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Multiple offers

In hot markets, it is common for many buyers to take interest in the same property. The result is multiple or competing offers written and presented to the seller.


In a competition, a buyer should make their best offer, their first offer. It’s unlikely that they will get a second chance. 


Buyers should ask their REALTORⓇ to confirm how many offers will be presented when the offers will be presented and if the listing REALTORⓇ is also representing a buyer with an offer. 


A seller has no obligation to counter any offers. Those offers which are not accepted by the sellers should not accept more than a response indicating their offer was not the winning bid. 


A full-price offer does not always guarantee a buyer will win a competition. The true value of a home is what someone is willing to pay. Many buyers will pay above the asking price to get the house that they want.


Sometimes offers are so similar that a seller may reject them all and asks buyers to resubmit their best and final for consideration, as a buyer you are under no obligation to do so and may leave your offer stand as written, adjust your offer for resubmission or rescind your offer altogether.


Hot markets can be a frustrating, confusing and stressful time for Buyers. Buyers must have their financing in place prior to writing an offer when competing or otherwise. 


In certain situations, a listing REALTORⓇ will delay offers on a property for a few days in order to allow multiple potential buyers an opportunity to view. This can sometimes work in the seller’s favour as multiple offers are usually a benefit to the seller however if an interested buyer is told they must wait they may find another property in the interim or decide they are not willing to be a party to a multiple offer situation and the seller may never get an offer from that buyer party.


Multiple offers can not be prevented and are a component of a hot market. Buyers may hate the idea of a bidding war, worrying they will either get caught up in the competition and pay too much and opt not to take part in multiple offers altogether. 


Regardless of your opinion, it is important you work with a professional REALTORⓇ with experience in how to handle the very stressful situation of multiple offers.


*** Tips for Buyers in multiple offers ***


1. Dollars and Deposits

Many people focus on the offer amount as the major decision-making factor. Although it's true that money talks there are other important aspects of the offer to consider, including the deposit amount.

Some sellers will see a large deposit as a stronger offer. It can give sellers comfort that the Buyer is serious and have monies to put down, reflecting that their financing may be stronger than other offers being considered.


2. Conditions

The type, number and length of conditions placed on an offer can have a large impact on how an offer is received. Many times in multiple offers Buyers remove all conditions, this of course makes your offer very appealing but it is very important to discuss the ramifications of offering unconditional with your REALTORⓇ. If you choose to place conditions on your offer consider that have a shorter condition period may be more attractive to a Seller, many Sellers see their properties as being “tied up” once a conditional offer is accepted, the shorter that time frame is the more comfortable a seller is likely to be.


3. Dates & Timing

The closing date can play a big part as well. If a property is vacant, most of the time a sooner possession date would be more attractive to a Seller. Consider a scenario when a very long closing or very quick closing would be of more appeal to a seller than the dollars and cents, should those amounts in the offer all be relatively close. Some sellers may want cash and a quick closing, versus a bit higher dollar amount. Others may have reason to prefer a longer closing to put things in place with their next move or build. 


4. Inclusions

When you are in a multiple-offer situation as a buyer, you might want to consider leaving out that extra item you were hoping the seller would throw into the deal. Chances are that your idea of the value of that item is much different than the seller’s perception and can be the reason your offer is not chosen.


5. Professionalism 

Ensure your offer is written properly and professionally. A REALTORⓇ representing a buyer in multiple offers who is professional, who drafts an offer that is easy to read and done correctly and who communicates well can be the tipping point for a buyer to win in multiple offers.


The Viani Real Estate Group has years of experience and has dealt with multiple offer situations many times, contact us today to help you navigate this process.


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Sellers' Market In February Leads To Rising Prices
With gains in every price range, residential sales activity in February totalled 1,836.

This reflects the best February since 2014.


“Despite continued COVID-19 restrictions, housing activity continues to improve. Much of the strong sales activity is expected to be driven by exceptionally low mortgage rates,” said CREB® chief economist Ann-Marie Lurie.


“Confidence is also likely improving as vaccine rollouts are underway. Additionally, some of the worst fears concerning the energy sector are easing with recent gains in energy prices.”


New listings also improved in February, but the gap between new listings and sales narrowed. This is causing the sales-to-new-listings ratio to rise to 65 per cent, keeping the months of supply well below three months.


