How to Win a Bidding War

It’s time for my weekly Real Estate Education video! Today’s topic is how to win a bidding war.

With the new stress test and stricter mortgage regulations, the barrier of entry into buying a home in Toronto is that million-dollar mark. This means houses on the market for less than a million dollars are getting A LOT of attention and are selling fast. Many of these listings have been receiving multiple offers.

If you are thinking of also putting your hat into the ring in hopes of winning a bidding war, here are some tips. Remember, sellers are looking for the cleanest offer – the less conditions, the better.

There are 3 common conditions:

  1. Financing: know your finances before you put in an offer. You need to know the max you can pay for a home. If you know you will be approved for the home, you can remove this condition.
  2. Home inspection: most of the listings that are anticipating a bidding war will already have a pre-inspection of the listing. If it doesn’t, you can book one before you put in an offer. If you’re satisfied, you can put in an offer without the home inspection clause.
  3. Status certificate: this document is provided by the condo corp and has all the financials and important info in it. I would not recommend removing this condition unless the seller has provided it to you in advance.

Other than conditions and money, if you have the deposit in hand, that shows you’re serious and that you can firm up the deal tonight.

Choose a closing date that works for the seller. Meeting their moving needs gives you a leg up.

Finally, add only the items in the offer that the seller is selling with the house. This is not the time to ask the seller to throw in their $5,000 couch!