Colin Breadner's Prince George Real Estate Blog

14 Important Facts to Consider Before You Try to Sell Your Own Home.

Occasionally, one can see "For Sale By Owner" signs, and some owners think that selling their own home will not only save them money, but believe they have an advantage over the sellers that have their home listed by a reputable Realtor©. Before you decide to take on this very important and legally complicated process…remember not even most Real Estate Lawyer’s recommend selling your own home yourself in today’s market. Here are a few of the reasons why:

1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take ten to fifteen times longer to sell on the market.

2. The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long…there must be something wrong with the home.

3. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor… and the offer automatically will follow. Remember that the buying process begins after they leave your home. If a real estate agent does not represent the buyer, and they are looking on their own…they usually leave the home and start to talk themselves out of the buying process. If the buyer is represented by a real estate professional Realtors© are trained on how to overcome buyers remorse--a very common occurrence.

4. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.

5. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.

6. Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.

7. The majority of qualified buyers are working with experienced real estate professionals.

8. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.

9. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.

10. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate agents to bring potential buyers.

11. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer’s fees will be considerably higher.

12. Only real estate agents have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to agents. Further, real estate agents are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.

13. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.

14. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer’s to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced real estate professional, can be the most important. Your Realtor© can act as a great mediator. Lawyers MUST act only on their client’s instructions and are not paid to negotiate.


I hope that you find this information helpfull when you consider selling your home.

posted by Colin @ 2:46 PM 0 Comments

Investing in Prince George

Interior offers quality, affordability
Short-term opportunity for first-time buyers in Prince George

Paul Luke
The Province
Wednesday, December 12, 2007

Initiatives Prince George's Gerry Offet says prices are cheaper than those in rival markets.
Potential homebuyers appalled by prices in Metro Vancouver and Victoria would be smart to cast their gaze at cheaper Interior markets, a new report shows.

The province's most expensive cities for first-time buyers, based on price per square foot, are Vancouver and Victoria, Century 21 Canada said yesterday.

B.C.'s most accessible markets for first-time buyers this winter are the smaller Interior cities of Prince George, Trail and Castlegar, the real-estate firm said.

In Vancouver, would-be buyers are staring at a pricetag of $284,900 for a 611-square-foot condo, with one bedroom and one bathroom, in the West End near English Bay and Stanley Park, Century 21 said.

That amounts to $466 per square foot.

If you want something pricier, you could spring for a 412-square-foot condo in downtown Vancouver, with one bedroom and one bathroom, for $281,000, or $682 per square foot.

As for Victoria, a 1,000-square-foot condo in the Gorge area of Saanich with two bedrooms and two bathrooms, will ding you $260,000, or $260 per square foot.

On the other hand, a first-time bungalow in Trail -- 800 square feet with three bedrooms and one bathroom -- costs $170,000, or $213 per square foot.

"In Prince George, a typical first-time home is a 1,170-square-foot bungalow on a 6,970-square-foot lot on Fern Crescent, with three bedrooms and two bathrooms, for $221,000, or $189 per square foot," Century 21 said.

Initiatives Prince George president Gerry Offet says there's a short-term opportunity for first-time buyers in the Interior city of 77,500.

Housing prices have been climbing at 17 to 20 per cent a year for the past two years but are still cheaper than those in rival markets such as Trail and Kamloops, he said.

"It's very affordable," Offet added. "We've still got quite a ways to go before getting to parity with competing markets."

A recent survey found that average first-time homebuyers in Prince George pay 28 per cent of their gross family income on accommodation, Offet said.

That compares with 78 per cent in Metro Vancouver, he said.

Are there any other reasons besides affordability to consider buying that first home in Prince George?

"Quality of life," Offet said. "You aren't spending two or three hours a day commuting to and from work. You're spending 20 or 30 minutes."

Vancouver's investment community has been quicker than potential homebuyers to recognize the opportunities in Prince George, Offet said.

Lower Mainland investors have been buying multi-family units and apartment blocks for the past two years, he said.

Century 21 said B.C. homebuyers are embracing condos, townhouses and other multi-family dwellings and turning away from single-family homes.

In B.C., the proportion of homeowners in single-family homes fell to 63 per cent in 2006 from 74 per cent in 1996, Century 21 said, citing Statistics Canada data.

"In Vancouver, the trend was even more pronounced. The proportion of homeowners in single-family houses declined from 61 per cent to 49 per cent since 2001," it said.

pluke@png.canwest.com

© The Vancouver Province 2007

posted by Colin @ 2:15 PM 0 Comments