In the “new normal” that is the ultra-competitive Vancouver housing market, buyers expect to be in a bidding war. Inventory is at an all-time low with supply chasing unprecedented demand. Prices continue to climb and competition is fierce.
Buyers are going to extraordinary lengths to get into the market. Here are 4 tips on how to become the most desirable buyer – and create a compelling offer to win a bidding war.
1. Keep it clean
Key to winning a multiple-offer situation is a clean offer. Conditional sales and offers contingent on financing just don’t work in this market. That means having your financing in place before you even start looking at properties. Contact your financial institution so you know exactly what you can carry – and how high you can go in the offer. Ask your lender for written confirmation for the amount of the mortgage.
Key takeaway: View multiple properties, understand the market, and come into a multiple-offer situation with your financial ducks in a row.
2. Do your home inspection early
Most REALTORS don’t recommend buying a home without an inspection, but making your offer contingent on an inspection can weaken your position. Many buyers are now opting to take their home inspector with them to open houses. Carefully read all disclosures and reports that are available prior to making your offer.
Key takeaway: Put money aside so that you can have your home inspector view the property with you.
3. Be flexible
Find out the seller’s conditions and offer to meet them. Winning a multiple offer situation may be as easy as agreeing to the seller’s closing dates, buying the property “as is” or even tightening the subject removal dates. This is especially important if the seller has already bought another property and is anxious to move on.
Key takeaway: If you can make things easier for the seller, it can be about more than price.
4. Know when to walk away
Buying a home is a huge commitment. You have to be smart about it. Multiple offer situations are stressful. Know what you would be comfortable with paying each month and stand firm on the top end of your budget. If the seller does not accept your best offer, it’s time to move on. There will be another home even if it doesn’t feel like it in the moment.
Key takeaway: It is much better to buy the right home at the right price than to make a commitment because something is available.
Contact David Crawford at 604 418 7653 to get the information you need and develop a strategy for entering the market.