Toronto is one of the most sought-after places all over Canada. Thousands of people hope to find a place in the hustling and bustling of the city. For this reason, the price of houses and real
Top Tips for Winning a Real Estate Bidding War
Dated: March 17 2022
One of the most stressful parts of buying a home can be getting caught up in an ongoing bidding war. Not just once or twice, but every single time and unfortunately, it's pretty standard.
You love the house, but you lose to someone else. This is because Toronto's real estate market is incredibly competitive. We've rounded up some expert tips to help you create a buying and bidding strategy.
Keep Your Cash Handy
Before bidding on a property, Toronto-area realtors suggest having your deposit ready. This may mean going to the bank and getting a certified check in hand with about 5% of the offer. That deposit goes toward your final down payment if the offer is accepted.
Ask About Pre-Emptive Offers
A preemptive offer is an offer that's made before the property is officially put on the market. According to Wins Lai, a Toronto real estate broker, it's essential to ask your agent if the seller will accept a pre-emptive offer. This can help avoid a bidding war altogether, and you can make an offer on the spot.
Clean & Clear Offers are More Successful
Whether it's a regular bid or a pre-emptive offer, Lai says that a clean offer has a higher chance of success. This is because, unlike a pre-emptive offer, there are no conditions attached to it. That may include paying for your own inspection, etc. If this is the route you choose, do your research so that you aren't hit with huge unexpected expenses down the road.
Don't Overthink It
Getting attached to a property can make it hard to make intelligent financial decisions. Re/Max realtor Tim Syrianos says, “Most people won’t get the first property they bid on. Never think, ‘I lost my dream home,’ because the first home is unlikely to be your forever home.”
Personal Appeals Might Work
Some buyers can actually create a personal letter to the seller to appeal to them. Some sellers prefer to sell to families and first-time homeowners versus investors and large corporations.
Have you ever been trapped in a bidding war? Or outbid on any home you've considered? Consider reaching out to our agents for specialized advice in this Toronto housing market.
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Toronto is one of those few places where housing prices have skyrocketed in recent years. A house used to cost about $200,000 costs a lot more now, 25 years later, at about $1.1 million on average.