The City of Nanaimo is generally an easy organization to get info from. Lots of knowledgeable staff to take your calls and their website has this great map that, if you can figure out how to use it and ask pertienent questions to staff at city hall, is often one of those bits of info that can really make a difference between being not quite sure and being quite sure about what’s going on regarding various rules, regulations and changes that concern a given property.

But now they have something new and it’s easier to get the info. Have a look.

Ryan Coffey

Ryan Coffey

9 Secrets to Selling Your House Fast in a Slow Market

Selling a house in a slow real estate market can be difficult. In times like these, it’s not enough to simply list your home and wait; you actually have to sell your home. No one really wants to sell anything when the market is bad, however, it’s not impossible to sell your house in these conditions. It just takes a positive attitude and a different kind of game plan.

Even though the market’s not favourable to sellers and widespread economic recovery may be months, even years off, there are a number of tactics available to increase the likelihood of a sale.

1. Know your market
One of the most important things you can do to get your house sold is to learn your market, the value of your property and your competition. Most sellers operate in the dark, simply offering the property for the price they want, without regard to what other homes have sold for and are currently selling for. Undervaluing or overpricing your home can cost you tens of thousands of dollars.

2. Price your home right
Prices are in constant flux. Overall, prices in the Nanaimo area have been fairly stable for a couple of years now, but there have been and will always continue to be some fluctuations within that market that are specific to types of homes, their locations and so on. So if you try to ask as much for your property as your neighbour got a year ago, you’re going to turn off potential buyers. Instead, price your home conservatively by looking at similar houses currently on the market. Also look at the homes that aren’t selling. Chances are those owners priced their homes too high. Therefore, pay attention to what has actually sold… recently. I’ll bet you anything that most of those sales were people who, just like you, wanted/needed/had to get as much as possible for their property but also understood the limits of what the market would bear.

If you really want to stimulate a sale, you should under price your property by just a little. Trimming the price by a few thousand dollars can generate more foot traffic and create a buzz.

3. Make your home presentable
Keep your house looking good at all times, repair things that are broken, and replace things that are rundown. Add a fresh coat of paint (neutral colors preferred), freshen up landscaping, trim trees, clean up clutter and remove personal items, so that prospective buyers can picture themselves in the home rather than seeing you there.

Consider using a professional home staging service. Your property must make a strong, positive impression. Staging a home is the cheapest way to make a house look different from your competition so it becomes the most memorable one that the buyer saw.

4. Market your home aggressively
In addition to using the multiple listing service, tell your friends, neighbours, co-workers, share the listing your Realtor has put together on facebook or wherever you can think of doing so. If I am your Realtor, I will be doing this anyway but having more of us doing it will only get more out of it. Word of mouth is a powerful thing.

5. Be flexible with showings
It only takes one Buyer to get your home sold. Don’t make your Realtor feel as though their request for a showing is an inconvenience.

6. Play up your home’s best features
If you have fireplaces, make sure that you have fires burning so that there is a beautiful warm glow and the sound of crackling. If you have a gourmet cook’s kitchen, have some great-smelling treats baking in the oven. Turn on soothing music. Set all lights and lamps if the home looks dark or feels heavy. Lighting is crucial. Do the same as if you were having a formal dinner party- the house will certainly sparkle.

These are just a few examples. Ask me for more.

7. Offer buyers incentives
A low price may be incentive enough for some buyers, but others might be holding out for something more. Maybe you have some sort of nice furniture or appliances but you are thinking of holding on to them or maybe not. Maybe offering the pool table and associated items during price negotiations while asking for a bit more money for the place will convince them to pay a bit more. And then you don’t have to move it or worry about where it will fit in the next place you live. Win win.

