Heated Competition in a Sellers’ Market

It is competitive times if you are trying to buy a home today.
Not only can Buyers no longer be choosy about their preferred location, terms and offer price…
they actually have to compete for the Seller’s attention!

How does a Buyer compete for the Seller’s attention you might ask? Consider these tips from our top Agents!

Many Buyers include a letter to the Seller with their submitted offer. We call this a PICK ME LETTER.
In it our clients explain who they are and why they love your home. This letter often includes pictures of the Buyer’s family – fido and all!

While letters are lovely, savvy Agents know that in order to truly foster successful negotiations it is important to know your audience. This is why we endeavour to find out what is preferred or important to the Seller.
Has the Seller already bought another home and needs a specific closing date?
Would they prefer the Buyer not displace the current lower suite Tenants?
Knowing the Sellers’ needs and wants, as well as determining if it is something that the Buyer can give, is a great place to start.

Some of our Buyer clients try to stand out of the crowd by providing Seller’s with certainty by submitting an unconditional offer. Most offers from Buyer’s have conditions or contingencies such as:
I will buy your home IF I get a Mortgage;
I will buy your home IF It approves a Home Inspection.
It is quite common to see offers from Buyer with 6-9 conditions as this is the time for the potential Buyer to do their due diligence.

Today’s Buyer however, is so desperate to stand out that they are willing to submit UNCONDITIONAL OFFERS to the Seller in order to get the Seller’s attention by providing certainty for the Seller.
What the Buyer is saying is don’t worry about anything…
I am good to go!

But unfortunately, THERE ARE THINGS TO WORRY ABOUT.

You won the bid but the house does not appraise out for what you paid and the bank wants you to make up the $75K?
You bought in March but are closing in June and a fire breaks out in our community and you are unable to secure fire insurance as it is insecurable more than 30 days in advance. Your lender or CMHC does not finance/insure in this condominium project or development and you did not know this and now cannot port your existing mortgage.

Our Agents help Buyers determine their risk tolerance and then strategize with our clients on ways that we can help them minimize it.

Other Buyers resort to getting the Sellers attention with the offer price alone.
The thinking is….money talks!
And it seems to be working as evidenced by the increase in the average sale price of homes.
This is when the right advice is crucial, so lean into your Agent about changing values.

Lastly, don’t get discouraged!
You have to be realistic and a little philosophical about it.
It might take several offers before you are able to secure a home. It is frustrating but to be expected and manageable.
It is important to manage your expectations and to not be devastated if you make an offer and are unsuccessful.

Remember, you cannot get asked to dance if you are not at the party!
So don’t give up!
Get back out there!

Choose wisely. Choose RE/MAX.

Deborah Moore
Broker Owner
Mother of Dragons
RE/MAX Orchard Country – Summerland
RE/MAX Penticton Realty – Downtown & Skaha Lake Road
RE/MAX Realty Solutions – Osoyoos

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