Did you know that there is one simple number that can help you choose your next Realtor?
The statistic that I believe is over looked and should be front and centre for sellers is what I call the "Listings Taken versus Homes Sold" ratio. This is how many listings does the Realtor have (or taken) versus how many they sell over a set period of time.
In 2010, I sold 40% of the listings I took. Our board average for 2010 was 7%. Does this mean I was 5 times more productive than the board average? I guess it does.
Taking listings (or selling your listing skills) does not necessarily mean that you can sell the listing - it merely means that you are good at selling yourself - which is also important. Selling listings is much more difficult and the ratio is the relationship between a promise to sell and the act of actually selling. After all, this is what you (the client) are "actually" hoping for - to sell your home soon and with fortune, close to your asking price.
In 2010, 93% of listing clients in my board area were unable to sell. This success rate is not a wonderful number. A heart surgeon with this success rate would thankfully not be employed long, a painter or skilled tradesperson with this success would likewise find it difficult to make a living. However, Realtors must work in this environment and we must find a way to succeed.
I have some unique techniques that I use with my clients and I rely on my fellow Realtors for support. At RE/MAX, we work together to help price and analize specific properties on tour. After showings, I speak with the showing Realtor and we weight the features and benefits with the needs of the buyer against the price. This pattern of work creates a cycle of feedback and data. And, we can use this data to help sellers.
The bottom line is that I believe the most important factor affecting my listing to sales ratio can summed as follows.
"honest advice based on my experience, analytical abilities mixed with gut feelings"
If you were looking for something more scientific, sorry. If you are looking to sell your home, call me anytime.
Dean
Thursday, June 23, 2011
Monday, June 13, 2011
Problems of Over Pricing...
In today’s Buyer’s market, overpricing has a profound impact on the success of selling property. In a Buyer’s market, it is not “when” your property will sell, it’s “if”.
Most Seller’s do not intentionally over price their homes. Often, as market conditions change, sellers and realtors can be caught off guard. If recent “sold” activity is not heeded, existing listings can quickly become over priced.
How do you know if your property is over priced? (if any apply)
1. After 4 weeks on the market (when working with a top producing agent), you have not had any showings or interest calls.
2. You have had showings but no offers to purchase in 90 days.
3. Homes in your area are selling even though they do not have the features equal to or greater than yours.
4. Feedback from your Realtor and experienced/trusted Realtors who have viewed your property recently suggest that the price is to high compared to the competition.
5. It didn't sell - in 90 days.
How does overpricing hurt the chances of your property selling?
1. Your property can become stale and buyers may ask why has it been on the market so long.
2. Realtors and buyers may assume that you are not serious about selling and overlook your property in favour of other, lower priced ones.
3. Buyers overlook your property because they do not want to waste their time.
4. Buyers and Realtors do not place offers because they fear confrontation and the stress of failed negotiations.
5. If your home has unique features you may get an offer but often it may be a low ball (low offer price).
5. It is hard to get Realtors and buyers excited about showing your home.
6. Financing and appraisals become difficult and even if a buyer is willing to pay your price, the bank or lender may not finance the negotiated price.
What options do you have if your property does not sell at the price you want?
1. Ask yourself, what price do you NEED. Price your property within 2% of this "lowest" need price.
2. Take the property off the market.
3. Systematically drop your price until it sells.
Which ever action you take, be sure to speak your Realtor and discuss your options openly and honestly. The biggest make I see is when Sellers need to sell yet they do not address the current market conditions. If you listed the property 6 months ago, the CMA value you have is way out of date and you need new data. Get your Realtor involved and seek out their true advice.
Still having trouble? Here are some parting thought processes for you.
All markets are relative. This means that if your property value has declined, so has everyone else’s.
Don’t take it personal. It’s just money—they print more of it everyday.
QTR. Ask yourself, how important is it to sell your property and if you did, what would you do with the “Quality Time Remaining”. Holding out for a high price is no measure against moving on with the next phase of your life, goal, dream or adventure.
If you need more money than the market will provide, seriously consider not selling.
Price to sell fast. Beat the market or it will beat you and your price will erode further. In a Buyer’s market, it is not “when” your property will sell, it’s “if”.
Do not suffer a new face wisely. Often, your existing Realtor has given you sound advice about pricing. You may have resisted the advice. Before you drop your current Realtor, consider giving him or her a chance to sell it at the lower price that you will accept.
