We all know that the Ontario housing market is currently the most competitive it has ever been. Home buyers in Brampton end up bidding for 10-15 houses until their offer is accepted. While the provincial government announced the two-year ban on foreign homebuyers, it is still to become a law. Until then, buyers will continue being outbid by second home buyers and investors.
Listed below are my top 6 negotiation tips for smart home buyers in Brampton. Before I begin, remember to never be afraid to negotiate.
1. Include an escalation clause in your offer
An escalation clause will help you win multiple offers, so you can choose which house in Brampton’s the best for you. Here’s what I like to add in our counteroffer : “my client” is willing to be “X” amount more than the highest bidder but would not exceed “Y” (example – $2 million). A copy of the highest written offer should be sent along with the acceptance.
2. Set reasonable expectations
You don’t want the Brampton home seller to feel like they’ve lost. Create a win-win situation by setting reasonable expectations. Don’t submit an unconditional offer because you don’t know what’s broken or needs to be replaced in the house. Always include a house inspection clause in your counteroffer.
3. Focus on the market value instead of the asking price
Most sellers list their homes according to the price of the highest selling house in the neighbourhood. If you like a house or condo in Brampton but think it’s overpriced, provide a counter offer that’s just below the listed price. Most sellers are willing to settle for a little less.
4. Use market data to negotiate your way
An important characteristic of a smart buyer is that you know when not to put in an offer. Location is everything when it comes to real estate in Brampton. A few things you should consider before making an offer include market value, average market time for similar houses, square footage, number of rooms, and condo fees (if any).
5. Understand the reason the seller’s selling their house
Some sellers only care about getting the most money for their property in Brampton, but some value the personality of the buyer and how they’ll care for their former home. Understand what are the reasons the seller’s selling and use that to get leverage over the deal. It could be a fast closing or even delayed closing. Always write a letter to the seller to show them a little bit of your personality. Talk about why you’re interested in purchasing their house, about you and your hobbies, and what you plan to do with the space.
6. Use inclusions effectively
If you’ve read listing descriptions, you’ll see a lot of them include catch phrases like “washer and dryer included” or “ brand new fridge installed and included”. Ask the seller if they’ll lower the price if you choose not to take these inclusions. It’s very likely that removing the appliances will cost them more, so they’ll choose to drop the price by a few thousands.
Hire an experienced real estate agent who knows the market and has proven negotiation skills. I am currently accepting clients and would love to assist you in finding your dream home.