What Pricing Your Home Correctly Can Save You

Buying a Kelowna home? Get a full home search

Selling your Kelowna home? Get a free home evaluation

I just came out of a really cool meeting with the team and we were throwing different ideas around about pricing a home aggressively to sell quickly and for the most amount of money in this market.

A really neat stat that we figured out that I want to share with you is that homes being sold inside the first 30 days of being listed (which is becoming more common) are garnering over 99% of their asking price. When it comes to negotiation, sellers are in the driver’s seat. It’s a seller’s market, and a home selling in the first 30 days - if it’s new and fresh - is going to sell for full price, and maybe more.

How does that contrast to a home on the opposite end of the spectrum? What we’ve found is that homes either sell in the first 30 days or after 90 days. The reason for this is that it typically takes the seller 90 days to agree to a price reduction. I’ve looked at all the sales that have happened in the last couple months for homes that lasted 90+ days on market and found that these negotiations had a much different story to tell. Namely, people whose homes sat on the market for that period or longer got only 95.9% of their list price. That’s not 95.9% of the price they started at, but rather the reduced price that they got.

The reason for this difference is the negotiation position the seller had when they started. Even though they reduced the price, they’re still an old listing. This gives the buyer an element of control. Isn’t that interesting? Price the home properly, and you net an additional 3%. With average home prices now close to $600,000, just that difference in coming out strong versus have a pie-in-the-sky number can save you $20,000 in the negotiations

I hope you guys found this tip helpful. If you have any more questions, just call me or shoot me an email.

Is Using Professional Photography Important when Selling?

Buying a Kelowna home? Get a full home search

Selling your Kelowna home? Get a free home evaluation

Today we are back to answer another great question. The one we have been hearing a lot lately is: “Is it important to use professional photography when selling my home?”

Back in 2008, we were one of the first around to use professional photography with our listings, and our trial and error through the years has allowed us to really perfect our process. What we found was that initially, the photos made a big splash and these beautiful photographs would allow our listings to get a lot of activity. However, we also found that the homes were not selling as fast. 

This was because the photos were so good and so appealing that the actual properties were a bit of an oversell, which caused a letdown for buyers when they got there. We have learned from that mistake and have gotten much better with our photos since.

It’s still important that all of our homes have photographs with high resolution, that are framed properly, and capture the right light, but are not oversold or doctored too much. You will still see agents out there using these very fancy looking photos, and they are always too good to be true.

It's hard to get someone interested in a home when the first feeling they have upon arriving at the front door is disappointment. You want your photos to be appealing, but representative of the property. 

If you have any questions for us about photography, or about anything else real estate related, give us a call or send us an email. We use the best photographers in the business, and would be happy to share our knowledge and experience with you. 

What You Don't Know About Kelowna Real Estate

There are many great Kelowna area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at 250-717-3133 for a FREE home buying or selling consultation to answer any of your real estate questions.

Welcome to our final video blog of 2014! It's been a fantastic year for real estate in Kelowna and we're looking forward to yet another great year in 2015! Today, we continue to answer the questions many of you have sent us recently.

What are some of the up-and-coming Kelowna neighborhoods in 2015?

The answer to this question comes from a magazine I subscribe to called Canadian Real Estate Wealth. According to them, Downtown Westbank is poised to be the best area to invest in come 2015. The reason for this is the revitalization of downtown, which is going to completely change how that area is perceived and, of course, the value of those properties. Whether it takes a year or five years for the revitalization plan to be executed, anything in or around that area represents great value.

Why don't more clients take advantage of the home renovation plan?

This is a really great question because I think this plan could help a lot of people. If you have 10% to put down on a home you're moving into, you can apply to have the bank put down an additional 10% for uses such as new kitchens, bathrooms, finishing a basement - anything that adds value. All you need is 10% of the property's value when you buy and the bank will finance renovations that will ultimately add tons of value to your property. If you can scrape together enough money for that down payment and still want to renovate, this is a fantastic option.

When doing a property flip, do you hire out the renovations or do them yourself?

This might be because I'm completely useless with a hammer, but I always believe you should hire professionals to do your home renovations. For one, you don't really end up saving a lot of money because if the job is not a 10 out of 10, it's going to cost more money in the long run once you go to sell it. Additionally, doing it yourself can take three or four months, whereas a professional contractor could probably get the same job done in two or three weeks! Lastly, while working on home renovations yourself, you're costing yourself money by taking time away from work!

We want to thank Leigh, Mike Huber, and Andrew for the fantastic questions! If you would like to discuss these topics in more detail, or have questions of your own, don't hesitate to reach out. I would love to hear from you and make sure all of your questions are answered! 

Are You REALLY Ready to Buy?

There are many great Kelowna area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at 250-717-3133 for a FREE home buying or selling consultation to answer any of your real estate questions.

