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• Why is the Comox Valley Real Estate Team Important?

Comox Valley real estate is a team effort. Over the years I have heard a number of comments about the effectiveness (or not) of real estate agents. As a Comox Valley real estate agent, I continue to hear these types of comments made of others. Based on personal experience over 18 moves I can vividly recall one who was outstanding, three that were horrible, and a number that were somewhere in between and forgettable. But what made the effective ones effective and the ones that were not, not?

Before diving into explore this question, let me make one point up front. The real estate process involves an agent and a client. This agent – client relationship involves at least two people (more if there is more than one client involved in the transaction) and it takes effort by both parties to foster an effective relationship and to ultimately realize success.

Clearly, the Comox Valley realtor must do much of the work in the relationship but the agent’s efforts are not always enough for success. Following are some examples of why this is the case.

First, consider someone who wants to add their home to the online listing library of Courtenay homes Hopefully this person interviewed several different real estate agents before making a decision on hiring one as their agent. While all real estate agents must meet minimum standards to become and stay licensed, minimum is a key word. Not all real estate agents are alike nor do all possess the same capabilities. Let’s say the seller in this example did this and subsequently decided to hire one based on how each agent presented themselves and what they presented to the seller in terms of a strategy and plan to sell the seller’s home.

During a listing presentation to a potential Comox Valley home seller, the real estate agent may have provided the seller with advice in a number of areas. One area that is always topical is the suggested list (or asking) price of the home. As a seller, are you open to this advice? Are you inclined to accept this advice if the real estate agent has thoroughly and competently made their case on why the suggested price is being recommended? If the answer to either question is no, what do you know that the agent does not? Have you shared this information with them? Have you discussed the differences in price? How this point of contention is addressed by both parties is important because it may affect the relationship as it develops during the real estate selling process.

All relationships are built on trust and trust must be earned. A Comox Valley real estate agent cannot do their jobs effectively if they are not given accurate and complete information. Similarly, a real estate agent should be telling clients what they need to hear and not merely what they think the client wants to hear. Unfortunately this is not always the case. Some agents will take a listing at a price that the client wants to believe will sell even though it is way above market value just to get the listing. When a price is recommended, an expectation is generally created. The recommended price should be as close to market as possible or deviations taken with the seller’s full knowledge of the potential consequences.

From the seller’s perspective, most sellers want to obtain the best price they can for their home – understandably so. From the agent’s perspective, most agents should want to have a reasonable opportunity to sell the home because of the time, effort and money they will spend on marketing the home. If the list price is way above the market, the home may not get any viewings, let alone any offers. If the list price is too low, the seller may not realize the best price that they can in a specific market. There are, of course, many different factors that come into play when establishing a pricing strategy and a list price. Your agent should present these to you as a seller before you agree to a specific price.

After establishing a list price and agreeing to the terms and conditions in the listing contract for a best homes by the ocean, the Comox Valley estate agent should have provided the home seller with information and other advice concerning the marketing of the home. For example, the agent may have given advice on preparation and presentation. As a seller, are you open to such advice? Are you inclined to follow such advice if you are given a good reason for it? Do you understand the ramifications of not following such advice? Were the reasons explained to you? Did they make sense? Under some circumstances, sellers risk greatly minimizing the chances of selling their home when they are given advice related to the effective overall marketing of their home if they choose to ignore it.

Second, consider a Comox Valley home buyer. When a home buyer first meets with a real estate agent, the real estate agent may ask a number of questions. As a real estate buyer will you answer the questions to the best of your ability or will you selectively do so? If you choose not to provide information to the agent will you let them know and why?

Real estate agents have both legal and moral obligations to protect the interests of their clients. If a buyer is not truthful or is incomplete with respect to the information that they provide the real estate agent they are working with, how reasonable is it to expect that the agent will be able to provide the best possible advice to the client? This does not mean that all things should be divulged to an agent. For example, when I negotiate for a client I do not want to know their top or bottom line because I do not want that to adversely affect the advice that I give on price. By not knowing I believe that I can give far more objective advice to my client.

