Vancouver Multiple Offers – Best Negotiator Tips for home buyers
Table of Contents
- Vancouver Real Estate – You Better have the Best Negotiator in town!
- Get Pre-approved before you look at vancouver homes for sale
- Don’t pussyfoot around
- Make it simple for the seller
- Have your agent present the offers in person
- How to Beat the Competition?
- Early timing
- Paying higher than the requested price – I know, genius right?
- Offering a higher deposit or paying immediately
- Offering Better Terms
- a. Timeline.
- b. Rent Back.
- c. Write a letter.
- d. Simplify your contract.
- e. Go to the bank and print out a certified cheque.
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 Real Estate – You Better have the Best Negotiator in town!
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 homes 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 multiple offer in vancouver 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. Remember you are better off hiring one of the best negotiators in Vancouver!
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 condos for sale in Vancouver’s west end, a very contested area right now. Immediately I called the listing agent and had an appointment set up 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 offers 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 East Vancouver Homes for sale and good old 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!
Get Pre-approved before you look at vancouver homes for sale
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.
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.
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 Yaletown condos for sale 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.
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 real estate market you are currently in. 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.
How to Beat the Competition?
With the reappearance of high buyer activity and prices which are escalating day in day out in Vancouver’s high real estate investment real estate market, sellers are on the gaining end. High demand and insufficient supply lead to multiple offer situations which are a common phenomenon in the real estate market.
LOOK AT MY: FULL BUYER STRATEGY HERE.
Many home buyers table a bid on an appropriate house within their price range, only to realize that there are contending offers. This leaves the seller with an option to decide the best offer.
If you are sure about a property you want, you will want your bid to be accepted straight away. These few tips on how to beat the competition in multiple offer situation in Vancouver will ensure your offer get picked.
By hiring a Vancouver realtor, you place a professional in the field to represent you. The realtor has access to the listing information immediately when placed on the professional database which becomes available to the public later on. You just let him or she know your preferences and what to do in multiple offer situations. This way, the realtor will be able to act swiftly than you could if you searched independently thus submitting your offer ahead of your competitors.
Paying higher than the requested price – I know, genius right?
This should be done if the market research supports the higher pricing-which is a usual occurrence in Vancouver property market. Any seller will tend to accept the highest bid, a sure way to beat other buyers. You live with the satisfaction that you acquired what you really wanted.
Offering a higher deposit or paying immediately
A deposit assures the seller that you are serious about buying Vancouver homes for sale. Therefore, the seller is more likely to turn down other buyers as they may not have upfront or large deposits. In addition, a bird in hand is worth two in the bush, thus cash in hand is more valuable than a later date payment. This will effectively prompt the seller to heavily consider your bid, beating several others.
Offering Better Terms
Price is not the only factor when it comes to multiple offers. Here are some other terms you can modify to your advantage:
Ask the Seller when he or she wants to complete. This may vary. I have seen sellers want to complete early and some sellers want to complete much later!
b. Rent Back.
If sellers want to stay, ask them if they want to rent back. If you provide a cheaper rent, then you can get an advantage and get the price you want.
c. Write a letter.
Write a letter introducing yourself and your motives. This rarely works but its worth a try if you are a good writer.
d. Simplify your contract.
Make your contract really easy to read with fewer terms and demands. Do this at your own risk, however. It works in case you are facing high competition
e. Go to the bank and print out a certified cheque.
Get a certified cheque in with your offer. Take a photocopy and submit with your offer. This shows your seller that you are serious and they can put a sold sticker outside their door when you leave!
CHECK OUT MY: FULL BUYER STRATEGY HERE.
We have many other strategies which we can share with you and have over 40 years of combined experience. Call us today and we can help you for FREE of charge: 604-767-3703.
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I am off to another day of adventure now in our hot Vancouver real estate market.
Take care guys!