At Vantage West, we take your questions and concerns very seriously. Today, we're going to continue answering some of the questions you have sent in:

Rob asks: Where are the buyers coming from right now?

Right now, 50% of all the transactions that take place are happening from people inside of our borders, locals moving from one property to another. The next big chunk of the market is Albertans, who represent about 25% of the sales. The next big chunk is the Northern British Columbia component - these are our resource workers who can live anywhere, but choose to live here because of the direct flights up to Fort McMurry. The other 10% to 15% of buyers are spread out between people from all over Canada, as well as international movers.

Randy asks: How can I increase my chances of getting multiple offers when selling my home? If I'm successful, how can I give myself enough time to review all the offers?
It's very common to see multiple offer situations in our current market. What we're doing to give that a higher chance of happening is setting a perfect price from the start. Then, we wait about a week before hitting the MLS to get pent-up demand for the property. We get really good pictures and staging before waiting to show it. Once the weekend hits, we use it as the first opportunity to show the home. Once we have that pent-up demand and people are starting to talk about making an offer, we let everyone know that we're not accepting offers until Monday night. This strategy creates an auction effect, making sure everyone has a chance to get an offer in and, usually, pushing the sales price above the original asking price.

Dan asks: Where do I find a complete list of distressed properties?

Going back to 2009 through 2011, there was a huge list of distressed properties, often with 150 or more homes for sale. That list has shrunk to about a third of that size, but we still have a great list of foreclosures, distressed sales, estate sales, and other great deals. If you would like a copy of that list, we could set you up to get automatically notified each time a new distressed property hits the market. If that's something you're interested in, just drop us a line - we would be happy to set you up on that.

If you need anything or have any other questions, keep them coming. I'm going to keep answering them here on our video blog, so you can make informed decisions in our marketplace. Thanks for the great questions, and let us know what we can do to help you maximize your real estate experience!

What Are the Most Pressing Questions in Real Estate?

There are many great Kelowna area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at 250-717-3133 for a FREE home buying or selling consultation to answer any of your real estate questions.

Recently, we sent out an email requesting you to send us a real estate question you've had on your mind. The response was fantastic, so today we'll answer some of the more pressing ones.

You offered to buy my house if it doesn't sell in 29 days - how do you set the price? Am I going to lose money?
This is a great question. Our 29-day sale guarantee starts with an appraisal and we set the price at the market value the appraiser gives us. We are confident that the combination of the right price and our state-of-the-art marketing will get your home sold. If it doesn't, we'll buy it at its appraised value.

What is the state of the market?
We get this question more than any other, and the answer changes along with the market. We're six years from the 2008 market crash and yet prices have not returned to 2007 levels. It helps to think about market cycles: from 2008 to 2012 we were in a recession, or a slump. From the end of 2012 until now, we've been in recovery mode. After this phase there will be a boom. What we're starting to see is an incremental price increase - in the last year, we've seen an appreciation rate of about 5%-6% and we expect to see an appreciation rate of about 6%-7% next year. When looking at the market from this vantage point, you can expect a booming market by the end of next year or the beginning of 2016. That's when we'll see 2007 prices again!

Is there an industry-wide consensus on how much longer rates will remain this low?
As I'm sure you're aware, interest rates have been at all-time lows for the last couple of years. The Bank of Canada meets about eight times a year to discuss many things, interest rates among them, and their next meeting is December 3. It's within the realm of possibility that interest rates will go up after the next meeting. Typically, they look at economic indicators to see whether it's safe to raise rates, and our market seems to be doing quite well right now. If rates rise even a quarter of a point, it could cost you. If you have a $400,000 home with an 80% mortgage, going from 3% to 3.25% would change your payment by roughly $40. That wouldn't much affect you if you have a fixed rate, but it will greatly affect those looking to purchase a home. That quarter of a point rise will cost the buyer as much $10,000 in spending power!


We're here to keep you in the loop, so you can make smart real estate moves when the time comes. If you would like more information on the topics covered today, or have another question you would like us to answer, don't hesitate to give us a call or shoot us an email. We would be pleased to assist you!

When Is the Best Time to Sell Your Home

There are many great Kelowna area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at 250-717-3133 for a FREE home buying or selling consultation to answer any of your real estate questions.

Most people associate the great weather, chirping birds, and shining sun of spring with a successful home sale. While it's true your home often looks fantastic during the spring season, it's not necessarily the best time to sell.

The problem with the spring selling season is everyone is putting their homes on the market at that time. This means you're competing with up to five other homeowners at a time, which could force you to price your home tens of thousands of dollars less than you would have otherwise.

In the fall and winter you certainly won't get as many showings, but the showings you do get will be from highly qualified buyers. These buyers are also serious about getting into a home because many of them are trying to get moved and settled before Christmas. Since there are qualified and serious buyers on the market and little competition among sellers, the fall is an ideal time to try to get top dollar for your home.

