Summer Update

Disasters of not pricing your home right – the first time!

whistlerheather | July 11, 2010 at 4:36 pm | Tags: First Tracks Lodge Whistler, Four Seasons Resort Whistler, Just Listed Whistler, Marketing, over pricing, Pan Pacific Whistler, Whistler BC, Whistler Listing System | Categories: Uncategorized | URL: http://wp.me/pIV1b-gN

Reasons for pricing it right

From the second you sign a listing contract your agent can begin the selling process. Your property is the hottest the minute it hits the market. In Whistler selling homes is a little different, while your new home listing is hot when it comes up for sale, the buyer in most cases does not live in Whistler and needs to be contacted, the buyer will probably want to view the home in person, and if it is a buyers market the urgency will not be there.

If however you price your property bang on and perhaps aggressively, you instill a different type of motivation in the realtor. The agent takes the listing back to their office and shares the excitment with their team, the listing is then put through the listing system and this is where your property hits the open market – the other agents then pass the ”Hot Listing” onto their potential buyer. The professional realtor knows a well priced property. This is why in any market homes will sell, motivation determines how fast. Sometimes it does take a little longer, but real estate always sells in any market. We also need to realize certain properties like Phase II here in Whistler are taking much longer to sell, and different methods of marketing and price need to be considered. A well priced, sometimes staged property will breed curiosity.

In each agents data base there are purchasers waiting for the right property to come  onto the market. For every dollar you go above the suggested list price, the funnel of buyers or pool of buyers becomes smaller.

How do we know this

As Whistler BC is the market I am active in I will use the Whistler Listing System Statistics to prove.

If we have had less than 10% of our sales above $2,000,000 that would mean 90% of our market is under that price point – or if we have had 214 sales to date in 2010 and 17 have been over $2,000,000 than less than 10% of your buyers are in this price category. If your property’s value was established at $1,750,000 and you want to test the waters at $2,000,000 you potentially could be missing valuable buyers for two reasons.

1. If I can spend $2,000,000 I will look at properties from $1,750,000 – $2,250,000 perhaps – If I view your property along with the other homes at $2,000,000 I will be determining value for my money right there. If your home is not of the Caliber of the competition in that price range you could be creating a negative outcome.

2. If my purchase price is only $1,600,000 – I would still look up to about $1,900,000 thus missing your property all together.

It only makes good business sense to listen to your professionals advice on pricing, we can all list our homes at any price, but only recent sales determine market value. I know people who are in other fields of business that are very real estate savvy – builders of course are always keeping their finger on the pulse of real estate. Everyone loves to talk about real estate.

If you want to sell

Price it right from the day you get started. Clean it up so it sparkles. Make sure there is a marketing plan in place. Stay in touch with your agent and work together. There are really only two reasons a home does not sell, pricing and lack of exposure.                                          What is the disaster I mentioned in the headline…

Following a slow market downward! Agents could use your home as an example of poor pricing techniques.

What alternatives do you have?

OK - you just can’t sign the contract at that lower price – why not make a deal with your agent, and sign in advance a 30 day price reduction. This makes it a win win situation for your agent as well. Make sure you keep informed of all new listings, price reductions and sales around you… when you know a sale has happened find out why the buyer didn’t buy your home, or even worse never looked at your property. But do not forget timing is everything – new listings are the hottest when Just Listed. If you miss the busy tourist season and reduce in late Sept/Oct you very well could have missed your only buyer!

It might be wise to decide the best-selling 1/4 for your particular property while you’re at it.

Whistler

I can honestly tell you Whistler is not predictable, we have seen a stronger market 3rd and 4th quarters for many of the documented years and yet in many cases 1st quarter has been strong too. Why you ask – good question. Whistler statistics on sales data have been collected since 1998 I have found that each years quarter sales to be all over the board – no particular pattern could be found. The number of sales range from 434 to 1300 a year.  In those numbers are pre-construction hotel sales… Pan Pacific, Four Seasons Whistler, First Tracks Lodge and a few others… These properties are recorded when the deals went firm not when the money traded hands. Some of the hotels have hundreds of rooms documented in the data. As the Managing Broker for RE/MAX Sea to Sky Whistler I count every sale – hotel sales whether phase one or two are real people buying real estate in Whistler….

