How Can I Navigate a Bidding War in Waterloo Region

elitere | Jul. 14, 2021

Real estate in Waterloo Region is continuing to soar. Waterloo is an increasingly hot market in regards to real estate. Property values are continuing to rise, and both homes and condos are in high demand. When a property gets listed on the market, it is very common to see multiple offers. Here are some tips to help you navigate a competing offer situation in Waterloo Region and beyond.

Understand the Market Value of the Home

The first step is understanding the value of the home. Home valuation is a fairly complex art, and two seemingly similar homes can often have a different price. You can get an accurate valuation by reaching out to local real estate professionals who know your region well. 

Secure Pre-Approved Financing

Securing a pre-approved mortgage or financing is an important step to do before you make your offer. Pre-approval consists of a lending institution evaluating your finances and approving a certain sum for lending. If you report your information accurately, then you’ll be able to get the mortgage loan and buy your home in no time. Furthermore, pre-approval gives the seller more confidence in your ability to buy the home. In many cases, homeowners won’t even humor someone who hasn’t secured pre approval for their loan.

Know Your Budget From Day One

Part and parcel to your pre-approved financing is understanding what you can afford – how much you have for your down payment as well as how big of a mortgage you can carry. Look for homes that are listed below your maximum budget to allow for space for you to increase your bid in case of a situation with multiple offers.

Conditions Don’t Win

When it comes to flexibility, you need to be willing to operate without conditions. While they might give you a greater sense of security in a deal, they also make you much less competitive as a buyer. In Waterloo Region, the homeowners are the ones with the leverage, so you need to be ready and comfortable to make an offer with as few conditions as possible, and in an ideal world, none. 

Prepare a Sizable Deposit

It’s fairly common for buyers to submit deposit checks to the listing agent’s brokerage within 24 hours after acceptance. By having a deposit ready in advance as well as proof to show the owner, you can easily display how serious you really are. In some cases, it can also make you more competitive if you offer a higher deposit than what is being asked for by the seller. 

Make a Sentimental Appeal

A person’s home is a precious treasure trove of memories, and sometimes this can be more important than a percentage point on the price. People who are selling want to believe that their home will be used by a family like theirs, people who will cherish the home as they have. Writing a personal letter, including family photos, and otherwise being sentimental really can work.

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