'Tis the Season

While Black Friday has passed and Cyber Monday Is in its last throes of shutting down, the craziness in the real estate market continues. I shall be competing in yet another multiple offer this year tonight and, while my client has been informed of the realities of this situation, and we are as prepared as we can be given the circumstances, it is always a little nerve-wracking going into these. Did we do enough? Are we “really” competing?  These are the questions that haunt me at night. Anyway, yes, the crazy holiday sales continue in what has once again been one of the busier markets on record. Almost every property I wrote on this year, was a multiple offer situation. I ended up getting about 80% of them, which is not bad considering the factors that come into play. If you want to better understand how to be successful in these situations, then follow this formula as best as you can.

1.  Prepare the client- explain the situation and show them the comparable sales. It is not just about what the property is listed at.

2. Contact the mortgage broker (not the client) to find out how “approved” the financing really is. This is for the benefit of all involved, but especially the client.

3.  Have an inspector ready to go. Invest the $600 before you have the property. Better to know beforehand. This gives you a huge advantage over anyone else who does not have an inspection done.

4.  Review the title and PDS with your client. Make sure nothing will have a negative effect on the financing.

5.  On your inspection, take note of potential insurance issues like poly B piping and aluminum wiring. Once the inspection report has been received, confirm with the clients insurance company that they won’t have any issues.

6.  Remember the adage, “ Bigger is better”. Make your deposit as large as possible. Ensure that the client understands that this gives the seller a security bond that will ensure you complete.

7.  And lastly, price. Look at the comparables, show them to your client, and then throw them out. Once your client has an understanding of market value, it only comes down to who wants it more. After dealing with dozens of foreclosures which are effectively all multiple offers in court, the one thing I always advise my clients is, “put your best foot forward”. If you lose it by $1, you have to be ok with the fact that you offered everything you would. Do not expect a counter offer as they are rarely received. Most strong offers will even consider leaving the completion and possession dates open to further ensure a favourable response.

8.  Did I say lastly on the last one?  Finally, pray to whichever God you believe in that someone you are up against hasn’t already lost out on 10 others and has gotten to the point where they just want to end the pain.

Happy Holidays everyone and wish me luck for tonight


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