So what can you do to make your client’s offer the one? Here are some tips for crafting the winning bid.
1 – Give ‘em what they want
If a seller is asking $550,000 for a house in Toronto, there’s no point in making an offer under that (provided that amount is appropriate, based on the research that you’ve undoubtedly done). Houses in big cities like Toronto and Vancouver are already hard to come by so there will likely be another offer that’s higher than the asking price.
2 – Increase the deposit
If your client can afford it, encourage him or her to put a substantial amount – say, 10 per cent or more – in earnest money. That proves to the sellers that your client is serious about purchasing the home. If your client is apprehensive about offering more cash up front, that could be a sign that he or she is unsure of the home. Either way, remind your client that this deposit will go toward his or her down payment, so it won’t cost them more in the long run.
3 – Keep your client’s eye on the prize
Sure, it would be great to keep the patio furniture, but that condition could complicate your offer, especially if there are similar offers on the table. Get your client to think about what’s really important: the house. After all, your client spending a few hundred dollars on brand new patio furniture is better than losing the home of his or her dreams.
4 – Listen to the sellers
Reach out to the selling agent before it comes time to make an offer and find out what’s important to his or her clients. Do they need a longer escrow period? Maybe they wanted to take the kitchen appliances with them. Knowing the details of what the sellers want will help you and your clients craft an offer that is as enticing as possible.
Do you have any tips for crafting a winning bid? Share them in the forum!
As agents brace themselves for another year of low inventories and an increasing number of desperate buyers, it’s quite likely that multiple offers are going to be commonplace in Canada’s major cities – again.