Subjects!!! What the heck are those?
In a sellers market as we have seen right now in Vancouver and the Fraser Valley and through out BC, buyers tend to use any and all tactics to "win" the property they're bidding on. In general the fewer subjects, the more appealing the offer for the seller as it takes away the "safety net" and option to back out from the buyer and nearly guarantees a sale.
Well, if you wanted to STAY protected and keep those subjects in your offer here are some of the TOP tips to get your offer accepted!
Here are the top 5 ways to make sure you have the BE
1) Pre-Approval Letter - This is such an important part of your offer, and for your personal best interest. The MOST common reason for a purchase not coming through is FINANCING.
When we issue a pre-approval you get the comfort of knowing your file has been reviewed and we have dealt with any surprises BEFORE your purchase. This places a lot of confidence in the sellers' hands when reviewing your offer.
The Pre Approval confirms the following:
- Your Income
- Your Credit
- Your Assets (ie. Downpayment)
The only thing it does NOT confirm is your property.
2) Cover Letter - This is a letter to the seller which is meant to be heart felt and in your own words tell the seller WHY this home is so important for you and your family. *This does not work generally for investors.
3) Dates - The more flexibility you have around the dates of possession and the sale of the sellers' home the more likely they will consider your listing. This is helpful to the seller as they may need to move out quickly, or conversely the may require longer dates in order to search for another property!
4) Subject Removal Period - Subjects are placed in a contract to protect the buyer in case of any issues with the property, they give you time to get certain items in order. Generally a subject removal period is 7-10 days, however in a HOT market this can be as few as 3-5 days. In order to be BEST prepared it is important to talk to your mortgage broker in advance of the offer.
5) Relationships- The Real Estate world, like most other business' are still a PEOPLE business. It is very often important that your realtor and mortgage broker has a pre-existing relationship with the listing real estate agent, or better yet is personable and able to find common ground. This is extremely important in negotiation of your potential new home!
David Smith > www.davidsmithhomes.ca