8. Offer flexible terms
Often, the best way to sell a home more quickly in a buyers market is to adjust the terms of the sale instead of the price. Sometimes people need a very short or a very long time between subject removal and possession in order to make it all work. If you can accomodate, or at very least show that you are trying to work with them a bit things are more likely to come together. This might create a way for you to ask for (and get) something in return from them

9. The first offer rule
If you get an offer within the first few weeks, the tendency is for sellers to try and hold out for a better offer. This is generally a mistake. The biggest fish usually bite first, so keep in mind that your first offer will often be your best.
Lastly, keep a positive attitude!

Ryan Coffey

When people list their home for sale, there is often a large and beautiful item that has sentimental value or is expensive, rare, unique, hard to find etc. that is sitting in plain view that adds appeal to the home. These items are typically things like beautiful new appliances, a fancy light fixture, a stained glass window or a wine rack for example. Something that never ceases to amaze me is how things like this where the value is measured in hundreds of dollars can potentially derail the negotiation over a property that is measured in hundreds of thousands of dollars.

You see, the dilemma is this: Such appealing items make the property as a whole more appealing as well. As our goal is to sell the property at the best price possible, rather than for ten or twenty thousand dollars less, this is something we simply need to do.

If the Seller doesn’t mind parting with it for the right price, then during negotiations one can say “Well, I really wanted to keep that item… but I’ll include it if you give me x amount more than you just offered.” This sort of thing is done quite often. However, beware that it may turn against you as once included items have been discussed, the buyer will more often than not insist on getting them even if the price you come to later is lower.

So, if you must keep it and you want to make sure that you don’t get caught up in extra drama, then I have a simple suggestion: Put a note on it. For example: “This stained glass window is not included in the sale of the property.” This way, people don’t have a chance to include the item in their dreams before you try to snatch it away. They are more likely to think that the stained glass window, or whatever, is a great thing to put in the house and plan to do it themselves…someday.

Perhaps the follwoing should be a seperate post, but it’s quite closely related so here’s the caveat: As a Seller you need to understand that if it is attached to the property by anything more than its own weight, (screws, nails, glue, or anything) then it is by default part of the property. Also, any kind of window covering is mentioned in the standard contract so curtains, blinds and the like must also be left behind unless it is specifically stateds in the contract that this is not the case.

Ryan Coffey

Ryan Coffey Renovating your home will increase its value and make it a nicer place for you to live. But many people don’t have the money to spend on expensive housing upgrades. Here is a few budget-friendly projects to add beauty, value and selling appeal to your home. 

1.Give your kitchen a facelift
The kitchen is the heart of any home, so spend a few hundred dollars to spice it up. You can replace the kitchen faucet set, add new cabinet door handles, and update old lighting fixtures. If you have a dark or small kitchen, make it look larger and brighter by using a lighter finish on the cabinets.

If the kitchen countertop is outdated, consider using a Laminate countertop. They are inexpensive and come in all types of colours and patterns, some of which resemble much more expensive solid surface materials, such as stone or tile.

2. Liven up the bathroom
Buy “expensive-looking” hardware for taps and showers and get a sophisticated new look without cleaning out your wallet. Like in the kitchen, soft lighting and warm colours here can go a long way in increasing home value. Add vases and plants as design elements and make sure vanity mirrors are at an accessible height for every member of the family.

If your bathroom requires any plumbing or electrical fixing, get a professional to do it.

3. Add a fresh coat of paint
New paint makes everything look clean and bright, and you can do it yourself relatively inexpensively on interior walls.

Paint with a neutral colour such as beige. It will make the house seem larger, and it will be inoffensive to buyers. And don’t forget the ceiling. Paint the trim a contrasting colour.

4. Add wood trim and cornicing
These are cheap and easy do it yourself, but can add tons of “WOW” factor to the look of your home. Simple ceiling trim and armchair railing are the easiest and most typical upgrades found in newer homes.

To make an even bolder statement, paint the walls a neutral, flat colour and paint the trim a high gloss white.

5. Consider your flooring options
If your home has hardwood floors covered with carpeting, consider restoring the original hardwood floors, particularly if the carpeting is old and worn.