It's a simple supply and demand type situation. With fewer sellers and a pool of quality buyers, there is higher demand for your home, and that demand will ultimately help you get a higher price for your home. With the market still going strong here in Kelowna, there is no better time to put your home on the market.
If you want to take advantage of these great conditions, don't hesitate to reach out to us. We would love to make your real estate experience a successful one!

The Benefits of Rent-to-Own Property

There are many great Kelowna area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at 250-717-3133 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today, we're at our brand new location with some big news: our old location on Ellis Street will now serve as the storefront of our new rent-to-own division. Many people have asked us, "What is rent-to-own all about?" Today, we answer the question. 

Rent-to-own, when done right, benefits both the buyer and seller. We are the only licensed brokerage that has entered this area of the market.  

It works for people who are thinking about making a move, but bought their home at peak price and don't want to sell it for less than they bought it for. It allows them to price the home into the future, for market appreciation to take the value up to where they need it to be in order to sell it. Rent-to-own is also great if you're looking to rent your home, but are apprehensive about what could happen to your property - vacancies, small deposits in case of damage, bad tenants, etc. In this situation, you're renting to people who will take care of your home like it's their own because eventually it will be. From a selling standpoint, it makes sense - you generate cash flow with your home, you don't have to deal with the hassle of maintenance and management, and you have a solid deposit in your hand.

For buyers, rent-to-own is a great option if you can't afford to buy today because you can address whatever credit problems you might have and still have a place to live. It gives you time to get your credit in good shape and figure out your financial picture so you can buy down the road. It's a great opportunity to crystallize a future home price and get ahead of an inclining market, build equity, and get the feeling and experience of home ownership from the day you move in.

Rent-to-own combines quality buyers who for one reason or another aren't quite ready to make a purchase outright, and sellers who have an economic incentive to rent their home. The horror stories about these kind of properties are typically from situations where unlicensed people are entering into rent-to-own agreements - that's when things tend to go wrong. We pride ourselves on having an airtight, foolproof system to ensure these deals close and everything goes well for both the buyer and the seller.  

Does rent-to-own sound right for you? We'd love to sit down with you and help you decide. In a short consultation, we'll hash out the pros and cons of your specific situation and determine what's right for you. If you have any questions you would like to ask before meeting with us or would simply like some advice on Kelowna real estate, don't hesitate to reach out to us. We're here to make your life a whole lot easier!

How to Price Your Home to Get Top Dollar

There are many Kelowna area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Payment Calculator so you know what buyers will pay for your home in today's market. You may also call me at (250) 717-3133 for a FREE home buying or selling consultation to answer any of your real estate questions.

Pricing Correctly Counts...

If you've ever been a client of mine, you know how absolutely important I think it is to price your home correctly right out of the gate. I'm going to go over a few different reasons why I think this is absolutely critical for getting a high sale price on your home.

1. The Quicker You Sell, the More $$$ You Get: The first two weeks that your home is on the market are by far the most critical period for getting top dollar. Some realtors will tell you that for every day your property is on the market after these two weeks, you could be losing money on your home every day. Buyers will see that your home has not sold, and begin to wonder why. This will cause them to question the value of your home. 
2. Buyers Shop for Best Value: Buyers will shop around to find the best value for a home, just like they will for any other commodity. If you price your home too high, then you will be aiding the other more attractively priced homes to sell. Don't sell other peoples' homes!
3. Appraisals Can Hurt You: If a buyer likes your home and then has a bank do an appraisal and the appraiser finds your home's value lower than what you're selling it for, then that can be a major problem. What I recommend you to do is to have an appraisal done prior to listing your home. There are three reasons why you should do this:
• It's a Marketing Tool: If you list your home lower than what the appraisal value is, then buyers will know they are getting a great deal and they will swarm to your property.
• It's a Negotiating Tool: Having an appraisal to refer to during the closing period will help to protect your equity.
• An Insurance Policy: Getting your own appraisal done will ensure that your home does not run into any problems when a buyer has a bank do an appraisal on the property. You can reference your own appraisal and defend your asking price without question.

Ultimately the decision of where to price your home is up to you. My job as a realtor is to facilitate the market. Thanks to technology, I can do it better than ever before. I can track the market's response to your listed property in real-time, and this allows me to see how many realtors sent the listing to clients, and how many of those clients responded positively to the listing. This allows me to stay way ahead of the ballgame and I can make any adjustments necessary to prevent your listing from going stale.

I just want everyone to know that they should not be adopting the old school method of asking a high price and then going lower until offers are made. As we know, the longer you are on the market, the weaker your negotiating position is.

Hopefully this information has been helpful to you. As always, if you need any assistance with buying or selling real estate in Kelowna, feel free to contact me at (250) 717-3133 or email me at info@vantagewestrealty.com