You’ve found the house or condo that is perfect for you, but the Toronto real estate market is hot with plenty of other buyers to compete with. How can you make a bid the sellers can’t refuse? Here are some helpful tips for making your offer stand out from the rest.
Research can be invaluable. Find out what you can about the sellers’ situation: Why are they moving? Are they in a hurry, or are they looking for a long closing? Do they have kids who will need to change schools? A good agent will do their best to obtain the answers to these questions in order to help their clients with putting together an intriguing offer. If you are looking to buy in this hot Toronto real estate market, make sure your agent does their best to gather as much personal information about the sellers in order to hopefully put you in a better position than others that may be bidding on the same property. Your agent will be able to collect this information by communicating with the sellers’ agent along with doing some additional research. You may or may not get the answers you are looking for, but it is always better to do your best to obtain this information.
Know the Toronto real estate market. Similar to the above tip, do your research in regards to current market trends in the specific neighbourhood or condo that you are interested in. Make sure your agent completes thorough research regarding the most recent sales in the area and discuss your budget to determine if your offer will be viewed as a reasonable offer that is worth considering by the sellers. It is important to provide a realistic offer price from the beginning. Some buyers have the mindset of submitting an offer at a very low price point and are then open to negotiating upwards from their original offer. This can be a bad idea in the current Toronto real estate market as it is very likely that your offer will be competing with others. Unless there is something substantially wrong with the property, you most likely will not be getting a “deal” in today’s market.
Be sure you’ve covered the basics. Make certain the paperwork is complete, all signatures are present, your financing is in place, you have been pre-approved if need be and you’ve provided a reasonable deposit with your offer. Although the amount of the deposit doesn’t technically matter from a legal standpoint, by providing a substantial deposit, you are showing that you are serious about the purchase of the property and that the possibility of you attempting to walk away from the deal is very unlikely. In almost every offer presentation that I have been involved with, the seller has chosen an offer that has a larger deposit than the others and each time the seller has felt that the offer with the larger deposit is a better offer. Covering the basics and providing a substantial deposit makes your offer more appealing.
Personalize your offer. One technique that can impress sellers is ensuring your agent explains your personal situation to the sellers. Have your agent express the different aspects that you love about the property, what your plans are for the future, how much your children loved the property (if you have children), etc.
Be flexible. It is best to be flexible with the sellers’ requests. The more flexible you are, the more likely your offer will be accepted. If the seller wants a long closing and you can work with that, do it. If the seller really doesn’t want to have to pay someone to remove the large dresser from the master bedroom, offer to allow them to leave it in the house. Selling a property can be a stressful experience for many. By eliminating some of the stresses on the seller by being flexible, you will drastically increase the likeliness of them accepting your offer.
Be very responsive to any questions or issues the sellers raise. Don’t keep them waiting for a reply; be gracious about any special requests even if you must turn them down. It’s important to keep the dialogue going and keep the momentum moving towards a successful sale.
Making use of these techniques should put your offer in the spotlight and get you a positive response. For more ideas, contact me today.