Crafting a great offer is both an art and a science. Today, we’re demystifying the process so you can bring home a win next time you come across a dream property.
Tip 1: Get pre-approved
In our fired-up market, it’s more important than ever to have your pre-approval letter ready. We often see people starting to look for properties, go for visits, and make plans to acquire their dream home … all without approval from the bank.
They don’t know what they can afford, which eventually ends up wasting both their time and the broker’s time. Sellers have lineups out the door right now – if you don’t come prepared, there are tons of other people who are ready to seal the deal. Plus, in a multiple offer situation, the first thing that sellers do is toss any offers without pre-approval straight into the trash!
Tip 2: Make your best offer
Once you’re pre-approved and have found a great property, it’s time to put in an offer. If you find yourself going head-to-head with one or more buyers – as buyers often do these days – you absolutely have to make your best offer.
Imagine that someone else outbids you by a not-too-crazy amount: think 10, 15, or 20 thousand dollars. That amount would only have shown up as an extra 20 or 30 dollars on your mortgage every month. So, take the time to crunch the numbers and consider what you can truly afford (your actual best offer!) to avoid having regrets down the line.
Tip 3: Tailor your offer
We live in a bilingual province, which comes with its share of particularities. Let’s say you notice that the seller is francophone – tailoring your offer is as simple as asking your broker to draft the letter in French.
People appreciate that level of attention to detail, and they certainly appreciate the nod to their culture, so this will ultimately enhance your chances of landing that property.
Tip 4: Get personal
Something that helped us in multiple transactions this year was including a personal letter. Personal notes that include a photo of the buyer, their pets, or their kids goes a long way. Why do you like the property? How will you care for it once the owners move out? Talk about it in the letter!
Let’s say you’re in the top two or three offers – sellers are actually going to consider you as a whole person as opposed to a name on a piece of paper.
As a broker, it’s equally important to prove that you’re the most eager one of the bunch. Some brokers send in offers without a call, without any explanation. It’s best to call the broker before, during, and after the offer submission to increase your odds.
Tip 5: Don’t get discouraged
In the end, it’s all a numbers game. This being a heavy seller’s market, it’s getting tougher and tougher for buyers to purchase a property. In our experience, it usually happens between the 4th and 7th bidding war.
With every cycle, you continue narrowing down what you really want in a home. And more often than not, in the end, clients end up with the best property they’ve seen so far.
Are you on the cusp of making an offer and want some extra guidance? Ask us anything!