If you're trying to buy a home in Nanaimo's most popular areas you may be surprised to find yourself in the middle of a bidding war.
Home sellers who have priced right and have their home on the market in the most desirable locations often are able to attract multiple offers at the same time. So what do you do if you've finally found your dream home, only to discover that two other buyers also want to make your house theirs?
Here are three ways to win a bidding war in Nanaimo when there are multiple offers:
1. Put your best offer forward.
Often times both home buyers and sellers expect a number of negotations to go on before a final price and other sales terms are agreed to. That may be fine if you and your realtor are positive that there are no other interested buyers, but a multiple offer situation can force buyers to change their tactics. That's because instead of just negotiating with the seller, you're also negotiating against the other buyers who want the home that you do.
2. Limit your number of contingencies.
As a home buyer you have certain rights, or contingencies, in the purchase contract that allow you to cancel the purchase if you decide to. While that's good for you as a buyer, it's bad for the home seller because it means your deal could fall through. Pretend you're the seller and that you have three purchase contracts to review, all with the same purchase price. Offer #1 has the normal contingencies of inspection and financing, Offer #2 has these plus a contingency for selling an existing home first, and Offer #3 is a cash offer with only the inspection contingencies. Which offer would you choose?
3. Know what the seller's motivation is.
This is an area where a good buyer's realtor can make a world of difference. Contrary to what many home buyers believe, price is not always the most important point that a seller is looking for. Some home sellers in Nanaimo are looking for a quick close, others might be looking for a purchase offer that has the minimum number of contingenices, while other sellers may simply like you and your realtor better because they believe you are the most motivated buyers from among the multiple offers they have on the table.