Multiple Offer Situations Leading To Buyer Frustration - Ontario Real Estate Panel - Episode 2
Sunday May 16th, 2021
RE Panel EP2 Transcript
Elyse: [00:00:00] [00:00:00]Hello. We are the real estate panel. My name is Elise Bouwmeester and I work for red and white Realty in the Waterloo region. Welcome to our second episode where we will be discussing buyer's frustration with multiple offers. This is something that is so talked about right now. So we decided to do an episode on it, to inform people about what has been going on strategies to navigate multiple offers, and how to avoid that bidding war.
[00:00:30] We are currently seeing way more buyers than homes for sale, which is leading to an increase in offers. Personally, I've been involved in up to 33 competing offers and heard of even more now on the other end of it, I have also been involved in seeing two offers. So it really depends on the house. There's a fine line in completing an offer for your client.
[00:00:50] We want to protect and promote your best interest, but we also want to give you a fighting chance, especially if it's the home of your dreams. It can be very hard on buyers. Right now. [00:01:00] You've viewed 20 homes. You've narrowed it down to three. You figured out your financing, you've removed your conditions, which we are going to do an episode on.
[00:01:08] We are not advising you right now to remove conditions and saying that it's in your best interest, you've put your best offer forward and you still don't get that home. Some people wonder if they're ever going to be able to buy today when we will be discussing the frustrations on the buyer's end.
[00:01:27] But first I want to talk a little bit about the sellers and their perspective. Sellers want to get the highest price and best terms for their property. Sellers have worked so hard to get their property ready to sell and hope that offers will reflect their hard work. The listing agent is there to protect and promote the seller.
[00:01:45] Therefore they will be doing everything that they can to pull in really good offers and conditions. They don't favor the seller. So an offer without conditions is an offer that is most likely to close over the melody.
[00:02:01] [00:02:00] Melody: [00:02:01] Awesome. Thank you so much, Elise. So I'm melody. I'm based in Toronto and I'm with forest Hill brokerage in your film in Toronto.
[00:02:09] So let's talk about the buyers. So on the buyer's end buyers want to buy at the lowest price and the most favorable terms and keep in mind buyer representatives represent the interests of their buyer, clients. So we'll tell several buyers that each is being given a chance to make their best offer results in competition for the seller's property, or will it result in the buyers looking elsewhere?
[00:02:34] What would you do know that most buyers have a budget? So, so is it smart to go in with the best offer or give yourself a little room for improvement? If you're a top offer? Knowledgeable buyers and sellers realize there are rarely simple answers to such complex situations and that each offer should be dealt with differently.
[00:02:55] Buyers need to understand that in multiple offer situations, only one offer [00:03:00] will result in a sale. And the other buyers will often be disappointed. Their offers were not accepted. Little can be done to avoid this where there are many offers on the table because only one buyer is going to walk away with the home.
[00:03:13] Realtors, keep open communication with one another and are great at answering questions. So each and every person can feel they were treated equally. This is one of the reasons why you as a buyer should work with a real estate professional, especially with this current market. It really isn't the time to be trying to figure things out on your own.
[00:03:34] Lastly, know that the code of ethics, obligates realtors, to be honest with all parties. To present offers in a timely manner and to cooperate with other sales representatives, including sharing relevant information over to you. The bar.
[00:03:50] Davor: [00:03:50] Thanks Melody. Hello folks. Here are some strategies to help you navigate multiple offers in your search for that perfect home.
[00:03:56] Number one, get pre-approved and know your budget. It goes [00:04:00] without saying how important it is to know exactly what you can and cannot afford to purchase before you even touch you're is to consider purchasing a home is with a mortgage broker. Having finances in order before we embark on this journey, absolutely crucial.
[00:04:15] And if you have already engaged a realtor, ask them to recommend a mortgage broker to you. The nature of say business is that of communication, cooperation with other professionals, many of which are estate lawyers, all inspectors, municipal officials, as well as mortgage brokers. There's an absolute certainty that your realtor will have a long list of mortgage brokers that they personally can recommend to you.
[00:04:36] Even if you have your own. And you're quite happy with them having more than one opinion on stating at finances, as simply as sound practice perfectly prior to entering in a big financial commitment and purchasing a home is a group. Arguably, one of the biggest, the multiples is brought us to number two, know what the home you desire is really worth.
