The residential real estate market has always gone through various cycles that are affected by numerous factors. It is amazing though that the old axiom “what goes around, comes around” always seems to be true.

Through the recently ended and prolonged period of a residential market characterized by a relatively low supply coupled with low interest rates there were very few Agreements of Purchase and Sale (APS) that contained negotiated conditions in favour of Buyers. The market of multi-offered bids demanded that the APS was basically limited to descriptions of the parties and the property, and thus limiting any negotiations to the purchase price, the deposit, and the completion date. Conditions for financing and inspection would not be considered let alone accepted. Even conditions for Status Certificate reviews for re-sale condominiums were not acceptable which forced lawyers to do rushed reviews prior to the submission of an unconditional APS.

Times have now changed. The market has changed again as it inevitably does. Multi-offer bids are rare and certainly not expected. Accordingly, real estate agents now must discover or re-discover the art of negotiating conditions to get properties under contract. Newer agents that have only been working during the multi-offer bid market are discovering the hard way that they now must adjust and learn a whole new level of negotiating to get a deal done. More seasoned agents are drawing on their past experience in order to engage in the back-and-forth negotiations required.

These days it is not advisable to summarily dismiss any offer as there might not be another offer for a considerable amount of time. Reasonable conditions for reasonable periods of time makes a lot of sense in today’s market. We have even seen the comeback of the condition upon the Buyer selling the Buyer’s current property.

We have been helping many agents through this adjustment process with strategies and drafting, and we expect to continue to do so for the foreseeable future. Please do not hesitate to reach out to us for assistance.