Buying tips for a strong housing market

Very Good article regarding the Hot Real Estate Market and how Buyer's might be able to get their offer accepted instead of someone else's in a bidding war.

Canada 's housing market has been on a record-breaking pace and that's good news for home sellers. Buyers on the other hand, can find that their choices are limited in a market that has been so strong for such an extended period. In fact, when demand is so high for attractive, well-priced homes coming on the market, the result can even be “bidding wars” where more than one prospective buyer places competing offers for the same property. However, even in a hot market, there are several tried and true tactics that can help you acquire your dream home.

As a homebuyer, you can strengthen your negotiating position by getting your finances in order first. Before you reach the stage when you're ready to prepare an offer, get pre-approved for a mortgage. Your Real Estate Agent can put you in touch with a reputable lender who will offer you competitive rates and terms. Going into negotiations with a pre-approved mortgage lets you make an offer that is not conditional upon obtaining financing. Your representative will be presenting a ‘clean' offer with fewer conditions. The fact that you already have financing in place also demonstrates that you're a stable, dependable buyer. It all adds up to make your offer more appealing. Especially if your competition isn't so well prepared!

When making an offer in a hot market, where other prospective buyers might enter negotiations at any time, it's to your advantage to keep counter-offers to a minimum. Your sales representative can help you prepare an offer to purchase that accommodates the seller's terms as much as possible. Remember too, that other aspects of the offer may have value to the seller beyond just the purchase price. For example, if the seller specifies a closing date other than what you'd prefer, think twice before making a change. Measure the date's importance against the value of presenting a clean offer, with little in it for the seller to object to. What may be a minor consideration to you could have great importance to the seller. Also bear in mind that if any aspect of your offer is revised, then in effect, your entire offer is refused. That means everything can come back up for negotiation again, including the price. If you already own a home, a major step you can take to make your offer much more attractive is to eliminate the condition of selling your existing home first. You can do this either by selling your existing home before you buy, or by taking the more risky option of assuming it will sell quickly in the current market conditions. This latter option may end up costing you some additional money in terms of bridge financing if you don't sell as quickly as you think you will. That may be an acceptable risk to you, but make sure you have all your facts before you decide.