How to buy a property in a hot market Toronto
Have you ever heard one of your friends or family members complain about not getting their “dream” home because of a bidding war?
Well, here are some tips on how to win a “bidding” war in a hot SELLERS market.
1. Have your finances in order
If you are in a multiple offer situation it may be neccessary to exclude certain conditions, such as financing and home inspection. In these situations, it is important that you have the confidence that you’ll be approved for a mortgage for the home you’re trying to purchase.
2. Educate Yourself
Talk to your Realtor and other experts to learn as much as you can about the real estate market. Understand what is currently driving the market demand, current inventory, how fast homes are selling, list versus sell price and frequency of multiple offers in your desired area.
3. Remove Emotion
Purchasing a home in a hot market means that you may lose during negotiations. Getting emotionally attached to a home prior to a firm deal can lead to a feeling of frustration in the event an offer is lost.
4. Be realistic with the offer price
Let’s face it, a low ball offer in a “bidding war” is not going to have a chance so be realistic with your offer price and make sure that even if you’re going above the asking price (which is very common in a hot seller’s market such as Toronto) that it still fits your budget.
5. Be flexible with terms of your offer
As mentioned above, if your offer is one of several offers that the Seller is going to be looking at try to make it as appealing as possible. It’s not unheard of that the highest bidder doesn’t win the “bidding war’, you can still win the home with a slightly lower or same offer if you show flexibility on other conditions associated with the sale. Flexible closing dates and possibly waiving conditions on the purchase of a home such as home inspection and mortgage financing make your offer much more attractive to the Seller.