BIDDING WAR

It’s easy to get caught up in a bidding war, especially when you find your dream home. While sellers can only hope that they’ll list and a bidding war ensues, home buyers should tread carefully when this situation arises.


Remember that just because one hopeful homebuyer outbids your offer, doesn’t necessarily mean you should volley back. In the worst-case scenario, you might end up with a home you haven’t researched, in a neighbourhood you don’t love, at a price you can’t afford.


A real estate agent that you trust, who knows the local market, can help you navigate through a bidding war and rein in any over-enthusiasm. In the meantime, here are some strategies to help you make a smart bid and if all goes well, a smart buy.

Know your limit.

As a homebuyer, a mortgage pre-approval is step #1, regardless of market conditions. This step informs you of how much you can spend on a home. It’s your hard limit, should a bidding war ensue. A mortgage pre-approval also guarantees your interest rate for 90 days or more, bringing peace of mind around concerns of short-term rate increases.

Get the comparables.

How much is the home really worth? Your real estate agent will pull recent sales stats for you, offering valuable insight on the price of comparable homes in the same neighbourhood. You’ll then be better equipped to determine how comfortable you are taking on competing bids.

Know what you’re buying.

We all know that premium neighbourhoods come at higher prices. It could be proximity to the downtown core, access to lakefront, parks and recreation, good schools, shopping, or all of the above. Consider what you want and need, and why. Then decide if the home and community you’re considering is worth the price.

Short-term timing.

One trick to winning a bidding war is to avoid it altogether. Make an offer before the home hits the MLS system or gains buyer attention through an open house. Your agent will best advise you on how to proceed, so prepare to drop everything to tour a new listing and make your offer, before someone else does! (Note: Mortgage pre-approval in this scenario is key.)

Long-term planning.

The spring and fall housing markets see the most real estate action, with buyers out in droves and bidding wars bubbling at the surface. If you’re not in a hurry to buy, minimize your competition and possibly even price by shopping in the “off” season. Winter sees a drop in inventory, but also in demand, reducing your chance of being outbid.

Be smart about your bid.

You did your homework, right? You’ve determined how much you can afford to spend. And you know what the home is worth based on comparables. You also know what the home is worth to you. Make a bid that’s reflective of all of these considerations. Before jumping on the bidding bandwagon, have confidence that you’re getting a good deal.

When all is said and done, remember that the spoils don’t always go to the highest bidder. Make a clean offer, be flexible, and know when to walk away. The right home isn’t “right” if the cost to you is wrong.

BC Assessments Vs.What Your Home is Truly Worth

Posted on Nov 12, 2018

A great article about property assessments;

BC Assessment notices have arrived in the mail, giving some homeowners a big smile and a bit more spring in their step (increased property taxes aside), while others wilt and lament at a modest gain or decrease in assessed value.
 

Neither this assessment document, nor either parties’ emotions, are tied to a...

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Luxury Condo Market Soars, While Single-Detached Luxury Home Sales Fall Short

Posted on Nov 10, 2018

Toronto and Vancouver luxury condo market bolstered by local buyers, downsizing retirees and Millennials
Single-detached luxury homes sales in the $3+ million range in Toronto and Vancouver drop by 44% and 45%

Sales of single-detached homes priced $1-2 million have declined in Toronto and Vancouver, down 35 per cent year-over according to the 2018 RE...

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TIPS FOR TAKING GREAT LISTING PHOTOS

Posted on Oct 25, 2018

The National Association of Realtors conducted some research that solidifies what we already know: most people these days shop for homes online. If the listing doesn’t appeal to prospective purchasers in their initial online tour, they won’t waste their time seeing it in person. They say a picture is worth a thousand words, so make sure you’re maki...

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  When to Call a Real Estate Agent

 

Posted on Oct 02, 2018


 
If you’re like most people, you go to see a doctor when you’re not feeling well or have a health concern. However, you may also visit your doctor for a check-up, or to ask questions about healthy living.

In fact, consulting your doctor for anything health-related is a smart idea. The same holds true when it comes to real estate. Many people only cal...

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SELF - EMPLOYED?

Posted on Sep 03, 2018

Many of us are self-employed and it can sometimes feel daunting and over whelming when wanting to borrow.  Lots of good tips and info in the following article and it is always best to seek out a mortgage broker to help you through the hoops - they will make the process easy and much less stressful;
If you’re among the 2.7 million Canadians who are se...

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BOOMERS!

Posted on Aug 09, 2018

As a Boomer myself I found this article really interesting - I think we fall in to the category of boomers renovating their existing property - we're in a pretty perfect spot.  Read on:Baby boomers are set to play a key role in Canada’s housing market as they plan to buy but consider their current markets un-affordable.
Royal le Page says that 1.4 mi...

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