ottawa (and surrounding area!) that will definitely give you a leg up on the competition.
Tip #1. Be Pre-Approved
Before you even begin to set out to buy a home, it’s critical that you have your lender confirm your ability to buy a home. A pre-approval is not simply a conversation with the lender. A lender will want to review your credit history, income and assets. If you haven’t provided your lender with your pay stubs, etc., you haven’t been pre-approved. With the pandemic, some listing agents are requiring proof that you’re pre-approved. Asking your lender for a recent letter is a good idea.
Tip #2. Be fast and decisive
In this market, there is no time to wait because you might miss out. Some sellers are still setting an offer time with no conveyance of offers before that date. Other sellers have an offer date but “will consider pre-emptive offers”. It’s the old “you snooze, you lose”. How can you make a quick decision?
Make sure that your search portal is set up so you don’t miss anything. You’ll see listings the minute they hit the market and will be able to book your showing.
Your agent should prepare you and explain the agreement of purchase and sale to you in advance. Signing legal documents can be stressful. Knowing what you’re signing is the key to being confident in moving quickly.
If you need to put in conditions in your offer, make them short. The goal is to mitigate the seller’s risk while still satisfying your desire to know exactly what you’re buying. Have your inspectors on speed dial and give them a head’s up so that you can book them quickly.
Tip #3. Be priced right
This is not the time for a lowball offer. You want to be competitive. You’ll want to see what sold recently in the area but take those numbers with a grain of salt. A sale that happened even 30 days ago won’t be reflective of what a buyer would be willing to pay today. Just remember…you just can’t compete with buyer motivation. You can read more about that here.
Tip #4. Tell the seller who you are
For some sellers, it’s all about the money. But for others, passing their home along to a great buyer may be important to them. Here’s a story for you: I had a seller who received 20 offers last summer. Out of those, personal letters were attached to 5 of the offers. After reading the letters, the seller was drawn to one of the buyers and their story. Although that offer wasn’t even in the top 3 (in terms of offer price), we negotiated the price the seller wanted and that buyer won the bid. Without the letter tugging on their heartstrings, that buyer would have lost out.
I hope this helps you win in a seller’s market. Want to buy a house? Let’s chat!
Here are more posts for buyers: