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• Comox Valley Home Foreclosures

Comox Valley homes foreclosures are, unfortunately, a part of the Comox Valley Real Estate market. A home foreclosure is the legal process by which a mortgagee (lender) or other lien holder extinguishes the mortgager’s (borrower’s) right of redemption (the capacity to redeem the property and pay the loan). The borrower’s legal (contractual) right of redemption is already extinguished because the borrower has defaulted. Property foreclosure actions are commenced in British Columbia with a document called a petition. This action is normally preceded by a demand letter from the lender that gives the borrower a short period to pay out the mortgage or face foreclosure. The petition is followed by the first order of the court – the Order Nisi, which, among other things, establishes the amount required and time given to the borrower to redeem the mortgage.

While there are a number of remedies available for a home foreclosure, one of them involves a foreclosed property listed for sale as a court-ordered sale. This means that the sale of the property is carried out under supervision of the court and that the court must approve the sale. The property is appraised and then generally listed for sale with a real estate firm. Unlike most other Comox Valley homes for sale, a foreclosed home is advertised “as is, where is”. This means that prospective purchasers are responsible for undertaking the investigations necessary to satisfy themselves concerning the condition of the property. As well, no Property Disclosure Statement will be made available.

On any given day there are a number of foreclosures listed among the some home foreclosures in Courtenay. Should this cause concern? As with other Comox Valley realty listings, buyer’s should ensure that they gather as much information as they can on the property with the assistance of professionals in the respective areas so that they can be confident that they understand what they are considering buying and that their will be no surprises in the future. Even though the lender will not make any representations or give any warranties concerning the condition of the property, the listing real estate agent still has an obligation to disclose known latent defects of the property and that the disclosure be made in writing prior to acceptance of an offer (Section 58 of the BC Real Estate Council rules).

A few other things are different with home foreclosures. First, offers must provide for the lender to obtain court approval of the offer. Second, offers will have a Schedule A attached that comprises terms that replace, modify, and where applicable, override the Standard Contract of purchase and sale. Third, the completion date of an offer is based on a period of time after court approval (for example, two weeks). Fourth, when an offer is scheduled to be considered in court, other interested buyers may show up in court and present offers.

This short blog does not cover all aspects of a Comox Valley home foreclosure and it is not intended as legal advice – always consult a lawyer for legal advice. The blog is meant as informational so that readers will gain a basic sense that foreclosures are different than other real estate listings and sales. Whether or not they are viewed as a good or bad deal by prospective purchasers will depend on the individual circumstances at the time. Are you considering buying a Comox Valley home foreclosure? Contact Brett Cairns of RE/MAX Ocean Pacific Realty to find out how.

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• Comox Valley Real Estate Agency

Comox Valley real estate agency is a phrase that describes the professional relationship that exists between a realtor and their real estate client. Many years ago when I was a first time home buyer I naively thought that our real estate agent was working for us, and that they were looking after our needs. I was wrong. Back then (in Ontario) she was actually working for the home seller. We ended up paying more for the house than we should have, and we discovered a number of things wrong with the house months after the purchase that cost us a significant amount of money to have fixed. Looking back at my real estate experiences as a client, it is now clear to me that not all REALTORS® placed our real estate needs as their top priority. Perhaps this was, at least in part, because of the type of relationships into which they were allowed to enter. Over the years we found that these relationships varied between provinces.
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Any Comox Valley realtor ® (and the brokerages that they are licensed to work through) currently works within a legal relationship called “agency”. You can be represented within a “single agency” relationship as a Seller or a Buyer, or you can be represented within a “dual agency” relationship. You can also work with a Realtor when there is “no agency” relationship. In simple terms, you are considered to be a client in an agency relationship and more of a customer when there is no agency relationship. Realtors have specific duties to you when you are a client.

All of these terms and the relationships with which they are affiliated are explained in the brochure called “Working with a REALTOR®” published by the British Columbia Real Estate Association. If you do not fully understand them, ask your REALTOR® to explain them so that you do not have any surprises later in the relationship when a particular circumstance necessitates a change in the relationship. As the old adage states “forewarned is forearmed”.

