7 Tips to Being a Buyer in a Seller’s Market

Posted on by Meghan

squamish-sellers-market

If you’re buying a property in Squamish in springtime (or pretty much anytime of the year) the fact of the matter is, you’re buying in a seller’s market. There are some parts of the market that are more favourable to buyers then others (for example, anything over $1 million is staying on the market longer); however, for buyers looking for a condo or a townhome, the market is competitive and multiple offer scenarios are becoming the norm.

Squamish has been a seller’s market almost exclusively since 2013 based on the sales/ active ratio (also known as the market absorption rate) which measures the sales compared to active listings. With this in mind, there are some things to know about being a buyer in a seller’s market, and some ways that you can make this disadvantage work in your favour.

Have all of your pre-approvals in place

Having your mortgage pre-approval in place before you begin looking for a property will give you a realistic snapshot of what you can afford. Entering into a contract with pre-approved financing looks much better then going into a contract without a pre-approval, and in competing offer scenarios sellers often won’t even deal with a contract where financing has not been approved. A pre-approval takes a few days to process so if you’re looking to buy anytime soon this should be your first step.

Work on getting a solid deposit

When multiple offers are presented to a seller it all comes down to the details of the offer to determine who will be successful, it’s not all about price. Having a healthy deposit helps solidify an offer showing the buyer has access to substantial funds at the outset. Though this isn’t always possible, it’s important to put down as much as you comfortable can to solidify an offer and stand out from any competing offers. Though 5 percent is an acceptable deposit amount a deposit of 10 percent or more looks much more attractive.

Be flexible

When writing an offer in a competitive scenario being flexible with dates will work in your favour. Often sellers have dates that work best for them with regards to subject removal and completion. If you can offer sellers their best possible date situation you enhance your chances of being selected.

Be on your game

Submitting an offer on a property can be a fast-paced and sometimes stressful scenario. There are tight timelines that need to be adhered to so be prepared to respond to paperwork quickly which will involve having access to a computer or mobile device readily. You may also need to review documents (such as strata documents, disclosure statements, title searches) in a timely manner. Expect a lot of correspondence and information that needs to be dealt with in a timely fashion.

Don’t get disappointed

You may not land the first property you write an offer on, and that’s ok. It’s important not to be dismayed if you lose out during a multiple offer scenario. Every situation is a learning experience and sometimes it’s just not possible to be the strongest competitor (and you won’t have any idea what the other offers are anyway). If you miss out on a property you love stay positive, there is always something else just around the corner.

Work with a buyer’s agent

Make sure you are working with a buyer’s agent who can keep you up-to-date with listings that are on the market as well as ones coming up. Local real estate agents have their fingers on the pulse of the real estate market and can often get you an insiders edge on upcoming listings. They will also be able to quickly qualify properties for you by having an understanding of what you want, and having expert knowledge on the neighbourhoods, complexes and areas of Squamish.

Understand the market

It is important to understand the market so you know what a reasonable offer looks like. Your real estate agent will be able to provide you with statistics and recent sales, so you know what the trends are in the area and property type you are after. This will help you make a realistic offer and ensure you don’t pay too much for something because of the heightened hype and market activity.

Squamish is certainly the place to be right now and with that comes a real estate market in favour of sellers. As a buyer, there are several things you can do to increase your chances of landing the perfect property. If you’re thinking of buying in Squamish, contact the Team at Move to Squamish and let us help you navigate this sellers market, and use it to your advantage.

About Meghan

Meghan is a real estate agent who is passionate about connecting lifestyle driven individuals to her vibrant town of Squamish, BC. Meghan was born and raised in Squamish, spent 15 years living abroad, and is now back partnering with her mother Nanci Fulton who has been selling real estate in Squamish for 30 years. Meghan loves representing buyers, welcoming them to her community and helping them find their perfect place to call home.