More listings means more choice for Buyers

This autumn has seen an increase in the available listings in Vancouver - in fact there are more homes on the market right now then there have been in a couple years. This gives buyers more choice, and causes sellers to be a bit more competitive with their pricing and terms.

This added benefit for buyers, combined with the low interest rates (still falling!) is making the market very friendly to get into right now. The upcoming holidays will likely see a drop in the listings again, so if you have been thinking about buying give me a call today so we can take advantage of this conducive market!

Increasing Density in Vancouver

Please check out this link:
http://vancouver.ca/ctyclerk/councillors/mayor/announcements/2006/EcoDensity.pdf

As I've mentioned in previous posts, Vancouver is a growing city. While growth can be a great benefit to a city, there are certain issues that arise if the increased need for housing is not met with a well thought out approach. The increasing unaffordability of housing we are experiencing in Vancouver is one of these issues; likely the issue that currently affects us the most.

Another issue, however, is one much more serious and that perhaps does not quite affect our day to day lives at this moment, is the environmental impact that urban sprawl can create. The increase of land required (land generally moved away from food production, forests and parks), the increase of fossil fuels needed simply to get to and from work, and the increasing anonymity of the city are simple truths of an unplanned expansion.

Our Mayor has made a commitment to combating these issues by increasing density in the city. The idea is that if we can plan a tighter (spacially and neighbourly) knit community, our environmental footprint will be decreased, homes will become more affordable, and the quality of living will improve.

We have a real opportunity to affect the course of development by involving ourselves in this process. They are interested in everyone's opinion and ideas for making our city outstanding. I'll be sure to post meeting schedules and ways you can become involved on this blog, so if you feel this is of value - please come out and be part of the solution.

Stay dry - and have fun...

Want to sell quickly in the current market?
Part 4 - Showing your home's best side

So you've priced and marketed your home, and now you're ready to show it off. Some folks will simply tidy up their home and walk away, but there are many ways to give your home an edge in viewings. As with marketing, most homes will not need every one of the following ideas to be used, but it's important to be open to the possibilities - the more effort you put in, the better the final outcome.

It's important to really remember that buyers are most likely looking for their next home. If they walk in and there is little to no work to be done in order for it to feel like home to them, they are much more likely to buy. Also note that most folks will know within one minute of walking into a place, if they will consider it at all. First impressions are crucial.

Cleaning: I'm not just talking about having the dishes out of the sink! It's a really good idea to get a deep clean done before showings. Have the carpets and drapes shampooed, wash out the tubs, scrub the floors, wash the windows, dust the baseboards. The cleaner the better. If you don't have time (or inclination!) to do this, there are many cleaning services available for a reasonable cost.

De-Clutter: This is especially important in small condos. Take down some of your knick-knacks and box them up. In fact, take away any object that draws attention - you want them looking at the house, and not your personal things. If you have clothing, art supplies, books etc tumbling out of your closets (or even just filling them), remove somewhere between 25% to 50% of it, box it up and get it out of sight. The idea is for the buyers to actually be able to see the storage space, as opposed to what you're storing. It also creates the illusion of there being more of it. Consider it the beginning of your packing.

Front Door: Remember what I said about the first minute being the most important? A great front door is essential for that reason. Make sure the door doesn't stick, and that the handle works properly. If it's an older door, consider having it painted or replaced.

Exterior: The key, again, is to make it feel like home. If it needs it, consider a fresh coat of paint. It's a small investment, considering how much better your home will show. Grab some blooming flowers from a garden shop and plant them in the front yard or garden. Mow the lawn, do a little landscaping - the better it looks, the better price it'll fetch.

Interior: A fresh coat of paint on the inside can help a lot too. Examine old fixtures, leaky faucets, grout, carpet etc to see if they need to be repaired or replaced before showing.

Odor Control: We all love our pets, and often we don't even realize if our home has begun to smell like them. Get an objective opinion, and if there is a scent, be sure to air it out, cover it up, or whatever it takes to remove it. Even if your home has a neutral scent, it's not a bad idea to add something homey to the air. Baked goods in the oven are always a good bet. Be sure not to ever use anything too perfumey, for many people that's worse than a pet smell.

