What to Do and Not to Do In A Multiple Offer Situation
In a hot real estate market, such as that in the Greater Vancouver area, where there is high demand and low supply, many buyers are faced with a multiple offer scenario when submitting an offer on a property. Navigating a multiple offer scenario can be tricky, but the right tactics can help put your offer on the top of the list.
Do – Be prepared – have your contacts lined up.
Know who you’re going to use to perform a home inspection ahead of time, and if you’re really interested in the property, you may want to have them do a home inspection before the open house or time of viewing. If you’re purchasing a stratified condo, obtain strata documents ahead of time, such as the Property Condition Disclosure Statement (PCDS), strata minutes, and budget. Taking these extra steps can help you eliminate the need for subjects in your offer to the seller, making for a clean and easy transaction.
Do – Have a deposit ready.
You are ready to make an offer on the home of your dreams. But you have spotted 4 other interested parties at the open house. Make your offer stand out from the crowd by submitting a deposit cheque along with your contract. And if you are really interested, supercharge the deposit by putting down more than the seller is asking. After all, what’s more compelling than cold, hard, cash (or cheque)?
Do – Know your bottom line.
Consider the maximum price you’re willing to pay for the home and stick to it! It is easy to get caught up in the moment when there is high interest.
Do Not – Believe everything you hear.
It is important to remember to do your own research. Do not take all information provided at face value. As an example, if the seller claims there is a legal basement suite, make sure you get a professional inspection done. Do your due diligence to ensure that all statements are accurate; in the end, the onus will fall on you as the buyer.
Do – Seek the advice of a Realtor.
A Realtor can help understand current market conditions. They can help guide you through the buying process and provide insight on what you can do to win a multiple offer negotiation. In a hot market, the list price of homes can be out of line. A Realtor can help you assess an accurate list price.
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