Tuesday, February 26, 2008 How To Handle A Multiple Offer Situationby Rob Viccars on Tue, Feb, 26, 2008 12:42 AM In the Lower Mainland bidding wars are still quite common. Especially for hot new listings. It can be a stressful situation and as a buyer you need to be prepared.
I've been through several multiple offer situations in the last couple of weeks. Here is my advice on how proceed and make a competitve offer in a tough situation:
1. Do your homework. Know the values of recent solds in the area so you can make a confident decision on what you are willing to pay.
2. Be available for your realtor so you can plan your strategy. Your agent will usually let you know in advance, as the listing realtor will have informed them that you are in a competitive situation.
3. Take your best shot. As a general rule, you should make your best offer in a multiple offer situation. You usually only get one chance to present to the sellers. Unfortunately, even a full-priced offer isn't always a guarantee. As we know in Vancouver, it's not uncommon to see offers well above the asking price.
4. Cut the red tape. Try to clear away subject conditions before your offer. The 'cleaner' the offer, the more attractive it is to the seller.
Although it may not be convenient, it may be possible to conduct a home inspection before your offer is presented. This way, you can eliminate the need for that subject condition from your offer. Unfortunately, you may end up paying for an inspection on a property you don't purchase.
5. Sometimes your realtor may ask you to accompany them to the offer presentation and wait nearby. Should there be a counter-offer you'll be able to make quick decisions.
6. Ask about a back-up offer. If you are unsuccessful in your offer, the seller may consider putting you in a back-up position. Should the first offer collapse, your accepted back-up will come into effect. However, be careful, as placing yourself in a back-up situation will limit your ability to pursue other properties. |
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