In this episode, we discuss a topic very relevant in today’s market: How to Deal with Buyer Fatigue. Morgan & Michael get into how to create realistic expectations and the right mindset for buyers struggling in the rat race of Multiple Offers.
by Oakwyn Realty
In honour of our WOO (Women of Oakwyn) virtual event this Thursday, we have our final episode of the WOO series with a very special guest, Jenny Wun! Get to know this incredible member of our community and learn about her experience as the powerhouse West One team leader and her thoughts on women in real estate!
We have a very special guest this week, Top Producing Oakwynite, Adina Dragasanu! Sit back and hear her surprising and inspiring story from coming over to Canada from Romania, her humbling start in Real Estate, and on to hitting those pivotal changes that launched her successful team. #WOO
At Oakwyn, we want to make sure we are continuing to provide value and insight within the Real Estate Industry. This includes sharing our knowledge and experience with our community.
For this month Oakwyn Managing Broker, Eric Grant is here to shed light on navigating multiple offers. Eric provides his tips on how to get an accepted offer when you are the Buying agent in a multiple offer situation.
Read on for Eric’s advice and get in the know, with Oakwyn.
From the get-go, you need to manage your buyer’s expectations. For example, if a single-family home on Vancouver’s Eastside is being presented at $ 1.3 MIllion, chances are it will not sell for that. You need to have a conversation with your buyer and say, “are you prepared to pay $1.5m, $1.6m, maybe more?”
If the answer is yes, then the client can view the property and plan to proceed through the buying process.
Once you have committed to making an offer, you need to prepare your buyer’s offer with terms and conditions, and potentially including subjects, or lack thereof. As their agent, we want to ensure that they are protected in regard to subjects, clauses, and conditions. However, in the multiple offer world, this could prevent a potentially successful bid from being accepted.
You need to explain the risk of not having any subjects on their offer including advising them to seek legal and accounting advice prior to writing a subject-free offer.
With your client now emotionally involved and wanting this home, you need to discuss what price they are happy paying. In a multiple offer situation, market value says one thing and emotions say another.
Some listing agents have a “one-time shot” to do your “best and final”. You have to be sure that your clients do just that. If they lost the home for a couple thousand dollars, how would they feel? If they have the means to increase that offer price, it might be best to do so. If the answer is “no” and they are happy with the offer price. That is where they need to be.
When presenting your subject free offer, include a copy of the deposit cheque. In your contract, include that the deposit shall be payable “upon acceptance”. This way, once the sellers sign your offer, it is a firm contract. Providing a copy of the deposit will give security to the sellers that it is a firm offer, with a monetary value submitted as security.
If a buyer is able to increase a “standard” deposit, which is usually around 5%, it will once again provide added security to the seller.
You did it. Your buyer now has an accepted offer. In this rapidly changing market, you will need to discuss with your buyer that the appraisal might not come in at “accepted offer” price.
If this is the case, you need to explain that your buyer will need to “top-up” the deposit. Remember the appraiser works for the bank, NOT the buyer.
For example: Accepted offer at $ 1.5 million, the appraisal comes in at $ 1.4 million. The buyer will need to pay the difference of $ 100,000 as the lender will only provide funding for $ 1.4 million.
As the buying agent, you are trying to put your best foot forward to secure the property for your buyer. Ensure that you keep in constant communication with the listing agent during “offer” day. You will want to see if you are, in fact, in a multiple offer situation and, if so, how many offers are being presented.
Upon presentation of your offer, you will need to show compassion for the sellers, enthusiasm for your buyer’s excitement, confidence in your buyer’s ability to close, all while being professional.
Once offers have been presented, you will want to be in constant contact with the listing agent to make sure your offer is being considered. If it is not, does your buyer have the ability to make it one of the contenders? One final note, make sure that both you and your buyers DO NOT fall asleep. You laugh, but it happens more than you think.
We are in this together to improve the real estate industry! Let’s stay on top of what we need to do to continue to lead the way in providing professional, ethical, and excellent service to those we serve.
For more information check out our website, or contact us!
These blogs aim to leverage our Managing Brokers’ industry experience into content to better serve our community. Together, we will continue to stand up for the ways in which we can transform the industry, from the inside out.
In the second episode of our WOO series, we have the third amigo! Enjoy this laugh filled episode with Oakwyn Co-Founder, C.O.O. and Managing Broker Arlene Chiang! The three partners discuss strong women in their lives, family dynamics, and their journey together this past year.
At Oakwyn we’re always wanting to present the facts in an engaging way. Every month, one of our agents will unpick current market statistics from the Real Estate Board of Greater Vancouver to help you understand what’s going on in the real estate market and what you should be looking out for.
For February 2021 statistics report, we have Oakwyn agent Jeff Appelbe here for his market update.
February 2021 statistics show that the last couple of months have been astounding for the real estate market. The sales to active ratio for detached homes is now at 40%. That is the highest ratio we’ve had for sales in the detached market since April 2016. Sales are also up 79% year over year, and prices are essentially up 13% depending on the area.
