You’ve Found “The Home.” Now What?


The long, tiring search is over and you’ve kissed a lot of frogs. You've finally found your dream home and want to make an offer on the property. How do you know how much to offer and if you’re getting the most value for your money in this Brandon MB market?


The offer phase of purchasing a home isn’t always straightforward and you need to at least know the market on homes in that area so you can determine if you’ll be getting the fair market value for that home. Ask your real estate agent to go through neighborhood  comparable actives and solds with you.  This report should be helpful with the offer process.


Lowballing is a common term in the world of real estate. It means that you’re offering to buy the house for a number that’s far below the market value. You run the risk of insulting the seller and losing the home for good.


But, if you don’t know the fair market value of the home you could overpay by thousands of dollars. To zero in on the market value of the home you’ve chosen, you should know if you’re in a seller’s or buyer’s market.


A buyer’s market means that there are plenty of homes for sale, but a shortage of buyers. This gives you more power to bid lower than the asking price and to even ask the seller to pay for some or all of the closing costs. In a buyer’s market, you’ll find the seller more willing to negotiate.


If you’re in a seller’s market, there is a shortage of homes for sale and you’re likely to have several potential buyers making offers at the same time. A seller’s market is a little tougher to negotiate in because you may need to compete with other buyers.


It’s sometimes devastating to a potential home buyer when their good-faith offer is rejected – especially without a counter offer. This could happen when the seller receives many offers and your offer was much less than the others. Or, the seller may back off of your offer to see if he can eventually get a better one.


All may not be lost, even if your offer has been rejected by the seller. The seller may not have accepted any offer on the home and you may still have time to negotiate by moving rapidly with a higher offer. This may result in a bidding war that your real estate agent will need to help you with.


A buyer’s agent is extremely helpful if you’re a first-time home buyer. He or she will be familiar with the local market and be able to negotiate the best deal on your behalf. You’ll learn a lot during this process, which may be helpful to you when you decide to sell.


If you’re working in a seller’s market and there’s a real shortage of homes in the area, you may still be able to get your dream home. Find a home you really love in an area you’re interested in and write a letter to the homeowner.


It’s a true leap of faith to try this method, but it’s worked for thousands of buyers and it just might work for you. Even if you receive a “not interested” reply, at least you’ll know you tried.


Never rush to make an offer in any market until you’re sure the home is right for you. Unless you do the proper research on the home, you may be rushing in to a situation that you’ll later regret.


Whether you live in Brandon MB, Virden MB or you're searching for acreages in these surrounding areas, the search can be strenuous and time consuming.  You can call on me to be your trusted go to REALTOR®, with insight on all new listings and recent home sales, within our local real estate market.

House Bidding Wars 101: What You Need to Do to Win One

When you’re buying your dream home, it’s most likely that you’ll have a lot of competitors for the same house. As much as possible, you need to avoid market seasons when everything is sold at high prices.


If you’re looking for a real estate property, you must take the opportunity when prices are down. However, it is inevitable to have competition against other buyers regardless of the season. That way, house sellers can increase the price of the house. You’ll need to have a strategy in order to win house-bidding wars. Here are some ways you can do that:

1) You Need to Know Your Budget

When you’re entering a bidding war, you must know how much you intend to invest in a house. Before you do that, you must know what you can get from the house and see what makes it different from other homes.


There’s a possibility that you might find a better property with better offers. However, if you really see that this house is worth buying, you must know how much money you need to win it. So prepare your budget, and see how much you can offer.

2) You Must Get Mortgage Pre-Approval

Even if you’re just intending to buy a house without joining a bidding war, you still need pre-approval for a mortgage. Pre-approval can help you determine how much you can afford for a house.  This will also convince the seller to sell the house since they can see how determined you are to buy the property, and they would be reassured that you have the ability to pay for it.

3) You Should Not Have Too Many Offer Conditions

Sellers want offers that are straightforward and clean to lessen complications during the process. It’s your responsibility as a buyer to offer the best conditions you can without it being too complicated. You need to please the seller, so you need to be flexible on when you want to close a deal. Additionally, high bidders also win, so you need to offer the best you can.

4) Build a Personal Connection to the Seller

Sellers probably have a lot of memories and emotional attachments to the home they’re selling. They likely want information about prospective buyers. As much as possible, find something that connects you to the seller. This could help convince the seller, and it can ease their mind that their home is being sold to the right person.

Conclusion

House bidding wars can be hectic, especially if the house you’re planning to buy is popular in the local market. You also need to check if the house is worth the money you intend to invest. Make sure to be prepared, and have the right strategy to approach sellers.


Are you looking for the perfect property as your home? Chris Low Realtor is the best real estate agent for your home hunting journey. I sell and buy residential, commercial, and farm real estate in Brandon and Virden, Manitoba. Partner up with me today!

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