Tips and suggestions

#1 Hot Market Buying

Multiple Offers – how would you handle one? 

At present, Edmonton & surrounding areas are experiencing a hot market in the under $450,000 price range. Often, 2 or 3 offers come in on a well located, well maintained home. Sellers are expecting higher prices - so how can we buy the home that we really want, when there are two other offers on the property?

Here are a couple of points that you should consider:

1. Sometimes, offering as little as $100 over the list price has been enough to win the bidding war. Typically you don't get a second chance to improve on your original offer, so make it your best. What does the seller look at? Well, if it was your listing... the bottom line would likely be the price. Your realtor needs to guide you through this ordeal.
2. The amount of deposit will show the seller how serious you are. Putting a large deposit ($$$) up front shows the seller that you are serious about the transaction. The deposit should be made payable to the brokerage company that holds the listing, and it should be held in trust.
3. If you require financing, then see your favorite bank to obtain pre-approval. Get your pre- approval in writing so that your realtor can show this letter when presenting your offer. If you will be paying cash, then make your offer "subject to the home being appraised at the purchase price or higher".
4. Work with an Experienced realtor who is well known to other agents. Your agent's professionalism, or lack of it, may reflect on you or your offer. If your realtor is very experienced in this type of situation, then listen to his/her advice and obtain all the information you can.
5. The more contingencies you add to your offer, the less attractive your offer becomes.  Making an offer "subject to Financing" and "subject to Building Inspection" are okay, but "subject to approval of a friend or family" is not advisable. Ask your realtor to find out if the advertised possession date is still what the seller wants, since you want to make your offer as attractive as possible. Put yourself in the shoes of a seller - do you want more or fewer conditions? 

The LorenzTeam Realty Group has a wealth of knowledge in negotiating multiple offers as both a buyer or a seller. If you would like more information on negotiating multiple offers - please call!! We would be happy to discuss any of these points in more detail.

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