Remember if the price is wrong, no amount of marketing and realtor skill can magically make someone over pay for your property.
Avoid Overpricing regain momentum in your sales and marketing plan!
Most Seller’s do not intentionally over price their homes. Often, as market conditions change, sellers and realtors can be caught off guard. If recent “sold” activity is not heeded, existing listings can quickly become over priced.
How do you know if your property is over priced? (if any apply)
1. After 4 weeks on the market (when working with a top producing agent), you have not had any showings or interest calls.
2. You have had showings but no offers to purchase in 90 days.
3. Homes in your area are selling even though they do not have the features equal to or greater than yours.
4. Feedback from your Realtor and experienced/trusted Realtors who have viewed your property recently suggest that the price is to high compared to the competition.
5. It didn't sell - in 90 days.
How does overpricing hurt the chances of your property selling?
1. Your property can become stale and buyers may ask why has it been on the market so long.
2. Realtors and buyers may assume that you are not serious about selling and overlook your property in favour of other, lower priced ones.
3. Buyers overlook your property because they do not want to waste their time.
4. Buyers and Realtors do not place offers because they fear confrontation and the stress of failed negotiations.
5. If your home has unique features you may get an offer but often it may be a low ball (low offer price).
5. It is hard to get Realtors and buyers excited about showing your home.
6. Financing and appraisals become difficult and even if a buyer is willing to pay your price, the bank or lender may not finance the negotiated price.
Not selling your property in the intended time, for the intended asking price places tremendous amounts of stress on Sellers and Realtors.
Sellers see the value of their most important asset declining yet they may not “see” the activity employed to promote their home. On the other side is a Realtor who has paid thousands of dollars to maintain their sales and promotion plans without any income to support their business.
What options do you have if your property does not sell at the price you want?
1. Ask yourself, what price do you NEED. Price your property within 2% of this "lowest" need price.
2. Take the property off the market.
3. Systematically drop your price until it sells.
Which ever action you take, be sure to speak your Realtor and discuss your options openly and honestly. The biggest make I see is when Sellers need to sell yet they do not address the current market conditions. If you listed the property 6 months ago, the CMA value you have is way out of date and you need new data. Get your Realtor involved and seek out their true advice.
Still having trouble? Here are some parting thought processes for you.
All markets are relative. This means that if your property value has declined, so has everyone else’s.
Don’t take it personal. It’s just money—they print more of it everyday.
QTR. Ask yourself, how important is it to sell your property and if you did, what would you do with the “Quality Time Remaining”. Holding out for a high price is no measure against moving on with the next phase of your life, goal, dream or adventure.
If you need more money than the market will provide, seriously consider not selling.
Price to sell fast. Beat the market or it will beat you and your price will erode further. In a Buyer’s market, it is not “when” your property will sell, it’s “if”.
Do not suffer a new face wisely. Often, your existing Realtor has given you sound advice about pricing. You may have resisted the advice. Before you drop your current Realtor, consider giving him or her a chance to sell it at the lower price that you will accept.
Remember if the price is wrong, no amount of marketing and realtor skill can magically make someone over pay for your property.
Avoid Overpricing regain momentum in your sales and marketing plan!
Sunday, April 24, 2011
"Ask The Expert" Q. What do I need to know about the buying process?
I saw this question posted in our local paper this morning and the answer that the papers "expert" posted did not really answer the question so I was inspired to answered it here.
First off, the "buying process" will involve a number of professionals before it is completed. The end result of the process of buying a property will require at least 200 pages of documents, more than 30 signatures and involve no less than 20 professionals. The process can last a few days, weeks, months or years.
As realtor, I am an expert at helping people work through the process and at every step of the way, I have practical advice to help people "move on" to the next step. A good approach to buying a property or home is to use a business like approach and I like to use a six step model.
6 Steps to Home Buying Success
1. Goal. Many people have a goal to own real estate. However, when you choose to make a purchase, you need to have a "goal" that is individual to the purchase at hand. Ask yourself, what is my real estate goal in the short run - say two years. Next, what is my mid term goal - say 5 years and finally, what is my longer term goal - say 10 to 15 years. I met John and Susan because they want to sell their condo to buy a smaller less expensive one. After we met a couple times and discussed their long term goals, it made sense for them to keep their condo (and save the fees to sell) and buy a larger home with a suite. Now they own two properties that generate income and they have a yard for their new baby.
