Critical Information For Buyers In A Fall Sellers’ Market
Throughout the summer months, it is not unusual to see a noticeable drop in housing market activity. However, the summer holidays are officially over; the changing of the leaves, and the reality of sending the kids back to school has sunk in, and it is a perfect time to buckle down and get serious about buying or selling your home.
The pressure is on!
In recent years, the Lower Mainland’s housing market has been characterized by conditions largely favourable to sellers: a limited supply of available homes paired with high buyer demand. Fall is a time where the market picks up for both buyers and sellers, and it is important to be organized so you do not miss your perfect home.
Narrow your search.
First, narrow down your search criteria so when that perfect property pops up on the market, you are not humming and hawingx`you know exactly what you are looking for. Narrow down your neighbourhood, number of bedrooms, square footage, and purchase price. This will save time and focus your search efforts, and when you are notified a unit that meets your specification is available, you will be in a position to make a faster decision.
Get acquainted with your bank.
Determine the exact amount of funds you have available. During times when sellers hold all the cards, there will be a constant sense of urgency when it comes to making an offer as well as making sure you can obtain your money immediately, rather than having it tied up in an RRSP, GIC, or elsewhere.
Once you feel you are ready to purchase, speak to your mortgage lender and obtain a letter of commitment from the bank. Being prepared with your home-buying arsenal will do you great favours when it comes time to offer. Things can move quickly and you’ll want to be nimble in order to remain in contention for what could be your new home. This is especially important for those who bank with online-only banks. In a competitive market, you may need a bank draft upon submitting an offer. With an online-only bank, obtaining that bank draft could take up to 5 days.
Write a letter.
Finally, in a competitive market, it is no holds barred. Make your offer stand out from the crowd and pull on the seller’s heartstrings by writing a letter explaining your case and the reasons you love the home. This tactic does not always work; at the end of the day, it largely comes down to price, but in a multiple offer situation, if you are close to another offer, it may give you the opportunity to step up.
Seek the advice of an expert.
Do not go about the home buying or selling process alone! A realtor can help you make sense of the current market conditions. They can help guide you through the buying process and provide insight into what you can do to win a multiple offer negotiation.