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Multiple Offers - What Buyers Need to Know!

Multiple Offers - What Buyers Need to Know!
Present market conditions in Calgary are causing many multiple offers coming in at the same time.
How do you handle this and purchase your property?
 
How can buyers win or lose out in multiple offers:
 
1) Cash is king! Cash buyers have a big advantage over mortgage buyers. 
So if you are up against a cash buyer who does not need finance condition, then the odds are not in your favour.
2) Mortgage Approval: Make sure you have your mortgage complete & approved by lender, before offer goes in.
3) Deposit: Make sure your deposit is ready & available. Sellers will not wait one week for deposit to arrive!
4) Conditions: such as finance/mortgage, inspection, condo document review. Very aggressive buyers will forgo these conditions. I am not suggesting that buyers do this.
But you have to understand why you can lose out in multiple bids.
5) Property price: If there are 5 multiple offers for example, the price becomes very competitive. 
The top buyer may go 10% or 15% above the list.
6) What is your price limit?
Think about making offers at your price limit? Does that make sense? 
Since you cannot compete above this amount.
If you have been approved for a house at $600,000 and this is your top limit. Look at houses for sale upto $580,000 or less.
7) Sold market data: Very important. Review sold market reports for the community & property style you are making an offer on. This will show how many properties are selling above list price with multiple offers! 
A good professional Realtor will give you this report so you can be informed.
8) Timing is everything so the buyer that "diddle daddles" and takes their time will lose out.
9) Documents: Make sure all your paperwork, ID photos/drivers licence etc is complete and given to your buyers Realtor ahead of time so the offer can be ready to go! Use Docusign for quick turn around for signing documents.
10) Market conditions: Buyers need to be educated on market conditions & you cannot always win on multiple offers. You have to move on and try again. Demand is higher than supply right now. It can be frustrating but persistence pays off. Choose a buyer's Realtor that works with you and makes you aware of market conditions.
 
 
 
Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.