107 replies to this topic

[LJ]

Why don't they take back up offers like they do in the US? They stay in effect until all the conditions are removed on the first offer.

[MarkoJ]

Why don't they take back up offers like they do in the US? They stay in effect until all the conditions are removed on the first offer.

 

We do back-up offers here too; however, they are not a slam dunk like they use to be in previous years.  Too many crazy scenarios in this market this year that sometimes it just doesn't make sense to take a back-up.

 

For example, you are a seller asking $899,900 and you get 10 offers.  The top offer is $1,150,000 and the second best offer is $1,050,000.  You accept $1,150,000 with conditions for 5 days. Do you take $1,050,000 as a back-up even though your accepted is $1,150,000 and the market is in an upward trajectory?

 

Also, what if the $1,150,000 needs a one day extension but you've signed a back-up already?

 

Sometimes it makes perfect sense to accept a back-up (for example, you get a back-up that is higher in price than the first accepted offer).

[Victoria Watcher]

The province’s ­announcement that it plans to impose a ­cooling-off period on home purchases took the industry by surprise and solves a ­“problem” that doesn’t exist, says the ­president of the Victoria Real Estate Board. 

 

“We’re not sure what ­problem they are trying to solve with this,” David Langlois said ­Thursday. 

 

“Our problems are in supply, municipal approval [for new housing projects], access to the market and attainability, none of which has anything to do with this.” 

 

A cooling-off period would give buyers a limited amount of time to change their minds and cancel a purchase with little or no legal consequences. 

 

Finance Minister Selina ­Robinson said the cooling-off period, similar to those already in place for pre-construction condominium sales, would give people making the biggest ­purchase decision of their lives time to make sure they’re doing the right thing. 

 

“Especially in periods of heightened activity in the ­housing market, it’s crucial that we have effective measures in place so that people have the peace of mind that they’ve made the right choices,” Robinson said. 

 

The B.C. Financial Services Authority has been tasked with consulting with key industry stakeholders and experts to help determine what a cooling-off period would look like. The government expects to get answers early in the new year, with the goal of introducing legislation in the spring. 

 

Robinson said the cooling-off period plan is a response to what consumers, mortgage brokers and some real estate agents have been saying in the midst of a housing market with very low inventory and high demand. 

 

She said buyers are feeling pressured into putting in unconditional offers, often without home inspections, in hopes of landing a new home. 

 

But Langlois said the cooling-off period will do little more than add a layer of complexity to the sales process. “I don’t think that serves anybody,” said Langlois, noting it could hurt sellers by allowing buyers to tie up one or several properties while they decide which property they actually want. “So now you have buyers making life harder for other buyers.” 

 

 

https://www.timescol...-buying-4724925

[Mike K.]

Saanich councillor de Vries via Twitter:

This might lessen some of the heated bidding wars; it’s not going to bring prices into alignment with incomes

Good to see the B.C. Government adding to the policy tool box again

We need to keep going to ensure that all residents have secure access to affordable/adequate housing

[Victoria Watcher]

a way to end bidding wars would be to make the seller accept any offer that meets the listing price.

Edited by Victoria Watcher, 05 November 2021 - 07:10 AM.

[Mike K.]

How would it lessen heated bidding wars? The best offer is still accepted by the seller, then the waiting period would begin. Presumably a buyer could also offer no wait as part of their bid?

But I thought the NDP said the reason for rising prices was the foreign buyer and vacation home purchasers, so they introduced foreign buyer and speculation taxes. But prices have never been higher.

[spanky123]

How would it lessen heated bidding wars? The best offer is still accepted by the seller, then the waiting period would begin. Presumably a buyer could also offer no wait as part of their bid?

But I thought the NDP said the reason for rising prices was the foreign buyer and vacation home purchasers, so they introduced foreign buyer and speculation taxes. But prices have never been higher.

 

Of course it won't make any difference. Appeasing the masses though by shifting the chairs.

[davidN]

Of course it won't make any difference. Appeasing the masses though by shifting the chairs.

