What are we going to do with all the multiple offers this year?

Joel Olson • January 26, 2022

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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!

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Joel Olson

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3 Questions To Ask Yourself Before Listing Your Home!

By Joel Olson • April 8, 2025

Deciding to list your home for sale is a big decision. And while there are many reasons you might want/need to sell, here are 3 questions you should ask yourself; and have answers to, before taking that step. What is my plan to get my property ready for sale? Assessing the value of your home is an important first step. Talking with a real estate professional will help accomplish that. They will be able to tell you what comparable properties in your area have sold for and what you can expect to sell your property for. They will also know specific market conditions and be able to help you put a plan together. But as you’re putting together that plan, here are a few discussion points to work through. A little time/money upfront might increase the final sale price. Declutter and depersonalize Minor repairs A fresh coat of interior/exterior paint New fixtures Hire a home stager or designer Exterior maintenance Professional pictures and/or virtual tour But then again, these are all just considerations; selling real estate isn’t an exact science. Current housing market conditions will shape this conversation. The best plan of action is to find a real estate professional you trust, ask a lot of questions, and listen to their advice. What are the costs associated with selling? Oftentimes it’s the simple math that can betray you. In your head, you do quick calculations; you take what you think your property will sell for and then subtract what you owe on your mortgage; the rest is profit! Well, not so fast. Costs add up when selling a home. Here is a list of costs you’ll want to consider. Real estate commissions (plus tax) Mortgage discharge fees and penalties Lawyer’s fees Utilities and property tax account settlements Hiring movers and/or storage fees Having the exact figures ahead of time allows you to make a better decision. Now, the real wildcard here is the potential mortgage penalty you might pay if you break your existing mortgage. If you need help figuring this number out, get in touch! What is my plan going forward? If you’re already considering selling your home, it would be fair to guess that you have your reasons. But as you move forward, make sure you have a plan that is free of assumptions. If you plan to move from your existing property to another property that you will be purchasing, make sure you have worked through mortgage financing ahead of time. Just because you’ve qualified for a mortgage in the past doesn’t mean you’ll qualify for a mortgage in the future. Depending on when you got your last mortgage, a lot could have changed. You’ll want to know exactly what you can qualify for before you sell your existing property. If you’d like to talk through all your options, connect anytime! It would be a pleasure to work with you and provide you with professional, unbiased advice.

What is a “No-Frills” Mortgage?

By Joel Olson • March 25, 2025

A no-frills service or product is where non-essential features have been removed from the product or service to keep the price as low as possible. And while keeping costs low at the expense of non-essential features might be okay when choosing something like which grocery store to shop at, which economy car to purchase, or which budget hotel to spend the night, it’s not a good idea when considering which lender to secure mortgage financing. Here’s why. When securing mortgage financing, your goal should be to pay the least amount of money over the term. Your plan should include having provisions for unexpected life changes. Unlike the inconvenience of shopping at a store that doesn’t provide free bags, or driving a car without power windows, or staying at a hotel without any amenities, the so-called “frills” that are stripped away to provide you with the lowest rate mortgage are the very things that could significantly impact your overall cost of borrowing. Depending on the lender, a “no-frills” mortgage rate might be up to 0.20% lower than a fully-featured mortgage. And while this could potentially save you a few hundreds of dollars over a 5-year term, please understand that it could also potentially cost you thousands (if not tens of thousands) of dollars should you need to break your mortgage early. So if you’re considering a “no-frills” mortgage, here are a few of the drawbacks to think through: You'll pay a significantly higher penalty if you need to break your mortgage. You'll have limited pre-payment privileges. Potential limitations if you want to port your mortgage to a different property. You might be limited in your ability to refinance your mortgage (without incurring a considerable penalty). Simply put, a “no-frills” mortgage is an entirely restrictive mortgage that leaves you without any flexibility. There are many reasons you might need to keep your options open. You might need to break your term because of a job loss or marital breakdown, or maybe you decide to take a new job across the country, or you need to buy a property to accommodate your growing family. Life is unpredictable; flexibility matters. So why do banks offer a no-frills mortgage anyway? Well, when you deal with a single bank or financial institution, it’s the banker’s job to make as much money from you as possible, even if that means locking you into a very restrictive mortgage product by offering a rock bottom rate. Banks know that 2 out of 3 people break their mortgage within three years (33 months). However, when you seek the expert advice of an independent mortgage professional, you can expect to see mortgage options from several institutions showcasing mortgage products best suited for your needs. We have your best interest in mind and will help you through the entire process. A mortgage is so much more than just the lowest rate. If you have any questions about this, or if you’d like to discuss anything else mortgage-related, please get in touch. Working with you would be a pleasure!