It seems these days everyone knows someone who has lost out on a home, got outbid, or didn’t act quickly enough. When the market is this active, how do you secure the home you want? Here are a few tips:
Universal Tips
Get pre-approved
Knowing your budget is critical so it’s important to get pre-approved and arrange your finances ahead of time. Talk to your bank or a mortgage broker and work with them to understand deposit, monthly payments and just how much you can afford.
Use a realtor
Find a realtor who specializes in the kind of home purchase you’re looking for whether presale or resale. In presale they can assist you in getting information as soon as it is available so that you can narrow down your search and get in early to purchase. In resale they may have a successful track record in multiple offer situations. Their relationships and ability to navigate the waters could be the difference between getting that home or not.
Act quickly
In a busy market there is no time to waste. Act quickly and make a strong offer. You don’t want to lose out simply because someone beat you to the punch.
Presale Tips
The key to presale in an active market is to show the sale teams that you’re serious about buying. First, register online for the project. Fill out all the information on the registration form including email and phone number to allow the sales representatives to contact you. Many people think they have time to react but if you don’t let the sales representative know exactly what you’re looking for and your budget they won’t be able to help you. The benefit of buying presale is that unlike resale, you won’t be caught in a multiple offer situation so once you narrow down your search, you can select your home and write your offer confident it is yours!
Resale Tips
If you have to compete against multiple offers, you need to put your best offer on paper the first time. With mortgage pre-approval you should know exactly the highest amount you are able to pay. The best offers are also subject-free: with preapproval you shouldn’t need a financing subject; for peace of mind to remove the inspection subject, consider bringing your home inspector with you to the open house. Being flexible with closing dates can also give you an advantage. If the sellers can move out when it suits them best, that might be enough to tip the scales in favour of your offer.
