What are we going to do with all the multiple offers this year?
So what is 2022 going to look like and how do we handle multiple offers differently?
So here we go. 2022 What's this year going to look like on the market?
Is it going to be another year full of multiple offers escalating house prices and buyers being frustrated not being able to crack into the market?
Is it going to be another year where we see limited inventory as a result of a lack of supply?
Where there isn't really that much to buy in the first place?
I mean, there's lots of predictions.
We all have our own opinions, but I suppose only time will tell.
All we know is what it is today.
And I can tell you a few things that we've learned that we are doing differently this year.
First, we are expecting there are going to be a lot of situations with multiple offers in particular, where people are meant to go firm, at least until this cooling off period is put into place by the government.
That means we have to be a lot more diligent about making sure our clients are ready to put in an unconditional offer.
A lot of brokers are scared to guarantee something like this.
A lot of brokers are nervous to give clients the go ahead on unconditional offers.
However, there's some better ways than what people have done.
The key here is to set up what's called Plan B financing.
It means that if, for some reason, the mortgage insurer doesn't approve you, if for some reason, you don't get approved by that lender that we’re 99.9% sure will approve you… what are we going to do?
That may include some type of approval with a B lender, or a higher interest rate or attaching a cosigner or adding security for the property.
All these things are things that we can put in place as a B plan so a client can go comfortably into an unusual offer, knowing that they do have at least guaranteed financing in some form.
This is a key difference to what people are doing in the marketplace.
You would not believe the amount of frightened phone calls we get from people that have firm offers that really didn't have financing organized in the first place.
It's safe to assume that, even though people are telling you they think they'll be okay.
Really, it's a scramble to the end making for a very, very stressful situation for our clients.
So our plan and our process includes for everyone who's offered, to put a “B” financing plan in place.
This is an important distinction and will make you look better to your clients and have a less stressful situation.
It also means that the client can comfortably offer in a situation not just unconditional, but I think to go above asking they can do so comfortably with us talking through that.
The second part that we might add to that would be to do an inexpensive pre-appraisal on a property through an actual appraisal.
Now we all know what property a should sell for and won't sell for - we will have our comparables, but why don't we have something that is legitimate from an appraiser?
That’s something we can rely on… that means that we could actually go a little bit higher on that property.
There's a way to do a pre-appraisal that can give some comfort around those values and comfort around going above asking (price).
Now, of course, if this cooling off period comes into play, all bets are off.
It means that we will have a week to sort out financing.
This means our mortgage approval assurance plan we've talked about many times, which means our pre- approval is going to come with a $5,000 guarantee to the seller is going to make all the difference.
If you don't know about that and want to schedule a time so you can have your clients take advantage of having $5,000 against the seller, please do schedule a call with me.
Lastly, time kills all deals.
We've heard loud and clear that a big issue with offers is that people do not have enough time to get the offer done.
Many banks, many brokers, many lenders are asking for a full one week for some locations and finding that those offers rarely even pique the interest of most sellers.
Now of course, people want to have adequate time, but what if there was a way to get the client extra pre- approved?
I'm talking about making sure we have the identification.
Making sure we have the voided check, making sure we have every bank statement.
What if there was a way for us to make that pre-approval work so that they can have a one day approval?
This is possible for a limited amount of realtors and a limited amount of clients on an ongoing basis.
We can offer approvals that are firm in one day. If you'd like to know how to take advantage of this and the strategy this uses, please schedule a time with me because we can do an approval in one day.
That's right.
Make an offer 24 hours later and remove the subjects - this is huge in this market.
Obviously these are just some of the many strategies we do and many are catered to your specific marketing needs.
We would love to have a chance to go through anything we can help you with this year.
It's going to be a busy one.
Let's be prepared!
