Tim Hewetson

Hot real estate markets bring out the worst in everyone. Sellers become greedy and demanding. Buyers become desperate, frustrated and disillusioned.  Real estate agents get caught in the middle as they try to negotiate purchase contracts that are acceptable to both sides of the transaction.

Along with frayed nerves, hot markets mean multiple offers will be received for just about every for-sale home. These bidding wars are great for sellers, but they add to the “freaked out” factor for buyers.  How can you buy the home of your dreams when several other people are also bidding on it?  Here are a few ideas that may help tip the scales in your favour:

Make your best offer. Let’s face it, the bottom line is the most important consideration for most sellers. They’re naturally looking to sell their home for the highest possible price. If you want to win a bidding war, offering the highest price – something attractively above the asking amount – is a sure way to get the seller’s attention. Most sellers who receive multiple offers only seriously consider those at the top of the price heap.

Show you’re serious. Offer to make a large money deposit and as large a down payment as you can. Putting more money on the table up-front shows the seller you’re serious about the transaction and willing to put your money behind your intentions.

Get pre-approved. Attach a copy of your mortgage pre-approval letter to your purchase offer. A pre-qualification letter is helpful, but a full approval, subject only to an appraisal of the property, is even better. Sellers favor buyers who demonstrate that they’re financially able to close the transaction.