The housing market can be a very competitive field of bidding wars, especially for first-time home buyers looking to settle in. There is a massive demand for high-quality homes in excellent neighbourhoods that can net the home seller a pretty penny from several different offers. Naturally, not everyone will win out in the end and, more often than not, inexperienced home buyers can get outbid every time. To help you prepare the best bid for your dream home, you should rely on an experienced, professional real estate agent to help guide you through the buying process.
At YGRealty TO, we’re a Trinity Bellwoods real estate agency led by Yan Gurevich – Broker, that has a passion for helping home buyers and sellers with their outstanding properties. We manage many different properties across Toronto’s distinctive neighbourhood areas, including having real estate agents in The Junction. Contact us today to inquire about the different homes we offer and how we can help secure your new home.
By partnering up with a strong real estate agent from our team, it can increase your chances of putting the right bid on the home of your desire. Here are a few ways in which you can prepare an excellent bid and solidify your offer to the seller.
How Do I Convince A Seller To Accept My Offer?
The best way to get a seller to accept your offer is to offer more money for the home, as well as make sure you have the capital to do so. Money talks in this business and making lowball offers will get you to outbid every single time. Be prepared to go beyond the asking price for a home in order to meet the value of the property.
If you offer more money than other bidders, you’ll increase your chances of getting the seller to accept your offer. The price of the home itself depends on its price, location, and demand for it. If you’re competing with other buyers, sweeten your offer by increasing your down payment commitment for the home. This means fewer loans will be needed from the bank and is very ideal if a bidding war pushes the home’s price above and beyond its initial worth. It would also be helpful if you back your down payment with financial proof such as pay stub documents, tax forms, etc.
Moreover, while this may not apply to every bidder, you can convince a seller to take your offer by offering the full cash amount to cover the purchase price. This will eliminate the need for a third party to get involved and risk their finances through a loan. When you eliminate any need for that by paying in cash, you increase your chances of getting your dream home. If you don’t have the cash or initial down payment to buy the home, it’s still a good idea to set aside some money to prepare for the competitive bids you’ll have to face.
This gets us into several reasons why a seller may not accept your offer outright.
Why Would A Seller Not Accept My Offer?
There can be many reasons why a seller may not accept your offer, but above everything else, they’re looking for strong buyers who want to see the buying process and signing of the contract to the end. It helps to set up a pre-approval document from your lender to show them and the seller that the money you’ll be borrowing will be used for the home. With the pre-approval in hand, it will convince a seller to take your offer, as opposed to the buyer without a pre-approval that may carry more risk.
It’s important to know that sellers don’t want their homes to sit on the market forever. To increase your chances of not getting rejected by the seller, consider dropping some contingencies, which are conditions that will be met in order to close a deal on a property. This gives the seller more incentive to consider your offer. You’re telling them that you’re willing and able to pay an additional amount in cash at close if the home is valued at less than its average purchase price. If these conditions aren’t met, the seller can back out of the deal without consequences or lost money. Be careful if you do this, as you’ll need to have the cash to cover the down payment and handle closing costs.
To help you through the home buying process, a strong real estate agent can help you form these strategies and put you in the best position for a strong bid.
Why Do I Need A Strong Real Estate Agent To Solidify My Offer?
A reliable real estate agent is knowledgeable about the homes available in your preferred area of choice. They’ll help you reevaluate your house-hunting strategy and analyze the recent bids you lost out on. They’ll also help you look for homes in a lower price range and find any advantages in a multiple offer situation.
Moreover, real estate agents help you redefine your success. They’ll assist in helping you find a property that will suit your needs at an affordable price and a fair mortgage payment that you can sustain long-term.
Contact YGRealtyTO today to explore our various properties across the Trinity Bellwoods and The Junction areas. Work with our real estate team now to secure the best value home in a competitive housing market!