Frustrated with Today's Real Estate Market?

by Cheryl Oudshoorn | Homes Plus Editor

Are you currently looking for a home in this wild-fire real estate market? We spoke with Melissa (a local resident) about her home purchasing journey. With 9 offers (most over asking), and endless home tours with her partner, they have finally closed the deal on their dream home! She shared her story with us and some tips that you may find useful if you are in a similar situation.

Melissa started her search early in 2020. In fact, their first offer was made just 2 days before COVID-19 was really impacting our region and causing schools and businesses to close. At that time, they thought the winning bid of $25,000 over asking was ridiculous! Once COVID hit, they felt relieved they had not ‘over payed’ for the home, thinking the market would simmer during lockdown. As we all know, the market did not simmer! Almost every home they put an offer on post COVID was over asking, including an offer $175K over asking on another home (and that was not even be close to the winning bid)! As you can imagine, the process was “extremely exhausting and stressful”.

Fortunately, Melissa had an excellent real estate agent guiding her through this lengthy process: “Words cannot express how wonderful Mallory is. I would put us in the not so easy to deal with category, as we have high standards of what we were looking for but also wanted to be cautious with our money. Mallory and I would be in communication constantly whether there was a house worth seeing or not. She was always great at reaching out to see how things were going and to just discuss the current market. She was extremely supportive through the whole process and provided honest feedback. She didn’t just tell us what we might want to hear. She always kept us informed on offer day, and I never felt like I was left in the dark wondering what was happening in the back ground.”

Melissa has shared some useful insights and suggestions for those who find themselves in a similar situation:

1. Make sure that you have an agent who suits your personality, as they are your partner in this journey.

2. As the market is very competive be sure you know what your budget is (get preapproved for a mortgage if required).

3. You will likely need to offer more than asking so adjust your price search criteria accordingly.

4. Keep in mind that there are three strategies when an agent lists a house: a) at market value b) lower than market to hopefully end in a bidding war c) price over market value with the hope that someone is willing to pay that much. The trick is determining how the listed house sits within the above three strategies - this will help you to determine an appropriate offer.

5. There is a home out there for everyone. It is frustrating but don’t give up!

As mentioned already, Melissa and her partner have found their dream home, with the help of their realtor they started to think outside the box and took a risk to get it. A friend of Melissa’s drove past a coming soon sign in front of a home with an incedible yard, she let Melissa know and Melissa contacted her real estate agent right away! Mallory contacted the listing agent for more information, but there were no interior photos available.

Taking a risk, but desperate to end their search for a home, Mallory suggested Melissa and her partner put in an offer (above asking) conditional on viewing the property. They didn’t want to wait for the listing to go live and it turned out, they weren’t the only ones with this idea! Knowing there was a competing offer, they increased theirs and they won the deal! They were able to view the home the next day and they are thrilled with their purchase, which was a relief for all of those involved. We asked Melissa which feature of her new home is she most excited about, here is her response: “We are beyond excited to spend the summer in our beautiful new backyard that looks more like a resort than a residential backyard. In addition, the community seems amazing and I look forward to meeting my new neighbours”.

If you have had similar challenges with finding a home this past year, we hope this will give you a little perspective. It is clear that you need a professional realtor on your team to make purchasing a home, in this market, a reality.

Hope for Frustrated Buyers

by Julie D. Martin | The Red Carpet Crew

We have some clients that have been in their first home for six years. They were just a couple, and now have two little ones. It’s time for a larger home and something closer to the husband’s work in Oxford County.

We have been talking to them on and off for a year and a half and have shown them a handful of homes. They offered on one a few months ago, but got beat out in a multiple offer situation. Last week, another home came up that was an even better fit than the previous one, so we showed it to them and helped them put together a very competitive offer. Their offer was one of eight!

With the recent burst in the real estate market, we had a very serious discussion about how important it is to put their best foot forward as they likely wouldn’t have a second shot at it and if they don’t get this one, the next one will likely be much more expensive.

It’s just a reality of this market. They had their mortgage pre-approval, and the home is newer so they felt comfortable going in without an inspection condition.

For years, we have added extra touches to our offers to make them stand out amongst the competition so it is more personal and not just a piece of paper or a number, and this time was no exception.

Great news! Our client’s offer was accepted and they’re thrilled to move onto their next home!