After posting my blog yesterday, I was actually a bit nervous that I would have to report bad news. In the end, it turned out that the property had a total of 6 offers on it. My client and I met last minute to make some final adjustments to the offer. I contacted the agent for the final time and then headed out to present the offer in person to the sellers and heir agent. I like doing this as, it not only shows that the buyer is serious and dedicated but it gives me a chance to discuss with the sellers, how well I educate my clients with regards to things that could ultimately lead to a collapsed deal. Anyway, the evening ended well and all the nervousness was for nothing. Got the call from the agent at about 9pm accepting our offer. Congrats to my clients!
'Tis the Season
While Black Friday has passed and Cyber Monday Is in its last throes of shutting down, the craziness in the real estate market continues. I shall be competing in yet another multiple offer this year tonight and, while my client has been informed of the realities of this situation, and we are as prepared as we can be given the circumstances, it is always a little nerve-wracking going into these. Did we do enough? Are we “really” competing? These are the questions that haunt me at night. Anyway, yes, the crazy holiday sales continue in what has once again been one of the busier markets on record. Almost every property I wrote on this year, was a multiple offer situation. I ended up getting about 80% of them, which is not bad considering the factors that come into play. If you want to better understand how to be successful in these situations, then follow this formula as best as you can.
1. Prepare the client- explain the situation and show them the comparable sales. It is not just about what the property is listed at.
2. Contact the mortgage broker (not the client) to find out how “approved” the financing really is. This is for the benefit of all involved, but especially the client.
3. Have an inspector ready to go. Invest the $600 before you have the property. Better to know beforehand. This gives you a huge advantage over anyone else who does not have an inspection done.
4. Review the title and PDS with your client. Make sure nothing will have a negative effect on the financing.
5. On your inspection, take note of potential insurance issues like poly B piping and aluminum wiring. Once the inspection report has been received, confirm with the clients insurance company that they won’t have any issues.
6. Remember the adage, “ Bigger is better”. Make your deposit as large as possible. Ensure that the client understands that this gives the seller a security bond that will ensure you complete.
7. And lastly, price. Look at the comparables, show them to your client, and then throw them out. Once your client has an understanding of market value, it only comes down to who wants it more. After dealing with dozens of foreclosures which are effectively all multiple offers in court, the one thing I always advise my clients is, “put your best foot forward”. If you lose it by $1, you have to be ok with the fact that you offered everything you would. Do not expect a counter offer as they are rarely received. Most strong offers will even consider leaving the completion and possession dates open to further ensure a favourable response.
8. Did I say lastly on the last one? Finally, pray to whichever God you believe in that someone you are up against hasn’t already lost out on 10 others and has gotten to the point where they just want to end the pain.
Happy Holidays everyone and wish me luck for tonight
It's probably the question a Realtor gets asked more times in a day than anything else- "Where is the market going?". Always a tough one to answer as there are so many factors that come into play. The World is a much smaller place than it was, and make no mistake about it, Vancouver is now a global market, so much of what determines our market is outside of our control, and our government's for that matter!
In 1986, Expo showed the rest of Canada how beautiful the West Coast was...and they came. We did the same for the rest of the world in 2010...and they are still coming. And why wouldn't they? We are consistently voted in the top 3 of the best cities in the world to live (Canada itself just got voted the best country to visit by Fodors). We have mountains, fresh air, and a stable government- well somewhat stable. (investors don't like it too much when government sticks their nose into a free market economy- something that they are currently letting us know- sort of like a "time-out") Do you know which city is usually in the top 3 most dangerous cities in which to live? Beijing. The air is so bad there all the time that you can never see the mountains and the government, at any time, can seize all your hard-earned money. That's right- where would you want to live?
Also, what is even more interesting, is that at the same time the provincial government brought in the foreign buyers' tax, the Federal government increased it's immigration policy. So, we are not really trying to stop foreign investment, we are just going to make the foreigners Canadian.
Vancouver may be on a "time-out" at the moment but the rest of the Province is booming. The Okanagan prices are through the roof once again, and Prince George is booming. Most of this is being driven by a flood of migrants back from Alberta with pockets full of money, as well as by those Canadians who were shrewd enough to invest in Palm Springs when the market was down- selling and making a few hundred thousand. That US market has recovered about 80% of what it lost in the crash of 2008.
Yes, we may be in a lull right now, but we have 4000 new people coming to the lower mainland every month and they all need a place to live. Our climate, our air and our proximity to China, India and the Phillipines has not changed. Our dollar still trades at 75 cents to the US dollar (the currency of choice for all foreigners), and that makes us still a bargain. So sit back, relax, and enjoy the calm - it will not last!
Observations in October
Interesting times to launch my first ever blog which I aim to be a mixture of fun, philosophy, and of course, real estate. Here we are in one of my favorite times of the year- October.
Leaves falling- in West Vancouver, just like their high end housing market. Apparently the overseas investor has decided to shake their two hundered year old elms a little bit- while here in the Fraser Valley, as I peek out of my window, the trees seem as full as they were in July, with a slightly different hue. Yes, it's different out here, where if the market drops 5%, it doesn't mean you just lost a new Bentley.
Baseball- The Blue Jays have once again made it to the Playoffs and are now sitting down 3 games to 1 to the Cleveland Indians in the ALCS finals. Oh boy! Being a transplanted Bramptonian, it's hard to find many things to cheer for out of Ontario these days, and I do hope the cheering keeps going for at least a little while longer. One game at a time. Meanwhile, the Toronto housing market continues to ramp up speed. I wonder if that has anything to do with the fact that the Provincial Government has decided not to meddle in a free market economy, or perhaps it's that people investing in that market are not afraid that they will be retro-actively taxed? Who knows? Maybe everyone just wants to live somewhere where they always get to see the Leafs falling?
Hockey- Speaking of Leafs falling....wait, they haven't yet?? Just another reason to love October.
The Economy- Bank of Canada just announced that they will be keeping the lending rate at .5% and predict a massive growth of 1% for this year followed by a resounding increase for 2017 all the way up to 2%! They have blamed the slower than expected growth on, among other things, the slowing housing market. (Once again, wayto go Christy Clark!)
Halloween- Tip of the Day- Apparently we have to stay away from Creepy Clowns this year- as if there was ever any other kind!
Food for thought- 3 weeks left to find out if we're in the frying pan or in the fire. If you were an American, it would almost be better to abstain.
See you next week!