How to Win Offers in a Seller’s Market: 5 Tips for Success from a Billion Dollar Brokerage

This is how to compete in a seller’s market and put it in your strategic plan for buying. The real estate market is a seller’s market and it can be hard to win offers. With low inventory and too many buyers, there are a lot of failed offers in the process for buyers.

These top tips from real agents will help guide you through the buying process to leverage your offer:

1. Get properly pre-approved for a mortgage;
2. Understand and identify how seller’s bait you to a bidding war;
3. Get your real estate agent to a price home evaluation on properties before seeing the property;
4. Know your budget and only look at properties 10% lower than your mortgage budget;
5. Have two offer amounts ready to go on properties that are holding off offers

Tip #1 Get properly pre-approved for a mortgage is IMPORTANT!

Put simply, mortgage pre-approval is important because it helps to take the pressure off your home search. Mortgage approval can also provide peace of mind and security for those looking at buying a new place as they know what price range their potential purchase will fall within before starting this process – ensuring you don’t get caught up in an overpriced market or high cost area only find yourself disappointed when compared side by side with other homes that suit more appropriately into these costs associated owning property such as taxes and insurance which come out way higher than expected!

Tip #2 Understand and identify how Seller’s bait you

The current real estate market, seller’s go with a low listing price compared to the fair market value to create bidding war. Remember, your real estate agent will tell you if it is too good to be true with the listing price, then it is. This is designed to get you to compete against multiple offers from other buyers. Which causes you to go aggressive with the offer price.  Unless, you want to get into a bidding war for the property then stay from low priced properties. Don’t let this seller’s market bait you in!

Tip #3 Get your real estate agent to do a price home evaluation on properties before seeing the property

Knowing if the sales price is at fair market is key before seeing the property. Get your buyer’s agent to do price home evaluation to see the sale’s agent is pricing it at fair value or below to bait you in.

Tip #4 Know your budget and only look at properties 10% lower than your budget

The home buying process is intricate and this step is critical for you as a buyer. Your buyer’s agent will thank you for doing this in a seller’s market! Only look at properties that are below your budget. With so many properties being listed below fair market value and then fair market properties going way over asking.

Tip #5 Have two offer amounts ready to go

When putting an offer on a property holding off offers, real estate agents are now asking their buyers to give them two offer presentation amounts. The purpose the buyer’s agent asking two offer amounts is for two reasons:

1. Offer amount without competition;
2. Offer amount when in competition (bidding war)

We can’t close our eye’s and think that this isn’t a competitive market even in our small towns. Work with your seller’s agent to prepare to pivot quickly with offer amounts.

Conclusion:

We dream about a buyer’s market someday! When it comes, it’ll hit us quickly with an outlier. As we stand in a seller’s market today, the most important advice is educating yourself on a seller’s market strategy. I’m a real estate agent and real estate broker in Barrie, Ontario coaching clients throughout Canada on the Seller’s Market that we are facing the past two years.

Contact:

Name: Theresa Kerr

Email:Theresa.kerr@c21.ca

Phone:705-828-1179