Why did your property not Sell? – Two important Factors

Have you been trying to sell your property with no luck? You are not alone every month there are about 300 listings in the Kamloops area that come off the market without selling. Here are two important factors that surprisingly get over looked or ignored.

First, price is a huge factor on whether or not you get an offer from a potential buyer because buyers always want to see value in what they are buying. When you are trying to determine the right price for your house the best way for you to know that number is by knowing what comparable houses have sold for recently. You should never really take an appraisers evaluation or even real estate agents valuations to heart unless particular comparable houses back it up. The market is dynamic so you should get updates on those houses to see where the market is going. The market can change after just one sale or even before a sale happens. These market changes occur for a number of reasons but they can be monitored to a certain extent with inside industry information. Real Estate agents earn their pay by converting as many potential buyers into actual buyers and by limiting unnecessary risks. As a general rule of thumb, in the real estate business poor real estate agents perform 5%‐15% worse than a good real estate expert.

Secondly, when a buyer is trying to buy something outside of their disposable income it becomes a huge decision for them, a life changing event. Whenever I deal with a buyer I always sit them down and ask them about their particular needs and wants. I use this time with them to educate them about the market conditions just so they know what to expect before we even start going to view houses. The information they give me and information I provide them greatly increases the speed and likelihood they will make an offer on a house I show them because I am going to do a very good job of identifying their needs. I will just show them properties that meet their needs then I will gain a commitment from them. If I don’t go over their needs then it is likely I will be running around town with them looking at so many properties everyone’s head will start to hurt, and a top quality sale will be hard to come by. Buyers are free agents they have no commitments– they can be in the market one week and out of the market the next so it is important to get them to commit sooner rather than later and address their needs to help insure every sale is a win/win situation, for both the seller and the buyer.

If you are thinking about selling in the Kamloops area contact me for a no obligation real estate consultation.  I want you to make the most amount of money for your property.

Should You list your Property during the Winter?

There is a myth that listing your property during the winter months is a bad idea.   In reality if you are hoping to sell your property there is no bad time to list your property, especially in a Buyer’s market where you could potentially lose out on that elusive perfect buyer.  The Buyer that loves your house just the way it is and therefore is more likely to pay you a premium dollar.

In fact, a lot of sophisticated Sellers prefer to list their property in the winter.  During the winter months there will be less people “just looking” at houses which means that you will tend to get fewer viewings but is that truely a bad thing?  The buyers who are looking in the winter are usually more serious – they are typically out-of-towners who NEED to find a house in a short amount of time or another Kamloopsian who JUST sold their property and NEED to find a place of their own quickly as well!  Both types of buyers are just hoping to buy a property for fair market value and want to do it as quickly as possible so they don’t end up homeless or stuck in a long term rental.  Fair market value has a lot to do with what has sold recently (in the last couple of months) and usually has little to do with what is currently active on the market.

If you are considering Selling our house in the Kamloops area feel free to contact me for a free real estate consultation to determine if the market conditions are right for you to make that move you are thinking about.

Multi-Unit Family Residences – Apartment complexes in Kamloops BC

Kamloops has always had a great rental market when compared with other BC interior cities like Kelowna and Vernon. Kamloops is known more of working class town where as Kelown and Vernon have had more interest seniors downsizing from large cities like Vancouver and Victoria.  As a result home prices tend to be a little more expensive in Kelowna and Vernon.

One of the reasons Kamloops has had such a great rental markets over the years has been a lack of multi-family residential units – apartment complexes.  The majority of apartment complexes that are out there are old (40 years) and have been well used. Look for this trend to change a bit as demand continues to grow for rental properties in Kamloops.

On top of this large corporations have snapped up a majority of the apartment complexes in Kamloops, with the Kelson Group leading the way.  This all translates into a Seller’s market for multi-unit residential rental units (6 or more units) as well some rent stability for current landlords.

Ask A Real Estate Expert: Should Sellers be present during a Property Showing?

So should Sellers be present during a property showing?  Sellers could answer any of the questions that the Buyer might have, and that would be good, right? In actual reality it is bad, believe it or not. The only question that the Buyer wants to know while looking at a property for the first time is if they can see themselves living there.   If the Sellers is present during the showing, or even if the Seller’s pictures are everywhere, that makes it harder for the Buyer to picture themselves in that house.

I have had experiences where the Sellers have been present during the viewing of their home.  They answered all of the Buyers questions and end up talking too much. In the end the Seller walks away thinking the Buyers are really interested in the property and the Buyers walk away thinking the Sellers really love THEIR house. Unfortunately the Buyers are looking for their own home.

If you are thinking of buying or selling kamloops real estate check out this great website.  I am a Kamloops real estate agent, or Kamloops Realtor and would like to learn about your real estate needs.

How to Maximize your Down Payment for your First Home

• Make a $19.2k RRSP contribution just three months in advance of buying a home…
• …assuming a 30% tax rate, deposit $6k tax refund back into RRSP…
• …then withdraw $25k maximum under HomeBuyers’ Plan following increased limit in
2008…
• …to be repaid to the RRSP in equal installments over 15 years with no interest penalty and the payments are not counted in mortgage serviceability calculations…
• …at, say, a 4% rate of interest, this equals $8k in interest savings over 15yrs…
• …which means the initial $19.2k RRSP deposit has been parlayed into an effective down payment of about $33k, or an extra 70%+
• No restrictions on the source of the original RRSP deposit (can borrow for it, ‘gift’, etc).
• ie: the zero-down mortgage can still theoretically exist but most don’t structure it like this.
• If a couple, and both are first time home buyers, double all of the math above (ie: turn $38k from liberally allowed sources into a $65k down payment)
No warranties, please consult your accountant regarding current legislation. Only applicable for first time buyers.

