10 Ways to Get Your Offer Accepted in Today’s Toronto Market

Toronto real estate is always in flux. Buying a house can feel like a dream
when plenty of inventory is available. You have your choice of the best of the best, and the sellers often seem willing to negotiate with you.

It’s a different story when the market begins to shift. The experience goes from pleasant to frustrating in short order as you find yourself up against multiple buyers. Suddenly, you’re the one who has to go all out to impress the seller.

Often, it’s a simple matter of increasing your bid. Just remember that while money is almost everything, there are other ways to make your offer appealing that don’t mean overpaying for a home. In this post, we’ll reveal 10 tips to help you win even in a hot market.

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1. Make Your Offer as Straightforward as Possible

All sellers (and their listing agents) dread complex offers with a ton of conditions and unnecessary clauses. They likely have plans of their own that are on hold until every box is checked. If the transaction falls through, they’re back to square one. It’s even more stressful for them if they have an offer on a new home for themselves. That’s why they are more likely to consider your offer when it is clean and clear.

That’s not to say that you can’t use conditions to protect yourself. However, you can clear many of them with a little advanced preparation. For starters, you can get pre-approved for your mortgage before you place your offer. When the lender has already given you the green light, you can safely drop the condition of financing without worrying about whether the bank will approve your loan.

In addition, you can confidently place offers without the condition of sale if you sell your existing home before you begin searching for the next. This is usually the best path for most buyers, but the market is nuanced, and everyone’s situation is different. An experienced real estate agent can help you decide on the best course of action.

Your buying strategy should always reflect what’s happening in the current market. The resources below will help you make informed decisions:

• Real Estate Jargon-What It Really Means
• Know the Real Estate Cycles and Hack the Market
• Is It a Good Time to Buy or Sell a Home in Etobicoke?

2. Avoid Unnecessary Inclusions

You might be in a position to negotiate for a few extras during a buyer’s market where you have the advantage, but you still need to be careful about not pushing too far.

A seller’s market changes the dynamic completely. A good rule of thumb is not to ask the seller for their personal items that are not in the listing. Also, avoid making assumptions that anything will be included unless stated otherwise. Many people will leave behind their appliances and other heavy items to start fresh with their new home – just don’t take anything for granted.

Operate under the assumption that if they did not include it, they probably want to keep it. While certain exclusions may be a dealbreaker for you, we recommend choosing your battles carefully. We have seen deals fall through over something as small as the drapes!

3. Discover the Seller’s Motivation

For the best chance of having your offer accepted, it’s time to put on your detective’s hat and find out what’s important to the seller. Better yet, allow your buying agent to do some research on your behalf. Anyone selling a house has a reason for it.

They may want to downsize or upgrade their family to something with more space. Or they may be facing a circumstance that requires them to sell quickly, such as a divorce or a sudden job offer in another city. In any case, knowing what matters most allows you to craft your offer with the seller in mind.

If you discover the price isn’t their top motivation, you may be able to pay less by being flexible about your closing date or inclusions. When you’re armed with as much knowledge as possible, you can often compete with other buyers without offering more than you need to for the house you love.

Are you looking for more tips on finding the right house and getting the best possible deal? The posts below can help:

• What Will It Really Cost to Buy a House in Toronto?
• How Not To Overpay For Your New Home
• Where Is The Best Value In Etobicoke When Buying A Home?

4. Arrange for a Home Inspection

Technically, this suggestion may fall under the heading of keeping your offer clean. That said, every buyer wants to make sure they are not getting a property full of problems, so home inspections are important enough to warrant a separate discussion.

It isn’t always necessary since some sellers will provide a pre-listing inspection before putting their homes on the market. Their reason for this is to encourage unconditional offers.

If the seller doesn’t provide a pre-listing inspection or you want to be sure of an unbiased opinion, you can include a condition of home inspection in your offer. Just keep in mind this will delay the process since the typical inspection period lasts for five days. In the worst-case scenario, you might lose out on the home if another buyer drops the condition.

Fortunately, there is another option. Consider doing your inspection BEFORE you put your offer in. This way, you can proceed with confidence that the house is safe and suitable while making your offer clean and compelling.

What homes are available in Etobicoke? You can see all our featured listings right here.

5. The List Price Isn’t Necessarily the Final Price

In a competitive market, you may have to offer more than the listing price right out of the gate. Really? Yes. Really.

Your buying agent will work hard to negotiate with the seller to ensure you don’t overpay based on what the market will bear. However, no one can work miracles, and purchasing a house is not like any other commodity. It’s not like going to a store to buy a tangible product where the price is more or less set in stone.

