Sellers:
Price: The most important factor when selling your home is the Price. Naturally, marketing does play into it, but the Price is the single most important factor. Pricing your home is not something that can be done by an amateur. It takes solid market knowledge based on knowing the homes with which your home is in competition, what the trends are and what the sales have been.
A 'Property Tax Assessment' is not an accurate tool in determining value. Unfortunately, tax assessments are merely a taxation device. It is not cost efficient to provide every BC property owner with an accurate, current market appraisal on a yearly basis.
A Property Tax Assessor rarely inspects very few homes on the inside within a 25-year period and unfortunately there is no consistent deficiency. You cannot say, "They are low by 10%, or they are high by 15%," because some are high, some are accurate, and some are low. The only consistent feature is that they are all out of date, with the assessed value always being a minimum of six months old (Property Tax Assessments are from July of the previous year).
There is no Government Property Tax Assessor living in the Powell River area. The Assessors are based on Vancouver Island and service us out of the Courtenay office.
An 'Appraisal' is not to be confused with a 'Property Tax Assessment. An appraisal is a written document, showing the value of the property generally based on either a 'Cost Approach' or a 'Comparative Approach' to three past sales of the best recent comparables available. It is generally only valid for a 90-day period. It does not take current, competing properties into consideration.
As an example, if you have a condo in a block of condo's, which are all very similar, and 50% of them are currently for sale, there will be strong competition and downward pressure on the value - an appraisal will not reflect that. Similarly, if you are the only condo available in a sought-out building, there will be upward pressure and, again, an appraisal will not reflect this.
The Real Estate Market is exactly that, a "Market", just like the stock market, the bond market, the commodities' market etc. I cannot emphasis enough the need for professional guidance.
Marketing:
To get the maximum dollar for your home, you need the maximum exposure. You need to be on multiple websites; that is, websites that come up when Powell River Real Estate is searched. You need good signage; you need to be in the local papers (for those who do not use the internet), and you need to be on www.realtor.ca which is nationwide. Over 50% of the viewers come from out of our area, and you want to reach them. That takes money, a great deal of it. Money that is included in my commissions, which I do not collect until your home, is SOLD.
Condition of Your Home:
Yes, cleanliness does count, and, No, Buyers cannot see past it. All those programs on TV are correct. Get rid of the clutter. Have your garage sale before you sell; take other items to 'Goodwill', and have your kids take what they want (or their own stuff back). You will appreciate all your hard work not only in the price you receive, but also in what work it saves you when you are moving. Personal items can remain in the home as they create a comfortable atmosphere. Do not make it so sterile that it looks as if no one lives there.
Smells are very important too. If there is a musty smell, determine the cause. If you have pets, make sure the kitty litter box is clean and ensure the dog blanket is taken outside during viewings. Don't try to hide odours with plug-in deodorizers; they over power your senses and raise suspicion. For a clean smell use candles instead. Do not cook fish the day of a showing or any other food which has a strong odour. Baking or pleasant food odours, especially for showings around dinnertime, can be very appealing. They will want to buy your home just to stay for supper!
Ask your Realtor what you need to do to help present your home, and let them know you will not be insulted with their answer. People view homes with their senses, so sight, smell, hearing, and even touch should be taken into consideration. Do not leave the music on, unless it is very low and just instrumental.
Most importantly, be honest with yourself. If there is no hope that you will complete the task, then let the Realtor know, and they will price accordingly. And last but not least, if you can afford it, hire help to assist you. It is money well spent, and your Realtor will usually have people that they can refer to you.
Listing And Selling Your Home - The Process
Enlist the help of a good, recommended Realtor. If you do not already have a trusted relationship with a Realtor, it does not hurt to shop around and interview up to three Realtors. Hear not only what they value your home at and why, but also what they have to offer in marketing and service. You want someone who is a full-time professional and one whom you can trust. And remember - look for someone with whom you feel you will have an enjoyable working relationship. This is a stressful time so you want to do all that you can to alleviate that stress!
