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Tips for Buyers in a Hot Market

tips for buyers

You’ve no doubt heard stories of the “Bidding wars” that sprung up during Canada’s record-breaking pace in the housing market. Good news for home sellers. Buyers, not so much. While choices can be limited in a hot market there are several tried-and-true tactics that can help you acquire your dream home.

Homebuyers can strengthen their negotiating position by getting finances in order first. Before you reach the stage when you’re ready to prepare an offer, get pre-approved for a mortgage. Your Coldwell Banker sales professional can put you in touch with a reputable lender who will offer you competitive rates and terms. Going into negotiations with a pre-approved mortgage lets you make an offer that is not conditional upon obtaining financing. Your representative will be presenting a ‘clean’ offer with fewer conditions. The fact that you already have financing in place also demonstrates that you’re a stable, dependable buyer. It all adds up to make your offer more appealing.

In a hot market, where other prospective buyers might enter negotiations at any time, it’s to your advantage to keep counter-offers to a minimum. Your sales representative can help you prepare an offer-to-purchase that accommodates the seller’s terms as much as possible. Keep in mind that other aspects of the offer may have value to the seller beyond just the purchase price. For example, if the seller specifies a closing date other than what you’d prefer, think twice before making a change. Measure the date’s importance against the value of presenting a clean offer, with little in it for the seller to object to. What may be a minor consideration to you could have great importance to the seller. Remember that if any aspect of your offer is revised, then in effect, your entire offer is refused. That means everything can come back up for negotiation again, including the price.

Another major factor comes into play if you already own a home. Your offer will become much more attractive if you eliminate the condition of selling your existing home first. You can do this either by selling your existing home before you buy or by taking the more-risky option of assuming it will sell quickly in the current market conditions. If you don’t sell your home as quickly as you hope, it may end up costing you some additional money in terms of bridge financing. That may be an acceptable risk to you, but make sure you have all your facts before you decide. Your Coldwell Banker real estate professional can counsel you on the pros and cons of each option, to help you make an informed decision.

We look forward to sharing our knowledge of the Niagara market with you on the phone, at 905-357-9700 or by email: