How to Win the Bidding Wars When Buying a Home in Toronto
While the real estate frenzy has slowed down in most areas of Toronto, there are still prime neighbourhoods where as a buyer you may run into bidding wars.
It may sound harsh, coy or immature to call the process of buying a home a game. But when the market is overheated, that is precisely what it turns out to be.
Having inside knowledge on how to “play the game” can make the difference between frustration and disappointment or being able to purchase the home of your dreams without paying too much.
Make an offer without conditions. No, this is not advice for financial suicide. If done properly, you will see there is little or no risk in having an offer with no conditions.
Get pre-approved for mortgage financing, not just pre-qualified. Now you can proceed with an offer without financial concern.
Have the home inspected BEFORE presenting your offer. At most this may cost you a few hundred dollars if your offer loses out. However, it will likely cost you to lose the house because you insisted on having this condition in your offer. By doing a home inspection prior to offering you eliminate any concerns you have about the integrity of the house. You also show the seller that you are a serious buyer.
- Make as large a deposit as you can and certify your cheque, if at all possible. If you ask, you will receive interest on your deposit until closing date.
- If you are able, give a closing date that the seller prefers.
- Do not ask for any extras not specified in the listing.
- Respect the seller’s wishes regarding items the seller wants to keep.
Do not buy the house through the listing agent. This is known as “dual representation”. I do not represent a buyer if I have the home listed with the seller. To me this is simply a conflict of interest.
I cannot serve two masters who have entirely opposite goals. If you really think about it, one fact always remains… the seller wants to sell at the highest possible price, while the buyer is looking to buy at the lowest price. This is not new, just reality.
Be prepared to lose one or two bids. If you are determined and your agent is working closely with you, you will find your dream home.