3 Tips To Protect Yourself From Getting Outbid When Buying A Home In Oakville
According to the Canadian Real Estate Association, the rate of home sales in Oakville has been increasing each month. In a high demand market, a home is likely to get 73 visits. Oakville continues to be one of the most desirable places to live in Canada, hence there are many people looking to settle there. In May 2014, the average selling price of a home in Toronto had increased because the demand for houses was greater than the supply. This means that there are high chances of multiple offers and bidding wars on a single property. Some buyers are using cash which gives them a competitive edge. Here are 3 things you can do to protect yourself from being outbid in Oakville.
Be the First
Ensure that you are working with a real estate agent who is preferably listed with MLS. He or she will be connected to a network of other agents who are representing sellers; therefore, he or she has various resources to help you find the ideal property. Make sure to inform your agent that you want to make an offer on a property as soon as it becomes available. The most important thing you need to do is to put a tight deadline on your offer; this means that your offer will be good for a specific duration. It will prevent the seller’s agent from soliciting higher bids from other buyers.
Present Your Offer in the Best Possible Approach
Sellers put their house in the market for various reasons like financial difficulties. Be easygoing with the seller and show him or her that you understand their situation. For example, if you find out that the seller has purchased another house and wants to move out soon, you can offer a shorter closing period. You can also accommodate the seller for some time before he or she finds another house. Some people will waive the inspection contingency which is not advisable; instead, you can drop the monetary concessions or help with the closing costs.
Some sellers will accept an offer based not just on the price, but on the buyers level of interest in the home. These sellers will look at the number of contingencies you are asking for, and the time frame for each. If you love the home and really want to protect yourself from being outbid, you can do the following:
- Make yourself known to the listing agent or the seller
- Take time to visit the property on numerous occasions
- Remind the listing agent that you are still interested
- Make the highest bid but make sure that it’s within the acceptable market price range
Obtain a pre-approval
A pre-approval is an evaluation of a borrower by a lender which determines whether he or she qualifies for a loan. It states the maximum amount the lender is willing to lend the borrower. Buyers who can pay cash could easily outbid you on a house; however, a pre-approval could still get you in the game. You need to provide the seller with proof that you can afford the house. In Oakville, various factors are considered to determine your affordability. They include;
- Household income- The lender will check for how long you’ve been employed and what type of income you get, that is, salary or commissioned
- House type and location- The type of house you want to buy and its location will matter
- Credit report- Ensure that you have a strong credit score for easier pre-approval
- Down payment- Make sure you make a larger down payment, preferably over 20% of the selling price.