Sayo's Blog

Do I buy first or sell first? I'm torn!

Wed, 28 Jul 2010 18:34:24 GMT

This is a question I get asked all the time. People are concerned that they will not be able to find a home to purchase if they sell their current home first. they sometimes also don't want to move unless they get the specific property they've had their eye on.

I've always given the same answer to this question which has been "SELL FIRST" but lately I've been relaxing a bit on this answer due to the opportunitites emerging as a result of our slowing market. Let me explain the pro and cons so you can make the decision for yourself.

Selling first, then buying:

The good news is that you know exactly how much money you have to spend on your next purchase and you don't have to worry about your current property anymore as someone else has bought it! You also have a lot of flexibility in your next purchase. As you won't need to include a "subject to sale" clause in your offer, you will be in a stronger negotiating position. Sellers are looking for Buyers who can buy right now, not "hopefully soon once my house sells" ( if it sells at all).

In our current market, if you list your property for sale on the Westside, there is only a 42% chance that it will even sell. Most people don't realize this. Your biggest risk is that you may not find a property you would like to buy in the 30-60 days you are given before you must move out of your old place. The worse case scenario is that you end up having to rent for a while. But renting gives you the most flexibility (other than living with your parents) in finding a place to buy. And with the market declining, that really wouldn't be such a bad idea!

Buying first, then selling:

The upside is that you know exactly where you are going to be moving to which takes care of the reason why many people want to take this approach: fear of the unknown. BUT this is very risky proposition and I have seen a number of people get burned - especially in a softening market. People are worried about the time restraints in selling first and then having to find a place to buy, but there are also major time restraints when you buy first. Instead of having to find a new place in time, you now need to sell within 30-60 days and this is much more difficult to do when only 42% of listing are selling and you are trying to get top dollar!

If you can't sell it in time or the dates don't line up with your new purchase, you are then stuck owning two properties at the same time which in Vancouver, not many of us can afford to do. It's scary! If you are financially secure enough to do this, then by all means this is ideal. I personally would rather have to find a place to rent temporarily with a bunch of cash in the bank than owe money on two mortgages which I cannot afford to pay.

An emerging solution:

Subject to Sale. This has not really been possible over the last decade as the market has been so strong that it hasn't been in the seller's best interest to take a Subject to Sale offer. When you insert a Subject to Sale clause it means that you can tie up the property you want but are asking the Seller to hold it for you until you manage to sell your current property. Now that the market is quieter and sellers are hoping for offers, I'm seeing that some of them are agreeing to accept Subject to Sale clauses. You still often pay more for this priviledge but at least it is now possible. The downside is that if they receive another offer, you get bumped with 24-72 hours notice, and you're back to square one.

I still believe one should sell first, especially since prices are still very near all-time highs, but if you REALLY need to know where you're going next before you make any decisions about selling, then here is your window of opportunity. Your realtor will guide you through the process and there is a chance that it could all work out perfectly!

Sayo's advice for the moment? Sell first, rent for a while, then pick up a good deal down the road. It's not for everyone, but think about it!

How Sellers can beat the rest of the market and come out on top!

Mon, 07 Jun 2010 13:45:26 GMT

We are definitely seeing a time of transition in the Vancouver real estate market right now. Although we hear people all around us saying things like "it seems like the market has really slowed down" and "there's tons of For Sale signs everywhere!" the reality is that these market truths have not quite penetrated through to the Sellers out there.

Of course this is understandable as often the reason someone has chosen to sell is because their neighbour got a really good price and because the newspapers were reporting record-breaking sales figures. The funny thing is that now, despite sobering newspaper articles and reports by the Greater Vancouver Real Estate Board showing a 3% adjustment downwards in prices, Sellers as a whole have been holding on to March 2010 pricing. Some savvy Sellers have reduced their prices and been rewarded with SOLD stickers on their signs but many others have not yet taken charge with what may be their largest investment. The longer they wait, the more and more new listings come online (creating greater competition), and often, the new listings are priced a bit more sharply.

