New property listed in Yaletown, Vancouver West
New property listed in Yaletown, Vancouver West
New property listed in Hastings East, Vancouver East
3 Major Mistakes Vancouver Home Sellers Make - and How to Avoid Them
When undertaking something as legally complex as selling real estate, there are many missteps that can be made along the way, and many of these can cost you dearly, both financially and legally. This is why you want to have an expert working to represent your interests and advise you on protecting yourself throughout the process. In this article, we’ll discuss some serious mistakes you can avoid when selling your property.
1. Selling on Your Own to Save on Commission
While it may seem appealing to sell on your own to save money on real estate commissions, in many cases you may come out with less money in your pocket when going the FSBO route.
First, unless you’re a trained real estate professional with access to the local real estate board’s MLS system, you won’t have all the information you need to set an accurate list price based on the most recent sales data for comparable properties. Could you be leaving money on the table? Or, are you pricing your property higher than what the market will bear, making your property unattractive to potential buyers?
Access to the MLS for your home also means access to thousands of potential buyers and their agents who are searching on their behalf. This is like having a salesforce of thousands working to help market your home. In addition to the agents themselves, your property listing gets syndicated to thousands of realtor and brokerage web sites which gives you maximum exposure in your market area.
The majority of real estate buyers work with an agent, and those agents will expect a seller to offer a commission to bring a buyer for their property. If you sell on your own, your property will likely be overlooked by agents because there’s no commission being offered. If an agent does bring a buyer, the offer will likely be lower to compensate for the buyer having to pay their agent’s commission out of their own pocket.
Most importantly, when you take a DIY approach to selling your home, you don’t have a real estate professional in your corner to advise you on issues of potential liability – and in real estate, there are many. Not knowing what you’re legally required to disclose as a seller, how to handle tenancies when selling a property, or what clauses you should have in a contract to protect yourself are just a few of the ways you may become vulnerable to lawsuits or other financial liabilities down the line.
Don’t forget – when it comes time to negotiate, it’s always best to have an experienced professional working hard to get you the best possible sale price for your home.
2. Setting Your List Price Above Market Value
The old-school strategy of pricing a property high so you’ll have room to negotiate is a thing of the past. Today’s real estate buyer is savvy and does in-depth research online before making a purchase decision. That means they know what a property is worth and will overlook properties which are overpriced from the get-go.
Setting the correct price is crucial to make sure your property gets the most interest possible when it first hits the market.
If you set the price too high, you risk your home sitting on the market for an extended period of time. When this happens, the end result is typically a lower end sale price than you would have achieved had you priced the property properly at the outset.
When a home doesn’t sell after being on the market for a reasonable amount of time, this raises questions in buyers’ minds – what’s wrong with the property? Might the seller be unreasonable and unwilling to negotiate if we make a market-value offer? These concerns may prevent serious buyers from giving consideration to your property. Without adequate interest, to sell, you’ll need to look at adjusting the price later on. Statistics show that the final sale price of a property which was not priced well from the beginning is typically lower than it would have been if the home were priced correctly when it was initially offered for sale.
3. Not Completing a Property Disclosure Statement
While sellers are not required to complete a Property Disclosure Statement, there are compelling reasons to do so.
First, when a PDS is not available, or one is simply marked through and signed, this raises a red flag of suspicion for many buyers. What might the seller be trying to hide?
Also, completing a PDS serves as written evidence of information provided to a buyer about the property. This means it’ll be harder for them to make a claim about an issue later on if it was mentioned in the disclosure.
As a seller, there are many things to consider – getting adequate market exposure to sell your home for the best price, protecting yourself from potential liability, and knowing what disclosures you’re required to make. Working with an agent is an investment in the best possible result for you.
Are you considering selling your home? I’d be happy to help you determine the current market value of your property and discuss any questions you may have. Give me a call at 604-910-7777. I’m always happy to chat.
How to Buy Property in a Popular Neighbourhood
There’s few things more frustrating than knowing exactly what neighbourhood you want to live in, being ready to make a move, and there being no homes for sale in the area. It may seem as if homes in your dream neighbourhood get gobbled up by buyers the moment they get listed.
It is a real estate reality that homes in desirable, in-demand neighbourhoods tend to sell quickly. Savvy, confident buyers can swoop in and make an offer before others have a chance to even view the property. But, that doesn’t mean you’re destined to miss out on living in the area you love, or to hope for a lucky break. There are some things you can do now to improve your chances of getting into a home in that perfect-for-you neighbourhood.
Step 1 – Find Out What You Can Afford
The first thing you’ll want to do is be very clear about what kind of home you can afford. You’ll need to sit down with your mortgage broker or lender and get an assessment of your current situation. This will help you know what is realistic in terms of price range for your dream home. That way, when a home comes up in the perfect area, you’ll be able to act quickly if you’re interested.
Step 2 – Get Your Current Property Ready to Sell
Next, you can take some steps to get your current property ready for sale. That doesn’t mean you need to list it right away, but if you need to do so quickly, you’ll be in a better position to do so. Some things you can start on include cleaning up and decluttering, getting repairs done, and sprucing up your home in other ways that will make it attractive to buyers.