2. A Plan, Preparation and Options. I have a plan which I use for all my clients to ensure that their needs, wants and desires come out early in the process. I ask questions and listen for their answers and I also steer my clients to other professionals to help them access the resources they will need later. Financing, Lawyers and Inspectors will all play an important role when purchasing a property. Having a plan helps to save time and money for my clients and it can also take the stress out of findings a home. Being organized can help buyers relax and focus on what's important and truly enjoy the process of buying. At this stage it is also important to learn the many options available to buyers such as Rent to Own, seller financing, zero down options and the many ways in which real estate can be financed.
3. The Search. Most people mistakenly believe that Realtors help people find properties. Nothing is farther from the truth. Today, most people find their own home. 95% of the best homes for sale are already on the internet with photos descriptions features and location. My job is to help you choose and evaluate - not find (All my listings are also on the internet so people can find them). Searching for a home is a process of elimination. And, only by searching, driving by, viewing and then evaluating will buyers be able to assess the best properties. Today, millions of data points exist in every real estate market and there and tons of choices and herein lies the problem. Too much choice can be problematic. I help people choose based on what makes sense for them plus what makes sense for the local market conditions.
4. Acquisition. When it's time to buy you will need to write an offer, choose the conditions that will protect you and then present the offer and negotiate. I believe that this step in the process is becoming a long lost art and this is where a good Realtor truly shines. Creating a win-win negotiation is not an easy thing to do. If the market is in flux (such as today and for the past three years) buyer and seller expectations can be very far apart. Negotiations and contract talks can take hours and hours and only the skilful Realtors bring deals together.
5. Usage. Now you have bought the property and moved in. You are enjoying your home and using the property for it's intended purpose. Based on your earlier plan this property may be a stepping stone to larger property or it may be your dream home. At this stage you need to keep focused on your plan because the next step will be disposal (or selling). What type of upgrades do you do? Should you renovate? Update or tear down? How about installing that pool? What about window upgrades? The most essential part of the buying process is what you do after you have bought the property. Nothing will affect the value or your financial position more.
6. Disposal (or selling). I firmly believe that each and every purchase should be made with a future sale in mind. I ask every client this question before they write and offer: When will you sell this property and under what circumstances will you sell it and to whom? Some people plan to live in the home until their end. Others plan to upgrade in a couple years and some may need to sell because of a new job. In each situation, we can plan and create strategies to help people achieve these goals - therefore we need to have goals and we need to use these in our planning.
This process is an excellent way to help people achieve real estate success. There are hundreds of discussion points in these steps that I have not included due to space. Suffice to say that each step in the process requires attentions to detail and skillfully asking questions and listening for answers to help buyers make good choices. And, sometimes the best choice is not to buy or to wait. When you do buy, you should feel in control and act based on a solid plan that fits your budget and your goal.
First off, the "buying process" will involve a number of professionals before it is completed. The end result of the process of buying a property will require at least 200 pages of documents, more than 30 signatures and involve no less than 20 professionals. The process can last a few days, weeks, months or years.
As realtor, I am an expert at helping people work through the process and at every step of the way, I have practical advice to help people "move on" to the next step. A good approach to buying a property or home is to use a business like approach and I like to use a six step model.
6 Steps to Home Buying Success
1. Goal. Many people have a goal to own real estate. However, when you choose to make a purchase, you need to have a "goal" that is individual to the purchase at hand. Ask yourself, what is my real estate goal in the short run - say two years. Next, what is my mid term goal - say 5 years and finally, what is my longer term goal - say 10 to 15 years. I met John and Susan because they want to sell their condo to buy a smaller less expensive one. After we met a couple times and discussed their long term goals, it made sense for them to keep their condo (and save the fees to sell) and buy a larger home with a suite. Now they own two properties that generate income and they have a yard for their new baby.
2. A Plan, Preparation and Options. I have a plan which I use for all my clients to ensure that their needs, wants and desires come out early in the process. I ask questions and listen for their answers and I also steer my clients to other professionals to help them access the resources they will need later. Financing, Lawyers and Inspectors will all play an important role when purchasing a property. Having a plan helps to save time and money for my clients and it can also take the stress out of findings a home. Being organized can help buyers relax and focus on what's important and truly enjoy the process of buying. At this stage it is also important to learn the many options available to buyers such as Rent to Own, seller financing, zero down options and the many ways in which real estate can be financed.
