Case Study: Installing Confidence in a Buyer in a Buyer’s Market by Leanne Martin
Downtown Vancouver Real Estate has a surge of listings coming onto the market and a perceived slow down in the number of sales. Many people are coining this as a “Buyer’s Market.” But what does this mean? A Buyer’s Market is when there is some additional bargaining power in the hands of a Buyer.
Currently, someone shopping for a 2-bedroom condo in Downtown Vancouver can pick between 408 properties. These properties vary in total square footage, interior finishes, view, and price range. Variance aside, someone looking for a 2-bedroom condo has a lot of options so can try and get the most bang for his or her buck.
I am currently working with some Buyers who sold their 1-bedroom 600 square foot home in Yaletown Park. With equity in hand, the goal is to find a larger place. These Buyers are taking advantage of the number of suitable homes available by writing offers that are lower than previous similar sales made at the start of 2010.
An offer that is substantially lower than the asking price is often coined a “Low Ball”offer. However, in a Buyer’s market, a low offer may be the only offer. The Buyer’s I am working with wrote a $480,000 offer on a $528,000 property. This offer did not meet that seller’s needs so we moved on. Today we wrote $530,000 on a $548,000 property. If this is not accepted we have two other suitable properties we can make offers on. Essentially, we are on the hunt for a good deal and are sure to find it.
The data our transaction creates will be looked back on to suggest that the market has dropped. Right now sellers should price a property 5-10% lower than a comparable sale from early 2010 and Buyers should prepare to look a little longer. Dealing with rejection and being prudent with both pricing and offers is how to champion this “Buyer’s Market” in Downtown Vancouver.