 

Kamloops Commercial Real Estate

Kamloops commercial real estate is thought by many as one of the best investments you can make.  Unlike residential properties commercial real estate serves really only one purpose, makes money.

In commercial real estate prices are usually determined by CAP rate.  The cap rate is a measure of the income of the property after fixed costs like taxes, management, and common yearly maintenance are taken out. The lower the CAP rate usually means the more likely it is that the investment is risk free.  For example, for mobile home parks where there are many income streams (renters) and relatively low risk of non payment (at least in theory) and steady income through out the year, it is not uncommon for properties like this to fetch 6% cap rate.  Where as for self storage business the cap rate is usually a little higher do to the more risk involved.  For example in self storage businesses there usually more employees, more client turnover, and more seasonal type income, so the cap rate for this type of business is usually around 8%-10%.  For business like u-haul it classified as a retail property and there for it usually at a 12% rate.

Going forward, what is great about owning commercial real estate is lower mortgage rates get the better the CAP rate you could potentially command.

If you are looking for a Kamlooops commercial real estate for sale.

Sun Peaks Resort to get a New Hospital?

For those of you with limited knowledge of Sun Peaks resort you may not know that there is a Health centre there right now that is manned during the winter on limited hours after the ski day is done. It services lots of local employees and a few unlucky visitors. The visitors that get mildly banged up during the course of a day of sking or snowboarding.

Sun Peaks became a municipality about 2 years ago and right now there is talk about building a 3 million dollar facility that will eventually house a more substantial health centre.  In the mean time there is talk of relocating municipal offices to this new building.

In my opinion, I am not sure if Sun Peaks is ready for this kind of an investment.  Currently there is a fair share of empty commercial space in Sun Peaks as the resort has been predominately a one season resort. Recently that has started to really turn the corner and Summer attendance has started to drastically improve.  I am sure it helps to hold great free concerts through out the summer like Sun Peaks has done in the last two years!

Based on my knowledge of the Sun Peaks, from being a resident there and selling real estate there for the past 5 years I think the Resort and the Municipality would do very well to consider putting in a West Morrisey Chair lift instead of proposed future health centre.   There is two main reasons they should consider this option:

  1. Sun Peaks has been know as a family friendly resort with lots of beginner and intermediate runs.  The west morrisey terrain has some of the best snow conditions and steepest terrain on the mountain.  Opening this area up will no doubt make Sun Peaks more attractive for ski enthusiasts looking for gnarly terrain.
  2. Adding this chair would make Sun Peaks as whole a true ski in/out Resort and they could advertise it as such! Locals and visitors alike seek out the convenience of ski in/out locations.  By adding the west morriesy chair lift it will increase the cities revenue from nightly rentals and property taxes from the real estate around that area.  Currently there are lots of lots for sale in that area that I am sure the city would love to see developed! If a chair would go in there would be a lot more demand for this location that already features some of the best views on the mountain.

I would love to see Sun Peaks really take off because I think it has lots to offer to anyone seeking a special place to call home. What Sun Peaks decides to do in the near future will have an impact on just how fast Sun Peaks develops.  I am a Kamloops real estate agent, or Kamloops Realtor and would like to learn about your real estate needs.

Kamloops Sahali Condo – Highlighting Summit Place

If you are considering buying a condo in the Kamloops area for an investment or your primary residence you are not alone.  Because of the relative low maintenance and healthy demand for rentals condos make a lot of sense.

Summit Place is located at 1810 summit drive and offers some great features that are hard to find in other comparable properties.  This is an older complex but a well maintained one. Summit Place has one of the largest common properties available in sought after area of Sahali. Because of all this space developers have present offers to purchase land from this complex.  Aside from this obvious positive, the units themselves all have great views and above average storage space.  To the point where all of the units have room for in unit laundry.  There is a great hiking park close by that allows you access the downtown core.  It is not surprising that investors looking to invest in multiple rental units have bought up properties in this complex.

Summit Place Kamloops BC, 1810 summit drive

Kamloops BC Condos for Sale

If you are considering buying or selling a condo in Kamloops contact me today!  Make an informed decision and get the results you want.  I am a Kamloops real estate agent, or Kamloops Realtor and would like to learn about your real estate needs.

Kamloops Senior Living – Downtown – Downsizing

Kamloops over the years has grown to become an affordable place where seniors have gone to retire. This trend is probably due to Kamloops’ warm climate, great geographical location, and friendly atmosphere.

One of the areas that has always been in demand is real estate in downtown Kamloops. This in large part because the amenities that the downtown provides its residences, with major shopping centres and mom and pop shops alike.  During the summers there is free evening concerts in a parking walking distance the downtown core.  There is also a farmer’s market that offers some of the highest quality locally grown fruits and vegetables.

One of the popular choices for downtown senior living is Desert Gardens.  This apartment complex has always been a popular choice in large part because it offers residents easy access to a community centre that is located in the same building. This unique feature makes it easy to socialize with other senior citizens, through fun games, workshops, and community events.  To join this community centre only takes a small $15 annual fee and there are over 100 members.  If you are interested in looking at what is currently offered for sale in Desert Gardens fell free to contact me.

Desert Gardens Community Events BoardDesert GardensDesert Gardens Kamloops Real estate

Stats on Single Family Homes in Kamloops Over the Years

Kamloops Real Estate Statistics

This is a graph showing the relationship of list price to sell price of homes in Kamloops over the years as well as the average house values. The data is collected from local real estate companies and local real estate agents and processed by our local real estate association through mls realtor data. This graph represents residential real estate in Kamloops.

If you or someone you know is looking to buy or sell real estate in Kamloops please feel free to contact Andrew Thompson from Century 21 for detailed information about the real estate market.