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How the Real Estate Markets Changed This Year

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Blog by Antonio Vargas | June 14th, 2016

For years, the Vancouver and Mexico real estate markets have been inundated by foreign investors, particularly those from China. As a licensed Realtor, and expert in these markets, I have been noticing a remarkable trend in the last year. There are significantly less investors snatching up real estate in Vancouver, thus when seeking a home, or seeking to market to those seeking to purchase a property, new strategies are needed from White Rock to Aldergrove. 

Change can be scary, but fear not, I, Antonio Vargas, am here to be your guide. First, since there has been an approximately 96% plunge in overseas investors in Canada, we need to work together to adjust our home buying strategy. No longer can you expect most real estate properties to have multiple all-cash offers. Additionally, there are fewer newly renovated, aka flipped, properties. Having done rehabilitation and resale of properties myself, I understand the lure of these newly renovated properties. However, as your trusted advisor, I can tell you that purchasing a property that needs a bit of work can be immensely more financially beneficial. Here are the two things homebuyers need to know, and conversely those wanted to get property buyers to their locations need to understand. 

  • In the absence of abundant full cash offers, homebuyers have more opportunity to negotiate lower sales prices for real estate, since they have less competition. In order to attract these buyers, sellers may consider less aggressive pricing strategies to avoid long delays in selling and potentially stale listings.  
  • Everything is negotiable. As the inventory of properties increases and the buyer pool decreases, buyers are put in the driver’s seat and can negotiate for little things more. There is virtually nothing in real estate that is not negotiable. I even have a colleague who included a puppy from the home seller’s new litter in a bid. Her buyer did get the puppy when the property closed. This means that sellers should consider excluding things from the initial offering so that they have more negotiating room. Check out my website at http://antoniovargas4.ourubertor.com/ for examples of how to expertly draft listings to include or exclude items. 

As you can see, buying or selling a property in today’s market is all about negotiation. Call me today at 778-688-7011 to see how I can help you negotiate an amazing transaction.