According to reports, the housing market in Calgary is set to break a record for sales this 2014. In fact, the housing market is so hot this year that many real estate analysts predict that competition for single-family houses for sale in Calgary will continue through 2015.
With a high demand and relatively low supply, you can expect that one of the beautiful homes for sale in Calgary you are looking at is also on the radar of many other buyers. In such cases, bidding wars aren’t uncommon, especially in desirable areas such as the inner city or downtown Calgary.
Naturally, no one wants to lose his dream home because he was outbid. With that in mind, here are a few tips to help you win your dream home despite an intense bidding war:
Do Your Homework
Celebrity real estate investor Scott McGillivray offers his thoughts in this piece from HGTV:
Buying a property is the most expensive financial decision most people will ever make in their lifetime so spending time to research the neighbourhood is so critical. There is so much emphasis on house inspections, and there should be, but the same amount of care should also be spent checking out local schools, transportation links, parks, crime rates, medical offices, family activities, seniors programs, daycares and even future housing developments.
In a race against time, it may seem counterproductive to go through inspections and research. Such information, however, is valuable because it gives you a little more wiggle room to negotiate on a price.
Don’t forget that many sellers are cashing in on their investments, i.e. they’re looking to make money off of their property. By offering more money upfront, you can easily sway a seller’s decision. At the very least, you should offer no less than 20% down payment. Additionally, pay in cash if doing so doesn’t strain your budget too much.
The Escalation Clause
An escalation clause is a commitment in your offer that states you are willing to increase your bid by a certain amount above other offers that come in later on. This obviously gives you a decisive advantage over other bidders, particularly if you are one of the first ones to extend an offer.
If you decide to use an escalation clause, be sure to work with an experienced Realtor® like Christine Ordze. A trusted Realtor® can help keep your offer within your budget and set a cap on the increase.
(Source: Scott McGillivray’s Tips on Winning a Bidding War; HGTV.ca)