Expert Advice for Vancouver Real Estate Sellers and Investors
There are two types of Vancouver real estate sellers – those who are investors and those who are owner occupiers. Making the decision about the correct time to sell is much easier for investors, because they are generally doing one side of the transaction. Either they accept the current market conditions – perhaps they are cashing out of the market and retiring – or they wait until it is a sellers market and then list their property. In the meantime their investment is generating income. It is adviseable to sell the property when it is not on a lease but on a month to month rental, because a large portion of the buyers are not investors and wish to move into the suite within 60 days, so you will decrease your market substantially if its leased. It is a good idea to reduce the rent when the property is listed for sale and ask the tenant to be co-operative with your Realtor’s request for showings and to keep it tidy. Uncooperative tenants and untidy suites will fetch a lower price. Currently Vancouver’s rental vacancy rate is 0%.
Vancouver property sellers are advised to prep your home, tidy, clean, organize closets and cupboards and do minor updates if necessary and ensure there are no pet odours in the home, so that the home shows its best. In a balanced market make sure the price is right. Staying on the market too long and having price reductions will not achieve the best price for you. Also, get advice from your experienced Vancouver Realtor when is the best time of the year to list your property.
Expert Advice for Vancouver Real Estate Buyers & Sellers
When a Vancouver real estate buyer or seller makes the decision to enter the market, albeit to do one or two transactions simultaneously, the conditions will often benefit only the buyer or only the seller. It is a buyers market if there is more supply of properties than there is demand. It is a sellers market – such as what we are experiencing currently in 2016 in Greater Vancouver – when there is more demand than there are listings for sale and this results in multiple buyers making offers on the same property, which results in the property selling above the List Price. This is the most stressful market conditions and extremely time consuming for buyers. If you plan to be in the market for the long term, then hunker down, keep writing offers until you win the competition and become a happy homeowner. Don’t purchase a property just to get into the market because you will not be happy if it doesn’t suit your needs.
Sometimes you are fortunate to enter the real estate market when it is well balanced between buyers and sellers. In this scenario you can shop the market to satisfy yourself that there is a selection of listings which meet your top criteria. Then you market your current home, negotiate with the buyer for a longer closing – say 90 days – then you purchase a property that suits your needs and negotiate a closing date that is one day after the closing date for the property you are selling. This scenario is by far the less stressful for Vancouver home owners.
Secondly, you could sell your current home and move in with family, or rent short term until you find the right property. The downside of this scenario is that in a rising market if it were to take six months to find the property, financially you might be unable to get back into the market.
Thirdly, your other option would be to ask your Bank to give you bridge financing, so first you would find a property that meets your needs and purchase it without a subject to the sale of your current home. Try for as long a close as possible. Should your current property not sell by the Closing Date, your Bank would lend you the funds to buy the next property and you would repay the loan when your current property sells. One risk in this scenario is what if the market were to change and trend downwards after your make your purchase , then the property you are selling would then be worth less. It is important to crunch the numbers for all the different kind of scenarios.
If the market conditions favour buyers you can try to make an offer subject to the sale of your current property. Should the seller accept this condition they would add a shotgun clause that says if the seller gets another offer which has no subject to the sale of a property, then you would be given 48 hours to remove all of your subject to clauses and thereby purchase the property or if you do not remove your subject to clauses your contract collapses and the next buyer wins.
Expert Advice for Vancouver First Time Real Estate Buyers or Investors
This is by far the easiest of Vancouver real estate transactions because you do not have a property to sell, you are solely a buyer. So once you have a written pre-approved mortgage, have selected an experienced Realtor to represent you, then it is merely a matter of finding the right property.
Investors are sometimes lucky and find a property that already has a tenant in place. If this is the case you would want to ensure that the tenant is paying current market rent. If the condo isn’t rented its a good idea for your Property Manager to get access to the condo prior to the beginning of the month, so they can take pictures and upload the property to their website.
For buyers who are renting you will need to have a longer closing so that you can give your landlord the required notice to vacate the premises.
Current Vancouver Real Estate Market Conditions
Currently the sales to active ratio for Vancouver real estate is 51%, having hit a hight of 57% in April and a low of 4% in November 2008. Vancouver property listings are now 2,362, having reached a high of 6,321 in October 2008 and a low of of 1,689 in December 2015. Vancouver real estate sales hit a record in April 2016 at 1,302 and a low in low in January 2009 at 251, June2016 sales were 1,219.
Have a real estate question? Call Maggie 604-328-0077 and put my decades of hyper-local experience to work for you!