We, as Comox Valley real estate agents, have an obligation to explain these relationships to you at the earliest opportunity. This is interpreted to mean prior to us providing professional services to you such as showing you a home if you are a buyer. REALTORS® can provide you with an array of professional services but some limitations are placed on us according to the type of legal relationship within which we are working. Ask us questions to make sure you are getting the information that you need to buy or sell your home or property with confidence, and with no surprises.

During my first 35-year professional career I moved my family 18 times all across North America. During these moves I gained significant experience as a real estate client. Life experience is a great teacher. As a committed lifelong learner, I believe that it is extremely important to identify lessons from the past so that they can be effectively applied to the future. As Confucius once said “Success depends upon previous preparation, and without such preparation there is sure to be failure.” As a REALTOR®, I am putting my life experiences as a real estate client to work so that I can better serve the real estate needs of my own clients. Do you need a Comox Valley realtor who will go Above & Beyond to meet your real estate needs? Contact Brett Cairns of RE/MAX Ocean Pacific Realty and experience his real estate service for yourself.

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• Comox Valley Real Estate Market Statistics by the Numbers

Whether you are buying or selling a home or property in the Comox Valley real estate market, it is important to understand and keep track of the market to make informed decisions on your most important investment. The Vancouver Island Real Estate Board (VIREB) provides some great Comox Valley real estate market statistics that can be used as part of your decision-making process.

Comox Valley real estate market statistics are maintained for 12 distinct areas of VIREB. For real estate purposes, the City of Courtenay is divided into Courtenay City, Courtenay East, Courtenay West, Courtenay South (an area that includes Royston), Courtenay North and Crown Isle. Additional real estate areas include the Comox Peninsula, the Town of Comox, the Village of Cumberland, Mount Washington, the area comprising Merville and Black Creek (including the Saratoga Beach area), and the area comprising Union Bay and Fanny Bay (an area that extends south to Mud Bay). Why is it important to know this? For statistics to be meaningful and relevant to you, you need to know which area is similar to the one that you are currently living in, or to where you are planning to move.

For example, last year the average selling price in Crown Isle was the highest of these areas followed closely by Mount Washington. However, in neither of these two ares were homes located that sold for the highest prices. Homes that sold for the highest prices in the Comox Valley last year were located in Courtenay South followed by Courtenay East, the Black Creek/Merville area, and then Comox. Statistics can be used with great effect to help buyers and sellers but they have to be relevant to your situation. As the old adage says – statistics can be used to show almost anything.

In addition to being broken down by area, residential real estate statistics in the Comox Valley are maintained on single family homes, single family homes on acreages, single family homes on waterfront, single family strata, single family modular/prefab homes, condos (apartments, patio homes and town homes), half-duplexes, full duplexes, triplexes and fourplexes, manufactured and mobile homes on a pad, farms and ranches, lots, strata lots and waterfront lots, acreages and waterfront acreages. It is important, therefore to know what is being presented statistically. For example, how relevant is a newspaper article to you that states “average single family home prices down 1% compared to last year”. What types of single family homes are included in the statistics and from what areas, and what types of homes are excluded from the statistics?

Let’s take an extreme hypothetical example to make the last point. Two Courtenay homes sold last year in a specific area for 700,000 and 100,000 respectively. The average sale price was 400,000. Fifteen homes sold this year in the same area for 400,000. The average selling price was 400,000. The statistical conclusion is that the average price of homes in that area remains unchanged from last year, but is the conclusion meaningful? Moreover, is it relevant to your situation?

While general statistics derived for an entire category of homes throughout the Comox Valley may be interesting, they may not be either meaningful or relevant to your specific situation. What if you wish to buy some Courtenay properties? What is often more relevant is what homes similar to yours in your neighborhood sold for during the same or similar market conditions. Why is this important? The value of your home at any given time is determined by the market. The market value of a specific home in a “buyer’s market” could be substantially different in a “seller’s market”. Other factors come into play as well. For example, how many days were the homes on the market before they sold? If the average price of homes similar to yours sold in your neighborhood for about the same this year as last, but took five times as long to sell this year, would this not be important to know? If last year nearly 60% of homes listed in your neighborhood and price range sold, but only 30% have sold so far this year, would you want to know this?

