When you are getting ready to look for your new home, there is a myriad of things to think about, prepare for and to organize.  Here’s a short list of some of the things to watch for.

Sellers want to realize as much money as possible when they sell their home.  Unfortunately, a listing price that is too high often eventually results in the seller receiving less than what would be considered market value.  If your house is not priced competitively people looking in your price range will reject your house in favour of other homes for the same price.  At the same time, the people who should be looking at your house will not see it because it is priced over their heads!  Overpricing usually increases the time on the market, and that adds to the carrying costs. Ultimately, many overpriced properties sell below market value. To help avoid this, we can advise you on the following:

1. Should you just select an agent based on selling price?
2. You’ve invested a lot of money in your home… what’s the difference between cost and selling price?
3. What really is market value?
4. How do we set the asking price?
5. Why couldn’t we just try it for awhile at that price?
6. How does the principle of substitution affect the value of your home?

Once you learn these principles, you’ll know how to sell your house for the best price.  Not only that, you’ll know how to avoid paying too much for any house you buy for the rest of your life!  Just call us anytime and we’ll help you with good advice.

Buyers look for homes rather than houses and in most instances they buy the home in which they would like to live.  Owners who fail to make necessary repairs, do not spruce up the house inside and out, touch up the paint and landscaping, or keep it clean and neat, will chase buyers away as rapidly as Realtors can bring them.  If you were selling a car, you would wash it or perhaps detail it to get the highest price.  Houses are no different.  Ask for our video “How to Prepare your Home for Sale”.  We’d be happy to lend it to you. 

Buying a house is an emotional decision.  People like to “try on” a house and see if it is comfortable for them.  It’s difficult for them to do that if you follow them around pointing out every improvement that you made.  It may even have the opposite effect you want, by making them feel they are intruding on your private space.  In addition, if you are ‘too close for comfort’, the buyer may not wish to ask a question or bring up an objection that the Realtor may be able to answer.  Resist the temptation to talk the entire time a buyer is there.  Let them discover things on their own.  Try a tasteful sign posted on the door or wall to point out some hidden amenity that they might miss.

A qualified buyer is one who is ready, willing, and able to buy your house.  We find that most people who go looking at “For Sale By Owner” properties are just starting to think about moving.  They may be good buyers, but they’re still 6-9 months away from being ready.  They don’t want to bother an agent yet, so they call the “By Owner” ads to get a feel for what is available.

Many potential buyers may have a house to sell first or may need to save some more, or may have credit that needs fixing.  Once everything is in place, they go out looking with a realtor.  An agent will ask a buyer how much he can really spend for a house, how much he has to put down, how good his credit is, how much he can pay each month, how much he will realize when he sells his present home – and about a dozen other questions before the buyer crosses your threshold.  Otherwise, you may have a parade of weekend shoppers with a dream of owning a home some day.

Many times an agent will have good intentions about marketing your house but circumstances can and do change.  There might be some unforeseen circumstance or the agent may decide to quit the business.  In these cases where the agent could not or would not perform, you should have the right to change your agent.  Some companies will assign your listing to someone else in the office – someone you did not personally interview or select.  Always protect yourself by getting a guarantee of performance with the right to cancel. 

Real estate law is extensive and complex; the contract of sale and purchase is a legally binding document.  An improperly written contract can cause the sale to be void, fall through, or cost you thousands for repairs, inspections, and remedies for items included or excluded in the offer.

You must be certain which repairs and closing costs you are responsible for.  You must know whether the property can legally be sold “as is” and how covenants, easements and local zoning will affect the transaction.  If there are defects in your title, or if your property conflicts with local restrictions you may have to remedy them.

The two most obvious marketing tools (open houses and classified ads) are only moderately effective.  Surprisingly, less than 7% of homes are sold from an open house.  As a result, agents often use them to attract future prospects instead.

Advertising studies show that less than 3% of people purchased their home because they called on the advertisement.  If a machine answers, most callers just hang up without leaving a message. 

The right realtor will employ a broad spectrum of marketing activities, emphasizing those that he believes will work best for you and your particular property.  There are dozens of more effective ways to find buyers than just open houses and advertising.

By the way, my associate or I will be available every time the phone rings.  Did you know that most calls come in during business hours when sellers are away at work, and many home showings are between 9:00 and 5:00 Monday through Friday?

I’ve seen certified appraisals vary as much as 25% on a house!  Don’t make the mistake of thinking a recent appraisal or an appraisal even 6 months ago is what a real buyer would pay today.  Ask me for all the similar sales in your areas, and then decide.

In the province of British Columbia there is a crown corporation called the BC Assessment Authority, which appraises all properties for Taxation purposes.  These “assessed” values are used by governments to calculate the amount of property taxes to be paid.  The assessed value is considered to be the Market Value of the land and improvements as of July 1st of the year which the assessment roll is completed. 

In calculating the Market value of your home today, it is critical that recent comparable sales are used.  Since the assessed value represents the value as of July 1st of the previous year, it may not be completely accurate.  Also, it usually takes years between visits by BC Assessment appraisers, so in many cases the changes and updates to the improvements are not adjusted for the increase in value.  There are also special situations where the tax assessments are held down and will increase dramatically after a sale. 

It is likely that you do not interview people very often.  Yet in order to find the right Realtor you may need to interview several.  The quality of your home selling experience is dependent upon your skill at selecting the person best qualified.

It is interesting that in the real estate business someone with many successful closed transactions usually costs the same as someone who is inexperienced.  Bringing that experience to bear on your transaction could mean a higher price at the negotiation table, selling in less time, and with the minimum amount of hassles.

The Lower Mainland is full of agents who may not be right for you.  For example: the part-timer who sells an occasional house because he or she needs a little pocket change, or the fast talking type who is only interested in his next deal, or perhaps your cousin George, who really needs your business.

The sale of your home could well be the most important financial transaction you have ever been involved with.  The person you select can make it a satisfying and profitable activity, or a terrible experience.  It’s your home, and your money.  The choice of your Realtor is up to you.  Make the selection carefully.

Thank you for your inquiry and interest in this report.  I hope it has been informative.  If you have any questions at all or perhaps would like further information on some of the many homes currently for sale, please call Ben Gauer at 604-581-3838 or email us.