Clearly, it is impossible to do more than scratch the surface on a topic such as this. The main takeaway is that agents and clients must work together during the real estate process. Through many years of life and professional experience, I have learned that much more can be accomplished by teams of people working together than by individuals working apart. If you are looking to buy or sell Comox Valley real estate, contact Brett Cairns of RE/MAX Ocean Pacific Realty to discuss how he can help you with your real estate needs.

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• Are Comox Valley Real Estate Statistics Useful?

Are Comox Valley real estate statistics useful? How many times have you come across a statistic that was used out of context, or one that was used without any context? In this day and age, statistics are used just about everywhere to bolster arguments, for marketing, and to add credibility to a wide range of topics. Unfortunately, they are often used without any discussion of the circumstances within which they are relevant and applicable. In this Comox Valley Real Estate blog, I will discuss a number of hypothetical examples to make a point about statistics and their use in real estate.

Example One. A majestic Crown Isle home is newly listed for sale (Home B) and it sells in just over a week. The Comox Valley listing agent uses this sale as an example of a home that sold quickly in a buyer’s market. If this is all we knew about the sale would the statistic be impressive? Could we conclude anything about the real estate agent and that agent’s ability to sell homes? What if there was another similar home (Home A) on the market prior to Home B being listed? What if Home A had an accepted but conditional offer on it before Home B was listed? What if the offer on Home A fell through and the person whose offer had fallen through was advised of Home B being newly on the market by the listing agent of Home A? What if this person then purchased Home B? Would this set of circumstances change any perceptions about what might otherwise have been concluded about the listing agent of Home B?

Example Two. A Comox rancher style home for sale (Home X) was on the market for several months without selling. The owner of Home X decided to list with a different real estate agent. This new agent sold the home in less than a week. Impressive? What if the second agent convinced the owner to drop the price to a level lower than that offered through the first agent? What if the second agent already had a buyer that was serious about buying this home before the second agent obtained the listing? What if the second agent did not inform the owner that they had a serious buyer? Would this set of circumstances change any perceptions about the ability of the agent to sell homes?

Example Three. Comox Valley agents F and G obtain new business based mainly on referrals from others. Would it be reasonable to conclude that they are both fairly successful agents? What if Agent F obtains referrals from others based on the high level of service provided? What if Agent G obtains referrals from others who are being compensated for the referrals? Would this set of circumstances change any perceptions about either agent?

Example Four. Comox Valley realtor R lists a home for 4 months and it does not sell. During that period of time, this agent convinces the seller to drop the price twice. This agent convinces the seller to re-list the home (through a new listing) for 3 months at a further reduced price and it does not sell. This agent once again convinces the seller to re-list the home (through a new listing) for another month and it finally sells. The statistics associated with this “new” listing show that the home sold in a month. Agent S lists a similar home at a price comparable to the lowest price of the other home and it sells in two months. Can any conclusions be drawn about either agent? What do we know about the property? What if the home sold by Agent S backed on a busy noisy street while the home sold by Agent R was located in a quiet neighbourhood?

Example Five. Ten different styles of Courtenay homes for sale sold in 2010 for an average price of 300,000. In 2011, ten homes sold for an average price of $310,000. What conclusions can be drawn? Perhaps that the average price of homes increased by 3.33 percent from 2010 to 2011? What if in 2010 nine of the homes sold for $290,000 and one sold for $390,000? What if in 2011 nine of the homes sold for $250,000 and one sold for $850,000. While the first conclusion about the average price would be mathematically correct, would it be meaningful?

Example Six. Consider the headline in the newspaper that states Oceanfront homes with a view of the mountains sales up 50% in region Z compared to last month.” A pretty impressive statistic! What if in an average month 6 waterfront homes typically sold but last month only two sold? This month 3 sold and therefore there was a 50% increase over the previous month. Is the statistic as impressive?

Example Seven. Comox Valley property agent E lists 10 homes and 2 of them sell. Agent F lists 3 homes and 2 of them sell. What conclusions can be drawn? What do we know about the circumstances?

Why do I pose all of these questions on these hypothetical examples? The reason is this: Before any conclusions are drawn from Comox Valley real estate statistics, it is essential that the circumstances from which the statistics are being drawn are known. Avoid the temptation to come to any conclusions based on assumptions or perceptions. Statistics can be very misleading when they are applied or interpreted incorrectly. Know the facts, understand the circumstances, and only then draw conclusions when the statistics are both relevant and meaningful.

