Competing Offers In Todays Market! What Should I Do?
Suddenly, the market has shifted, and that much is clear to everyone. Homes are taking longer to sell, and we are starting to see price reductions across various market sectors in London. At the same time, competing offers on properties have become less prevalent. However, occasionally, we still see some properties receive competing offers. Given these points, if you find a home you want, should you compete against other offers?
The answer is… it depends.
Let’s take a step backwards.
What Are Competing Offers?
Competing offers or “multiple offers” is the process of more than one person trying to buy a house simultaneously. From 2019 to the beginning of 2022, it occurred daily on almost any listing. An offer date would be set, and everyone would submit offers simultaneously. Suddenly, every house started getting more than one offer, resulting in a dramatic increase in prices It certainly wasn’t an enjoyable way to try and buy a home, but it was the only option we had.
What Has Changed?
Take your pick: Inflation, Interest Rates, Recession, and perhaps just general exhaustion with the real estate market and the last few years of madness. Combining all these together, and suddenly, you end up in the last few quarters of 2022 with real estate marketing experiencing some serious cooling.
Will The Market Come Back?
Like everything, the real estate market is cyclical. What I do know is this:
- If we enter a recession, the main tool the government will use to fight it is lowering interest rates. This is what started the market on the path to multiple offers in the first place!
- Canada has a massive housing shortage. From family homes to rental units, Canada needs them all and fast. High demand and low supply is going to drive the market back up as well, eventually.
Given these facts noted above, It is reasonable to assume that at some point, we will return to multiple offers on most properties.
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What Is The Answer?
This is how I see it:
- YES, you should compete if you want the house.
- NO, you should not pay over the asking price for a property
- NO, you should not submit an offer with no conditions
At the present time, other homes will come on the market that you 100% will not have to compete for; as a matter of fact, your home is likely the largest single investment you will ever make. Make it a smart one!
At any rate, make sure you are taking advice from your Realtor, Mortgage Advisor, Lawyer, or anyone else you trust.
Equally important to remember is that you are in charge, nobody can stop you from making an offer on your dream house even if you do have to compete with someone else.
Happy House Hunting & Selling
Want more details on the current market? You can find more details on the current market here: London & St Thomas Association of Realtors.
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Want more details on the current market? You can find more information about the current market here: London & St Thomas Association of Realtors.
