Competing Against a Cash Buyer!
In the Collingwood, Wasagabeach and Blue Mountains property market a cash buyer is king. Offers with few or no conditions are more and more common, squeezing out the everyday buyer looking to upgrade their home. Many ‘would be’ sellers are sitting on the market because there is no place to buy – homes are listed and sold so quickly that it makes everyone’s head spin.
So what is Joe and Jane Collingwood resident to do? If you want to upgrade your Collingwood home. Here is a strategy that can turn you into a cash buyer or as good as cash buyer.
Get a Good Realtor and Banker
These two professionals will be your best friends in guiding you about different finance options and market conditions for what your home is worth and what your next home will cost.
Work with your banker and analyse the small print on your existing mortgage to see if your mortgage is portable, or if you will incur penalties for changing it or moving it to a new property.
Have your REALTOR® complete Market Value Assessment of your home with VERY recent comparables. Be honest and not overly optimistic with this stage. Look at where you want to move and determine the market value of your new property.
With this information on hand discuss the mortgage options with your Banker and get your paperwork in order.
Beat competing buyers to the punch by selling your property first! Yes! It is a buyers’ market and as the seller you have the power. For example, ask for a long closing, say, 90 days with a possible extension to 120 days. Many buyers will jump through hoops for a property they love.
Now you know how much cash you have and your Banker can pre-approve you for your new home purchase. It’s time to go house shopping!
This is where your REALTOR® earns their commission. They should be on the ball telling you what is coming up before it hits the market. In this case bigger is better. A larger brokerage will most likely have more listings and more ears to the ground about properties that are coming to market.
Act Fast. Be prepared to act fast when you see the property you like. Be flexible on when you can see properties and when one comes up that suits you be ready to act.
Eliminate conditions – if you are going to renovate. For example don’t inspect the wood fireplace (WETT) if it will be replaced by a gas one. Go over the conditions with the REALTOR® and determine which ones you can live without. Collect and review any documents beforehand. Have a home inspection completed before putting an offer in.
Finance Clause this is a necessity. Your REALTOR® should be completely versed on your financial position and able to articulate that your home is sold and you are pre-approved. The bank just needs a property to put on the application to be approved.
Presenting Your Offer. Insist on having your offer presented in person. This will add a human touch to the process. Your REALTOR® will be able to answer direct questions about your offer and possibly negotiate at the kitchen table more suitable terms for both sides.
With the fast paced market the successful buyer has to have a strategy to buy their next Collingwood Property. This is one way to work the market dynamics to your favour.
If you are looking to buy or sell please contcat me and I can find you that dream home.