When the market is hot, housing values tend to soar. Being too aggressive with negotiations can backfire if conditions aren’t in your favour.

The flip side of this is that you still need to act cautiously, even if you’ve taken the time to get pre-approved for your mortgage. The lender will only be willing to cover fair market value for the house, not an artificially high price due to a bidding war. Your agent may suggest moving on to a different listing if the situation gets too competitive.

Should you work with an expert when buying your home? You don’t want to go without representation, especially in a tight market. Here’s Why Working with a Local Etobicoke Realtor® is More Critical than Ever.

6. Increase Your Deposit

The down payment is the total amount of the purchase that you will cover without a mortgage. This can be anywhere from 5% to 20% depending on the price of the house. The deposit is the part of the down payment that you pay right away, within 24 hours of the seller accepting the offer.

If possible, we suggest offering the seller a higher deposit to show you’re financially strong and serious about buying the home. Imagine one buyer offers a $10,000 deposit, but you come in at $15,000. If everything else is the same, the seller will likely choose you – and you’re not even paying more for the home! This is one of the best-kept secrets for buyers who want to stand out in a multiple-offer situation without going over budget.

7. Get Pre-Qualified With the Preferred Lender

A pre-qualification is different from a pre-approval in that it’s less involved and no credit check is required. With that in mind, it doesn’t hurt to get pre-qualified with the listing agent’s preferred lender, especially as a first-time buyer.

This doesn’t mean you have to finance the home with that particular lender. It will just reassure the sellers that you really are qualified to purchase their home. It also shows that you’re willing to compromise and work with the existing homeowner to streamline the entire transaction.

8. Write a Letter

You may have heard that writing a letter explaining why you chose the seller’s home and why you want to live there can help set you apart from other buyers. Does it work? The answer depends on who the seller is and why they’re selling. For the most part, real estate is a business, and money is usually the defining factor.

Many homeowners are counting on earning the maximum profit from their sale to move on to whatever comes next. All the same, a heartfelt message can be the small difference that tips the scales in your favour.

Imagine a long-time homeowner who has raised their family and who has a strong emotional attachment to that house. If it comes down to a young couple who wants the house for a family of their own and an investor who plans to tear it down to build a McMansion in its place – the seller may very well choose you. It doesn’t hurt to try in any case.

Never underestimate the value of human bonding and connections, even when it comes to real estate. You may even include a photo of your family, if you feel comfortable doing this.

Are you searching for a home for your family? Often, your decision comes down to what schools are available in the neighbourhood. Here’s How to Find Great School Options in Etobicoke.

9. Have Your Documentation Ready

Make sure you’ve provided all of the required documents with your initial offer. Even if you are the highest bidder with zero conditions, you still need to prove that you can follow through. If a listing agent receives multiple offers, one of the first things they will do is throw out the sloppy and incomplete offers no matter how great they look on paper.

You may not have to show every piece of documentation upfront, but it always helps to be prepared. You can start by gathering your photo ID, proof of income, your letter of pre-approval, any financial statements, and your confirmation of a down payment into a labelled folder. This way, you have everything at your fingertips if time becomes an issue.

Selling your existing home allows you to leave out the condition of sale, which can strengthen your offer. The posts below can help:

• What Are The Fastest Ways To Add Value To Your Home When Selling?
• Can You Earn More Money By Staging Your Home?
• My House Didn’t Sell. Now What Should I Do?

10. Put Your Best Foot Forward

Creating a compelling offer can be challenging in a heated market. On the one hand, you don’t want to overpay or compromise on terms you feel aren’t negotiable. But if you don’t make your best offer right away, you may not get a second chance.

Much thought and analytical research will go into your initial offer to be sure it makes an impact. Working with an experienced real estate agent and doing your homework ahead of time can put you in the strongest position to negotiate.

• Before beginning your search, determine what kind of market we are currently in. Do conditions favour buyers or sellers? Knowing what you’re up against will guide all of your decisions going forward.
• What is the absolute maximum you would be willing to pay for a particular house? In a multiple offer scenario, lead with that. Just be sure to factor in any renovations you will want – and don’t forget about home appraisals or closing costs.
• Know your ceiling and be ready to walk away if necessary.

Working with a real estate agent with experience in all types of markets will help you stay objective and avoid making emotional decisions. Buying Toronto real estate during competitive conditions takes patience and persistence, but don’t give up. The right home is waiting for you. Good luck, and happy house hunting!

Do you want personalized service when finding your next home in Toronto? Our South Etobicoke real estate agents are here to guide you through every detail. Connect with us today at contact@thompsonsells.com or call 416-450-5900 with any questions or to get started.