Today in the Greater Vancouver residential real estate market, multiple offers are increasingly becoming the norm. I've participated in hundreds of multiple offers acting for both the buyer and seller.
Multiple offers on a property can be very exciting, financially rewarding, stressful, interesting or disappointing, and can unleash a myriad of other emotions depending on whether you are the buyer or the seller.
Although we usually only encounter multiple offers in an extremely hot or active market, they can occur on any property, at any time - especially a trophy property or if the location is not easily replicated.
STEPS TO SUCCESS FOR BUYERS
Become an expert in the market or immediate area where you want to purchase. To do this you should be familiar with the amenities in the surrounding area such as schools, transportation and shopping as well as nearby services. Watch the market for a few weeks, view the homes that become available and learn their sale prices. Initially you will be interested in a number of homes in your preferred area but within a few weeks, as you refine your criteria, you will find your search narrows as well as the inventory!
Have your professional team assembled and know who you will choose to do your inspection, your lawyer or conveyancer, contractor and most importantly your lender or mortgage provider.
Find the property that fits your goal but don't get caught up in the excitement and speed of the market. Ensure you select a property wisely and that it meets your needs.
Write an offer and remember, you're not the only party that is interested in the property. Write as few subjects as possible with the shortest subject removal period. You want to provide the seller with the least amount of risk if they select your offer. You'll also have to consider price. Remember - you will have become an EXPERT in the marketplace so you will know what properties are trading for. As your realtor I can help advise a price. You'll know that your offer will be highly considered and you won't have overpaid!
As a buyer you may put yourself at RISK in a multiple offer situation if you put in an offer on a property that has an inferior location, a far off completion date during which time the market changes, if you don't have a professional inspection or if you over pay given your expected timeline or ownership horizon. Never forget to complete your due diligence and listen to your expert advisors!
Your REWARD will be that you have successfully purchased the home of your dreams.
STEPS TO SUCCESS FOR SELLERS
Prepare your home for sale by ensuring all the small items that you've been meaning to fix for years have been completed. Declutter and remove all the items in your home that are not deemed necessary to live on a daily basis. You want your home to appear as large and inviting as possible.
Staging is crucial for both inside and out. Staging professionals know just how to arrange your home furnishings to appear welcoming, each room is well purposed and the photographs of your home will attract more buyers to personally view your home.
Know what you want at the time of listing. What are your goals? When do you want move? Where are you planning to move to?
Price is critical so price conservatively in order to attract the highest number of offers.
In my experience sellers have a large list of items they wish to complete prior to listing. Most sellers prepare for 4 - 6 weeks prior to selling. Go to open houses and have a look at nearby home preparations. This is the most intense and difficult part of the process for a seller.
Once your home is listed, make it available and easy for buyers to view. Be extremely flexible for the first 14 days of your home's listing date - this is the peak of the market's interest. Allow buyers to complete home inspections - this only helps you receive the highest and best offer.
Receive Offers - set the date and time to receive offers within a 10 day period of the initial listing. After all, why not ensure your property has been fully marketed to the public. Often times the more offers, the higher the price.
Not all offers are created equal so ensure you fully understand the price, terms and conditions of each offer. Revisit your goals to ensure you select an offer that meets your expectations.
Don't forget about a back up offer! If you have subject conditions on the accepted offer, consider obtaining a back up offer from a competing buyer once you've got your accepted offer.
Your REWARD for all the hard preparation work will be receipt of the best offer with the fewest subject conditions.
It's very exciting to be the seller in a multiple offer in a fast paced seller's market so ensure your property has been marketed to the absolute highest professional standard to attract the most favourable offer!