There’s no doubt that the Toronto real estate market is more competitive than ever. High demand and low inventory mixed in with low pricing strategies has created bidding wars and over asking sold prices. So how does a buyer set themselves up competitively to win in today’s market? You may be wondering how you could possibly win in multiple offers but don’t worry, we’ve got your back.
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Here are 7 tips to help you win in multiple offers
Tip #1 – Pre-approval is a must
In a competitive market tying yourself up in a finance condition is foolish. Speak to a mortgage broker that will guide you on your budget. Figuring out your finances is step one before you see any homes. Ask your broker how much above can you go if you can go any. Use a broker that is accessible and willing to work with you during an offer.
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Tip #2 – Access to instant listing alerts
Being the first to know of a listing can help you get into the home before your competition. Which then gives you the opportunity to offer earlier, if allowed. There’s technology real estate agents use like, collaborate and prospect searches that will give you instant access or a daily recap of listings. What many people don’t know is there’s always a delay of an hour to two before it reaches the world wide web. However, collaborate works instantly.
Tip #3 – Representation
An important step is to set yourself up with agent(s) that work creatively and quickly. Being creative with your offer, negotiation and finding you listings. Working quickly by giving you access to listings and scheduling to see them fast. A competitive market is a fast pace market. Ever hear the saying “the early bird gets the worm”? Apply that to your real estate purchase. Oh and, two agents are better than one;).
Tip #4 – A buyer marketing strategy
Market yourself. Yes, buyers need marketing plans as much as sellers. Your real estate agent should set up a plan for you and sometimes they’ll even go as far as taking out ads ($$) to find offline deals. It shouldn’t stop there. An enticing well-written offer will help in negotiation. Pair with a letter to the sellers.
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Tip #5- Sell first, buy second…well maybe
This point we always say will vary person to person. Speaking to a financial advisor and your real estate agent will always help. However, majority of the time people need to sell in order to buy. If this is your case, you need to get that home on the market ASAP! In a competitive market, sellers have the upper hand. You can ask for a long closing date to give you time on the buy side.
Tip #6 – Bully offers
To win in multiple offers, don’t be afraid to put in a pre-emptive offer. Putting in a pre-emptive offer means to offer before the sellers set offer date. Your offer must be competitive. Meaning, competitive in pricing, conditions, closing date, deposit, etc. It should exceed the sellers mind so much so that they accept it and take the listing off the market before the offer date. Work with a real estate agent to narrow down what that competitive offer looks like.
Tip #7 – Prepare with a consultation
Many real estate agents will offer a free consultation. There’s no harm in having a conversation about everything discussed in this article, and more. Interview 2-3 agents and find out if they can commit their time to having you as their buyer in a competitive market. Find out their buyer strategies to overcome this heated market. Gain insight and knowledge through a simple meeting.
Happy #househunting!
