How to buy a Greater Victoria Home in a crazy busy real estate market.
If you have been in Greater Victoria for a while and have been looking for your new or next home, you will have experienced or heard the super stressful home buying stories.
Multiple offers, sold in minutes, sold way over asking price, sold without subject clauses, what can you do to make the right home buying decisions at this time.
By all accounts, many of you reading this will have your self or at least know of someone who lost out on a great home, suite or property, you got outbid, or maybe didn’t act fast enough.
It is like an emotional roller coaster with way too many fast changes in direction
When the Greater Victoria Real Estate market is this active, are there ways that will dramatically improve the odds for you to not only find but be able to buy the home you want?
We have collected some tips here for you:
The Basics and Preliminaries about Home Buying in any market.
- Get pre-approved for your financing
This is really the first and likely most important step. Knowing your safe budget range is essential so it’s very important to get pre-approved and arrange your finances ahead of time.
Pre-arranging financing should include, securing your down-payment, (including gift letters and RRSP withdrawals if applicable), buying expenses, odds and ends and an emergency slush fund.
Talk to banks or a mortgage broker and work with them to fully understand all the various details and particulars, your payments and how much you can afford.
There are new rules for financing, so even if you recently were pre-approved, make sure your information is current and accurate. Check: CMHC also check if you are eligible for a first time home buyer exemption.
Yes, I am biased on both fronts, about using a REALTOR® and to use our Pfanntastic Real Estate Services.
Here are the reasons why we are biased. Like most of the important decisions in life, buying a home is a “team effort”.
As such, it is very important that you are supported by the best possible team you can afford to ensure the best possible outcome.
REALTORs® have typically access to all the available properties, however the best agents also have the experience, resolve, persistence and resources to truly add value and direct measurable benefits to your home buying experience. (getting you the best home, negotiate a better deal, and do so problem free).
Some agents are too busy to deal with first time buyers and delegate them to less experienced agents. When the markets are very fast or very slow, newer
agents just have not been around long enough to fully understand what might be needed to successfully assist you with buying your new or next home. New homes or resale homes, either way, working with multiple offers and digital negotiations are not as simple as people think.
What type of agent would you want working on your behalf?
The best agents have the relationships and ability to navigate the rapid market place and secure your next home.
- Be prepared to act quickly
Having all your ducks line up and for you and all those involved in the purchase. For all to be as informed as possible, to agree on the type of home, the location, the essentials of the home and amenities will prove to be a huge time safer.
Having all your other team members ready and on short notice will save time, money and disappointment.
We mean, people like; a good home inspector, a contractor (if you are buying a fixer upper), insurance agent, and possibly a lawyer/notary.
As you to will have (almost daily) communication with your REALTOR® , selecting an agent you like and trust, will pay benefits on a daily base.
You will also likely do a fair bit of “Homework”, in the beginning of your “home hunting” adventures. Just so that you become familiar with the market place, so that you will recognize the right home option/package when you see it.
In a crazy busy Victoria Real Estate market as we are currently experiencing, there is no time to waste. When you are prepared and ready, you can act quickly and confidently present a strong offer.
We don’t want to lose a great home just because we were not ready or simply because we could not act fast enough.
- Making an offer on a home general tips
Many may have heard that you never make your best offer first, however in the crazy busy Victoria Real Estate market of 2016, it is pretty rare that you are the only interested party in what you are considering as your next home.
Counter-offers are actually rare during this type of market, so your first offer to a seller, likely needs to be your best effort.
The key areas to consider in your offer:
- Price and deposit
- What is and what is not included in the sale?
- When do you want or need to move in?
- What Subject To Clause(s) (if any) do you want or need?
- Presale or New Construction Home Buying Tips
The key to presale in an active market is to have your REALTOR® register your interest in the development as soon as possible (Be sure that your REALTOR® is registered, otherwise you will not have an agent working on your behalf and protect you from possible issues).
The sale teams of new developments work for the developer (not you) so letting them know that you’re serious about buying, with your agent is important.
Even in pre-sales and new construction homes multiple offer are now relatively common, so presenting a clean offer (with or without conditions) does not always secure the property. Hence to know exactly what options, features alternatives and other configurations that you might consider can help you secure your next home
Given the current market conditions, you might want to expect that you likely have to compete with multiple offers.
Although this will feel like more stress than you want or need, it will require you to put your best offer on paper the right from the start of the negotiations.
With your mortgage pre-approved, and your deposit secured you should know exactly the highest amount you are able to pay.
The very best offers are also very clean and likely subject-free.
- With your mortgage pre-approved you should not need a financing subject.
- Inspections; and to remove the inspection subject, consider bringing your home inspector with you to the showing or at an open house.
- Being flexible with the dates also gives you an distinct advantage. Making it easy for the sellers to select when they can move out might be enough to tip the scales in favour of your offer.
Our 30 some years in and around real estate has shown us that good communication, preparation, perseverance and just the right amount of patience can make your next home buying experience much more rewarding than trying to take short cuts or trying to ride this roller-coaster by yourself.
It would be our pleasure to discuss your needs and concerns about your home buying objectives at your convenience. Peter Pfann will always treat you with respect and in full confidence.