Multiple Offer Situations for Buyers

What are they?

A Multiple Offer Situation is when more than buyer wants to present an offer on a property at the same time. The relationship between buyer and seller goes from a negotiation to an auction, with the highest bidder winning. The Buyers have to compete to get an accepted offer.

3 Ways a Buyer can Win in a Multiple Offer Situation!

1) Hire a good Realtor who specialises in the type of property or area you are interested in. Ask them how many times their buyers have been successful in a multiple offer situation. The more success the better.

2) Be prepared! Make sure you are pre-qualified with a mortgage broker or your bank. This means you will have a written confirmation about how much they will loan you. Get as much information about the property that you can before you write an offer. This will allow you to have a shorter due diligence or “Subject Removal Period”

3) Know what you want to spend before you write the offer. It’s very easy to get caught up in a multiple offer situation. Your Realtor should do an independent market analysis on the property to give you an idea of value. Decide what you want to pay before the offer is presented and stick to it.

If you utilize all three of these suggestions, your chance of winning a bidding war or multiple offer situation increases dramatically. For more information call 604-763-3136 or Email me!

Check out the latest Stats from the REBGV to get an idea of whats been happening in the Vancouver Market.

Do YOU Want a Bidding War on YOUR Property? Call 604-763-3136 or EMAIL me or Check out How to Create a Bidding War on YOUR Vancouver Property!

First Time Home Buyer? You need to see these videos for First Home Buyers!

I’d love to hear your thoughts in the form of a comment question down below!

Thanks!

Its been said that a picture says a Thousand Words…

What do terrible Listing Photographs say about the value of your home?

Poor listing photography undervalues your property and will never convey how beautifully maintained and decorated your home is. Here in Vancouver, terrible (or non-existent) photography for listings is RAMPANT! Have a quick look on Realtor.ca and you can see how many listings have either bad or non-existent photos.

For the worst of the worst check out the blog Its a Lovely Listing for a good laugh.

Getting a professional photography is one of the best ways to get top dollar for your home. I have all my listings shot by John Bentley at the Real Estate Channel and as you can see they do a great job.

So remember – If you want to get top dollar when you sell a property, get professional photography!

Looking for your First Home in Vancouver? Check out these Videos with First Time Home Buyer Tips!

Questions on Selling a Condo? Have a look at these Videos on How to Sell a Condo in Vancouver!

I’d love to hear your thoughts in the form of a comment below!

Keep this in mind if you’re buying a condo in Vancouver. A condo that initially looks solid as a rock, may be a festering rotten mess inside the walls or in other places you can’t see.

4 ways to avoid buying a Leaky Condo

1) Use a qualified, experienced Realtor who specialises in the area you are buying in.

Using a qualified Realtor specialising in the area you’re buying who will know which buildings are or have been Leaky Condos. To make sure they know their stuff, Use this simple test.

Ask them which buildings (ask them about specific addresses or building names to be sure) in the area you’re interested in are leakers and which ones have or had problems. If they have lots of info on this topic and can name specific addresses and names of buildings that are problematic you’ll know they know their stuff. If they’re vague or don’t know anything, keep looking for a Realtor. Also Don’t hire your father-in-law’s uncle who’s a Realtor in the ‘Burbs and needs directions to get to showings.

Go with a Realtor who knows the product (like me!). It’ll save you time and money.

2) Read the Strata Documents and any and all Engineering Reports

Reading 2 years of Strata Council Minutes and most importantly any and all Engineering Reports and/or Envelope Assessments is the simplest way to know if you’re buying a leaky condo. Look for references to leaks, water ingress, repairs for water ingress, references to Engineering Reports or Envelope Assessments, or anything else that relates to repairing water damage.

3) Make your offer Subject to Inspection by a Qualified and Certified Home Inspector.

Having your Realtor make your offer Subject to Inspection and then hiring a Qualified and Certified Home Inspector is the CHEAPEST INSURANCE AGAINST BUYING A LEAKY CONDO. If ANYONE (your Realtor, the Sellers Realtor) says you don’t need a home inspection, a red flag should go up in your mind immediately. Have a look at my video on why you should always hire a home inspector

Have your Home Inspector read over the Strata Minutes and any Engineering Reports before the inspection and have the Inspector compare the documents to what they see. That’s a good way to ensure what’s in the documentation is accurate.

4) Ask Questions!

If you have questions or don’t understand the Strata Documents ask your Realtor and if you have questions or don’t understand the Engineering Report ask your Home Inspector. Never be afraid of asking questions and be wary of those who who refuse to answer your questions.

Check out this article from the CMHC about leaky condos

Questions on financing a Leaky Condo? Check out my video on How to Get a Mortgage on a Leaky Condo!

Want to AVOID BUYING A LEAKY CONDO? Check out my First Time Home Buyers Guide! Its a series of videos that explain the home buying process in Vancouver in detail, with great tips on how to avoid buying a leaky condo.

I’d love to hear your questions or thoughts in the form of a comment below!

Working with a Realtor The Agency Relationship in British Columbia by Mike Stewart Vancouver Realtor from Mike Stewart on Vimeo.

Hi All,

The “Working with a Realtor” brochure is one of the most misunderstood documents I work with.

Some people think that by signing this document they are committing to work FOREVER with the Realtor who got them to sign it. THIS IS NOT THE CASE!

The “Working with a Realtor” brochure is simply a signed confirmation the Realtor has explained the Agency Relationship to the client.

By signing this brochure, the client is NOT BOUND TO THE REALTOR. It is simply a signed disclosure that the client has had their rights in the Agency Relationship explained as well as the Realtors obligations and responsibilities to the client in this relationship. Nothing more.

