Drafted By: Melissa Kubek
The market we are experiencing currently is a fairly fast & hot market, quite common for the Vancouver area. New product (houses/condos) are entering the market each day and selling rather quickly providing the homes are priced well. We are seeing a fair number of these properties being sold in what’s known as ‘multiple offers’ and they’re often selling for a greater price than the originally listed price.
So what does this mean for you as a buyer?
It means that you and any other decision makers in your purchase must know exactly what you’re looking for, what your maximum purchase price will be and what limitations you have if any (moving dates, must haves in the home, etc). By knowing these details you’ll be prepared for when you find your right home. Chances are such that there are others like yourself looking for a similar home, priced well, in the same location as you, with similar features and as such, the question I propose to you is this:
“Are you ready to pounce when we have found that right home?”.
What often happens is buyers will find the right home and will lose it if they don’t act quickly enough. I recently experienced this again a couple of months back with one of my listed properties where a buyer (not my client) loved the home, however they wanted to take some time to think about it. Their REALTOR® asked me to keep them in the loop should another buyer show interest in this property.
The very next day another buyer viewed the home and expressed interest in placing an offer via their REALTOR®. The first Buyer’s REALTOR® let me know that their clients weren’t ready to write an offer yet though they do love this home, it meets all of their needs and it’s their favourite so far and as such the second buyer’s REALTOR® presented their offer.
My sellers (owners of the home) moved ahead with the offer when it came in and the offer was happily accepted, shortly thereafter the conditions were removed and the home was considered sold. Within a couple of days of the home being considered sold, I heard from the first agent again asking on their client’s behalf if the home was still available as they’ve seen several other homes since and nothing has compared to this one. It of course was too late and I informed this agent that the home was no longer available.
There are some buyers who need to see everything that is available on the market in order to feel confident that they are making the best possible decision for themselves when buying a home. This approach to home searching/buying is ineffective, however and so I offer up the following to help you set a powerful plan in place when it comes to buying your next home:
1. Know exactly what you want and need, what you’re willing to live without & what your absolute must haves are. Write it out! Review and revise as necessary! Imagine in your minds eye what it looks like, be so crystal clear as to what you want in your next home.
2. Are you willing to complete renovations, whether grand or minor to finish off the home in the way that you want it to be? Do you simply need a good structure, location, etc…or does the home need to be finished off such that you can simply just move in?
3. Get familiar with the areas you’re interested in and learn as much about these areas as possible prior to looking at houses. Drive the neighborhoods, visit some of the restaurants and/or shops, check proximity to schools, work, friends, family, etc if important. This is an important step to take first because you may love the home you’ve found in a particular location, however if the neighborhood/location is not what you’re wanting, this may weigh into your decision to buy. Knowing these details ahead of time will either draw you into a neighborhood or steer you clear away from it.
4. Have your financing in place!
5. Have your financing pre-approval in place! This is completed with the aid a lending company. Speak with a mortgage professional in regards your particular needs.This pre-approval will let you know what your maximum purchase price can be, what amount for down payment you’ll need, how any debt affects your ability to purchase among other details. Knowing this number will help you to buy with confidence because you’ll know what price range to look in and you’ll know that you can afford the home when you’ve found the right one for you.
6. Have your deposit monies ready! The deposit monies are different from the down-payment though the deposit will ultimately form part of your down-payment. The down-payment is not due until the day of completion (the day you pay for the home in full), whereas the deposit is due at some point in the initial offering when dealing with the contract (typically either upon acceptance of the contract, upon removal of some or all of the conditions, or within a specified time frame otherwise agreed to). Deposits are typically 5% of the purchase price, however this amount can vary depending upon what the buyer and seller agree to and they are paid typically by way of bank draft (not cash or personal cheque). Have your deposit ready and available prior to looking at homes because you may find the right home and will likely need access to these funds quickly.
If I could give one piece of advice to home buyers (in addition to choosing a great REALTOR®) it would be this:
Be ready to pounce when you’ve found your next home by ‘getting all of your ducks in a row’ and details sorted out ahead of time. When you’re prepared in this way you’ll only view homes that apply to you, you’ll place yourself in a power position when it comes to negotiating a deal with a seller or against other buyers in multiple offers and you’ll feel confident in your purchasing decisions because you’re knowledgeable and ready.
I wish you all the best with your next home purchase!
- Art & Design
- Casting Opportunities
- Celebrity Photographer
- E-commerce - null
- Event Photos
- Feast or Famine
- Health & Fitness
- Media Partners
- News Magazine
- Our City Tonight
- Products And Services
- Real Estate
- Science & Technology
- Series In Production
- Social Issues
- Talent Agency
- Travel + Leisure