For much of this year, inventory in the Calgary real estate market has been quite low. Homes are selling quickly, and often, buyers have struggled to find the right home among a limited supply of listings. Fortunately, listings increased over the summer, and we have entered a much more balanced market. In a high demand market like Calgary, bidding wars have become a very common occurrence. Home buyers recognize great value when they see it, and they are willing to pay top dollar. If you are planning on making a move this year, there are few helpful things to keep in mind if you find yourself competing for a property.
Unlike an auction, you have no way of knowing how much the other buyers are offering and what kind of terms they are requesting from the sellers. Most homes in multiple offers sell for at least full asking price, while others may sell for tens of thousands of dollars more. Don’t allow yourself to get carried away by the competition. Review recent sales in the nieghbourhood with your REALTOR® to make an educated decision about what the home is really worth in its current condition. Offering to pay much more than it’s worth might land you in a tough financing situation if the bank who is providing the mortgage doesn’t feel the same way about the value.
Although the purchase price is the first thing that sellers look at, there are several other important terms at play. Your preferred closing date, conditions, and deposit amount may also make your offer look more favorable to the sellers. If you are able to offer a flexible closing date, be sure to advise your agent. Closing the deal at the seller’s convenience could save them hundreds of dollars in interest payments and accommodation expenses, and could potentially save you money off the purchase price.
Don’t forget, it’s never too early to start your financing process with your mortgage professional. Prior to searching for a home, get your mortgage approval in order and start collecting your supporting documents. If you need to put a financing condition on your offer, your mortgage professional will have a head start, and they will have the ability to complete it a few days sooner.
Don’t be intimidated by a bidding war. Once you have your financing established and are ready to make a confident offer on the right home, you should have no problem coming out on top. Making an educated decision at the bargaining table will help you make a purchase that you can feel good about.
Do you need to move to celebrate the changes that are happening in your life? Let me serve you in helping you make the move to the place or home that reflects where you are in life’s journey! I will listen to your needs and use my knowledge and expertise to make this a smooth transition to the right place for you to call home in Calgary. Contact me at 403-708-5873, firstname.lastname@example.org, or www.allisonjames.com and let’s get on with your journey!
Allison James has been a realtor® since 1999 with Century 21 Bamber Realty Ltd. in the changing Calgary real estate market. A Century 21 Centurion Award 2007 recipient and a member of CREA and AREA, she specializes in residential real estate and has her designations as a Seniors Real Estate Specialist and a Certified Condominium Specialist. These designations testify that she has the expertise and resources to help her clients make a smooth transition to the next step in their life journey. She enjoys helping her clients as they move through many of the same stages of life that she, too, has experienced. The fact that the majority of her business comes from past clients and/or referrals from satisfied clients speaks volumes about her dedication to the high quality of service that she offers her clients to meet their Calgary and surrounding area real estate needs. She is a mother of four who are all on their own now, and a grandmother of eight. Besides helping people buy or sell real estate, she loves spending time with her family, being active outdoors, traveling and meeting new people, photography, playing the drums, reading, scuba diving, listening to music, learning new things, and nurturing her spiritual growth.