01.03.2019 | Buying A Home

5 Tips for Winning in a Multiple-Offer Scenario

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When a desirable home goes on the market in Toronto, it’s bound to attract a lot of attention—and fast. For buyers, the result is often stiff competition. There are few things as stressful as finding your dream property, only to discover that there are several other bids in the mix. Fortunately, there are steps you can take to optimize your offer and improve your chances of winning out.

Wondering what to do if you’re not the only one who wants your dream home? Here are five tips for putting your best foot forward in a multiple-offer scenario…

1) Make a large deposit

One of the best ways to make your offer stand out is by including a large deposit. While it’s true that the sum you pay will be part of your overall purchase price, it can also provide some protection for the seller. Think of it from their perspective. Buyers don’t always make it to closing, which can lead to a lot of wasted time and effort. If you make a large deposit and then back out of the deal, they’ll likely be entitled to keep your money. In the seller’s eyes, that means you’re a lot less likely to have a change of heart.

2) Ensure your offer is clean

Home-buying conditions can protect you in worst-case scenarios—like if an inspection turns up major issues with a property you’re buying, or your financing falls through. Unfortunately, sellers often see conditions as obstacles to a smooth sale. For this reason, making a “clean” offer (one that doesn’t contain conditions) can give you an advantage when there are multiple bids on the table. The good news is, there are steps you can take to minimize the risk associated with this strategy. Working with your agent to do your due diligence ahead of time is key.

3) Be flexible with your time

While money counts for a lot in a multiple-offer scenario, there’s also something to be said for making a seller’s life easier. One of the simplest ways to do that is by accommodating their timeline. Whether it’s due to job relocation, a family issue, or the timing of their home purchase, sellers sometimes want to close as quickly as possible. On the flip side, they may also want a bit of extra time to reduce the pressure of a major transition. Either way, indicating that you’re willing to be flexible could go a long way.

4) Include a personal letter

Writing a letter is one of the most frequently overlooked ways to help ensure that an offer gets noticed. The truth is, many sellers like to connect with the person who will be living in the home they’re leaving behind. Since you may not get the chance to meet them, writing a personal letter is the next best thing. By showcasing your personality and talking about why you love a seller’s property, you can make yourself relatable in their eyes. Of course, a letter may not be the deciding factor. What it can do is tip the scales in your favour if competing offers are otherwise similar to yours.

5) Work with a negotiations pro

When you’re in a competitive buying situation, it’s not just about the initial offer you make. It’s also about the back-and-forth of negotiations. If a seller counters your bid, the last thing you want is to come back with a price—or terms and conditions—that result in rejection. At the same time, you don’t want to get swept up in a bidding war and wind up offering far too much. Fortunately, an agent with the right expertise can help. Look for someone who knows the local market—and don’t forget to ask about their track record of negotiation success.

Being one of several buyers bidding on your dream home can be stressful. You have no control over the seller’s decision, so there are bound to be some ups and downs. The good news is, by taking a strategic approach, you can increase your chances of coming out on top.

Have questions about buying a home? Get in touch—we’d love to talk about the purchase process!

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