I'm often asked, 'How do we stand a chance at having our offer considered if it's a sellers market?' Here are a few helpful hints!
First of all, you must be 100% ready to buy! There is absolutely no point in lining up in the first few days to see a house if you cannot write a competitive offer. A competitive offer is NOT conditional on your house selling. If you need to sell your house in order to buy, you need to get it on the market and get it sold. Worried about being homeless? I’ve yet to have anyone live on my basement.
Ready to buy? Mortgage broker has given you the green light to go shopping? Then make sure ALL your documentation is with your mortgage broker- pay stubs, confirmation of where the down payment has come from, letters from employers, confirmation that loans have been paid off etc. Many mortgages can be approved in 24-48 hours- it’s the conditions that usually involved your documentation that delay approval.
Ready to buy AND have the green light? Also make sure you have access to the money you will be using for your initial deposit. Does it need to come out of your RRSP, investments or come from a relative? Sellers will consider this when making their decision. Once in order it's a quick trip to the bank for a draft and then you're good to go!
So now you're ready to buy, have the green light and have the initial $$ in order? Having these few items in order will allow you to put your best foot forward and experience the least amount of disappointment knowing you were prepared!
And if you don’t get the house you really wanted- there will be others. I have yet to have anyone say, “I wish our offer had been accepted that other house was so much better than the one we ended up buying”.