Multiple Offers in Halton Hills- How to Compete without regrets
When a well priced, desirable home comes on to the market, it can attract a lot of attention and subsequently multiple offers. While it doesn't happen as frequently in Georgetown as it does in nearby Toronto, it still happens. Many of our clients tend to shy away from offer situations where they will have to compete against other buyers, but there is no reason to be apprehensive. Armed with a little knowledge and a good, experienced agent you'll be well equipped to handle anything.
Know the market!
Before entering into a multiple offer situation, your agent should dig up information on all the homes- currently for sale and recently sold- that compare to the home you are thinking of buying. By examining them, your agent will be able to come up with a fair market price. You will then be able to use this price as a guideline to decide what amount you should offer. Be aware of bidding more than a little above market value. If a situation should arise where you have to sell the home, you're more likely to come up short. Lenders will often refuse to mortgage homes for more than they are worth.
Decide the maximum you are willing to pay, offer no less and make a pact with yourself to pay no more.
Deciding ahead of time what you are willing to pay will help keep you level headed throughout the process. While in regular offer situations it's normal to do a little haggling over the price, this is not the best strategy during multiples. Offering your top amount right away increases your odds of coming out ahead of the pack. While hoping that your best is good enough, keep in mind that sometimes it just isn't. Preparing yourself for the possibility that you may not get the house helps to prevent you from offering more than you really were prepared to pay- and from regrets later on.
Remember- there are plenty more houses out there. Sometimes it takes awhile to find the one that's right for you, on your terms.
It's not all about the money!
Yes, money is an important part of the offer but it's not everything. A good agent will be able to help you keep your offer as "clean"- meaning "as condition free," as possible. To sellers, each condition you include in your offer reduces the likelihood that you, as a buyer, will pull through and go on to close the deal. For instance, many offers are conditional upon financing. It's wise to get final mortgage approval from your lending institution before submitting your offer. That way, your offer has more substance and is a safer bet for the seller when choosing a buyer to work with. Other important elements of your offer include the deposit- the larger the better and the closing date. Sometimes a seller will accept less money to get the closing date they need.
What is the process real estate agents must follow in Multiple offer situations?
When more than one offer is registered on a particular property the listing agent must inform all the other agents who have submitted offers as well. The agent must reveal the number of competing offers, but is prohibited from disclosing what any of them contain. Keep in mind that although the other bids are kept secret, in Georgetown and Acton, they aren't usually sky high. Sometimes just a few thousand above list price will secure the home of your dreams.
Where can I find a good agent?
Bill McNally, a local Halton Hills realtor, has extensive experience in all types of real estate situations. He's best known for his unrivalled people skills and the resulting ability to negotiate win-win situations for everyone involved in a transaction. His tenacity and strong work ethics have enabled him to be among the top selling agents at Johnson Associates. He can be reached at 905-877-5165.