A Lesson on Compromise: What to do when everything around you is selling subject free
How to Find What You Need
Written By: Mariko Baerg, REALTOR of Bridgewell Real Estate Group
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We’re in to the spring market, and we’re also in to some super low inventory territory. The days of homes selling for under asking, and a shortage of buyers is long gone (well really, it only lasted for a couple of months), and we’re right back in to where we were spring of last year and the market is on fire. Everything seems to be selling for multiple offers (and by multiple I mean 10, not 2) and of course the listing agents are pushing the top offers to go subject free. If you don’t do it, it seems someone else will… so what do you do when everything around you is selling subject free? Read on…
Compromise
It isn’t fun… but it’s reality in this kind of market. If you want the house that everybody else wants, then you’re probably going to need to compromise. How? Well there’s a couple of ways.
Price
If you want the house that everyone else wants then you’re going to have to increase the price big time. Don’t get caught up in the listing price, at the end of the day you should be looking at the solds in the area that are comparable to that home. In this kind of market, whatever the last one sold for the next one will probably sell for more. So take the most comparable, recent sale and add a bit more, at the discretion of your realtor. This is particularly relevant if you have subjects.
Subjects
Subject free offers can be worth an extra $10,000 in some cases. We just won an offer the other day to someone that was $20,000 above us all because we had a subject free offer with the deposit in hand. It can be worth a lot of money, because it is a lot less stressful for the seller – it’s a done deal after all! Like I said before, if you don’t do it, lately it seems like someone else will. In order to do this you’re going to have to make sure that you’re safe, and not just aimlessly putting out a subject free offer without doing due diligence. At a minimum, make sure the mortgage broker has the feature sheet and can run the numbers in advance. You might want to think of doing a pre-inspection, and of course checking the property disclosure statement and title search before the offer. Come prepared.
Location
If you’re not willing or able to do the above (we understand!) then you might need to compromise on location. Living in the burbs isn’t always the worst. If you wanted Burnaby or New West, the skytrain has just extended out in to Port Moody and Coquitlam, so there are new options in terms of transportation. You can go over the bridge to Surrey or Langley, which will have the new air rail in coming years. Compromising on location to fit your budget might be the best way to get the house you want.
Size
Think about what you’re going to do with that extra bedroom or den – do you really need it? Separate your needs and wants and find out what is most important. Do you need the super huge lot? Do you need the massive interior space? If you’re having troubles competing with whatever size you’re at, then re-assess your needs because a size down will most likely be well within your budget. If you can compromise on size, you might end up saving a buck or two (or a thousand…).
Style
Open concept is all of the rage right now, so the more modern the home is the more competition you’re going to have. If you can compromise on the quartz countertops, stainless steel appliances, the laminate flooring, and the open concept everything then you’ll have less competition and be more likely to receive an accepted offer. These things you can do over time, and everyone else will succumb to the “shiny things” upfront that make the home “turn key ready.” This is one of the places where people hate to compromise, but if you don’t hop on the bandwagon and go with the style everyone loves, then you’ll most likely be off in a better place with your wallet.
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The good news is that as a Vancouver Buyer, you don’t have to give in on everything. We’ve found tons of Buyers homes that they absolutely love, and haven’t had to compromise on. We’ve received accepted offers for under the asking price, introduced people to new neighbourhoods, and watched mortgage brokers magically make budgets increase. It comes back to needs and wants, and while you don’t need to compromise on your biggest priorities, an open mind and ability to compromise on the wants will help to improve your home buying experience overall. So, what’s most important to you?
If you’re interested in reading more about subject free offers, check out our blog post on how to write a subject free offer safely by clicking here – or call 604-765-0376 for more details. Prefer text? 604-319-0200. or email [email protected]
