One of the best situations for a seller is getting multiple offers on your property. This means more than one buyer is ready willing and able to write an offer on your property. Why is this advantageous?

1. The Buyer is now in competition.
2. They do not have the benefit of time on their side or as much time to do their due diligence.
3. The ability to negotiate is minimized, if not gone all together
   • If the home is priced well, it’s highly likely the seller will get full price and highly possible it will go over asking.
   • If the home is underpriced, it could go well over asking.
4. The Seller is most likely to get a “clean offer” - no subjects
5. The Seller is most likely to be in a position to request and get the best dates for their situation - long close or short close.

If you are the buyer these are very stressful times for you. You have to be ready to view properties when they come up and Seller may dictate the schedule. It is common for agents to set a certain time and day for offers when they are expecting more than one, so they can stack them up.


What can the buyer do?

1. Be ready with a flexible schedule for viewings.
2. Make sure you have had an honest discussion with your lender and fully understand how much you can afford and how much time you need to confirm your ability to borrow on a certain house.
3. Offer at least asking, or substantially over the asking price.
4. Have no subjects
• Read all documents (title, pds, strata docs) in advance.
• Do a pre- inspection
• Have your financing organized in advanced – this can be tricky as most banks will need an appraisal of the property before signing off on the mortgage
5. Give the seller their best dates.
6. Offer the seller the close they want – everyone’s situation is different:
• A quick close – especially if it’s a vacant home.
• A quick close with a rent back option (or free rent) – so they can have money in hand while they are on the other side of the equation (they now need to buy).
• A long close because it’s a difficult move for seniors or a family.
• Flexible close – the ability for them to change the date for when they find a new home.
7. Have the deposit cheque ready with your offer.
• Sometimes in a multiple offer buyers get excited and emotional and pay more than they want to. They can wake up with buyer’s remorse. If they cheque has not been handed in with the offer, sometimes they change their mind and don’t deliver the cheque.
8. If you have a house to sell:
• Try and get a long close on the purchase giving you time to sell your home
• Sellers are not interested in offers “subject to sale” at the best of times, they don’t have to take them in strong markets.

As mentioned in this newsletter, up to 61% of sales are going in multiple offer situations. Buyers are stressed and seller expectations are high. It’s not easy or fun out there at the moment. Understanding the lay of the land and being ready is the best offense.