With a relatively affordable cost of living and far more accessible housing market, it’s not surprising that Peterborough is becoming more popular than ever! A fun, exciting, and family-friendly lifestyle may also be partially responsible for more home buyers setting their sights on our favourite city. And did we mention the stunning parks and gorgeous walking and cycling trails? But we digress.
If you plan on buying a new home, you might find yourself up against some steep competition depending on the market at the time. We won’t always face multiple offer scenarios, but they are a possibility. How can you make your offer stand out if other buyers also want the home you love? In this post, we’ll outline a few strategies that may inspire a seller to accept you over everyone else.
Are you planning to relocate to Peterborough or the surrounding area? Our relocation guide will help keep you on track. Download yours for free right here.
It’s Only Mostly About the Money
Money isn’t everything when buying a new home. It’s just almost everything, as much as we’d love to tell you otherwise. The seller has plans for their next chapter in life, and the proceeds from their existing home play a significant role in making those dreams a reality. Plus, they are likely very emotionally attached to the place they’ve lived in and maybe even raised a family in.
It’s only natural that a homeowner wants to earn as much as humanly possible from their transaction. You would too if you were in their shoes! The good news is that there are still ways you can come out ahead that don’t always mean blowing your budget right out of the water. It starts by knowing the market and where your advantages may be.
One of the best ways to prepare is to get a mortgage pre-approval in advance. Not only will this allow you to create a realistic budget, but it will also help you craft appealing offers. A high amount on an offer is only worth it if the buyer can obtain financing. By getting pre-approved ahead of time, you’ve shown the seller that you are a serious buyer who can and will follow through.
A successful real estate purchase begins with a lot of support and expertise. The posts below will help you make informed decisions:
- Why Work With Jeff & Katie to Buy Your Next Home?
- How to Buy a Home in Peterborough With Help From Family
- How Does Getting a Pre-Approval Help Your Home Buying Dreams Come True?
The Market Is the Primary Driving Force
Getting the best deal depends on the market itself to a large extent. The seller may want to command $100,000 more because they had a home evaluation a year ago when conditions were hectic. If sales have since slowed down, that price may no longer be realistic.
To make your offer irresistible without overpaying for your home, you’ll want to know what is happening in the market right now. Insight into the grand scheme of things is essential, but specific knowledge about a particular neighbourhood will also come into play.
In today’s fast-changing landscape, it’s not uncommon for a house in one area to receive dozens of offers while a similar property a few blocks away has none. If you’re competing for the popular home, you are probably going to have to offer more to have a chance.
The answer may be to turn your attention to a lesser-known listing in an up-and-coming area. For the record, this does NOT necessarily mean getting an inferior home. Remember that what’s popular doesn’t always mean better quality.
Sometimes, that listing that no one else knows about is your chance to secure your dream house at a low price and fantastic terms. Without in-depth market insight, however, spotting these hidden gems can be difficult, which is why working with a local real estate team is so valuable.
Knowing what you’re up against is the first step in the home buying process. The resources below will help bring you up to date:
- How Do Interest Rates Impact Buying Real Estate?
- A Guide to the Current Peterborough Housing Market
- A Guide to Peterborough’s Luxury Housing Market
Consider Your Conditions
Whenever a seller accepts an offer even when they could have received a higher amount, it almost always comes down to conditions. Again, put yourself in the seller’s shoes. What good is it to accept a record-breaking offer if the transaction falls through because the buyer had a condition you couldn’t meet in time?
Conditions such as the sale of the buyer’s existing home or ability to get financing can cause a lot of stress and uncertainty for a seller. If an unconditional offer comes through, they may be far more inclined to accept it even if it’s a lower price than they would have liked.
On the other hand, you also want to protect your interests when buying a home. If the market favours buyers, it’s reasonable to include a condition of home inspection in your offer. When houses are selling quickly, adding contingencies can hurt your chances. Still, you can protect yourself by arranging for your own inspection.
Wondering where to begin the search for your new home? Find out in A Walk Through the Neighbourhoods of Peterborough.
Know Your Home Seller
You won’t always be able to get to know the seller, but your real estate agent might be able to find out valuable information to help you negotiate. For example, imagine a homeowner is just tossing around the idea of moving but is just as happy to stay where they are. They are less likely to negotiate with you. If another buyer shows interest, it may be very difficult for you to compete.
Contrast this situation with someone who needs to sell urgently. If you understand your seller’s motivation, you’ll be in a better position to customize your offer to suit their needs.
Often, this is more about being flexible than money, which could allow you to pay less for a home you love. Other times, simply being well-prepared and organized can set you apart from another buyer. The key is to remain diligent, focused, and to be accommodating whenever possible.
Clear and Careful Communication
Most of the time, we highly recommend guarding your own motivations from the seller. The reason is that their listing agent will be seeking information from you to use to their advantage – just like we’ve advised you to do!
That said, no piece of advice is written in stone when it comes to real estate. Your agent may suggest open communication if it can help you appeal to the seller.
Let’s say the seller is an older couple who is downsizing from their beloved family home and wants to pass the torch to a young family who will love it as much as they have. In this case, a heartfelt letter along with your offer might set you apart from a developer who wants to tear the house down for a new apartment complex.
Each situation is different, and it’s important to play your hand carefully. Your real estate agent is a valuable partner who will help you negotiate every possible advantage in any market.
Are you ready to start your home search? Our Peterborough real estate agents will help ensure you land in the right place! Reach out to 705-243-9797 or email team@jeffandkatie.ca for more information.
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