We’ve all been in this situation and it’s becoming far more frequent in this sellers market driven by motivated buyers. So “What can I do to increase my chances of success when dealing with multiple offers?”
Here are our top 5 tips from the the LiveKitsilano Team:
Most sellers will be looking at price, They want the most for their home. Even if a home is priced at a certain number with multiple offers it will likely go over. What number should we go in at? This is a tough question as it can’t be answer correctly. My advise to a client would be what number would is our highest bid as when we in a multiple offer situation it’s best to go in with our strongest bid. Also if we find out it sold for X would we be willing to pay that number, if it’s a yes we should always go in with our best offer.
2. PRSENTING OFFEERS IN PERSON (get your agent to do this!)
This gives the sellers a chance to ask some questions about the buyers and gives your realtor a chance to let them know why you love the home so much! It doesn’t sound like much but it works.
For example if the sellers think the home they raised there family in for the last 30 years is going to be torn down, but the buyers are looking to come in and renovate but keep the charm and character of the home, sentimental sellers may have preference for a new family to move in.
3. SUBJECT FREE.
This is the BIG one. Subject free does not mean not doing your due-diligence on a home. All it means is being prepared.
We can have financing in order and 90% done (the bank may want to do an appraisal on the home) but most mortgage brokers can get you as close to an approval as possible before you write an offer.
Inspection: If you really love the home and know its the one for you, a pre-offer inspection can be done.
Documents: Most agents will have all important documents ready to go before they take any offers. Things like Property Disclosure Statements, Titles and Land/ Strata Docs too!
4.BANK DRAFT WITH OFFER
Ok so lets say we do everything right, we found a home, we did our inspection, the financing is in place and now comes time to submit the offer. Well to make our subject free offer even stronger we are seeing bank drafts being submitted with the offers. This shows the sellers yes we are serious and most importantly we have the deposit funds (typically 5% of Purchase price) ready to go.
5. CLEAN OFFER.
This is a redundant point but I cannot express how important this can be. Once you decide this is the “one” go ahead get and inspection, read the documents and make sure financing is on order. This will allow your realtor the write the cleanest offer possible, even down to specific terms like “Seller to clean the home prior to possession” If you’re ok with not having any Sellers terms this may be enough to nudge you ahead of the competition.
If you have any question please feel free to call / email anytime. – Ben Chimes – [email protected] – 604.222.2262