Have you ever read something like this and felt a surge of excitement? “Fully renovated single detached home in prime location – walk to everything – move right in”.  It’s the home of your dreams! But then you read the dreaded line “Accepting offers Monday @ 6PM”.

In certain desirable urban neighbourhoods of Ottawa, multiple offer situations have become all too common.  If you are looking to move into one of these popular areas, be prepared for multiple offers by having a plan of action to avoid feeling rushed when making this big financial decision.

Here are a few tips that will increase your chances of being successful in an auction:

1. HIRE A PROFESSIONAL REALTOR.  You need someone experienced on your side who will guide you through the complicated situation.  Many properties are priced below market value to encourage a bidding war.  A knowledgeable agent will know the real market value of a property and therefore guide you when deciding on an offer price.
2. Meet with your bank or financial institution.  Get pre-approved based on the price of the home and all significant expenses such as property taxes, heat/hydro, condo fees if applicable.
3. Conduct a home inspection before submitting an offer.  This tactic can be risky, and it can also get expensive if you are not successful in winning the home.  There are big advantages to doing this however, and if you are serious about the house, doing this will send a clear message to the sellers when you submit an offer without conditions. As well, the inspection may reveal problems with the house that could be expensive to fix and you can either decide to walk away from the property, or consider this when coming up with an offer price.
4. Do not participate in fax offers – always insist on attending with your agent in person.
5. Be flexible on closing/possession date.  Accomodating the sellers can make a big difference.  If you really want the home, give them what they want.
6. Provide a significant deposit that shows you are serious.  Typically, deposits range from 1 – 2.5% of the purchase price.  Providing a deposit of 5 – 10% can be an advantage.
7. Include a personalized note with the offer explaining why you would like to buy the home.  Home buying and selling is emotional and sellers often care to know who will be living in their house and taking care of it.  Sometimes a little personal touch can make all the difference.
8. Submit your offer/bid late in the day.  This gives the sellers and their agents less time to generate offers from other buyers.
9. Offer to close the deal as soon as possible.  A quick possession means the sellers get their cash sooner.
10. Know your limit and do not get carried away.  It is better to walk away from a home than to drastically over pay.

Consider these tips when entering into a multiple offer situation.  I have had the opportunity to compete in several multiple offers on behalf of clients in the last few years and I’ve had excellent success.  Multiple offers are tricky and stressful, but a well-executed plan will increase your chances of getting the home you want.

Now it’s your turn.

If you have been in a multiple offer situation yourself, please share your story here. Other buyers are sure to benefit from your experience.

If you have any questions or would like further explanation about the multiple offer process please contact me at steve@stevewalsh.ca