The Vancouver and Lower Mainland real estate market has it's highs and lows similar to any other market, yet it seems that when it gets busy, it get's really busy fast.
This means being a buyer can be tough. There is a tactic that is becoming increasingly popular, a throwback from the craziness of the 2015-2017 market, where sellers are intentionally under-pricing their homes for sale in the hopes to generate multiple offers. Often this strategy works and sometimes will result in a home potentially selling for more money than it would be doing compared to a more traditional tactic of pricing higher and accepting lower offers.
So how does a Buyer navigate this challenge? It can feel like a poker game at times. The Seller is the dealer, the rule-maker who decides who wins. The other Buyers are your competition, and no one knows what hand they have and how they may play their cards.
Lucky for you, we have created a Multiple Offer Chance Enhancer for Buyers, which is designed to give you the best and highest hope of getting that home you love. Some of the strategies are more effective than others, with having the highest price most likely the way to win the home.
But what about if you cannot pay more than what the home is worth, or want to be cautious to not overpay for a tactfully underpriced home?
It's worth mentioning that paying more than the asking price for a home is not necessarily a bad thing.
1) A homes sale price should reflect its value, and typically does. A home that is under-listed, while it feels a little mischievous on the seller's end, does not always mean it sells for more than what it is really worth. Imagine selling a $100 bill and advertising it for $90. Everyone recognizes it is worth $100 and would be happy to pay value for it.
2) You may really want the home. Every home is unique and offers different things to different people. Someone may pay more to get a home near their parents for child care reasons, to get into a particular school district, or the home may offer a feature that is critical to a particular buyer (like a triple garage as an example).
While we all want to get the best price possible when buying a home, we recommend always getting advice on what the true value of a home may be before making an offer. For our clients, we create a written report with our opinion of the value of a home, every time before making an offer. This ensures our clients can make educated decisions about the purchase of their next home.
We wish you luck navigating the market should you find yourself in multiple offers.
Until next time,