[00:04:56] This is where working with a real dip comes in handy. [00:05:00] Competent realtor is well-informed and by extension, you are declined. Get the benefit of that information. A realtor can pull recent sales in the area and compared them to the list and selling prices of the property. Did that of the subject property to home and desire, giving you a better idea of the poems, the actual words I expected selling parts.
[00:05:19] And finally, number three, conditions. This section mainly deals with buyers' conflict level. Let me explain in the current seller's market, having pure conditions when making an offer on a home could increase the chance of winning the bid. But consequently, we will also increase the risk exposure. And this is where the comfort level comes in.
[00:05:37] Know your comfort level. When it comes to risk, having a knowledgeable realtor by your side during the offer process will allow you to benefit from planning. The inside knowledge realtors, know what to look for and where a potential problem, Eric, you pointers a real, so we'll never try to convince you to remove conditions.
[00:05:55] They will. However, give you all the information you need to make an informed decision yourself. [00:06:00] If you're using a mortgage to finance part or most of your purchases. Do not remove financing conditions without it. You are financial legally bound by the purchase agreement, whether you get the mortgage or not instead consider a large deposit and negotiable closing date to show your willingness to compromise.
[00:06:18] Patience is a virtue. The market will never mind out a property is the right property for every buyer, as long as you're willing to wait for it. As long as you have a knowledgeable realtor by its side, we will get you the property you want. Over to you Mike, who would explain how to avoid bidding Wars?
[00:06:34] Mike: [00:06:34] Great to have her great lots of great stuff to take away from that. Wow. As far as bidding Wars goes, the way to stay away from them is speed. Speed is of the essence. You really want to get into a house that you see on the market that you think would be of interest to you as fast as you can, you know, get your agent and get in there.
[00:06:56] A lot of sellers will take preemptive. [00:07:00] Offers even in this market. So, you know, if you get in there and you liked that house, put your best offer together, make that offer. And I'll tell you folks the best way to avoid these bidding Wars is to not be in the middle. So that's the way to do it. And you know, your agent can reach out to the listing agent and can communicate to find out some tidbits of information.
[00:07:24] That might help you with that offer. So it could be as simple as finding out what ideally they're looking for in a down payment, it could be a closing date that would be most preferable for them. And maybe it's even excluding some items that were initially part of the house, but the seller will be happy to keep them.
[00:07:43] So you know, I will say. Timing is key. And, you know, we all know what's happening in the market right now. That's why we're here in front of you today. But if you can wait, I mean, you know, the spring and summer months are where it heats up and it's really hot right [00:08:00] now. So if you have an opportunity to maybe hold off until.
[00:08:03] Fall or winter, typically the market does slow down and it will allow you to potentially avoid some of these bidding Wars that we're seeing. But if you have to purchase now, there are transactions that are closing every day. So you've just got to work with your agent and they can get the right, you know, right.
[00:08:19] Deal for you. And as far as your agent goes, I agree with what the panel said today. It's about picking the right professional and if you pick the right professional they're going to really go through your needs and wants. And then they're going to go ahead and send you some listings that are just listed newly listed, that you can take a look at them and react ideally quicker than the marketplace is.
[00:08:43] That's absolutely key. It was going to leave one point with today that really resonates with you because it certainly resonates with all of us. And that is to be smart and it's. Always make sure that you know, when to walk away. And I know that sounds easier [00:09:00] said than it is done because you get emotional and you get excited about this house.
[00:09:04] We all get that, but you know what? You also don't want to regret this purchase. We've all been there, right? I mean, you know, maybe it was an electronics purchase. Maybe it was a car that you bought. I don't want my panel members here don't want you to buy a house that you've. Feel that you've got buyer's remorse on.
[00:09:23] So be smart, know when to walk away, and don't let this market scare you. That's what we're here for your role lie on your agent. Your agent always will have your best interest at heart. So we hope folks that we know we, we hoped you today. There was a lot of great stuff that was in here. We always appreciate your feedback.
[00:09:46] So we'd love to hear from you on a numb on what you took away from this, or maybe, you know, you're getting us some tips on what you'd want to hear more about. So we do a planned episode for next week. We're going to be covering how to get your house [00:10:00] ready to list. So with that folks, we'll catch you next week.
[00:10:04] All right.