In this issue I will be covering 2 topics:
- First, a very brief review of activity for the last 2 to 4 months in the MD Foothills & Rocky View reviewing the pricing & sales averages given our new realties in Alberta, reflecting the continuing market challenges in the ‘higher end’ segment & luxury type acreages sector and slower activity generally across all sectors.
- And on a lighter side, a list of some Real Estate sayings (Proverbs) that are actually quite true in most cases and good food for thought for us all in considering various aspects of real estate. I’ve added a few of my own I’ve penned after 28 years in Real Estate with exposure to so many circumstances & observations.
Basic Market review last 120 & 60 days – Foothills & Rockyview:
Foothills – Last 120 days
Currently 178 Listings – All price ranges
46 Sales – All price ranges
Foothills – Last 60 Days
17 Sales
Average List price $860,788
Average sale price $821,112
Avg. home size 1,864 sq. ft.
Avg. acreage size – 24
Sale to listing ratio – 95%
Only one sale over $1.5M (It was an equestrian centre on 77 acres)
Rockyview – Last 120 days
Currently 279 Listings – All price ranges
66 Sales – All price ranges
Rockyview – Last 60 Days
26 Sales
Average List price $1,107,308
Average sale price $1,023, 485
Avg. home size- 2,728 sq. ft.
Average acreage size 3.98 acres
Sale to listing ratio – 93%
4 sales over $1.5M – last 60 days
Avg. List $2,124,500
Avg. sale $1,949,125,
Avg. home size – 4,460 sq. ft.
Avg. acreage size – 5.49 acres
Of note in both Foothills & Rocky View only 4 sales over $1.5M. Numbers of sales down from the same period last year. But still 100 sales over last 60 days but less over the last 2 months possibly because of the Christmas period and January being a slower month typically. It will be interesting to see if sales pick up in February to May to usually active months for acreages. Well do a review of that in the coming months.
Real Estate Sayings/Proverbs:
Insights and truisms from various real estate professionals over the years:
- Your first offer is often your best offer – so work an offer when one comes in! When a seller initially places a property on the market buyer curiosity and excitement is the highest on the front end. Excited buyers equal offers in early stages of a listing in many cases.
- The longer your house is on the market, the lower the sale price. True. The longer a house sits unsold, the lower its sale price is usually because buyer excitement wanes. Buyers wonder what is wrong when a property goes stale being on the market for a very long time and will try offering less.
- 3 most important things in Real Estate – location, location, location – still true! You can change up & renovate a home but you can’t change its location.
- Buyers can be surprising – not meant to disparage buyers but people often really don’t know what they want. What buyers say they want, and what they actually buy are often miles apart – literally! This can be challenging in the search process and prolong it or result in them giving up.
- You get what you pay for. Not necessarily true. Put another way, can a buyer overpay? Of course – that’s one reason lenders have arms length appraisers evaluating properties.
- If you suggest a listing price range to sellers they will invariably pick the higher end of the range and then resist dropping price to be more competitive. A natural habit we’ve seen time & time again.
- I’ll wait for the market to improve! It may not improve & life goes on and you pass up an opportunity to move on in your life assuming a better day will come to sell at higher prices.
- Properties don’t sell in the winter. Actually in our internet age they do as people are always on line searching and if something is right for them they will act on it anytime of the year. And if you are not in the game (not on the market) you can’t win.
- You snooze you lose. If you wait acting on a hot opportunity that’s right for you someone else will scoop it from you while you are procrastinating. Opportunity often knocks once – embrace it.
- Own the smaller home on a street of primarily large homes – there is more opportunity for investment growth. Larger surrounding properties will pull your value up.
- Less is more. True. If you put your house on the market, the assumption is that you plan to move. If you are moving, you need to “start packing early.” Without clutter and less “stuff”, your house will look better to buyers —and you will, in fact, move.
- We can’t control when a property might go on the market. The best way to seize opportunities is to be prepared. If you think real estate values might decline soon, save your money now. In a soft market, loans are pricey and more difficult to obtain – “cash is king” in soft markets.
- Fear – the crippler of no action – This includes decisions around listing & buying.
- Blaming others for lack of a sale doesn’t solve the problem – maybe it’s the property itself or the market or other factors?
- The value of a property is what a willing buyer will pay for it. It is not what a seller would necessarily like to get for it or what a seller needs. Futhermore you may not get back to value of renovations you have put in. They will just improve the marketability of the property.
- Keep your realtor at arm’s length and not reveal how you are feeling about things. Not giving respect or communicating things that may be bothering you doesn’t allow opportunity for correction and just de motivates agent’s efforts.
- Real Estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid in full, and managed with care, it is about the safest investment in the world
- If you don’t own a home, buy one if you have the resources. If you own a home, buy another one. If you own 2 homes buy a third as investment. And, lend your relatives the money to buy a home if they can’t get in the market.
- Markets always change, and as soon as there’s a downturn, cleanliness becomes a major value. It seems people try harder to present properties at their best when selling is tougher times
- Staging properties is unnecessary. Actually staged properties sell 80% faster according to extensive recent real estate surveys.
- Switching Realtors will get my listing sold! Very seldom the fault of your current agent unless they are not doing much. A listing not selling is usually the result of slow market conditions, improper pricing to market, the “right” buyer for your property not currently looking and/or your property may have a significant property negative, design flaw or objection holding it back.
© Feb 2019 by Wayne Chaulk