SUMMER 2016
MULTIPLE OFFERS WHAT YOU NEED TO KNOW!
T
he Victoria market area has really heated up in these past months. Properties are selling quickly and often above list price. In hot markets, it is common for many buyers to take interest in the same property. The result is multiple or competing offers written and presented to the seller. Did you know a seller’s agent is only required to state the possibility of multiple offers? A buyer should ask their Realtor to inquire if the listing agent has other offers in hand. If yes, how many have they received? Their Realtor should ask this immediately before they present their offer. Buyers should ask their Realtor if the listing agent is also representing a buyer with an offer. In the event that they are, they should ask if they have reduced their commissions as part of their deal. A listing agent must answer these questions; but, only if they are asked.
Holmes Realty Ltd. 2481 Beacon Ave. Sidney, BC V8L 1X9 250-656-0911 HOLMESREALTY.COM
In a competition, a buyer should make their best offer, their first offer. It’s unlikely that they will get a second chance. The offer should be as written few conditions as the buyer is comfortable with. Sellers will be more attracted to an offer that has few terms and conditions. This often means excluding conditions designed to mitigate risk, such as a building inspection or financing. A seller has no obligation to consider, respond, or counter your offer. If their offer was not selected, a buyer should not expect a response other than “Sorry, you didn’t get the house.” (continued inside)
CHANGES TO ASSIGNMENTS
MULTIPLE
arlier this year you may remember a number of news stories concerning Realtors in Vancouver taking advantage of home owners through the use of a little known assignment clause. This unscrupulous behaviour lead to a provincial inquiry and Real Estate Council investigation into how assignments are handled in our industry.
E
A full-price offer does no value of a home is what s asking price to get the ho
As of May 16th, the default contract must not be assigned without the written consent of the seller; and the seller is entitled to any profit resulting from an assignment of the contract by the buyer or any subsequent assignee. These terms can be modified; however, in that event, a full page disclosure of this change must be presented to the Seller with the offer.
A buyer should accompany their Realtor during the presentation of their offer. Sometimes that means sitting in the car outside of the house while the seller decides. This way, a buyer can quickly make changes to a contract or review a counter-offer. There is never an opportunity to “sleep on it” in a competition.
These new rules are excellent as they allow the contract to be assigned (with the seller’s permission) should a buyer become unable to complete. Alternatively, if the default clause is altered it should be more than apparent to a seller that the Buyer is likely to assign the contract.
Sometimes the offers are to resubmit with their bes
Hot markets can be a frus market, it is common to c the price. Buyers should ten, a list agent will delay tiple potential buyers an o often arrange for a buildin and steady approach to p
We cannot prevent multip ket. Many buyers just ch now you have an underst side of the table.
MARKET
Are you interested in up-to-date information about Real Estate, Lifestyle, our housing market and more? Just visit: http://fb.me/HolmesRealtyCanada
Did you kno month Ho publishes a M Update filled information a real estat
If you’re in receiving a valuable repo an e
reachus@holmes
E OFFERS (continued)
ot always guarantee a buyer will win a competition. The true someone is willing to pay. Many buyers will pay above the ouse that they want.
so similar that a seller may reject them all and asks buyers st consideration.
FUN FACTS ABOUT CANADA
• Canada has the longest coastline in the world. • Canada has 20% of the worlds fresh water. • 15,500 of the worlds 25,000 polar bears live in Canada. • 80% of all alcohol consumed in Canada is beer. • 77% of the worlds Maple syrup is made in Quebec. • Only 8 countries in the world are deemed less corrupt than Canada. • You can write in any language to “North Pole, H0H0H0” and get a letter back from Santa. • $100 bills are rumoured to smell of maple (although the Bank of Canada denies this).
strating, confusing and stressful time for Buyers. In a slower carefully research the condition of a home and bargain over have their financing in place prior to writing an offer. Ofy offers on a property for a few days in order to allow mulopportunity to view. During this time, a serious buyer can ng inspection. Unfortunately, with multiple offers the slow purchasing does not win the race.
• 53% of Canadians have a university education making us tied with the Russian Federation for the most educated country in the world!
ple offers, they are simply a natural part of a very hot marhoose not to take part in them. Regardless of your opinion, tanding of what to expect should you find yourself on either
UPDATES
ow that every olmes Realty Monthly Market d with valuable about our local te market?
nterested in a copy of this ort just send me email:
srealty.com
HAPPY CANADA DAY! JOIN US AT OUR OFFICE ON JULY 1ST FOR THE SIDNEY CANADA DAY PARADE!
ENJOY A BAG OF POPCORN ON US!
I
f you know someone who would appreciate the level of service our office can provide, please call us and we will take great care of them. Our office is totally committed to providing our clients with unsurpassed service. A referral is sending someone you care about to someone you trust.
“Every client deserves professional real estate advice and first-class service.” REACHUS@HOLMESREALTY.COM 250.656.0911 • 1.877.656.0911
Holmes Realty Ltd. 2481 Beacon Ave. Sidney, BC, V8L 1X9
Not intended to solicit business from individuals currently working with a Realtor®