Expert tips to lock down properties in Vancouver's red-hot housing market

With housing prices up and the supply low in Vancouver, prospective home buyers need all the help they can get to lock down properties in the red-hot market.

See Full Article

The Real Estate Board of Greater Vancouver said earlier this week that there were 4,172 homes sold in Metro Vancouver last month, a 36 per cent jump from a year earlier. But, at the same time, there are only currently about 7,300 properties listen for sale, which is down nearly 39 per cent. The board added that the average price of a detached home has also increased by 27 per cent, to over $1.3 million, from last year.

With these challenges in mind, here are some tips on how to win a bid for a prized property:

Stand out from your competition

Experts say buyers should go into the process with no conditions attached. That means getting financing in place ahead of time, and having a bank draft deposit on hand.

Realtors also say it can help to bring a deposit that is bigger than other competitors.

"I think, in some cases, people are coming with a higher deposit because, again, if you want to stand out compared to other offers, obviously, people will notice that," realtor Gary Serra told CTV Vancouver.

Serra even suggests buyers should write personal letters to sellers explaining the reasons behind their bids.

"We want to appeal to the seller, and make sure our offer stands out over another," he said.

Early home inspection

Experts also say buyers should get a home inspection as soon as possible.

Home inspector Shawn Anderson said half of his clients are taking him along to open houses.

"It is really crazy," said Anderson. "I was in one just recently where it was so packed, where it was like they were giving away free wine."

Kyle Gould, who recently moved to Vancouver from Ontario, says the process of looking for a home in a hot housing market is "frustrating."

"I got sticker shock, and it is a big reality that kind of smacked me in the face that it is a wild game out here," Gould said.

Assignment sales

Part of the issue may be that some buyers are now flipping homes in assignment sales. That's when buyers sell a contract before the closing date for a quick profit.

One Vancouver developer bought a property for $2.5 million last year and sold it for nearly a $1-million profit. But days after its sale, an advertisement on Craigslist popped up offering half of the property for $2.3 million.

"That's how the market is. Everybody's just trying to make the flip," the Craigslist seller told CTV Vancouver.

The Canada Revenue Agency is currently investigating the practice to ensure people are paying their fair share of taxes.

Vancouver-Point Grey MLA David Eby is calling for a system to track assignment sales.

Eby said he wants to be sure people are declaring the profits they're making through assignment sales.

"We have no idea the scope of the problem, about how much it may be inflating the real estate market," Eby said.

With files from CTV Vancouver



Advertisements

Latest Economic News

  • No suitors emerge for Trans Mountain pipeline project stake as deadline looms

    Economic CTV News
    CALGARY - With just over a week remaining until the May 31 deadline set for abandoning its Trans Mountain pipeline expansion, no suitors have publicly emerged to step into builder Kinder Morgan Canada Ltd.'s shoes. Source
  • Looking for a better work experience, millennials may be saving the franchising model

    Economic CBC News
    Millennials are showing increasing interest in a traditional sector of the economy, as young Canadians buy into franchise brands and create new franchise concepts. Though jobs numbers in Canada are generally improving, many millennials continue to face the prospect of precarious employment. Source
  • Tens of thousands of Las Vegas casino workers vote to strike

    Economic CTV News
    Las Vegas casinos could watch tens of thousands of employees walk off the job for the first time in more than three decades after union members voted to authorize a strike at any time starting June 1, a move that could cripple the city's world-famous resorts. Source
  • Asian shares drop amid worries over U.S.-China trade

    Economic CTV News
    TOKYO - Asian indexes were mostly lower on Wednesday as investors shifted their attention to uncertainties over a planned U.S.-North Korea summit after the perk from eased U.S.-China trade tensions faded. KEEPING SCORE: Japan's benchmark Nikkei 225 dipped 1.3 per cent to 22,661.88, while Australia's S&P/ASX 200 inched down nearly 0.2 per cent at 6,031.40 in early trading. Source
  • Toronto Millennials dream of backyards but are stuck in condos: report

    Economic CTV News
    Toronto Millennials are the most educated group in Canada, but high housing costs are keeping some of the country’s most qualified workers in their parents’ basements or pushing them out of the province altogether, a new report suggests. Source
  • Facebook's Mark Zuckerberg apologizes to EU lawmakers over data leak

    Economic CBC News
    Facebook boss Mark Zuckerberg apologized to European Union lawmakers on Tuesday for a massive data leak, in his latest attempt to draw a line under a scandal that has rocked the world's biggest social media network. Source
  • What your kids should know about money in kindergarten, grade school and high school

    Economic CTV News
    Too many Canadians are reaching adulthood without the skills to successfully manage their financial futures, according to personal finance coach David Lester. The best way he sees to build that knowledge is for parents to start schooling their kids about money as early as possible. Source
  • The New York Stock Exchange just named its first female president in its 226-year history

    Economic CBC News
    The New York Stock Exchange for the first time in its 226-year history will be led by a woman. Stacey Cunningham, who started her career as a floor clerk on the NYSE trading floor, will become the 67th president of the Big Board. Source
  • New York Stock Exchange just named the 1st female president in its 226-year history

    Economic CBC News
    The New York Stock Exchange for the first time in its 226-year history will be led by a woman. Stacey Cunningham, who started her career as a floor clerk on the NYSE trading floor, will become the 67th president of the Big Board. Source
  • Ex-Valeant, Philidor executives convicted of kickback scheme

    Economic CBC News
    A former Valeant Pharmaceuticals International Inc executive and the former chief of mail order pharmacy Philidor Rx Services were found guilty on Tuesday of defrauding Valeant through a multimillion-dollar kickback scheme. The verdict, handed up by a jury in Manhattan federal court, comes on the heels of Valeant's announcement that it will change its name to Bausch Health Companies Inc as it seeks to distance itself from a series of scandals under its previous management. Source