Comox Valley Homes

Comox Valley Homes – For Sale by Owner or Not?

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Comox Valley homes are sometimes sold by their owners. This is referred to as a For Sale by Owner or FSBO. It is relatively easy to imagine reasons why someone would want to sell their home themselves. For example, if a person purchased a home years ago in a different market than that of today and they secured a high ratio mortgage for their home, it is quite conceivable that their home could be worth slightly more (or perhaps less) in today’s market than the value of their mortgage. This situation could certainly prompt a person to think about saving the cost of having a professional sell their home. There is certainly nothing wrong with someone trying to sell their Comox properties marketed for sale themselves but there are a number of key questions they may wish to have considered before attempting to do so. Here are five examples:

  • Do I have a good appreciation of the various real estate laws in British Columbia that apply, and could apply, to the Comox Valley home sale that I am thinking of undertaking, including those that relate to such things as property disclosure and representation?
  • Do I know what situations would cause me to seek legal and/or other professional advice during the course of the real estate selling process?
  • Do I know how to write a legally enforceable contract that will stand up in court if things go wrong?
  • Do I have access to, and knowledge of, the clauses and conditions that I may need to use to protect me, and my interests, when responding to an offer to purchase my home?
  • To whom do I turn for advice if I receive an offer with real estate contract clauses and conditions that I do not understand, especially when the offer may have a limited time specified within which I have to respond?

Every individual circumstance will be different and these five examples are meant to be illustrative of the types of things that a person may wish to consider before embarking on such a challenge. If I were going to consider selling a home myself (and I would not do this because I am a Comox Valley Realtor ® ) there are at least 10 more key questions that I would ask myself. I will not mention the 10 other questions here, but I will add that if you need legal advice in any area – consult a lawyer. If you need financial advice – consult a financial professional. There are a number of different types of professionals who become involved in the sale of a home and they are qualified and licensed to assist with different aspects of the sale.

 

One other thing to highlight is that each Comox Valley real estate transaction is different. What applies to one may not apply to another. Take oceanfront homes for sale as an example. They often have additional considerations because they are close to the ocean. Knowing what may or may not apply to the various types of Comox Valley Home sales is important. As the owner, do you know what you need to know about your home in order to sell it? Selling a home is not an easy task, especially if the intended sale is to take place in a buyer’s market. A real estate professional should know what the various challenges will be with such a task. An effective real estate professional should be able to help improve your chances of selling your home in this type of market. If you are considering such an option I would be happy to discuss some of the challenges with you that you could face. Contact Brett Cairns of RE/MAX Ocean Pacific Realty for your next Comox Valley home sale.

What are Some Courtenay Homes Best Price Selling Tips?

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Knowing and applying some Courtenay homes best price selling tips will pay off for Comox Valley homes sellers. Every week I have the opportunity to view a significant number of the best Courtenay homes on the market. Some of the homes are prepared and presented properly to sell, and they show well. Others do not show well. There are a number of reasons for this, and I will discuss some of the potential Courtenay home improvements in this blog. Courtenay real estate is a primary economic driver in our market area so it is important to talk about these types of home.

Like many other people, when my wife and I purchased a Courtenay home, we did to make it our own. When we add our personal touches to our homes, these Courtenay home improvements often become an extension of ourselves and our personalities, and they provide us with a higher level of personal comfort. Personalization is fine provided that the home can be depersonalized when it comes time to sell.

Consider the following scenario. All of the homes in a specific Courtenay real estate neighborhood are 2-bedroom, 2-bathroom ranchers with 1400 to 1700 square feet of finished living space. One newly built home in that same neighborhood is a two-story Cape Code style home that is 4400 square feet. Will this home stand out like a sore thumb? What will happen when the home is placed on the market? Will mainstream buyers consider it? Will this Courtenay home hold the same value as it would if it was located in a neighborhood of similar homes?

Mainstream Courtenay home buyers often look at neighborhoods that are fairly homogeneous such as Crown Isle in East Courtenay. When they do, they may not even consider a comparable Comox Valley home that stands out markedly compared to the rest. While a seller of such a home may eventually find a buyer for this type of home, it may be more difficult to sell, take longer to do so, and the sale may not result in the best price.

What if you are planing to extensively renovate your existing home? Are you renovating in order to derive enjoyment from the new features or are you renovating in order to sell the home at an increased price? Unfortunately, not all home improvements are equal. The Appraisal Institute of Canada maintains statistics on the value of many different types of home improvements. These statistics show that the return on investment of some home improvements can approach 100% while other “improvements” can actually result in a loss.