3. The Search. Most people mistakenly believe that Realtors help people find properties. Nothing is farther from the truth. Today, most people find their own home. 95% of the best homes for sale are already on the internet with photos descriptions features and location. My job is to help you choose and evaluate - not find (All my listings are also on the internet so people can find them). Searching for a home is a process of elimination. And, only by searching, driving by, viewing and then evaluating will buyers be able to assess the best properties. Today, millions of data points exist in every real estate market and there and tons of choices and herein lies the problem. Too much choice can be problematic. I help people choose based on what makes sense for them plus what makes sense for the local market conditions.
4. Acquisition. When it's time to buy you will need to write an offer, choose the conditions that will protect you and then present the offer and negotiate. I believe that this step in the process is becoming a long lost art and this is where a good Realtor truly shines. Creating a win-win negotiation is not an easy thing to do. If the market is in flux (such as today and for the past three years) buyer and seller expectations can be very far apart. Negotiations and contract talks can take hours and hours and only the skilful Realtors bring deals together.
5. Usage. Now you have bought the property and moved in. You are enjoying your home and using the property for it's intended purpose. Based on your earlier plan this property may be a stepping stone to larger property or it may be your dream home. At this stage you need to keep focused on your plan because the next step will be disposal (or selling). What type of upgrades do you do? Should you renovate? Update or tear down? How about installing that pool? What about window upgrades? The most essential part of the buying process is what you do after you have bought the property. Nothing will affect the value or your financial position more.
6. Disposal (or selling). I firmly believe that each and every purchase should be made with a future sale in mind. I ask every client this question before they write and offer: When will you sell this property and under what circumstances will you sell it and to whom? Some people plan to live in the home until their end. Others plan to upgrade in a couple years and some may need to sell because of a new job. In each situation, we can plan and create strategies to help people achieve these goals - therefore we need to have goals and we need to use these in our planning.
This process is an excellent way to help people achieve real estate success. There are hundreds of discussion points in these steps that I have not included due to space. Suffice to say that each step in the process requires attentions to detail and skillfully asking questions and listening for answers to help buyers make good choices. And, sometimes the best choice is not to buy or to wait. When you do buy, you should feel in control and act based on a solid plan that fits your budget and your goal.
Thursday, April 7, 2011
Fast and for Top Dollar!
If there is a universal truth in real estate it is that sellers want to sell FAST and for TOP dollar.
You will notice many Realtors claiming to offer this service. However, it becomes very important to qualify what “fast” means and also what is “top” dollar? Both can have gray areas as we will see, it is in these gray areas where sellers can get caught and make poor choices.
Lets start with fast. What is fast? One day? One week? One month? Is there a too fast? Certainly, we are familiar with “two slow” as the market the past few years has presented us with challenges and longer days on market to sell. To me, fast is anything less than two (2) months or about eight (8) weeks or less. At the same time, I do believe that you can sell your property too fast. For example, if you sell your home on the first day of the listing to one buyer without competition, this would be too fast in my opinion.
Experience shows that in order to sell a property for top dollar at any given market condition, the property needs to be exposed to the most amount of buyers who are able to buy within the listing period. With technology today, we can track how each and every listing “does” when we post the listing and start the promotional campaign. The campaign produces statistics and as each week progresses the “word” about the listing details, price, features, condition and location all factor to create a statistical package.
Based on my research, I believe that a home is fully promoted at 3 weeks (the incubation period). Which means, everyone on the market area who wants or needs to buy with the needed budget will know about the property. Based on this, selling a home in less than three weeks could be problematic because there may be people who are willing to pay top dollar but have not yet seen the home. So, not only is it important to create a good marketing plan for your property, it becomes even more important to monitor how the property is “doing” and what type of activity it creates.
When you plan to sell your home, there are only three factors that you can control over and above the general market situation. They are: 1) the marketing plan 2) the condition of the property and 3) the price. If you have listed your home for more than eight weeks an it has not sold then you need to look at each of these factors and make changes.
