THE TEAM BROADY BUYER’S GAMEPLAN
Today's real estate market is unquestionably a “Seller's Market”. This means the demand far outweighs the supply of homes available for sale. Unfortunately, as a buyer, this means you aren't in the driver's seat. You have less negotiating leverage, and you need to be prepared to face some stiff competition when bidding on a home. You can still obtain your dream home, but you’ll stand a better chance if you have an experienced real estate broker in your corner. With that in mind, we want to share Team Broady’s strategic Buyer’s Gameplan.
First, it's all about mindset. Since 2019, Montreal's residential real estate market has been very much in favour of sellers, so it's essential to be ready and willing to accept the harsh realities of these market conditions. An important question to ask yourself is, "How badly do I want this property?" Preparing yourself mentally is the best way to avoid disappointment. By asking yourself how badly you want the property, you'll have a better idea of when to walk away or when to pull out all the stops.
Next, you need to have a strategy in place to deal with multiple offers. This will depend on how many other buyers you might be competing against and whether the seller is holding off on responding to offers. At Team Broady, we have the knowledge and experience to help you determine the best strategy. This can include when to submit the offer, what deadline to assign to it, and whether to enhance it before an offer is accepted. In the case of multiple offers, you must decide what your absolute maximum price threshold is. You don't want to regret losing out to another bidder by a few thousand dollars... but you also don't want to regret overpaying. It's a tough decision to make!
Another great way to improve your offer is to include a deposit. In our experience, offering a deposit shows that you're serious and that you're willing to put some "skin in the game." We also find that sellers of a particular generation appreciate seeing a deposit with an offer - which could give you an advantage.
When purchasing with a mortgage, it's vital to submit a pre-approval letter with your offer. In fact, the majority of sellers will not even consider an offer without a written pre-approval because there's too much risk that the offer could fall through due to financing. You should also try to show a strong cash-to-loan ratio. Sellers feel more confident about a buyer who is putting at least 20% cash down. In the case of a cash-only purchase, you should have a letter from your financial institution demonstrating proof of funds.
Furthermore, here are three additional things you can do to make your offer more attractive to the seller:
Make sure you don't add any unnecessary conditions to your offer. In a seller's market, the fewer conditions attached to an offer, the more attractive the offer appears. With every condition you add, your offer becomes less and less desirable.
Inclusions and exclusions are items outlined by the seller in the Centris listing. Any deviation from what the seller has indicated could render your offer less attractive.
The seller usually indicates their ideal dates for possession and occupancy, so if you can adhere to their exact dates, again your offer will appear more attractive!
That being said, we highly recommend making your promise to purchase conditional to a building inspection. The purpose of an inspection is to identify major defects that could significantly affect the integrity or the value of the property. However, if a pre-listing building inspection has already been done and expert tests and receipts and/or estimates for repairs have been provided, then perhaps you may feel comfortable waving the building inspection to make your offer more attractive in a competing offer situation.
Lastly, you should include a covering letter. This is a personalized letter you can prepare, introducing yourself and explaining to the seller what you love about their home. Often referred to as the "Cheese Letter", this can be a powerful tool, depending on the homeowner's profile. Sometimes, by establishing a connection with the seller emotionally, you can give yourself a significant advantage over other prospective buyers.
A successful home search is one that matches you with your ideal home. You can rely on our extensive knowledge of the local real estate market, our network of trusted professionals, as well as our personalized service, to make that happen. As a Team Broady buyer, you can rest assured that we will take the time to get to know you, your family, and your lifestyle, to best understand your wants and needs. We would rather ask 50 questions and show you 5 homes, than ask you 5 questions and show you 50 homes!
Don't hesitate to schedule your appointment with Team Broady today, call 514-612-1127 or email firstname.lastname@example.org