WINTER IS SUPPOSED TO BE THE SLOW SEASON
Slowest season of the year is already off to the HOTTEST start in recent memory.
In 2016, about 50% of the homes sold over asking price and this year that number is already up to 72% and that happened in the winter market!
As soon as a house goes up for sale there is a HUGE crowd waiting to see it and put an offer on it.
I feel bad for first time buyers who have been saving to just enter the market. Imagine finding out at the last minute you will be competing with 20 other offers and it might sell WAY OVER asking price.
WHAT DOES IT MEAN FOR THE SELLERS
It’s a great time to be a seller. Chances are:
- You will get a bidding war on your house
- Your house has appreciated over $100,000 just in the last couple of years
- You really don’t need to stage it
- You don’t need to make it look like a model home (do the big repairs and basic clean up, forget the rest). It WILL sell.
- Most likely you will get a firm offer (no more wondering if buyers will get financing or if the house will pass home inspection).
WILL THE MARKET EVENTUALLY SLOW DOWN?
That is very difficult to predict. One would hope so. However, I remember about 1 year ago some people didn’t want to buy a house because they thought the market was too hot and they didn’t want to overpay. Those homes have now appreciated about $80,000+ since last year.
Hopefully it will level off soon because first time home buyers are having a really difficult time coming up with an extra $50,000 to $100,000 at the last second in a bidding war.
WHAT DOES IT MEAN FOR THE BUYERS
There are ways to make your offer look strong:
- Talk to your bank before doing an offer. Have them give you your maximum number. Ask them if there will be any problems if you have to go in firm.
- A large deposit helps. Few years ago you could get away with a $5,000 deposit on a house. Unfortunately, those days are gone. Get a bank draft made and bring it with you on offer date.
- Be prepared to go in without any conditions. So if you think an older home might require a home inspection ask the Listing Agent if the seller would allow an inspection before doing the offer. Most sellers will.
- Money talks! Most of the time the highest price will win the house. However, sometimes the closing date is important to the sellers. Be willing to accommodate their closing date.
- If couple of offers are really close the sellers will want to give to a nice family who will take care of their house. Prep your agent to tell the sellers your story in a favourable way.
MOST IMPORTANT STAT SO FAR
About 50% of homes sold over asking price in 2016
Over 70% of homes sold over asking price so far this year
THINKING OF SELLING?
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