With how hot Canadian real estate markets are right now, buying a house in Canada can feel almost impossible. Canadian house prices are rising, and it seems almost every house is now seeing multiple offers, bidding wars and selling so quickly some first time home buyers don’t even get a chance to see it before it sells. So how do you buy a house in a bidding war or multiple offers? On this Episode of Bald Prairie Real Estate, I am going to give you seven strategies and tips to help you win a multiple offer situation.
If you use these seven tips and strategies to win a multiple offer situation, you will have a much better chance of not being in a bidding war or winning that multiple offer and buying a house in Canada, even in those hot Canadian real estate markets.
In a hot real estate market, you need to be prepared to look at homes with the intention of making a decision to buy that house the day that you see it. When you are looking to buy a house that is likely going to be a bidding war unfortunately you cannot wait. If you wait it will likely be sold by the time you make that decision.
Money isn’t what motivates every seller. At every step of the process in buying a house you want to try and gather as much information about the sellers but also your competition. For example, if you find out that the sellers have bought another house and that a possession date that matches moving into that new house focus on that. Offering them more money but not a possession date that works for them might not help you win that multiple offer. The buyer that offered them a possession day that works is likely the one that is going to win the multiple offer and buy the house.
The best way to avoid a bidding war or multiple offer situation is to not get into one in the first place. A good buyer’s agent is going to focused on finding houses that have not yet hit the market or are just coming on the market. If you are able to find a house that is not yet on the market see if you can make an offer to the sellers before it hits the market. When a listing is new on the market you want to try and get to see it right away. That will give you time to gather information about the property and make the strongest offer you can if it ends up in a multiple offer situation.
Making a pre-emptive or bully offer is another way to avoid a bidding war. But it many Canadian real estate markets this may not be an option. A pre-emotive or bully offer is when a buyer makes an offer to the sellers before the seller has indicated they will review offers. Most Canadian housing markets give the sellers the option to not receive any offers before a set date. If this applies in your housing market a bully offer will do you no good. It is an aggressive strategy, but it is a tool in your toolbox when buying a house in Canada.
There was a time in Canadian real estate that all offers were presented directly to sellers by the buyer’s agent. Today fewer buyers’ agents are presenting offers to sellers. But this strategy allows you to put all that knowledge you have gathered about the sellers into action. You know what motivates the sellers so you know how to craft an offer that will be appealing to the sellers and your agent knows best how to present that offer so that you have the best chance of winning a multiple offer.
[1:14] Another Bad Dad Joke
[1:28] Being prepared to buy a house
[2:46] Gathering information
[5:26] Possession day flexibility
[6:22] Off market/new listings
[7:08] Pre-emptive or bully offers
[9:16] Presentation of the offer
[10:30] Wrap up
#BaldPrairieRealEstate #BuyingAHouseInCanada #MultipleOffers
First-time home buyer assistance programs: https://youtu.be/craBpTOnrZo
Is your credit score high enough to buy a condo: https://youtu.be/ai30N0pOBUU
Are you a first-time home buyer? https://youtu.be/DYbvgUkFFXA
Should you buy a house in 2021? https://youtu.be/fAqg7CHpARA
The mortgage stress test: https://youtu.be/J8lAd7G08xY
Buying a condo with zero down payment: https://youtu.be/RWnSyjg479s
My name is Matthew Pfeifer and this is Bald Prairie Real estate. I am a realtor in Regina Saskatchewan working for Royal LePage Regina Realty. In nearly 10 years working as a real estate agent I have seen both ups and downs in the market. But there is no real estate market that you cannot buy or sell a house in. Often the media tries to present a Canadian real estate market, or they talk about the real estate market in Canada as if there is a national market. The real estate market in Canada is very regionalized. Being from Regina I focus on the Regina real estate market. Bald Prairie real estate is about educating you about Canadian real estate. I cover first-time home buyer topics, tips for selling your home, how to buy a house in Canada and monthly Canadian real estate market updates.
Royal LePage Regina Realty