Besides considering the reasons for the investment in home improvements, it is also worth considering the the subjective part of the improvement. For example, a Courtenay home owner is considering having their home painted and the kitchen re-done before selling it. The kitchen and master ensuite are two areas that are often the focus of home improvements in this situation. Done appropriately, they often result in a more “saleable” home and one that brings a better return on investment. However, just as is the case with the Cape Code home standing out like a sore thumb, home improvements can sometimes be over done. Consider a Courtenay home that is surrounded by other homes with moderately priced kitchens in them. Does it make sense to invest in high end improvements in this Courtenay home if the motivation is to sell the home? This is a difficult question to answer and one should be considered carefully before making such an investment. It is possible to “over improve” a home in some situations. When this happens, the return on investment can be not what is expected.

Personal taste also comes into play. If you love orange paint and you paint your house orange to sell, you may be disappointed by the response from potential buyers. Neutral colors are often a better choice if you want to appeal to main stream buyers. Personal taste is just that – personal. If your tastes are eclectic, your choices will be less appealing to buyers than if they were more mainstream. If your purpose is to sell, you may be more pleased with the results when you consider your choices from the eyes of potential buyers.

Conformity is also important when it comes to features. If most Crown Isle custom built homes in your Courtenay neighborhood have 3 to 4 bedrooms but your homes only has two, it may lose appeal in the eyes of many mainstream buyers. It is important, therefore, to know what the norm is in your neighborhood, especially if you are considering a major home improvement investment.

Consistency is another important consideration. Does your home flow well? By this I mean is it consistent in terms of its style and finish. If it is a mash up of all sorts of colors that do not belong to the same color group, or of different styles, its value in the eyes of buyers may suffer. For example, there is a white refrigerator in the kitchen right beside a stainless steel stove. When colors and styles do not go well together the impact is obvious to most people.

There is no need to contact a Courtenay realtor to discuss Courtenay homes for sale. If you are looking to sell a Courtenay property, Contact Brett Cairns of RE/MAX Ocean Pacific Realty.

Should I Sell my Comox Valley Home Myself?

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Should I sell my home myself?

This is a question that a number of sellers in the Comox Valley real estate listed through realty agents market ask. When asked, most sellers who ponder this question do so in order to save the commission.

Here are a few perspectives on this issue. First, the commission. Comox Valley real estate agents work on a commission basis in British Columbia. This is not by choice. It is the way the market currently works. Given a choice many agents would likely choose to bill clients by the hour for the professional services that they provide. Good real estate agents provide people with many real estate services for which they do not get paid. These professionals only get paid when they receive a commission. Having said this, they pay for many things, and incur many expenses, of which most people are not aware. In a future blog I will touch on some of these. For now, let’s get back to the commission.

Comox Valley real estate commissions are generally split between the realty selling and buying agency. The real estate agency is the business with which the real estate agent is under contract. The commission is then further split between the agency and the agent. If there are fees such as referral fees, they are taken off of the commission that is paid to the agent. After expenses and tax, the real estate agent is left with an amount that can be far less than the overall commission paid by the seller. Remember, the agency employs people to help with things like coordination with the local real estate board, retrieving information for agents, and coordinating with the offices of notaries and/or lawyers. While clients deal with the individual agents, other people are involved in the overall process to make sure it works as smoothly as possible. Some Comox Valley agents may also employ assistants who they also have to pay.

Some professionals do “pro bono” work – professional work undertaken voluntarily and without payment, or at a reduced fee as a public service. To stay in business, however, real estate professionals, like anyone else, need to be paid for the services that they provide. In the Comox Valley real estate profession, the type and quality of service can vary dramatically among different real estate agents. It is important, therefore, to interview several before entering into a business relationship with them.

Comox homes now offered for sale in a sellers’ real estate market can be quite different than selling a home in a buyers’ market. If a home seller has had lots of experience selling in a variety of markets, they will understand the differences. As well, they may be able to adjust their selling strategy and plan to the market with which they are faced to sell their home.

Marketing a Comox Valley ome today is a different proposition than it was even 5 years ago. While some traditional methods still work, other methods are becoming less effective in the world of today, and some are expected to become less relevant in the world of tomorrow. It is important for a real estate agent to keep abreast of the changes. As a seller, I would want to know how they do this. Do they try and learn the newer, more effective methods themselves? Do they do this by self-study or by trial and error? Do they take advanced marketing courses? Do they keep current? Do they contract with professional marketing firms? Good questions to ask if you are thinking about selling a home yourself. How do you do this?