Brett follows and analyzes the Comox Valley real estate market closely. Should you wish to know more about it, and how certain statistics may or may not apply to your circumstances, contact Brett Cairns of RE/MAX Ocean Pacific Realty to set up an appointment to see him.

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• What are 10 Comox Valley Real Estate Agent Myths?

Myths seem to surround Comox Valley real estate agents. Over the years I have heard a number of sayings about real estate agents. Based on my experiences as a real estate client, a number of them seemed reasonable to me at the time. As a Comox Valley realtor I continue to hear things about property agents. Some are true and some are not. In this blog, I will discuss a number of popular myths. For the purpose of this blog I use the term brokerage and agency interchangeably. Real estate agents are licensed through a specific brokerage in order to conduct business.

Myth 1 – All of the local Comox Valley listings agents receive a salary. While working as the “duty agent” in my Comox Valley real estate office, I have heard this from people a number of times. Some thought because I was working in the real estate agency office that I was paid a salary by the office. While there may be some exceptions, real estate agents generally work on commission basis. If they do not complete a sale (either as a buyer’s agent or as a seller’s agent), they do not get paid.

Myth 2 – Comox Valley Realtors receive a large commission on each sale. This is an area of the real estate business I did not fully understand as a client probably because it was never explained to me. The real estate commission is generally paid by the seller. However, when the seller does not offer a commission or one that is inadequate for services rendered by a buyer’s agent, a buyer may be asked to pay some of the commission. Let’s assume the commission is paid by the seller. A real estate commission paid by a seller is divided amongst the buying and selling agencies. This is generally done on a 50:50 basis but not always. Each agency then takes a share of their part of the commission and the remaining part goes to the agent. The agent then must deduct any referral fees paid, expenses, and like everyone else the taxes (income, and HST/GST/PST as applicable). What the agent takes home can be considerably less than the total commission paid by the seller.

Myth 3 – Comox estates and properties agents do not have many expenses. I have heard this myth many times in the past year. The reality is, for most agents, that real estate expenses can often be considerable. Typical expenses include the purchase of: licensing course and exam, travel expenses to and from the exam, post-licensing course, agency orientation course (s), Canadian Real Estate Association fees, provincial association fees, local real estate board fees, agency training courses, computer and peripherals, photocopier/fax/printer, financial calculator, camera and video camera with editing software, mobile phone and other devices such as a laptop and tablet, sign brackets and signs (yes these are paid for by the agent), lock boxes and lock box keys, websites, office supplies, etc. Ongoing costs include ongoing license renewal fees, personal marketing (this can be a very large expense), property marketing and advertising (this can also be a large expense), National agency dues, Region agency dues, CREA annual dues, provincial and local dues, website fees, MLS access fees (to maintain and access the MLS data that is provided to clients), continuing education courses, ongoing hardware and software fees, office supplies, agency and deal fees, fees to search for titles and other documents such as strata documents, auto expenses (driving clients around), etc. Real estate is a very expensive business and it is not uncommon for an agent to have 40 to 50 thousand dollars in expenses each year. Some top producing agents have expenses that are in the hundreds of thousands of dollars range. In many agencies, the agents pay for everything including charges each time they photocopy a piece of paper.

Myth 4 – Courtenay estates and properties agents make lots of money. Some top producing agents do but they also have considerable expenses. Most don’t.

Myth 5 – All Comox Valley Real Estate agents charge the same rate in a specific area. The Competition Act is Canada’s principle competition and federal legislation. It applies throughout the country to all economic sectors, including real estate. Price fixing agreements, market allocation/division agreements and supply/output restriction agreements are against the law. Commissions and other aspects of price are determined and established independently by the Comox Valley realty brokerages through which agents are licensed.

Myth 6 – All Real Estate agents are all the same. Real estate agents are NOT all the same. While they all must meet a minimum standard to become licensed and they must complete minimum continuing education requirements to maintain their licenses, real estate agents are as different as the individuals themselves. Each have different characters and levels of competence. What motivates one agent does not necessarily motive another. One agent may have substantial life experience while another may be fresh out of high school. This should not be a surprise to people. Think about your own industry. Are all of your colleagues or co-workers the same?

