Did you ever imagine that the real estate market would become so competitive? It doesn’t seem that long ago that buyers held their fair share of the bargaining power. But as more people flock to Canada’s big cities, the housing supply has not quite kept up with the pace. Mind you, Winnipeg is a far more relaxed market than Toronto or Vancouver. 

Still, houses are selling quickly here, too, especially as those dreaming of homeownership discover how much more affordable Winnipeg is! Homeowners who are selling have never been in a better position. Buyers, however, may need to get creative and optimize every possible advantage when on the hunt for that perfect home. Knowing how to craft an offer that sellers love is a big part of this. And yes, it mostly comes down to money. Whoever offers the most will typically get the house. However, it isn’t always about the dollars and cents, and knowing all elements of the offer can pay off substantially.

---

Why choose Winnipeg for your next home? There are so many great reasons!

• 5 Reasons To Move To Winnipeg Right Now
• A Guide To Winnipeg’s Entertainment District
• Everything You Need To Know About Living In Transcona

---

Market Knowledge Is Essential

Before thinking about offers, understanding the market as a whole is always a good idea. Part of the battle is knowing what you’re up against when you’re searching for a new home. While demand is high and supply is dwindling, the market can still fluctuate in response to outside factors like interest rates and economic conditions. What does this mean? 

Windows of opportunity where prices are relatively low can and do open up, and a good real estate team can help you be ready to capitalize on them! Here are the three primary market conditions to be aware of:

A Balanced Market

In this scenario, the number of buyers and sellers is approximately the same, so neither has a significant advantage overall. With the growing population, this type of market doesn’t come along that often. But when it does, a little preparation and background research will help you obtain the house you love.

A Buyer’s Market

A dream come true for buyers! There are loads of listings available, but not enough buyers to scoop them up. As a result, many sellers are open to concessions, such as lowering the price or including extra goodies in the deal. Although this is the golden standard, it can be rare in the current landscape. Your best bet is to start planning early, so you’re ready to act when the time comes.

A Seller’s Market

A nightmare come true for buyers! Of course, it doesn’t have to be a literal nightmare if you have expert guidance and plan accordingly. Still, with not enough houses for sale, you may often find yourself up against steep competition when bidding on a home that catches your eye. In this market, knowing how to craft an offer that is almost irresistible is more critical than ever.

The Hidden Nuances of Winnipeg Real Estate

Now you know how the real estate market works on a large scale. And things are about to get even more interesting. Conditions are rarely the same all over Winnipeg. Overall, it can be a seller’s market, but there could still be certain smaller or up-and-coming neighbourhoods where competition remains low. Real estate experts refer to these pockets as “micro-neighbourhoods,” and they can be your saving grace when buying a home in a tight market.

Elements of a Successful Offer

With all of this background knowledge under your belt, you are in an excellent position to begin crafting your offer. It’s a great time to examine each element of an offer more closely so you can uncover all of the ways you can stand out in a competitive situation.

Price

How much are you offering on the home? Most homeowners want to earn as much as they possibly can, which is the key factor in whether your offer is accepted or not. On the other hand, you don’t want to pay more than the house is worth. 

These opposing goals between the buyer and the seller can make it challenging to decide how much to offer. In a buyer’s or balanced market, you may be able to pay a little less than the listing price. If it’s a seller’s market, you will likely have to offer more, especially if others have their eye on the home you want. 

Deposit

Once your offer is accepted, you place a good-faith deposit to secure the transaction. What many potential buyers don’t realize is that placing a higher deposit upfront can increase the odds of success even if another buyer offers the same price. This is just one of the many little ways you can stand out in a crowd!

Financing

Your offer will outline how you intend to pay for the house, whether in cash or through financing. It seems simple, but this can be a major factor in whether a seller chooses your offer. Of course, they want to earn the highest amount possible. But a high offer where the buyer backs out due to lack of financing is a headache everyone wants to avoid! How can you use this to your advantage? 

Getting pre-approved for your mortgage ahead of time shows the seller that you qualify for financing. You can drop the condition of financing from your offer, and they no longer have to worry about the transaction falling through unexpectedly. As an added bonus, you can lock in the lowest interest rate between the time of approval and the next 90 to 120 days. Talk about creating a perfect win-win situation!

Conditions

Should you put a condition of home inspection or financing in your offer? Adding contingencies is a great way to protect yourself from a bad purchase or in case your financing doesn’t pan out. However, it could also cost you the home in a busy market where other buyers are competing for the same listing. 

If given a choice, most sellers prefer a firm offer so they don’t have to wait to see if the transaction will go through. Sometimes, they’ll choose a firm offer over an conditional offer, even if the dollar amount is slightly lower. A pre-inspection report and a pre-approval can help you minimize your risk when a competitive market requires you to be bold!

---

Are you gearing up to buy a home in the near future? The resources below will help:

• Should You Work With An Agent When Buying In Winnipeg?
• Benefits Of Buying An Older Home In Winnipeg
• Why Buying A Condo In Winnipeg Is Better Than Renting

---

Inclusions and Exclusions

Do the curtains come with the house? How about that brand-new gas BBQ? There is often a lot of confusion over what comes with your purchase and what doesn’t. Generally, if it isn’t physically attached to the house, you can’t assume anything unless there is an inclusion or exclusion outlined in the terms of sale. 

If the market is in your favour, you might request the inclusion of the BBQ, curtains, and other fixtures that you don’t want to shop for yourself. Otherwise, the seller might decide to make an exclusion and take those items with them.

When crafting your offer, access to updated information about the market and the individual neighbourhood can help you be competitive without overpaying to get the home of your dreams. 

Are you ready to start searching for your ideal home in Winnipeg? We are here to help you get the best possible terms and price in the current market. Reach out to us at info@goodfellowrealty.com or call 204-224-2551 to begin the conversation today.