Newsletter for July 2007

Vancouver for Homes Monthly Newsletter

July 2007

THE PRICE IS RIGHT

Why is it so important to get the price right when you are either buying or selling property? Buyers obviously want to pay the fair market price for the property. Sellers want to attract the best price, but may not be sure how to do this.

THE TOOLS OF THE TRADE

Canada is blessed, if thats not too strong a word, with the Multiple Listing Service (MLS). Because this holds virtually all property for sale, it is an easy way to compare what is for sale and at what price. The general public can do this and it a very efficient way of finding out listing prices of properties anywhere in Canada.

Realtors, like us, also have access to additional information from the MLS. Critically for the pricing of property, we can see the sold price of the home. The sold price is not the same as the asking price. In most instances the sold price is somewhat less than the asking price, but sometimes it can be higher. The sold price is therefore critical in assessing the market price for a home - a home is only worth what someone is prepared to pay.

THE BUYER'S SIDE

A buyer needs to know what similar properties sold for in the area. As your realtor we would provide you with the sale prices for comparable properties. We also look at the time on the market and assess the general market conditions. While some of this is based on hard facts (eg sale price, price per square foot), others are based on our feeling about the market or what we havve been able to find out about the position of the seller.

All these factors usually come together to enable you to pitch your offer at a level which will be acceptable to the seller. Your first offer may be pitched somewhat lower to allow room for negotiation. Most often the seller is keen to come to a deal if you have made an offer which is close to the fair market value of their home. If however you have gone in with a low ball offer they may not be interested in negotiating at all and may simply reject your offer.

Knowing and pitching your offer at the fair market value is your best bet for achieving an agreed deal. However when the property is priced below the fair market value or it is a sellers market for that kind of property, you may find yourself competing with other buyers. In this case knowing the guide price is still important but your initial offer must be your best one as you will not get a second chance. You may wish to offer more than the asking price in this case, but only do so if you believe that your offer is still a fair reflection of current market prices. And consider also whether you may later regret your offer. You should be comfortable that your offer was as high as you were willing to go and no higher than it needed to be.

THE SELLER'S SIDE

Pricing your home is an emotional issue for most people. After all you loved the place. You think everyone else should love it too. And sometimes love is blind! You dont see the faults in the home that a buyer might.

Be guided by the facts firstly. Pricing your home at a fair market value will maximise your chances of selling it quickly - and for the best price.

The most common mistake is to over-price. Don't assume that buyers will look at your price and make an offer. Buyers may not even come to see your home if it is out of their price bracket. And your home may now be competing in a higher priced league than it should - and will likely suffer by comparison.

Over-priced homes that are subsequently reduced in price do not have the same impact on the market as new listings. Active buyers are scanning the new listings and, especially in a busy market, leaping on them as quickly as possible. A price reduction may attract some more interest but many buyers will miss this kind of tired listing.

Your property has the best chance of selling within its first seven weeks on the market. And, studies indicate that the longer a property stays on the market, the less it will ultimately sell for. A property priced 10% more than its market value is significantly less likely to sell within this time than a property priced close to its actual market value

THE NEXT STEP

If you are considering buying or selling then the first step is to contact us for advice on the market for your kind of property. We will be able to advise you on your likely budget for buying or give you a detailed assessment of the value of your current home.

REAL ESTATE MARKET

JUNE HAS BEEN BUSY

The Real Estate Board of Greater Vancouver (REBGV) reports that total residential sales reached 4,244 units in June 2007, an increase of 7.4% compared to 3,951 sales in June 2006. This figure represents the second highest number of sales during the month of June in the Boards history. The highest number of sales for that month was recorded in June 2005, when 4,333 sales were reported.

Statistics in the areas that we cover, show the trend is partially driven by declining listings. New listings wer mostly lower than in May 2007. Only apartments in West Vancouver and North Vancouver showed an increase in this period (8.6% and 8.5% respectively).

The sales figures for this quarter (April - June 2007) show some variation. The bright spots in our region were:

North Vancouver attached +6.3%
Port Moody attached +15.8%
Port Moody apartments +61.6%
Port Coquitlam apartments +6.3%
Vancouver West detached +8.3%
Vancouver West attached +14.3%
Vancouver West apartments +10.7%
West Vancouver detached +6.4%

I have also set out the REBGV benchmark prices in our region. Note that these are for typical properties in each area - it is no substitute for a proper market analysis.

DETACHED BENCHMARK PRICES

Greater Vancouver $715,715
Coquitlam $621,540
North Vancouver$853,247
Port Coquitlam $521,937
Port Moody $722,100
Squamish $522,590
Vancouver West $1,329,884
West Vancouver $1,415,852

ATTACHED BENCHMARK PRICES

Greater Vancouver $443,060
Coquitlam $405,626
North Vancouver $562,583
Port Coquitlam $369,235
Port Moody $375,192
Vancouver West $686,188

APARTMENT BENCHMARK PRICES

Greater Vancouver $360,469
Coquitlam $275,630
North Vancouver $369,818
Port Coquitlam $240,673
Port Moody $288,557
Vancouver West $457,637
West Vancouver $665,134

TIME TO BUY OR SELL

If you are looking to buy or sell property then we can help you. We work for you either as a buyers agent, to help you find your next property, or as a listing agent. If we cannot help you personally we have excellent partners in most areas within B.C. We and our partners are licensed realtors with the experience and knowledge to help you make your next move a success. Call us to find out how we can help you now.

And remember if you introduce someone to us you will receive a referral fee when they buy.