It is important to understand and keep track of Comox Valley real estate market statistics if you are considering buying or selling a home. Don’t just rely on generalized statistics to do this. Statistics need to be meaningful and relevant to your situation if they are going to be considered as part of your decision-making process on your most important investment – your home. The more that you know about the Comox Valley market, the better off you will be when you enter the market whether as a buyer or seller.

When it comes to the future, you can prepare for it while it is still in the world of tomorrow, react to it when it arrives and becomes today, or wonder what happened when it passes into the memory of yesterday. The same is true of the real estate market. Prepare yourself by becoming knowledgeable before you enter the market so that you can make informed decisions on your most important investment.

If you are not currently working with a realtor and are considering becoming a buyer or a seller of residential real estate in the Comox Valley Brett Cairns of RE/MAX Ocean Pacific Realty can help you become better informed on our real estate market. He am a full-time, full-service, professional Realtor located in Comox who provides professional real estate services for buyers and sellers of residential real estate in the Comox Valley.

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• Comox Valley Home Sales – The Invisible Statistic

Homes for sale and sold in the Comox Valley, once they sell, have statistics associated with them, but what if they are invisible? Avid sports fans will understand the significance of statistics to their favorite sport. The application of statistics to business ventures such as real estate is no less significant to more fully understand the processes and successes of the industry. Consider, for example, the understanding that can be imparted with statistics such as time to sell and sell to list ratios when it comes to the health and type of the Comox Valley real estate market.

As I mentioned in an earlier blog, REALTORS ® in British Columbia generally provide services to people within an agent – client relationship referred to as agency. When no agency is provided, people are treated as customers and while they are entitled to the provision of full and accurate information, they are not provided advice. Let’s delve further into the agent – client relationship.

For any Comox Valley property sale to be successful there must be both a willing seller and a willing buyer. Each must often be prepared to compromise. Buyers and sellers can be brought together in many different ways and their different needs represented by REALTORS ® on both sides of the transaction. This two-sided relationship is often forgotten in the statistically driven real estate world.

When a person or persons decide to sell a home, and they enlist the services of a professional Comox Valley real estate agent to represent them, they sign an agreement with that agent to market their home so that it gets the necessary exposure over a period of time for the home to be competitively sold in the real estate market. On the selling side of the transaction, the listing agent is the one whose sign appears on the lawn of the home being sold. The name of this agent is the one that becomes known relative to the sale of the home. But where does the Comox Valley real estate agent’s name appear who represented the buyer who actually purchased the home? The short answer is nowhere but in the MLS statistical database and perhaps on the website of the buyer’s agent. It does not appear on the SOLD sign but perhaps it should.

There are a couple of different approaches that a Comox Valley listing agent can take with respect to the marketing of the home. A passive approach may merely involve getting the listing and then making it known through various media that the home is for sale. In this scenario the listing agent gets their name exposed and they are hoping that another agent will bring a buyer to the table who is willing to make an offer on the home. A more active approach will involve more than merely making it known that the home is for sale. An agent who takes this type of approach will work hard to locate a buyer through a variety of means that includes, among other things, significant networking.

When a home is “sold” by the listing agent who also finds a buyer for the home, the SOLD sign is attached to the listing agent’s sign and they receive recognition for the sale. But what happens when a different agent actually locates the buyer and they help negotiate an offer that is acceptable to the buyer and seller? Exactly the same thing – the listing agent still has the SOLD sign attached to their sign and they receive the recognition for the sale. The buyer’s agent’s name appears on the Contract of Purchase and Sale but really nowhere else that is visible to the general public. The SOLD sign does not make it know that two different agents played a role in the sale. The buyer’s agent becomes the forgotten or invisible statistic in the real estate transaction even through they played a very important role in the Comox Valley home sale.

Why is this discussion important to people who are considering selling their homes? Perhaps a prospective seller would want to know more about a listing agent and their role in previous real estate transactions? How successful has this agent been in the past and will this agent have time for them? Are they experienced in Courtenay real estate sales?

