Every active buyer in Calgary is well aware that we are experiencing an extremely tight real estate market with the lowest inventory levels since 2006
I have numerous buyers right now, just waiting for the right property to hit the market. And when I say “waiting,” I mean waiting, and waiting… And waiting…
For some, that elusive “perfect” property never seems to appear. For others, when the right one finally comes on… BAM! SOLD! Way over asking in multiple offers!
This is highly frustrating for them and for me too.
So what strategies can buyers employ in a market like this (high demand combined with extremely low inventory)?
The first thing that comes to mind for many buyers is to simply wait for the market to cool off so there’s more inventory to choose from, and it’s not so stressful.
This sounds perfectly logical. But, unfortunately, it’s the last thing I would recommend to any of my buyers, and here’s why:
By the time the market cools off, it’s not inconceivable that prices may have gone up 10% or more in certain market segments.
Sure, it’ll be less stressful, but now you could be paying 10% more for the exact same property. That’s equity that you could have gained by acting sooner.
Rather than missing out on the gain, here is my game plan to win in this market:
1. Accept the situation. It is what it is, and you (or I) can’t change it.
2. Do your homework. If you haven’t gotten out to see several properties, plan to start ASAP. If you don’t do this, you won’t gain the base knowledge required to recognize when the right opportunity presents itself. Believe me, buyers who have completed their homework win, and those who haven’t lose.
3. If you’re my buyer client, do not EVER worry about “wasting my time.” Do you want to know what I’m doing right now? I’m waiting, hoping my phone will ring with a buyer client wanting to see a property. I’ll gladly quit writing this blog right now!
Know this: Viewing properties is, BY FAR, my favourite part of my job! Even if we both know up front that you’re only doing your homework and there’s no way you’re actually going to write an offer, that’s fine! It’s all part of the process to bring us one step closer. So call me. Please!
4. Watch for every new listing on your email; if it looks good, don’t hesitate to contact me immediately to set up a showing. Time is of the essence, and it’s often the early bird that catches the worm. If it’s a good property offering good value (I’ll be able to tell you), let’s go ahead and submit an offer! Yes, you probably have little to no leverage in negotiating a better price on the first day on the market, but it’s better to pay the full price today rather than 5% over tomorrow.
Of course, this depends on how well-priced the property is, which is all the more reason to do your homework. The point is that being the only one to write an offer on the first day on the market is FAR better than being one of five or ten on the second day. Sometimes you get the best deal by paying the full price.
5. In the situation above, ignore the notice on the listing indicating they will review offers “on Sunday at 4:00 pm.” Instead, I’ll show you how to structure an offer to tempt those sellers to accept your offer today rather than gambling and waiting. Of course, every situation is different, but I will always give you the best possible advice.
6. If you miss out on one (or two or three), try not to despair! I’ve had numerous occurrences this year where we’ve successfully got a great property after a few tries.
Be both diligent and calm!
Don’t give up, but don’t stress yourself out, either. Hey, I can handle the stress for both of us. I’ve done this a thousand times!
And remember, I ❤️ looking at properties. Call me. Please!
Ted