The Marketing Plan that your Realtor activates for your property needs to cover the bases and ensure that the home is marketing properly. Realtors market differently and nearly all use MLS as the core of their plan. However, differences exist and these differences may cost you a buyer or hurt your positioning. I believe that you need a comprehensive marketing plan activated by a skillful and knowledgeable marketing professional. You also need to view the track record of the marketing plan. You may or may not like each marketing activity but what you are paying for is the result. The result that is most important in my view is the sales price to list price ration (SPLPR).
My marketing plan produces 98.1% sale price to list price ratio (at the time of publishing this blog). This is the percentage of the asking price that the home sells for. This means that my clients on average sell their home at 98.1% of the asking price.
Currently, our board average is +/- 94.5%. In simple terms, I often earn my clients 3-4% more per $100,000 than the average Realtor in my local market. On a $500,000 home, this could translate into $15,000 - $20,000 more for my sellers than if they were to sell at the board average of 94.5%. However, this definition is far too simple because this number also reflects my ability to price your home properly but also negotiate to get the best price and terms possible. In summary, the marketing plan that you choose should have a track record and you need to know the past results of your Realtor's marketing plan.
Next, the condition of your property will definitely affect the speed and price of sale. Today, we are seeing that homes in the best condition and for the best price are selling better. Which means, even if you have a great price, you may not sell if the condition of your property is problematic. You may need to renovate and leave your price where it is on order to gain a sale.
Lastly, if all another factors where equal (marketing and the condition of your home) then the most important choice a seller must make is that of price. The price you choose will dictate whether you sell or not. The advice you receive therefore becomes even more important. Today price comparables are sometimes few and far between. Data on buyers and recent transactions is not an exact science. You may choose a price at the start of your listing period but withing a week or two, this price may be out of date for the market conditions. It may be too high or it may be too low. Normally, its too high as too low should lead to a sale - but not always.
The best tactic to use when it comes to price it to create a strategy based on your overall property. You need to look at the competition and position your property. A pricing strategy may be to set the price at slightly higher than you competition and then monitor the statistics. If you do not get an offer or your feedback from showings does not support the price, you need to adjust the price quickly and often, more than once. Using this technique, you can often ensure that you got top dollar because you are making your price adjustments based on market feedback. However, if you get market feedback and fail to adjust your price, it is unlikely that in today's competition market, that you will sell at all.
So, if you or a friend or family member need to sell your property or home FAST and for TOP dollar remember the three pillars of selling. 1) A great Realtor with a proven marketing plan, 2) fix up the property to show it the best it can and 3) create a pricing strategy and make quick and timely price adjustments.
You will notice many Realtors claiming to offer this service. However, it becomes very important to qualify what “fast” means and also what is “top” dollar? Both can have gray areas as we will see, it is in these gray areas where sellers can get caught and make poor choices.
Lets start with fast. What is fast? One day? One week? One month? Is there a too fast? Certainly, we are familiar with “two slow” as the market the past few years has presented us with challenges and longer days on market to sell. To me, fast is anything less than two (2) months or about eight (8) weeks or less. At the same time, I do believe that you can sell your property too fast. For example, if you sell your home on the first day of the listing to one buyer without competition, this would be too fast in my opinion.
Experience shows that in order to sell a property for top dollar at any given market condition, the property needs to be exposed to the most amount of buyers who are able to buy within the listing period. With technology today, we can track how each and every listing “does” when we post the listing and start the promotional campaign. The campaign produces statistics and as each week progresses the “word” about the listing details, price, features, condition and location all factor to create a statistical package.
Based on my research, I believe that a home is fully promoted at 3 weeks (the incubation period). Which means, everyone on the market area who wants or needs to buy with the needed budget will know about the property. Based on this, selling a home in less than three weeks could be problematic because there may be people who are willing to pay top dollar but have not yet seen the home. So, not only is it important to create a good marketing plan for your property, it becomes even more important to monitor how the property is “doing” and what type of activity it creates.
When you plan to sell your home, there are only three factors that you can control over and above the general market situation. They are: 1) the marketing plan 2) the condition of the property and 3) the price. If you have listed your home for more than eight weeks an it has not sold then you need to look at each of these factors and make changes.
The Marketing Plan that your Realtor activates for your property needs to cover the bases and ensure that the home is marketing properly. Realtors market differently and nearly all use MLS as the core of their plan. However, differences exist and these differences may cost you a buyer or hurt your positioning. I believe that you need a comprehensive marketing plan activated by a skillful and knowledgeable marketing professional. You also need to view the track record of the marketing plan. You may or may not like each marketing activity but what you are paying for is the result. The result that is most important in my view is the sales price to list price ration (SPLPR).
