Muskoka Real Estate | Market Reality 2022
Muskoka Real Estate 2022
Purchasing a home or cottage in the Muskoka Parry Sound area right now is down right frustrating. The number of good waterfront listings is extremely limited and there are droves of buyers searching for the same thing. The result is often a feeding frenzy when a reasonably priced piece of real estate comes on the market.
That frenzy often results in the dreaded Multiple Offer scenario. Time & time again people are losing out to more competitive buyers & find themselves wondering how to land the deal. I've been through this many times, with good & bad outcomes, so I thought I would share some things I've learned that might help.
4 Things that may give you an edge
- Have your financing pre-approved! In multiple offer situations the general rule is to put in as few, if any, conditions. Talk to your real estate agent & financial institution to get your ducks in a row before hand. Know what your financial limits are going in and leverage that.
- Be flexible on your closing date. Many times the standard 30 day closing doesn't work for the cottage sellers. Maybe they want a few more weekends with their family at the cottage or they just have lots of stuff to move. Make sure your agent lets theirs know you're good with a closing different than what's on the offer paperwork.
- Talk to your insurance company ahead of time to see what they require to insure. For example, many will want a WETT inspection for a fireplace or wood stove. Some companies allow a period of time after the closing date to produce the report as long you don't use the appliance. Don't let an insurance hiccup cost you the deal.
- Ask if there's any pre-inspections that have been done by the Seller ( ie septic, home, water) and if so, can you obtain them prior to writing your offer? Home inspections can be a very important part of making an informed decision but the reality today is that many people are not putting an inspection clause in the offer to make it more attractive to the Seller. Perhaps have a knowledgeable friend join you on the showing.
The number one question by far that I get asked in multiple offer situations is "How much should we offer?" and it's one that's very hard to advise folks on. Here's my take on the most gut wrenching decision of the whole process.
- Take emotion out of the offer price completely - Think like a Vulcan
- Don't use round numbers. Human nature seems to want us to use tidy, even numbers. If you're thinking about $850,000 maybe $854,000 will edge out someone with the same budget.
- Most importantly use the highest offer amount you're content with. After being out-bid many exasperated buyers say " but we could have gone that high!" Then why didn't you? In a normal market setting there is generally some room for negotiation but this is no normal market.
These are challenging times if you're trying to purchase waterfront property in Muskoka. Listing prices seem to be constantly climbing and often the accepted offer is far above the asking price. My crystal ball is presently cloudy but I suspect this will be the new norm for quite some time so hold on tight.