April Update…

Sales in the Powell River residential real estate market in April continued to build at 36, up from 33 in March but still under last April’s sales of 47.  Last year, May was the high point for sales at 63.  We may not hit those heights this year, but the market continues to be strong with quick sales and regular competition for some homes.  New listings continue to be needed which is the main reason for fewer sales this year.  There is no shortage of buyers!  In the past three months this year we’ve had 101 new listings compared with 140 for the same period last year.  In this sellers’ market, properties are selling at a median of only $2500 below the list price with several going at or above list price.  The median number of days on market is 35 days.  Again, many are selling within a week of hitting the MLS.  It’s a very good time to be selling a house!

Market Exposure…

In a busy market like this one, it’s very important that your home gets good market exposure before agreeing on a price.  Many of the desirable homes being listed right now come with the proviso that, “the seller will be looking at offers on May 15 (for example)”.  In our rising market, a quick offer prior to listing with a REALTOR or before it’s had some time on the market may be lower than the current market value.  In this sellers’ market there are frustrated buyers who are ready to jump on a well-priced, well-kept home very quickly.  However, it’s important to ensure that it’s not ‘first come, first served’ because there may be other equally frustrated buyers who are willing to pay more than the first one who sees your home.

Some sellers may feel guilty about holding off, but this is how fair market value is established.  It’s fair that as many people as reasonably possible should have an opportunity to offer.  There are many buyers who live outside of Powell River and are quite willing to make a quick trip up to see your home and make an offer.  Generally, REALTORS are allowing 3-5 days to give the most interested buyers a chance to have a look and make their offer, whether alone or in a competing situation.  Call me for good advice in this busy, sellers’ market.

Competing Offers…

In this market, we’re seeing the occurrence of competing offers more frequently.  This happens when more than one buyer wants to make an offer on a home.  When the listing REALTOR becomes aware of such a situation, he/she will let the buyers’ REALTORS who’ve shown the home know that there will be more than one offer and that the seller will be reviewing offers at a certain time and date.  Parties wishing to offer on the property will submit their best offer prior to that time.  At the appointed time, the listing REALTOR will review each offer with the seller and help them to decide which offer is best for them.  Generally, one best offer is selected, but if two offers are very similar, the seller, through their REALTOR, can choose to go back to both buyers and ask if they wish to resubmit a better offer.  The buyer(s) may or may not choose to do so.

Best Offer…

In a competing offer situation, generally the price is a top consideration however, depending on the seller’s circumstances the possession date may trump a higher priced offer.  Similarly, the number of conditions on the offer will be weighed against the price as well.  Sometimes, we see “all cash” offers which generally means there are no conditions attached and the sale is final as soon as the deposit is handed in – usually within a day.  In this case, a buyer must know that they have the money to pay on Completion Day; the home is insurable; and that they are comfortable making a purchase of this value without having an inspection done.  (Clients should always be advised to have an inspection done).  In competing offers, you must decide how much you’re willing to pay for the home and how much risk you’re willing to take.  Competing offers is a challenging situation and it’s worth having the professional advice and experience of a REALTOR when making your offer.

Four Homes on Ocean View Strata Lot!

Palmer Rd

• 4 homes sold together or individually
• 1.27 ac. lot with ocean view
• Generating $2700/mo total rent

$529,000

By appointment only.