Myth 7 – Real Estate agents working in the same brokerage are part of a team. Generally, it is accurate to think of real estate agents working through the same agency as independent contractors and competitors. They each are sole proprietors of their own business (or they may have an independently registered Personal Real Estate Corporation) and their success or failure in business is their responsibility alone. No other members of the same agency are generating business for them. They must do this by themselves unless they have formed some kind of business team or partnership.

Myth 8 – Real estate is a loosely regulated industry. Real estate is a highly regulated industry, and Realtors are real estate agents who are members of the Canadian Real Estate Association and they are also required to follow the Canadian Real Estate Association’s code of ethics and standards of business practice. Unfortunately, like just about every other industry, some people either do not follow the rules or they try to “bend” them to suit themselves. When real estate agents do this, there are mechanisms in place that could result in fines and disciplinary action taken against real estate agents by their governing bodies. In some situations, real estate agents can face civil and even criminal prosecution when they do not follow the rules.

Myth 9 – Real Estate agents all provide the same type and level of service. The real estate industry, like more than 70% of the industries in Canada is a service-based industry. Real estate agents are paid for the professional services that they provide. While real estate agents are all educated and trained to a basic level of service, the type, and level of service that each provides can be very different. Just because two agents are working for the same agency does not mean that they provide the same type and level of service. While discount and full-service brokerages both exist, it is important to read the fine print in any and all contracts. You may be surprised at what you are getting for the price. Even within the same brokerage you will find agents who provide different types and levels of service. You will also find agents who work part time and full time. What is meant by full time to one real estate agent is not necessarily the same for another. When considering the hiring of a real estate agent who will represent you and your interest, ask them to explain their services and approach to you. You may be surprised just how different they are.

Myth 10 – Your interests will be better served by a top producing agent. This is a very common myth worth discussing. Top producing agents achieve this distinction by completing lots of sales. But what kind of character do they have? Is integrity the foundation of their character? Can they be trusted? What motivates them? Are they motivated merely by making money? Are they motivated by providing outstanding service to clients? Do they give to charity? Do they do so for the right reasons? How busy is too busy? At a certain level, anyone can become too busy. While there is not exact dividing line, top producers I have talked to say that they found when they had more than 10 buyers and 10 sellers on the go at any one time, they could not provide the same level of personalized service as when they had less than this number. One way to find out is to see how quickly they reply to your individual inputs on an ongoing basis. While only you can answer this question when it comes to who you want to represent you, it has been my experience that labels do not matter much. What matters most to me is the character, competence, and motivation of the person.

If you are thinking about buying or selling a home or property in the Comox Valley, contact Brett Cairns of RE/MAX Ocean Pacific Realty to discuss how he will go Above & Beyond for you to meet your real estate needs.

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• What do I do with my Comox Valley Property?

Comox Valley homes sellers and home buyers often ask if it a good time to buy or sell Comox Valley property. Less common is a consistent answer to this question. Why is that? Probably because it is a very difficult question for people who are not either the home buyer or seller to answer with any degree of certainty. Let’s explore why this is.

The question of certainty itself is interesting. I have come to realize that only three things are really certain. First, as humans, we all have a definite lifespan. Second, uncertainty is often a certainty of life. Third, change is almost certain in life. When placed in a real estate context, real estate markets do change, but predictions about future property market conditions are rarely certain.

It is common to think of the Comox Valley property market as either a buyer’s market, a seller’s market, or a neutral market. While some may argue that the difference lies in quantitative aspects such as the number of months of total inventory, one would be hard pressed to find a precise definition or general agreement on a specific definition on any of these descriptions. I prefer to think of these markets this way:

Comox Valley buyers market – listings (supply) exceed sales (demand) on a sustained basis and inventory is larger than normal and increasing.
Comox Valley sellers market – sales (demand) exceed listings (supply) on a sustained basis and inventory is smaller than normal and shrinking.
Neutral market – listings (supply) and sales (demand) are comparable and inventory is about normal

Each of these types of market presents challenges to either home buyers or home sellers. Generally, buyers are looking for location, features in a home and value. Generally, sellers are looking for top dollar for their home when they sell.