Exactly!

 

Our world operates on the basis of supply and demand. This principle has been applied since the dawn of man. All of these artificial "programs" such as spec taxes, foreign buyer taxes, rent controls etc. etc do nothing to alleviate the basic supply problems.

 

Real change will only happen when the supply exceeds the demand and that will take some hard decisions regarding, zoning, municipal, fees, wait times, building codes etc etc. In an era of historically low interest rates, housing should be affordable to the masses. It is not! So instead of pandering to the vote with BS bandaids, it is time the politicians attack the actual culprits - themselves and their short term need to be re elected by way of appearing to do something instead of actually doing something.

[Szeven]

Dont forget de Vries is like 20 years old. No experience in doing transactions with real money and emotion.

[MarkoJ]

Exactly!

 

Our world operates on the basis of supply and demand. This principle has been applied since the dawn of man. All of these artificial "programs" such as spec taxes, foreign buyer taxes, rent controls etc. etc do nothing to alleviate the basic supply problems.

 

Real change will only happen when the supply exceeds the demand and that will take some hard decisions regarding, zoning, municipal, fees, wait times, building codes etc etc. In an era of historically low interest rates, housing should be affordable to the masses. It is not! So instead of pandering to the vote with BS bandaids, it is time the politicians attack the actual culprits - themselves and their short term need to be re elected by way of appearing to do something instead of actually doing something.

 

+1, this cooling off period will do nothing.

[MarkoJ]

This cool offer period will bring in so many unintended consequences.You’ll have buyers tying up multiple properties in hot markets. You’ll have buyers continuing to shop around during the cooling off period (how would you feel as the seller?). It is going to put buyers working with newer agents at a huge disadvantage (i.e., you have two offers and one is represented by an agent who has done 1000 transactions and one by and agent who has done 10).

 

If due diligence is the primary objective a much better way to do it for would be to legislate 7-day minimum delay on offers with no bully offers allowed with reasonable access for inspections during the 7 days.

 

I also made a video on this yesterday https://www.youtube....8NGUsAxCeA&t=2s

Edited by MarkoJ, 05 November 2021 - 11:50 AM.

[Mike K.]

Can you define the term bully offer so we’re all on the same page?

[MarkoJ]

Can you define the term bully offer so we’re all on the same page?

 

An offer that is made prior with an expiration time prior to the day/time at which offers have been requested. Also explained here -> https://www.youtube....G-OE5YdiCY&t=5s

[Victoria Watcher]

the way to end bidding wars is to require the seller to sell it once an offer has been accepted at the listed price and with pre-set conditions.

 

If you list it at $900,000 you must sell it when an offer is presented with $900,000 purchase price and a, say, 60-day close date.

 

It's quite strange how Realtors and sellers list at $750,000 and then expect multiple offers in the $850,000 range.  and they are frankly not required to sell at any price.    it's a bit of nasty unethical bait and switch when you list a property at $750,000 then refuse to sell it at that price.  but it's done like that in all the hot markets.

 

under the scheme above there will be no bidding wars, as most/all offers will come in under the ask price.  because the posted ask price will be set very cautiously high - every single time.  now the seller is under pressure to accept something before the bidders all move on to the next property.  now the seller is under pressure to accept bids, rather than the buyer being under pressure to submit higher and higher bids, and in the blind bidding process too.

Edited by Victoria Watcher, 05 November 2021 - 12:32 PM.

[Mike K.]

Three offers for $900,000 come in a the same time, all three are unconditional, all three with closing in 30-60 days, etc.

 

But one of the realtors tells the selling agent my guy is ready to proceed at $910,000. What do you do? Collapse all offers, and start the process again, this time at $910,000? Or do you start all over again, this time at $950,000?

[Victoria Watcher]

Three offers for $900,000 come in a the same time, all three are unconditional, all three with closing in 30-60 days, etc.

 

 

 

that would not happen in my scenario as no sane seller or agent would risk listing it that low.  they'd list at $995,000.

