Want the House? Be prepared and Stick around!
As many of you know, the detached home market in many areas of the lower mainland is red hot. Inventory is down and sales are up which creates a highly competitive market. I was yet again in a multiple offer with a client in North Vancouver a couple weeks ago and the competition was fierce. How competitive is this market? According to SnapStats (email us if you are interested in receiving the comprehensive market report called SnapStats) the sub-area of Lynn Valley in North Vancouver saw 29 new detached listings in April 2014 and had 27 sales! A sellers’ market is classified as having a listing absorption rate of 21% or greater. In the month of April 2014 Lynn Valley saw an absorption rate of over 93%.
Buyers often shy away from writing offers for fear of being pushed to write offers that are substantially over list price. At the end of the day you must be competitive with your offer price and may find yourself writing above list price but this depends on the particular property and it’s pricing.
Aside from your offer price there are several other ways to set you apart in this process. If you are not in a position to write a subject free offer (i.e. you need a finance clause, inspection clause, etc.), it is important to make the subject period as short as possible. You could consider having a pre-offer inspection completed and review all documents relating to the property (title, disclosures, etc.) in advance so that you can remove these clauses. If a finance clause is necessary be sure you have a pre-approval and speak with your mortgage professional to see how quickly the financing can be completed.
Last but not least, accompany your Realtor. In this instance my client and I remained in our car outside the home in question for three hours. At the end of the day this was a huge reason that they had the winning offer as they were able to sign and counters immediately.
Keep in mind that every offer scenario is different. Contact us today to put yourself in the best position to win in multiple offers! Remember that your offer strategy is just as important if you are not in a competitive situation (i.e. there are no other offers).
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