A lot of folks I've spoken to over the last 18 months were upset because they did not list their home in 2022 when the market was bananas. And by "bananas" I mean that almost everything was selling for over BC Assessment in record time. May feel they "missed out" on the seller's market frenzy.
In 2022 I was listing on Wednesday, agent's open on Thursday, public open by appointment only (covid) on the weekends, offers on Tuesday by 5pm. 95% of my listings were in a multiple offer situation. It was pandemonium!
While this sort of market is great for seller's to get the most for their home it's rough on buyers. Buyer's end up making offer after offer with nothing accepted. There are some tried and true strategies to win at multiples but I'll tell you who doesn't win at multiples....unrepresented buyers. That's who.
Picture this, you see a house on the MLS. You love it! You go take a look at an open house and you absolutely picture yourself in the space. It's perfect.
Now, about 30 other people also love it and you all think that you can make the price work. Some people never want to be in a multiple offer situation so they won't make an offer (those are the people that will be kicking themselves for now buying in the last 18 months when there were no multiple offer situations ;)
You and 9 other parties make an offer. In order to be considered it's likely that the offer will have to be subject free. That means that you don't get to do an inspection. (unless you have a great Realtor® who gets your inspector in BEFORE the offer. Yes it's an expense but it could save you $$$ in the future)
Of the 10 offers the listing agent and the seller choose to work with us. (FYI, once the seller chooses to work with an offer they can only work with that offer. One at a time.)
After some back and forth we arrive at a price for the home that is satisfactory to both parties.
But we now have a 3 day rescission period on residential resale so we have to wait 3 business days. That means that you can rescind your offer for any reason within that period. It's a nightmare for seller's and it has caused some issues with the market but it's here so we deal with it.
If you rescind you will owe the seller a penalty of .25% of the purchase price to be paid directly to the seller for their inconvenience. Not many people rescind but I have seen it happen.
Finally, rescission is over and the deal is done! Woot. Now you just have to wait until completion (that's when the money changes hands from you to the seller and title is transferred to you through the Land Title Office) this is all done at the notary or lawyer's office.
If you're Realtor® was on top of things you'll have a condition in the contract that allows you to revisit the home a few times prior to possession. This is usually used for measuring and just getting back in there with some more time to dream about how your stuff will look in the space.
I realize this article is heavily weighted to the buyer but the title suggests I'd write about sellers...sorry about that. I get carried away sometimes ;)
Sellers, what you need to know is...your season is coming! FAST! Juggling multiple offers and quick timelines is something that very experienced agents are very good at. You absolutely need someone in your corner who can explain how it all comes together because the buyer's agents will be doing their best to get a deal for their buyers, even in a seller's market. It's not like shooting fish in a barrel, it's considerably more nuanced than that.
I'm off to write yet another offer this week! It's been crazy. As of today we're in a period where there is still some old inventory left and, therefore, some space to make a deal. It won't last long which is why I'm writing multiple offers each week right now!
If you're buying, call me. We need to get you in now!
Kommentare