Multiple offers are officially the norm in Vancouver. East Vancouver Townhomes and Duplexes are no exception. Multiple offers first started when the Westside detached market took off with an explosion of foreign buyers and builders. This then trickled into the condo market and is now everywhere in between. It’s rare that if a property is listed correctly that it will NOT receive multiple offers. So as great of a time as it is to be a seller it can be very challenging for buyers who are working within a budget to purchase their next home.
3 Bedroom Townhomes are in High Demand
Lately the 3 bedroom townhome and duplex market has been RED-HOT as young families have outgrown their condos and are looking to have an extra bedroom as their family grows. This has put huge pressure on the 3 bedroom market and is especially significant if you are within walking distance to a park or an elementary school.
5 Tips to Start A House Hunt
So the question remains… What do you do if you are entering multiple offers? Here are my five biggest suggestions to my clients when we start the house hunt.
1) Get your finances in order.
This doesn’t mean that you need to be an “all-cash” buyer or have 50% down. It means that you need to sit down with a mortgage broker right away, and have the discussion about what you can afford. If you can afford 500K then we will not be looking at properties priced at 600K. It just doesn’t make sense and we do not want you to fall in love with something that is going to be a stretch. The other conversation you want to have is “can I offer subject free”. This question is essentially a mortgage brokers worst nightmare as they typically like to have a few days for a bank appraisal. With that being said some mortgage brokers will give you the go-ahead if you have a large enough down payment as in multiple offers it may be your only chance.
2) Don’t get emotionally attached.
Every time there are multiple offers there are at least 1 or more hopeful buyers that do not win. It can be tough if you have already began mentally moving in and are already in love with your new home. In this competitive market it is important to understand that it may not always work on the first chance and to not get discouraged.
3) Get your inspection done prior to the offer.
As subject free offers are often the only chance you will have it is important that if you are going to get a home inspection done that you do it prior to submitting an offer. This can get expensive, however a few inspectors are now offering a pre-offer inspection at a discounted rate to help the cause.
4) Get the Deposit.
The best offers not only are subject free but also have a deposit with them. This shows that the buyer is fully committed and makes the deal as firm as possible. It can help to have a larger deposit but as long as the deposit is 5% it shows that you are a serious buyer.
5) Go in with your best offer
With multiple offers don’t expect to negotiate. If you go in low hoping that you will get a counter there is a strong likelihood that the seller will accept or work with a higher offer. You typically want to put your best foot forward and hope that this is enough to get it done. Nothing is worse than going in low only to find out that they accepted another offer that was within the range that you were willing to negotiate up to.
All in all multiple offers are the dream of a seller and the nightmare of a buyer. Buyers need to understand the process and have an agent willing to help them through it. It is important that you follow these guidelines whenever possible to give yourself the best shot. It may take several tries before you get a successful offer but it’s important to stick to the process and stay positive. If you would like to discuss these or any other techniques I would be happy to have a discussion with you.
Casey Archibald – 604-363-7858