The Downtown Toronto Housing Market is HOT at this time. There are not enough freehold homes for the number of home buyers who want to live downtown near their work. Homes are constantly sold within a couple of days or even hours of being listed! These recently listed homes are frequently recieving muliple offers, which is great for sellers. Having multiple offers is not fantastic news for purchasers. It is important for a buyer that is getting in a multiple offer situation to work with an experienced local agent that understands the local market. Missing out on a house could be sad and disappointing for a home buyer. Find out what they do to help their buyers win in multiple offer situations!
There is a real distinction between preapproval and prequalification! Understanding the difference is important.
A prequalification is the point at which a mortgage broker takes a look at a home buyer’s general financial background focused around what the buyer lets them know. They will look at the buyers credit score to verify their financial ability suits the the current home loan rules and amount. The mortgage broker will then issue a “Prequalification” letter, subject to verification of this information for the home loan. Shockingly, every so often a prequalification letter is issued to a potential buyer without confirming the data gave by that purchaser. It can happen that they are declined once the financial data they gave is checked.
A preapproval is a more comprehensive financial check and much more desirable when buying a home. Getting a preapproval involves the mortgage broker to pull your credit report, gathering bank statements, pay stubs, and Income Tax Forms. Verifying employment status. Most preapprovals are treated like a mortgage commitment and are only subject to a property appraisal for final approval.
In multiple offers, being preapproved will give you an advantage over other similar offers because you can put in a offer without a financing condition.
Work with the Sellers
Understanding what the sellers arrangements are is critical in a multiple offer situation. A good Realtor will find out what the sellers plan is for their home sale. The purchase offer might be constructed in a manner that is all the more attractive to a seller. Do they need a speedy closing? Do they need to retain possession and lease back? These small things could be important to the seller and can make your offer more attractive.
Have Fewer Conditions In Your Offer
A buyer has the choice to make an offer conditional upon a few things such as mortgage, home inspection, being able to sell their home first, etc. In a multiple offer situation these conditions will affect the attractiveness of the offer. While its not suggested as a rule to waive the home examination condition, waiving a home inspection is very attractive for a seller. The reason for a home inspection is to guarantee a homes current state is safe for the buyer. It is uncommon for a home inspector to uncover new safety concerns costing tens of thousands in repairs. By waiving a home inspection, the seller is not liable for any repairs that would be asked for after an inspection of their home. In many cases, sellers may not even know about these safety issues in their home.
Make a Large Down Payment
A large downpayment shows the seller the buyer is very serious about buying the home. It indicates the financial strength of the buyer. And shows the seller the buyer is more likely to complete the sale.
Make Your Best Offer
In a multiple offer situation it is sad and disappointing to a buyer when they hope to win yet low ball the offer. The home buyer needs to know, they will have one chance on that home. A seller will look at all the offers and usually pick the one of them to “work with.”
These 5 tips can all have an effect on whether a buyer has their offer accepted when there are multiple offers. It is expected that there will be failures in the multiple offer process. The most important tip which is not discussed above, is that a buyer has an excellent real estate agent working for them. Someone who will put their client’s best interest first.