The BC real estate market is functioning at a record breaking pace, and It is predicted, that as spring thaws the last of the snow a frenzied rush north for rural and recreational property unseen in recent history will ensue. April, May and June of 2021 could be likened to the spring of 1858 when thousands forged their way north into the Interior and Cariboo regions in search of gold and fortune. The only difference is this spring, LAND is the gold that buyers and investors seek.
The late 1850’s prospectors competed in a frantic race to travel north and locate and stake a claim on a viable creek or waterway, driven by a desire to find gold and the security of a better life. Comparably, 2021’s migration of property prospectors are again searching the interior and northern regions, competing with thousands of other buyers to locate, vet and purchase desirable land. Seeking out the best locations within their budget that will offer a lifestyle rich in security, freedom and health.
The Cariboo Gold Rush was historically significant to the settling of the province, as it created new communities and towns of people who didn’t shy away from the hard work of rural life. Property prospectors are seeking that same idyllic homesteader lifestyle filled with simple pleasures and natural freedoms. Whether it’s for work, rest, or play those participating in this summers 2021 Land Rush are in for an epic adventure.
The “property search” has become a full time, day and night job if you are looking to move locations. Locating saleable property before it gets listed and sold is time consuming, and can become all consuming. Fraser Valley listings are lasting on average 11 days on market, and this trend of shortened days on market is growing north. Reports of new listings in interior locations getting accepted offers in less than a week are becoming commonplace. As sellers, become buyers the cycle puts increased pressure on the dwindling supply of inventory that cannot keep up with demand.
With so few listings to choose from buyers are creatively coming up with ways to locate listings that are not yet on the MLS service or under contract. They are driving through towns and neighbourhoods looking for private sales signage in the areas they want to buy in, a beat the street kind of approach. Social media platforms like Facebook have countless public and private location specific and province wide groups with for-sale-by-owner post listings. Lately, there are more and more In search of (ISO) posts with people reaching out directly listing out their specific property needs, asking if anyone is planning to sell their home in a private sale this summer. Buyers are even placing property wanted ads on community notice boards and have friends and family keeping an ear to the ground in hopes of being the first to hear of an upcoming sale and beat everyone else to the bargaining table.
These efforts. to do anything to locate property before it comes onto the market through a licensed listing may seems like a great way to bypass the competition. and it could all work out. But there is a chance that private sale could bring headaches and heartaches. Entering into a private sales contract in order to save on agent fees, or find property others are not competing on may seem like a good idea, and there is a chance everything will be just fine. But there is a possibility that the property you are considering could be misrepresented and entering into a legally binding transaction without representation can put you at great risk.
Buyers should know that most people that are planning to sell contact a trusted real estate brokerage, or a specific licensed realtor that they already know and trust. That makes licensed realtors a very good source of to be listed properties, as they are hearing from potential sellers daily. Most serious seller’s will list with a trusted agent for protection and to have licensed representation to deal with all the complexities and legalities. As an essential service, licensed realtors follow strict guidelines for client safety and protection under provincial public health orders.
Furthermore, realtors who list property have an obligation to find out as much as possible about the land and dwelling(s) to ensure that it is up to safe standards and fit to be sold as a habitable dwelling. All sellers listing with a realtor complete a property disclosure statement form listing all the known property easements, hazards, dwelling issues and water damages. The realtor must disclose the signed list to all potential buyers, so there is no misrepresentation of what is being offered. This ensures potential buyer known up front about any damages or legalities, they are informed if they want to proceed.
For example, all manufactured homes that have had additions or renovations that include any electrical modifications must pass what is called a Silver Seal Inspection before it can be listed for sale by a licensed realtor. The inspection needs to be completed by a Silver Seal Inspector and costs the seller approximately $2000 for certification. The Silver Seal is a measure of safety that ensures wiring is up to code and there are no faulty outlets or issues with the main power connected to the mobile. In a private sale, the same level of transparency and safety accountability are not required, leaving buyers vulnerable to purchasing a home or property with a history of flooding or septic issues, or even fire hazards.
Vetting a property can be costly, time consuming, and almost impossible to complete in the short time frames given in this frenzied market. Buyers are now retaining Buyer’s Agency Services, a concept gaining in popularity in Canada. A qualified agency service that is your exclusive property search team and negotiator. Once your Buyer’s Agent locates a property satisfying all your requirements, they vet and negotiate on your behalf to close at the best price and terms. Working with an exclusive Buyer’s Agency, is a great option to get the exact property you want during this extremely
competitive market,
In the 1860’s, many unsuspecting prospectors were taken advantage of in their naivety, and they were not successful in finding the riches they were seeking. Remember in 2021, all that glitters is not gold and in this fast paced market working with a trusted real estate professional or exclusive Buyer’s Agency can help you achieve your estate goals.
Freddy & Linda Marks, 3A®Group RE/MAX Nyda Realty