Friday, March 27, 2015

Second Time’s a Charm!: Sell the House that Didn’t Sell

Don’t get discouraged if your property hasn’t sold during its first appearance on the
market. Your home may actually have been one of the most appealing listings of its
kind—and the reasons it didn’t sell may have nothing to do with the property itself or the
market. Rather, a number of separate factors may have influenced the outcome. Take a
step back, break your original selling method into parts, and allow yourself time to
evaluate each one. Make a commitment. Establish a new approach. Stick to it. A
reassessment of your system, and a shift in perspective, may be just what you need to
realize your ultimate goals in the sale of your home.

If your listing has expired, you will usually find weakness in one of the following areas:

1. Appearance and Condition of your Property
When preparing your home to show to buyers, always remember: the decision to
buy a home is one coloured primarily by emotion, not logic. Every buyer has
different ideas of what “Dream Home” means to them. Of course, your home
won’t appeal to every buyer’s palate. But, how prepared are you? Is your home
inspiration-worthy? Have you prepared each room with the goal that it leave a
lasting impression? Have you cultivated ambiance? For example, when a buyer
stands in your kitchen, will she warm to the thought of drinking coffee at the table
every morning? Does the décor in the master bedroom inspire feelings of comfort
and relaxation? You should make every effort to make you home appear inviting
and appealing. This means covering all the bases:

  • Take care of any general repairs needed.
  • Tidy away the clutter; every room should appear well-ordered and neat. Maintain a strict level of cleanliness while showing. Everything should be clean, from shelves to carpets to furniture. While you may no longer notice that wine stain on the rug, it could be the first thing a potential buyer sees when she walks into the room.
  •  Increase the brightness and warmth in your home: open curtains, turn on the lights, put out flowers, play soothing background music.
  • Don’t forget the exterior of the house. Concentrate on the “curb appeal” of your home. What impression will a buyer get when s/he first pulls into the driveway? Keep the lawn well-groomed and the rest of the property tidy.
  • Assess any major decorating or renovation projects that your property could be in need of. If your home could use a new paint-job, for example, consider taking care of this yourself, rather than offering a repair allowance to prospective buyers. Don’t leave such changes to their imagination—if they are looking at run-down walls, chances are they will incorporate this flawed experience of your house into the price they’ll be willing to pay. Ultimately, you’re better off checking these projects off the list before showing your home.
A house that is showcased well and offers a lasting impression will sell for the best
price, going a step beyond the competition. Be sure to see if your agent will put
together a no-obligation examination of your home to assist you in looking at the
factors we’ve mentioned.

2. Pricing
The market value of your home is based on the price a willing prospect will pay,
as well as the price a willing seller will accept. Pricing your home too high can be
as financially dangerous as pricing it too low. Keep in mind, your listing does not
include the price you paid originally for your home. Often, sellers include this
original price—or the amount of money they’ve invested in their home so far—
into their selling price equation. This mistake may prove to be a costly one.
Pricing your home too high can result in prospective buyers rejecting your home
for larger homes listed at the same price. Ask yourself: did your price work for
you or against you? The “right” price balances upon a combination of:
competition within the market, the condition of the market, and the state of your

Request an up-to-date market analysis from your agent to help give you an idea of
what an appropriate asking price for your home might be. This market analysis
should give you an idea of the competition involved in the current market,
offering an assessment of homes similar to your own that have recently sold or are
currently on the market. It should also show you how long other homes have
been listed, in order to give you an idea of the average amount of time you can
expect a home to stay on the market. And it should indicate the homes with
expired listings, to help you glean some understanding of the reasons why this
might occur.

3. Marketing and Communication
Your marketing plan begins with choosing the right REALTOR® for your homeselling
needs. The REALTOR® you choose should be committed to selling your
property, ensuring your home is marketed and showcased in the most effective
way possible. So, when interviewing agents, it’s a good idea to ask them to give
you a rundown of the marketing strategy they would use to sell your home.
Investigate and compare how much money each REALTOR® spends on
advertising a property and the types of media s/he employs. How effective is
each brand of advertising?

Your real estate agent should recognize the most effective marketing strategy for
the unique offerings of your home. S/he should also articulate to you the most
direct marketing route to the largest pool of potential buyers. Be wary of agents
who rely on outdated advertising strategies. The most successful agents on the
market today are those who employ current, innovative marketing techniques.
These are the agents you can rely on to have the skills and tools required to sell
your home fast and for top dollar.

4. Operating as a Team
Communication between you and your REALTOR® ® is essential. Your
REALTOR® ® should listen to your needs and goals, and be able to translate
these into an active, effective home-selling strategy. Once this strategy has been
put into play, you should receive detailed, up-to-date feedback on the status of the
sale. Your REALTOR® should be actively involved in every showing, speaking
to agents who have shown your home, and relaying this information to you. You
should be able to work together to build an effective strategy and alter the course
if need be. Evaluate the relationship you had with your REALTOR® while your
home was on the market. Did you feel as though your REALTOR® involved
you every step of the way? Were you given the information you needed to stay
on top of progress? Did your REALTOR® listen to your wishes and concerns
and act upon them?
I am the GUY that will make a difference! 

 I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

Wednesday, March 4, 2015

“How long will it take for my house to sell?”

I like to use a simple formula called the Absorption Rate to give a realistic estimate to my clients who are selling their home.  Its a great tool that relates supply and demand in the housing market, and can be used for individual neighborhoods, specific price points, or even to evaluate a specific agent’s marketing efforts.

In order to calculate the Real Estate Absorption rate, only three paramaters are needed:
  1. The total number of active listings
  2. The number of homes that has sold
  3. The time period that the number of homes has sold over.
Here’s the formula:

First calculate the average number of sales per month:

Number of sales per month = (Number of Homes sold over specific) / (time period)
Then calculate the absorption rate
Absorption rate =  (Total number of active listings) / (Number of sales per month)

Here’s an example using made up numbers:
Number of Sold Homes = 33,163
Number of Active Homes = 14,156
10 months
So using  the above numbers and formula you get:
33,163/10 = 3316.3
Absorption rate  = 4.27 months to sell all the houses currently in the inventory in this made up market.

Remember, the Absorption  rate does not account for new houses being listed on the market, nor does it take into account Withdrawn or Expired listings either.

The current absorption rate for SHANNON LAKE is 5 months.

Are you interested to find out what the absorption rate is in your area?

Contact me today.

I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR
Coldwell Banker Horizon Realty

C 250.878.3605 O 250.768.8001

Kelowna Real Estate Agent West Kelowna Karen Guy Realtor