by Nutan Brown
on Tuesday, February 23rd, 2021 at 11:30am.
The Canadian real estate market is expected to sit in seller’s territory for 2021. This is great news if are considering selling your home. But those who have their sights set on buying a home this year will face some challenges. Here are 4 tips for buying in a seller’s market.
Make Your Offer Simple
Buying a home isn’t only about price. Most offers include contingencies that need to happen to move the deal forward. Sellers tend to view these contingencies as potential risks for a deal to fall apart. In a seller’s market, removing or reducing the contingencies can make your offer more competitive.
All-cash offers are often preferred by sellers because they close faster and eliminate the potential of the mortgage not getting funded. For this reason, a full cash offer may even be more attractive than a higher big that’s mortgage dependant.
Get a Mortgage Pre Approval
If making an all-cash offer is not an option, getting a mortgage pre approval is the next best option. This sends a clear message to the seller that you are not only highly motivated to buy the home, but also ready to close the deal. When all else is equal, a seller will prefer an offer from someone who is pre-approved to minimize their risk.
If all else fails, you always have the option to expand your search to other areas. Beautiful neighbourhoods that check all the boxes are often overlooked because they don’t have as much media coverage. Going a little farther away from the most popular areas often allow for more square footage and better amenities for less money.