Competing Offers and what you need to know to win!

Competing Offers:  What You Need to Know for a Winning Outcome

Competing offers occur in every market, but none more frequent than in a seller’s market.  If you are buying or selling the following should help.

Competing offers dictate a shorter and faster time-line.  Time and Information are of the essence.

What you should know if you are a Buyer:

In most instances, price is the final decision maker. Despite of a well drafted offer, another competing offer may come at a higher price and money talks.  However, a well prepared offer, if similar in price and terms, can put you in the driver’s seat.

  • Know when offers are being presented and where.
  • Know how many offers you are potentially competing against. 
  • Keep a short irrevocable – If your Realtor is presenting offers at 8:00 p.m. give the seller until 9:00 or 9:30 p.m. to accept.  This way they have little chance of negotiating another offer while yours is in play.
  • Be on immediate standby with your Realtor in case a change is required to the offer.  (Best to be outside, while your offer is being presented by your Realtor).
  • During the offer presentation, have your Realtor tell the seller a little bit about you ( a hand written letter on why you like the house is also a nice touch).
  • Get a signed statement from the listing Realtor and the seller identifying the # of offers being presented.
  • If you are pre-qualified obtain the lender’s approval in writing.  This can promote and help seller confidence in selecting the final offer.
  • Understand that terms and conditions are always a factor in selling a home.  The fewer conditions in an offer, the more favourable your offer.
  • Have your Realtor ask about the Seller’s ideal closing date and make sure you give it to them.
  • Get a copy of the SPIS/survey/etc., from the seller before presention of your offer (this adds buyer’s confidence and also reduces wording in the offer).
  • Minimize inclusions and stay with what is offered, i.e., resist the urge to ask for more inclusions than what is offered on the listening agreement.
  • Consider investing in a pre-building inspection so this condition is not in your offer; or if you must have it, pre-book a building inspection and during your offer presentation let the seller know you have a inspector on stand-by and can do it on a specific date..
  • REMEMBER, market value is determined by what a buyer is willing to pay and what a seller is willing to accept.
  • Avoid dealing in round numbers.  Add $100 or any other number to the price.  This way if two offers are almost identical, it may tilt a decision in your favour.
  • Give as large a deposit as possible: $5,000, $7,500 even $10,000.  This shows you are commitment and  have financial resources to complete the transaction.  
  • Include the deposit cheque with the offer or clearly state that a certified deposit cheque will be presented upon acceptance of the offer.
  • Offer numbers that you will say, ‘I wouldn't pay a penny more’.  This way if you do loose the property you won’t say, ‘I would have paid that’.

 

If you are the Seller:

  • Share with everyone the same information that you have already agreed to in writing (your Realtor will coach you).
  • Know that the buyer's agent may request presenting the offer on their buyer's behalf (ask your Realtor what you should say or not say).
  • Take the time to discuss all the offers with your Realtor and ask for positive and negative points of each offer.
  • Get as many details as possible about the buyer from the Realtor bringing you the offer (i.e., is the buyer pre-qualified?  Do they have a house to sell?)

Of course, if you are buying or selling and working with me Peter Sardelis, I will make sure you have enough information to make good, sound decisions.

There are no comments

Thank you! Your comment has been submitted and is awaiting approval.

Peter Sardelis

Peter Sardelis

Broker
CENTURY 21 Capital Realty Inc., Brokerage*
Contact Me

Tags