If your house has been on the market for a couple of months, it might be the time to make a push and get it sold before prices fall even further. We have only just come off all-time high prices so chances are you will still do well - just maybe not as well as your neighbour who sold in April. If you think about the stock market, it's almost impossible to predict the exact bottom and the exact peak and real estate is really no different - it just moves a bit more slowly. This really is a blessing as it allows us to see which way the market is trending and act on it.

So how can you get YOUR home sold and move on to more exciting things in your life?

1) Look at the information on your MLS listing and make sure the data is correct. If it's not, it could mean that potential Buyers may not even know about your property as they are sent listings from specific searches (ie. it says 2 BR but you actually have 4 BR)

2) Make sure your property is well presented. This means that the home is tidy, clean and shows well. This should translate into the photos on the property. Ensure there ARE photos for the property (sometimes only 1 or 2 are posted) and that sowing requests are accommodated as much as possible. If Buyers want to see your property but they can't get int to see it, they will move on.

3) Look closely at the recent sales of similar properties, look closely at what your current competition is, and price BELOW all of them. Your realtor will help you with this. Another indicator that you are priced too high (other than the fact that it isn't selling) is if you are not getting any requests for private showings. Bring the price down significantly (not by $3000 at a time) as you want it to attract NEW attention.

I look forward to seeing your SOLD sticker out there! Call us if you have any questions.

Blogging is difficult!

Mon, 17 May 2010 13:57:01 GMT

It seems like the whole world has a blog and that everyone has something interesting to say - except me of course. If someone calls me and asks me questions about the Vancouver real estate market, or real estate investing, or particular areas of town, I can go on and on for ages as I really do love talking about this stuff and I'm very passionate about it. But when it comes to writing interesting things to educate others I easily get stumped. Maybe it's a fear of being boring, but I also think it's that I don't want to alarm people with my dramatic ideas of where the market is headed.

In any given market we work with many Buyers and Sellers who ask for advice and the advice is often different depending on what their personal situation is. For example, if you own "investment" property in Vancouver (maybe I'll write a blog post about my ideas on "investments" next time) then I think you should sell it ASAP - or yesterday preferably, but if you have a locked-in pre-approval at 3.79%, just sold your house for big bucks and have 2 dogs that make it difficult to rent, then yes, maybe you should buy right now. There are a lot of listings currently on the market that are not selling, so you could go out and find a great deal! Just know that prices will be moving downwards for the next little while.

In writing this, I've realized that maybe it isn't that difficult to just write about what I talk about every day. Everyone's situation is different and even with our help and guidance, Buyers and Sellers are making their own decisions every day. We're just advisors really. So my dramatic predictions and eager promptings will all be taken in stride at the end of the day and people will hear what they want to hear. And we'll be here to support them in whatever decisions they chose to make.

A very unique property - Main Street's best kept secret!

Fri, 12 Jun 2009 18:35:56 GMT

We just listed a very cool apartment that I thinks deserves special mention due to it's hidden nature. It's a spacious 3 BR 960 sq.ft. condo at the Mondella. It misses people's radar as it's located 4 blocks east of Main St. just off Fraser but it's AWESOME! High ceilings, tons of light, super quiet, expansive treed outlook, a large deck for entertaining, a $10K luxury appliance package AND it's a great brand new building with a 2-5-10 warranty on it. This is your opportunity to buy into a neighbourhood before it's made it big! Le Faux Bourgeois (really good restaurant) and some art galleries have moved in just a block away so all the signs are there. $498K for a 3 BR in a new building 4 blocks from Main is a rare thing. Come have a look at the open house this Sunday from 1-3 pm. 216-688 East 17th Ave.

You gotta be priced right!

Mon, 01 Dec 2008 20:39:55 GMT

Price is everything! Now more than ever, if you are serious about getting your home sold in this market, you need to be better than "well" priced - you need to be the best price in town. Here are the most recent statistics for the month of November.

If you have a Westside house to sell, there is currently a 38 month supply of inventory (since 2002 it barely ever went above 5 months) and you only have a 12% chance of selling. There were 949 listings and only 25 sales last month.

Prospects were a little better on the Eastside where there is a 21 month supply (44 homes sold out of the 935 that were listed) and you have a 21% chance of selling.

