If you’re in the process of buying a home in Kitchener-Waterloo & Cambridge, then the reality is you may ultimately get into a bidding war with other buyers. Like many areas across the country, The Region of Waterloo is experiencing a sellers’ market. There is a lack of inventory and an influx of people who would like to buy a home. As a result, those ready to sell are in a favourable position to generate multiple offers. There are a few strategies that can help position your offer above others. Please contact one of the team members if you would like to discuss these in more detail.
Have Financing in Order
Don’t rely on what the Internet tells you or a simple pre-qualification from a lender. Take the extra step and get mortgage pre-approval. By discussing your financial situation in depth with your lender, you’ll have more confidence in your buying power. This is paramount if you plan to not include a finance condition in your offer.
Have Fewer Conditions
The fewer conditions an offer has, the more desirable it becomes. You may consider removing a condition on financing, this should be discussed with your lender and ensure you know the limits. By completing a home inspection in advance of an offer, this condition could be waived. Although these are not always a recommended approach, it is a reality. You should discuss with your realtor in depth before submitting an unconditional offer.
Submit a Large Earnest Money Deposit
The ability to include a large sum of money as a deposit can provide the seller with confidence in your purchasing power. This could ultimately give you an advantage over the other home buyers.
Be Flexible with the Sellers’ Needs
Buyers often make the mistake of wanting to win in negotiations. Aim for a win-win situation. You can accomplish this by understanding what contractual components are important for the seller. As an example, if the seller is looking for a specific closing date, try to give them their preferred date – or close to it.
Create a Personal Connection
Can a personal letter really work? Depending on the property adding a personal touch to your offer can have an impact during a bidding war. A new construction home or one sold directly by a developer, this approach may not hold much weight, but for someone who is selling their family home there may be enough of an emotional connection. Letting go of their family home may be a difficult process and by letting them know you will take care of it may give you the edge you need to overcome another prospective buyer.
Don’t Take It Personally
It’s easy to get caught up in the bidding war process when you are competing against other buyers. Try to stay levelheaded and make sure you are completely comfortable with your offer and terms. Talk to your agent and be sure that you’re not over bidding just to win the property. You want to come in with your best offer possible, as long as it still complies with your needs and goals.
Stay Positive When Buying a Home
It can be incredibly frustrating when buying a home in a competitive marketplace like Kitchener-Waterloo & Cambridge. Inventory levels are low and competition is high. It is possible for buyers to lose out on several bidding wars before a home purchase sticks. Working with a professional whom you trust and respect can help the process feel less daunting.