When buying the house, the situation of multiple offers comes up most of the time, especially in today’s hot market in Toronto and surrounding areas. Multiple offer is where several buyers present their offers on the same house at the same time which causes the spirit of auction where overbidding the price or removing the conditions come into play.
There are a couple of factors that create multiple offer situations.
- First of all, the lack of inventory of suitable homes (late November, December, early January) or a burning desire to buy a house with closing before school year in September (May, June, July).
- Second of all, many home owners price their houses below the market value so they expose their property to as many buyers as possible. As a result pricing at a lower price range will often attract Multiple Offers.
Those situations can be very frustrating for buyers. They hope they will get the house with the possibility of negotiating the price, and now they turn to be in a weakened position as it is the seller’s decision as he has a selection of offers.
Buyers in this situation are hoping the Seller will at least give them a sign back and work with their offer.
The Seller may choose to sign one offer back, or Buyers are asked to improve their offers without knowing what the other offers are. When this happens, the situation gets emotionally intense and quite stressful for both sides. Sometimes, the Buyers loose the sense of control and ready to overbid the competing offer, forgetting their financial limits.
Having experienced those multiple offer situations many times, our team always helps our Buyers to stay focused on what they are willing to pay and make the whole process less stressful.
Before even putting the offer, we do a thorough research of the market value of the house, prepare comparative analysis of recent solds and check similar inventory for sale to make sure the offer we present is valid and reasonable.
Buying a house is a major financial decision and rest assured that The Nikolay and Tatiana Team has all the tools and experience to make the home buying process smooth and hassle free. If you are thinking of buying a condo, a house or an investment property, please call direct at 647-833-3287 to get an immediate response.