Conditions are far tighter in the detached sector of the market, especially for product priced below $600,000, where strong sellers’ market conditions are present with less than two months of supply.


The market has faced relatively low inventory levels compared to sales for the past several months and prices continue to trend up. In February, the residential benchmark price rose over the previous month and currently sits four per cent above last years’ levels.

 

Detached product has the lowest months of supply and is also exhibiting the most significant gains in prices. On the opposite end of the spectrum, the apartment condominium segment still has a relatively high level of inventory compared to sales, which is impacting price recovery for this property type.


HOUSING MARKET FACTS

Detached

Detached sales improved across every price range this month, but the lack of choice in the lower price ranges likely placed limits on the gains in sales.


New listings did rise, but it was not enough to prevent further tightening in the market, as the sales-to-new-listings ratio rose to 71 per cent and the months of supply fell to under two months. This is the lowest months of supply recorded in February since 2007.


Tighter market conditions occurred across all price ranges, but properties priced below $600,000 saw the months of supply fall to just above one month. These conditions are supporting significant price gains in the detached sector, which recorded a February benchmark price of $502,500. This is nearly two per cent higher than last month and five per cent higher than last year. It is also the first time since 2018 detached prices have risen above $500,000, and currently sits under five per cent below previous highs recorded in 2014.


Prices increased compared to last month and last year in every district of the city. However, the magnitude of those increases varied, with the largest year-over-year gains occurring in the South East district at nine per cent, and the lowest gains occurring in the City Centre at under two per cent.

 

Semi-Detached

Semi-detached sales in February recorded significant gains, pushing sales activity to the highest February levels seen in nearly 13 years. However, like the detached sector, the improvements in new listings were not enough to offset sales, ensuring this sector continues to favour the seller.


With lower levels of supply relative to sales, benchmark prices improved over both last year and last month. However, this was not consistent across all districts. The West district continues to see prices that remain over two per cent lower than last year’s levels. The strongest year-over-year price gains were reported in the South East and North districts.


Row

Despite a significant increase in new listings, improving sales offset the gains and the months of supply fell to three months.


Conditions for row properties are not as tight as what we have seen in both the detached and semi-detached sectors. However, they do reflect an improvement relative to the oversupplied conditions recorded last year. However, when considering activity by price range, pockets of oversupply persist in this market.


Citywide reductions in inventory relative to sales supported some price improvements in this segment. The benchmark price trended up from last month and currently sits just over one per cent higher than last year’s levels. Year-over-year gains did not occur across all districts, as prices remain lower than last year’s levels in the North, North West, South and South East districts.


Apartment Condominium

Driven by product priced mostly under $300,000, apartment condominium sales improved to best February levels recorded over the past six years.


However, the gain in sales was not enough to cause any significant changes in inventory levels. February inventory remained elevated compared to levels we typically see at this time of year.


While the months of supply has trended down in this sector, it remains above five months. This is preventing the same type of price recovery seen in other sectors. On a year-to-date basis, the benchmark price remains similar to levels recorded last year.


REGIONAL MARKET FACTS


Airdrie

February sales reached new record highs for the month.


The largest gain in sales occurred in the $400,000 - $500,000 price range. New listings also increased, but the sales-to-new listings ratio remained elevated at 71 per cent and the months of supply dropped to under two months in February. This is the tightest level seen since 2014.


Persistent sellers’ market conditions have resulted in further price gains in the market. The benchmark price has trended up for the past eight months and, as of February, it is over seven per cent higher than last year’s levels. Most of the price growth has been driven by the detached sector.


Cochrane

Cochrane sales more than doubled compared to last February. This represents the strongest February ever recorded for the town.


New listings also rose for the month, but it was not enough to cause any substantial change in inventory levels and the months of supply fell to below two months. This is the lowest months of supply for February seen since the record low in 2006.


Tight conditions supported price growth in February, as the benchmark price rose to $413,700, a four per cent increase from last year’s levels.


Okotoks

New listings have been trending up from the lows seen at the end of 2020, helping to support a significant improvement in sales in February. February sales reach levels not seen for the month since the record high in 2007. 


Inventory levels remain exceptionally low relative to sales and the months of supply dropped below two months. Like other towns around Calgary, the sellers’ market conditions caused prices to trend up. In February, the benchmark price reached $442,600, nearly five per cent higher than levels recorded last year.


 

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

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Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
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