3 Things You Should Know Before Touring the Real Estate Market in 2019

Knowing when to enter the real estate market and when to wait can be challenging. Every annual market cycle comes with its inherent opportunities and risks and 2019 is certainly no exception. Luckily, we’ve made enough proverbial rotations around the real estate cycle for our team to confidently identify three key factors to consider before diving into home ownership.

1.Know What You Can Afford

Real estate professionals always ask the question, “Are you pre-approved?” which may naturally lead you as the client to question, “What’s the big deal with getting pre-approved anyway? I just want a real estate agent to take me out to look at properties!” However, there is a method to our madness. Understanding your budget helps to ensure you’re looking for properties that have prime potential to be a good fit for you financially. Equally beneficially, a formal pre-approval letter provides you with a competitive edge when you’re ready to secure your desired home.

Stick with us; in a scenario where a seller receives two similar offers, one accompanied by a letter that confirms financing pre-approval, and another offer without supporting documents, the former offer is frequently considered first. Now, you might be saying to yourself, “Multiple offers? That was so 2 years ago!” And while you would be somewhat correct, we are still seeing multiple offers on select properties even in today’s market.

The takeaway: Pre-approval is still important in a buyer’s market.

With changing interest rates and market dynamics, it’s important that you stay on top of your financing with your chosen mortgage broker or lender. Keeping a rate hold in place and your broker in the loop ensures they’re able to secure the best possible rate for you at the time of purchase and the transaction goes forward as smoothly as possible.

2. Find a Realtor Who Is a Local Expert and Can Give You Expert Advice (You’ve Come to the Right Place)

It may seem like a no-brainer, but it’s majorly in your advantage to have a trusted real estate expert in your corner. You should ask yourself whether your real estate advisor is taking the quality time to really get to understand exactly what you’re looking for. It’s vitally important for us at the beginning of any client relationship to get to know our clients so we can find the perfect fit. For our team, the initial coffee meeting is just the beginning of the client relationship. And we love coffee.

As a home buyer, you want to make sure your agent understands the local market and the intricacies that may come up such as:

• The neighbourhoods/areas of interest and any quirks associated with the areas (i.e. flood plains, peat bogs, etc)
• Any applicable costs associated with the purchase of a property
• Potential complex scenarios such as oil tanks, grow operations or soil liquefaction
• Differences between character homes and heritage homes and the potential bonus allowances that come with these distinctions
• Feasibility within different zones

The takeaway: A well-informed client is a successful client. Our initial meeting is an opportunity for us to take you step-by-step through buying successfully in the current market. From that point onwards, regular communication is key as the market is constantly changing and it’s our job to keep you abreast of these changes.

3. Understand the Current Market Dynamics

You wouldn’t pack your winter parka on a desert vacation. Similarly, you need to know the temperature of the housing market you’re entering to make the best decision. The housing market is so fluid, gaging its realities ahead of time is valuable in determining if this is a market you want to participate in given your desired outcome whether that be renovating and flipping, demolishing and building, or simply one in which to invest or live. This will go a long way in helping you understand the process you can expect and potential timelines and urgencies if any.

Is it a seller’s market?

• Are houses selling quickly and possibly in multiple offers? As a buyer, there are strategies to be successful in this.

Is it a buyer’s market?

• Consider looking at properties that are above your budget, because there may be a possibility of negotiating the purchase at a price you’re comfortable with, regardless of the list price.
• An increase in inventory creates more options for buyers to consider. An agent that’s active in the area will be out seeing new listings and can help make sure that when you’re available, you’re seeing homes of interest and not wasting your time on properties that won’t be a good fit.

The takeaway: Make sure you’re working with an expert that knows how to navigate the different selling strategies you may be up against and has the right attitude and work habits to go along with it.

It’s easy to get caught up in the excitement of buying a new home or the bold headlines in the media. Before you start spending your weekends touring open houses or get your heart set on that perfect home, it’s imperative that you understand your budget and have an understanding of the present market dynamics. That way, you can get excited with confidence when you discover the perfect fit.

Get in touch with us today if you’re considering buying in Vancouver and want to work with a team of agents that are experts on the market, the area, and have a track record of strategic negotiating!

– The Resident Experts