If you are looking to buy a home in Toronto, chances are you will run into competing offers. It's not fun having to compete for your dream home, but with a little strategy and the right approach you can often win a bidding war. If you find yourself in this situation, here are some tips that can help you come out on top.
Make the first move
Waiting around too long can cause other buyers to jump into the mix. By making the first move, you help speed things along and give yourself a chance to snatch the property off the market before a bidding war even starts. If the house is priced properly, offer the full price and be prepared to up your offer if other bids come in.
Understand the market
Before hitting the streets to view houses, take a look online to see what houses are available and how much they are going for. Having an understanding of the market before putting in an offer can help you make an educated guess about the value of the home. Armed with this information, you will be able to place a more reasonable offer in the chance there is a bidding war.
Be flexible with the closing date
Find out what the seller wants and try to meet their needs. They may want to move out quickly or possibly stay in the home a little longer depending on their situation. The coordination of buying and selling can be very stressful. If you can, agree to adjust the closing date to accommodate them.
Know your budget
Knowing what you are willing to pay and what you can afford is crucial before entering a bidding war. Mortgage pre-approval should be step 1 of the home buying process. This informs you of how much you can spend on a home, and guarantees your mortgage interest rate for up to 120 days. The last thing you want to do is get emotionally attached to a home and place an offer that's beyond your financial means.
Hire a Realtor
Bidding wars are challenging, so having someone with the knowledge and experience to help you navigate through the process is important. Since buying a home is likely the largest purchase you will ever make, hiring a Realtor is highly recommended in order to secure the right home for the right price.