How To Win A Bidding War
Go high and go firm! That’s the strategy. What it means is to pay more than list price, which almost goes without saying when there are multiple offers, but you are also expected to have a firm offer, which means no conditions.
No condition on financing, so you may want to run the deal past your mortgage advisor. But keep in mind that you may be pre-approved for a certain dollar figure, but if the bank doesn’t agree with the value relative to the price you paid, you will only get your mortgage on the appraised value. Be very careful and don’t get too caught up in the frenzy, there will always be another house. A good Realtor will provide you with a market analysis of comparative properties that have sold, and will help you to determine current market value. In a market that is rapidly moving upwards you may have to pay more than the last sale to get the home.
No condition on a Home Inspection. You have some choices here. You can schedule a home inspection prior to the offer date. That way you know what you’re dealing with and your offer will reflect the conditon of the home. This is risky, as you may end up paying roughly $400 and still not have the highest offer or get the house, but many buyers would not be comfortable without a home inspection.
Some homes have a pre-listing home inspection available for review. Generally this is for information purposes only, and you can’t rely on the report, often there is a disclaimer to this effect in the Schedule of the offer. The Home Inspector is only responsible to the person who contracted their services. Whether it’s purchased by a potential buyer or the home seller, the information will be the same, and is an un-biased assessment of the home, they can’t hide anything for the seller or fail to report findings.
My opinion is that you could get a few different home inspectors to look at the same house and they may all find something different. It’s a visual, non-intrusive inspection of the home, which may not be able to reveal all the potential issues a homeowner may face. There is no perfect home, so be prepared.
Bring a large deposit. Size does count, the larger your deposit, the more attractive your offer is. Make sure it’s either certified or a bank draft. If your offer isn’t the one chosen, you just take the cheque back and re-deposit, a little bit of a hassle, but necessary.
There are a few other creative ways to make your offer more attractive……but I can’t reveal all my secrets.
Picture of white, red and blue house by: Photographer: renjith krishnan