In a "hot" or "sellers'" real estate market the number of buyers of a home heavily outweighs the number of sellers. This creates a situation where, quite often, more than one party will bid on a home. Though it is true that this keeps real estate prices higher, it isn't the highest price that always wins the bid.
So, what does standard sale look like and how does a multiple offer scenario or “multiples” differ? I Interviewed local realtor Elliot Tan to find out more about multiple sales and how to win them:
In a standard sale, the first offer is usually not accepted. There is likely to be a couple of counter offers back and forth between the parties until both sides agree on a final price. In the final offer, the buyer will put in subjects such as getting their financing in place, and approving a home inspection before the deal goes firm.
In a multiple offer scenario each party will have an opportunity to place a "bid" and the seller will choose the offer that is most to their liking. If you’re going into multiple offers your offer will not go the typical route, however, those who are most prepared nearly always win.
So here are the top tips to help you prepare:
- Have very few subjects in your offer.
- Have financing in place (make sure you’re pre-approved) and have submitted all documents.
- Review all of the necessary documents before placing the offer (so you don’t need to put a subject to reviewing them)
- If it is a really hot listing and you are committed to buying it, do your home inspection before placing the offer.
- Be flexible with dates - talk to the selling realtor and ask what the preferred dates are, or leave the dates blank so the seller can fill it in themselves.
- Write a handwritten letter to the seller saying how much you love the home.
Without a doubt the most important subject for the Seller to see is to have no financing subject. This is why it is SO important to make sure you have a proper approval from your mortgage broker with your documentation all submitted ahead of time.
If you are thinking of purchasing in a "hot" real estate market and want to make sure you get the house you want be sure to give me a call.