January 21, 2016
The sales-to-active-listings ratio at 17.7 per cent, the region remains in balanced market territory, according to REBGV. But that’s really just a ratio that needs more close examination seeing that we have one of the lowest levels of listing inventory in history in the Lower Mainland and Greater Vancouver.
These days are seeing multiple offers are everywhere in the Lower Mainland, in fact multiple offers are the rule of the game.
Just look at these statistics for 2015:
Vancouver Best Neighbourhoods
Vancouver East – up 23%!
Tsawassen up 14%!
North Burnaby up 17%!
Coquitlam up 19%!
Richmond up 17%!
The story tells it all, we are in for a huge year in 2016 given that oil prices are headed to an all time low bringing the Canadian Dollar way down. The mapping history of Vancouver streets are fuelled with foreign investment, and Vancouver Canada is for sale folks.
As last year I am asking … Scared? Worried? Well I have included the antidote again. Here are a few tips for the first time/ pressured buyer can use when faced with a multiple offer situation. These are just some strategies for multiple offers in Vancouver, we of course, offer many more for our dear clients.
Get ready to move fast when handling multiple offers on a home : this goes for you and your agent. You must be prepared to move at light speed in this market. This morning at 9am I just received a text from my buyers about a condo listed on the Vancouver’s west end, a very contested area right now. Immediately I called the listing agent and had an appointment setup to see it by noon. We set out to a cafe nearby to write an offer and when I called the listing agent he mentioned that he already had 2 offers that were to be presented. We eventually won the multiple offer anyway as we placed a strong offer. However, had we waited any longer the unit either 1) would have been sold or 2) would have been contested with even more multiple offers. The same story is happening around the lower mainland and worst for Vancouver detached houses and the good old streets of downtown Vancouver condos.
When you are sincerely ready to buy a house, don’t just rely on general searches of listings sites like rew.ca and realtor.ca. This goes for ANY Vancouver market, not just when you have multiple real estate offers happening. Make sure to get your realtor to send you listings by email the minute they hit the market. We can provide you with that and much more and make your home purchase a success!
2) Get Pre-approved
I always say to my clients: I am going to hit you in the head with my laptop if you don’t get pre-approved in this market! Often times, the seller will take the offer with least amount of subjects. You’ll need to show to the seller that you’ll can to finance the deal. If you need to put financing clause make sure you specify how much your mortgage amount will be IF you are putting down more than or equal to 20%! That way sellers see that you are a high ratio mortgage buyer.
3) Don’t pussyfoot around
Exactly as it reads. If you’re able to and are ready to buy, waiting around won’t do you much good. Not only prices may go higher, interest rates may also increase and financing restrictions set in place. With the economy the way it is, we are betting on higher inflation of hard assets because of Government spending, a low dollar and well a number of factors. I am not here to talk about the market, so simply put, if you wanna buy, then buy.
4) Make it simple for the seller
Instead of focussing solely on price, I ensure we also pay close attention to the following items: 1) the closing dates, 2) the financing clauses, 3) inspection clauses, 4) lessening of demands, 5) the amount of deposit, 6) and of course the price. One situation I had while selling a condo in Yaletown late last year, was that the buyer’s agent brought a certified cheque from the buyer together with the offer. His words: “I can put a sold sticker on your sign when I leave today.” That made the seller happy, and guess what? The sale price was lesser than the other offer. But because the cheque was there guaranteed, my seller decided to take the offer on his Yaletown condo. Simple and easy. Instant gratification.
5) Have your agent present the offers in person
Did you know that we have exponentially more power of persuasion in person than in writing? This is a known concept and the best negotiators always attend the deal in person. Is your Vancouver agent doing all that he can to ensure that you get your dream home? This should be your key question regardless of any vancouver market, whether condos or homes. If you have done your parts above then he/she should definitely do his/hers. It is imperative in this market that this number 5 rule be implemented.
For any other tips feel free to contact me or leave a comment below. If this post helped you TWEET or LIKE my post above!
I am off to another day of adventure now in our hot Vancouver market.
Take care guys!