Multiple Offer Scenarios: Tips for Home Buyers

There’s no denying it. Buying a home can be challenging, especially when the market is hot. While saving up for your down payment is one thing, competing with other home hunters who all want the same property is quite another. Fortunately, if you find yourself in a multiple-offer scenario, there are steps you can take to increase your chances of success—and make the process as stress-free as possible.

Here are a few tips you can try if you’re competing for your dream home…

1) Understand the market

Whether you’re purchasing in Milton, Burlington, or elsewhere, it pays to understand the local market. That’s because current conditions will directly impact what constitutes a good offer—which is especially important when there are multiple bids on the table. Fortunately, an agent with up-to-the-minute insight on market trends, local prices, and comparable homes will be well-positioned to help you craft a winning strategy.

2) Know your own limits

Of course, it’s not just the market you should have a handle on. Understanding your financial situation is equally crucial. It’s all too common to get swept up in a bidding war and offer more than you can comfortably afford. As a rule of thumb, your housing expenses (including mortgage payments) should be no more than 30 per cent of your monthly take-home pay. Obtaining pre-approval can also help you budget, as it will give you a strong sense of how much financing you’ll likely receive.

3) Be prepared to act quickly

Here’s another great reason to obtain mortgage pre-approval: it will allow you to act fast when you find the perfect property. You’ll know what you can afford—and sellers will see you as a serious buyer. In a market where inventory moves fast, it could make all the difference. Other tips for taking quick, decisive action include setting thorough home-buying criteria, understanding your dealbreakers, and ensuring you’re mentally prepared to make a move when you find the right place.

4) Make the strongest offer possible

Buyers often assume that they’ll have an opportunity to up their bid during negotiations. It certainly happens. That said, in a multiple-offer scenario, you may not get that second chance. That’s why it’s often wise to make your best bid the first time around. Of course, every set of circumstances is different, and there are times when leaving room to bargain is the best course of action. Luckily, a skilled local agent can help you determine which strategy is right for you.

5) Work with a true professional

Buying a home presents challenges in the best of circumstances. When there are multiple bids on the table, the process only becomes more complex—and the consequences of making a small misstep can be much steeper. In other words, getting it right is key. From understanding seller motivations to crafting the ideal offer, a local agent with a proven track record can walk you through the process, answer all your questions, and empower you to make a truly informed purchase!

To help you make an informed home purchase, we’re providing our handy buyer’s guide.