It’s been a busy 2015 and our markets have been characterized by an increased demand from Buyers with a decreased amount of properties available on the open markets. This has created an imbalance with the markets which are generally favouring Sellers currently. The trickledown effect of these conditions is that property values are increasing. In fact, overall, the Victoria market values are up by nearly 10% over this time last year.
For Sellers this means that it’s a great time to get your property listed. For Buyers this means that there are a larger quantity of other Buyers out there that are potentially competing with you for the fewer amount of properties that are available. Due to this, we are seeing multiple offer scenarios coming back into our markets.
Many of the specific conditions will be dictated by the geographic area you are working in, the type of housing (single family, townhouse, duplex, condo), and the price point you are working within.
If you are thinking about making a purchase this spring, I recommend you consider these following suggestions before beginning your house hunt. These points will help you to avoid disappointment while setting you up for success.
Get a jump on the new listings: Good properties sell quickly in these market conditions. If you are getting ready to buy something soon, ask your Realtor to change your MLS settings to notify you immediately when a new property that fits your criteria is listed. If you like the looks of it, get in touch with your Realtor quickly and view it as soon as possible.
Be prepared: Have your financing in order so if you see the “one” you will be in a position to move on it. Make sure you are qualified at the price point you are shopping in.
Talk to your Realtor about the possibility of finding yourself in a multiple offer situation: Discuss how you can position yourself strategically. The fewer conditions on the offer, the better. Don’t ask for chattels (furniture, personal possessions of the Seller) or for favours from the Sellers. If possible, try to offer the Seller the closing dates they are looking for and remove your conditions as quickly as possible. Remember you only get one chance to impress the Seller in a multiple offer situation. We recommend that you put your best offer forward, you may not have a chance to negotiate. A short note to the Seller about your family and what you like about the home can also sometimes sway a Seller in your favour.
Price: Think about your upper limit to price. Often in multiple offers, the minimum offer is the list price and sometimes Buyers must go above the list price to secure the property. In a multiple offer scenario the highest price is usually the offer that is considered. Make sure you are comfortable at this elevated price and that you are qualified for it.
Consider a larger deposit: Typically we see deposits in the $10,000 to $20,000 range. If you are in a position to offer a higher deposit at the time of condition removal, your offer will appear stronger. The deposit money forms part of the purchase price upon closing.
If you would like more information or assistance with negotiating the current market conditions, please don’t hesitate to contact me at any time. Ask me for further details on your market area and I will be happy to update you on your own personal situation.