My marketing plan produces 98.1% sale price to list price ratio (at the time of publishing this blog). This is the percentage of the asking price that the home sells for. This means that my clients on average sell their home at 98.1% of the asking price.
Currently, our board average is +/- 94.5%. In simple terms, I often earn my clients 3-4% more per $100,000 than the average Realtor in my local market. On a $500,000 home, this could translate into $15,000 - $20,000 more for my sellers than if they were to sell at the board average of 94.5%. However, this definition is far too simple because this number also reflects my ability to price your home properly but also negotiate to get the best price and terms possible. In summary, the marketing plan that you choose should have a track record and you need to know the past results of your Realtor's marketing plan.
Next, the condition of your property will definitely affect the speed and price of sale. Today, we are seeing that homes in the best condition and for the best price are selling better. Which means, even if you have a great price, you may not sell if the condition of your property is problematic. You may need to renovate and leave your price where it is on order to gain a sale.
Lastly, if all another factors where equal (marketing and the condition of your home) then the most important choice a seller must make is that of price. The price you choose will dictate whether you sell or not. The advice you receive therefore becomes even more important. Today price comparables are sometimes few and far between. Data on buyers and recent transactions is not an exact science. You may choose a price at the start of your listing period but withing a week or two, this price may be out of date for the market conditions. It may be too high or it may be too low. Normally, its too high as too low should lead to a sale - but not always.
The best tactic to use when it comes to price it to create a strategy based on your overall property. You need to look at the competition and position your property. A pricing strategy may be to set the price at slightly higher than you competition and then monitor the statistics. If you do not get an offer or your feedback from showings does not support the price, you need to adjust the price quickly and often, more than once. Using this technique, you can often ensure that you got top dollar because you are making your price adjustments based on market feedback. However, if you get market feedback and fail to adjust your price, it is unlikely that in today's competition market, that you will sell at all.
So, if you or a friend or family member need to sell your property or home FAST and for TOP dollar remember the three pillars of selling. 1) A great Realtor with a proven marketing plan, 2) fix up the property to show it the best it can and 3) create a pricing strategy and make quick and timely price adjustments.
Wednesday, February 9, 2011
Monday, January 31, 2011
2010 The Year in Review - My Best Year Ever!
What a roller coaster!
2010 started out with a solid amount of momentum from late 2009. In fact, there seemed to be a lot of pent up buyer demand spilling over from 2009 and by May 2010, the numbers proved that sales volume had increased from the year before.
By June, the HST blunder of the century finally caught up with real estate (and other) sales. HST only applied to new developments which had already been hammered by the 2008 downturn so when the HST uncertainty was added, sales came to a screaming halt. We still see effects of this in low sales numbers for building lots, modest housing starts and sluggish sales at the new developments across town.
All is not doom and gloom however as when sales start to slow, prices decline and buyers move in. If you stop and take inventory of the current market. It's a great time to buy and a great time to sell for that matter. Why, interest rates are low and we have 5 year rates at 3.55%. The number of homes for sale under $400k is at an all time high and when you crunch these two statistics, it makes sense to stop paying rent if you can muster a 5% down payment. This will bring out the investors and first time home buyers proving that our market is stable and overall sales should improve moving forward.
Sellers need to drink a large glass of reality juice. Pricing is more important than ever. In July of 2010, I sent an email out to all my sellers telling them my "gut feeling" was that all prices needed to drop by 10% in order to snag a buyer. I boldly suggested that those who do not drop by at least 10% wouldn't sell at all. I was correct. And, I told them so. Moving forward, sellers have to let go of their perceived value based on sale prices increases from 2007. This means that most homes will sell if priced near their 2007 equivalent. For some, this is too much. At the sale time, this statistic applies to all housing so a sell and buy in the same market nets out proportionately. If you are moving up, you will probably get a better buy for less money (smaller spread) and if you are down sizing, you will be able to true reduce your mortgage although the spread may not be as favourable.