The Present
In a buyer’s market, sales will be more challenging. For example, the Comox Valley real estate market is currently a buyer’s market. The total number of Crown Isle listings are up. The Comox Valley real estate market started off the month of January with a higher number of new listings than last year (up 38%) and sales were up 13%. This initial activity has slowed and overall market activity to the end of March is comparable to last year but sales are lagging listings. The number of new listings this year is almost identical to last year (329:328) but total inventory is up about 4.4% (1356:1298). Overall sales are down about 10% and the median price of sales is down very slightly ($282,000:282,500). Single family home statistics follow: New listings down about 8% (155:168), median price down about 7% ($348,000:323,000), Single family home sales down about 22% (54:69) and total inventory up just over 1% (491:485). Placing these short term statistics into perspective, overall sales at the end of 2011 were down nearly 30% from the peak in 2007.

The Opportunity
While many people may conclude that this means it is a good time to buy but not to sell, this is not necessarily the case. Yes, this type of market generally represents a good time to buy. However, this type of market may also represent an opportunity for sellers. Having said this, sellers need to pay close attention to preparation, presentation and price in this kind of market. These three elements are important to potential buyers for them to conclude that the home represents value in this type of market. The goal of sellers should be to realize a sale at close to market price and these elements may determine whether or not the home sells at all.

Market price is mostly determined by the type of market and what home buyers are willing to pay. If a seller lists too high they may not get showings. Listing even a bit above market price may get showings but may not get offers. First and foremost, sellers should look objectively at their home through the eyes of the buyer. When sellers are emotionally attached to a home or if they have invested a lot of money in a home, their perspective on what a home is worth may not be consistent with the perspectives of potential buyers who have a lot to choose from. It is very important for a home seller to list at or even slightly below market price in a buyer’s market. For a full explanation of why this is important, I would be pleased to discuss this with potential clients along with the strategies and plans that are appropriate to this type of market.

People can often look at the world in one of two ways – the glass is half empty or the glass is half full. Those who see the glass as half empty may have a more pessimistic view of a buyer’s market as a seller. Those who see the glass as half full may see opportunities that others do not. Having said this, the optimism necessary to see these opportunities must be tempered and not “rose colored”. I prefer to be cautiously optimistic about the opportunities for a seller in a buyer’s market. To take full advantage of a buyer’s market as a seller, one should think and plan strategically, and execute tactically. Making a sale is a strategic consideration, while price is more of a tactical one. As the saying goes, it may be better to make a sale and make a bit less money than not make a sale at all (especially if the cost of maintaining the home for another year or more is significant). This is similar to the old adage that a bird in the hand is better than two in the bush. This often applies to waterfront homes nearest the ocean with a mountain view in a down market.

The Future
Having discussed current Comox Valley property market conditions, how can future market conditions be forecast? Generally, except for people who claim to be Clairvoyant, people forecast future events and conditions based on an assessment of past conditions and trends. As stated earlier, real estate market conditions are typically cyclical. The challenge is; however, to accurately predict the length of a specific cycle. Predictions and forecasts related to real estate markets are generally no more accurate than weather forecasts or predictions about the stock market. With many different predictions and forecasts, history always has a tendency to show that someone was right, but afterwards and not before. So where does this take us with respect to the Comox Valley real estate market?

The Way Ahead
What is known is that the current market is a buyer’s market. What is certain about the future is that the market will change, but how quickly and to what type of market is only an educated guess based on past cycles and trends. My sense continues to be that 2012 will be a “settling” year with some recovery but little substantial change absent some significant unforeseen event or influence. This market offers some very good opportunities for buyers given the large inventory. It also offers some opportunities for sellers who have their homes appropriately prepared, presented, and priced within the context of a strategy and plan appropriate to their home and this market.

Thinking of buying or selling Comox Valley real estate, contact Brett Cairns of RE/MAX Ocean Pacific Realty to get started on meeting your real estate needs.

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• Comox Valley Real Estate – Are Words Important?

Working with clients in the regional real estate market is rewarding when people realize their real estate goals – whether it be as a first time home buyer or as a retiree looking to settle down in a great location without the stress of a former job or city. Each person’s understanding of the real estate industry, and the Comox Valley real estate process that applies to buying or selling a home is different. Some very experienced people may have limited knowledge of real estate while some inexperienced people may have acquired a fairly good understanding. Understanding what they know (or think they know) is a good first step.

