Dennis Philps

Recently in Edmonton, I have been involved in several multiple offer situations on properties that have been on the Edmonton Real Estate Board listing site on the first day.   This is not an uncommon scenario in March 2010.  Many buyers are looking for homes ahead of the proposed mortgage changes coming in April.  This situation says two things to me.

First, a word to sellers.  It is a great time to be selling!  However to get the kind of activity that I have just described, your home must be in tip-top shape and priced aggressively.  Serious buyers have been searching for some time and are very familiar with good value and ‘over-priced’ listings.  Priced right at the beginning gives you a competitive edge.

Second, buyers need to be prepared to enter a real estate environment where the advantage is tipped in favor of the seller for the best properties.  In order to compete, buyers MUST have secured a written MORTGAGE PRE-APPROVAL in advance.  Next they need to be as flexible as possible to fit in with the seller’s wishes.  Then they must be prepared to put a substantial cash-down-payment of at least $5000 as part of their offer to purchase.  Furthermore, they must be prepared to put as few conditions to their offer to purchase as possible [eg., financing and a home inspection] and have them removed as quickly as possible [4 0r 5 working days].  Finally, on select properties, they must be prepared to offer more than the listing price.

How much higher should you offer?  The answer to that question depends on: (a) what your financial restraints might be; and (b) whether or not you can comfortably walk away from that home or condo if the other offer [or offers] out-bid you!  It would not be unheard-of to have an offer $5000 or more above the asking price.  If you lose one offer, move on quickly to the second with your realtor!

In this market, it is fun to be a seller and aggravating, at times, to be a buyer!

Need some professional help?  Call me!  I will be happy to guide you to a successful conclusion!