Vancouver is a very active market right now and we're seeing Multiple Offer scenarios happening more often. But, what does this mean to potential buyers? There are certainly some risks involved when designing your competitive offer. You'll need to weigh up how much you want this particular property with the amount of risk you're willing to take. It may be better to walk away and find a less competitive situation, particularly if this is your first home.
When bidding against a number of other offers, there is the danger of over paying. While often 'market value' is generally what a buyer is willing and able to pay for a property, there is the chance that a multiple offer scenario can inflate this value. The consequence here is when financing is sought and the bank values the same property for less than what was agreed upon in the offer, then a buyer relying on bank financing may not be approved. This is one of the many issues to discuss with your Realtor® should you find yourself in this situation.
Please drop me a line with any questions you may have or topics you'd like me to address, and look out for more video blogs!