When your home no longer fully meets your needs, whether it is location, size, condition etc., give me a call. I will start out with assessing the value of your home and advising you of market conditions. If I can see how value can be increased, I will advise you and make helpful suggestions.
The time to sell your home is when you want to. Not the myth of the Spring Market. Your home will have a lot less competition on the market if it is in the Autumn or Winter Market. The only exception to this rule, and only sometimes, is recreational property or waterfront property.
After the value has been determined, commissions are then negotiated. Generally, I ask between 6% or 7% on the first $100,000 and 3% or 3.5% on the balance. Commissions are determined by the access to the home, and the marketing that is expected.
It is my job to measure your home and obtain related documents (title search, plot plans, survey sketch, service hook-ups, assessment, registered right of ways, easements, restrictive covenants, etc.).
I also sit down with you and complete a full Property Disclosure Statement on the home. I believe it is, "Better to be Safe, than to be Sued".
Your home will be placed on our Real Estate Board's Multiple Listing Service, and a copy of the listing will be automatically made available to all local Realtors and any Purchasers who are set up to receive any Realtors' Buyer's automatic updates with your home's criteria.
M. L. S. tour is on Wednesday morning. This introduces your home, in a personal way, to the local Realtors. Don't worry; those Realtors will be paid for selling your home out of the commissions charged.
The good news is, I don't get paid, or expect any money from you, until my job is done and the goal of selling your home is accomplished. Simply put, I get my money, when you get yours!
Once Listed:
Once your home is listed the selling process begins. I will always allow you notice before I, or one of the local Realtors, presents your home. Unless you agree otherwise, 24 hours notice is always delivered, and it will be one of us setting the appointment for qualified Buyers only.
After the showing is complete, the Realtor will leave a card behind, letting you know that you can now come in and relax. I try to do most of our showings while you are at work or on an appointment. That way you can do your job while I do mine.
I will always report back to you on how the showing went and provide any feedback that I have.
Once an offer to purchase is received, I will then sit down with you and negotiate it out, until it meets your needs concerning price, terms, appliances, subjects and dates. Once the contract is agreed upon and signed by both parties, the deposit will be held in our trust account, and I will work through the removal of the individual subjects.
Private Sales:
Private Sales always amazes us. Most people wouldn't even consider cutting their own hair (and I can generally spot those that do). I strongly recommend against selling your home privately. You rarely save on the commissions, and you are often costing yourself time and money. Let me explain.
Not only do you need professional assistance in pricing and marketing your home, but also in showing your home - because Buyers would rather, honestly, Not Have You At Home when they view your property. They are much more comfortable that way. Remember, Buyers do not pay the commissions - the Sellers do, so the Buyers have nothing to benefit from buying privately.
Also Buyers have one interest in mind - theirs, not yours. When Buyers approach you, they are trying to get in first before your home hits the market so there will be no competition, no Realtors (i.e. professional advice) and no commissions payable. Then, often, the first thing they will do is subtract the commission amount (which they will often inflate) from the asking price.
Over-Pricing your Home:
"I can always come down". Yes, you can. But why would you do that? Why would you put yourself through the hassle of having your home on the market, "lookie-loos" through it, and allowing it to grow stale, just so you can bring the price down eight weeks later?
A property is always most exciting when it first hits the market. If it sits, home shoppers will dismiss it and often will not become interested again until the property hits the "Sales" rack, and that is not a place you really want to be.
Home Buyers are the same as all shoppers. They have determined a price range, and they are looking for the best value in that range.
When Sellers Become Buyers:
Depending upon the circumstances, you may be selling your home to purchase another home. The question is always, "Do I buy or sell first?", and, "How do I juggle the transition?" There is no easy answer to this, and it does depend on the circumstances. Give me a call, and I will gladly help assess your situation.
I hope this helps answer a few of your questions. I know I haven't answered all of them, but I welcome hearing from you, and I will do my best to serve you well.
