Inside a seller's market

You hear it everywhere these days:

  • "The market is great!
  • I bet you're loving this Vernon real estate market"
  • "It's a great time for you realtors."

From the outside looking in, it does seem like everything is coming up roses. However, from the inside, realtors often have a far different outlook.

A full fledged, hair-straight-back seller's market can be great — for sellers.

However there are two sides to every transaction — a seller side, and a buyer side. The buyers are certainly not enjoying this market, and it is riddled with issues behind the scenes.

There is a significant amount of wasted time in the current market. The general public sees homes selling quickly and think, “what an easy sale."

However, there are many, many transactions that don't make it to fruition. Buyers are feeling they must make extremely quick decisions or risk losing out on a home they want.

When decisions are made In a panic, often steps in the real estate process are missed such as making sure a solid financing preapproval is in place, or the buyer having the opportunity to really and truly ensure he or she even wants that particular house for certain before taking action.

Buyer's remorse is rampant in today's competitive real estate market and buyers are often looking for innovative ways to walk away from a deal.  

In addition, buyers often must attempt offers on two, three or five in multiples before being the successful bidder. What appears to be a quick sale for the seller is an agonizingly slow and stressful process for the buyer. 

Further to this, multiple offers have become the norm. Anyone who has ever been in a multiple offer situation with two or more offers, knows how incredibly stressful they are.

Buyers, sellers and realtors all feel an incredible amount of anxiety during multiple offers situations as there is always at least one loser and people are going to go away from the bargaining table disappointed.

Once again, great for the seller and not ideal for at least one unlucky buyer who has to start the process all over again. 

To compound the issue, finding affordable homes is becoming a thing of the past while mortgage rules continue to tighten. 

Often sellers, buyers and realtors are involved in transactions that fail due to the inability of the buyer to obtain financing due either to recent mortgage rule changes or bankers simply not having the time to verify the buyer’s information for a firm preapproval.

More wasted time for all involved.     

Seller's markets can be great for sellers. However from the buyer's point of view and the realtor's points of view, most would agree that a more normal, balanced market is far more desirable. 

Multiple offers? 5 top tips

Having more than one buyer fighting over your home is the ultimate home seller’s dream. 

And clearly, in the Okanagan these days, dreams do come true! How do you get the most out of a multiple-offer situation?

Helping our seller clients through many of these situations lately, we have put together the following tips for handling an offer competition on your home:

Go with the Best: Once again, whether you are a buyer or a seller, this is point No. 1 because this is the most important decision you make.

Choose a realtor or real-estate team experienced in handling multiple offers. Do not leave this to chance – experience counts here more than ever. You need the best information, advice and experience on your side as one false move and you could end up with no offers at all. 

Shop Around: It’s your realtor’s job to ensure all offers are in before entertaining the offers.

Ensure all buyers have had the opportunity to write an offer if they want to get in on the competition.Three offers are better than two, four offers are better than three – and so on.

Examine all the details: It’s not always about the best price. An offer with all cash with no conditions may be more desirable to you than a higher price with many conditions.

There are also many other considerations such as when they want to move in, what they want you to leave and if they want you to wait for them to sell their house first.   

Too Similar? Send Them Back: Sometimes the offers are simply too close to call. They can be coincidentally similar in almost every way. Often the best strategy is to send both offers back to both realtors and ask them to bring back their best offer before a certain time the following day.

Best offers wins.  

Encourage back ups: Once one of the multiple offers is accepted, there is never a guarantee (unless it is an all cash, no subject offer) that conditions will be removed. 

It is always a good idea to approach the second offer(s) to see if those buyers would like to accept an offer in back-up position; if the first offer fails, the second offer is automatically in first position.

This is a great insurance policy. 

All the above advice can and should be given by a realtor or real-estate team experienced in competing in multiple offers. 

Your best chance of success is to have a real professional fighting for you and your home. It’s a fight that is not for the faint of heart.

