Probably the number one question I get at open houses these days: is the market slowing down? And the answer to that depends on how you look at it. The number of sellers have certainly increased, but the buying pool I think for the most part has remained the same. It seems buyers no longer feel like if they miss out on something, they may not get another chance. I checked to see sales in Cambridge, this week June 5th through June 9th. There were 43 sales that week, and 79% of those sale were at, or above asking price (108% of list price). At first glance that seems like an indication that Sellers are still getting well over asking price in most of the cases. And you'd be right for drawing that conclusion. But when you examine the data from May 8th to 12th, we find 90% of the sales at or above asking price (110% of list price). We also know that inventory levels are increasing so all of this is to be expected. So have potential seller's missed the boat? Certainly not, but more so than a month ago, buyers have options and thus it's crucial that your list price be bang on. Do you have questions about pricing? How do you feel about the direction the market is heading? Comments are always welcomed.
There are no guarantees that any one of the following tricks will work, but they certainly do improve your chances in a multiple offer situation.
Multiple Offer situations, or Bidding Wars, almost never used to happen. Certainly not the way they are manufactured today for almost every single house that comes on the market. It used to be that the first one in to see the listing, had first crack at the house if they acted quick. Not anymore of course with Seller's withholding offers for about a week to get as many people through the house as possible before looking at any offers on a specific date and time.
So for the last year, buyers, sellers and their respective realtors have been going in blind, treading new territory, some fumbling through the process, others leading the way, with almost everyone confused, unclear, or with their own interpretation of how the process should be handled. This has resulted in a lot of clever tricks, some of them pushing the boundaries of whether they are even legal or not, but in this fast moving market, there hardly seems time to raise question or concerns. And there are so many concerns with how the process is currently handled, it's bound to blow up in someone's face one day.
Here are some easy steps you can follow, to improve your odds of getting your offer accepted:
These are my tips for winning multiple offer situations. There are always exceptions and unknowns, someone from out of town could come in with a million bucks for a semi, which no amount of preparation will negate. But follow these steps, and you'll have a pretty decent shot of getting your home!
Buying and Selling Residential, Condominium and Investment real estate in the Waterloo Region since 2008. Oh, and also Ottawa! :-D