Is now the time to write lowball offers on properties? It depends. Some properties are really well priced and it depends on how you define lowball. It is a changing market and now more than ever it is important to know the market conditions at different price points and product types. I wanted to talk about three recent scenarios from a buyer’s perspective:
Recently looked at a well priced single family home in Kitsilano with a buyer in Kits. This home was obviously priced low and the listing agent was looking for multiple offers. The last sales in the area indicated a sale price of $2.1M. Even though the listing agent had a lot of showings over the week (over 90 groups through) he ended up with one subject offer and the property sold for the asking price. So what is the lessen? Don’t be afraid to write offers and don’t be afraid of competing on well priced homes.
Viewed a well priced 2 bedroom home in East Vancouver at under $550,000. The open house was jammed. The listing agent ended up with 1 subject offer. Same story, the buyers didn’t want to compete. Why not write a subject offer if you like the property at a price that you feel is right for you?
I recently wrote an offer on a $800,000 2 bedroom home. This home was priced under the last sale that was similar to it in the building. My buyer wanted to offer close to the reduced asking price. I encouraged her to offer a lower offer and we were able to buy the property for $55,000 less than the last sale for a better designed / larger home when compared to the last sale only a few months before.
The take-away from this video is now is the time to be a little bit cocky and test the market. My name is David Setton with Oakwyn Realty and Answer’s in Real Estate. I specialize in selling and marketing homes in the Vancouver Westside. You can contact me anytime at 604-808-9796.