How to Buy a House in a Competitive Market?
If you want to buy a house in a competitive market, especially in the GTA market today, when there are multiple offers, and tons of competition, would you want advice and help to buy a house?
At the end of the day you’re going to want a professional that knows how to buy a house, look after your best interest, do hard grunt work and make the deal happen.
So, how do you buy a house? What are the key factors that will make your purchase successful? Get a sales rep. committed to you. Motivate them to work for you. Have your sales rep. work outside the box.
How to Make Your Sales Representative Work for You to Buy a House in a Competitive Market
Commitment is a two-way street especially if you want to buy a house. If you want someone to commit to you and work hard, then you should make a commitment to each other. Kind of like getting married or having a partnership agreement.
In real estate we make this commitment by using a Buyer Representative Agreement (BRA). Like a Listing Agreement, which binds the seller and sales rep. together and protects everyone, the BRA does the same things.
So that you will have an understanding of the technical stuff I will briefly go into what the BRA is and if you want more info you can just go to the link.
Although, generally we may think a client is synonymous with a customer (a person or recipient of a good, service, product or idea, obtained from a seller, a vendor or supplier), in Real Estate and in accordance of with the Real Estate and business Broker Act, 2002 (REBBA 2002), the words “client” and “customers” have similar and different rules.
When you sign a BRA, you are making the sales rep. and their brokerage legally responsible to you. You become a client of the brokerage, and as a result you will benefit tremendously, this is how:
- You just motivated your sales rep. by saying “I’m committed to you and you know that you aren’t wasted your time knowing that there is a pay cheque at the end of the day”.
- You just made yourself a priority over other buyers that won’t sign a BRA for a couple of reasons. From a legal perspective, did you know that a sales rep. is legally bound to represent and first look after their clients buyer before a customer or a buyer that will not commit by way of signing a Buyers Representation Agreement?
- Let’ say a sales rep has 2 buyers and so many hours in a day, who do you think they will work harder to buy a house for, and put first?
- Buyer 1, who is a client that will commit to them and knowing that there is almost a guarantee that they will make a pay cheque? or
- Buyer 2, who will not commit to them, and knowing that if they find a house from someone else they are gone?
Why are Some Buyers Afraid to Commit to a Sales Rep. to Buy a House?
- The biggest reason I’ve noticed is because they think if they go to the Listing Agent directly to buy a house, they will be able to get a better deal. This is such a misconception. Any discounts goes to their seller client, not some buyer that comes off the street. As a matter of fact, the sales representative legally has to tell the buyer that they represent the interest of the seller and not to show them information because it will benefit of the seller.
- The buyer may want to have 2 or 3 sales reps working for them looking to buy a house, or think they are working for them. Committed buyers come first, no commitment = no hard work on the side of the agent.
- Some buyers want certainty of the service or what the experience will be like when committing to someone; and are afraid of being locked in. Fair enough, and that being the case, then speak to references and you may want to consider to sign an agreement based on a shorter time period to see how the relationship goes, then if happy, commit again for longer.
Strategy to Buy a House in a Competitive Market
It seems that most people think that real estate sales reps. just look on the mls (multiple listing services) to search for homes, and you know what, they’re right.
If you want to know how to buy a house, you should find a sales rep. that is a real professional that thinks outside the box, which separates them from the rest.
This is what top experienced sales reps. do, although, many do not.
- Spend time with you to figure out and get the feel for what you are exactly looking for in a home. i.e. style, budget, neighbourhood, size, style, price, etc. This is the best way to use your time and make it most effective.
- Search the mls system 4, 5,6 times a day so that when that perfect house hits the market, you’re seeing it asap and beating out other buyers.
- Go over the listing to make sure it’s what you want which may also include a call to the other agent to make more enquiry’s, and this is even before you visit the house.
- Calling other agents in their network to see if they have something coming on the market that may fit your criteria.
- Calling potential sellers that they know, who maybe selling.
- Going door to door in the neighbourhood you want to move to and telling home owners that I have a buyer and they want to buy a house.
- Advertise that you are looking for a specific house for a client.
- Taking you to visit the properties that fit your criteria.
- Do research of comparable properties to make sure that the asking price is fair helping you come up with a strategy and offer price.
- Provide you honest advice.
- Preparing the Agreement of Purchase and Sale, and all required documents. Which includes adding clauses and conditions that fulfill your needs and protects you.
- Presenting the offer and negotiating.
- Ensuring fulfillment of conditions in the agreement.
- Staying in touch and communicating.
- Protecting you and ensuring that this is the best experience ever.
Now you know how to buy a house in a competitive market.
If you want me to help you buy a house or to do a home search go to my website or [contact-form][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Website’ type=’url’/][contact-field label=’Comment’ type=’textarea’ required=’1’/][contact-field label=’Phone’ type=’text’/][/contact-form]