If not, you can shampoo or steam clean your carpets, or use a dry cleaning system, which requires no water or steamer, and dries instantly while killing virtually all mold and bacteria. Apply according to the manufacturer?s instructions, and then vacuum. If all else fails, get a professional to do the carpets for you. You’d be surprised how much better your carpet will look after a good cleaning.

6. Enhance the lighting
Consider replacing the dining room lights with an eye-catching chandelier. Create a comfortable ambience with recessed lighting that is controlled with dimmer switches to provide the appropriate amount of light for different activities.

Use indirect lighting focused away from television and computer screens to reduce eyestrain.

7. Install modern light switches and outlets
Some of the new style switches can be easily installed using the wires already running to the old switches. Turn off the power to the room or entire house before doing any work. The new outlets look nice, and give the impression that the electrical wiring in the house is newer than it really is.

8. Create more storage
Extra storage is always a plus. You don’t need to renovate to add more storage space, you can create more space for free and without remodelling your home! Revamping your existing closets can do the job.

Many old houses lack closet space. If you have cramped storage areas, add do-it-yourself wire and laminate closet systems to bedrooms.

Make your closets serve a variety of purposes. Try adding a shelving unit to a clothes closet where you can store pantry goods and other items.

9. Reframe your front entry
The front door is the statement that you make in your house, and a front door in need of work gives a wrong first impression.

Refinish the front door with a new coat of paint. Replace that worn, flimsy little knob on your main entry door with a more substantial-looking handle-and-lock set. A nice, big piece of hardware signals newcomers that this is a solid home.

While you are preparing the door for the finish coat, be sure to check the weather stripping for damage. With soaring energy costs, adding some new weather stripping can quickly pay you back in utility savings.
Placing planters on either side of the front door will also enhance the image of your entry.

10. Landscape the front yard
A nicely mowed lawn, a few well-placed shrubs and a swept walkway make a great first impression. Get your green thumb on, install some new sod, plant a few evergreen shrubs, and give your front yard a good cleanup. This will draw attention to your home and change people’s perception of your home.

Today, there are dozens of choices of plant materials that can add colour and style to your front yard. Stop by your local landscaping centre, they’ll have dozens of ideas for you.
Ready to renovate but on a tight budget? Spend money on what can be seen versus what can’t be seen. Think new door handles, not new doors, and spiffed-up appliance fronts, not new appliances. Fix up the exterior first, then the interior.

If you put some of these tips in action, you will boost your home’s value and live happily ever after in your dream home. Enjoy! ]]> http://movetonanaimo.com/2011/05/19/10-tips-on-renovating-your-home-without-breaking-the-bank/feed/ 0 http://movetonanaimo.com/2011/03/23/spring-market/ http://movetonanaimo.com/2011/03/23/spring-market/#comments Wed, 23 Mar 2011 23:42:02 +0000 Ryan Coffey http://movetonanaimo.com/?p=772 The seasons have turned. It is now spring. The crocuses have been up for about a month now and daffodils have revealed themselves as well. Robins abound and the nicer weather has a way of making people feel good and do things like moving up in life.

The spring market means more Buyers, but more Sellers too. Realtors have a lot more on their plate and this is the time when we usually get a good indication of what the rest of the year will be like.

As I always say though, the best time to buy has more to do with your ability to afford payments than anything else. Market wise, there are only good times to buy and better times to buy as I have explained many times in other posts. Sellers, the same basic principles apply in this market as any other and keep in mind that although yoour property will look better now than it did in the winter, so will the other listings the Buyers are looking at. The specifics of how to make your particular place stand out is part of what you hire Realtors like me for.

Enjoy the better weather!

Ryan Coffey

Regardless of what I write on this topic, it will only be a summary of general principles. You see, in some ways houses are like people. They are all unique, some more than others, and certain qualities will make an individual more popular. The more of those qualities they have, the more popular they are.

Before we get into what those qualities that create the dollar value are, let me point out something that should probably go without saying: Different strokes for different folks. Not everyone wants the same thing and sometimes I see people really happy with a place that most people really wouldn’t be happy with. Some people really don’t mind living next to a busy road or in the crazy part of town. The good news for them is that they save a ton of money on their happiness!

