So How Can You Get Your Offers Accepted In A Difficult Market?

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The real estate market in Ottawa is doing well. The mix of a low supply and high demand has created an environment where Ottawa area properties are selling quickly and often above asking price. Many buyers are missing out on homes they like because of the demand. But where are they going wrong?

Buyers are not properly positioned or prepared so they ultimately lose out on properties. There are a few things that buyers should do before an offer is prepared and delivered to the seller:

Obtain a mortgage pre-approval letter from a mortgage broker and add a cover letter to it.
Get a property inspector to visit the home and provide you with a report. Any major issues might give you a leg up on other buyers by giving you the confidence to leave out the inspection condition from your offer.
Another report on how much the seller owes on the property. Knowing the mortgage amount left to be paid can help you determine how much to offer for the property.
Know what to do if the seller counters your offer. Try to think a few steps ahead and plan for possible outcomes so that you can respond quickly to queries from the seller.
Run the numbers using different price points to determine your maximum offer price. There can always be another house if this one doesn’t become yours, so don’t overpay!

Obviously, the offer price is important but some sellers accept offers based on its terms and clauses. As a buyer, do your best to meet the seller’s needs (amongst other things) and keep your offer as clean as possible when there are competing offers.

If the seller wants a $10,000 deposit, give $15,000.
Determine by when the seller wants the transaction to close.
How long of an irrevocable does the seller want?
How long of a conditional period does the seller want? Tighten up the conditional period so that the dates exceed the seller’s needs.
Is there anything that the seller wants or needs? For example, buyers can offer to pay for the seller’s junk removal, cleaning expenses, legal fees, moving costs, and even have the seller’s snow plow and lawn tractor serviced.

Just like in any kind of market, almost all buyers will go after the property most in demand, end up in bidding wars, and risk overpaying. Our advice would be to avoid properties and listings where the offers are held back or have a price that is discounted in order to create a multiple offer situation. Instead, look for properties without offer hold backs or discounted prices and work fast to get your offer in first. There are sellers out there who just want to sell quickly at a reasonable price without any hassle. The “first in” strategy is a great way to avoid the herd of other buyers – you just need to be patient and prepared for it to work.