If you have been watching our local market, you are well aware that the multiple offers trend has come to Niagara in full force.
In recent years, multiple offers or competing offers happened but were not at all the norm. The norm was 42 days on the market, 3 open houses, an offer, 4 days of negotiations, 8 days of conditions and a firm sale.
The “new normal” is 8 days on the market, no open houses, 6 offers, little or no negotiations, 48 hours of conditions (if any) and a firm sale.
Does this type of market require strategy? It most certainly does. In fact, a market that is this razor sharp requires even more of a strategy as the pace is so much quicker. The marketing and presentation of the home must be concise and professional in order to attract the most attention in such a short, highly leveraged period of time. The Seller side of things will be covered in another blog.
As a buyer however, there is a whole new set of expectations and concern. Many of us in Niagara are not used to this type of market. We see it on TV and read about it all the time. Homes in the GTA selling for $96,000 over asking. Or $196,000 over asking! 11 offers, 52 showings and a flotilla of buyer drive bys.
In light of this, it is understandable when a buyer’s first instinct is to take 3 steps back and say no thanks. The important fact to remember is that 1 offer or 3 offers or 7 offers does not need to affect what you are ultimately willing to pay.
What needs to change is your strategy.
It may be a pre-inspection which allows you to offer without the home inspection condition. It is a case of risk and reward that may be worth considering. Rather than negotiations back and forth, if you are 1 of several offers, you will likely be advised to “put your best foot forward”. It doesn’t mean you are going to need to pay more than you are comfortable. The difference will be the negotiation and how an agreement comes together.
What is driving this? Quite simply, multiple or competing offers typically happen due to a seller’s market. A market where the demand outstrips the supply. It’s a market where there are 3 buyers for every home.
So, yes competing offers are a part of our landscape these days. A changing landscape often requires a change in strategy. While the strategy for sellers has changed, so too must the strategy for the buyers.
To meet with a member of our team, please do not hesitate to contact us. We will be glad to make sure you are well taken care of.
Thank-you for visiting.