Real estate markets are determined by supply and demand.  Markets can fluctuate  from a buyer's market to a balanced market to a seller's market and back very quickly for a variety of different reasons. 

A seller's market is one in which the buyers outnumber the available inventory.  This results in putting the seller in a very solid position to sell quickly for top price.  In order for a buyer to compete with a multitude of others looking in the same price range for limited product they must be fully prepared and educated.

• Make sure you work with a REALTOR who will keep you abreast of new inventory as soon as it becomes available.  Good agents will network with their colleagues to spread the word as to what they are looking for. 
• Be available to view the property as soon as possible.  If you put in an offer before competing you are likely to get it for less money.
• Do not submit a low ball offer.  In a seller's market there will not likely be much movement in the price when it has just been listed.  Sellers have the confidence that if they don't get their price from you they will wait for the next offer.
• Make sure you are pre-approved for financing.  This is not the time to be looking for a property that you aren't sure if you can afford or not.  If you are going to make an offer conditional on financing make sure your bank or mortgage broker has all pertinent information such as income letters, amount of down payment, etc. and that you have discussed interest rate, taxes, maintenance and utility fees.
• If you do get into a multiple offer situation make sure you put your best figure forward.  Your chances to negotiate are slim if you are competing so go with your highest and best. 
• Make sure you are comfortable with your offer price when competing.  You do not want to have remorse afterwards when you find out what the home sold for and you now wish you had put in a higher offer. 
• If you know you are competing and you want to prepare a strong offer you may want to do a building inspection on the property before you submit an offer.  If satisfied you are able to submit your offer without this pending condition. The cleaner the offer, the better chance it will be accepted.
• Stay positive if your offer or offers are rejected.  Sit back and regroup.  The right house WILL come along.  Try not to feel pressured.  Often times that may lead you to buy a home for the wrong reasons.  Remember what your priorities were when you started out.  Do not compromise just for the sake of "winning" a bid.
• Consider renting short term until there is less pressure.  If you are being transferred and not familiar with the area or prices it may be worth taking the extra time to explore and get a better feel for what neighbourhood would work best for you.
• Make sure your REALTOR explains fully the multiple offer situation.  It is important to know when offers are open and closed and how the negotiations will be handled.  Strategy is very important when there are competing offers.

Remember, no matter what the market, the home buying process should not be overly stressful.  No matter what your price range, you are looking for your future dream home.  This should be an enjoyable experience.  Make sure you choose a local real estate professional who will be your partner in this venture.

For information on the current seller's market in Oakville, Ontario contact Jenny Kotulak, Your Oakville Community Realtor.

Past President Oakville, Milton & District Real Estate Board