Tips for Winning a Bidding War!
Many people are surprised to learn that the highest bid is not always the winning bid.
Find a realtor who is experienced, knowledgeable and hardworking. The real estate industry is competitive, and the stakes are high—so make sure you choose your Realtor carefully. Ask your colleagues, friends and family for referrals, then interview several agents to find one whose sales history and process seem promising to you. Make sure your prospective agent has worked in the town or neighborhood you’re looking to get into.
Speak with a Mortgage Specialist and Get a Pre-Approval in Place
Be financially prepared before you start looking for a home. Speak to a mortgage broker who can educate you on all of the moving parts and get you pre-approved for financing. Understanding your finances is essential if you want to keep a cool head as you search for a new home. Most buyers have a preferred range and then a screaming limit. Know which is which and stick to it.
Research. Research. Research.
Do your homework. When you’re looking at a property and want to know what it is worth, ask yourself, “What are the comparable properties selling for?” Recent sales can be helpful in establishing market value but if you’re outbid, chances are that your competition is using last month’s sale prices as an upper limit for their bids. If the market has been running this hard and fast, it’s important to also factor in what tomorrow’s price is likely to be.
Preparation is Your Key to Success
In a market like ours, where homes are in high demand and short supply, sellers can afford to be picky. But that doesn’t mean you have to leave yourself vulnerable. Do your homework in advance.
You might not get away with including a financing condition in your offer, but a good mortgage broker should be able to do a work-up on the specific property you’re interested in prior to submitting your bid. A home inspection can also help — many listing agents will have pre-listing home inspections done for prospective buyers.
Even then, consider bringing a contractor through with you. They can help you zero-in on what the liabilities could be so that you can budget accordingly for best- and worst-case scenarios.
Help Your Offer to Stand out from the Crowd
Many buyers are surprised to learn that the winning bid is not always the highest. To help your offer stand out, include a strong deposit and provide a photo of your bank draft with your offer. Give the sellers the closing date they ask for, and make sure your agent paints a picture of who they are working on behalf of.
Include a letter to attach to your offer, along with a photo. If you are renting and have nothing to sell, make sure that the sellers know. Price isn’t everything — it’s about what can actually close with minimal risk of bumps along the way.
I hope this article helped shed some light on the bidding process many first time buyers like yourself are currently facing. Don’t lose hope! Your dream home is waiting for you to find it.
How can Ahmad, mortgage specialist at AskAhmad.ca and the Total Mortgage Source 360 Team help you?
Ahmad and his team are industry experts on mortgages. They offer excellent customer service and pride themselves on their ability to help you find the right mortgage product for your needs.
We can offer you some of the most competitive interest rates and mortgage products available because we have access to Canada’s leading lenders, including banks, mortgage firms, trust companies and private lenders.
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Ahmad El-Farram, Mortgage Agent #M21005249
The Mortgage Centre at Total Mortgage Source 360
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