Words are the building blocks of language and communication. Words, and the meaning that they convey, are important to facilitate effective communication, and to convey intended understanding. Words are especially important in Comox Valley real estate given the highly regulated nature of the industry and the significant number of laws that have been created to regulate the industry. It is important to understand what is meant by the words contained in law in order to understand the various laws and regulations that concern real estate.

Lexical, or dictionary, definitions are often too vague to be useful when precision is important to facilitate understanding of an issue. Think about how many time you have encountered the following: the same word used to mean several different things, and several different words used to mean the same thing. Often, we need to make small or subtle distinctions between words with the same lexical definition to ensure what we are trying to communicate is what we intended to communicate. Many years ago I was provided a clear definition of communication as follows: message transmitted; message received; and message understood as intended. While the first two parts are normally easy to effect, the third can cause problems in business.

The word property is used in Comox Valley real estate many times. Some dictionaries state that property is “that which a person owns”. However, there is a problem with this definition in terms of real estate. The British Columbia Real Estate Services Act states that real property is defined as real estate. Real estate includes land, and whatever is affixed, growing upon, and erected upon the land. So what is the problem? When we buy real property as individuals in Canada, we do not own the property. The only owner of the land is the Crown (meaning the federal and provincial governments). So the lexical definition of property does not apply to real property. Unfortunately, many people understand and use the lexical definition of property and apply it to real property in their everyday language.

When we buy real property (real estate), we buy interests in real property. Our interests and those of others are expressed in a document called the land title. This document discusses registered owners but it does not use this expression relative to the land itself. Instead, a title will refer to the registered owner in fee simple. The title also discusses charges and the register owner of charges. The Land Title Act defines a charge as meaning an estate or interest in land less that the fee simple. This Act includes an encumbrance in the definition it provides for charge. An encumbrance is defined as a judgement, mortgage, lien, debt or other claim. As a registered owner of a fee simple estate (also referred to as a freehold estate) we possess the largest bundle of rights relative to the real property apart from those related to Crown ownership. Clearly, however, the Crown and others may also have rights or interests in the real property that we possess.

The discussion of real property ownership is confusing enough without having to consider what is commonly referred to as co-ownership. Co-ownership in the context of real property does not mean ownership. It merely refers to possession of the land by two or more people. The forms of co-ownership are expressed as either joint tenancy or tenancy in common. Tenancy is defined in the dictionary as possession or occupancy of land. So here the dictionary is more helpful. Even though we discuss co-ownership, what we actually mean is co-tenancy because we possess but do not own the real property. Each form of tenancy has different rights associated with it. For example, joint tenants will have the right of survivorship relative to an undivided interest in the entire real property that they possess together. In contrast tenants in common will have interests in a portion of the real property that they can leave to beneficiaries.

By now, it should be clear that it is very important to understand the meaning of the words we use to describe and discuss Comox Valley real property. While we may commonly use words such as ownership in our everyday lexicon, we often use such words incorrectly relative to the legal understanding of real property. Saying one thing and meaning something else and saying something that is incorrect can both result in problems when it comes to legal interpretation and understanding.

Our knowledge and understanding of real property issues can be enhanced greatly by reading all of the laws that apply to real property. A competent real estate agent should be able to help you improve your understanding of real estate and provide you with advice on real estate matters. When you need legal advice on real estate matters seek such advice from a lawyer. Comox Valley real estate agents are not either licensed or qualified to provide legal advice but they should be able to help you identify when you need such advice.

If you are looking for a greater understanding of real estate and the real estate process contact Brett Cairns of RE/MAX Ocean Pacific Realty before you buy or sell your next Comox Valley home. The more you understand, the more comfortable you should feel going through the process. This, in turn, should help you acquire peace of mind when buying or selling your home.

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• What are Comox Valley Real Estate Gems?

Comox Valley real estate gems are sometimes hard to find. Let’s see why. So far this year the Comox Valley real estate market remains a buyer’s market. Oddly, however, many buyers are non committal, and some sellers are not armed with the information they need to effectively sell their homes. Over the past week there were 50 new listings, 61 price reductions, and 32 sales in the Comox Valley. The total number of active listings today stands at 1394. Waterfront homes near town have the potential to be gems.

