COMPETING OFFERS

In the current "hot" market of real estate sales, buyers may find themselves in a competing offer situation that brings with it an added layer of stress. We are seeing a surge in multiple offer situations where buyers may feel compelled to out bid others. The purchase of a residence is most often an emotional decision based on wants as much as needs. Finding the perfect house is the realization of dreams. Preparation for the "offer" is critical.  When a multiple offer situation occurs, the real estate professional must keep the details of other offers confidential but is required to advise the 'buyers" of the number of offers made. To protect consumers from "invisible" offers driving up the price, the Ontario Government now requires that all offers are duly recorded and signed in writing, as of July 1, 2015. The seller's broker is required to keep a record of all offers. Buyers are encouraged to keep in mind that a real estate professional and a mortgage financing professional may be excellent resources when determining whether to participate in a multiple offer situation. Approved financing and a home inspection are two conditions that ideally are not waived in an offer situation. It is prudent to factor in the inflated cost of a higher mortgage and the cost of home repairs that a home inspector would have identified. Buying your dream home can be accomplished with less stress if preparation identifies key details regarding both the immediate as well as long term costs of owning a particular home.

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