With the Fall real estate market on the horizon after what has been a sleepy summer (relative to sales in Summer 2020), the time is fast approaching for home buyers and sellers alike to put their ‘Game Face’ on and steel themselves for the market. Fall is always a busy time of year with back-to-school prep, wardrobe changeovers and a re-focus on work with a little less play.
With that, the Liberal Party, as part of their re-election platform, has raised the issue of housing affordability – with typical home prices going up 25% across Canada compared to last year, there is little doubt that something needs to be done.
Under the Liberals’ proposed “Home Buyers Bill of Rights,”, sellers would be required to tell buyers the precise dollar amounts of competing offers on their home. This communication would happen between listing and buyer realtors. Currently, most offers on homes are “blind,” meaning buyers are unaware of what others are offering to pay, as well as the conditions of their offers. Also, most properties listed today are below market value with an offer date – a tactic designed to attract multiple offers. A tactic that will not go away anytime soon.
While Buyers will certainly appreciate the transparency of an open-bidding process, many Sellers feel this to be a breach of privacy. Many agents welcome open-bidding, but there are two sides to the issue.
In the meantime, until such a Bill is passed, here’s what I suggest while navigating multiple offers:
Be prepared to be the top offer, but still be able to sleep at night. Know in advance what your upper limit for that home. The numbers of offers often (but not always) will indicate the bid escalation. For a detached house, it could be as high as a $50,000 per bidder. Also, look at what the historical spread has between the list and the sold price in the local market – It’s important here to look at the hyper local market.
Normally, highest offer wins.
However, there are other factors to consider:
Write a letter.
Selling a home is such an emotional process for homeowners. Often people want the next homeowner to love an appreciate the home’s attributes just as much as they did. Tell them who you are and show your love for the property.
Have your deposit ready.
This is psychologically putting on your game face. Sellers will know you’re serious and ready.
Bring a firm offer.
The Liberal government is proposing that buyers will have the legal right to home inspections, something I wholeheartedly agree with. Buyers should know what they are buying. All of our listings for low-rise single family homes have a home inspection as part of the listing. The home inspection is done by Carson Dunlop – the industry gold standard.
Give sellers their closing date.
Plain and Simple.
I know this is may be challenging, especially if it’s like the 10th house you’re bidding on. Trust that your Realtor is doing everything they can to help you win your house.
Hire a good realtor.
And lastly, it’s so important that your Realtor, be a consummate professional throughout and have a good positive rapport with the listing agent. This also goes a very long way on offer night. It’s simple. Be nice.