Sellers Market - How to have an attractive offer
We are currently experiencing a Sellers market is most of Southern Ontatio and in Waterloo Region to be specific. This means that right now, there are more buyers than there are homes for sale.
With fewer homes on the market and more buyers, homes sell quickly in a seller’s market. Prices of homes are likely to increase, and there are more likely to be multiple offers on a home. Multiple offers give the seller negotiating power, and conditional offers may be rejected.
Here are some tips on how to be more attractive to sellers:
Time is of the essence: Multiple offers happen with more regularity in a sellers' market than a buyer's market. That's because by its very nature a seller's market is defined in part by low inventory and lots of home buyers. A beautiful home that is priced well can attract more than one offer. Remember, you might not be the only buyer. Look at homes as they become available and make time to look if you feel this home may be the one, some sellers have tight timelines on which they will show their home, it may seem unreasonable, but try to fit into these timelines
Price: Price is not always the most important factor. But do not offer less than list price. Realize you may need to offer more than the amount the seller is asking. I would suggest that you look below the price you are willing to pay for any home in this market so you have room to move up to a price you are comfortable with instead of falling in love with a home that will sell well above your budget
Don't Request Favors: This is not the time to ask the seller to give you the refrigerator or washer and dryer, or part with fixtures, or paint the front door if they haven’t already said they would do this in the listing.
Be Flexible on your closing: The seller will often have a closing in mind, since they have most likely already purchased their next home, being flexible on your closing date will be helpful and one more way to be a more attractive offer, this may mean staying with family for a few weeks, or giving notice late at your current place, but worth it to get the home you love
Have a solid pre approval: Most offers in competition remove their clauses, this includes a financing clause, have this discussion with your bank or mortgage broker and make sure your approval is solid so you too can go in with no conditions to be more competitive