Step 3 – Chat With Your Real Estate Agent Now
Last, but not least, you’ll want to sit down with your real estate agent to discuss what you’re looking for and what neighbourhoods are your preferred areas. If you’re looking for something in an area where properties move quickly, you may not even get a chance to find out about them before they’re already sold. If I know what you’re looking for, I can monitor new listings in that area and let you know about them as soon as they come on the market. This strategy will greatly increase your chances of getting a property in your dream neighbourhood before someone else does. So, if there is a dream neighbourhood you’d love to get into, give me a call.
As always, if you have any real estate-related questions, I welcome you to give me a call or send me an email. I’m always happy to chat and offer advice any time.
Discover Kitsilano - Pt. 1 - Arbutus Walk O'Keefe Building
Check out this first video in my new series Discover Kitsilano.
Today, we talk about the historic Arbutus Walk O'Keefe Building at the corner of 12th Avenue and Yew Street in Vancouver.
Check back soon for the next video in the Discover Kitsilano video series!
Top Things Your Realtor Should Do When Listing Your Vancouver Property
There are over 100 activities that a listing realtor should do to prepare and market your property once you've signed a listing agreement.
In this first video in my series on Listing Activities, I'll discuss the first three crucial activities that a real estate agent should do when listing your home for sale.
If you have any questions about preparing your home for sale, feel free to reach out and connect with me by phone at: 604-910-7777 or by email at: firstname.lastname@example.org
Christmas in July OR is it ?
BC Assessment notices have arrived in the mail, giving some homeowners a big smile and a bit more spring in their step (increased property taxes aside), while others wilt and lament at a modest gain or decrease in assessed value.
Think of the assessed value instead as something akin to a weather forecast, spanning far larger and more diverse areas than the unique ecosystem that is your neighbourhood, your specific street, or your specific property. A weather forecast made the previous July, not the previous week. As this is when assessed values are locked in, a full six months prior to the notices being mailed out.
For this reason, provincial property assessments should never be solely relied upon as any sort of relevant indicator of true market value for the purposes of purchase, sale or financing. So, is this a Christmas present in July? OR is it?
Before, I explain the types of appraisal here are some fun facts you may or may not know;
- In BC, anybody can appeal anything. Keep this in mind that if you ever get in a dispute with your neighbor, appeal their assessment to get it increased!
- The total value of the roll in BC for 2017 increased 25% from 2016 to 1.68 trillion
- Despite this, only 1.36% of properties were appealed. This is consistent with previous years as annual appeal rates in BC are usually between 1% - 1.5%.
The Two Kinds of Appraisals
It is important to note that there are two kinds of professional appraisals. There is the marketing appraisal, such as one ordered by a seller. And there is the financing appraisal, which is done so the bank is satisfied the house is worth what the buyer and seller have agreed it’s worth. The financing appraisal is a less in depth review and more a matter of answering the question: Is this property worth the agreed-upon purchase/sale price?
A marketing appraisal goes deeper (and costs more), but a lender is not concerned with the actual market value over and above the purchase/sale price. A lender just wants the simple question answered. It is a rare day that the appraisal for financing has a value that differs significantly, if it all, from the sale price. Therefore one should not be surprised if, when buying a home, they find that the appraisal comes in bang on at the purchase price. As they do 99 per cent of the time. The one per cent of the time that the value is off, it is almost always a private transaction where the seller has had no professional guidance at all and has inadvertently set their price below market, by relying on something as inaccurate as their BC Assessment document.
In summary, rather than relying on your out-of-date BC Assessment for your home’s value, you should gather professional opinions from real estate agent(s) and an appraiser – these are the people with their feet on the ground and their heads in the game.
3 Tips For a Stress-Free Move
Moving can seem like an overwhelming process, but a little preparation goes a long way in mitigating the stress. Check out the following strategies which can help your move go as smoothly as possible.
Break the Process Down Into Smaller Steps
Any large undertaking can seem difficult to get started on at the outset. The best way to know where to start is to break the whole process down into smaller tasks. First, follow a timeline for what needs to be done 6 weeks out, what can be done only a couple of weeks from your move date, and what needs to be top of mind on moving day. Our Homebuyers Moving Checklist is a great tool to help you determine when you need to do each task to keep on track and make sure nothing is missed.
Hire Professional Help
Sure, you could declutter, pack, and move everything yourself, but do you really want to? If you’re pressed for time, or have physical limitations which prevent you from doing the work yourself, hiring a professional to help may make more sense than handling everything yourself. Companies who specialize in these services can often get the work done in less time, with less hassle for you.
Keep the End Goal in Mind
When you’re in the throes of packing and moving, it can be easy to forget why you’re going through the process in the first place. However, keeping the end result in mind can help you stay motivated to get through each step along the way. The excitement of moving into a new home, and all the exploration and adventure that can come with it is something to look forward to as you tackle each task on your checklist.
Need Help with Your Move?
If you need help finding movers, cleaners, or other service providers, I would be happy to refer you to qualified professionals from my network of screened companies. Contact me by phone at: 604-910-7777 or by email at: email@example.com to discuss your needs.