5 Things To Know When Buying In A Seller’s Market
March 24, 2021
If you’re reading this article, you’ve probably noticed that 2021 is setting up to be another red hot year for the residential real estate market in B.C.
As inventory fails to keep up with buyer demand, the latest forecast published by the British Columbia Real Estate Association (BCREA) predicts that sales volume in Metro Vancouver will return to the sky-high levels seen in 2016. All that to say: we are officially in a seller’s market.
It can be difficult for inexperienced buyers to know what to do to thrive in such a competitive landscape. We’ve put together a list of the top 5 tips from the Momentum team that will help you set yourself up for success.
We are officially in a seller's market.
#1 Choose A Realtor You Trust
No matter what kind of market conditions you are facing, having a Realtor in your corner should always be your number one priority. A real estate professional will not only minimize your stress but will also help you navigate the entire buying process and protect your interests. There are zero upsides for a buyer to not be represented – you will not save money, and we guarantee the risks outweigh any perceived benefits.
Look for someone who has reliable experience and strong local market knowledge. Your Realtor should also be someone with who you communicate well, and who is willing and able to answer all questions that you might have about the home purchasing process.
#2 Talk To Your Mortgage Broker
Even if you’re just contemplating the idea of buying a home, talk to your mortgage broker as early in the process as possible. Knowing how much you can borrow will give you and your Realtor a realistic direction to what you can buy and where you can buy. It also might even show you extra steps you need to take before getting approved for a mortgage, like paying off credit card debt or your car’s lease. It’s essential that you get pre-qualified before you start looking for a home.
#3 Stay Focused & Determined
After you follow tips 1 and 2, you will be ready to work with your Realtor to get focused and look for properties that are within your budget and that match your family’s (realistic) expectations.
In a heated market, it may take a number of tries before you are able to secure the right home. It’s important to stay focused, learn from each situation, and apply that knowledge next time. It’s easy to get discouraged, but the guidance from an experienced Realtor will help keep you on track.
#4 Do Your Homework Before You Write
The listing of your dreams will likely have multiple offers from other qualified buyers so it’s important that you remove as many variables as possible before you submit an offer. In a hot market, the winning offer is often “subject free”. If your offer is conditional on financing or inspection, for example, it may not be enough to secure the property. You may want to have a qualified inspector or contractor walk the home, and you will certainly want to be certain of your financial security. Your Realtor should be able to help guide you through this process and ensure you feel confident.
#5 Be Willing To Move Quickly & Aggressively
In a seller’s market, taking a couple of days to “sleep on it” might be the difference between getting the home of your dreams and having to go back to browsing listings and scheduling showings. As soon as a home that ticks all the boxes pops up on the market, you have to be decisive and willing to pull the trigger. In many instances, you may need to pay well over the asking price. Following all the above tips will help you feel more prepared to make a quick decision, and will allow you to get over any fear or uncertainty that might delay your commitment.
With thousands of homes sold over the past 25+ years, Momentum is able to offer uncompromised service to anyone interested in buying or selling Fraser Valley real estate.