Comox Valley homes are available in a broad range of prices and values. When you look for homes what do you focus on? Do you look at price as a deciding factor? What about value as a deciding factor? The two concepts can be quite different when looking at specific types of homes. For example Crown Isle homes with a view of the Glacier may be among the most expensive but they can also represent great value because of the way that they are built. Let’s look at some issues related to this real estate consideration.
According to the International Monetary Fund (2010), World Bank (2009) and CIA World Factbook (2010), Canada’s Gross Domestic Product (GDP) is ranked number 14 in the World when based on Purchasing Power Parity calculations.On the 17th of June, the International Monetary Fund adjusted its 2011 GDP expansion forecast for Canada upward slightly to 2.9%. Clearly, Canada’s contribution to the world economy is significant.
Within Canada, according to a 2008 House of Commons Report (Standing Committee on Industry, Science, and Technology dated 17 June 2008), Canada’s services sector accounts for almost 70% of the GDP and employs more than 75% of Canadians. Statistics Canada considers real estate to be a part of the 15 service-producing industries listed in the North American Industry Classification System. Accordingly, homes and properties are very important to us in Canada and us in the Comox Valley. Waterfront homes for sale are among the most sought after.
Ben Rabidoux, a college professor and financial advisor based in Canada, provided an excerpt of his forthcoming book The Role of Housing in Boosting GDP, on his blog The Economic Analyst. He provides statistics that show that the construction of residential real estate has accounted for 6.5% to 7% of GDP over the past 5 years. His figures are consistent with those of the Bank of Canada which state that residential investment has accounted for 6 percent of GDP on average over the past 30 years. Perhaps more striking are the statistics that show that the contribution of the Financial, Insurance and Real Estate industries has increased from 19% to more than 23% over this same period; striking because of the impact of changes in the housing market on all of these industries.
Based on the above statistics it should be clear that real estate is important to Canada and the health of its economy. For most Canadians, real estate is their most important investment. Comox Valley real estate investment is no different. Why then, do some people take risks with this investment when they decide to sell it?
There are risks to almost everything we do in life, but risks can be addressed and reduced with proper planning, and by hiring the right professionals for the job. Would you try to treat yourself if you were dealing with an important medical issue? Would you try to sell your home yourself if you did not have the requisite education and training, and an up-to-date understanding of the legislation that affects real estate transactions? If you do what are the risks? Comox Valley real estate agents are licensed professionals who are educated and trained in real estate transactions. While all have to meet a minimum standard to become licensed, there are differences, in terms of the level and types of services, that they provide to clients.
When a person searches for a real estate professional to provide them with the services necessary to sell their home, do they look for someone based on a cost-centred or a value-centred approach? A cost-centred approach focuses on the lowest cost. However, lowest cost does not necessarily mean, and often does not mean, best value, or most effective. For example, if three different real estate agents all charge the same fee, it will be the one who provides the best, and the most effective service who will provide you with the best value.
When different Comox Valley realtors provide different types and levels of service for different fees, determination of best value will be more difficult to calculate, and it will often depend on things like the success rate of the person being hired (does the person just look for Comox Valley real estate listings and hope others will find a buyer or does the person focus on selling what they list?), the quality of the services rendered, the person being available when you need them(what hours and days are they prepared to work?), and the attention given to you (do they return calls and emails promptly when they are not with other clients?). Ask questions about exactly what services you will be offered, and read the fine print of the contract before you sign it. If something in it does not make sense, clarify what is meant and why. Perhaps even more important – will they tell you what you need to hear to sell your home, and not just what they think you want to hear for them to get the listing? Will they high ball the price to get the listing, and then work you down on the price because it is priced too high to sell? Being better informed helps be better prepared. Comox Valley home buyers and sellers can both benefit from a great local realtor.
Lowest cost or best value? The choice is yours. Do your homework before selecting a real estate professional. Determine what is important to you. Do you need to sell in a specific amount of time? Think back to previous experiences. How many times in life have you found that you only get what you pay for? What is true in life is also generally true in real estate.
If you are looking to buy or 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.
by Brett Cairns