The condo market is still faring beter than the detached market with 18 months supply in Vancouver West and 19 months supply in Vancouver East.

Don't be discouraged though! If you want to sell, you CAN - you just need sound and realistic advice. And if you want to buy, well life is a candy store at the moment.

Pumpkins, Pumpkins, Pumkins, Boo!

Wed, 29 Oct 2008 22:10:22 GMT

It's that time of year - the smell of Autumn leaves, tiny little goblins abound - and more pumpkin than you know what to do with!

Well, roasting pumpkin seeds and tossing them with a little salt is always a nice snack, and roasting the pumpkin itself to use in baking, soups, casseroles and baby food is a great way to use up Jack-o-Lanterns.

Or - there is always the old 'carve, illuminate and toss' option which so many people partake in! Please keep in mind that while pumpkins do biodegrade - pumpkins in plastic bags in landfills biodegrade very slowly! The City of Vancouver allows you to put your uncooked and broken up pumpkin in your Yard Trimmings Bin. The Bin must be the hard plastic one that the city comes around every 2 weeks to empty - not the brown paper bags that can be filled with leaves.

Have a wonderful and safe Hallowe'en! Watch out for all those little ghosts and goblins haunting your homes!

Is it really a Buyer's market?

Sun, 13 Jul 2008 23:49:51 GMT

The papers have been blasting us with headlines about how we are now in a Buyer's market. I see it as more of a balanced market. Why? Although it's true that listings on the Westside are up 70% from last year at this time and sales are down 46%, prices have yet to really come down. If you are a Seller, there are still serious Buyers out there and you are still getting a good price for your property. Buyers ARE better off than they have been these past 5 years as they are now able to negotiate on price and see the property more than once before purchasing it, but we are still a long way from a true Buyer's market which will come when prices hit rock bottom and "real estate" is no longer at the tip of everyone's tongues. It's not a bad time to sell, it's not a bad time to buy - it totally depends on your situation.

Frogbox - finally, no more cardboard boxes!!!

Mon, 23 Jun 2008 17:11:41 GMT

Doug Burgoyne and Trevor McCaw have brought forth an amazing idea and I just wanted everyone to know about it!!

Who hates packing? Buying carboard boxes, raiding the local liquor store looking for boxes, borrowing from friends...and then the worse part is after you've unpacked and you have 12,584 cardboard boxes to fit under the bed, or to be cut down with your dull exacto knife! Fear not my friends, Doug and Trevor to the rescue! They have ingeniously come up with Frogboxes which are reusable plastic boxes delivered to your door when you need them and picked up from your new door when you’re done. And get this – it’s cheaper than buying cardboard boxes! Fab!

Please check out their website www.frogbox.com for more details, prices and encouraging facts!

$100 Climate Change Dividend!!

Mon, 09 Jun 2008 22:06:40 GMT

Has everyone heard of the $100 they will receive in the mail from the BC government? Well it's actually for this:

"To help British Columbians make lifestyle changes to reduce their use of fossil fuels, each resident will receive a Climate Action Dividend payment of $100 in June 2008, paid out of the 2007/08 surplus. The total value of these benefits is $440 million."

There are a million things you could do with this money; donate it to an environmental organization, half fill the tank of your Hummer, buy organic vegies grown nearby, order pizza, invest in ethical funds, or stuff it into your mattress! Or if you can't think of anything to do with it...

The Light House Sustainable Building Centre is offering a 'Green your Home Kit' for $100 to help you get on the road to a green and clean home!

Check out http://www.sustainablebuildingcentre.com/primary-links/100-green-your-home-kit for more information!

How to Recycle Milk Containers

Sat, 07 Jun 2008 00:21:14 GMT

Ooooh, I was so frustrated when Capers stopped accepting milk and soy containers! But guess what? You can bring all empy milk, cream, and milk substitute containers to a participating Return-it Depot in your neighbourhood. This voluntary milk container recycling program is a project of the BC Dairy Council and is fully funded by them. Visit encorp.ca/milk to find out locations, and for 'how to return 'em' tips!