So why are home buyers hesitant to buy? One can only guess the number of reasons. I have heard this phenomena blamed on everything from the weather to the forecasts of doom and gloom to come in Canada’s housing market. How accurately have these types of forecasts been in the past? How well can we forecast the weather? The accuracies of these two types of forecast are often similar. Of course, when forecasts vary as widely as they current do, someone will be right. But how do we know who is right before hand? We generally don’t.

Perhaps Comox Valley home buyers should base their decisions on more factual and tangible things. Fact 1: interest rates are as low as they have been in the past 60 years. Fact 2: there is a good selection of homes on the market. Fact 3: the Comox Valley continues to be a desirable area in which to live, work and play. Beyond these basic facts, personal circumstances are also important. People who are thinking of buying will, of course, have a reason to do so. For most of us finances play a part so getting financially pre-approved makes sense. If you have a reason to buy and the money to buy, would it not make sense to take advantage of the currently favorable market conditions in the Comox Valley?

Selling in the Comox Valley today has different considerations. If you are a home seller, get to know the current market. A competent Comox Valley real estate agent that you can trust can help you do this. While there are a number of elements that must be considered when developing a strategy and plan to sell your home, location, preparation, presentation and price are some of the most basic ones. As well, each home will generally have some unique considerations. Ask the agent to explain the market to you as well as the strategy and plan to sell your home within the context of the current market. If the agent cannot or does not do this, how effective do you think they will be?

Let’s turn briefly to the topic of selecting a real estate agent. Comox Valley realtors come and go. Some agents have considerable life experience and some do not. Some agents are well educated, trained, and experienced in marketing and some are not. Some agents fully understand the difference between a client and customer and some do not. Some Comox Valley estate agents understand the difference between being a professional agent and a sales person and some do not. The bottom line is that all real estate agents are not the same. Nor all agents motivated by the same things. Some, unfortunately, are motivated purely by making money and getting as many listings as they can to do so. I met a few of these when I was a real estate client. How will you choose your agent? Will you interview several? Will you simply choose the first one that comes along? Will you choose one that is your “friend”? What is often said about mixing business and friends? Does the professional competence and the integrity of the agent matter to you? Why does any of this matter? When everything goes right in a real estate transaction, the differences may not be as obvious as when they go wrong.

Now let’s turn back to your prized Crown Isle upscale home. As a seller, consider your location. The location of your home is where it is and unless is it a mobile home it cannot be changed, but understanding the advantages and disadvantages of its location will help you develop a strategy and plan to sell it. There are advantages and disadvantages to every location. For example, last week 28 of the 32 homes that sold in the Comox Valley were sold in urban areas. This makes sense since most of the people in our valley live in urban areas. Location circumstances are also important. For example, if your home is a $600,000 home located in the middle of an area of $200,000 homes, the market value of your home will not generally be the same as it would be when located in the middle of homes of comparable size, features and price. A number of different things have a bearing on pricing strategies. Would you not want to know what these are for your circumstances?

Preparing your home to sell and then presenting it effectively are important considerations, especially when there is a lot of competition. This should be done through the eyes of the home buyer and not through your eyes as the home seller.

Price is almost always an important consideration. Market price is generally the best metric towards which to turn to determine your asking price and with which to adjust your asking price over time. Market price is based on the current market and it changes with the market. This concept is not understood as well as it should be. I have worked with buyers who believe that selling prices should be well less than list prices in a buyer’s market. List prices should not be used as a metric. Some sellers list at or near market prices while others choose to list well above market prices for a variety of reasons such as: I have too much in my home to sell at that price; I paid more for my home than that (bought in a different market): It cost me more to build than that (the purchase price of a new home may not reflect the market price of the home); I just want to test the market, etc. While some of these “reasons” can be understood, they generally carry no weight with a buyer when asking prices are well above market prices. Consider, for example, two similar homes in similar locations and in similar condition with a market value of $450,000. One is priced at $440,000 and the other is priced at $525,000. Which one do you think buyers will believe represents the best value?

There are, of course, many other things to consider when selling your home in today’s Comox Valley real estate market. Contact Brett Cairns of RE/MAX Ocean Pacific Realty and he will be pleased to discuss these with you along with a strategy and plan to sell your home in this buyer’s market.