Comox Valley Real Estate is a highly regulated industry. There are many laws that currently regulate different aspects of real estate. While preparing for a presentation to a seller, I recall compiling a list of some of the real estate laws that could affect a real estate transaction in British Columbia. I came up with a list of 38 real estate related Acts fairly quickly. Given how frequently laws can, and do, change it would be prudent for any seller to be familiar with some of the more common laws relating to real estate. By law, Comox home sellers have obligations, for example, related to disclosure when selling a home. Clearly, real estate agents do not give legal advice. However, competent real estate agents stay current on these laws so that they are in a position to know when to recommend to a client to seek legal advice. Competent real estate agents are also trained to know how to write a legally enforceable contract. As a private seller, how well prepared are you to deal with these types of issues? When nothing goes wrong, these types of issues may not surface and become issues. When something goes wrong, however, they may surface and cause grief.

The Comox Valley real estate market, marketing, and legal aspects of selling real estate are only three of 15 that I can think of that a Comox Valley home seller who is planning to sell their home themselves should think through. If you are thinking of selling a home yourself in the Comox Valley, take a few minutes and come and talk to Brett Cairns of RE/MAX Ocean Pacific Realty.

For Sale by Owner in a Buyers Real Estate Market

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A Comox Valley For Sale by Owner is a phrase in real estate that is synonymous with a desire of some homeowners to sell their homes without having to pay a commission to list and display Comox Valley properties and the listing agent. At first thought, this may seem like a sensible thing to do. Why pay someone else to provide you with a service when you can do it yourself? After all, some people repair their own cars, and in doing so, avoid having to pay a mechanic to do so. But, is there a difference when it comes to the services provided by a professional? Do you go to a lawyer for legal advice and do you go to a doctor for medical advice or do you do to the internet so that you can avoid paying for these services when you need them? When you have the time, knowledge and skills to do something yourself, why not? In terms of real estate, what happens when the real estate “sale” goes wrong and the buyer sues the seller? Why did the founder and former CEO of ForSalebyOwner.com (Colby Sambrotto) turn to a licensed real estate broker in 2011 to sell his home when he was unable to sell his own home? Does a good, competent, real estate agent provide value in the home selling process? Perhaps they do.

The Comox Valley Real Estate market is currently a Buyer’s Market. As of the end of March, total inventory was up about 4.4% over last year, but sales were down about 10%. Single family home inventory was up about 1%, but sales were down about 22%. Through most of April, new listings continue to significantly outpace sales. For many homes it is not whether or not they will sell close to their asking price, it is whether or not they will sell at all. In some price ranges and circumstances last year, fewer than 10% of homes sold. If you need to sell your home in this type of market, would you not want to increase your probability of doing so? If a Comox Valley realtor lists your home but does not sell it, you pay them nothing so they take all of the risk. If it does sell, you pay a commission on the sale. Is it better to have sold and have paid a commission or not to have sold? Only you can answer this question. This type of market can be difficult for sellers unless their homes are prepared, presented and priced within a strategy and plan appropriate to the market. A competent real estate agent should be able to provide this kind of advice to a seller. The challenge is to find such an agent knowing that real estate agents are not all the same nor do they bring the same levels of education, training and experience to their profession.

So, if you are thinking of dealing with your real estate listings in the local community of Comox yourself, ask yourself the following questions:
Do I have a good appreciation of the laws that apply to real estate transactions in British Columbia including those related to property disclosure and representation?
Do I know when to seek legal and other professional advice when issues come up for which I do not have the knowledge and expertise to deal with?
Do I know how to write a legally enforceable contract that will stand up in court if things go wrong?
Do I have access to all of the real estate contract clauses and conditions that I may need to use to respond to an offer?
To whom do I turn for advice when I receive an offer containing a clause or condition that I do not understand?

There are at least 10 other fundamental questions I would ask myself if I were considering the sale of my own home. By the way, as a real estate agent, I would not sell my own home. Beyond the basic questions mentioned and alluded to above, what about other questions such as those on preparation, presentation and price? Do you understand the elements of each? In terms of price, will you base your list price on what you want or need or will you base it on market value? Do you know how to estimate market value? Do you understand pricing strategies to be effective in this kind of market? Do you understand how to respond effectively if the market changes?

If you live in the Comox Valley and are thinking about the Comox Valley For Sale by Owner option, it is a good idea to think through all of the pitfalls and risks before making such a decision. If you need help to sell your favourite homes for sale in the City of Courtenay, contact Brett Cairns of RE/MAX Ocean Pacific Realty for an appointment. By investing a bit of time with Brett, you may just find that you receive valuable information that you do not already have.

