Offer Deadlines & Multiple Offers
By Dave Kasdorf
Real Estate in the Pembina Valley has long been known for two key attributes – stability and affordability.
In recent years, the market in the Winkler area has especially been known to be a strong seller’s market.
In a strong seller’s market where the inventory is low and there are sometimes many buyers competing for too few houses, the majority of homes that are listed for sale will set an offer deadline.
An offer deadline is the date and time set for a seller to review offers for their home. Typically a home is marketed for a week or so before an offer deadline, allowing for prospective buyers to view the home.
The idea behind this timeline is to give buyers and their agents enough time to see the home (sometimes more than once) and decide if they want to make an offer, without the need to make a rushed decision.
An offer deadline is also good for the seller, as it allows time to market the property and enough time for all potential buyers to view the home. If the property is desirable and priced right, it is common for the seller to receive multiple offers by the deadline, and to sometimes receive a higher price than what was listed.
In 2008, rules introduced in Manitoba require buyers to be advised if they are competing with other buyers, and offers must be in sealed envelopes that are opened at the same time.
In a strong seller’s market, homes without an offer deadline can receive an offer after the first showing. This may not give other buyers a chance to even view the home, and the seller would not get the chance to consider potentially better offers.
What is causing the strong market and all the multiple offers?
There are many forces that change a market but here are 3 key reasons why I believe the market has been very strong.
- Record low interest rates – making borrowing more affordable.
- Limited inventory – fewer homes for sale, especially in the most desirable price points of $225,000 – $325,000
- The Pandemic – people are spending much more time at home and more space is required for remote working, home schooling etc.
If you are a buyer and are feeling frustrated – imagine being in these other markets.
Average Sale Price
|Our Local Market
Canadian Average – $696,000
When multiple offers are put in on a property, this is called ‘being in competition’ or being in a ‘multiple offer situation’.
These are 5 key factors to consider as a buyer in a multiple offer situation.
1. Purchase price – Purchase price is important but it’s not the only item to consider. How much should you offer? We will help you make the right decision for you.
2. Deposit – The deposit, part of your down payment, acts as collateral to demonstrate you intend on completing the transaction. The importance of a strong deposit cannot be overstated as it shows the seller you are serious about buying their home.
3. Possession date – Picking a possession date that is best for the seller can make or break the deal.
4. Conditions – The less conditions you include, the more desirable your offer will be. Examples of conditions are; bank or lender approval, condition of an inspection, etc.
5. Inclusions – If you ask for items that the seller does not want to include, it puts your offer in a less desirable position.
If you are looking to buy, contact your Choice Realtor and we will walk you through writing the best offer in today’s market.