The current Guelph real estate market can be tough to navigate, especially as a buyer. The demand for houses is high, but the supply is critically low. You have your work cut out for you as a buyer even when there is a slight lull in the market. What happens when you’ve found a house that you really love but you’re tapped out on the amount of money that you can spend? Fortunately, there are several different ways to sweeten the deal, and not all of them mean having to come up in price.
Go Wylde Real Estate has a plan for you, whether you’re buying your first home, upsizing, or downsizing. Find the guidance you need right here.
Assess the Seller’s Situation
The first piece of advice is to let your real estate agent work their magic and figure out what’s important to the seller. Sometimes, they just want a bigger and better offer and there’s not always a way around it. Other times, the current homeowner will have other priorities that your agent can flush out.
For example, let’s say the sellers have purchased a pre-construction property. Since delays are common, they likely don’t have a guaranteed closing date, so they don’t know when they will actually be able to take possession of their new home. Can you be flexible about your closing date? If so, a clause to extend the date at the seller’s request would be a huge value add. In other words, you get the house you love without overpaying for it, and it’s a win-win for both parties.
Here’s another example. Think of an older couple who wants to downsize but feels completely overwhelmed by the amount of belongings they need to sort through first. To help them, you put a clause in that they could take what they want and leave the rest. That would be a huge relief for those specific sellers.
Communication is the key. Be as accommodating as you can with the sellers, and you may just end up with a home you love at a much lower price than you thought possible.
Accurate information is paramount when buying a house in today’s market. The posts below will help guide you through the process:
- Should You Buy or Rent?
- Home Buying Myths Busted: What Really Saves You Money
- 10 Things To Consider When Buying a Home
Rethink Your Conditions
As a buyer, adding conditions protects you from getting in over your head financially or ending up with a house with more problems than it’s worth. You can put in any clause you like if the market is slow and you aren’t in competition. Conditions of financing, appraisals, home inspection, and the sale of existing property are common terms.
However, if there’s one thing that home sellers hate, it’s conditions. Imagine accepting an offer on your own home only to have the transaction cancelled because the buyer didn’t get financing or they couldn’t sell their own house on time. The uncertainty makes it nearly impossible to plan anything. That’s why a seller will choose an unconditional offer over a conditional one, often even at a lower price.
Your real estate agent can offer you guidance on how you can protect yourself while removing or shortening any conditions in your offer. Here are just a few examples:
- If you do an inspection, you can acknowledge any known defects and agree not to use these to renegotiate after.
- If you acknowledge the roof and furnace are old, this will give the sellers the peace of mind that you won’t try to use that to try to back out of the deal. These steps are especially meaningful if they have had a transaction fall apart due to an inspection.
- If you’re worried about financing, getting a pre-approval ahead of time will let you know how much you are approved for. Then you can confidently remove your condition of financing, thus making the offer more appealing while still protecting your own interests.
Want to know more about how you can protect yourself while still being competitive? Here are some valuable resources you are sure to find helpful:
- Conditions & Clauses to Avoid Putting in Your Home Offer
- What is the Importance of a Final Walk-Through?
- Why Should You Get a Pre-Approval Before Buying a House?
Offer a Higher Deposit
Here’s a scenario that can happen when the market becomes competitive. Imagine a home is listed at $800,000. You know the seller has received other offers, so you go a little over the asking price at $810,000. It stretches your budget, but it’s doable. The question is, how can you make your offer stand out from another buyer with the same strategy and deeper pockets?
Increasing your deposit can do the trick. Increasing your deposit can do the trick. You’re not paying more for the house overall; you’re just offering more upfront as a show of good faith. This instills confidence in the seller that you qualify for financing and can afford the house. It reduces their risk of the transaction falling through – because if it does, they likely keep your deposit.
Buying your first home? Here are some resources you won’t want to be without:
- What’s the Fastest Path From Broke Student to Homeowner?
- The Ultimate Guide for First-Time Buyers in Guelph
- Real Estate 101 for First-Time Buyers
Know What the Home Is Worth
With all of this talk about how you can make your offer more appealing to the seller, it’s important to know what the house is worth so that you don’t go overboard. It’s easy to fall in love with a home, especially when you can see yourself living there and creating so many happy memories with your family.
And if you’ve been outbid on a house before, you may be tempted to extend your budget more than you should. That’s why you need to have a realistic amount with a ceiling that you won’t exceed under any circumstances. A local real estate agent can help by researching any comparables of similar homes that have recently sold in the same area. When you know the true value of a home, you’ll be able to make a compelling yet realistic offer that any reasonable seller would be happy to accept.
Sometimes, a little creativity will help you secure a home your whole family loves while getting the absolute lowest price in the market. Your experienced local real estate agent can work with you to achieve the outcome you want.
Do you want more ideas on how to craft a winning offer without paying more? Our top Guelph real estate agents are committed to getting you the best price and terms possible. For more information, give us a call at 519-826-7109 or email us at info@gowylde.ca.