Want to have a true professional on your side in a potential multiple offer situation? Call the multiple offer professionals at the Salt Fowler Team at RE/MAX Vernon at 250-549-7258 and Just Add Salt.

Winning with multiple offers

5 Top Tips for Winning a Multiple Offer as a Buyer

There are more stressful things in life than finding out the offer you just signed for your perfect forever home is now going into multiple offers, but not many.

Having gone through many of these situations lately, we have put together the following best tips for winning in an offer competition:

Go with the Best: We put this as point number one because this is the most important decision you make:  Choose a realtor or real estate team experienced in competing in multiple offers. Do not leave this to chance – experience counts here more than ever. You need the best information, advice and experience on your side.

Best Price First: Usually in a multiple offer situation, the list price is now the minimum you will have to pay for the home – not the maximum. Put your best offer forward immediately, the highest you are wiling to pay. A price where, if it sells for more, you can say to yourself  “that’s OK, I wouldn’t have paid that much anyway.”

Fewest Conditions: It’s not always about the best price. If you offer all cash with no conditions, that offer can beat an offer with a higher price tag that is subject to everything under the sun. Remove as many conditions as you can while still allowing you to sleep at night. 

Highest Deposit: A seller will usually equate a high deposit cheque tendered with an offer with a more serious buyer than a low deposit at a later date, and therefore favour the higher deposit. 

Inclusions and Possession Dates: Usually a seller is happier if an offer allows them to take more “stuff” with them, and leave less. They also like possession dates that match their ideal move date. 

All the above advice can and should be given by a realtor or real estate team experienced in competing in multiple offers. 

Your best chance of success is to make your offer strong in the ways listed above, and have a real professional fighting for you and your offer to win. 

It’s a fight that is not for the faint of heart.

Tired of losing in multiple offers? Call the multiple offer professionals at the Salt Fowler Team at RE/MAX Vernon at 250-549-7258 and Just Add Salt.

New home good enough?

Is Your New Home Good Enough for You?

Buying a home is like having a new boyfriend. You are emotionally involved and have a tendency to look through rose-coloured glasses.

How do you know if this new house — or this new guy — is really good enough for you?

The answer: Call in the professionals!

In the case of a new boyfriend, you call in the ones who love you most for their opinions.

In the case of a new house, you call in the home inspector. 

What will your friends, family and home inspector tell you?

Impartial is good:

Just as your family and friends examine your new love interest from an objective standpoint with your best interests at heart, a home inspector is that impartial third party who will examine every detail of the home you think you love.

You may have a tendency to overlook obvious shortcomings in your mate and in your new home, but your friends and your home inspector will not! In both cases, brutal honesty is best.

Checklists are Better: 

Those rose-coloured glasses often overlook the details. Your friends and family are analyzing all the finest of details of your new love interest to compare to their internal “perfect man” checklist. 

The home inspector has the same type of checklists for your home in true paper format. He analyzes each home the same way every single time, and that is how you, and he, can know he won’t miss even the smallest detail.

The only way to find out if the house, or the boyfriend, is good enough for you is to have enough positive check marks at the end of the visual inspection.

Visual Cues: 

The inspection is all about looking for visual cues of something wrong beneath the surface. It takes a trained eye to notice something is haywire behind the walls or in the foundation or between the ears.

If there are visual warning signs, it merits an even more in depth analysis.

In both situations, if the home or the new guy don’t pass the test of the impartial third parties, it’s time to exercise your right to say next because you deserve the best man to spend your time with, and the best house to live your life in.    

More Just Add Salt! articles

About the Author

Lisa Salt is a Vernon born Realtor® who, along with her husband Gord Fowler from Calgary, lead one of the most successful and dynamic real estate teams in the North Okanagan. 

An international clay target shooting champion, Lisa brought the attributes of hard work and diligent focus to the real estate industry to create the success she and her team have today. 

To experience the local knowledge and expertise that only someone born and raised in the Okanagan can offer, call Lisa today and 'Just Add Salt'.

Website link:   http://www.saltfowler.com

Contact e-mail address:  [email protected]


The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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