Delayed showings and delayed offers –benefits for buyers and sellers:
I’m sure we have all heard about the bidding wars, multiple offers and homes selling for much more than the asking price.
What makes this happen? Well it’s pretty simple… we have more people buying than selling. This is what we sometimes call “a sellers market”
What are DELAYED SHOWINGS and DELAYED OFFERS and what does this means to you as a buyer and a seller
As a seller if you want to take advantage of a sellers market and you make the decision to delay showings and presentation of offers you are doing this because you are hoping to generate multiple offers on your property. If you use this strategy you may be required to sign a form of “irrevocable direction” showing that you completely understand the directive you have agreed to.
Once you agree to delay showings and offers this information becomes part of the Listing contract that you have signed and it is posted on the Canadian MLS web site for all realtors and buyers to see. Therefore if a showing occurs or an offer is accepted-or countered prior to the stated deadline-the listing agent can be subject to disciplinary action.
To the BUYER -Delayed showing means your realtor can not show you the home until a certain date and DELAYED OFFERS means that the Listing Agent can not present any offers until a specified date and time.
How have these delays affected you?
The answer is you have seen Multiple offers, condition free offers, bidding wars, and homes selling for more than the asking price.
How can a buyer handle this market without making mistakes. Is there a way that a buyer can take advantage of the delayed showings and delayed offers situation? The answer is Yes.
Here’s some advice.
First use the time before you can actually see the home to do some homework. Talk to your realtor who will help you get educated by providing you with recent historical data. This will help you make an informed decision when and if you are ready to make an offer
1. Learn everything you can about the neighbourhood - schools, parks, available amenities which are important to you. Find out what homes have been selling for in the area. Find out how many homes have sold at list or above list- in recent months?
Talk to the neighbours and see if you can find out any important information which might may be valuable in helping you make a right decision.
2. Talk to your banker, get pre- qualified and make sure you understand what you can afford to purchase. Your mortgage broker will work closely with you to help you understand the process and they will make sure you know what monthly payments will be comfortable for you. Make sure that your bank or credit union will support you in your decision if you choose to move forward with an offer. They can provide you with an approval letter of pre- qualification which can be included with your offer to purchase.
If you can- we still think that it is advisable for you to make your offer subject to financing and when you attach an approval letter it shows the seller that you have done your home work and financing arrangements are in place.
3. INFORMED VIEWING
When you actually view the property for sale –you do it with all the information at your disposal.
-You are familiar with the neighbourhood and the market conditions of the area.
-You know that you have the support of your lender in place. –Now you can confidently make the decision that is right for you.
If you are interested in the home use the window of time before the offers are to be presented to do your due diligence.
Arrange a home inspection, confirm your banking arrangements, confirm any renovation and or improvement costs you may want to do after you move in, talk to your support group –like parents, friends etc.
You can do this all before you write your offer because you have the time to do so.
When you write your offer you can do it knowing that you have taken everything you can into consideration and you have all the facts about the property available.
You now have used the “delayed viewing and delayed offers” times to your advantage by gathering all the information you need to make a decision and doing any inspections before you fill out the paper work not after!