Here in the Nation’s capital, we are seeing interesting effects of the sellers’ market on home sales. For the first time in a long time, we are experiencing more buyers looking for their new home than we have listings. Buyers are competing in a market that is lacking resale homes and some of Ottawa’s hottest neighbourhoods are seeing homes sales at record prices. In a market like this, using an experienced real estate agent who has shown previous success in bidding war situations will surely make a stressful situation easier for you.
What does a bidding war mean for a seller
With two huge demographics competing for the same price point in homes, baby boomers and millennials are giving some sellers really great opportunities to sell their home for over asking price. If your home sale happens to come to a competitive offer situation, you’ll want to be prepared so you can keep the stress down and leverage multiple offers to get the highest selling price for your home.
If you’re selling your Ottawa home any time soon, be prepared for a shorter time on the market. This may mean being ready to move sooner than you anticipated. If you plan to buy a new home to live in after you sell, consider getting pre-approved and having all your financing in place. This means knowing what equity you have in your current home and knowing what price you can afford in your new home. There are pros and cons of buying a new home before you sell your current home, but a good agent will help you thrive in any situation.
Since multiple offers on your home will mean multiple people putting their best offer forward, you will not only be able to choose the best price for you, you’ll be able to choose which offer has conditions that are most favourable for you. A good agent will help you sort through the offers and help you clearly understand the implications of any possible conditions being presented. You may even have an offer come in with no conditions attached to it, and that may be your most ideal option.
What does a bidding war mean for a buyer
In the situation where you’re competing against other potential buyers for a house to call your home, you want to stay focused and make decisions that will not lead you to ending up with an overpriced home and buyer’s remorse. Rather than focusing on what others might be offering, it’s important to first figure out what this home is worth to you and how much you are willing to pay for it. For a good idea on what you are able to afford and if you’re bidding within your means, use a Mortgage Calculator and an experienced agent.
Getting pre-approved is not a mandatory step in looking for your dream home, but it can surely help if you find yourself in the midst of a bidding war. A pre-approval reassures the seller that you’re a serious buyer and gives you a clear understanding of what you can afford. Most financial institutes provide this as a free service and it does not obligate you to take the mortgage in any way.
An experienced agent will have access to sales data and a ton of insight into the neighbourhood you’re shopping in and what the home is truly worth. This type of support is so important in a bidding war because it helps you prepare for an offer in the most logical way. An agent will also help you decide on what, if any, conditions you attach to your offer. The fewer conditions you have, the more attractive your offer becomes, but you must keep in mind that conditions are designed to protect you as a buyer and waiving them has implications. Your agent will be by your side keeping your best interest as the highest priority during any competitive offer situation.
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If you are seeking advice on selling a home in the Ottawa area, or have more questions for us, we are happy to provide you with helpful guidance and support. Email us at info@buyandsellottawa.ca or call us at 613-590-3036.