The Agency Relationship is as follows:

1) Undivided loyalty. The Brokerage must protect the principal’s
negotiating position at all times, and disclose all known facts
which may affect or influence the principal’s decision.
2) To obey all lawful instructions of the principal.
3) An obligation to keep the confidences of the principal.
4) To exercise reasonable care and skill in performing all assigned
duties.
5) To account for all money and property placed in an Brokerage’s
hands while acting for the principal.

If you feel your Realtor is not following these rules bring it to their attention. If this doesn’t work, speak to their manager.

Here’s a copy of the Working With a Realtor Brochure:
Working With a Realtor by Mike Stewart Vancouver Real Estate Agent

Please leave a comment, I’d love to hear your thoughts and questions!

I saw this great animation about the Credit Crisis and I thought I’d share it. Its by Jonathan Jarvis as part of his thesis work in the Media Design Program, a graduate studio at the Art Center College of Design in Pasadena, California.

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

What do you think?

Hi All,

Pretty much everyday someone asks me when prices in the Vancouver real estate market will hit bottom and everyday I say I don’t know.

I say I don’t know, because I don’t have a crystal ball and can’t see the future and as I licensed Realtor I can be liable if people take a hit relying on my predictions.

There are people out there who are saying they KNOW when the prices will hit bottom and they can tell when prices are bottoming as they are hitting bottom. Don’t trust these people!

What happens if prices stabilise and a bottom is called and then prices fall again? Nobody can accurately predict a market bottom and don’t trust those who say they can.

The market bottom can only accurately ascertained with 100% certainty AFTER it has been hit.

In making your decisions about buying or selling real estate and timing your transactions, do your own research. Read widely and speak to a variety of people with different viewpoints. Don’t rely on those who have simple answers that are too easy.

If something is too good to be true, more than likely it isn’t true.

Please leave a comment, I’d love to hear your thoughts!

Hi All,

American buyers are back in the Vancouver Condo Market! A good exchange rate for US buyers and the fact that some individuals and companies Stateside are weather the storm well means our American freinds and neighbours are back.

Is this a sign that Stimulus is bringing confidence back?

On another note this Video is the first I have shot with my new Flip Mino HD Camera. I’d love to hear your thoughts and feedback on the camera and this video from a technical perspective.

I’d love to hear your thoughts! Please leave a comment below!

Stimulus packages coupled with ultra low interest rates are attempts by national governments and central banks to reflate economies around the world. If these efforts are successful (I think they will) I think inflation will be an issue in 2-3 years in Canada. I think elected politicians and to a lesser extent central bankers will find it very difficult to stop priming the pump once things improve.

I think changes in the Chinese economy will also push up inflation as we move forward. A 2007 Report by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) has said inexpensive Chinese exports have kept inflation around the world in check. As China develops though, the cost of China’s labour becomes more expensive, pushing up costs for the huge amount of simple products it exports around the world.

How does this relate to Vancouver Real Estate?

Inflation will cause prices and rents in Vancouver to increase while fixed rate mortgages locked in before inflation hits will decline in real and nominal value at an accelerated rate. Equity will increase at an accelerated rate for those with fixed rate mortgages.

Variable rate mortgage holders would see their rates and possibly payments rise in line with Bank of Canada rate increases to combat inflation.

If inflation does re-appear it will be very interesting time in the Vancouver Real Estate Market.

I’d love to hear everyone’s thougths!

Lowballing Vancouver Real Estate

It’s a buyer’s market for Vancouver real estate these days and Lowballing is a great way for buyers to get the best deal possible. For sellers a Lowball is an opportunity to get an accepted offer in a time when these are scarce.

Many buyers are afraid to Lowball for fear of insulting the sellers. With a Lowball offer it’s like anything else in life, if you don’t try, you’ll never know!

I put a deal together at 2502-1483 Homer Street. The asking price was $1.1 Million and we got it for $975K in October of 2009. The last sale of a comparable was for $1.096 Million in August. Lowballs work.

What is a Lowball?

A Lowball offer is one that is significantly less than the asking price of a property.

What to Avoid when Lowballing.

Offering what you will pay. Your Lowball offer should intitally be below the amount you actually want to pay. The Lowballing Buyer wants to create the impression in the Sellers mind that the Seller has a good deal because they have got the Buyer to raise their offer price.

Walking away from a sellers counter offer. A Lowball offer allows a Buyer to assess the Sellers motivation. Some Sellers may be desperate, but try to create the impression they are not by responding to a Lowball with a high counter offer. If the Buyer doesn’t respond to the Sellers counter thats teh end of it. You can’t get anywhere in a negotiation if you’re not negotiating. Persistence pays when Lowballing.

How to make a Lowball Offer work in Vancouver.

Give the Seller something. If you are going to come in low on price, make sure to add a sweetener like a quick completion date or a short subject removal date. The seller may look more seriously at your offer if you add these sweeteners.

Make a good case for the low price. If you’ve done your homework and you have some documentation to support your offer you may find the seller comes around. A seller may not have known about a recent transaction that has impacted the market, if you let them know, they may go for your offer.

How to deal with a Lowball Offer if you are a Seller.

Don’t over price your listing! Have a look at this video on overpriced a listings. Check out my post on How to Avoid a Lowball Offers for Sellers of Vancouver Real Estate

Looking for advice on buying a property in Vancouver? Check out my First Time Home Buyer Videos!

If you have any questions feel free to drop me a line!

Hi All,

This is a bit frivolous, but it was just so gorgeous I had to share!