Did you find the perfect house and are ready to buy it? Great! Finally, you’ve found your dream home. What next? You’ve guessed it right. Make a winning offer. No matter you’re buying a house for sale in Bronte Creek or Westmount; it is your first purchase or the tenth one. Making an offer on a property can be a daunting task, especially when the real estate market is competitive. After all, your offer can make or break the deal. You can’t simply throw out some random number and hope it will get accepted. So, what should be done?
When the demand is high and inventory is low, you need a smart strategy to make your purchase offer stand out and impress the seller. Here’s how you can make a winning offer on your dream house.
Tips to Make a Winning Offer on Your Dream House
Make a Strong Offer First
The first offer you make plays a crucial role as it shows a seller whether you’re a serious buyer or not. If you’re sure that this house is ‘the one’, then don’t hesitate to make your best offer first. But don’t be too generous or else you’ll end up paying a lot more money than the property’s value. That said, try to submit the first bid as it will help you stand out in the seller’s mind. Many buyers make the mistake of underbidding with the expectation that there will be enough room for negotiation. However, when the seller has multiple offers on the table, a low offer price can be risky. The best bet is to submit a stellar offer and set an expiration date for your offer to push things forward.
Get Your Pre-Approval Ready
A pre-approval letter from a lender is an official approval for the amount of money you can borrow for a mortgage. In a seller’s market, when there are several buyers looking for the opportunity to buy a good property, having a pre-approval letter can help you get an edge in the competition. You can show the document to the seller, thus making it clear that you’re a qualified buyer, you have the intention and money to buy the house.
Present a High Down Payment
If you’re set on making a winning offer, you have to give something enticing to the seller that other buyers are unlikely to give. A great way to signal to sellers that you’re ready and able to commit to seeing the home purchase through to the end is to offer a higher down payment than the standard.
“Generally, down payments range from 3-20% depending on the real estate market. But in a seller’s market, higher down payments are often considered to have more success”, says Antonet Murray, a renowned real estate agent with several years of extensive experience of dealing in houses for sale in Bronte Creek, Oakville.
However, that doesn’t mean you offer a significantly higher amount and suffer a loss. Sometimes, even raising your down payment a few thousand dollars can make a difference between getting a property and losing out on it.
Pro Tip: Consider the home’s price, location, demand and what other buyers are offering before finalizing the down payment. It is advisable to talk to your real estate agent regarding this. He/she will be able to guide you in quoting a competitive down payment that has more chances of getting accepted without losing much from your pocket.
Communicate with the Seller
It is a good idea to communicate with the seller and talk about what they’re expecting out of the sale. Ask them if they have a specific number in mind or a preferred settlement date to show the seller that you’re interested in the house and considering the seller’s benefit as well when closing the deal.
Waive Your Contingencies
Waiving your contingencies (certain things that must be met so as to close the deal) can be used to give that extra push to purchase your dream house. You can either waive your inspection contingencies or financial contingencies. For those who are not familiar with these terms, inspection contingencies is an agreement that you will only buy the house if there are no issues found in the property during the home inspection whereas financial contingencies are an agreement that you will only buy the house if you get a loan from the bank. Waiving these contingencies can show the seller how much you’re looking forward to the deal. However, at Wedlake, a group of experienced real estate agents in Oakville, we suggest you carefully examine your financial situation and risk tolerance before waiving the contingencies. It is a risky strategy because there is a chance of things not going as planned. You might end up leaving no room for renegotiation of terms and price.
Make a Personal Connection
To make your offer stand out, you should make efforts to be the most significant buyer for the seller. The best bet is to make a personal connection with the existing owner of the property. Writing a thoughtful note or a heartfelt letter to let them know that you understand their pain of leaving their home and moving on will surely go a long way. Also, sharing your thoughts on how much you liked their house or complimenting the specific features of their home is a great idea. This personal touch from your end will help in making the sellers realize that their home will be in good hands if they close the deal with you.
Making a strong offer on your dream home is not as easy as it might seem. In a competitive market where the seller has multiple offers on the table, your offer should be noticeable to get your desired property. We hope the above-mentioned strategies will help you make a mark in the bidding war and make a winning offer the buyer won’t reject. If you want to learn more smart tips to write a clear purchase offer, get in touch with expert real estate agents of Wedlake Team who have experience of dealing with houses for sale in Bronte Creek, Glen Abbey and other neighbourhoods of Oakville.