As we are seeing in the Waterloo Region, with the demand for property far outweighing the supply, it can be difficult and exasperating at times, to be a buyer in a sellers market. Here are some things to consider when entering this market
Know the market.
Visit a few open houses in the area and check out their asking prices. See what their square footage and features are in relation to your property. It is good to bring on a realtor who knows a lot about your area. Some homes in your area could be underpriced!
Plan.
So, you’ve found your dream property. But you are certain theres going to be competition to get it. Don’t offer asking price! Increase your offer. In a bidding war, more often than not your competitors come in offering hundreds / thousands more.
You can also present your offer as a deal that will go through quickly. You can pre-plan by getting any inspections out of the way. Get your financing approved now. These two things will reduce the conditions of your offer and give a shorter date of completion. Often sellers want to sell up as quickly as possible, so even if your bid wasn’t the highest, it may still be accepted if it seems like it will go through quicker than the rest.
Move fast.
As soon as you hear about a new property on the market, go and check it out. Within 24 hours if possible. And ask for all of the information you can think of up front. This will make you prepared for the bidding war right from the off.
In a seller’s market, there’s no time to sit back and mull things over. If you want to buy, you need to make it your priority.
Multiple offers.
Don’t make the mistake of assuming you don’t have a chance just because a property has multiple offers. Research has found that the majority of offers are at or below the asking price.
Work with a pro.
I know you can do it alone. But just because you can do something yourself, it doesn’t mean you should.
Realtors have the inside scoop on the industry. They are privy to information that you, as a buyer, are not. And they are vastly experienced in all issues surrounding real estate. The seller will have an estate agent on their side fighting for them. It only makes sense to retaliate with an expert of your own.
Don’t give up.
So, the market isn’t on your side right now. That doesn’t mean all hope is lost. It just means you have to work a little harder to get what you want. You will get there in the end, as long as you just keep going.
Get in touch today for more expert advice on buying a property in a seller’s market.
