You wouldn’t know if you only read mainstream media sources, but there is much more to the state of the housing market in BC than just the housing crisis that at the most basic level is based on a huge disparity between the demand for homes and the supply of them. For sure that is as newsworthy a topic if any if we’re to discuss the market here or anywhere in Canada, but other points that are especially relevant at this time are the real estate transaction process and consumer protections.
The need for consumer protections in particular is one that has been pushed to the forefront by the blind bidding trend and people making offers without subject-tos or home inspections because of the fact they have no chance of getting the home if they don’t bid and move to close as soon as possible. This of course is inadvisable in any homebuyer scenario imaginable, but it’s happening more and more frequently in Vancouver and elsewhere in overheated markets in Canada.
Real estate agents are always keen to provide good advice and guidance for clients, but these new realities can have them in a tough spot too. Any dedicated realtor will want to steer their clients in the right direction, but with fewer and fewer prospective homebuyers being qualified to purchase homes it becomes a challenge for the realtor too. That’s why our online real estate lead generation system here at Real Estate Leads is such a good choice for anyone who wants to be immediately put in touch with greater numbers of people truly ready to sell a home, or buy a home.
Back to topic, just a little more than a week ago the BCREA (British Columbia Real Estate Association) released a white paper with the goal of addressing a wide swath of concerns that people in the industry and those who want to enter or move in the market have at this time. Let’s look at it with our entry this week.
5 + 30
The paper made 5 primary recommendations, and then an additional 30 secondary recommendations. The 4 primary recommendations were
- Providing buyers with a grace period to research a property before making an offer, which would be accomplished by a mandatory ‘pre-offer period’ of at least 5 business days from when a property is first listed. No offers can be made during this period.
In our opinion this is an excellent suggestion, and much more appropriate than the ‘cooling off’ period suggested where buyers could back out of an agreed-upon home sale after closing a deal.
- Helping consumers make more informed decisions in multiple offer scenarios by having real estate sector stakeholders collaborate to establish a process that promotes offer transparency for buyers while still respecting privacy concerns.
- Ensuring immediate access to relevant information is provided to would-be buyers by making property disclosure statements mandatory and available immediately when a home is listed.
- Mandating all documents related to strata transactions be made available with the listing, possibly to include strata bylaws, depreciation reports, status of contingency funds, strata council correspondence and any Form B.
- Raising the entry qualifications for new licensees as a means of ensuring consumers are supported by an evolving profession that is evolving and both knowledgeable and receptive to a changing market.
The BCREA also states they believe market conditions are untenable and that long-term measures to create more housing options for British Columbians are very much needed.
Following Recommendations
The white paper also contains an additional 30 recommendations around housing supply issues, better consumer protections in real estate transactions, how the real estate sector should evolve and the proposing of a world-leading regulatory structure.
The aforementioned proposal for a ‘cooling off’ period was a part of what the report was designed to address specifically. Their statement regarding it was that they are ‘concerned that this decision was made without first conducting thorough public consultations with the real estate sector and consumers, a problem statement or supporting rationale’ and of course that is something that we are also very much in line with and imagine that all realtors and many current homeowners will agree with.
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