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How to win a property bidding war

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Canadian Realestate Magazine | 21 Apr 2015, 09:00 AM Agree 0
Investors need to be more proactive and creative in this process, according to one expert.
  • Mart | 21 Apr 2015, 01:11 PM Agree 0
    I think this article is a stretch, I suggest to do 10% effort to get 95% of the market inventory in your hands by simply using mls.

    Why put 100% effort and time and lots of work no one has time for just to go from 95% coverage to 99% coverage of what is available in the world. MLS is your best source and hardly any effort.
  • Omer Quenneville | 21 Apr 2015, 01:22 PM Agree 0
    You should deal with an agent that is familiar with the area you want to buy in. A lot of properties are sold through networking and are already sold the day they go on mls. Dozens of agent call me asking for insight into my future listings in my areas and more often than not, we will put together a deal the same day we post on mls. I can't stress enough the importance of dealing with an agent from the area you want to buy in and dealing with an agent that works in your area when you want to sell. It doesn't cost you more to have two agents. Then once you found a property you like, bully your way in with an offer, don't wait for the offer date.
  • Alex | 21 Apr 2015, 04:24 PM Agree 0
    Mart, your suggestion is intriguing. Are you saying all that it takes to find a fair priced home in a desirable neighbourhood is check on mls? And here I was thinking that in order to compete, one might be well advised not to do what a majority of the competition is doing. You're right, what does this article know?

    Har har, sarcasm. But is it a waste of time to avoid bidding wars by building relationships? Is it stupid to do what the majority won't to find what they miss? Is it wise to limit your role as the one in charge of your financial future?
  • Tran | 21 Apr 2015, 11:18 PM Agree 0
    What a weird response by Alex, what Mart meant is that in limited time we all have we have the convenience of MLS and 26,000 realtors inputting all their listings there saving you all the work in the article. It takes no effort to see what 26,000 Realtors have to offer. Or you can waste a lot of your time and put full time effort to do what the article suggests for mere possibility that you find 1 home you like and odds of 1 : thousands that this would even happen. It is WISE to value your time and take advantage of work others already did for you (26 thousand ppl on mls).
  • REALTOR® from the capitol of bidding wars | 24 Apr 2015, 02:35 PM Agree 0
    This article really doesn't speak to what the title suggests and should instead be titled "How to Avoid a Bidding War"

    To win a bidding war I would suggest:

    1. Research the market and be prepared to start with your very best offer - you could always lead the market and offer what you believe the property will be worth in 30-60 days from now. Is it a rising market?

    2. Do all your due diligence ahead of time - get a firm mortgage approval and pay for a property inspection before the offer presentation.

    3. Be there. You should be close by to where the offers are being presented, so your agent can react quickly and have you initial any changes required. Often this will get you 10-15 minutes to consider a counter to an offer that isn't necessarily the best in terms of dollars.

    4. If possible have few or no conditions to your offer.

    5. Have your agent confirm the terms the seller is looking for; ie moving dates, deposit etc, and give them what they want.

    6. Go to the bank ahead of time - have your deposit in the form of a bank draft attached to the offer. If yours isn't the winning bid, you can always put the money back in your account.

    7. Be a nice and understanding person! Sellers in a heated market risk underselling without proper exposure to the market. Understand it's fair for everyone if offers are held off for 7-10 days from the list date. It's fair for the sellers, and fair for buyers who often find out properties sold below what they would have paid should they have had an opportunity to compete for them. Being the nicest and most sensible bidder goes a long way with the seller's and their agent.
  • | 24 Apr 2015, 03:19 PM Agree 0
    Seriously? This advise is absolutely not for Toronto Buyers.
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