Buying a Home in a Competitive Neighbourhood
Buying a home can be a truly rewarding experience, especially if you manage to secure a property in a neighbourhood where you’ve dreamed of living for a while! But remember that buying into a popular and competitive neighborhood can often be a challenge, as high-demand properties sell fast and often above the asking price. This means you’ll have to be prepared to jump on a prospect the moment it hits the market and beat the competition!
Here’s what you can do to buy into a popular neighbourhood, even in competitive offer situations and be ready to jump on an opportunity as soon as it arises.
Target the Area: Your first step is to start targeting that area now. Find out about property types, prices and trends. In particular, you’ll need to know what price range you should be thinking about, and making sure that it’s going to fit your budget. To do that, you might need to get a determination of the Fair Market Value of your current home. By definition ‘Fair Market Value’ refers to the highest price you can possibly get for your home in an open market. Once you’ve established your budget, keep an eye on the area and be ready to spring on any listings that may catch your eye. If possible, make arrangements to get alerted to new listings as soon as they come on the market. Keep in mind that a new listing may not appear online for several days. By getting advance notice, you can be among the first buyers to see the home and have an early advantage over other buyers.
Get Pre-Approved! I can’t stress this step enough. Getting yourself pre-approved for a loan gets you one step ahead of the game. Sellers are more likely to lean toward accepting your buying offer if you have a pre-approval behind you. Goes to show you are serious about the property and will follow through on your transaction.
Sweeten the Deal: Pad your offer with perks that are difficult for the seller to turn down! In most competitive markets, expect to pay more than asking and work with your realtor to come to reasonable but aggressive offer that won’t completely derail your budget. Offering more money than your competitors is the easiest way to make your offer stand out and secure the property. Presenting a non-conditional offer is also very appealing to sellers and may sway them in your direction, as it saves them a great deal of hassle. Abandoning your contingencies is a slightly riskier game-play, especially if there are issues with the home that may need addressing, but the added task of dealing with the issues yourself just may be worth the trade-off.
Prepare Your Home: Next, begin making preparations so you can get a jump on opportunities in that neighbourhood quickly. You don’t want to see a great property come on the market and not be ready to make a move. So, get your current home in order so it’s ready for a quick listing. Keep up-to-date on your home’s seasonal maintenance by inspecting the property routinely and tending to any of areas of the home that need some extra attention. Ensure the home is tidy and decluttered. Fix what needs fixing. Consider repainting to freshen things up and keep retaining the quality of your home as if you were getting ready to sell tomorrow.
Be Willing to Make Compromises: Everyone has expectations for their dream home, but you’d be surprised how many prospects arise when you are willing to be a little more flexible. Don’t completely shut the book on a home that doesn’t check all your boxes right away. Sometimes all a home needs is a keen eye and a little extra elbow grease to transform it into exactly what you’re looking for. Renovations can make all the difference, so broadening your expectations may lead you in the direction of a great deal you’d otherwise overlook.
If it’s likely there’s going to be competing offers for the home you want, practicing the above strategies can really increase your chances of winning. Is there a neighbourhood you want to get into? I can help make it happen. Call or email me today!