Those of us who have more mainstream tastes will be trying to find a balance of the following list. Think of this list as ways to add value to your home as a Seller and some food for though on how to avoid paying for more than you need if you’re a Buyer:

• Space: (Inside and out) Not a lot to say about this one as I think it’s obvious.

• Number of Beds and Baths: In a house, less than three bedrooms is going to make quite a difference in desirability/cost.  Having a  second bathroom is a bonus for many and a necessity for others. If you’re a Buyer on a budget, think about what you really need now and in the future. You may find that it makes more sense to not have that extra bedroom and settle for something more modest or you might decide to rent it out for some help with your mortgage until you get more settled financially or your family grows by one.

• View:In Nanaimo, we have lots of ocean views and mountain views. Both add value, especially the ocean view. Even so, it is in such demand that properties, particularly in hilly North Nanaimo, are crowded together on the hill in such a way that they can all share a piece of the ocean view. A home with a sweeping unobstructed ocean view (no roofs, trees or powerlinesat all) will fetch a pretty penny. On the other end of the spectrum, a house with a view of the reclusive neighbours ever expanding junk collection… well let’s just say it’s not a selling feature.

• Age: People like new. The asking price of new properties, which is plus tax, reflect that. I do tell my Buyers that all properties look good when they’re new though and that it takes a little time to see what kind of quality it really has. This is why I’ll generally steer my buyers towards something that is a couple of years old so they can have the feeling of a new home without having to pay quite as much and know that it has been “tested” first.

• Condition: This one is also common sense really and is related to the last one but it of course also applies to older properties as well.  A home that is properly maintained will hold its value better than one that isn’t.  Less work to be done is great and even if it is dated with its shag carpet and wood paneling, if it has “good bones” it’s a decent house for someone who doesn’t mind doing the updating rather than paying more for a place that already has it done. At least being “move in ready” is a big plus even if dated. Most people don’t want to do work before they move in. Only the keeners who want to save some money and understand how to do it actually do this.

• Location: Also common sense. Actually so much so that it is my opinion that most people focus on this detail more than I think they should. But yes, an important factor. Being next to the train tracks or on the wrong side of them will drop that price considerably. Being on the waterfront or in a quiet spot that is still close to amenities will have that affect in the other direction.

• Quality/Style of finishing: When people talk about finishing they generally mean things like flooring, paint, trim, counters, doors, light fixtures and so on. Newer is almost always reacted to as nicer and this applies both inside and out. Sadly, a lot of do-it-yourselfers know this and not much more. So they try to fix up their home themselves hoping to add value but botch up the job and end up having the opposite effect. To those people I say, make sure your buddy who helps you do it actually has professional experience or hire someone who does. You see, nine times out of ten when a homeowner proudly tells me “I did this myself!” I’m thinking “Yeah, I can tell…”

• Light: Lots of light feels like lots of space. This is part of why when us Realtors say to use “light neutral colours” we mean some sort of off white. It lets people imagine their own stuff and ideas in there but it also makes for a sense of space. Lots of light also makes people feel happy and for the lack of a better term, “free”. Doubly so if it’s natural lighting. Those who are into gardening or energy efficiency like natural light even more so being south facing is a bonus for them.

• A Sense of Urgency: When a property is fairly fresh on the market it will, as a rule, attract better offers than one that has been sitting there for a while. This has everything to do with pricing it right in the first place in a way that will attract Realtors and their Buyers alike. A buyer will typically look at 8-15 places in person after having looked at hundreds online in the same price range with similar criteria before making an offer. They will usually have a plan B as well. If you’re selling your property it has to be number one on that list. Not second or third. Number one. And if it really is a good deal, a Realtor who brings some Buyers through  who don’t end up buying it for whatever reason will often bring through others buyers because they see value in the property the whole time knowing that it might get snatched up by some other Buyers.

