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Set Up for Success: Buying a Home In a Hot Market

For a lot of people, buying a great home in a hot market can be equal parts rewarding and challenging.

Low inventory paired with high demand inevitably creates market conditions that can be stressful and difficult to navigate.

If you’re looking to buy a home in Victoria or anywhere in BC, here are four actionable steps you can take to improve your odds of securing a great home in a hot market.

Get Really Clear on Your Budget

Speak to a Mortgage Broker well in advance of starting your search so you know where you stand financially.

Many Buyers are opting to write unconditional or “no-subject” offers, meaning they cannot count on obtaining an inspection or finalizing their financing before going through with a purchase.

Where things can get complicated is if a sale price well above market value doesn’t match the appraisal.

Remember to consider your down payment and additional closing expenses, the most notable of which is Property Transfer Tax.

Consider a Pre-Offer Inspection

A pre-offer inspection simply means obtaining a property inspection before submitting an offer. The major advantage here is the ability to then write an offer without an inspection subject.

As a Buyer, it gives you an opportunity learn more about a property’s overall condition, plus it strengthens your offer in the eyes of a Seller.

Looking for an inspector in Victoria? Here are three great companies that I highly recommend: Home Check Canada, Silhouette Building Inspections, and Bloodhound Home Inspectors.

Discuss Making an Unconditional Offer

A sure way of improving your odds in multiple-offer situations is to consider writing an unconditional offer. This means your offer is not contingent on any subjects or conditions that need to be fulfilled.

While an unconditional offer can heighten your chances of being the successful bid, there are also inherent risks to evaluate.

Because of these risks, it’s crucial that you speak with your Realtor and/or a Real Estate Lawyer about the pros and cons of unconditional offers and if you are in a position to write one.

Consider More Than Just Price

When it comes time to write an offer in a hot market, take into account more than just your offer price by considering dates for both closing and subject removals.

Many Sellers will share their preferred completion dates with Buyers. If a Buyer is able to work with those dates, it’s a win-win for both parties.

If you’re unable to write an unconditional offer and must include subjects, many Sellers will appreciate a shorter subject period. But, make sure you give yourself enough time to work through your due diligence on the buying end.

Buying in a Hot Market?

Browse all the latest single-family detached, condo, and townhome listings in Victoria now. If you’re a First Time Buyer, be sure to check out my Victoria Buyer Guide.

Have questions about buying in Victoria? Get in touch with Reiner today.

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