Want to know the secrets to successfully selling your home in Kelowna? For the better part of 20 years I have been marketing, selling, planning, communicating and teaching people how to sell products and services. Throughout all this there is one thing that never changes; change itself.
For example four months ago the inventory of nice homes in Kelowna Real Estate was plentiful. In the Central Okanagan today, we see that homes being listed for sale are down 14.33% from this time last year. I am also noticing a shortage of "good" worthy homes to purchase; and by worthy, I mean move-in ready home with tasteful updates. There appears to be a lot of homes that require substantial work to make them liveable and many purchasers today are not motivated to buy a project renovation; I don't blame them. Add to the mix the fact that interest rates are so low, that more than half of your mortgage payment now goes to principle reduction; making buying a home an excellent forced savings plan. For many it is no better to own a home than it is to rent; from a monthly payment perspective.
What does all this mean to a Seller trying to get their home sold in today's market? It means that Sellers need to address the following areas carefully in order to sell.
1. Condition of the property:
If the property requires work you must decide - a complete renovation or drop the price until someone else chooses to do the work. Updating is the best choice in my opinion but it must be a complete update. There is no point leaving the carpet in the basement from the 1970's. Switch it out - or drop your price.
2."Do the roof"
Buyer's are still on tight budgets. Borrowing money on a mortgage to pay for the "better" home is easier to do than purchasing a home and then scrambling to find money to pay for needed updates. Bank appraisals value new roofs, hot water tanks, furnaces and kitchens.
3. Internet marketing matters
No other marketing really matters. Ask yourself if your agent has a solid internet marketing strategy. It's 2013 for goodness sakes! Print, Newspaper & Magazine has not sold a listing in years. Get over it! If your agent is using a solid Internet strategy then ask the following.
- Where are most of the visitors coming from?
- How many realtors are searching your listing?
- What photos are these visitors looking at?
- How many "hits" and visits are you getting each week? And, when you adjust your price, how does this activity change? Charts? Graphs? All helpful.
- Analyze your true competition. Compare your home to others based on the following criteria and trust your experienced agent who has viewed many of the competitive homes. Price Range as it relates to location and Price Range as it relates to age, size, style and features.
4. Buyers typically fall in love with the features, style and location of the home.
Price buyers - those purely interested in price - will sacrifice features, location and style for the best price. All other buyers will start with features, style and location and seek out the best - then look for the best price.
5. Respond to the market. The "Market" is the collection of buyers and sellers set over a short period of time.
The best period of time for real estate markets is THREE MONTHS. If your neighbor sold their home down the street just like yours a year ago for $500k this means absolutely NOTHING. That buyer is gone and that home is gone. Look at what's selling in the past three months in your area and in your price range. Next, what competition do you have and how does your property compare? And, have you sold in 90 days or not? If not, and you are happy with the marketing, photos, descriptions and listing profile - then - the MARKET is telling you that there is no buyer at your price.
Today's low interest rates means that many people who "had to sell" a few years ago probably do not need to sell now. However at the same time, buyers expectations are easy to read - they either buy or they don't buy. If you have listed your home for more than 90 days - price is probably the issue.
The next question would be how do you play the market to get the best results? We are coming into the spring and now is the time to have a "good" listing and play the market. Hold on, this will be fun.
Want to know more about how to correctly price your home in this market? You don't have to be actively looking to buy or sell Real Estate to ask questions, I am always available to help!