Are you Really Ready to Write Offers?
Are you Really Ready to Write Offers? – From the Desk of Rod O'Keefe
As we have stated before - this is still a Seller’s Market. Over ½ the listings we post end up in bidding wars, meaning you will be competing with other buyers to buy your dream home. As a buyer in this very competitive market, you need a strong plan and process to ensure success in purchasing a home. Don’t be like many buyers in this market that lose their dream home because they did not have a plan.
Let us show you some key steps we will work through with you when you are on board with O’Keefe 3%, to ensure you have the ultimate offer strategy to win your dream home.
Step 1 – Be Financially Prepared -Unless you are paying all cash, you MUST have your finances in order. Having a documented mortgage pre-approval from your lender/mortgage is the most critical step to ensure sellers accept your offer and that you are shopping within your means.
Another key point, based on trends we have seen in Vernon and the Okanagan, is that generally, over 40% of listings tend to go up Friday or Friday evening. This situation leaves you without an opportunity to contact your mortgage broker or lender because your dream home goes on the market for the weekend, and everyone is ready to write an offer on it – you will be left in the dust! Financial arrangements and planning must be done in advance of previewing homes as it will lead to unnecessary stress and frustration.
Going beyond just securing your funds and increasing your ability to be super successful in having your offer accepted, you may want to even have a contingency plan if a home price goes beyond the limit of funds you have secured.
If we have found your dream home but this home is going to exceed your lending limit, you may want to have some additional excess funds (family, friends, lines of credit) that is readily available. If necessary and is still prudent, you then are able to exceed your original limit to ensure success.
Step 2 – Be contract savvy! Review contracts in advance so you know how conditions/subjects, terms and deposits work. You do not want to be previewing a contract and trying to understand the details on the day of making an offer. If you have done advanced preparation and planning, you will want to waive as many conditions as possible. This can even include waiving financing and inspection if planned correctly. (contact us for more details on how best to structure an offer)
Step 3 – Know what you want Get really clear on the buying criteria of your dream home. The more specific you can be (price range, location, square footage, layout, etc.) about your must-haves, the less time/energy is wasted chasing the wrong home.
Step 4 – Be flexible in your availability to view homes as it provides an increased opportunity to get in early and write an offer. If you do not have schedule flexibility, you will want to develop a high-trust high-understanding relationship with your agent and empower them to preview homes on your behalf. Also, utilizing FaceTime or Video showings is an effective strategy for previewing a home to see if it is worth a trip to view if you live out of town or don’t have flexibility with your schedule.
Step 5 - Be aggressive! If you like the home, write an offer. Many of our clients are often surprised by having the mindset of writing an offer the moment you see your dream home versus waiting to “sleep on it”. A quick and decisive strategy can result in an accepted offer. It is not uncommon for sellers to get showing fatigue and suddenly decide to accept the first offer that comes in.
Step 6 – Stay up to date Continuously review board stats with your agent as trends develop quickly and they will be able to identify and accommodate new trends as they arise.
Step 7 - Be as accommodating as possible with dates/terms and conditions that the seller may require. With more flexibility, your offer becomes more competitive.
Step 8 - Be open to “Shadow Inventory”- these are homes that are under active listing contract but not on market. As well, we have access to “Pocket Listings” - these are listings that WILL be going up on the market in the future, and, with luck, we can assist in accelerating potential sellers timelines which means we match you with potential sellers. Additionally, we contact/canvas the neighborhoods that you want on your behalf even if the homes are not listed. (Contact us for more details on these proprietary programs).
Step 9 - Avoid the cost of waiting - Interest Rates are going up in March. With inflation and rates rising Real Estate is one of the safest hedges against inflation. The Vernon and Okanagan real estate market will stay strong and the cost of waiting or trying to time the market usually ends up costing you more in the long run.
Contact us we will be happy to help you create a winning plan.