July thru November was truly an trying time for may Real Estate Agents. Sales volumes in most categories were so slow that less than 1 in 8 Realtors could claim a sale each month in the Central Okanagan. Considering that, our fixed costs are quite high in this profession, it is obvious that many Realtors took a step backwards. Many of us had our best years ever. At RE/MAX I have heard many other Realtors commenting on their best year ever. It was my best year ever and when I look back on the clients that I helped this year, I truly feel that I work with the very best people. Great people. Honourable people. All who negotiated in good faith and with knowledge and tact. I am very grateful to have such noble clients.
We had some great win-wins this year and I believe that all my clients made good choices. Congratulations to all who where able to move on to bigger and better things!
Based on my strong 2010, I believe that 2011 will again offer us a roller coaster. It may not be such a wild ride as 2010, but it will require a few gut checks along the way.
To my buyers and clients, who believe that 2011 is the year for them to make a choice to build wealth, let's chat earlier in the year. The good buys of the first quarter may be tougher to find later in the year.
To my sellers, I will be contacting each one of you personally and as always, I will bring the most accurate and insightful information to help you make the best choices for you this year.
This market is what it is. Those who ignore the media and focus on the fundamentals of buying and selling real estate will be the winners in this period.
It's a great time to Buy and Sell and I can help you choose. I can also help you make sense of this market place and help you on a path towards growth for any plans and goals you may have.
Best Regards Always,
Dean
2010 started out with a solid amount of momentum from late 2009. In fact, there seemed to be a lot of pent up buyer demand spilling over from 2009 and by May 2010, the numbers proved that sales volume had increased from the year before.
By June, the HST blunder of the century finally caught up with real estate (and other) sales. HST only applied to new developments which had already been hammered by the 2008 downturn so when the HST uncertainty was added, sales came to a screaming halt. We still see effects of this in low sales numbers for building lots, modest housing starts and sluggish sales at the new developments across town.
All is not doom and gloom however as when sales start to slow, prices decline and buyers move in. If you stop and take inventory of the current market. It's a great time to buy and a great time to sell for that matter. Why, interest rates are low and we have 5 year rates at 3.55%. The number of homes for sale under $400k is at an all time high and when you crunch these two statistics, it makes sense to stop paying rent if you can muster a 5% down payment. This will bring out the investors and first time home buyers proving that our market is stable and overall sales should improve moving forward.
Sellers need to drink a large glass of reality juice. Pricing is more important than ever. In July of 2010, I sent an email out to all my sellers telling them my "gut feeling" was that all prices needed to drop by 10% in order to snag a buyer. I boldly suggested that those who do not drop by at least 10% wouldn't sell at all. I was correct. And, I told them so. Moving forward, sellers have to let go of their perceived value based on sale prices increases from 2007. This means that most homes will sell if priced near their 2007 equivalent. For some, this is too much. At the sale time, this statistic applies to all housing so a sell and buy in the same market nets out proportionately. If you are moving up, you will probably get a better buy for less money (smaller spread) and if you are down sizing, you will be able to true reduce your mortgage although the spread may not be as favourable.
July thru November was truly an trying time for may Real Estate Agents. Sales volumes in most categories were so slow that less than 1 in 8 Realtors could claim a sale each month in the Central Okanagan. Considering that, our fixed costs are quite high in this profession, it is obvious that many Realtors took a step backwards. Many of us had our best years ever. At RE/MAX I have heard many other Realtors commenting on their best year ever. It was my best year ever and when I look back on the clients that I helped this year, I truly feel that I work with the very best people. Great people. Honourable people. All who negotiated in good faith and with knowledge and tact. I am very grateful to have such noble clients.
We had some great win-wins this year and I believe that all my clients made good choices. Congratulations to all who where able to move on to bigger and better things!
Based on my strong 2010, I believe that 2011 will again offer us a roller coaster. It may not be such a wild ride as 2010, but it will require a few gut checks along the way.
To my buyers and clients, who believe that 2011 is the year for them to make a choice to build wealth, let's chat earlier in the year. The good buys of the first quarter may be tougher to find later in the year.
To my sellers, I will be contacting each one of you personally and as always, I will bring the most accurate and insightful information to help you make the best choices for you this year.
This market is what it is. Those who ignore the media and focus on the fundamentals of buying and selling real estate will be the winners in this period.
It's a great time to Buy and Sell and I can help you choose. I can also help you make sense of this market place and help you on a path towards growth for any plans and goals you may have.
Best Regards Always,
Dean
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