Advice on how to get an accepted offer in a CRAZY seller’s market.
If you have been following the real estate market in Winnipeg you know it is a seller’s market. There is a lack of inventory and an oversupply of buyers, likely a response to extremely low interest rates. If you have recently sold your home or plan to do so soon, congratulations things are looking great for you. On the opposite side of the spectrum, if you are a buyer trying to get into the market, I have some tips on what you can do to maximum your chances of getting an accepted offer without sacrificing everything!
Working with an agent you trust
This is always #1 in my books. I feel like finding the right agent is almost the same as find your soulmate – I did say almost! Working with an agent you trust and believe in will make the already stressful process of buying that much less stressful. Your agent will be able to give you up to date information about the market and/or specific listings, they will manage their time and yours efficiently, walk you through the process of buying (if you are new to real estate), give you tons of information about homes you are interested in. An agent has the knowledge and experience to tell you the positives and negative aspects of the house, things that might need maintenance soon, what comparable homes in the neighbourhood have sold for, etc. In this crazy market it really is in your best interest to find the right agent for you! So... take the time to link up with an agent, do some research, ask questions, and finally get to shopping!
Pre-approval is Key
Getting pre-approved from a reputable bank or mortgage broker is one of the smartest things you can do to increase your chances of getting an accepted offer on a home you love. If you were to make an offer on a property and you are not pre-approved for, the homeowner may assume you were not a serious buyer and might overlook your offer entirely. If you want to be competitive in a seller’s market a pre-approval is a must. Once you have received your pre-approval, your mortgage broker should provide a letter indicating the details of your pre-approval which can be included with the offer to show proof that you have done your due diligence. As Realtor, we advise getting a pre-approval before your start your search. So... if you are looking to buy a house soon and do not have a pre-approval GET ONE!
Write Your Best Offer First.
In a seller’s market a buyer should be doing any and everything they can to increase their chances of getting an accepted offer. In some cases, as a buyer, you might be competing against 40+ other offers so writing your best offer is extremely important because usually you do not get a second chance to alter the offer once the selling agent has started presenting. A couple of things you should consider before you write an offer. Is a home inspection a must? Most agent would strongly encourage their clients to complete a pre-inspection. It is extremely valuable to be well informed of the condition of the house you are interested in. I would never tell someone to not do a home inspection. I learn something at every home inspection I attend, and think they are fantastic. In a seller’s market it is more challenging to get an accepted offer if you include a post-purchase inspection as a condition. So that is where the PRE inspection comes in. This is when a home inspector will inspect the home you are trying to purchase before you submit the offer. Yes, that means spending the money on a home inspection before the offer is accepted but again it is all about writing the best offer you can. Pre-inspections may cost between $200 to $300 up front, but for the piece of mind, and for the sake of a strong offer, I would say it is worth it. The second point is an easy one – do not ask for the extras. If the house, you are wanting has a freezer and an extra fridge and it is not included in the listing – don’t ask for it. The third point is if you can write a cash offer DO IT. An unconditional offer is very appealing to a seller and greatly increases your chances of getting an accepted offer. However, this is something we would need to discuss further prior to writing as many of us can not afford to do pay all cash for a house.
A deposit is to be included along with the offer. It forms part of the purchase price. The amount suggested will vary based on the property and situation in which you are offering. However, the amount you provide shows how serious you are as a buyer because this money ultimately protects the seller if the buyer decides to walk away from the deal after conditions have been satisfied. So…the larger the sum provided as a down payment the more enticing your offer will be to the seller.
Buying a house in this seller’s market is tough, but I encourage you to hang in there. Try some or all of these tips to help you stand out from the competition and put you that much closer to an accepted offer! Happy House Hunting!
Phone: (204) 470-5356