To know where you are going, you have to know where you have been. This age old saying, or song lyric from ‘Lil-Wayne’ to our younger audience members, is where we start our tale. Today we’re going back to 2016. A time when the market was booming, homes were selling for record prices per square foot, within days of being on the market. On top of this ‘subject conditions’ were but a memory as everyone was to afraid to include them, in the fear of missing out on their desired property. Yes, this was a time which some predicted would never happen after the 2008 downturn, but were vastly proved wrong.
It’s important we look back on this market for what it was, a TEMPORARY time. This stage of the market was a rush for all parties involved in the transaction. Realistically it was not a scenario which could have lasted forever, and nore should it have. It was unsustainable and were this to be the case, Vancouver would become even more of a difficult city to live in (Gasp!)
It is because of this time though, and the confusion we are in the depths of hell in the current market, that this hesitation arises. The fact of the matter is, we are in more of a buoyant market now, one which is sustainable, and somewhat closer to reality.
Therefore if you as a buyer are put off because the home has been on the market for 60+ days, the open house is not packed as you go in, or the seller is open to negotiations. Don’t panic, this is just how the market should be now it has leveled out. In the current market, people are able to close at a later date, include subjects for financing or inspections, and generally have the freedom to view more potential homes. Home prices are a big topic in this sector too. Don’t forget, 9 times out of 10, the home is priced based on market value using the sellers REALTOR and comparable properties. Just because we are in a ‘downturn’ vs the 2016 market, it does not mean you are not getting a good deal if you’re paying any less than $50,000-$100,000 below the asking price. Of course, these decisions are yours to make as a buyer, however, if you delay because of the above, you risk losing the chance to purchase your perfect new home. Value is key these days as we’ve seen, if a home is priced effectively, shows well and has the features a buyer needs, it will move and you’ve just missed out on the home based on a made up belief, not backed by evidence, that you’re not getting a good deal.
From a seller standpoint, Buyer hesitation is not always buyers being hesitant. You need to realise that the high of a market will always be talked about more, and this doesn’t necessarily mean you can expect buyers lining up at your door with multiple offers. A lot of laws have changed such as foreign buyer tax, mortgage stress test levels, vacancy tax and the increasing difficulty to burrow funds being made more rigorous. When a buyer offers a price you deem a ‘low ball offer’ you don’t have to accept. Just don’t take this as a personal insult and realise they are maybe doing this due to all the barriers now laid out in front of them. Worse case scenario, send a counter offer. On top of this, buyers are now able to be more realistic with subjects, including inspections. If you want to separate yourself and showcase your home, think about getting an independent inspection prior to listing your home. But with the freedom to include these subject conditions, also inevitably leads to a longer subject removal date. Again not a bad thing and something to be put off by, it’s just the process to get these necessary agendas complete. Another tip to help your home sell, is make it look it’s best. Make sure they remember the home and you give them as little barriers to entry as possible (not literal barriers of course! But barriers to make an offer.) Clean the windows, wash that backsplash. It all helps in the sale of your home, especially in a market where buyers can afford to be more picky.
Hopefully this has helped shed some light into each parties different views on the market. As always, our aim is to educate. We don’t mean to offend, but we want to give you the honest truths in your walk down real estate lane! Let us know if you want us to cover a particular topic that will help you on your adventure! Our contact details are below and open to e-mails, texts or calls!
Until next week everybody!
Ben & Jay