I work in Victoria Real Estate and as a Realtor, helping Real Estate buyers in the seller's market can be daunting and challenging.
However, I have been achieving great results and winning the ultimate desired home for my buyer clients by implementing certain strategies, even in a fearful and intimidating multiple offer case.
Here are some in a short list that can help buyers. By implementing these simple strategies and pre-actively investigating all the important issues, the results are fun and fruitful.
- COMMUNICATE WITH THE LISTING AGENT
It is crucial to be in direct communication with the listing agent closer to the time and date assigned, when the offers are reviewed, to obtain more insight on how many offers he/she is expecting. Based on this conversation, if there are other offers on table or upcoming, strategy times on purchase price begins.
MULTIPLE OFFER = PROPERTY MARKET VALUE DOES NOT EXIST
I have told all my clients to understand when there is a multiple offer on the table, the property market value, which i advised them based on many comparable, does not exist anymore. What does that mean?
In multiple offers, it is the purchase power that determines who gets the property.
I always require my clients to ask themselves two question:
1- From 1-10 how much do they want this house. If they respond is 8+ it leads to question 2:
2- From 1-10, how upset do they get if they find out they paid certain amount higher price than any other offers? If they respond in a lower 4-, I'll ask them to strategize about the price.
- PRICE STRATEGY
It all comes down to affordability.
Other than what financial institution having provided you with a limit of your house purchase, appraisal is a big player in strategizing your price. If you decide to pay $50,000 over the asking price and appraisal does not support that adjustment, then the buyer must understand that the $50,000 remaining would be required in cash or from their savings.
Other than the issue above, I also ask my buyer clients to come up with 2 numbers, BEST and FINAL and the second number is another BEST and BEST and FINAL.
The strategy is that if they are chosen above other offers and competing with one other offer, sometimes the sellers instruct their seller agent to go back to both those offers and give them another opportunity to adjust their offer.
In that case the buyers choose the BEST and BEST and FINAL instead of stressfully decide in a very short time.
It is always advisable for buyers to calculate all angles of their affordability and make an educated decision.
- LARGE DEPOSIT
placing a large deposit secures the sellers and it gives an offer a better chance to stand out. The sellers want to sell their property and want to secure it. A large deposit is an indicator of a serious buyer.
- WRITE A LETTER
When helping a family locating a home, and have them involved in the on-going multiple offer, I have the family write a heartfelt letter to the seller, discussing their desire and purpose of their purchase. Sellers who leaved in the same property for a long period of time, are attached to its history and integrity. Hearing another family will continue this joy and are not planning to demolish it, will give them a warm heart.
- DO THE INSPECTION BEFORE
If you know this is the home you will make an offer on, instead of carelessly waiving the Inspection Clause, do it before writing an offer. This is the best result strategy. Yes! You might spend few hundred on inspection, but the result is you know now, if there are any major issues with the property. This will also help, re-strategizing the price. If it requires a new roof, and the cost of roof ie: is ten thousand dollars, then, the price cap on the house is dramatically altered.
- REVIEW THE DOCUMENTS IN ADVANCE
One of the positive aspect of dealing with a Realtor, is that they have an immediate access to many documents.
main documents to review are Title, Property Disclosure Statement and in regards to any strata, thank goodness to Victoria Real Estate Board, they also have an access to Bylaws. The Realtor also can request an additional strata forms and document for further review. Most useful documents are Form B, which is the history and information on the unit liability and Special Assessment which is crucial for understanding any up-coming expenses.
- CALL AN INSURANCE COMPANY
A simple solution to understand about a property is to call an insurance company. This will lead the real estate buyers to understand more about the property while the insurance agent asking about it. It also secures that the property is insurable.
- OFFER DEPOSIT INCENTIVE IF THE SUBJECT IS NOT REMOVED
For some buyers going without any subjects is impossible. Most buyers obtain financing. Pre-approval does not guarantee the approval and proper interest rate from financial institutions. Most Real Estate seekers are reliant on the mortgage financing and it is best to implement it in the contract as subject. Some buyers already have conditional approval and provided further documents for the mortgage specialist, knowing their guaranteed approval, but are not 100% about it. in this case i had my buyer client offering non-refundable deposit for certain amount they are comfortable in a case if they don't remove their subject/s
- PRESENT THE OFFER
in Many cases, as a Real Estate agent and Realtor of the buyer, I contacted the listing agent inquiring if i could present the offer directly. It is an old fashion way of dealing with sellers and most are not comfortable, but worth a try. If this option is not available, I inform the listing agent, that at the time the sellers are reviewing the offer, I'd be sitting outside with the buyers right by my side awaiting their communication. This will go a long way since we show our sincerity and eagerness of the purchase. I assure them if any changes needed we are right outside to adjust it in minutes.
Hope these strategies can help many buyers out there and assist them in not to blindly and carelessly waive any conditions. Every subject and condition in the contract is in there to protect your purchase. Due diligence is important and if buyers can do it in advance before making the offer, it makes it secure to waive those investigated and assured subjects are satisfactory.
If you have any questions please do not hesitate to contact me at 250-885-8908