As snow storms finally begin winding down, the temperature isn’t the only thing that starts heating up. The busy season for the real estate market is well on its way, which means you can expect to see so many more listings within the next few weeks.
But what exactly is the spring market? The spring market is the term used to describe the heightened competition in real estate that typically spans from March to May. Many experts agree it’s the best time of year to be a seller.
Since so many people are looking at properties at this time, multiple buyers are more likely to submit competing offers, resulting in a bidding war. In this scenario, buyers may review and adjust their offers to outbid others and secure the desired property. Ultimately, a bidding war can result in the seller getting a higher price and having to deal with fewer closing conditions.
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Luckily, there are many ways to prepare yourself as a buyer during this competitive time. Follow these ten essential home-buying tips to help you win (or avoid) a bidding war this spring.
How to Win a Bidding War: Do Your Research
In the bustling spring market, knowledge is power. Conduct thorough research to gain a strong understanding of your preferences, deal-breakers, and a realistic budget. Do your best to narrow down specific neighbourhoods you’ll want to buy in and perform cost comparisons to recent sales. This groundwork helps you feel prepared to offer as soon as you fall in love with a property.
Get Pre-Approved
A pre-approval letter from your mortgage lender shows sellers you’re serious and financially ready. Having your paperwork ready can help you make an offer more quickly without having to double-check with your bank first.
Make a Pre-Emptive Offer
Unless specifically stated otherwise, there’s no rule against submitting your bid before the designated offer date. A preemptive offer involves presenting the seller with an offer that exceeds their expectations and gives you an edge in the negotiation process.
Remove Conditions
Waving specific conditions, such as a home inspection or needing to fix broken appliances, will make you more likely to win a bidding war. Eliminating certain conditions ultimately makes the seller’s life easier and gives them a lot more peace of mind.
Be Flexible With Timing
In a market where time is precious, flexibility can be your ally. Try scheduling property viewings during weekdays, bypassing the Saturday open house rush. And if you’re ready to offer, adjust your move-in timeline to align with the seller’s preferences, whether moving in sooner or later.
Write a Personal Note
Many sellers have a strong personal connection to a property, which is why some buyers write personal letters in a bidding war with multiple offers. These letters express their love for the home and how they envision spending their time there and in the community. For instance, a senior couple who are empty-nesters might prefer selling their family home of 20 years to another young family with school-age kids, even if they didn’t offer the highest price.
Offer in Cash
If you’ve recently received a large sum, such as through inheritance lawsuit winnings or by selling another property without immediate plans to buy another, think about offering cash when purchasing a property. Cash deals eliminate the need for financing, assuring sellers that the deal is less likely to fall through.
Increase Your Down Payment
Upping your offer by offering more than the minimum down payment can be a tempting offer to the seller. A larger down payment makes your offer more attractive and demonstrates your commitment to the purchase.
Hire a Trusted Realtor
The best relators are talented negotiators, which makes all the difference when you’re making an offer in a bidding war. Start off on the right foot by asking your real estate agent these questions before deciding to work together.
Know When to Walk Away
While the desire to win a bidding war may be strong, knowing your financial limits and priorities is key. Understanding when to walk away from a real estate opportunity ensures you make decisions aligned with your long-term goals.
Do you have questions about how best to prepare for the spring market? We have answers! Give us a call today to speak to a real estate agent in your city.