Sales History Year over Year

1998 – 434                                                                                            

1999 – 781                                                                                              

2000 – 973                                                                                               

2001 – 878                                                                                               

2002 – 1300                                                                                          

2003 – 729                                                                                              

2004 – 696                                                                                             

2005 – 528                                                                                              

2006 – 644                                                                                               

2007 – 942                                                                                               

2008 – 519                                                                                             

2009 – 465                                                                                             

2010 – 214 year to date

 Happy Negotiating!

Seller received 99% of their asking price after 22 days on the market. Contact me for more details.

There’s more to a mortgage than just a low rate, make sure all the features fit your needs.

While some mortgage rates have been increasing in recent weeks, overall, interest rates are the lowest we’ve seen in a generation. Homeowners and first-time buyers getting a mortgage in the months ahead will likely enjoy a rate that will keep their borrowing costs low for the next few years. Indeed, borrowers who have renewed or refinanced a mortgage in the past year now pay interest rates that are nearly one point lower than their previous rate, according to an April report by the Canadian Association of Accredited Mortgage Professionals (CAAMP).

But while securing an attractive interest rate may be the top priority for most borrowers, some low-rate mortgages available today offer limited flexibility. For example, “no frills” mortgages offer favorable rates, but may limit your ability to pay off your mortgage sooner. In addition, “quick close” financing deals offer attractive rate discounts, but many require a closing date within 30 days. This may not provide enough flexibility for sellers or buyers.

When it comes to choosing a mortgage, getting a good rate is just the tip of the iceberg. To ensure smooth sailing, you have to be aware of all the other features that may lie below the surface.

The features of a mortgage should fit a homebuyer’s personal goals, both now and down the road. Borrowers need to understand what they’re signing up for – a mortgage is the largest debt most consumers will ever take on.

Below are five tips prospective mortgage holders may consider when choosing a mortgage.

1. Consider an assumable mortgage
A few years from now when you decide to sell your home, your low-rate mortgage could provide an extra selling point. If you mortgage is assumable, meaning it can be transferred to another borrower, it allows the purchaser to take on your mortgage’s terms and payments as part of the sale. This can be an attractive incentive, particularly in a higher rate environment.

2. Review refinancing penalties
Given the low rates available today, many homeowners are weighing the benefits of refinancing. When choosing a mortgage, keep in mind that penalties are often the equivalent of three month’s mortgage payments, or based on an interest rate differential, which is the difference between your current rate and the new rate. If you consider refinancing, a mortgage broker can help you decide whether the long-term savings outweigh the up-front penalties.

3. Evaluate pre-payment options
Many borrowers are taking advantage of low interest rates by accelerating payments on their mortgages. For example, many lenders allow you to double up payments periodically, or make lump-sum payments of up to 20 per cent of the principal once a year. When negotiating your mortgage, make sure you understand the size and frequency of payments your lender allows.

4. Review skip-a-payment options
Some lenders offer an option to skip a payment without penalty, which may come in handy in today’s economy.

5. Consider portability
Many mortgages have a portibility feature that allows you to transfer your existing mortgage over to a new property, but not all portibility terms are the same. Some lenders allow as long as 120 days to transfer the mortgage, but others only allow for a few days or a week.

Choosing the right mortgage involves considering where you are now, and where you may be three to five years from now. Working with a mortgage professional can help you make sense of the many options available to you.

JUST SOLD! Three bedroom, three bathroom triplex with nicely upgraded with fresh paint, wood floors, new carpet, and a custom kitchen. Bright corner property with outdoor living space and plenty of storage. Seller received 102% of their asking price and had a firm offer after 4 days on the market. Contact me for more details.