VANCOUVER (NEWS 1130) – Do your research: that’s the message coming from the BC Real Estate Association, which says it’s seeing more unconditional offers being made.
In some cases, these offers are made even before financing is secured, as competition for homes increases.
The Canadian Mortgage Brokers Association warns you could find yourself in a tough situation if you don’t do your due diligence.
“Purchasers who enter into unconditional offers without sufficient committed financing to complete their purchase risk losing their deposit and being sued for damages if they are unable to complete,” explained CMBA CEO Samantha Gale.
“Purchasers may experience challenges in obtaining financing in a rapidly escalating real estate market due to the property appraising lower than the contract price, not being able to secure property insurance or not qualifying for the necessary financing, which has become more onerous during COVID. We urge prospective purchasers to speak to a mortgage broker as soon as possible to obtain appropriate financing advice,” added Gale.
The reminder to be prepared goes for both buyers and sellers, as the housing market continues to heat up.
“As a result of the current housing market conditions, Consumers are facing challenging circumstances,” said Darlene Hyde, CEO of the BC Real Estate Association. “We understand the pressures both buyers and sellers are facing, and we encourage consumers to seek a clear understanding of the risks associated with these emerging trends by talking to your REALTOR®, and other professionals when advised.”
In an effort to help, realtors are being offered a number of new resources. They include a new form that makes buyers acknowledge what information they actually have on a home. It is meant to add transparency to a transaction, and also encourages people to do their research and get professional advice before putting pen to paper.