Ryan Coffey

If you live in an area that is outside city limits, but still think of it as “Nanaimo” (ex. Cedar, Extension) you are in the Regional District of Nanaimo which is a different municipal entity.

For more information you can contact the City of Nanaimo directly at the number shown.

Ryan Coffey

The main reason why you should own real estate  is because your equity (the portion of the value which is yours and not the bank’s) will almost certainly grow over time. It’s not so much a question of “if” it will grow as it is a question of “how long”. This is the part which I think loses a lot of those new to the concept of real estate. It takes time. In a boom market it may only be a couple of years, but generally speaking it takes more like 5-10 for a substantial change in the property’s value. Time and time again I see listings for places that have recently sold where the selling price is nearly double what they paid for it ten years ago. If they’ve done more than just replace the roof and the hot water tank in that time, it may be more. It may not be too, as it is very case by case but my point is that such an increase in value is not unusual. Of course, it should be mentioned that we had a boom time for most of the 00′s but I still stand by my point overall as although from 1990 to 2000 we only saw a 50% increase in average sale price for houses in Nanaimo, we saw it triple from 1985 to 1995.

Here are the stats from the real estate board to support my arguement.

Nanaimo-single-family-stats-1982-2009

Just in case that little drop during last year’s slow market is a concern for you let me point out that prices have already begun to climb again. Have a look.

06-jun_10_nanaimo_graphstats

You see, the bubble never burst here. Although there was certainly a big slowdown in numbers of sales we didn’t see a huge drop in prices like so many people who get their info from mainstream media were led to believe. We weren’t inundated with foreclosures, nor were places selling at a fraction of the value they were a couple of years before. People just seem to need something to freak out over once in a while. Besides, real estate was on sale for a time there and those of you who were to scared to buy at the time but could have, missed out on a good opportunity. Don’t fret though. I always say that in terms of the market, there are good times to buy and better times to buy. You just need to figure out what is affordable to you by talking to a mortgage broker.

Ryan Coffey

This story is based on an amalgamation of some of the most common errors made by people hoping to sell their home which ultimately are detrimental to their efforts. Please read from the beginning of part one in order to understand the context of the following passage.

Ryan Coffey

The Big Player Realtor

The listing eventually expired and Roger and Shirley finally bit the bullet and they decided to pay full commission for the sale of the property. It had been six months since they first listed their home and they were sick of the whole thing. They weren‘t sure why it didn’t work with the discount Realtor, but they figured it was because that Realtor didn’t work very hard. (Which wasn’t quite the case.)

They listed the home with the big name Realtor who had clearly forgotten a lot of the details from the time they met to discuss the listing but he acted like they were old friends anyway. The Realtor could sense their frustration and suggested $309,000 for the property and the Pilkingtons agreed quite easily.

The Realtor truthfully (this time) said that this was a competitive price for this property. The first and most honest Realtor would have told them that this was because the market value had gone up since they had first decided to sell. He would have also said that the price would be even higher if they hadn’t messed around and left it on the market so long at an unrealistic price so that it now has a stigma. Most buyers who know it has been on the market so long think it hasn’t sold because there’s something wrong with it. But this was not mentioned by the big name Realtor.

Sure enough, a couple of days after it is listed the big name Realtor brings some buyers to the home. He keeps doing this every week or so and only a couple of times do any other Realtors come with their buyers. After about a month they get a call from the Realtor and he tells them that he has someone who wants to make an offer. He shows them the contract and some paperwork which is apparently “just a formality” or “no big deal” which allows him to represent both sides of the sale. The sale is negotiated and they finally sell their home for $302,000.

Was there perhaps a reason why they could have negotiated harder? Who knows. We do know that the Realtor was making twice the money off of this sale than he would by selling the home to buyers that weren’t his own though.

They feel that although they did not make what they originally hoped to, they were happy with their Realtor and would recommend him to their friends. After all, he did what they and their previous Realtor could not.

