It’s happening again.
After months of reduced market activity and single offers being the norm in the Toronto real estate market, things are changing.
The market is becoming competitive again.
If you’re a buyer, you’re going to have to do more than just match the asking price. You’ll have to do some other things to make sure you get your best shot at landing your next home. Here are four things that you can take charge of when submitting your next offer:
- Deposit in Hand
- Limited Conditions and Asks
- Price it Right
- Personal Note
Deposit in Hand
This is where money talks (and betters your chances!). The bigger the deposit, the bigger the impact you’ll likely have on the seller. A bigger deposit demonstrates your commitment not only to the house, but to the deal. Also, to make it easier, have a certified cheque or a bank draft in hand when you make your offer. This allows the sellers to accept a firm and binding offer that night. It also increases the possibility of the sellers prioritizing peace of mind with your offer over a competitor who’s deposit will be delivered the next day. A bird in the hand may allow you to get the property for a better price or over someone else.
Remember that the deposit is submitted with the offer, or it is due within 24 hours unless otherwise noted.
Limited Conditions and Asks
While it may not be to your preference, submitting an offer that isn’t contingent on a financing or a home inspection condition could give you the edge over a competing offer. While it needs to be carefully considered before submitting such an offer, mitigating your risks by completing your own pre-offer inspection can give you peace of mind and lower your chances of an issue down the road. Relying on the seller’s pre-list home inspection and showing up with a pre-approval of financing will also put you on the front foot.
Price it Right
Work with your agent to determine both the price that you can afford, and one that will get you the best chance at acceptance. You’ll evaluate what makes sense concerning market value, risk tolerance, and just how badly you want to buy the property. Then there is the balance of over-bidding and under-bidding, and potentially insulting the seller. When the market is competitive as the current market may be shifting towards, the top offer with terms is usually successful.
Personal Note
If you’re lucky, you’ll meet the seller before offer time. This is a great opportunity to connect with them and possibly give you an edge. But, if you don’t get a chance to make a good impression with the seller during the open house, a personal note can also make a difference. A personal note is a great way to introduce yourself, share some information about you, and let them know exactly why you love their home. Some sellers will be impacted by your genuine note. This has sometimes resulted in being given an advantage over other offers without the same sincere effort.
Best Position
Following all of the above recommendations doesn’t guarantee that you’ll get the next house that you put an offer on, but it will give you a better shot. And don’t you want to put yourself in the best position for success?
Are you seeing some properties that interest you? I can help you steer through the current complex market conditions and put you in a better position to make your next move! Send me an email at hillary@hillarylane.ca! I’d love to provide my expertise!
Photo by Lauren Mancke on Unsplash
