Multiple Offers... Are you prepared?
Windsor/Essex County is right smack in the middle of a hot sellers market! With an influx of buyers looking to take advantage of the low interest rates and favourable pricing our area offers, there just arean't enough homes for sale to accomodate everyone. This creates a feeding frenzy and it's important to be prepared and arm yourself with the propers tools and knowledge so that when it's time to make an offer on a home with multiple offers, you have a chance.
Work With an Agent
The most important first step is to find a good agent that you are comfortable with. An agent you trust, who you can always reach and who will help to educate you on what you need to do in order to be prepared for a multiple offer situation. Attempting to put an offer on a home without agent representation is risky business!
It's very important to make sure you have been to the bank, given a good broker all of your financial information and been pre-approved for a certain amount. The last thing you want in this competetive market is to win a bid, only to have to ask for an extension on your finance clause because the bank needs more time. In these situations the sellers usually have a backup offer in place and will not want to give you any extra time than what your offer originally asked for. Which means you will lose what could be your dream house. Avoid these situations! Get pre-approved!
Make A Strong Offer
In most cases you only get one chance so make sure you bring your best offer. If you truly love the house and feel that this is the house for you, talk to your agent and figure out the best price you can offer without overpaying. Don't battle with yourself over $500 or $1000. Most listings that receive multiple offers result in sellers getting full price or in several cases much more. Make a decision on price, be comfortable with it and cross your fingers!
In many cases the conditions and terms of your offer can be just as important as price. If you have a house to sell condition chances are you won't be winning many bids with so many first time home buyers out there. If at all possible, sell your house first. This can be tough as many people will have nowhere to live and feel rushed to buy something, however, if you are in a position to sell your home first, do it! In some cases buyers have the luxury of making an offer with no finance clause at all. This is a strong offer and one that sellers love to see. The same goes for home inspections. I would never recommend skipping the home inspection, however if you can bring your inspector through early or in some way pre-inspect the property, an offer with no inspection clause is very appealing!
Talk with your agent regarding all conditions, terms and price and determine the best offer you can possibly make without overpaying or putting yourself at risk financially. In the end, that is all you can do.