The Powell River real estate market was very active in April with 47 residential sales which is well ahead of last April at 40 and almost to last year’s peak in July at 48. So far May is looking like another strong month as the new listings are scooped up quickly by anxious buyers. Thirteen homes sold at or above list price and five sold in 10 days or less. We’re seeing this same trend in the beginning of May as well. Buyers must be quick and well-prepared. Sellers need to be on top of the market to be sure they don’t under-price in this rising market. Both point to the need for a trusted REALTOR now more than ever!
Last month’s newsletter described some of the challenges that are arising out of the very rapidly rising real estate market in the Vancouver area. ‘Flipping’ arises when a contract for sale of a property is sold (assigned for a price) to another buyer before completion of the contract. The BC government has stepped in and now requires that every written offer must be accompanied with an information notice if the offer does not contain one or both of the following terms:
A term that provides that the contract must not be assigned without your (seller) written consent;
A term that provides that you are entitled to any profit resulting from an assignment of the contract by the buyer or any subsequent assignee.
The notice encourages sellers to get legal advice regarding the absence of these terms. It goes on to warn that without the terms, the contract may be assigned (‘flipped’) and the seller will not have any right to any profits made through flipping.
The new rules do not outlaw flipping, but give seller’s much more information about the possibilities of flipping than they may have had previously . Anyone who is licensed to sell real estate in BC is bound to comply with this new regulation to provide “Notice to Seller Regarding Assignment Terms”. It allows people to make their own choices, but requires that they be fully advised.
Tough Times for Out-of-Town Buyers…
We’re not in the crazy hot market of Vancouver, but the Powell River real estate market is pretty hot right now. The deficit of listings for the past several months have yielded quite a number of frustrated buyers and we’re seeing the well-priced listings being scooped up within days and often with several buyers competing for the same property. I’ve represented buyers in competing offer situations twice in the last week. This is tough on local buyers, but it’s really hard on our buyers from other parts of the province or country. They call about a listing and it’s already got an offer on it. If not, they’re required to move very quickly to make an offer, but, as you can imagine, they are reluctant to make an offer sight-unseen. By the time they make arrangements to fly out to see it, there may be offers already coming in. Some are relying on friends who live locally to go through the home and give feedback that way. For two clients, I’ve gone through with a video camera to give a better feel for the home and property than you can get with still photographs. To make matters worse, sellers are reluctant to accept offers with a “subject to viewing” clause for fear that the out-of-town buyer will arrive and decide they don’t like the house. For sellers, it’s much safer to accept an offer from someone who’s seen it.
It’s a very fast and complicated market right now. I’m here and ready to help you through it if you’re considering either buying or selling. Call anytime at 604 223-0811.
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