 

look i'm no fan of regulation.  willing buyer and willing seller and all.  fill your boots on private sales.  but for listed, advertised prices, it's insane that the Realtor can list and advertise at $750,000 with ZERO intention of selling at that price.    we would not accept that at airlines, at Walmart, or even at the car dealership etc.  SELL for the price you listed it at, or take offers under and up to the list price.  the current system and with its blind bids is super shady.

Edited by Victoria Watcher, 05 November 2021 - 01:08 PM.

[MarkoJ]

that would not happen in my scenario as no sane seller or agent would risk listing it that low.  they'd list at $995,000.

 

look i'm no fan of regulation.  willing buyer and willing seller and all.  fill your boots on private sales.  but for listed, advertised prices, it's insane that the Realtor can list and advertise at $750,000 with ZERO intention of selling at that price.    we would not accept that at airlines, at Walmart, or even at the car dealership etc.  SELL for the price you listed it at, or take offers under and up to the list price.  the current system and with its blind bids is super shady.

 

What would eliminate price baiting is discipline and fines. For example, if a property sells for 20% in excess of asking price the listing agent has to provide his or her CMA to a panel and if they can't justify the artifical low list price they receive a $25,000 fine. 

 

Pretty quickly everyone would start pricing at close to market value in fear of being discplined.

 

Right now there is a huge problem of OBVIOUS market value $1.2 to $1.4 million properties being listed for $995,000 to $1,099,000. 

[davidN]

the way to end bidding wars is to require the seller to sell it once an offer has been accepted at the listed price and with pre-set conditions.

 

If you list it at $900,000 you must sell it when an offer is presented with $900,000 purchase price and a, say, 60-day close date.

 

It's quite strange how Realtors and sellers list at $750,000 and then expect multiple offers in the $850,000 range.  and they are frankly not required to sell at any price.    it's a bit of nasty unethical bait and switch when you list a property at $750,000 then refuse to sell it at that price.  but it's done like that in all the hot markets.

 

under the scheme above there will be no bidding wars, as most/all offers will come in under the ask price.  because the posted ask price will be set very cautiously high - every single time.  now the seller is under pressure to accept something before the bidders all move on to the next property.  now the seller is under pressure to accept bids, rather than the buyer being under pressure to submit higher and higher bids, and in the blind bidding process too.

This does nothing but punish the Seller. Why is it the Sellers problem if people want to pay more? No one is forcing them to buy.

 

Buyers need to to understand market dynamics. If you want to own that property then make your best offer. If it is short then move on. 

 

Right at the moment it is a Sellers Market but it isn't always so knee jerk reactions and band aid solutions are not the answer. Supply is the answer. Flood the market with homes and the prices will drop. Hold steady with NIMBY thinking and the like  and we will always come up short on the supply end

 

I remember the days when Sellers were begging to sell but I didn't see the Government stepping in and forcing sales.

[Victoria Watcher]

my issue is the bait and switch.  or the "false advertising" you could say. 

 

like i say private sales or those with no list price, do as you want.  but listing a property at a price you will not sell it for is very misleading.  we have worked to eliminate that in travel etc.  even car dealers have self-regulated to some extent to get rid of this.

 

put the house up for auction of you want, with reserve bid.  i have no problem with that.

 

it's not a good look for the industry of professionals when you let agents play these games. 

[Victoria Watcher]

What would eliminate price baiting is discipline and fines. For example, if a property sells for 20% in excess of asking price the listing agent has to provide his or her CMA to a panel and if they can't justify the artifical low list price they receive a $25,000 fine. 

 

Pretty quickly everyone would start pricing at close to market value in fear of being discplined.

 

Right now there is a huge problem of OBVIOUS market value $1.2 to $1.4 million properties being listed for $995,000 to $1,099,000. 

 

why set it at 20% over?  just re-set your list prices so you get in sh*t if you ever sell over list.

Edited by Victoria Watcher, 05 November 2021 - 01:29 PM.