Bidding Wars: 5 Tips for Handling Real Estate competition
Written by: Lorena Magallanes
Posted on: November 28, 2012
We all imagine that when we find our dream home, the doors will open wide and welcome us in. This place was made for you, right? But in a competitive housing market like Toronto, it’s likely you won’t be the only one who’s begun mentally changing the wallpaper and updating the kitchen. The list price and the actual selling price can differ substantially depending on how much demand there is for any given property.
It’s best to be prepared for a bidding war, so if competition does arise, you won’t lose the home based on something that could have been avoided. Here are 5 tips to help you handle a little real estate competition:
- Your agent will help you assess the competition and anticipate what kind of offers may be presented. Your agent should also be realistic with you to keep you aware of when chances are slim you’ll win the war.
- Ensure all home financing has been approved. Sellers are looking for the highest price, but this is something that may raise a flag.
- To sweeten your offer and make it more appealing, ensure the property title is complete and have a home inspection completed in advance if possible. This way, there are fewer subjects in your offer.
- Decide on your bottom line price. Think about how much you love the home and how many of the criteria on your list it addresses.
- Write it down. If it isn’t in your written contract with the seller, consider it non-existent. Oral agreements just don’t do it these days.