Not Much Like Selling Oranges

Not Much Like Selling Oranges

 Selling real estate isn’t much like selling oranges. Houses are not homogenous, although, like oranges, houses do have a finite lifespan. Houses require regular maintenance and updating to keep them viable and saleable. The real value comes from the land under and around our homes. Land is in limited supply.

The real estate market in Kelowna has always been a popular discussion point but in the last few months opinions seem to have become polarized. As agents we try to deal with the facts. The buyers market we find ourselves in demands a shift in tactics, and if you are selling your home now, or plan to in the near future there are some vital things to take into consideration.

The Okanagan Mainline Real Estate Board released its latest figures on October 5^th. Statistics showed a 44.68% drop in sales over September 2009, although year to date showed a 1.51% increase for the first 9 months of 2010 compared to 2009.

Be realistic about appreciation. Bear in mind that just because the house next door sold for a high price 12 or even 6 months ago doesn’t mean you will realize the same price now for yours. The level of inventory of housing in Kelowna is at record levels as witnessed by a brief drive around area and the large number of “For Sale” signs. The economics of supply and demand apply to housing in much the same way as they apply to oranges. If a buyer doesn’t feel like they are getting a “bargain” …something they certainly feel entitled to right now, they will simply move on to another property. Put your best foot forward. The days of overpricing your property by 15 or 20% to leave room for negotiation are over, there’s simply too much competition in the market place. Get creative: Insider Tip:*Sweeten the deal. Offer to pay a portion of closing costs, pay for mortgage penalties, and offer to pay a few months strata fees if you are selling a condominium.  Pricing is strategy. Much of it comes down to just how motivated you are to sell.

Get an inspection. Get an appraisal. A professional report on your home will do 2 things. Firstly it will identify things minor, and those potentially major, which need attention. You need make it easy for interested parties to make you a fair offer. In older homes this is especially important. Make the inspection report available to prospective buyers during showings. An independent appraisal will make sure your price is within range of buyers financing and demonstrate the logic of where you sit in your asking price.

 Insider tip:* Many realtors will happily refund appraisal or inspection costs at the close of your sale if you negotiate this when they take your listing.

Talk to a realtor. Ask them what their marketing plan to sell your home is. Ask them about the recent sales they have successfully completed in your area and price range. Do they use internet, social media, local press marketing? Do they produce feature sheets, print advertising, virtual tours, videos? You want someone working with you and for you who you feel comfortable and confident with.

 If you plan to try and sell your house first, without listing through an agent, ask if the realtor has a For Sale By Owner program. Insider Tip:*Many agents will happily assist people if they want to try and sell their homes privately first. They can offer lots of advice in exchange for your listing later…. if you don’t mange to sell your home yourself…. or even assistance in buying a new home.

Plan ahead. Take photographs of your property in each season. In winter a picture of a garden in full summer bloom is a powerful tool. A cozy snow covered home decorated for Christmas can help show buyers why you loved the property enough to buy it. Don’t forget to market the lifestyle that your home will allow your buyer to enjoy. We live in a unique area; this should be reflected in your marketing.

Try not to get emotionally engaged if you receive a low offer for your home. It can feel like an insult, but try not to take it as such. If you are using a realtor, bear in mind it is their obligation to present all offers. In this market it is not wise to dismiss this kind of offer out of hand. Make a counter offer, something you feel comfortable with. By reacting in a business-like way and showing you are open to negotiation, you leave the door open to this buyer if they are seriously interested. House sales that were taking a couple of hours to negotiate a few months ago are now taking several days or even weeks to get buyers and sellers to a point where they can settle on a price.

Lastly, keep a weather eye on market changes. You, or your agent, should be checking your competition and recent sales at least every two weeks to keep abreast of changes and trends. Ask any orange farmer how important weather changes are to his crops value.

Sarah Mallinson,

Licensed REALTOR©

Royal LePage Kelowna

250 878 3190

sarah@propertykelowna.ca

www.propertykelowna.ca

Follow me on Twitter @propertykelowna

 This article is not intended as inducement to breach contract for properties currently listed.