by Stuart Neal
on Saturday, April 3rd, 2021 at 10:11am.
The resale market especially for single family homes is HOT. If you are in the market for a home this year, you may have to change your expectations and behavior.
Perhaps the first thing you should do is give up the idea of buying a home with a big discount. Condos are an exception to this rule.
Based on results for the first quarter of this year, homes across Edmonton are selling for more 7% MORE than during the first quarter of last year. They are also selling for more than the first quarter of 2019.
Chances are high that the best homes are going to sell in multiple offer situations.
How can you win? Here are some ideas:
1. Construct an offer with terms and a possession date that will be acceptable to the seller. Ask your REALTOR® to contact the listing agent and find out exactly what the seller is looking for. Don’t guess. Ask.
2. Do your homework on pricing. Again, your REALTOR® can help with this. Offer the most amount of money that your research suggests is realistic. Don’t hold back.
3. Give a bit more than might be reasonable and use an odd price. I have seen this technique used many times in international markets. For example, in London where I used to live, rather than offering a round number like $500,000, go odd. This might push you just above the next best offer and it gets the attention of the seller. For example, $500,666 or perhaps $500,888.
4. If possible, get your REALTOR® to present the offer personally to the seller. In today’s market this no longer considered ‘normal’ but it’s always worth a try.
5. If that fails, then write a nice personal letter. Flatter the seller. Tell them all the things you love about the home and your families plans for it. Sometimes and often if you are trying to buy from ‘downsizers’ who are selling the family home, the letter technique can really do the trick.
And one last thought. Perhaps you choose not to participate in a multiple offer and to wait for another great home listing to come along. Here’s the problem. In a hot market like this, ALL of the best home listings will sell for higher prices and potentially in a multiple offer scenario. Perhaps you should focus on older stale listings or wait until the market changes in 6 to 18 months time.