How to Win a Bidding War

34 % of Canadians are prepared to enter into a bidding war, according to a recent BMO report. That number jumps in the countries hottest markets to 44% of Torontonians and 41% of Vancouverites. Desired Real Estate, combined with a sellers market means buyers are often one of many fighting for a home.

The good thing is the Ontario government is introducing new rules to crack down on unethical deals that try to pump up housing prices.

“It’s all in the context of these bidding wars, and the idea is a potential buyer knowing ‘am I in competition, and how many people am I in competition with?’” says Bruce Matthews, deputy registrar of the Real Estate Council of Ontario (RECO), which oversees real estate agents and is responsible for enforcing the new rules.

Here are a few things you can do to better your chances of winning a bidding war!

Timing is everything

Do your homework first. Organize an appraisal, shop around and be ready to act fast once the house hits the market. If you know exactly what you are buying into, a firm offer can hold a lot of weight. This certainty to the seller may get you the home.

Secure Financing

Get pre-approved from multiple lenders. Sellers are attracted to buyers who don’t have less conditions on offers. Cash sales can hold more weight, so if this is not the case for you, proving your financing is key. Having at least a 20% downpayment on hand is helpful.

The Offer

Put forth your highest and best offer from the start. This will show your commitment and you’ll know you tried your best. The conditions in your offer (or lack of) give the seller confidence to know what they are dealing with. Being flexible on closing dates, inspections, financing and being accommodating to the seller make you very attractive.

Contact us to help you get the home you want!

Our team of real estate sales professionals is committed to finding you, your dream home. Whether you’re looking to buy or sell, the Karen Paul team is here to help with any questions.