Furniture: We can't all be interior designers. With that in mind, I'd say many of us arrange our furniture a certain way out of necessity or what suits us best - not necessarily what would show off the home. Removing one chair, or moving one sofa could be all it takes to open up a floor plan, or highlight a window, fireplace or other feature, so it's always good to be open to minor changes.
Bringing in an interior designer for a consultation can be a good way to get feedback.

If your home is vacant, it's a very good idea to consider some level of home staging. Home staging is taking off in Vancouver right now, and the services have a huge range. What they do is send in a designer who then rents furniture, art, cutlery (whatever you need) to make the place seem more homey. It's is especially vital to use staging in small or awkward spaces where people might not know quite what to do with it if they saw it bare.

Art: Not everyone has the same taste in art - it's a very good idea to take down anything that might be construed as offensive, or too artistically challenging (if you have it, you'll know what I mean ;) ), to the general public and replace it with something tamer.

In the end, all these concepts are optional. As long as you're flexible on price, your home will sell eventually. These pointers will simply increase the perceived value of your home, and therefore increase the price you'll get for it. As with marketing there is truly an endless list of things that can be done to get your home ready for showing, so it's always best to be flexible, and keep an eye out for new ideas.

So that's the end of my "Selling quickly in the current market" four parter. If you have any questions, please, do not hesitate to contact me.

Want to sell quickly in the current market?
Part 3 - Cross Media Advertising

Proper marketing is essential in selling any product, and a home is no exception. The better your visibility in the market, the more likely you are to interest a larger number of buyers. I feel that to reach the greatest audience, a Realtor(R) needs to be open to marketing in as many ways as necessary. Not every home will need such widespread marketing, but some can use that extra touch. In this entry, I'm going to run through a number of marketing devices I personally use to sell a home, and detail exactly how they work.

MLS Online: The MLS website is by far the most widely used marketing tool available to Realtors(R). Most buyers and their agents use MLS to find their next home, and many homes sell using only MLS for their marketing. The important aspect to remember about MLS is that any tool is only as good as the craftsman wielding it. Listings with no photos, incomplete information or poor descriptions can get passed over very easily when a buyer is looking at a number of places. It's crucial to have those great pictures highlighting the homes features, as much information as possible, and a tantalizing description if you want your home to stand out.

Front Yard "For Sale" Sign: The front yard sign is another essential marketing device. When folks decide to look for a new home, many will drive around the neighbourhood they are interested in searching for such signs. It also makes your home much easier to find if someone spotted it on MLS and decided to drive by to take a look. The sign provides exposure in your immediate area, and instantly gives interested buyers my name and phone number, so they are less likely to trouble you personally with any questions.

Open Houses: An open house is an excellent way to have a number of buyers come through in a short amount of time. It also creates a buzz, as even more signs go up in the neighbourhood (pointing the way to the open house), and there are generally a number of people viewing the home at once. It can create an urgency for the buyers; "If I don't decide now, one of these people will buy it first", and it's also a more casual showing so folks can just show up within the time frame as opposed to making a formal appointment (this is especially great for busy buyers, or people who are not yet working with a Realtor(R)).

Print Materials: Another way to make your home stand out in the market is to have custom made information sheets. Many realtors only use the standard print out from MLS to give information about your home to your potential buyers, but I custom make my listing sheets and have them printed them in full colour. This extra effort stands out to buyers (and they're less likely to lose the information!).

Other print materials that can be employed are flyers and open house invitations, which I hand out in your neighbourhood to raise awareness of the listing locally. Again, these should be custom made and printed in full colour.

Online Classified Ads: Newspaper classifieds are actually quite a bit less effective than many might think, but online classifieds, such as Craig's List, can be very effective. They have a huge readership, and their real estate section is widely known. Many folks I know say after MLS, Craig's List is where they'd next search for listings.

There are really endless possibilities when it comes to marketing your home, and more are popping up every day. It's important to have a Realtor(R) who will keep an eye out for fresh new ideas and really use those tools to your advantage.

Please watch for the final installment of this 4 part series, "Showing your home's best side".

