February 2021 Market Update

The Real Estate Market in the Okanagan Shuswap is continuing its robust, upward direction. Many houses are selling for above list price. As we discussed last month, everything points towards another robust year.

A question I hear a lot these days is, “Is now a good time to sell? Absolutely it is. This is one of the few times in the market where sellers do not think their homes are worth more than they are. Most people are surprised by what they can get for their home. Recently, we had a listing come on that almost every Realtor said was overpriced. We received a total of 4 offers in 48 hours and one was $30,000 over list price. These stories are not the exception, they are the norm in this market. If you are thinking of making a move in the next 5 years, now is probably the best time you will see to sell your home.  However, be careful. You have to remember that the reason prices are rising is that the inventory of homes to buy is so low.

There are 2 ways to avoid being homeless when you sell. First, you can buy subject to the sale of your home. This means that you put an offer on a house that does not move ahead to closing unless you sell your home. The problem with this solution is that this is viewed as a fairly weak offer. The seller has to count on you to price your home

correctly to sell before they know their home is sold. In this market there are likely offers without this stipulation which puts you in a poor negotiating position. In my opinion, the better way to solve this problem is to list your home and when the offer comes in have us put the following clause on the contract: “Subject to the seller finding suitable accommodation on or before (Date). This condition is for the benefit of the seller.” What this means is that the sale of your home does not go through unless you find a home to buy or rent and then remove this condition in writing. The reason I think this is a better option is it is an extreme seller’s market. A buyer has much more motivation to allow the seller to find a home than sellers have to allow the buyers to sell their home. You will likely be more successful with the latter solution than the former one.

If you would like to find out what your home is really worth in a market like this, give me a call at Century 21 and I will come out and evaluate your home, or it can be done completely remotely if you prefer. It is totally free.