The Greater Toronto Real Estate Market is still soaring up high. This has seen an increase in the use of bidding wars technique, to finally sell a property. Luckily, Brampton, Milton, and Burlington areas have seen a small percentage of homes going to bidding wars.
However, this doesn't cancel out any likelihood of you finding yourself in a bidding war in the mentioned areas. A bidding war is good for the seller; it is usually aimed at getting maximum returns by hoping to sell the house at way over the asking amount.
As a homeowner, finding yourself in a bidding war can be frustrating, more so, if you are in love with the property on sale. You want to do all you can to win the war but at the same time ensure that you do not get burned by overbidding.
To win a bidding war, you need to strategize carefully. How do you go about it while ensuring that you don't get burned?
Check Your Emotions
Finding a home for yourself and family can be very emotional. When you find that property that you deem perfect for you, figure out how much you will be willing and can pay for it. Put a cap on that number. It will help you stick to your budget and also prevent you from losing out by winning an overpriced home.
Before you start hunting for houses, ensure that you are pre-approved for a mortgage. You may have your mortgage provider send out an appraiser. The asking price isn't what the house will go for but where the negotiations begin upward bound. Any offer with a financial condition is a weak approach.
You could attach a bank draft with the down payment with your offer. It will help put the seller's mind at ease and show that you are serious about the property. Your first offer should give room for prices to go up. Have a buffer in place as some sellers make a decision on the offer from the first shot.
Don't provide too high a price or too small.
Build a Connection with The Seller
Adding a personal touch to the offer has often proved successful to bidders who have adopted this method. The seller wants to know that their property will be in good hands. Touch upon something that resonates with the seller. Is there a feature of the home that you would like to preserve? Build a connection with them and if possible be there in person to make the offer.
If you are using a realtor, you can advise them to share some little information about you, with the seller.
Get Yourself a Great Realtor
As far as bidding wars and real estate agents go, always go for an experienced one. Choose one who also has experience with sellers as they understand how the bidding war goes, which buttons to push and which no to, for the bid to go in your favor.
Ask as many questions as you can and make your desires known to the realtor.
The home buying process can become an enjoyable experience once you have someone by your side to help you maneuver the hurdles and overcome.