Think about Subjects, not just price to get your offer accepted!

Think About Subjects, Not Just Price
Hoorah! You’ve been out searching for the right home, you’ve now found it and would like to come in with an offer. Hopefully you are discussing with your REALTOR on price point, based on previous sales in the building/surrounding area.
Well on top of this, did you know there are also other ways you can make your offer more appealing than just upping your price point?
We are talking Subjects and Closing Dates

Unless the sellers REALTOR has given you information, you never know what the scenario is with the seller and their situation. You could be the next offer in after one has just fallen through. It could have fallen through due to the original buyer wanting to close in 3 months. It may not seem like a big deal but if a unit is vacant with no income and a mortgage needs to be paid, that’s an easy $10,000 cost to the seller to keep it a few extra months. Providing you are able to, closing at an earlier date can be a huge relief for the seller and save them money, justifying your price more.

On the other note, subjects are a common concern for sellers. You practically have a subject for everything these days and you never know what the seller has previously been burned by in this deal, or a prior one.

Example: Let’s say 2 years ago, the seller tried to sell another unit they own. They got an offer, it was accepted subject to financing, they thought the deal was done but the buyer could not get their financing approved. The deal collapsed and they had to start all over again. It makes sense from here that the seller, having previously been burnt by financing, will have a natural caution level when it comes to financing clauses. You could be pre-approved and ready to go with no need to include the financial clause/subject. Taking that stress away from the equation can certainly be measured by a reduction in price.



-OR-

Let’s say you want to keep the financing just to be cautious. There are other subjects you can do away with such as Strata Documents. You can be proactive in requesting these to read through them, making sure you are happy with all the information of course. Providing the standard meets or exceeds your criteria, you can progress without a ‘subject to strata documents’ in the offer’.

These proactive measures just take a bit of upfront thinking but can really help you both save money and justify why you may want to put in a lower bid. Of course, if you are bidding far below the market, we’re not saying these will get the deal done, you have to be realistic with where the market is at. But in a buyers market with pricing reduced so heavily already, this could help with shaving that extra bit of cash off the asking price vs your offer.

We hope this helps! We’re dealing with this on a recurring basis and it’s helped us negotiate some awesome deals without putting us at risk, all for being proactive. There’s no reason why it can’t you.

As always, feel free to follow up with us if you have further questions, we’re always happy to help out!
Until next week,

Vancouver First Time Home Buyers Out!!

Jay Mcinnes
T: 604.771.4606
jay@mcinnesmarketing.com

Ben Robinson
T: 604.353.8523
ben@mcinnesmarketing.com