Like any good agent, I did my research. Pulled up all the comparable sales, recent sales, neighbourhood sales and lot sales. I also looked at what a place like this would rent for incase that for some reason, I couldn't afford to live here on my own or needed to move before my mortgage term was up to avoid any penalties. It more than covered my estimated mortgage payment. It didn't add up. THIS WAS A STEAL! Why was this still on the market? Sure, it smelt like teenage boys and looked a bit overwhelming at first glance but SURELY I wasn't the only one to see the potential here.I had to ask the agent. Of course. Just my luck. There were currently two registered offers. Pressure was on and I was third in line :( . If I was going to make a run at this, NOW was the time. So I did.
After looking at my comps, I decided the home was well worth the purchase price they were asking and if I was going to have any chance, I would have to at least offer that. In fact, I put myself in the shoes of the other two competitors and thought that if they were given the same info that I looked up, they would do the same. So I upped my game. I decided to offer $2200 over asking but demanded that the new stainless steal appliances stay ( The ONLY things that didn't require work in the whole house!). Short conditional period and quick closing were sure to be a positive influence on my offer as well.
*When dealing with multiple offers, all agents and buyers are made aware of the multiple bids. Everyone gets a chance to rework their original offers to make it a fair playing field. Once all the offers are in, the Sales Rep and Seller can review them together and get to choose which one they want to deal with OR reject all three and ask for everyone to try again until the Seller gets what he wants. The second option is a bit of a risky move as you can loose all three offers and the momemtum that was created. Bidding wars are every Sellers best scenario as it drives the price upwards.
Although my nerves were starting to get the best of me, I asked to present my offer to both the agent and seller later that day. If I couldn't get an idea of what my competitors were offering, I wanted to see first hand the reaction that my offer would initiate. I asked to present last. That way, if they looked happy or impressed, I would assume mine was the highest. If not, then the opposite would probably be true.
Driving to the meeting spot was the worst. I remember rehearsing my speech which was a mix of desperation and first time home buyer excitement. Surely, if they could see that I was a single young female BARELY able to afford her first house, they might take pitty on me and choose my offer over someone else that may be looking for a home to flip. Knowing the agent and seller were male, the high heels didn't hurt either I'm sure ;)
I got what I wanted. Smiles all around! Sure it wasn't certain but I knew I WAS IN THE RUNNIING! Now for the wait. Some people find this to be the worst part. I honestly think that at this point, it's out of my hands. There's nothing else I can do. So patience and a few phone calls to family got me through.
A mere 30 minutes later... Ring... RIIIING....( Actually my ring-tone is a guitar strum so it doesn't exactly ring) WWWAAAAHHHHOOOOOOO THE HOUSE IS MINE!!! (Conditional on home inspection, insurance approval and financing of course! After all, this IS Collingwood and it's currently a **Buyers Market)
Now the REAL work begins... and so does the drama!
Stay tuned for my next blog...
* For more info about Multiple Offers, Check out this Link :
**Definition of 'Buyer's Market'
A situation in which supply exceeds demand, giving purchasers an advantage over sellers in price negotiations. Buyer's Market is commonly used to describe real estate markets, but it applies to any type of market where there is more product available than there are people who want to buy it. The opposite of a buyer's market is a seller's: market a situation in which demand exceeds supply and owners have an advantage over buyers in price negotiations.