What is a Bidding War ?

Thinking of buying a home usually starts off very exciting!

Well why not it should be! , you are finally ready to purchase your own home, or you’re moving into a newer home!

So you have selected your realtor, to represent you, your buyer agency is signed, and your realtor is searching for the best homes that fit your criteria.

Except…….now that you are ready to put an offer, you are told there is another offer! then another and ok what does that mean I just chose a house I want to buy?
another ! Or there is a set offer presentation date?? Umm

Well it’s not that simple, now that there is an offer, there is no time to think it over, or sleep on it, this is the time to act fast, yes it feels rushed and pressured for such a big purchase but waiting will lose your chance at the home of your choice.

So here is how things change and what you should do if you are in a sellers’ market

Well for sure you need to have a pre-approval from your bank you need to be absolutely sure you will be able to qualify for a mortgage. Also chances are if there is more than one offer, be prepared to offer over the asking.

Conditions are also something that disappears, such as conditions for financing, and home inspection, it’s a hard pill to swallow, but if you’re in a sellers’ market you need to be a strong buyer!

This is not the time to take chances and hope for things, that’s why it’s important to know exactly what your borrowing power is.

 Be prepared to offer a very strong deposit, this all depends on the purchase price but the more the better makes the seller know you are serious.

Oh ya and the bbq in the back yard or the pool table you were hoping to ask for  let’s not ask for that, this is not the time to ask for things the sellers did not originally offer.

So since putting in a condition for a home inspection is not a great idea, what I suggest to my buyers in this situation, is prepare for unexpected cost, or if you have someone in the family that know a bit more about homes and construction, bring them along to give you advice on some of the items that may cost you money to change or replace.

Closing dates are almost always going to be what the seller prefers, so be prepared to accommodate 

I know this does not sound fun for a buyer, but what I can tell you from the previous multiple offers I have been in with my buyers, that even though they are paying a higher price and taking on more risk, they are always happy to have secured a property, and they no longer worry about prices creeping up, as the multiple offer prices drive the listings price higher and higher.

So I guess if you’re going to purchase in a sellers’ market, makes sure you have an experienced agent to help you every step of the way! And be well informed before taking any risk!

Natasha