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Enjoy the summer edition or our office newsletter with great information on what you need to know about multiple offers, understanding assignments of contracts and more!
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Holmes Realty Ltd.2481 Beacon Ave.
Sidney, BCV8L 1X9
250-656-0911
HOLMESREALTY.COM
The 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 pre-sented 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.
In a competition, a buyer should make their best offer, their � rst 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 con-ditions. This often means excluding conditions designed to mitigate risk, such as a building inspec-tion or � nancing.
A seller has no obligation to con-sider, 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.”
SUMMER 2016
(continued inside)
MULTIPLE OFFERSWHAT YOU NEED TO KNOW!
CHANGES TO ASSIGNMENTS
Earlier 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.
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 pro� t resulting from an assignment of the contract by the buyer or any subsequent assignee. These terms can be modi� ed; however, in that event, a full page disclosure of this change must be presented to the Seller with the offer.
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.
MARKET UPDATESDid you know that every
month Holmes Realty publishes a Monthly Market Update fi lled with valuable information about our local
real estate market?If you’re interested in
receiving a copy of this valuable report just send me
an email:
MULTIPLE OFFERS (continued)
A full-price offer does not always guarantee a buyer will win a competition. The true value of a home is what someone is willing to pay. Many buyers will pay above the asking price to get the house that they want.
Sometimes the offers are so similar that a seller may reject them all and asks buyers to resubmit with their best consideration.
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.
Hot markets can be a frustrating, confusing and stressful time for Buyers. In a slower market, it is common to carefully research the condition of a home and bargain over the price. Buyers should have their � nancing in place prior to writing an offer. Of-ten, a list agent will delay offers on a property for a few days in order to allow mul-tiple potential buyers an opportunity to view. During this time, a serious buyer can often arrange for a building inspection. Unfortunately, with multiple offers the slow and steady approach to purchasing does not win the race.
We cannot prevent multiple offers, they are simply a natural part of a very hot mar-ket. Many buyers just choose not to take part in them. Regardless of your opinion, now you have an understanding of what to expect should you � nd yourself on either side of the table.
Are you interested in up-to-date in-formation about Real Estate, Life-
style, our housing market and more?
Just visit:http://fb.me/HolmesRealtyCanada [email protected]
MARKET UPDATESDid you know that every
month Holmes Realty publishes a Monthly Market Update fi lled with valuable information about our local
real estate market?If you’re interested in
receiving a copy of this valuable report just send me
an email:
MULTIPLE OFFERS (continued)
A full-price offer does not always guarantee a buyer will win a competition. The true value of a home is what someone is willing to pay. Many buyers will pay above the asking price to get the house that they want.
Sometimes the offers are so similar that a seller may reject them all and asks buyers to resubmit with their best consideration.
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.
Hot markets can be a frustrating, confusing and stressful time for Buyers. In a slower market, it is common to carefully research the condition of a home and bargain over the price. Buyers should have their � nancing in place prior to writing an offer. Of-ten, a list agent will delay offers on a property for a few days in order to allow mul-tiple potential buyers an opportunity to view. During this time, a serious buyer can often arrange for a building inspection. Unfortunately, with multiple offers the slow and steady approach to purchasing does not win the race.
We cannot prevent multiple offers, they are simply a natural part of a very hot mar-ket. Many buyers just choose not to take part in them. Regardless of your opinion, now you have an understanding of what to expect should you � nd yourself on either side of the table.
FUN FACTSABOUT 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).
• 53% of Canadians have a university educa-tion making us tied with the Russian Feder-ation for the most educated country in the world!
HAPPY CANADA DAY!JOIN US AT OUR OFFICE ON JULY 1ST FOR
THE SIDNEY CANADA DAY PARADE!
ENJOY A BAG OF POPCORN ON US!
Holmes Realty Ltd. 2481 Beacon Ave. Sidney, BC, V8L 1X9
Not intended to solicit business from individuals currently working with a Realtor®
“Every client deserves professional real estate advice and first-class service.”[email protected]
250.656.0911 • 1.877.656.0911
If 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.
