As a continuation of our last blog, we look at multiple offers and some simple things you can do to increase your chances of success. Let’s jump back in!
Present your offer in person
I cannot stress this enough: in multiple offers, if your agent isn’t presenting your offer in person, face to face with the sellers and their agent, then your agent may not be doing everything they can to maximize your chance of winning.
There are definitely instances where in person presentations are not welcomed by the agent or the seller, and you can still win a multiple offer night even if your agent doesn’t go in the flesh. However, being there in person provides your agent with a ton of information they can use to help you succeed. It also instils the seller’s confidence in you and your agent, and it’s their confidence you’re after.
If you are able to be there too, even better. You won’t be allowed in the presentation room, but if you set up at a restaurant or a cafe around the corner, you might just be amazed at how much more proactive you can be and how much better the night goes.
Remove your conditions (if you’re able to do so)
For the record, (and for the sake of our lawyer who may be reading this, hi Frank!) it is imperative that we tell you that you should never remove your conditions in an offer to purchase unless you’ve had an in depth conversation with your agent and your mortgage advisor and have been given the OK to do so. You MUST be fully informed about the risks and the possible outcomes involved in removing the conditions before you even consider it as an option.
If you are able to strike out those conditions, you’ll be in a much better position to compete. The three most prevalent offer conditions are;
- Home Inspection
- Status Certificate Review
Speak with your agent to ensure you understand what each condition means, and which conditions are relative to your purchase. There may be additional conditions that apply to your situation. Then discuss whether or not you’re able to remove them. In the event that your advisors tell you that you should not remove your conditions, then you will need to discuss your strategy moving forward as being able to win in multiples depends heavily on whether or not you’re able to make a clean offer.
Bring your certified deposit cheque to the offer presentation
An easy way to ramp up your chances of winning is to have your agent bring your deposit cheque to the offer presentation.
Occasionally, an over eager buyer will win on offer night with the highest price, only to ghost the next day and fail to deliver their deposit cheque. This is NOT recommended, as there can be legal repercussions of pulling a stunt like that. The fact is, it happens, and it can create a huge mess for everyone involved. Knowing this, your agent can instil confidence in your offer by showing the seller, “Hey, we have our cheque in hand. If we win tonight, this deal is done and there is no chance you’ll be left hanging tomorrow.”
It’s amazing what your agent may be able to accomplish if they’ve got the cheque in hand.
Know your limits but be prepared to be flexible
“How much do you think it’ll sell for?” is a question we are asked before virtually every multiple offer night. The fact is, there’s market value, and then there’s multiple offer night market value. An in depth market analysis can provide you with a close estimate of the market value of the home, but that can sometimes fly out the window if the offers are from buyers that are determined to win at all costs (literally). Your agent must be communicative with the listing agent, they need to gain as much insight into the mind of the seller as possible. As the presentations unfold, things change quickly, and really almost anything can happen. You need to have an established max in the back of your mind, but you also need to remain flexible should an opportunity present itself.
If your max is $975,000, but an offer of $980,000 can take it, it might be worth making that jump. Ultimately, that’s entirely your call to make, but your agent should know the market better than you, and their advice is going to be integral to your success.
Last but not least: don’t listen to the mainstream media
Headlines are designed to grab your attention. The narrative of an unaffordable Toronto is just too juicy to resist and the big media outlets know that. Is affordability an issue for a lot of people? Yes. Is Toronto excessively expensive everywhere you look? Not necessarily. Is there still money to be made in real estate? Absolutely.
You have to overcome a lot as a hopeful home buyer in Toronto these days. Interestingly enough, the majority of what you need to overcome may just be your own self limiting beliefs about where you can be in 5 years from now if you take that first step today. Get empowered, call your mortgage broker, call your agent, take action today. As expensive as property is right now, it’s only going to get more expensive tomorrow and the more time you spend buying into the hopeless hype, the more money you’re going to have to spend to prove it wrong.
The intangible uppercut
These are just some of the ways you can strengthen your multiple offer strategy. Of course, there are many other small things your agent can and should be doing to build rapport and negotiating leverage with the listing agent. Negotiating in multiple offers is a fine art that not everyone will be great at, so the more you can do to increase your chances of winning, the better. Preparation is key.
Good luck out there!
This blog post is for educational purposes only and should not be construed as expert or legal advice. It is not intended to solicit clients currently under contract with their agent.