Want to sell quickly in the current market?
Part 2 - Competitive Pricing

The key to selling quickly in any market is having your product stand out. In the current Vancouver housing market, one of the best ways to do so is to have a competitive price on your home.

Now I should take a quick moment here and clarify what I mean by "selling quickly". In the bustling Vancouver market the most activity around a listing occurs in the first two weeks. After that, interest can wain, and folks start to ask, "Why hasn't it sold? Is something wrong with it?". Lower offers can start coming in, and while it is certainly still possible to get the full price, after about a month it can be a good idea to consider changing something, often price, to get people interested again. By "selling quickly" I mean avoiding this process, and getting a done deal when people are excited and the listing is fresh. This is the best, often the only, time buyers will start bidding against each other, elevating the price you'll get for your home.

So what do I mean by a competitive price? The formula I've always used is 'a little more, a little less'. Essentially what it means is, we'll take a look at a few homes that are comparable to yours (in the same neighbourhood, with roughly the same square footage, number of bedrooms, lot size etc) that have sold recently. The value of homes in Vancouver is still steadily increasing, so we say the price will be 'a little more' than what those sold for. Then we would take a look at some homes currently on the market, again ones that are comparable to yours, and see what they are priced at. To make your home stand out against this competition, we say the price should be 'a little less' than what's currently out there. Hitting a number somewhere between these two prices will give you a competitive price, and a competitive listing.

This is probably the most important advantage we can give your home. It generates the most interest, as your home then appears to have better value for a buyer looking at all their options. More people are then interested and there is a better chance you'll have several offers to look at, perhaps even a few above asking price!

Watch for my next entry on "Cross Media Marketing" later this week.

Want to sell quickly in the current market?
Part 1 - Introduction

Earlier this year, the market in Vancouver was such that a home was simply listed, tossed onto MLS, and after one open house a bidding war would erupt over it. Although the market is still very strong (watch for my market report next week), it seems buyers are taking their time a little more now, really comparing homes and not frantically trying to buy just anything.

What this means for homeowners (and the Realtors(R) helping them) is that it's going to take a little extra something if you want to get your home sold quickly. It won't take much, the market is still very strong and value is value, but a there are a few tips you can use to make your home really stand out.

This week I'll be discussing 3 main subjects: Pricing, Marketing and Showing. When partnering with a homeowner to sell their home, I use each of these areas to increase the number of potential buyers, and to elevate the property's value in their eyes. The more people who fall in love with your home, the more likely we are to not only sell quickly, but to get a very good price as well.

Stay tuned for my entry on Competitive Pricing tomorrow.

Successful Condominium Living

Buying a condominium is a good choice for many people; it offers an affordable housing option for first-time buyers, low maintenance requirements and access to amenities such as a fitness facility or a pool. Condominiums are often built in densely populated, urban areas giving owners the convenience of being close to work, shopping and cultural events. However, it is also important to be aware of certain aspects of condominium living.

First, it is essential to understand that the term “condominium” actually refers to the form of legal ownership rather than the type of building. A condominium can be a high-rise or a low-rise building, a townhouse complex, or even houses. Condominiums are made up of units and common areas. Ownership of the unit is basically limited to the space within the walls. The unit boundary can be at the backside of the interior drywall of the unit’s dividing walls or at the centre line of the unit’s walls. The boundaries of your condominium unit are an important consideration at the time of purchase— particularly if you are planning to do renovations. You may find that there are restrictions regarding major renovations such as installing new flooring, cupboards, plumbing, recessed lighting, etc. The unit typically includes any equipment, systems, finishes, etc. that are contained in the individual unit. Ownership of common areas such as hallways, elevators, and gardens is shared amongst the unit owners, as is the cost of maintenance.

The operation of the condominium is governed by provincial or territorial legislation and the condominium corporation's own declaration, by-laws and rules. Once a condominium corporation has been established, a Board of Directors, elected by, and generally made up of, the individual condominium owners, takes responsibility for the management of the corporation's business affairs. Each unit owner has voting rights at meetings. Your voting rights will generally be in proportion to your unit factor, according to the Canadian Mortgage and Housing Corporation.