What are 6 Comox Valley Home Selling Tips?

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Selling a Comox Valley home can be a daunting process for someone who has not done it before. There are a number of phases that a Comox Valley homeowner will go through that should be understood to avoid surprises down the road. This blog is not intended to provide advice on how to sell a home. Instead, it aims to provide general information on the process that a person can expect to go through to sell a home.

The first phase is one that I will label the Preparation Phase. In this phase, a Comox Valley home seller will decide to sell their home. During this phase, the seller should consider a number of things such as home preparation, presentation and price. They should also be aware of the effects of their local market on their home, and a number of other things before listing their home for sale.

Phase two is the Listing phase. Having properly prepared and presented the Courtenay real estate listing, the real estate seller will need to decide when, and with whom, to list the home. While some sellers attempt to do this themselves, most use a licensed Comox Valley real estate agent. While the agency (such as RE/MAX Ocean Pacific Realty – the one that I am affiliated with) is an important consideration, more important is the real estate agent since they are the ones that will be doing the vast majority of the work associated with listing and selling your home. Some people choose to enlist the help of a “Listing Realtor ®”. Note, however, that if a real estate agent describes themselves as a Listing Realtor ® , ask them about their sell to list ratio and about how many homes that they have found buyers for. Some realtors who describe themselves as Listing Realtors ® may merely list and market the home and then hope someone else will find the buyer. Others do more than that and some do much more than that. Know what to expect from the real estate agent before you list with them to avoid surprises down the road. This phase ends with the signing of a listing contract for a specific period of time. There is no such thing as a mandatory or minimum listing period. Having said this, the listing period may vary according to a number of variables and some real estate agents will have good reasons for accepting what they refer to as a minimum listing period. Remember that if they agree to list your home, they will be spending time, money and effort on it. When a real estate agent either accepts or declines a listing they should be doing this on the basis of a business decision made in that specific circumstance.

Next comes the Real Estate Marketing Phase. This involves marketing and advertising (yes there is a difference between these two actions) the home. The aim of this phase is to attract home buyers who will write an offer on one of the Crown Isle homes for sale. Over time the home should experience increased exposure to potential buyers. Some situations involve target marketing. As exposure is increased, requests should come in for viewings by potential buyers. If no viewings result over a certain period of time, it is time to ask why. Should viewings occur but no offers follow, it is important to know why. A listing with no showings generally means something. A listing with showings but no offers also has meaning. Understanding why this is happening. Often these situations can be traced back to the asking price but this in not always the case. There are a number of other reasons why this can happen. The marketing phase does not stop at the start of the next phase. When it stops will be related to the specific circumstances surrounding each home and local market.

Successful real estate marketing (combined with other elements) should result in the Offer Phase. A seller may end up with no offers, a single offer, or perhaps multiple offers, on their home. Each of the situations requires analysis and advice. When a an offer is received and presented, most offers will generally result in a counter offer or offers. In most cases offers come with specified conditions that involve “subject to” clauses. The aim of this phases is for the seller to end up with an accepted offer. To get to this result often requires back and forth negotiation between the buyer and seller (often represented by a real estate agent who represents the buyer and one who represents the seller). Note that in British Columbia, it is important to understand what is contained in the British Columbia Real Estate Association brochure titled Working With a Realtor ® (Designated Agency). This brochure explains the relationship between you and your real estate agent. Having an accepted offer does not necessarily mean that your home is Sold. If the accepted offer is conditional, it is necessary to get to the point at which conditions are removed in order to consider your home as sold. In a few situations offers may be made as unconditional offers and when accepted, you can consider your home as sold with a firm real estate contract in place.

The next phase is one that I will refer to as the Sold Phase. Why, you may ask, do I call this a phase? You can consider your home sold when an unconditional offer is accepted, or when an accepted conditional offer becomes unconditional. However, the sale must still complete. There is generally a period of time between when there is an accepted unconditional offer and when the sale is completed. Contacts can fall apart for a number of reasons and it is prudent to not rely on a sale completing until it actually does. Comox Valley Contracts of Purchase and Sale can be written in a variety of forms. Some do not result in title transfer at completion (such as an Agreement For Sale) and there are some that do not result in the seller getting paid in full at completion (such as a Vendor Take Back Mortgage). However, many Contracts of Purchase and Sale that are agreed between buyers and sellers do result in the transfer of title to the property and the seller being paid in full the purchase price that was agreed for the property.

