In a busy seller’s market, buyers often find themselves competing for properties. It’s a common theme throughout this book, because this situation is unavoidable. Many Canadian markets don’t have enough homes to satisfy potential buyers. This structural imbalance changes the rules of the game.
BC listing agents are required to inform buyer’s agents whether or not they’re in competition. For most buyers, a multiple offer situation affects their offer price, some terms and subject clauses and the time period they need to perform their due diligence.
Buyers who know they’re competing for a home may also choose to include a personal letter with a photo of themselves, their pets or their children to (hopefully) endear themselves to the homeowner.
It may seem like wishful thinking to believe this extra step could influence a complete stranger, but I can tell you from experience that it can make the difference between an accepted offer – or the chance to revise your offer – and a lost opportunity.
Home sellers and their agents are human, after all. A well-executed offer that includes this personal touch sends a message that the buyer loves a home enough to do everything they can to secure it. As long as it’s thoughtful and well-written, I’ve never found that it hurts a buyer’s prospects.
When you’re in competition, there’s no expectation that the seller will give you a counteroffer. So, many buyers will write their best offer price, rather than an opening bid to start the conversation.
To make your offer more attractive to the seller, you may also choose not to include certain subjects. For example, you may choose to read all the documents ahead of the offer date, so you don’t need that subject clause in the offer. You may also choose to inspect the home before the offer date for the same reason. A financially secure buyer – one who’s buying below their means – may also choose to forego the subject to financing clause.
Some lenders will also evaluate the home ahead of time to ensure your chosen property will be approved. This is one of the reasons why I encourage clients to choose a mortgage specialist; someone who offers a high level of service and will answer their phone after 5:00 pm on offer day.
A buyer who can write a no-subject offer stands a much better chance of winning the home in competition. That’s why performing your due diligence before writing an offer can be a good strategy.
The downside? You’ll spend a lot of time reviewing documents, working with your lender and inspecting a property that you may not win in a bidding war. You could also spend $500 – $1,000 on a home inspection for that lost property. But, this could also happen when you’re the sole buyer for a home that fails an inspection. In a competitive market, many buyers are willing to do their homework before the offer period, because it gives them stronger odds of winning the home they want.
In BC, listing agents are required to inform buyer’s agents when they’re in competition and provide a written record (within 24 hours) stating the number of offers received and which brokerages submitted the offers. The province established this requirement in 2024 to give buyers peace of mind. If a listing agent claims the buyer is in competition, they have to supply written documentation. In short, they have to prove it.
A Q&A with Mary Cleaver, the author of You Can’t Live in the Ceilings.
Mary Cleaver recently published You Can’t Live in the Ceilings, a practical guide to everything about buying and selling real estate in BC. We sat down with her to ask why she wrote this book and what she hopes Homeseekers will gain from reading it.
