Should You Accept the Highest Offer for your Home?

Imagine a kid running a lemonade stand. He’s selling his product for 25 cents a cup. He’s doing okay. Sales are good. Then someone comes up to his stand and says, “I’ll give you 50 cents for a cup. But, I don’t have the money right now. Give me the lemonade and I’ll pay you later.”

Should he take the deal?

Chances are, you’d advise against it. After all, just because the price is high —in this case, double — doesn’t mean the offer is a good one. There’s a chance the customer won’t come back with the promised 50 cents!

That’s a simple example but applicable when considering multiple offers for your home. Yes, the offer with the highest price is often the one to accept, but there are situations when that’s not the case.

For example, you should be careful when considering the highest offer if the buyers’ financial situation is uncertain. Have they attached an appropriate deposit? Have they secured a prearranged mortgage from a reputable lender? Has their current home been sold, or is it at least listed for sale?

It may turn out that the offer is fine, but these are questions that should be considered.

Another scenario involves conditions. The highest offer might have conditions such as your property passing a home inspection or the buyers selling their current home. That would make the second-highest offer with no conditions more attractive — especially if the price isn’t far off that of the highest offer.

Keep in mind that you can ask to have conditions dropped in your counter-offer.

As you can see, deciding which offer to accept is not as straight-forward as it may seem, especially if you anticipate getting multiple offers.


What to Look for when Watching a Walk-Through Video

Walk-through videos are becoming increasingly popular. The seller’s agent simply arranges a filmed tour of a home, often including commentary, and then makes the video available to prospects.

When you’re shopping for a new home, you want to get the most out of watching this type of video, especially if you’re relying on it to help you decide whether or not to make a viewing appointment.

Consider these suggestions:

• Remember, it’s a video. So take advantage of the ability to pause, go back and forth, and take screenshots you can review later.
• When you’re watching, look for everyday items that can give you perspective, such as a lamp, sofa or chair. These items will help you gain a more accurate sense of room sizes.
• Although that previous tip will help, it’s still difficult to judge room size on a video. So, don’t be quick to dismiss a listing because you think the rooms might be too small.
• Pay attention to what is not shown. Did the agent leave the ensuite bathroom out of the video? That may indicate an issue.
• When viewing the main rooms, such as the living room and kitchen, try to get a sense of how your furniture will fit.
• Make a list of features and characteristics you want in your next home. Have that list handy as you watch the video. You can use it as a checklist.
• While you’re watching, jot down any questions you have about the property.

After watching the video, if you like what you see, take the next step. Schedule a viewing appointment.


Victoria Housing Inventory Continues to Decline Over Summer Months

A total of 835 properties sold in the Victoria Real Estate Board region this July, 14.7 per cent fewer than the 979 properties sold in July 2020 and 11.4 per cent fewer than the previous month of June. Condominium sales were up 18.8 per cent from July 2020 with 284 units sold. 16 per cent fewer condominiums sold in July 2021 than in the previous month of June. Sales of single family homes were down 29.2 per cent from July 2020 with 396 sold. 10 per cent fewer single family homes sold in July 2021 than in the previous month of June.

“The real estate story right now continues to be inventory,” said Victoria Real Estate Board President David Langlois. “The market is driven by inventory; and fewer home listings lead to fewer home sales. In that context, these numbers do not reflect a downturn in our market but reveal sales falling due to this continued trend of low inventory.”

There were 1,270 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of July 2021, 52.1 per cent fewer properties than the 2,653 available at the end of July 2020 and 7.6 per cent fewer than the 1,375 active listings for sale at the end of June 2021. The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in July 2020 was $909,900. The benchmark value for the same home in July 2021 increased by 18.9 per cent to $1,082,000, a 1.7 per cent increase from the previous month of June. The MLS® HPI benchmark value for a condominium in the Victoria Core in July 2020 was $494,900, while the benchmark value for the same condominium in July 2021 was $535,100, an 8.1 per cent increase.

“As a sort of housing gridlock continues to develop, the pressure to create more of all different types of homes in our community of should not be lessened,” added Langlois. “It is important for the long term health of our housing market that a strong focus continue on developing new homes to meet our growing demand. The current market is increasingly challenging for buyers and sellers. It’s important to access the expertise and knowledge of your local REALTOR® to ensure your interests are protected.”

MLS® property information is provided under copyright© by the Vancouver Island Real Estate Board and Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification.