How to Set an Offer Price

There is no set equation to determine how you’ll reach an offer price.  Rather, the process involves a range of research and comparison that will vary with each situation.  You’ll need to look at sales of comparable properties, and factor in additional data such as the condition of the property, the current market, and seller circumstances.  With this information in hand, you will be able to determine a fair price range and, from there, establish the price you’re willing to offer.

Concentrate on the following areas to help you determine an offer price:

Comparable Sales

• Compare prices of homes that are similar to the property you’re considering in the following areas:  number of bedrooms and bathrooms, square footage, lot size, type of construction, and garage space.
• The most comprehensive and in-depth information can be accessed through the Multiple Listing Service (MLS).  Your Realtor, who will be working closely with you to set your offer price, can help you navigate this service. 

Property Condition

• Observe how the property compares to the rest of the neighbourhood.  Is it average, above average, or below average?
• Look at structural condition:  walls, ceilings, windows, floors, doors.
• Pay close attention to:  bathrooms, bedrooms, condition of plumbing and electricity.
• Also check the fixtures:  light switches, doorknobs, drawer handles, etc.
• What is the condition of the front and back yards?

Home Improvements

• Cosmetic changes can be largely ignored, but any major improvements should be taken into account.
• Take special note of:  room additions (especially bedrooms and bathrooms).
• Items such as swimming pools may be taken into account, but usually won’t affect your offer.  Your Realtor can offer your guidance in these matters.

Market Conditions

• Seller’s Market:

A seller’s market is considered a “hot” market.  This type of market is created when demand is greater than supply—that is, when the number of Buyers exceeds the number of homes on the market.  As a result, these homes usually sell very quickly, and there are often multiple offers.  Many homes will sell above the asking price.

• Buyer’s Market:

A Buyer’s market is a slower market.  This type of market occurs when supply is greater than demand, the number of homes exceeding the number of Buyers.  Properties are more likely to stay on the market for a longer period of time.  Fewer offers will come in, and with less frequency.  Prices may even decline during this period.  Buyers will have more selection and flexibility in terms of negotiating toward a lower price.  Even if your initial offered price is too low, Sellers will be more likely to come back with a counter-offer. 

• Balanced Market:

In a balanced market, supply equals demand, the number of homes on the market roughly equal to the number of Buyers.  When a market is balanced there aren’t any concrete rules guiding whether a Buyer should make an offer at the higher end of his/her range, or the lower end.  Prices will be stable, and homes will sell within a reasonable period of time.  Buyers will have a decent number of homes to choose from, so Sellers may encounter some competition for offers on their home, or none at all.

Comparable sales information helps you establish a price range for the home you’re interested in.  Adding in the additional factors mentioned above will guide your decision of whether you consider a “fair” price to be near the upper or lower limit—or the middle—of that range.  Keep in mind, this price should be the one you’d be happy with once all negotiations are said and done.  The price you decide to begin with depends on your particular style of negotiation.  Most Buyers begin the negotiation process with a number lower than the “fair” price they’ve come up with.

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

http://www.connectwithkaren.com/

Time to Sell

 Well, you’ve finally made the decision to sell!!!

But now where do you turn or who do you call?

Choosing the right REALTOR® is the first important decision to make.

Take the time to interview and ask questions.

Choosing the wrong REALTOR® can lead you down a path of frustration and worries. Who has time for that?

Let’s face it your home is probably your most valuable asset.

You need a Kelowna REALTOR®, who is invested in the process of looking after your best interests, you need someone you can depend on and trust to give you consistent and accurate information.

That person is me, Karen Guy, your West Kelowna Real Estate Professional.

I work very hard to make sure the selling experience for you is a positive and stress free one.

In today’s real estate market simply signing a listing contract and putting a sign up on the front lawn just isn’t enough to achieve results and satisfy today’s savvy home seller.

Both networking and the ability to be technologically advanced play key roles in the successful sale of properties. I aim to keep my clients ‘in the loop’ with informative and consistent communication.

I have an effective and recognizable marketing program that will help you get the results you are looking for. The Kelowna Real Estate market is very robust so this means there will be more competition out there. I will help you price your home according to today’s market so that you will sell within an agreed price range.

If you are interested in selling your home and decide to interview a Kelowna REALTOR®, I would be honored to be considered.

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.

Please contact me if you have any questions about buying or selling a home. My priority is to provide you with the ultimate service that will continue to make me your real estate agent of choice not just for today but tomorrow and always.

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
http://www.connectwithkaren.com/

Know the Market before You Buy

The asking prices of most homes on the market indicate the current state of the market, and usually mirror the prices for which other similar homes in the area have recently sold.  In deciding upon a selling price, a home-seller must establish a balance between the desire to draw the highest offer and finding a price that will be reasonable enough to attract an appropriate pool of prospects, and competitive offers.  While most selling REALTORS® counsel their clients to consider this equation when pricing their home, keep in mind that some homes are not properly priced.

It’s important to educate yourself about the current market before approaching the purchase of a home.  The market will always influence a property’s value, regardless of the state of a home, or its desirability.  Here are the types of market conditions and how they may affect you:

1. Seller’s Market:

A seller’s market is considered a “hot” market.  This type of market is created when demand is greater than supply that is, when the number of buyers exceeds the number of homes on the market.  As a result, these homes usually sell very quickly, and there are often multiple offers.  As a buyer, you need to consider that many homes will sell above the asking price; in other words, you may have less room to negotiate, and may encounter competing offers.  Though most buyers want to get a home for the lowest price possible, reducing your offer could mean opening the door for another buyer instead.

2. Buyer’s Market:

A buyer’s market is a slower market.  This type of market occurs when supply is greater than demand, the number of homes exceeding the number of buyers.  Properties are more likely to stay on the market for a longer period of time.  Fewer offers will come in, and with less frequency.  Prices may even decline during this period.  As a buyer, you will have more selection and flexibility in terms of negotiating toward a lower price.  Even if your initial offered price is too low, the seller will be more likely to come back with a counter-offer, so you can begin the process of negotiation. 

  

3. Balanced Market: 

In a balanced market, supply equals demand, the number of homes on the market roughly equal to the number of buyers.  When a market is balanced there aren’t any concrete rules guiding whether you should make an offer at the higher end of your range, or the lower end.  Prices will be stable, and homes will sell within a reasonable period of time.  You will have a decent number of homes to choose from, and may encounter some competition for offers on the home of your choice, or none at all.

Before you make an offer to purchase a home, establish whether the current market is a Buyer’s, Seller’s, or Balanced market.  Also, evaluate the price similar properties have sold for in the area, and the length of time these properties spent on the market.  Determine how the home you’re considering compares to these other sales.  Is this one over-priced, under-priced, or a fair price?  By establishing this information prior to making an offer, you will be in a position to negotiate the best price for the home and be prepared for any additional opportunities that may come your way. 

Keep in mind, a realtor is trained to provide clients with this information about the market, helping you make the most informed decision possible.  The right realtor will guide you through the ups and downs of the market and keep you up-to-date with the types of changes you might expect.  These realtor resources and connections will prove to be invaluable as you navigate the real estate market.

The other main factors that affect market value are:

1. Location:

The proximity of the home to amenities, such as schools, parks, public transportation, and stores will affect its status on the market.  Also, the quality of neighbourhood planning, and future plans for development and zoning will influence a home’s current market value, as well as the ways in which it might change. 

2. Property: 

The age, size, layout, style, and quality of construction of the building will all affect a property’s market value, as well as the size, shape, seclusion and landscaping of the yard.

3. Condition of the Home:

This includes the general condition of the home’s main systems, such as the furnace, central air, electrical system, etc., as well as the appearance and condition of the fixtures, the floor plan of the house, and its first appearances.

4. Comparable Properties:

Examine the selling and asking prices of similar homes in the neighbourhood.  Ask your Realtor to prepare you a general market analysis of the neighbourhood you’re interested in, so you can determine a range of value for a particular property.  A market analysis will provide you with a market overview and give you a glimpse at what other similar properties have been selling for in that area.

5. Market Conditions/ Economy:

The market value of a home is additionally affected by the number of homes currently on the market, the number of people looking to buy property, current mortgage rates, and the condition of the national and local economy.

 

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

 http://www.connectwithkaren.com

One for the Money, Two for the Show: Prepare the Inside of your House for Showing

Once you’ve minimized the clutter in your home, clearing out excess items and furniture, you’ll be ready to concentrate on repairs, cleaning, and decoration.  Your goal is to get each room looking its sharpest and most fresh—the better your house looks, the greater your chances that it will sell quickly and for top dollar.  Concentrate on the following areas to get your home into selling shape.

           

Walls and Ceiling:

Examine all the ceilings and walls for water stains or dirt.  We don’t often look closely at the walls that surround us, so be careful—there could be residual stains from leaks that have long been fixed, or an accumulation of dirt in an area you hadn’t noticed.

Painting the walls may be the best investment you can make when preparing your home to sell.  You can do it yourself, and relatively inexpensively.  Remember, the colours you choose should appeal to the widest range of buyers, not just to your own personal taste.  A shade of off-white is the best bet for most rooms, as it makes the space appear larger and bright.

Carpet and Flooring:

Does your carpet appear old, or worn in areas?  Is it an outdated colour or pattern?  If the answer to either of these questions is yes, you should consider replacing it.  You can find replacement carpeting that is relatively inexpensive.  And always opt for neutral colours.

Any visibly broken floor tiles should be replaced.  But make sure you don’t spend too much on these replacements.  The goal isn’t to re-vamp the entire home, but, rather, to avoid causing any negative impressions due to noticeable damage or wear around the house.

Doors and Windows:

Check the entire house for any cracked or chipped window panes.  If they are damaged in any way, replace them.  Test all windows, as well, to ensure they open and close easily.  Try spraying WD40 on any with which you’re having trouble.  This should loosen them up.   

The same can be done with sticking or creaking doors.  A shot of WD40 on the hinges should make the creak disappear.  Check to make sure each door knob turns smoothly and polish it to gleaming.

Odour Check:

Begin by airing out the house.  Chances are, you’d be the last person to notice any strange or unpleasant smell that may be immediately apparent to visitors.

If you smoke indoors, you’ll want to minimize the smell before you show your home.  Take your cigarettes outside for a period of time before you begin showing.  Ozone sprays also help eliminate those lingering odours without leaving a masking, perfumed smell.

Be careful if you have a pet.  You may have become used to the particular smell of your cat or dog.  Make sure litter boxes are kept clean.  Keep your dog outdoors as much as possible.  You may want to intermittently sprinkle your carpets with carpet freshener as well. 

Plumbing and Fixtures:

All sink fixtures should look shiny and fresh.  Buy new ones if scrubbing fails to get them into shape.  Replacing them can be done fairly easily and inexpensively.  Check to make sure all hot and cold faucets are easy to turn and that none of the faucets leaks.  If you do find a leaking faucet, change the washer.  Again, this is an easy and inexpensive procedure. 

Finally, check the water pressure of each faucet, and look for any stains on the porcelain of the sinks or tubs.

Once you’ve covered all these bases, your house will be in prime shape for its time on the market.  Congratulations—you’re ready to begin showing!

 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
http://www.connectwithkaren.com/

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
home.

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
http://www.connectwithkaren.com/

“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

14,156/3316.3=4.268

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

http://www.connectwithkaren.com/

Just Listed Lovely Lakeview 5 Bedroom Family Home

So you're ready for the big move, and you've been thinking about a family home in the area of Shannon Lake, but just haven’t found “the one” or thought you couldn't afford "the one". Well look no further, this house has a lot to offer at a "won't break the bank" price point. Quiet no through street, flat driveway, RV parking, nice flat pool sized back yard, 5 bedrooms, 3 bathrooms, and a just a lovely lake view from the kitchen and dining room right through to the living room. Enjoy your morning coffee or evening sunsets gazing at the lake and the skyline beyond. Kids can walk to Shannon Lake Elementary, the convenience store down the hill and also to the Shannon Lake Regional Park and Walking trails and kids play area…. this area has it all.

Don’t wait on this one, you’re just minutes to everything!

 For more information and details go to www.connectwithkaren.com & then call Karen Guy, Coldwell Banker Horizon Realty #102 - 3480 Carrington Rd., Westbank BC V4T 3C1 at 250.768.8001 or 250.878.3605. MLS®10094634

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
http://www.connectwithkaren.com/