It is very annoying after months of looking for the perfect house, you find out five other offers that are registered. Most people do not want to even entertain submitting their offer at this time. Sometimes couples decide to go head first and throw their bid in to possibly have their offerings win a bidding war. There are many different strategies to going about winning a bidding war and every situation is different. When you are trying to win a bidding war you must do things that you normally wouldn’t do in purchasing a house. Some of them are risky and sometimes you could pay later even more because of your decisions.
Here are some strategies to winning a bidding war.
1. Remove clauses: Removing financing, home inspection clauses and other clauses are very risky but it is a sure way to entice the seller to accepting
2. One strategy is to offer more than asking and remove conditions before they are accepting offers. This is a very frugal way to win but if you are considering not bidding this could work and give the owners something to think about.
3. Offer a large deposit. A large deposit indicates you have the funds to close the deal.
4. Closing Date: Give them the closing date they desire.
5. Know your highest amount and do not go higher. If you know you cannot spend more than a certain amount do not sway and get into trouble later trying to find thousands of dollars. (This is for your peace of mind)
In the end bidding wars are a lot like poker, you have to bring your best hand and you must watch out for bluffs. A good rule to use is to put yourself in their shoes.
Selling your house in the fall requires some work compared to the summer. In the summer everything looks great. The sunshine is out, the air smells great.
In the fall its cold, rainy and gloomy. You need to make sure when you have showings to tweak your house to have the best possible showings.
Here are some “Bites” for selling your house in the fall.
1. Open all of the lights. Since it is probably dark outside make sure all lights are on before the buyers come in. This will make the rooms look as big as possible.
2. Rake the leaves and sweep the driveway and walkways. Make sure the backyard looks groomed. The grass might not be the greenest, but a well raked lawn looks just as good as the spring green.
3. Bake a pie or cookies. The air doesn’t smell the same but when somebody comes in, bake a pie or a trick is to put some vanilla in the oven just before the showing. Don’t overdue it with the air fresheners, you want to make the good smell authentic. Air fresheners make it seem like you are trying to hide something.
4. Get some pumpkins outside. Its the season of Halloween, some outside decoration will make your house look comfortable. Don’t overdue it either. A few pumpkins on the steps look great.
5. This one goes with the first one. Go to the hardware store and get the brightest bulbs you can find. More light. If you can add some more light it is better.
6. Try to have showings in the daytime if possible. While this is not always your decision, if your agent knows the other one, he can make a suggestion.
Before I speak to clients these days they have already gone to their bank and spoke to a representative about their mortgage. It is a good thing to go speak to somebody at your local bank but I’m here to tell you that your bank may not always have your best interests at hand. While many banks at times will have the best rates, usually at any given point another lender has the best rate in town.
I’m not getting paid by a mortgage broker, but I always tell my clients to get a second opinion from one. I’m not biased against banks, I used to work at one, but if you could save a few hundred dollars a month through another institution, why not?
Simply put, your bank can only give you the best rate that they can offer. A mortgage broker can go to 50 lenders or more and get the best rate for you. Sometimes a lender will give the broker a further discount because of volume mortgages. Now I know some banks will match prices but usually that is through the back end, through a broker who deals with the bank or after you tell them you can get a better rate.
Another key fact is that if you are having trouble getting approved a mortgage broker can also use private funds, depending on the broker and their connections.
In the end it only makes sense to get a second opinion and speak to a mortgage broker. A few hundred dollars a month saved for a year can mean thousands you can lump into your principal and pay down your mortgage faster. Just because your bank is open on Sundays doesn’t mean you should pay more on the other side of your transactions.
The first investment most people make usually is renting out a property they buy or move out of. Its pretty simple, pay your mortgage with tenants rent. Sign a rental agreement and away you go. Most landlords are ignorant because there is much more to tenancy law. In Ontario the law tends to be skewed toward the people renting out your place. There are many laws in effect today because of landlords past evil. While some landlords today agree that many laws are not fair, these laws have come to pass to protect the tenant. In some cases the pendulum has swung too much in the other direction. Renters take advantage of the laws, exploiting them to the last letter. One thing that is for sure, renters know their rights today. With a few clicks, a renter can know every law and exploit you and your property. Do not fathom for one second that renters do not know their rights and how to use you and your property as they see fit.
Here are a few laws direct from Ontario’s tenants act that might make you scratch your head before investing in a property.
1. Even if you signed a lease with a “no pets” clause, if the pet is not a problem for anybody they can not enforce it; such no pets clauses are invalid under the law.
2 .Formerly even under the Tenant Protection Act, the landlord had to have a good reason to come in, such as to make necessary repairs, but now under the Residential Tenancies Act, they can claim it is just to do an No notice is necessary in cases of emergencies, if you give the landlord permission to do so, or in cases where a notice to terminate the lease (by either the tenant or landlord) has been given.
4. If your tenant is going to end your lease at the end date of that agreement and give 60 days notice of that, or are a month-to-month tenant and give 60 days notice, or a week-to-week renter and give 28 days notice, the you can not legally charge you any fees for not renewing your lease.
5. If you do not make repairs on a verbal request, then again after receiving a request in writing and if you do not make repairs in a reasonable time, then call your city Building Inspector to make an appointment for them to come out and look at the problem. If the inspector won’t come then ask to speak to their supervisor. Get a copy of the inspectors report to save for your records.
These are just a few remember they are always watching you if you are a landlord. Be sure to do your homework on a potential renter. Make sure you have all of your basis covered. Remember this is an investment!
I figured I would answer some daily questions I get asked. You might also want these questions answered. I promise not to sugar coat anything and be truthful with no BS.
1. Why is there only one picture?
There is something to hide. The agent is lazy. The agent is a discount broker. The agent thinks that people will come visit the house or property and fall in love with it. The agent wants bogus showings to show the seller that there are showings but the price is too high, then the agent will ask for a price drop and sell the house quickly.
2. Why are commissions so high?
Commissions are what you want them to be. You can negotiate anything you want. Especially with the new changes. Marketing a house, making websites, domains registers, hi-def pictures, videos, signs, pamphlets, social media, gas, cars, overhead and everything else costs money.
An agent that does nothing doesn’t deserve a big commission nor should you pay it. An agent that markets themselves properly and your property costs money. When interviewing an agent ask them what they will do to market your property.
3. Why don’t I just sell my house myself?
I love this one. My answer is always try it out for a few weeks and sell it. If you can sell your own house go for it. If you truly feel that an agent is not worth the money do not pay it. Its like anything, If I could make my own car I would.
Show me your marketing plan, then I’ll show you mine, which ever one is better you choose at the end. Then divide the costs and your time and you see what you time is worth and if the commission is in line.
4. Is it Better to Sell or Buy first?
It depends on your situation and how your house shows and how high the demand will be for your house. In a Sellers market it is better to buy first because you can sell it quickly if you price it correctly.
5. Should I sign a buyer agreement?
Yes, you should sign a buyer agreement. If you want an agent that is committed to you then you should. If you want an agent to come and go or if you are not serious about buying a house then you don’t have to sign it. An agent that has a buyer agreement will work harder because he knows if he finds a house for you, you will buy it.
If you have any more questions feel free to call me or write me anytime