It today's fast paced, Sellers market it can often be quite difficult, frustrating and nerve wracking for buyers competing in multiple offers situations when buying a home in today’s hot Vancouver real estate market. Here are some helpful tips that I use to help make the process easier for our clients and increase their odds of winning by 90%, and if they don't win the home my clients still walk away with peace of mind knowing that this wasn't meant to be and their perfect home is still out there.
The three major components that Sellers look for when comparing offers is price, dates and subjects and believe it or not price is not always the deciding factor. We are seeing offers that have a higher price being beat out by offers that have little or no subjects. So let's start there. Of course the strongest offers are subject free, all cash and have a great price. So what can you do to feel comfortable to buy a home subject free? Get all the information you need ahead of time. Have your Realtor ask for the title search, PDS, have a pre-inspection or if possible a full inspection including oil tank survey before offer presentation. Make sure that you have notified your bank and have a letter from them confirming that your financing is in place to write a subject free offer. You can also write a personal letter to the seller letting them know about your family and the “big why" you have chosen their home to be yours. Include a few family pictures and pets photos. We want you to connect with the Seller’s emotions and remind them this is a human interaction. Often times, especially if a seller has lived in their home for a long time, sellers are sensitive to this as they have created many wonderful memories in their home and they will probably want to make sure that their home goes to someone who appreciates it. Also, this is very important... Always, always have your Realtor present your offer in person if allowed. I have won many multiple offers for my clients just by the fact that I was there in person to deliver all the information about my buyers to the sellers. The sellers really got a sense of who my clients are and their "big why" was delivered properly.
Price, now this is a very important issue when it comes to multiple offers. I often have clients that ask me, what should we offer? When it comes to multiple offers, normal comparables are usually thrown out the window. Most buyers are afraid of over paying but we can't control what other buyers will pay for a home in a multiple offer situation and sometimes you will see a buyer pay an overly generous amount depending on how much they want or need the home. Here is how I handle price with my clients in the current hot Vancouver real estate market. If a home is priced at $850,000, I will ask my clients if they find out that the home was sold for $875,000, how would they feel? If they tell me that they would be disappointed, then I say we start there. If I ask how would they feel if they found out the home sold for $890,000 and they still hum and haw, then we start there. If I tell them the home sold for $910,000 and they tell me, I don't care the other buyer can have it, I would never pay a penny over $905,000 then we know $905,000 is their best price! That way if the home does sell for more, my clients are emotionally prepared to walk away without regrets. They may still be disappointed, but will not be devastated if it doesn't work out. We know that new listings will be coming on the market and there is probably an even a better home meant for them out there!
From my experience if a multiple offer situation hasn't worked out for my clients, using this system, they realize that the next house may turn out to be the perfect one for them! It goes back to the old saying, everything happens for a reason and it truly does. When something is meant to be yours, no matter what, it will be.
If you have any questions regarding this or any real estate topic, please do not hesitate to contact me. I look forward to hearing from you!