3 SECRET Tips To Win A Bidding War

more specifically they are expecting the average price to increase by nine percent in ontario first i’d like to draw your attention to this graph over here which shows the spread between the average home price in canada versus the us although something that we have found is the majority of sales are taking place in the more higher end price ranges in canada versus the us a fun fact for you though is that in 2020 a third of the sales in canada took place in the three largest cities therefore driving our average price up however in the u.

s there is quite a variance between the average sale price and we’re seeing that 2021 is truly off to a remarkable start the average price is up across all home types between condos freehold properties and in different areas of the gta it seems very very challenging for buyers who are out there as our listing inventory is very low and i’m expecting it to stay this way for at least a few months the average property is selling above its asking price and if you see any listing that’s been on the market over 30 days likely it has some sort of issue maybe some sort of stigma or the tenants are refusing to show the property here’s a couple examples of some properties which sold over a hundred thousand dollars above its asking price this property here is in markham whereas this property is in a lower price range over in ajax and quite honestly sellers are very happy right now the prices they’re getting for their homes are far exceeding their expectations and they’re able to call the shots that way they can choose when they’d like to move out they can construct these sale conditions to benefit them two of my sellers this month were able to get the highest price on their street by the way thank you very much for your business so these are three tips i’ll share with you in order to strengthen your offer strengthen your position and more likely get your offer accepted and the first would be to remove your clauses and what i mean by this is when you are making an offer on a property it’s usually contingent upon you getting proper financing in place as well as doing a home inspection and if you have these two clauses it will keep you safe but the seller is obviously a lot less likely to go ahead and accept that offer because it means that you have a potential way to escape from the deal so here’s what an offer looks like on the toronto real estate board the schedule a is typically where conditions are outlined and this is a very common clause that buyers do insert in an offer which says that the offer is conditional upon them being approved by their mortgage broker to purchase this specific property there are ways around removing this clause to strengthen your position but you’d have to speak with your mortgage broker about that just to make sure it’s the right idea because they’re going to take everything into consideration they’re going to take into consideration your budget your pre-approval the area that you’re buying in your down payment and so forth and then the next common clause is doing a home inspection so similarly you would have about a week in order to get a professional home inspector to look at the property and do a good diagnosis of anything that needs repairing and any issues that you should be aware of so you can perhaps consider removing this clause in this market it very often is being such that sellers are providing the buyers with a pre-inspection report so the seller is doing the inspection for you before they’re putting the property on the market and therefore instilling more confidence to the buyer that the property is ready to be sold but i would recommend that most purchasers out there unless you’re maybe a contractor or very experienced with buying that you don’t jump the gun and buy a property without doing an inspection definitely do a home inspection so if we’re in the seller’s position and we’re looking at two offers maybe one offer is eight hundred and twenty thousand dollars but it has those two clauses and then the other offer is eight hundred thousand dollars yet it does not have those two clauses meaning it’s a firm deal then very often the seller is more likely to take that lower priced offer just because they know it’s solid and there’s no chance of the buyer getting cold feet and backing out of the deal here’s the second strategy that you can take in order to get your offer accepted and that would be to offer unique benefits so an example of a unique strategy would be to offer rent back to the seller meaning that you would buy the property and allow the seller to stay in the property for maybe six months up to a year depending on whatever you’re comfortable with but especially for investors this is a strategy which we’re seeing very often used in today’s marketplace because there’s sellers for example who are out there and they want to sell but they haven’t seen anything which they like so this gives them the freedom to know that they can sell their property and stay there until they found the right fit for them then they can buy that property and then communicate with the person that purchased their home to say okay i bought something now you can move in and this is very often working both parties are happy the buyers know that they’ve solidified the deal and the seller knows that they can go out and purchase a property and similarly you can offer the unique benefit to the seller to have the option to change the move out date so an example of this would maybe the offer would say that the buyer would move in in four months yet there would be a clause in the offer that says in the event the seller decides to change the closing date provided that they give 30 days notice to the buyer then the buyer automatically accepts to this agreement so i just recently had a seller where what they did was they said to the buyer listen let’s arrange the closing date to be in six months but if we find the property sooner then we can adjust it earlier and that was the only way that we were able to get the deal done the seller was happy with the deal as was the buyer and i realized that most buyers probably wouldn’t be okay with this strategy but there’s other things you can do in order to add unique benefits like consider maybe paying the sellers closing costs or paying their moving fees which especially makes it important for you to have the right real estate professional working in your interests as a buyer and then the third strategy around getting your offer accepted is to communicate with the listing agent show the listing agent what makes you a good qualified buyer because we’ve experienced strong markets and really bad crazy things happening and deals falling apart especially in 2017, we want to know that there’s nothing fishy going on that our buyer is solid they have their funds and they have every intention of moving forward so a simple technique that you can use is you can send to the listing agent a copy of your buyer’s pre-approval a buyer’s free approval sheet clearly says how much they can afford and for a listing agent being able to see that information makes it more likely for them to take your offer a lot more seriously and the other thing you can do is if you’ve already sold your property then tell that to the listing agent give them the specific address better yet have your agent send them an mls copy of your listing because it says your name on it it says all the transaction details i mean what better proof is there to show a seller that you’re a serious buyer send them a copy of your sold listing and then this is really going to strengthen your position a seller is more likely to take you seriously and even if you as a buyer want to go ahead and insert those clauses like i mentioned for the home inspection and for getting a mortgage pre-approval then some sellers may actually be okay with it knowing that they know a little bit about you and that you’re not going to walk away from the deal tomorrow if you found this information helpful then do consider subscribing i post updates pertaining to not only the toronto real estate market but taking advantage of the real estate market even for investors you’ll likely find some good useful information on this channel and if you’re a real estate agent that’s watching this video thanks for tuning in if you’re considering looking at other brokerages then call me about exp realty my number is 416-671-5218 and i look forward to seeing you all next time take care guys.