Read on to see how those statistics can be broken down.
Firstly, February 2021 statistics show us it is in the more affordable areas where we’re seeing the most frantic buying. Surrey has a 70% sales to active ratio which is the highest on record Jeff could find for that area. They’re also getting 20 to 25 offers on some places which is skewing the market.
Secondly, condos took a little longer to turn around but Jeff notes he’s now seeing that buying activity starting to tick up starting around December. Downtown now has a 38% sales to active ratio which means that we’re seeing increased buying in downtown.
Lastly, there are more buyers than sellers, this is driving the prices up. Prices were up 2.6% across the board in just February alone. Think about that on 12 times in a year. This is being caused by ultra-low interest rates. The Bank of Canada has committed to keeping rates this low until 2023 which will continue to drive this sellers’ market.
Contact Oakwyn or Jeff if you would like help navigating the market. There are still opportunities out there, we just have to look a little harder.
Work with your Oakwyn agent, work with your trusted real estate advisor, and come up with a plan that makes sense for you in 2021 if you’re thinking about making a move.
To keep up with the latest market statistics and join the February 2021 statistics conversation, be sure to follow us on Instagram and Twitter, and visit our website.
It’s our 55th episode and the first of our WOO (Women of Oakwyn) series for 2021! Kicking things off, we have a truly inspiring Oakwynite, Gina Bourne! Gina opens up on her start in real estate, the lessons she’s learned along the way, and how she balances motherhood along with a successful career.
Every year, the Real Estate Board of Greater Vancouver awards the area’s top-performing agents. The top 10% performing real estate agents are awarded Medallion Club status, while the top 1% are awarded President’s Club titles based on MLS® rankings
Year on year, Oakwyn agents achieving Medallion and President’s Club status is rising. As per our 2020 statistic report, 1 in 4.5 Oakwyn agents are now members of the Medallion Club. This year, just like always, we wish to celebrate this milestone for all our agents who have received this prestigious accolade.
Read on for the ways in which we are continuing to recognise and honour our Medallion Agents this year.
Every year Oakwyn honours the agents who have made Medallion with a large photoshoot, bringing together agents from across the lower mainland. Unknowingly, our Medallion gala last year was not just celebratory, it would be the last time we were able to gather as a community. We remember the last Medallion photoshoot as the day before the world changed. It has made us even more determined to honour our Medallion Agents this year and do what Oakwyn does best; come together as a community.
This year, with the pandemic offering another hurdle in proceedings, we are celebrating our Medallion agents through a large, company-wide, virtual photoshoot. The shoot and subsequent photo are designed to bring our community together in spirit, even when we cannot be together physically.
The innovative photoshoot is another example of our theme of the year in action and offers a way for our agents to be recognized for their hard work.
Soon we will be together again, but in the meantime, we commit to continue to be innovative and celebrate our agents, our communities, and our wins, any way we can.
Stay in touch with Oakwyn, follow us on social media, or visit our website for more information.
Cam Walker joins us from the North Shore for our 54th episode! We discuss how he and his partner developed REACH CRM and the interesting path that led him to real estate.
Every year we gather as a company, whether virtually or in-person, to celebrate our female agents. Our Women of Oakwyn event is now in its 5th year, with 2021 marking the second year that the pandemic forces us to take the event online. This will not stop us from gathering as a community and instigating valuable and lasting change.
WOO exists to make sure women in real estate have the tools, resources, and community to succeed in the industry and feel empowered, valued, and successful.
Oakwyn fights hard against the inequities of the real estate industry, but we still have a ways to go.
While progress is being made, women in real estate remain a minority when it comes to industry top producers and achieving President’s Club Status. This year, we wanted to bridge the gap that exists in the industry and enable more women to seek leadership opportunities, learn new skills, feel empowered, and excel in today’s market.
On International Women’s Day, Oakwyn announced its first real estate scholarship initiative. The WOO real estate scholarships grant several individuals the funding and opportunity to pursue a real estate career at the institutions of their choice and aims to provide the means for someone to enter the industry with the tools to succeed. All the ticket sales from the WOO event will go towards the real estate scholarships and Oakwyn will be matching all proceeds earned.
The real estate scholarship marks an exciting opportunity for WOO to pioneer something truly life-changing for an individual and continues our push to transform the industry from the inside out.
If you are interested in applying for this scholarship, please fill out this application. The successful candidates will be announced on April 30th with applications closing April 23rd.
Check back in soon to read about our WOO event and the full day’s proceedings. For now, you can find tickets here.
Oakwyn recognizes the need for more women in business leadership roles and will continue to work to help forge a new path for women in the industry. Together, we will make lasting change.
Make sure you keep up with the latest International Women’s Day updates and celebrations on our Instagram.
In this episode, we’re talking about taking your real estate career to the next level by building a team! Morgan & Michael pass along the lessons learned on hiring an assistant and building a team.
In this episode, we have a special guest, our HQ in-house Mortgage Broker Sherlock Yam! Michael and Morgan get the inside scoop on the world of mortgages and are offered realtor specific tips from the expert.