While many people think that the real estate process stops at completion, I believe and practice another phase in this process called the Service After Sale Phase. I like to keep in touch with Comox Valley buyers and sellers to keep them informed of the current Comox Valley real estate market and to provide them other useful information should they need it in the future. As well, things occasionally happen after completion that require follow up action or advice.

While there may not be universal agreement on the names (or even the existence of all of these phases), it is important to understand that selling a home is a process. Sometime the process is straight forward and short. At other times, the process can be complicated and lengthy. Each home that is listed for sale will have its own unique circumstances and challenges. So too will the location and local real estate market within which the home is listed for sale. If you are thinking of selling your home in the Comox Valley, contact Brett Cairns of  RE/MAX Ocean Pacific Realty to discuss your real estate needs.

Do I Renovate My Comox Valley Home to Sell?

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Renovating Your Home to Sell?

A question asked by Comox Valley home sellers is “Do I renovate my Comox Valley home to sell?”. In today’s competitive buyers’ market home buyers are often looking for value and a “move in ready” home. In addition, many home buyers are looking for a home that has been updated in at least some of the key areas. As a home seller do you place your home on the market if it has not been updated? What are these key areas? What difference will it make? All are good real estate questions to explore in this blog.

A person’s home continues to be the most important investment for most people. On a scale of 1 to 100 recent surveys indicate that a person’s home is perceived to represent a value of about 77% compared to a rental property of about 57%, vacant land of about 56% and the stock market of about 42%. More than 60% of Canadians own homes. When homes are renovated, if selling is the motivation, it is important to understand what home buyers want and which renovations are likely to add the most real estate value.

Comox Valley home buyers can roughly be grouped into four different categories. Some home buyers are social. They enjoy spending time with friends and family, and having a park or community close by. They enjoy hanging around the kitchen while entertaining or sitting out on the back deck with friends. Other buyers are more traditional and they enjoy bright and sunny homes with lots of open space. Pleasure seekers enjoy things such as hot tubs, home theatre rooms, and recreation rooms. Urban dwellers want amenities nearby and they are often willing to sacrifice space for convenience.

Clearly it is impossible to appeal to all types of real estate buyers but it is possible to understand home buying tendencies in Canada. Overall, upgrades to the kitchen and appliances generally resulted in the greatest return on investment. An updated roof, paint and windows and bathroom were next most important. Flooring was also important to many buyers. Besides understanding what type of upgrades are important to most buyers, it is also important to realize that buyers are looking at specific price ranges.

Why is price range important? It generally establishes the quality of the upgrade that will result in the best return on investment. For example, people who are looking for Courtenay heart of the market homes for sale up to about 350K may be looking for kitchens with a fresh, clean and homey look. As a result, granite or quartz counter tops would not bring a substantial return on investment in these homes while these types of upgrades are almost expected in a home that sells for more than a half of a million dollars. Upgrade yes, but choose the quality of the upgrade based on the price range of your home.

In contrast, upgrades such as the removal of interior walls and the installation of hot tubs and pools may be more of a gamble. If you are planning to move an interior wall ensure that you know whether or not it is load bearing or not. It is also good to know whether or not it contains ducting, venting, plumbing and wiring. Pools may even result in a decrease in value in the eyes of many buyers because they do not want to loose the backyard space and have to deal with the increased maintenance. Other upgrades such a home theatre room may make no sense in a lower priced home but they may even be expected in a higher end home.

Some other homeowner real estate considerations are also be important. The first is: who will do the work? Will you hire a contractor or attempt to do the work yourself? Many buyers can spot poor workmanship so if you are going to do it yourself make sure that you have the right tools and ability to do it well. Your will also require a knowledge of local building codes to ensure that you do not violate any of them. Finally, obtain the required permits.

Painting can be a cost effective way to add value to a home. If you are planning to paint over existing paint, know what type of paint is currently on the walls and prepare it properly for the application of the fresh coat of paint. Flooring is a bit more complicated. The type of flooring and installation materials may affect the health of your family. Off-gassing (the release of chemical odours) can occur with some types of flooring, glues and sealers. It can take weeks or even months for this chemical release process to end. If this occurs and you list your home immediately afterwords, the effect on buyers could be quite negative even through the renovation may be aesthetically appealing. Bad odours in a home will turn off many buyers as soon as they walk in the door.

These are but a few of the many things to think about before planning to renovate your home. If you are considering renovating before selling your Comox Valley home and want to know more about what types of renovations can add value, contact Brett Cairns of RE/MAX Ocean Pacific Realty  for some insights on our local Comox Valley real estate market and the home buyers that are active within it.