Some real estate agents measure success by how busy they are and, in turn, by how much money they make. Is this really success or is client satisfaction a better measure of success? As with most things in life as people become busier they have less time to devote to specific issues. In the case of real estate, agents can become very successful but if they become too busy, there is a level at which personalized attention to any single person can actually diminish and suffer. While there is no exact level at which this happens many top producers believe that when they, as individuals, are working for more than 10 sellers and 10 buyers at a time this potential for diminishing individual attention becomes real. There are only so many hours in a day and days in a week.

In statistical terms, success can be measured, at least in part, by sell to list ratios – those related to a specific agent – not those that appear in real estate board statistics relative to the overall market. For example, if a listing agent has 20 listings and 10 of them sell, how many of those did the agent find a buyer for and how many did a different agent find a home buyer for? These statistics are generally not highly published but a good agent should be keeping track of them. Is this something that a person selling a home might wish to know?

If an Comox Valley realtor has many listings will they have time for me? If an agent has many listings what percentage actually sell, and of them, of what percentage did they find the buyer? These statistics are generally invisible in the real estate market but they do exist. Would a potential seller want to know them before making a decision on the listing of their home? Being better informed is often conducive to better decision-making.

If you are looking to sell a Comox Valley home, contact Brett Cairns of RE/MAX Ocean Pacific Realty to make an appointment with me so we can discuss how he can help you meet your real estate needs.

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• Comox Valley Real Estate Services – Payment for Services Rendered

Comox Valley real estate services rendered by a professional real estate agent are generally compensated through a commission structure. Every business that provides goods or services to a customer or client expects to be compensated. The fee structures used by those that provide services are as varied as the businesses themselves. Flat fees, service fees, contingent fees, hourly fees, surcharges, deposits, and retainers are among the many models.

Let’s briefly examine the traditional percentage-of-sale Comox Valley residential real estate brokerage commission structure model. While it is not my intention to delve into the history of this topic – those readers wanting a challenge might take that on – I will highlight some considerations that may not be obvious to most readers.

Comox Valley Realtors ® who are employed in the real estate industry expect to be compensated for services rendered, but does this expectation always materialize in practice? The short answer is no. This traditional brokerage commission structure places REALTORS at risk of providing services and not receiving any compensation in some instances. For example, a REALTOR ® may spend considerable time, effort and money marketing a home. If it does not sell within the listing period and the listing is not extended by the owner, the REALTOR ® not only does not get paid, they will incur a loss. Similarly, a REALTOR ® who spends considerable time, effort and money driving clients around and showing them houses will also suffer a loss if the clients do not purchase a home.

What happens when Crown Isle luxuriously appointed homes for sale do sell and the sale completes? A commission is paid for the sale of the home related to the two ends – buying and selling – of the Comox Valley real estate transaction. In practice this commission is generally split between the listing and buying brokerages. The agent then receives a portion of the applicable end from their respective brokerage(s). With this they must pay a portion of their overall real estate expenses (of which there are many) and all expenses related to this specific transaction (including any referral fees that may apply to the transaction). Then, of course, like everyone else, they must deduct the requisite income tax and send it in to the government. The individual agent on one end of the transaction is among a number of people who receives a share of the overall commission.

Let’s now turn away from the topic of compensation and focus on the service provided by the licensed real estate professional. The service provided can, and often does, vary considerably among Comox Valley real estate professionals, even when they work for the same brokerage.

First, let’s touch on the type of service provided. Ask for a list of services offered by the real estate professional. How extensive is the list of the types of services? Is the list best described as a full-service list, specified services list, or limited services list? What happens when a service is required to deal with a situation that is not on the list? When the services are being offered through a contract, read and understand the contract before agreeing to it. For example, let’s consider the following hypothetical example. What if a “discount commission” brokerage stipulated in their contract that they would refer you, the owner who is trying to sell their home, to a full service brokerage if they could not sell your home? Would you not want to know why this language was in the contract?

What if it was because they would receive a significant referral fee from the full service Comox Valley brokerage for the referral? The bottom line is to know exactly what services are being offered to you and whether or not additional services will be provided to cover unforeseen or unusual circumstances.

