Cooling-off period not the solution to B.C. housing crisis, real estate association says
Courtney Dickson - CBC News • March 9, 2022
Association counters government with 'pre-offer period' as way of giving buyers time to do their due diligence
B.C.'s housing market is so hot that buyers are being forced to make offers on homes so quickly that they don't get a chance to review documents, get appraisals or schedule inspections.
Natalie Holgerson received an unsolicited offer on her townhome in Steveston last summer and decided to take a chance and accept it, planning to quickly find a new home. Now, she's living in a rental unit.
She said she goes to open houses on weekends but has to have offers prepared by Monday, offering little time to do her due diligence.
"You cannot have any subjects because you know your offer won't even be considered if you do have subjects," she said.
Holgerson said there are few properties available, and even though she's made several offers, she hasn't been able to purchase a home.
"Unless you're willing to take on a million-dollar-plus mortgage, which we are not at this stage in our lives, it's a super challenging situation," she said.
Natalie Holgerson received an unsolicited offer on her townhome in Steveston last summer and decided to take a chance and accept it, planning to quickly find a new home. Now, she's living in a rental unit.
She said she goes to open houses on weekends but has to have offers prepared by Monday, offering little time to do her due diligence.
"You cannot have any subjects because you know your offer won't even be considered if you do have subjects," she said.
Holgerson said there are few properties available, and even though she's made several offers, she hasn't been able to purchase a home.
"Unless you're willing to take on a million-dollar-plus mortgage, which we are not at this stage in our lives, it's a super challenging situation," she said.
Larry Anderson, president of the Fraser Valley Real Estate Board, said Holgerson's situation is not uncommon, and it makes things difficult for realtors, too.
"Our job is to guide, serve and protect that client and we put them into this environment that we know we're not giving them the best advice but they have no opportunity to own a home if they don't jump out on that limb," Anderson said.
The province announced last year that it planned to introduce legislation that would give homebuyers the opportunity to change their minds when they put an offer on a home. A proposed 'cooling-off period' would allow purchasers to back out with no or diminished legal consequences.
"Our job is to guide, serve and protect that client and we put them into this environment that we know we're not giving them the best advice but they have no opportunity to own a home if they don't jump out on that limb," Anderson said.
The province announced last year that it planned to introduce legislation that would give homebuyers the opportunity to change their minds when they put an offer on a home. A proposed 'cooling-off period' would allow purchasers to back out with no or diminished legal consequences.
But the B.C. Real Estate Association worries that legislation, the details of which have yet to be determined, won't address the cause of the problem.
"We are deeply concerned that this decision was made without thorough public consultations with the real estate sector and consumers, a problem statement or supporting rationale," the association said in a news release.
The B.C. Real Estate Association released a white paper with recommendations for the provincial government as it moves forward with the legislation.
"We are deeply concerned that this decision was made without thorough public consultations with the real estate sector and consumers, a problem statement or supporting rationale," the association said in a news release.
The B.C. Real Estate Association released a white paper with recommendations for the provincial government as it moves forward with the legislation.
It says a "pre-offer period" would give the buyer more time to consider a purchase. Rather than allowing buyers to back out, as in the cooling-off period envisioned by the government, it would require that properties be listed for five days before offers are opened.
The association says that would provide time for property viewing and inspections and would also combat "bully offers," when buyers make time-limited offers immediately upon listing, forcing sellers to make snap decisions.
B.C. Finance Minister Selina Robinson said the government won't scrap the idea of the cooling-off period, but the province is continuing to weigh its options.
If the province does move forward with the cooling-off period, the association suggests a financial penalty for anyone exercising that right that would be at least 50 per cent of the deposit and should also allow for exemptions where the buyer and seller agree to waive the cooling off period.
The association says that would provide time for property viewing and inspections and would also combat "bully offers," when buyers make time-limited offers immediately upon listing, forcing sellers to make snap decisions.
B.C. Finance Minister Selina Robinson said the government won't scrap the idea of the cooling-off period, but the province is continuing to weigh its options.
If the province does move forward with the cooling-off period, the association suggests a financial penalty for anyone exercising that right that would be at least 50 per cent of the deposit and should also allow for exemptions where the buyer and seller agree to waive the cooling off period.
A new global analysis suggests Canada’s major metros are among the hardest places on earth for young people to buy their first home, with Vancouver, Toronto and Montreal ranking near the bottom of a 70-city affordability index. The study, from UAE-based developer Bloom Holding, estimates the typical first-time buyer in Vancouver enters the market at age 46, while those in Toronto and Montreal reach homeownership at around 40 and 39, respectively. The findings echo a broader North American trend. In the United States, the median first-time buyer age has climbed to a record 40, according to the National Association of Realtors — up from 33 just a few years ago — as higher rates and decade-long price gains delay ownership for younger households. 👉 Read the Article Here
Thinking about selling your home? In this video, I break down the Six Seller Essentials you need to know before you list. These insights come from 30 years of helping families buy and sell across Langley and the Fraser Valley, and they’ll give you a real advantage in today’s market. 📅 Book a time with me https://rly.forsale/Chat-with-Andy 🏡 What you’ll learn today 1️⃣ Why today’s market is slower than it looks 2️⃣ How smart pricing attracts serious buyers 3️⃣ Why a single offer can reveal more than you expect 4️⃣ How timing can protect or erode your equity 5️⃣ Why experience matters even more in a slower market 6️⃣ How to build a plan that fits today’s conditions 🎅 You’re invited to Santa Photos in Fort Langley Join us at 9160 Church Street between 1 and 5. Families, friends, and pets welcome. All donations support LAPS. 📍 About me I’m Andy Schildhorn with Macdonald Realty. Your Langley and Fraser Valley Realtor. 30 years helping sellers make smart, confident decisions. ☎️ Let’s connect Book a meeting: https://rly.forsale/Chat-with-Andy
Our experience having Andy as our realtor was very good! We sold our house with Andy, bought a condo , sold the condo and now bought a townhouse with Andy as our realtor. 👉 Full Review Here
