Buyers, Don’t Get Burned!
Global news recently did an article about the sky-rocketing seller’s market here in the city of Ottawa. In this article they posit that “the nation’s capital is in the midst of a real estate frenzy … that is unlikely to fizzle anytime soon”.
A recent CBC report noted a modest detached house in Little Italy going for “a whopping $195,000 over asking in April”.
This is great news for some sellers, who are seeing their homes fought over in multiple competing offers … but it can create stress, frustration, and overall emotional turmoil for buyers just looking at a shot to get into their “forever homes”.
In light of the times we find ourselves in, here are our top 3 tips to remember when you find yourself competing in an overly competitive market.
YOUR DOWNPAYMENT MATTERS
Just this past month our buyer’s agent, Sarah Cameron, found herself competing in many multiple offers. Turns out, time and again, we would see that the offer with the highest down payment would win the deal when offers were close.
This often surprises clients, but the fact of the matter is that a larger down payment shows that you are in a position of power. You have the funds available and are serious about this investment – and it is more likely that the deal will not fall apart over minor repair issues.
KNOW YOUR GOALS
Know what it is you’re looking for.
Working with an accredited real estate agent can help you focus your search. A great realtor will know the right questions to ask to learn what it really is you want and need in your new home.
Don’t get caught-up in the emotion of the hunt. (We know, easier said than done!) The right property is going to come along – and when it does, you’ll be qualified and prepared to seize that opportunity
TRUST YOUR GUT!
Never push yourself past your comfort limit. It’s all fine and well to win the offer – but if you can’t finance it or force yourself to live paycheque-to-paycheque, it’s really no life at all.
The number you offer should be one where you wouldn’t lose any sleep, whether you win or lose.
When in doubt over that $5,000 – $10,000 increase take time to look at the numbers. Use a mortgage calculator. Often the long-term difference can be as small as a mere $12 per payment.
Are you willing to lose your dream home over $12?
Deep Breaths. You’ve got this.
We are here to help!
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