Guelph is in a sellers market. With extremely low home inventory, homes are selling faster than ever. If you’re looking to buy, you have to come prepared with an offer that will stand out.
As of August 4th, there were only 130 real estate listings in Guelph. Based on July averages of 9 homes sold per day, the entire Guelph housing stock could be wiped out in 15 days! New listings can have several offers before you have even had the chance to see it. With this being the case, not only do you have to spring into rapid action, as a buyer you have to be prepared- not only with a strong offer, but doing a lot of pre-work even before you get to the offer.
Many Guelph buyers these days find themselves in competition with out of town buyers, in particular those from the GTA. Beth and Ryan published this article in GuelphToday discussing how 50% of buyers these days are likely from out of town
Being prepared – before the offer
Say you have decided to purchase a home that you have fallen in love with and you’re prepared to put in an offer. Before you meet with your Realtor to write the offer, you should’ve already visited the bank.
In a sellers market, buying a home in Guelph means you need to be prepared with a bank pre-approval. This will ultimately help you in the end. As a result you can make a more competitive offer on your dream home with financing confidence.
The other major consideration is a home inspection. In a competitive sellers market, submitting an offer WITH a condition of a home inspection is not attractive to a seller. Sellers will compare your offer to one that does NOT have a home inspection condition. Why would someone not have a home inspection condition? Because they did a PRE- OFFER inspection.
Before submitting an offer, you should always do a pre- offer inspection for two reasons. 1/ because you want to ensure that the home you’re going to put an offer on is sound and 2/. because your offer will no longer require an inspection condition and it makes your offer more competitive. Contact Beth and Ryan if you have questions about this process, they’re happy to help!
What exactly is “holding offers”?
“Holding offers” is a term mostly used in a sellers market. It’s designed to get the maximum exposure (and price) for the seller. If you find a home on relator.ca in a sellers market, it’s likely the price you see won’t be the final price.
Holding offers means that the seller has asked to review offers at a certain time, usually a week. At this time, all buyers have their offers to the seller and they review them at once to encourage competition.
When you put in an offer, keep in mind that it’s not all about price. You may be prepared to go well over asking, but the best offer will be the sum of the terms. This could include any combination of price, closing date, deposit, inclusions and exclusions, closing dates and conditions.
Things Will Move Quickly
As you embark on your home search, you will want to see as many homes as possible. If you work with an agent that has a busy schedule, ask to utilize one of Beth and Ryan’s team members, such as Kendra Howe to see the homes on your list. Remember, you will want to move quickly especially when the Guelph real estate market is hot. Your real estate agent will do the best they can to work with you to get you the house you want.
One Last Tip
Writing an offer can be cumbersome and can take more time than you may be willing to wait. The key tip: be patient. Let your Realtor provide the seller and the listing agent with your offer and negotiate on your behalf. Yes, it’s stressful but this is completely normal! Do your best to be patient in hopes that you are able to get your next home.
Suggest to your real estate agent that they outline the details of your offer upfront, either in person, call or email. This will give the seller and listing agent the summary of your offer, and they will appreciate your efficiency.
During a hot market where homes are selling as fast, you have to be diligent in writing your offer so that they will stand out from the rest. For more information on the Guelph real estate market, take a look at Beth and Ryan’s WallerReport.