Yatter Matters

Spilled Milk

To tell you the Vancouver Real Estate market is in turmoil is a re-affirmation of the obvious.

Pundits and economists have shouted their positions stating that the Vancouver market will continue to decline for the balance of 2008 thru 2010 and possibly longer. The news now amounts to spilled milk and all that is left to consider is the future confirmation of the damage.

Think

That being a given, then a specific aspect of buying and selling your home needs your consideration.

Potential Loss

Some Realtors encourage Buyers to include the “SUBJECT TO SALE” clause in their offers to purchase. Depending on several factors, two of the most important being timing and the rate of market decline, the two elements will determine your level of your exposure to greater financial loss.

Shooting Yourself

Should a Buyer include the “SUBJECT TO SALE” clause in a DOWN MARKET they increase the odds that they will be paying more for the property than needed. Simply, you obligate yourself to a higher fixed purchase price while the market continues to drop.

Bad Idea

Choosing the subject to sale option creates the challenge to minimize the spread between your fixed purchase price and the fluid sale price of your FOR SALE home. In effect, you now have self-imposed pressure to expedite the sale of your home where because of timing, you may feel the need to substantially discount your price in order to minimize the difference.

Take Control

Reverse this process and you have a more palatable solution. Sell your home first prior to making your offer. Using this process you reverse your position and are now able to take advantage of the Seller’s anxiety and the market’s now lower price.

I’m always happy to answer your Vancouver Real Estate question? Call or send me an email Twitter or Skype me at YatterMatters.

Larry

*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed. **Numbers provided may vary as they are dynamically posted by the REBGV.