Unconditional offers have become routine in Vancouver’s out-of-control housing market, where a single listing can attract dozens of bids.
Any condition on a contract, such as the need to secure financing or even have the home inspected, can cause a seller to skip to the next prospective buyer.
That forces aspiring homeowners to do their due diligence on the property’s history in a matter of hours – not days – if they want to win an increasingly intense bidding process that experts say could be leaving buyers vulnerable.
It’s also a practice the province’s real estate regulator has warned about as recently as last summer. Today we will be speaking with Atrina Kouroshnia, a Vancouver mortgage broker, about the dangers associated with making an offer with no subjects.
Dangers of buying a property with no subjects:
- No home inspection opens you up to risks that here is major structural damage, health and safety issues, etc
- If the appraisal falls in short, the buyer risks having a loan for smaller amount that they were pre-approved for
- Not having an exit to get out of the deal, if you as the buyer need to get out of it
One solution is to have an appraiser and a home inspector to attend the Open House with you before you put the offer in.
But that, of course has costs associated with it.