Category: real estate agent (4)

 

multiple offer

How to win a multiple offer

While most Buyers dread being in a multiple-offer situation, with a little preparation Home Buyers can win a multiple offer situation without necessarily paying more money. To win that house you’ve been pining for, you’ll need a battle plan. Here are eight key steps to craft a winning scenario:

1. Address the  potential for a multiple-offer strategy right from the start   When you initially meet with your Realtor, address the  possibility of a multiple offer scenario on any property that you discover and understand your options. Here’s what you need to know:

First, you can enter the negotiation as if you are not competing. Second, if you really want the house and the value is apparent, you can offer close to list price with enticing terms. If you can’t live without this house and the list price is reasonable, then it’s smart to offer full price or somewhat above the asking price. The final option is to simply walk  away if a competitive offer scenario ensues. Run through and discuss these scenario’s and determine how you will handle them if it were to occur without the pressure and emotion of the actual moment upon you. This will provide you a solid framework to reflect on in the heat of the moment, if and when it does occur.

Remember that while you are calling the shots in the negotiation (ie: it will be your house and it’s your decision as to how the offer should be negotiated) you can benefit a tremendous amount from the experience and advice of your Agent who has experienced this event numerous times.

2. Be readily available to view properties and react  This point really attempts to preclude a multiple offer situation, but it is so important that it’s worth mentioning. Make sure you are flexible to view homes at odd times or earlier in the day than most people are able and this will give you an advantage in being the first to view new listings. If you do spot a great home that you know is right then do not delay in offering. You can always add a condition to ensure you haven’t overlooked something but acting quickly could get you the home you want before the competition sees it, and may preclude a multiple offer situation from the outset.

3. Insure a proper presentation   Find out which other Agents have written offers so you know what you are competing with. Your Agent should know the experience and track record of these other Agents. If the Listing Agent has written one of the competing offers then common protocol often requires that the office manager (or other third party representative) be present during the multiple-offer presentation, to ensure the Listing Agent does not unduly favor the presentation of his own offer.

4. Ensure you allow the right amount of time to keep the offers open    Prior to the time you present your offer, ensure that your Realtor enquires about the time parameters required to present the offers. You want to ensure that you have enough time to properly respond while not encouraging yet further offers to enter the competition allowing the negotiation to drag out over a long  period of time. Make sure that you are readily available to accept or counter the Sellers terms – this can make the difference and in some cases your Agent will ask you to wait in the car (or be nearby) while they are presenting your offer in case you need to make any last minute changes to get the deal.

5. Pre-Approval, not  just Pre-Qualification    A good way to be prepared for a multiple-offer situation is to obtain a pre-approval letter from their lender.  “Pre-approval” means that the lender has checked your credit and that you will be approved once the title work and the inspections are  complete. A pre-qualification letter means that the lender has looked at the  application but has not checked the borrowers’ credit. Consequently, you should try to obtain a  pre-approval, over a pre-qualification letter. Make sure that you have this in your file and include it when you present your offer. Better yet, eliminate the financing condition altogether if you are confident in obtaining your financing – first be sure to consult with you Realtor and Mortgage Broker/Banker on the risks associated with doing so.

6. Outflank the  competition    There are a number of ways that you can make your offer  stronger than your competitors’ offers. First, you can allow the seller to select the closing date.
Another approach is to shorten the due diligence periods.  In some circumstances, you may even eliminate the loan or inspection conditions entirely, (for example if you are tearing the home down) but be cautious in doing this and ensure that you consult with your Agent. Often Sellers will take an unconditional offer of less value than a higher offer that has conditions attached. Smart Sellers know that when the stars align and the have a multiple offer situation, this is the best situation they can expect and once everyone sober up from the party (and the property is longer on the market) they may not achieve nearly the same level of interest again

Also try to be flexible about any  special needs the seller may have, such as leasing back the property or taking  something such as the big-screen TV that is currently attached to the property.

7. Don’t be afraid to  ask    While there is no obligation for the Seller’s Agent to disclose what offers are on  the table, don’t be shy about asking. You could ask, “What has the seller turned down?” Whether or not you receive a response is debatable. Many times, especially  when their circumstances may have changed, sellers have ended up taking much less than what they turned down at an earlier date.

