Real Estate Sales Soaring Due to Impending Stock Market Crash!
"It's amazing that the amount of news that happens in the world every day always just exactly fits the newspaper". Jerry Seinfeld
Did you like my headline? If you watch the news, you are likely inundated with so many mixed messages about the real estate market. One day, the news reports that foreign ownership is the villain behind a busier real estate market. The next day, a news headline announces that it is low interest rates and first time home buyers who are responsible for this seemingly out of control market. How do you make sense of such fear-filled news reports and filter out the sensationalized headlines in an effort to be an informed home seller or buyer? There are 5 critical steps in order to achieve a positive real estate result.
1. What is the story or intent BEHIND the headlines? The real estate market seems to be setting new records in many cities across Canada. But what is the impact of the interest rate hike that was announced earlier this week? The last interest rate hike was in June 2010 when they rose from 0.25% to 0.5%, so this new hike was not unexpected given the increase in housing values that home owners have enjoyed. According to the Globe and Mail, a record 70% of Canadian families are homeowners, so carrying debt seems to be comfortable to Canadians - regardless of housing prices or interest rates. The article goes on to describe the real estate market in large markets (such as Vancouver and Toronto) as "boomers who paid three times their annual incomes for homes a generation ago are now selling them to millennials who are paying six times their incomes". Clearly, this small rise in rates has not had an immediate impact this week on real estate sales.
2. Listen to your gut. A few years ago, my wife and I considered buying an investment property. As I walked down the hall after having the offer accepted, something kept nagging at me, and I could not put my finger on what that lingering unease was. Johanna and I were both feeling this way, but questioned whether or not it was simply “buyer’s remorse”. Once the inspections had been completed, and several of the tenants began mentioning problems with suites that had been “ignored” by the owner, our concerns were confirmed, and we collapsed the deal. Aside from listening to our gut, having proper building and septic inspections are really worth the time and effort. Sometimes being apprehensive can feel similar to fearful intuition, but usually apprehension is based on not having all of the facts while intuition is an unshakeable feeling that seems to make little or no sense.
3. Need, greed or ego can screw everything up. According to the National Association of realtors, home sellers often choose a price based on need, greed or ego. However, as a realtor, I understand that the price that I want to get for my home has nothing to do with what the current market conditions are - which are largely determined by the simple law of supply and demand. Today, we are experiencing a low inventory of homes and it is definitely a seller's market whereby buyers are faced with fewer homes to choose from and this creates an increase in value for homes that are available. My decision to sell my own home was based on wanting to build my new family home on a property that I already owned and we no longer needed as much space. When it came to pricing my own home, I was able to detach myself personally from my own home and price it according to what similar homes had sold for, and ensure that I was not asking MORE than the current market could bear. It is probably one of the most important lessons in real estate that I have learned after 35 years in the business.
4. Get the Facts & Trends. Consumers now view between 3,500-4,500 marketing messages each and every day. Having timely updates, links to real estate articles, and sharing monthly VIREB graph stats with clients is critical to real estate success, and having an agent who understands the needs of their clients is a primary need based on research. Today, whatever messages you put onto social media and the messages and remarks that clients put online remain there forever and can easily be searched by a quick Google search. It was interesting to me to learn that social media has shown that 73% of salespeople who use social media sell more than those realtors who remain disconnected from Facebook, Twitter, etc. I suppose that it is all about recognizing the trends and new ways of communicating with clients. If for some reason you can’t read my email newsletter this week, don’t despair as I will be tweeting on Twitter (@MMSHomes) the link to my blog (http://www.mmshomes.com/real-estate-blog) which can be found on my front page of my website (www.mmshomes.com) as well as on my professional Facebook page too (McCullough Marketing Team Vancouver Island).
5. Choose experience over gimmicks. How does this apply in real estate? Sometimes, sellers will seek a realtor who seems to have incentives for sellers or promise you the moon. The agent might be very charming and self-assured and seem to have all of the answers. However, as the listing progresses, the real estate agent can become cold and detached from the sellers, seeming almost indifferent as to whether or not the home even sells. It is so important to find out the background of a real estate professional. Personality cannot simply sell your home. If an agent is so convinced that they are the only realtor who will be able to sell your home, ask them to provide you with a timeline of their achievements. What did they do before they got into real estate (especially if they have not been in the business a long time)? Ask them to provide references of past clients that you can contact.
Having a knowledgeable real estate professional is absolutely critical to your home buying success. Often times, an experienced Realtor will have already viewed a home – whether on tour or with other clients, and can share insight into a property that would not be shown on a website. This happened when our clients wanted to come over from the mainland and view a particular home they had seen on a website. Myles was able to determine that this home would not suit them as it had a very sloped rear yard that would be unusable by their young children. Photos of the backyard were not shown on the website, but because Myles had previously viewed the home, he was able to provide critical information to our clients, and save them from spending unnecessary money to travel to view this particular home. Ironically, Myles had seen a home that had been marketed for sale by owner that fit a lot of the clients’ criteria, and was able to negotiate a deal for his clients and the seller! Being able to think outside the box is an important skill that successful real estate professionals can bring to the home buying process.
If you are considering selling your home, or purchasing another property, please get the experience and expertise you need to guide you through the steps of real estate. Call me today for a FREE home evaluation at 250-751-1223 or email me today at: [email protected]. If you would like to receive listings daily that match your home buying criteria emailed at no cost or obligation, please email or call me.
Brian & Myles McCullough
If you would like a FREE, No Obligation Current Market Evaluation of your home or property, please contact us at 250-751-1223. View all of our listings and projects at www.mmshomes.com.
SELLING? If you are interested in selling your home or property, please feel free to contact us to get a FREE market evaluation of your home and learn the current value of it in today's market. This is completely at NO COST to you and you are under NO OBLIGATION to list your home. However, like any investment, it is wise to know the value of your home so that you can make informed decisions when making any changes to your investment plan or portfolio.
BUYING? If you are interested in buying or investing in real estate, view some of our featured listings on our website at www.mmshomes.com. Feel free to call our team anytime at 250-751-1223. We look forward to hearing from you.
McCullough Marketing is here to assist you with ALL of your real estate dreams. We have found that it is often the small things that make the biggest impact for home sellers, and we are happy to share with you our booklet titled "90 Tips For Getting Your Home Ready for Sale" which I can email you. Feel free to contact us by email at [email protected] or [email protected] .
McCullough Marketing is dedicated to assisting our clients and providing professional advice and guidance throughout each step in the real estate process. Don’t forget to “LIKE” us on Facebook. Here is an easy link to our McCullough Marketing Facebook page:http://www.facebook.com/pages/McCullough-Marketing-Team-Vancouver-Island-Real-Estate/123226314394628