It’s springtime, and in Winnipeg that means that the real estate market heats up. For the past several years, many home buyers have been challenged with bidding wars on the properties listed on the MLS – which means that the properties are usually sold well over list price. What does this mean to consumers trying to make a home purchase?

When you’ve found that perfect house you’d like to call home, the last thing you want is to have to compete with other interested buyers. But in hot markets where demand overrides supply, this is the new reality.
Here are some tips to help you win the battle:                        

1. Work with an experienced Realtor. A Realtor with bidding war experience can help you come out on top. In choosing a Realtor, ask what success he or she has had in bidding war situations. You want a Realtor that can negotiate for you and help you formulate the bid they feel will be successful.
2. Get pre-approved for a mortgage loan. This way you will know the maximum financing available to you. By pre-qualifying for your mortgage loan, you’ll not only be aware of your offer’s ultimate ceiling, but you’ll shop around and bid accordingly. A pre-approval means that the lender has approved your credit, verified your down payment and employment, and you only require CMHC or Genworth insurance approval of the value of the property. Your Accredited Mortgage Professional can provide you with a pre-approval certificate (subject only to appraisal or CMHC approval). If you provide your Realtor with a copy of this certificate to present to the vendor, this can strengthen your offer.
3. Have funds available to make a healthy deposit! If you can certify the deposit cheque this will carry more weight with your offer to purchase. If your bid is successful the deposit funds will “flow through” to your down payment and becomes part of the deal, but a certified cheque for your deposit speaks highly of your seriousness to purchase and follow through with the sale.
4. Bid in uneven numbers. Don’t bid $230,000 on a house whose asking price is $230,000 when you’re in a bidding war. If your budget permits, bid something like $231,200. It may seem as though bidding an odd number would make little difference, but not only will your bid stand out from the rest, it may beat an offer that came in at a slightly lower figure (say $231,000) and give you an edge.
5. Try to meet the vendor’s closing dates – this could be an important trigger.

Before you engage in battle, arm yourself with a pre-approved mortgage, a little research, financial strategies, market value awareness and a great Realtor. With the right tools and team, you could land on top of the bidding war and be in the home of your dreams.

Call me today!  371.9284

For your Accredited Mortgage Professional Advice 😉