London, Ontario's sudden real estate market explosion is on everyone's mind. Houses going for well above asking, limited inventory, more buyers flooding in from the GTA are all making for some pretty tough conditions, especially if you're on the buying end of things.
If you're feeling overwhelmed just at the thought of starting the home buying process, here are some key strategies to avoiding going into competition for a home and tips on how to win a multiple offer situation.
How to Avoid the Competition:
- Keep away from the shiny new listing (at least until the listing gets past the 'offers accepted date'). That way, you'll know they aren't getting a flood of offers right off the bat.
- When visiting listings in person, define what is changeable and what is not changeable. If it is changeable, and you are not in a multiple offer situation, you could end up getting a pretty reasonable deal when you go into negotiations.
- Try not to have stars in your eyes when you walk into a listing. Remember: the trendy furniture and cool artwork are all leaving when the sellers move out (unless you write certain pieces into the offer).
- Be open minded and consider other neighbourhoods outside your top pick. Sometimes the obviously choice isn't the only good choice. Just because that's where the crowd is searching doesn't mean there isn't another great option out there. London is full of different neighbourhoods. Get out there and explore!
- Expand your real estate search to outside of the city itself. Many small towns get overlooked but offer a great quality of life, (often times) larger lots with more privacy, all with easy access to London and amenities.
Strategies for Winning in a Multiple Offer Situation:
- Be informed: is the listing price right? Is it in line with previous comparable listings? Your Realtor will be able to do some background research on the property and the comparable sold properties in the area to see if it is priced properly.
- How many other homes in the same area are selling for over asking? There could be a trend in a highly desirable neighbourhood that everyone is trying to get into (and will pay more for).
- How many offers are being submitted for the property you are bidding on. This will give you a good sense of how good of an offer you need to submit to be competitive.
- Make sure you are within your financial budget. It's easy to get swept away with the excitement, but you need to make sure your finances can back you up.
The two most important questions you need to ask yourself when going into a multiple offer situation are:
- Once you have picked your offer bid, will you be happy to win the property at this price (no regrets)?
- If you do lose and your offer is rejected, are you happy loosing the property at this price.
While things feel pretty wild out there in the London real estate market, there are still lots of properties available that are not receiving multiple offers, so, take a second look through what's available. You may just find your next dream home and not have to pay over asking price for it (not to mention the stresses that go along with making an offer with multiple bidders).
Thanks for reading!