Now that Covid19 has turned our lives upside down : someone has lost their job, someone has lost a significant portion of their savings due to the fall in stocks on the stock exchange, some homebuyers think that they can buy a house in this situation for much less than the initial price.

I have to disappoint them, the Montreal housing market is currently in a “seller’s market” situation. As you already know, 2020 and 2021 were record-breaking years for property sales in Montreal, and 2022 started with sales at prices above the initial sale price. This means that there are more buyers on the market than properties for sale. This situation occurs when the seller receives several offers to buy his house/condo. This happens when the object is listed at a low or adequate price and / or has good characteristics (location, area, parking, etc.).

There is a situation with several proposals for the purchase (offer) for one house. Are you a buyer and planning to buy a property in the coming months? Here are some tips that will definitely help you find the best strategy for buying property.

How can a buyer stand out from the competition? Here are my 5 tips.

Tip # 1. Have a good professional next to you.

To determine the price, the realtor has statistics of the sold similar houses / condos in the same area in recent months. Usually the buyer is stressed, especially in such a situation. Your realtor will advise you to keep an evenness of mind and not overestimate your abilities. Instead, consider how much you would like to purchase a property for and stick to that amount.

Tip #2: Get Mortgage Pre-Approval.

Choosing from 2 offers with the same price, the seller will give preference to the buyer who has already received a preapproval letter from the bank about the maximum mortgage that he can get. The seller will be sure that he will not lose 2 weeks waiting for the confirmation of the buyer’s creditworthiness.

Tip #3. Consider all the conditions of the purchase.

The offer contains several conditions for the purchase, except for the price. For example, the date of signing the purchase / sale agreement, the condition for the inspection, etc. It is best to ask your real estate agent for advice on what conditions will help you win the auction.

Tip #4: Present yourself in the best light.

Sellers are emotionally attached to the home they are leaving, and they will certainly want to get to know the future people who will live in their home. Your realtor will give you the best recommendation, which can make all the difference when sellers choose a buyer.

Tip #5: Give a bonus or be second in line.

If you know that you are competing with other buyers and the seller has not yet accepted or refused your offer to buy, you can improve it – offer a higher price, change the terms of the purchase, etc. To do this, your realtor will ask you to fill out a special form and send her after your offer. If your offer is still not accepted, your realtor may offer the seller to accept your offer second in line. Thus, if the first offer is canceled (the bank did not give a mortgage, the buyer refused to buy after the inspection), your offer automatically becomes the first.

In conclusion, the best advice I can give you in a multiple offer situation is to be patient and ask all your questions to your real estate broker.

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