THE END

Moral of the story: Had they listened to the most honest Realtor, they would have probably been able to sell the home in about 4-6 weeks with a fraction of the time and effort. They would also have gotten a better price for the market at the time. Although they eventually listed it for more than the most honest Realtor had originally suggested, he would have suggested a higher price had he walked in at the time of the final listing. That is, he would have if they hadn’t taken it down the route they already had. Why? Because there is a stigma that is created around a property that sits on the market for quite some time. Many buyers are quick to dismiss a property like this because they fear that something may be wrong with it and that others know something bad about it that they don’t. However, should they decide to make an offer on such a property, the offers will be lower because they feel there is no competition for the property so they feel no need to try hard to get it. Therefore, the offers made tend to be less serious as do the overall negotiations coming from they buyer’s side.

In the 7 months or so it took them to sell the property, property values went up 5% so their property which was valued at essentially 300k would have gone up to 315k. The properties they were looking at buying afterwards had gone from 400k to 420k. So, using the numbers from the story but simplfiying the math slighly for the sake of illustration, they would have had to pay 100k more for the next place had they listed it at the right price with the most honest Realtor from the beginning. Now they will have to pay 111k more for that kind of place. They have cost themselves $11,000 because they thought they could outsmart the system and save money.  And remember, this sort of situation is not something I have just seen a few times. It’s actually quite common. The details are different each time but the overall pattern is the same.

The irony is that this sort of thing seems to happen to intelligent people more than not so intelligent people. People who know they’re smart are more likely to try a hand at outsmarting the system. And yes, sometimes it does work but speaking as a professional who has seen all sorts of people use all sorts of approaches… it’s a rare thing. When you consider how much money is on the line, it’s just not worth it.

The reality of lawsuits that are more likely to come up as a result of trying to cut corners were not mentioned in this story mainly because they are complex to explain. Each sale is different and there are hundreds, if not thousands of things to watch out for. Helping you stay away from them is a big part of what a good Realtor does.

Ultimately, Roger and Shirley thought they could outsmart and beat the system. In the end, the system outsmart and beat them and whether the buyer has gotten themselves a pretty good deal. The real estate system we use is after all a system that has evolved over centuries and not something some people just made up one day. It has and will continue to change, but at any time it exists the way it does because it is the best way for so many people to do what they need to do. Chances are, that if you want to do a real estate transaction that this system will work well for you if you use it properly. An honest hard working Realtor is your best ally and guide to this complex and ever changing system. That’s what we’re here for. You may just see us have you sign some papers, take some photos and put up a sign but I promise you that this is just the tip of the iceberg.

Ryan Coffey

Discount Realtor

After these two mishaps and three months of working hard to peddle their home to the masses with no (happy) results while trying to keep it spotless and presentable on top of both working full time, Roger and Shirley decided that it was time to hire a professional. After all, who knows what other unanticipated problems lie between them and a successful sale.

The discount Realtor, the third one if you were counting, came and took some photos and had the Pilkingtons fill out some paperwork. In a few days they saw the listing on the realtor.ca website and it looked pretty good. They felt much better now that they had someone to guide them through the process.

What no one told them is that paying half the commission for the real estate services means that half as much money is paid to the buyer’s agent BEFORE deductions and other business costs. At the end of the various deductions to the company, taxes and expenses most Realtors would be working for about the same as minimum wage or maybe less were they to sell this property to their Buyers. The Buyer’s agent has three choices: Work their stressful job with unpredictable hours for nearly free, refuse to show the property (and risk losing the client) or tell the buyer that they will have to kick in the extra comission in order to make the sale a part of the sustainable business model for that Realtor (and risk losing the client).

It never occured to Roger and Shirley that having the sign up and the listing on the internet would draw buyers to their Realtor. Nor did it occur to them that it would be a more sustainable business plan for that Realtor to sell other Realtor’s listing for full commission and leave up the for sale sign and listing of the Pilkington’s property in hopes of attracting more of such business.

Again days turned into weeks and weeks turned into months. A few showings happened here and there but there was no serious interest.

Click here for part 5, the conclusion.