Vancouver Home Buying Retreat
Posted January 23rd, 2012 in Real Estate, Sharing the Experience | 
Coffee With A Twist
A coffee conversation today with my Vancouver Realtor® buddy had an interesting twist.
Sunday Offer
It was Sunday in the early evening when the call was made to the listing agent.
- Buyer’s Realtor® – “We’d like to make an offer!”
- Seller’s Realtor® – “Ok that’s great but, I need to tell you that three others who visited the weekend open house have also declared their intent to make an offer as well,” said the listing agent.
- “Oh – well then, I will inform the buyers I’m representing to advise them that you expect multiple offers – I’ll get back to you with their decision.”
Later Sunday Evening
Buyer’s Realtor® – “The buyers I’m representing have decided that they do not want to participate in a multiple offer situation.” “Thanks for your time and good luck with your multiples.”
Monday Morning
- Seller’s Realtor® phones. “Would your buyer’s reconsider their decision?”
- Buyer’s Realtor® – “Why?”
- Seller’s Realtor® somewhat embarrassed – “the other three offers that were declared Sunday evening have decided not to go forward.”
Retreating Thoughts
Under the assumption that the recent lack of Vancouver home sales need a reason then here is one that might fit. If in fact this is the reason, then we are left to ask if this is a new Vancouver home buying reality or worse, a portent?
Without numbered conclusions, only suspicion remains that a number of Vancouver home buyer’s may initially be jumping at record low interest rates that excite the prospect of owning a Vancouver home. Then, with quiet reflection, they recognize the financial impact to their life style for years to come. As silent deliberations root buyers exorcise the simplest way out of their dilemma – they retreat to leave sellers gasping.
It seems people don’t know how to buy real estate unless there are line-ups around the corner. Perception is the culprit and confidence comes in knowing that you are making a good decision based on what’s right for each individual. In this regard, I can’t think of one reason why anyone would not want to buy at these historically low interest rates.
More importantly, they will all rush in when it appears that higher interest rates are imminent. At the moment it appears (perception) that rates may even go lower and that the opportunities may get better. Unfortunately this is human nature. History tells us that we like to buy on the way up and sell on the way down. The smart people buy when the commpetition is low and the opportunity to negotiate is high.
Very poetic last paragraph Larry.
I would have said less prosaically.
When buyers calculate the mountain of debt they have to get into, to acquire a few pieces of wood nailed together sitting on some dirt to call their own, it’s like a two-by-four hit them across the head.
@Van_terior
I can find several reasons why not to buy now… and this is why I won’t. I won’t list them here. I will just give a few: I pay 3000$ rent for a home that would cost me $4000 in interests only. Not to mention carrying costs, taxes (!), insurance, repairs, and the risk to leave in an asset that could lose $150,000 in one year.
@fish
“like a two-by-four hit them across the head” -
It’s important to know if that 2 x 4 had nails embedded.
@turtle
on the other hand…
assuming Newtonian law – your logic prevails until such time that the $150K/yr coin lands on the up side. As a matter of ‘interest’, will you stand firm then?
This may not be indicative of anything other than the character of these buyers. They had nothing to loose going in at asking (or lower) and they could have had it.
@dan
“had nothing to loose going in at asking (or lower) and they could have had it”
But they didn’t!
Very interesting Larry. Throughout history, Vancouver has NEVER escaped a worldwide real estate bubble implosion. Sometimes our timing is not exactly in sync w/ rest of world, but eventually it always happens, yes even in Vancouver – 1980′s, 1990′s etc. So if you think it won’t happen this time, you would have to believe that it is not only different in Vancouver, but also that it is different THIS TIME in Vancouver which is quite a risky bet given that prices have now reached all-time ridiculous levels (yes, even on worldwide basis) on any measure.
“Ok that’s great but, I need to tell you that three others who visited the weekend open house have also declared their intent to make an offer as well,”
Such an old trick.
@boom
“Old Trick”
not in this case because it’s not sold!