Is it possible to see success in the bidding war?

If you are planning to invest in the Canada real estate market, you have to be aware of the latest market prices and trends. Also, have a clear knowledge of the bidding wars in real estate. The sellers get multiple offers when they begin to list their property. When you view from the buyer’s point of view, a bidding war may look like a frustrating and mind breaking experience. If you are serious about winning, it totally depends upon your goals. You may have to pay a high amount to purchase the house. Let us discuss the factors involved in bidding wars as a full list here.

What results in the bidding war on the house? Some of the factors that result in these circumstances are as follows:
If the market situation is favourable to the home seller, the demand would be high, and inventory remains down. Just with limited listings, the listing agent and seller would fix a deadline to the offer where interested buyers have to submit their proposal. The seller would evaluate the offers and accept one from several offers and give an option to resubmit an improved offer. But the buyers would not get the second opportunity to make the offer.

Strategies to win the bidding war:
Identify your budget:
While purchasing a house, you have to know how much you are willing to spend to purchase the house. Obtaining the loan pre approval offers valuable insight. It also guarantees the loan interest rate for about 120 days. If you are prepared to make the offer in spite of your excitement to gain the war, perform your due diligence. Share your ideas with your lender and ask for approval before making a strong offer. It gives you ‘new’ confidence, where you can also show the seller your keen interest in obtaining the property.

Reduce the offer conditions:
In the present seller’s market, it is best to have few conditions in the offer as it will help in your favor. For example, convenience in the closing date or additions would help in turning the seller towards your side. In most cases, a clean war will easily win. It is recommended to make an offer after a thorough and satisfying home inspection. Though there are some problems in the house, it would not help much during negotiation. You have to think about whether it is worth purchasing with the issues and rectifying your own expenses. If the house has expensive repairs, you can request the seller to repair and deliver before handing over to you.
Location is an important factor while determining the value of your house. Premium and top neighbourhoods are always expensive due to the features, amenities, shopping, transit routes, green space, services and several other factors. The selling price would be high due to the factors that are attracting people towards the locality.

If you wish to win the bid, you should try to avoid it completely. Share your offer during the open house or before the home reaches the MLS system.

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