April 4, 2011

What to do when there’s multiple offers?

Here are tips on what you can do to land the perfect house that has multiple offers. 

1. Get a pre-approved mortgage. If you have a pre-qualified loan certificate, it shows the seller that you have the money to back up your offer, which says that you’re serious about buying this property.

2. Know the market value. You need to know what you can afford so that you can figure out what kind of offer you can make and try to predict what others may bid. Knowing what the fair market value of the homes you’re interested in is, along with similar houses in other prospective neighbourhoods, is a must.

3. Make a firm offer. An offer free from complicated clauses, conditions or terms will make your bid that much more attractive.

4. Get a home inspection. Make sure that you get a professional opinion on the status of the house. You want to make sure that there are no unexpected repairs or other issues that you might have to deal with.

5. Ignore the fancy decor. Most homes are staged to look their best and appeal to as many buyers as possible – keep this in mind. How well will the house actually fit your belongings and your lifestyle?

6. Make more viewing appointments. It’s important to go for more than one viewing to confirm your initial reaction. You might have fallen in love at first site and therefore may have a dreamier remembrance of what you saw. Go back, get the details and think again with your head not your heart.

7. Add appeal to your offer. Are there other small incentives you can offer the seller such as paying the closing costs or meeting a specific closing date? Something which helps make the sale easier to the vendor may help you cinch the deal.

8. Know your limit. Purchasing your home isn’t just an investment – it’s a life decision, one that’s not just a business deal but a personal one. It’s possible to get carried away in the heat of the moment so it’s important to stay logical. Establish the line you won’t cross.