Second, are the types of services being offered on a full-time or part-time basis and what is meant by each of these two descriptions? If you hire someone and then find out that they do not work after 5 pm or on weekends would this be of any concern? Perhaps they only work on selected days of the work. Will they be there when you need them? Equally importantly, how busy are they? Will they have time for you and will they be able to provide you with personalized attention?

Third, even when two real estate professionals offer exactly the same type of services, the level at which they are provided may vary considerably. One may offer first-class service while another may offer economy class service. With economy class, extras cost extra. Which one are you expecting and willing to pay for? If you are planning to buy a high end home from the Courtenay real estate market, what kind of service do you expect? What about oceanfront homes with a view?

Fourth is the issue of compensation. When you pay discount rates for real estate services you may find out that you are also getting discount service – either because of the type or level or services being provided or because of the time, attention and level of effort directed your way by the person who is providing the service.

While the old adage You Get What You Pay For is often applicable in the service industry, ensure that you know exactly what you are getting to avoid surprises down the road. For example, I recently saw an ad on the internet that said ” We think it’s time for change in real estate – our commission rate is only 2.95% *. The asterisk was connected to a statement that mentioned that several things, including advertising, were additional fees. Those people in business will understand how expensive advertising can be. How much are the additional fees? How do you know what you are getting for what price when not everything is included?

I will always remember a few of the golden nuggets that my parents taught me when I was very young. They included If it sounds too good to be true it probably is, You rarely get anything for nothing, and You get what you pay for. The key in hiring a real estate professional is to know exactly what you are being offered for the commission being expected in terms of the type and level of service being offered and the time that will be devoted to meet your real estate needs. If you are looking for real estate services that go Above & Beyond in the Comox Valley, contact Brett Cairns of RE/MAX Ocean Pacific Realty in Comox BC.

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• Comox Valley Real Estate Services Spectrum

What is the Comox Valley real estate service spectrum? Broadly speaking it involves the type and depth of real estate service provided by a Comox Valley realtor. Hiring a REALTOR® can sometimes be a challenging task. Given that you are hiring someone to represent you in the purchase or sale of your home, this is a task that should not be taken lightly.

As I discussed in a previous blog, Comox Valley realtors are individuals, and as such, it is reasonable to expect that they will provide different types and levels of service. They may also offer services that are constrained by time, and they may charge different commissions. They are a number of other issues you may wish to consider as well.

First, what motivates the Comox Valley realty professional? Are they motivated by getting as many Comox Valley full featured property listings as possible? Do they truly care about you and your needs or are they motivated by something else? All real estate professionals must maintain minimum standards to continue to be licensed but how far above these standards do they strive to achieve? Do they go beyond the minimum continuing education requirements for their profession and are they taking additional courses and learning on their own to improve the service that they provide to their clients? Do they take optional professional development courses? The answer to these questions is often related to their basic character. Ask for character references and talk to others who know them well think of them. Do not merely rely on something that is written on a website or other medium.

Second, do they fully explain their Comox Valley realty services and approach to you at the front end of the process? Do they keep you fully informed throughout the real estate process? Do they regularly follow up and do what they say they are going to do in a timely manner? How successful are they? By this I am not merely referring to their overall success, I am referring to success measured by such things as sell-to-list ratios and other metrics relevant to the industry. Do they offer guarantees that would be very difficult, if not impossible, to deliver? For example, can anyone actually guarantee and deliver on a stress-free experience when buying or selling a home given that some elements of stress emanate from things that are beyond their control? The answer to these questions comes down to professional competence. Ask for testimonials from people who recently engaged their services and see what they think. Talk to these people and ask them about their experience.

Your home is, in most instances, your most expensive investment. Is is treated with the care and respect that it deserves by the professional that you hire to buy or sell yours? Clearly, there are a number of things that should be considered when hiring a real estate professional to buy or sell your home. Have you talked to at least three different REALTORS ® before hiring one? Have you talked to people who know them WELL, both personally and professionally? Looking for more? Contact Brett Cairns of RE/MAX Ocean Pacific Realty.