Vancouver’s real estate market is a multi-faceted one. In 2016, there have been significant price increases for condominiums, attached homes, detached single family homes and other residential properties. This means while there are diverse options for those seeking a place to live in one of the world’s most liveable cities, navigating the waters can be complex. Here are some must-know facts and tips to keep in mind when you are buying a home in this red hot market.

Subject Free Offers Are Common

In a market where real estate is in such high demand, bidding wars are common and buyers need to be competitive. As a result, many buyers are making subject free offers to make their bids appear the most committed, time-sensitive and desirable. While this assurance is very appealing to sellers, buyers need to proceed with caution and understand the risks.

Subject free offers do not allow the buyer to walk away for any reason if the seller accepts. Even if the buyer is unable to obtain financing despite pre-approval, or if issues with the property are discovered, the buyer is committed to completing the deal. It’s critical for buyers to fully understand the legal repercussions of a subject free offer with the support of a real estate or legal professional, before they make the move.

Timelines Can Be Extremely Tight

With multiple offer scenarios common, most listings now have tighter timelines for offers to be submitted. Consequently, common steps that help to protect buyers, such as home inspections and appraisals, are often skipped. Once again, buyers need to be cautious and work with an experienced REALTOR® to ensure due diligence despite these tighter timelines. A REALTOR® can help ensure that potentially costly issues are brought to light.

It’s Important to Consider the Seller’s Motivations…

Going the extra mile can get an offer noticed when a seller is considering multiple offers. Of course, you’ll submit the best offer you can afford and you should be pre-approved for a mortgage, but take it a step further and consider what the seller’s motivations might be. For example, are they a young family looking for some flexibility in their closing dates to accommodate the end of a school year? Has the home been in their family for a long time? Will they only sell to someone that won’t demolish their property? Keep in mind the emotional attachment the seller may still have to their home.

…and Add a Personal Touch in Your Offer

Once you’ve determined what the seller’s motivations may be, use this to your advantage by adding a personal element to the offer. While the amount of money offered is often the deciding factor for sellers, it may not always be. A personal letter explaining why the property is a perfect fit for you and your family can show how your interests might align with the seller’s and put your offer at the top of the list.

There’s Been an Increase in Deposits

In the current market, the frequency and size of deposits offered by potential buyers to sellers has increased significantly. For homebuyers in today’s market, the ability to commit a sizable deposit can make their offer much more attractive.

At the same time, there are risks to be considered. Coupling a deposit with a subject free offer can make it incredibly difficult to recoup funds if the deal doesn’t close in the end. Additionally, efforts to recoup the deposit can result in thousands of dollars in legal fees if a lawyer is required to intervene.

Ready to Buy or Sell in Vancouver?

Finding a dream home in Vancouver’s real estate market can be overwhelming to those new to or even familiar with the market. Sotheby’s International Realty Canada can guide you through each step of the process—contact us to find an expert agent to get you started.

Looking for more information about buying a home? Download our free 2016 Homebuyer’s Guide here.

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