How to Come Out On Top in Competition
Although the number of available listings has increased in Calgary, many buyers are still finding themselves competing for properties as soon as they come on the market. Low interest rates, high consumer confidence, and steadily increasing real estate prices have motivated buyers to bring their best offer forward as soon as they see a home that meets their needs.
So what happens if you find yourself making an offer on a home that several other buyers have their eye on? In a competition, there are a few important things you can do to give yourself an advantage over the other offers.
Selling agents are legally obligated to disclose how many competing offers have been registered, but they are not allowed to disclose the other buyer's purchase price or terms. Once you are informed that other offers are on the table, it's a good idea to come forward with your strongest purchase price. The sellers will know that you are serious, and no further negotiating may be necessary to finalize the purchase.
Recognize that the terms of your offer play an important role when the sellers are considering your agreement of purchase. Your closing date, conditions, and any specific inclusions or exclusions may influence the seller’s decision. If you can offer a flexible closing date to the sellers, be sure to indicate that in your offer. This flexibility may be worth more to them than a slightly higher purchase price.
Most buyers, especially first-time home buyers, like to include a home inspection and financing condition in their purchase agreement to avoid surprises down the road. If these conditions will be part of your deal, contact your mortgage professional as soon as possible so that you are prepared to offer a shorter condition period. Start your mortgage application ahead of time, even before you have found a home. Once your lender has collected your information, they can allow you to waive your financing condition within a few days. Select a reputable home inspector, and confirm their availability prior to submitting your offer.
Despite the other offers, decide what you are willing to pay based on recent market comparisons. You want to feel good about your purchase and know that you paid a good price for a great home.
Are you buying or selling a home in Calgary? Do you want an agent who has the enthusiasm and energy to get things done, with your best interests in mind at all times? Contact me at 403-617-8758, firstname.lastname@example.org or www.kellymacdonald.ca and let's make good things happen!
About Kelly Macdonald
Kelly Macdonald is a Realtor® with The Real Estate Company in Calgary, where she has been living (and loving it!) since she was 10. Kelly offers her clients a unique mix of youthful vigor, creativity and technical and design savvy on one hand, and professionalism and transactional expertise from her business degree and strong administrative background on the other. Kelly is also a devoted wife and mother of two, with whom she finds time from her busy schedule to play scrabble and walk by the beautiful lake of their home in Southeast Calgary.