Multiple Offers in Southern Alberta Real Estate
It's been a weird year. Between COVID-19 and all that is happening both locally and internationally these are unprecedented times yet here in Southern Alberta our real estate market has been thriving. Economic uncertainty, low mortgage rates, changing lending rules, there's been a real bizarre recipe creating a scene in real estate.
In Lethbridge and district what we have found is heightened activity - both in inventory and buyers. Listings are coming left and right, buyers have become serious and homes are moving - QUICK. Due to this, especially at a price point under $300,000 we are seeing (very commonly) multiple offer scenarios.
Multiple offers can be confusing, intimidating and also come with legal ramifications. In Alberta, we are regulated with precisely how to conduct these scenarios. Whether you are a buyer or seller, be sure to have that conversation with your Realtor about how to approach multiple offers, what you can expect and your options in dealing with them.
Multiple offers occur when a home for sale has more than one offer presented during a given period of time, putting these offers in competition with each other.
The listing Realtor representing the seller is required to disclose the existence of the multiple offers. While they cannot disclose the contents of the offers, they must make all parties involved aware that they exist. This allows the potential buyers the opportunity to change their offer to reflect the scenario.
We hear this myth a lot: that you'll overpay in a multiple offer scenario. Not necessarily. It is entirely up to you, as the buyer, what you are willing and able to pay for a home. Here's an example of this:
The importance is the strategy and a Realtor who will advocate for you. Expect to spend less time negotiating during multiple offers and be prepared to start with your best offer possible. Things like favorable conditions, a larger deposit, possession date in line with the sellers will assist in your offer - not just your price.
We're here to represent you and your best interests. Reach out to any of our team members to learn more about multiple offers or anything else real estate related!