We are in the middle of a market that will be talked about for years. Prices are hitting what we consider to be astronomical levels, there are multiple offers on almost everything and buyer fatigue is becoming prevalent everywhere.
Take Nanaimo for instance. Typically we would have around 300 homes on the market. We are averaging 81 and today, at $900,000 or less, there are 32 homes.
What I wanted to cover today is the 5 things to do to get your offer accepted?
Read below or watch it here: https://youtu.be/9d2HFjJ7BDo
First – Be pre-approved to purchase. Absolutely key to putting in a solid offer is to be pre-approved. You know what you can buy and can possibly write without a financing condition.
Second – No games. No low-ball offers, saying you can counter us or then coming back higher. Some sellers will not care but others will say… I will not sell to them. No subject to viewing or long subjects for financing and if you’re really serious… no subjects what-so-ever.
I am a big fan of getting a home inspection but, and this is a big one… if you can afford to repair the typical items that a home inspection reveals, skip it. Build $20k into your budget for the unknown and you will almost always come out ahead.
Third – Do your research. Know the values of similar homes in the area and in competitive areas AND, know what the trend in these areas is. Be ready to come in strong with an offer that initially may seem above market. I know of lots of homes that shocked us with the sale price and 4 months later, we are saying… that was a deal. If you’re in the home for more than 2 years…pay a bit more. $50,000 is only $225/month
Fourth – Be flexible… with inclusions and dates. Sometimes just allowing the sellers to leave some rubbish or furniture that they don’t want can be the difference between getting the home and not.
Fifth – Don’t worry about the other offers. I know of buyers that missed out because they “Did not want to get into a bidding war” and the amount they were considering offering was just higher than the accepted offer. Put in your best offer and let the chips fall where they do.
And the Bonus, # Six – Write a love letter. No, not to me… to the sellers. It doesn’t always work but a letter to the sellers telling them about you and how much you will enjoy living in their home can go a long way – especially if the offers are close. I had one offer accepted that was $28,000 lower because their letter told the seller about themselves and how much they loved the home and the seller really resonated with that.
So yes, it’s a tough market for buyers but do you homework and follow this 6 steps and you’ll find yourself in a home.