8. Be prepared not to get the property   No one likes losing a house that they want. In fact, some  people can become quite upset especially when emotions are involved or you have been looking for some time. Understand that there will always be another property around the corner that comes available and sometimes it’s even better than the one you lost.

Multiple offers can be challenging, but if you will follow  the simple guidelines above, you may be surprised how often you’re taking a closed transaction check to the bank. These suggestions just scrape the surface of the possibilities that multiple offer situations can offer. By far your best offense in these situations is to ensure that you have the best, most experienced Agent possible representing you. Since the markets which multiple offer situations flourish occur sporadically, having access to the broadest depth of experience possible will increase your opportunity for success. Sano Stante Real Estate group has over three decades of expert real estate marketing and negotiating skill that you can have on your side of the table. Call us today.

Selling a home in winter time in  Calgary, or any cold climate offers some unique challenges for homeowners and Real Estate Professionals alike. Here are a few tips to make the best of the chilly weather and cooler market:
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QuestionSometimes the best laid plans simply don’t work out and often for a myriad of reasons. When you are working with a real estate professional to sell your home, you enter into a service contract with the Brokerage that your agent is licensed with. The terms of the contract describe what duties and services the Brokerage will perform to sell your property and the remuneration that you will provide upon the successful sale of the property. Inherent in this contract is that both parties must perform their duties. The Brokerage agrees to market the property based on the marketing plan they committed to and you must allow the Brokerage to perform these services and pay them an agreed fee when the property sells during the term of the contract.

If the Brokerage does not perform their duties as agreed when the property was listed you may have reason to ask that the listing agreement be terminated, but both the Brokerage and you must mutually agree to the termination.

If you feel that you are not compatible with your chosen agent, one option may be to ask the Brokerage to provide another agent with the same brokerage to represent you. In this case you are honoring your original contract and, with another agent on the job, you may receive greater satisfaction.

Keep in mind that simply because your property has not sold is not valid reason to cancel a contract. There are many variables in the marketplace that your agent has no control over and the price that you agreed to to market the property may be the limiting factor. Marketing a home is a collaborative effort that you undertake with your agent as your guide – meaning that you are responsible to allow showings, stage the property, disclose all necessary information and price the property in line with the market based on your real estate agent’s advice. Only if you feel that you have performed all of your required duties, the Brokerage cannot provide an suitable alternate Agent and the Brokerage has not performed the services that you agreed would it be reasonable to request a termination. You may find that the Brokerage will accept that situation and be willing to move on, or if they have much invested and do not agree with your rationale they may decide to hold until the expiry of the contract.

During your listing term industry rules prevent any other REALTOR® from soliciting you to sell through them, however you are free to solicit and interview other agents if, for example, you are nearing the end of your term and hope to get a jump on listing with another agent.

The best solution is always to communicate with your agent about your expectations and then work collaboratively to achieve the best results together. When hiring any agent make sure that you obtain referrals and past reviews and ask them to thoroughly explain their marketing plan so you have full knowledge of what the expectations are. It’s important to ask your real estate agent to be honest with you about the condition (what improvements need to be done) as well as the real price they expect the market will bear. Often we chose the agent who tells us what we want to hear, over the agent who is more experienced and qualified or perhaps most honest in pricing your home. In our experience, this misguided selection is the most common cause of dissatisfaction later in the relationship.

Contact Sano Stante Real Estate Group if you have any questions about how to go about selecting the best real estate professional.

open-housesYes, you can go to public open houses without your agent and you are not violating any “threshold” rights of the Agents. However, it is good practice to indicate to the attending Agent that you are currently working with an Agent (and if you have a Buyer’s agent contract). Providing this information is a courtesy to both your existing Agent and the attending Agent. It makes your open house visit more enjoyable because the attending Agent will leave you be and not bother to try and extract your contact information (other than perhaps your name). You should also notify your Agent when you are visiting open houses because often there may be trade information that your Agent will be able to pass on to make your visit more valuable and he may also choose to notify the attending agent of your impending visit. These are all good practices that make your working with an Real Estate Agent more enjoyable and productive. Remember that if you are wishing to view a property outside of a scheduled an open house it is best practice to contact the Agent that you are working with (the Agent that will be representing you) and Not the listing agent to tour the property. If a situation arises outside these parameters or when in doubt, always call your Agent ahead to avoid any mis-communication.