Board meetings are opportunities to discuss how maintenance fees are being allocated and offer your input into new rules and regulations. It is wise to participate in these meetings or at the very least, read over a copy of the minutes of the meetings thoroughly. Keeping up to date on the rules can also help you avoid tension with your neighbours and possibly save you from incurring fines and other expenses.

Sometimes changes can come at the most inopportune time—like when you’re on an extended vacation. If, for example, your Board of Directors decides to pressure wash the garage and needs all the cars to be removed, you may return to find your car very dirty or worse, towed and collecting fines at your local tow-truck lot. In these cases, it’s important to plan ahead and give a representative on the Board a way to contact you on vacation as well as the name and number of a local contact who can act on your behalf.

The low-maintenance lifestyle and amenities of condominium living are very appealing. No more mowing the grass or taking the garbage out to the curb. The cost of such services is built into a monthly maintenance fee. Usually, the Board will allocate a certain percentage of that fee to be put aside for emergencies as well as for regular upkeep (e.g., replacing the roof and pool heaters). Despite this cushion of extra funds, the cost of some projects may result in additional ‘assessments’ for condominium owners. Ideally, owners should be prepared for this possibility and manage their financial planning accordingly.

Although condominiums can have a long list of rules and regulations, most of them were created to ensure that all of the residents are able to enjoy a certain level of comfort, privacy and security. Keeping abreast of changes will also help you avoid tension with neighbours and unexpected problems and charges. For some people, that’s a small price to pay for all of the benefits that condominium living can offer.

What is making the Vancouver market so strong?

The Vancouver market has been booming for the last few years. Currently, as prices reach the peak of affordibility, the market is leveling off a bit - much to the relief of prospective buyers. In the next year, we'll likely not be seeing the double digit appreciation levels that have been the norm in recent past, but the prices are still climbing steadily and don't show any signs of slowing. In this entry, I'll cover several factors of the demand for housing that has made the market strong, and that will likely keep it heading in the right direction.

Vancouver is a relatively young world class city. We are possibly the most diverse city in one of the safest countries in the world. (And, as any true Vancouverite will tell you, we have the best weather, food and lifestyles in the whole country too) Furthermore, we were voted the #1 city in the world to live in by the Economist this year. People from all over the country and world are flocking here, and they all need somewhere to live. The more demand there is for any product, the more expensive that product will become - homes are no exception.

But it's not just those coming here that suddenly need to buy. BC's current population has become much more interested in purchasing homes in the last few years. With the low interest rates, and the newer 5% or 0% down mortgage options, purchasing has become much more accessible. BC also currently has one of the lowest unemployment rates of all time, currently down at about 3%, so more folks simply have the money to invest.

The low unemployment rate is driving more companies in our booming economy to import more employees into Canada to fill their positions, so it takes us back to the immigration point. I read an article recently stating that one company in Whistler, before this year had only ever needed to hire about 100 people from overseas to make it through a winter. This year they had to hire 3 times that amount, just to fill vital positions.

There is currently no indication that interest rates will be going up any time soon, many financial institutions actually foresee rates dipping a it in the near future. BC's industries are growing stronger by the day - there's little chance our unemployment rates will change drastically any time soon. Vancouver will continue to grow, and be a great place to live - which will only be highlited by the 2010 Olympics. (Stay tuned for my article next week on how the Olympics affected the Real Estate market in Sydney, Australia).

It is for these reasons that I firmly believe that based on the rising demand for housing alone, the Vancouver market will remain strong and continue growing for several years to come. It's still a good time to buy and invest, and that won't be changing any time soon.

Please feel free to contact me with any questions.

Canadian interest rates are relatively low right now, and the experts say they may even drop more in the next months. This means that now is the perfect time to nail down an interest rate if you are planning to buy in the near future.

When you are pre-approved for a mortgage, your Mortgage Broker can reserve an interest rate for you for up to 120 days. If the rates go up in that time, you keep your better figure as long as you purchase a home before your time limit runs out. If the rates drop, you get to keep the lower rate. It's a win win situation!

If you are not planning on buying in the near future, keep this concept in mind. A little financial forecasting can save you a lot of money, and perhaps even increase the amount you'll be able to borrow.