With so few homes on the market today and with low mortgage rates driving buyer activity, the bidding war phenomenon is common. Multiple offer scenarios are here for the foreseeable future, so if you’re planning to buy a home this year, it’s important to do everything right and act quickly and efficiently.
COVID-19 has accelerated earlier trends, bringing even more buyers than the market can handle. In Kitchener-Waterloo, fierce competition, bidding wars, and multiple offer scenarios have been ongoing for most of the year and show no signs of ceasing.
Four things you can do to make your offer a winning one
Here are four things you can do to make your offer a competitive:
1. Be Prepared for a Bidding War
Learn what is going on in the marketplace, how to make an offer, how long homes are remaining on the market, pricing practices, how offers work, the paperwork involved in an offer…go over everything with your Realtor as you begin your search, so you’ll be ready with a winning offer when the right house is listed.
2. Be Pre-approved
The majority of homebuyers get pre-approved as they begin their home search. Buyers who are pre-approved are definitely a step ahead when it’s time to make an offer. No only do they know how much they can afford to pay, they also have the confidence that their lender will come through with the mortgage upon closing. Smart buyers contact their mortgage professionals and get pre-approved early in the home buying process.
3. Be Your Best Offer
In a highly competitive real estate market, it’s common for sellers to pick a date and time to review all offers on a house at one time. (This is to encourage a bidding war for the property.) If this is the case, you will not have an opportunity to negotiate back and forth with the sellers. Not only are properties selling quickly, but they are also getting multiple offers. Make sure the offer you’re presenting is the best one you have. Don’t hold anything back in case there is a second round of bids. Your Realtor will help you make you make an offer that is a fair and competitive.
4. Be Fast
With homes selling so fast, there is no time to waste in the process. In Kitchener-Waterloo our average days on market has been in the single digits all year. You will not have time to sleep on it or shop around when you find a home you love. Put in your offer as soon as you can, even if that means putting in a pre-emptive offer (also called a bully offer).
Conclusion and Call to Action
The housing market is very strong right now. Buyers are scooping up available homes as fast as they are coming onto the market. If you’re planning to purchase a home this autumn, contact me today so you’re ready to compete – and win.
Further reading about the bidding war phenomenon
How much should I offer if there are multiple offers?
How’s the Market?
Real Estate videos