5 Smart Ways To Make Sure You Win A Bidding War
Vancouver is a tricky market, one that requires experience and nuance. The reasons for the high demand in the city are often debated, but no matter your opinion one factor remains consistent, demand is historically above average compared to other real estate markets. Our city is always rated as one of the nicest places in the world to live, so it’s not surprising to see competition for properties.
1) Make Sure Your Finances Are In Order
When you are thinking about getting into the market to buy a property, the first thing you need to think about is the financial viability of the purchase. If you need to get anything sorted out, do so as soon as you possibly can. This will make sure you don’t end up bidding on a home that you can’t afford. Keep your agent informed on any changes in your financial situation. The bare minimum to put down is 5% of the purchase price, but if you can afford 20% down you can avoid costly mortgage insurance fees. The stronger, and cleaner, your offer is, the more likely it will be the best the seller receives.
2) The Early Bird Gets The Worm
This age old adage applies to the real estate process as well. If you are in a competitive portion of the market, you’ll want to make sure to view a sought after property quickly. The sooner I can arrange a viewing for you, the sooner you can process the details and make a decision on whether or not it’s a good fit for you. It also gives you the opportunity to view the property a 2nd time if necessary. Seeing a home for the second time gives you the chance to inspect it a little deeper and see if there are any items you missed the first time around.
3) Hire A Professional Home Inspector
Even though all homes should have to include a Property Disclosure Statement there is always the possiblity that the current owner is unaware of an issue facing their property. When it comes down to it, it never hurts to have a competent home inspector have a look over the unit. After all it’s not exactly a small purchase, it’s important to cover all your bases. I can connect with my preferred inspectors, they always operate independently of me. If you are able to avoid putting the home inspection as a condition of the offer, this can put you in the drivers seat when you are in a bidding war.
4) Have Your Deposit Ready To Go
Once the seller gives you the green light and accepts your offer, you need to provide the agreed deposit to proceed with the transaction. A certified cheque or money order is needed to prove that you have the funds available to continue the process. Coming to the table prepared increases the chance the seller will accept your offer over another, so it’s advantageous to have your deposit ready to show when you right the offer.
5) Make Sure You Are Motivated!
Even though I always suggest removing emotions from the negotiating process when possible, it’s important to have a strong motivation to want to win a bidding war. We’ll always keep our cards close to our chest, it’s important to never let the opposing party know your position. If you think the home is the perfect one for you we’ll make sure to submit a bid that is the best possible. If the seller is being unreasonable and values their property too highly, it’s also important to be able to walk away.
I also wrote this article showing the process from a sellers perspective : https://www.rew.ca/news/ask-the-expert-how-can-we-get-multiple-bids-on-our-property-1.2201446