Planning on Buying a Home in Kelowna?
We’ve got everything you need to know about buying a home in Kelowna right here! Kelowna is a hot spot in B.C. for homebuyers across the country, with record high sales kicking off the spring season across Canada! Many people are relocating across the country to enjoy the views, wineries, outdoor lake lifestyle, and mountainous trails for exploration… with the flux in activity, buyers should be prepared for the new Seller’s market we’re operating in! Don’t worry, we’ve got everything you need to know here.
What Can You Expect When Buying a Home in Kelowna?
It’s only Spring but it feels like Summer here in Kelowna! With the beautiful weather, and the
lifting restrictions, it’s a busy season in Real Estate, with enthusiastic buyers looking to settle
into their new homes in the valley. Re-prioritizing housing and living standards through the
pandemic has been popular and Kelowna is seeing an extraordinary flood of home sales.
As prices increase across the country, many buyers are looking to abandon the big city lifestyle
and cost, to instead immerse themselves in a little more space, temperate weather, and the
easy-going mentality that the Okanagan Valley has to offer. Kelowna is considered one of the
biggest tourist cities in BC with a desirable climate, lakeside location, an abundance of wineries,
and all-season sports to enjoy. Does this sound enticing to you? So why not make it your place
to call home!
With the flood of national buyers making their way to beautiful British Columbia, there’s more
competition now than ever before! And keep in mind, a lot of work goes into securing the
home of your dreams, so with the peak demand for Kelowna homes, being prepared is your
best bet. And there’s no better team to help you here than HILBERT&CRICK. Here’s what you
need to know as a Kelowna-bound buyer in 2021.
How Does Low Inventory and High Demand Affect You?
The record demand for single family homes, condos, and townhouses alike, without the
inventory to support the influx of buyers is leading to what we call “buyer’s fatigue”. The low
inventory means it’s a competitive market, and many buyers are experiencing incredible
frustration when making an offer to purchase a home. With demand for homes in Kelowna at
its highest in over ten years, there more competition now than ever. It is likely you will find
yourself in a bidding war for your dream home.
Due to this, homes are selling quickly! It is important to note that not every home is getting
multiple offers, or seeing bidding wars, but it is a common occurrence when a property is priced
right. This type of dynamic situation is why it is important to approach buying a house with a
real estate team like HILBERT&CRICK, with experience navigating this kind of market, and
strategies to win in multiple offer situations, or to get you the most bang for your buck when
selling. Being prepared means putting your best foot forward and working with us mitigates
your frustration in this kind of market, whether you’re buying or selling.
Investing in a Hot Market & Buying a Home in Kelowna
As the desire to live in Kelowna grows, and so do the prices, many buyers looking to relocate or
settle down will be priced out, meaning the need for rental accommodation will also be very
high in the future as our population develops.
Multi-units or multifamily properties are an excellent way to invest in Real Estate, and more popular now than ever before. Two or more unit dwellings are a great way for investors to make a protected purchase, where the tenants pay down their mortgage (especially in an owner-occupied situation), while building greater financial freedom.
When owning a multi-unit property, you can decide to have as much involvement as you please. It is relatively easy to be an active landlord on the premise or contract out a property management company for a fee instead. With more need than ever, and Kelowna tourism culture of short-term Airbnb’s in the summer (or winters at Big White), no matter how you manage your property, finding tenants for an investment can be easily done.
First Time Home Buyer in a Hot Market
Buying a home in Kelowna during this market can be tough for you, but we’re here to help! Those who already own property likely have more capital to use when moving to or within Kelowna, and first time homebuyers could feel that they are being priced out of the market with the rise in prices. It can still be possible with the right tools!
It’s important to know that there are programs in British Columbia that support first time homebuyers. For example, if you’re a qualified first-time buyer you can receive land transfer tax exemptions, allowing you to budget more money for the down payment instead. There’s plenty of programs out there that you can apply for, so call us today to find out what options are available to you!
What is a Bully Offer?
You may have heard of bully-offers if you’re looking at buying a house in Kelowna, and though
some people avoid these types of offers, it is a strategy that has success in this kind of market.
A bully offers is a way to get your offer reviewed before the property hits the MLS system, or
before the designated offer review date, if one is applicable. This tactic allows a buyer to
possibly beat any competition, who are otherwise waiting for the presentation date before
presenting their offer.
While these kinds of offers can give an unfair advantage, its aids buyers with “buyers fatigue”, many who have already presented multiple offers and lost out before. This strategy typically involves offers with few to no conditions, is usually above the listing price, and comes with a letter of pre-approval for, which can be enticing to any seller.
That being said, not every seller will accommodate a bully offer, and buyers must be sure they
want to take the risk as it can be seen as forceful and negative to some sellers. Rejection does
still occur. It is also risky to the buyer… when making this type of offer without conditions, you
may end up taking a financial loss that you were not expecting. It is important to know the pros
and cons of this strategy and proceed carefully with our help in this kind of situation.
Putting Your Best Foot Forward
The best thing any buyer can do in any kind of market is to come prepared. Do your research.
Make sure you have a list of wants and needs, know your desired neighbourhoods, what
amenities are important to you, how many bedrooms and bathrooms do you need, and
anything else that may affect your home search. If you have any questions, ask us first so we
can help you narrow down the perfect homes for you! And most importantly, ensure to have
pre-approval from a lender. If you haven’t talked to a mortgage broker yet, let us know! We
have a couple we love recommending!
If you have any questions, or would like our help moving forward, call us today! We know that
buying a house in Kelowna can be the biggest investment of your life, and we’re here to help you navigate the process, so you find a home you can enjoy today, and in your future.
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