In just a few short years, the Metro Vancouver and Fraser Valley real estate markets have become so hot that multiple offer situations are the new norm. So, what are the rules?
Real Estate Bidding War Rules
It might surprise you to learn that there are very few official rules when it comes to presenting multiple offers. Real estate boards and licensing agencies have simply not been able to put rules in place fast enough.
Our local governing bodies have stringent rules about cooperation, ethics, and schedule of fiduciary duties. When it comes to multiple offers, however, there’s very little in the way of official guidelines.
If a seller expects bids, it’s generally to their advantage to review all offers at a scheduled date and time. Of course, sometimes sellers get excited if a “great” offer comes in before the posted time and will refuse to wait to see all the offers. On the other hand, sellers will sometimes refuse all the offers that come in.
Are you considering competing in a bidding war for a property? If so, it’s important to understand how the seller’s agent intends to manage the presentation process. You could be given a single opportunity put in your best offer. There may not be an opportunity for a counter offer. You may not be able to make changes to your offer once it is submitted.
It’s important to remember that it’s not always about the highest price.There may be other factors that the sellers are looking for, and ultimately acceptance of the offer is always the seller’s final decision.
If you want help making sense of it all, let’s chat.
Historically, our Greater Vancouver real estate market “peaks” with May being the busiest month of the year. Looking back over the ten-year sales pricing trends, we see again and again the crest rising in May before falling off for summer. The big question on many buyer’s minds is “will the warmer weather bring on a cooler housing market this year?”
Statistically, the answer is yes.
If you have been looking to buy in or around Vancouver, you have already discovered the Vancouver housing market is not for the faint of heart. Or if you have given up and abandoned your home search altogether, now just might be the time to reconsider and start paying close attention.
One of the largest challenges of the summer real estate market is it is a very short season. While spring generally has a long lead up and crest lasting almost 5 months, the summer downturn lasts just a few weeks before things pick up again for fall.
The biggest hurdle for buyers seems to be once the pace of the market eases off many get nervous and miss their opportunity, wondering how long the slower trend will last. It is, of course, much easier emotionally to buy in a frantically increasing market than a market that seems to be slowing down.
Looking to buy a place to live in Vancouver? And by Vancouver, I mean its outlying areas and suburbs because they are all equally as busy. New West, Burnaby, the Tri-cities, Richmond, Maple Ridge, and Surrey have all seen unprecedented growth and housing price increases this past year.
You can expect multiple offers, bidding wars, counter offers over and above the asking price, subject free offers, waiving your home inspection clause, and sending a copy of your bank draft for the deposit before you even know if your offer will be accepted.
You can also expect disappointments, compromises, and to be haunted by the ones that got away.
In the past I used to meet with new buyers for a discovery session to learn more about their housing needs and wishes to see how I could be of service. Now it’s more of a soul-searching meeting to see if they are mentally prepared for real estate’s emotional roller coaster ride.
Many buyers describe the buying experience as overwhelming, frustrating, disappointing, and heart breaking—not exactly the warm and fuzzy HGTV episode of House Hunters they may have envisioned.
But those same buyers also say owning has been one of the most gratifying experiences of their lives, being able to stop paying rent and build equity in your own property, or finally move out of their in-laws’ basement has made all the heartbreak of this super fast paced market worth it! Plus the quickly rising prices have helped many new owners bank home equity faster than they ever thought possible. If you have been thinking about buying a property and need some realistic guidance let’s chat!