Regulators advise home buyers, sellers to understand potential risks of a busy market
Metro Vancouver’s real estate market has been picking up steam since last fall, culminating in record sales and new listing activity last month. In an active market like this, seeking professional advice from a REALTOR® is more important than ever.
With this in mind, the Real Estate Council of BC (Council) and the Office of the Superintendent of Real Estate (OSRE) released a joint statement advising home buyers and sellers to seek professional advice, do their research, and understand the risks involved before buying or selling a home.
Seek professional advice about potential home-buying risks
Today’s market is marked by subject-free offers, intense competition for properties via multiple offers, and properties selling faster than usual.
Under these conditions, home buyers may feel the need to make quicker and perhaps riskier decisions.
Council and OSRE are advising home buyers and sellers to:
- Seek professional advice and understand the risks associated with subject-free offers.
- Be realistic about how much you can afford.
- Be comfortable with the listing price and marketing strategy you agree to with your Realtor.
- Be prepared for multiple offer scenarios.
Talk to your Realtor about what to expect in today’s market
If you’re about to enter the market as a buyer or a seller, you should:
- Talk to your Realtor about the risks you could potentially encounter by making a subject-free offer. These risks will differ slightly depending on your situation, but they’re usually present in some form or another.
- Make sure you have a clear understanding of your finances and how much you’ve been approved to borrow. Your Realtor can help you work within your means.
- Plan ahead with your Realtor for a multiple offer situation and work with them to have a strategy in place for how to navigate through one.
- Ask your Realtor for information on the market so you have a clear picture of what pricing may look like in the area you’d like to buy in. Make sure you discuss what kind of housing you’re looking for and if its realistic to expect to buy that type of housing in your preferred neighborhood.
- Talk to your Realtor about the current COVID-19 safety protocols in place. Understand what limitations are in place. If you’re a home seller, talk to your Realtor about restrictions on marketing tactics like open houses and in-person showings.