My listing strategies for the current market:
When listing your property for sale there are two considerations to be made before you approach the market.
Price:
Pricing your property correctly is the single most important factor in having it sell in today’s market. Gone are the days of a good staging company coming in and transforming your home into a buyer’s haven, attracting multiple offers. “IT IS ALL ABOUT PRICE!” Since the markets peak from November ‘07 to May ’08 it has been steadily slipping downward. In order to succeed in selling your home in this market your main goal is to get under the market. As your Realtor I will find every comparable in your area (sold, active & expired listings) - find out what the lowest sale price on the market has been (in a relevant time frame) and compete with it (in 9/10 cases). This is called listing your home “under the market”, to make it appealing enough to sell, As soon as possible. This is the only method to prevent your listing from “chasing the market” down with periodic price reductions, making your listing appear “stale”. Following the market down can be a very expensive process.
If your listing is not priced below the market and does not sell within a reasonable amount of time you are going to be put into the position of reducing your price. The most proven method of a price reduction is a 10% drop. This may seem like a lot, but keep in mind you have tried to appeal to the current buyers buying power you are listed at, but did not succeed. You must now try and appeal to the market below what you are currently targeting. This is the market with 10% less buying power. Any price reduction less than 10% is not going to give your property the opportunity it deserves to sell in this market, within a reasonable amount of time.
Exposure:
I believe that marketing your property properly is the second most important step in the sales process. This must be done correctly from the onset to reach your properties specific demographic of buyer as quickly as possible.
While working with Platinum Project Marketing (the pre-sales division of Macdonald Realty) I learned many proven methods of marketing Real Estate in our very unique city. Platinum, like Rennie Marketing & Mac Marketing is based here in Vancouver. They have marketed and sold pre-sale developments from towers in the downtown core to resort properties in the Okanagan.
Each and every listing is unique - this is why I create an individualized marketing and exposure plan for each of my client’s properties. Listed on the page “MCINNES MARKETING SYSTEMS” are some of my specific exposure methods proven to provide the most effective and efficient exposure and results.
I am not going to sugar coat the market or your situation to try and get your business. If it looks good, I will tell you. If it looks bad, I will tell you. I’m not here to list your property unrealistically, I’m here to research, facilitate and create the best situation that works for you and your home in this current market.
Regards,
Jay McInnes
To sit down and talk about selling your home today contact me HERE.
Selling Costs:
Legal fees:
Legalities of a Real Estate sale can be dealt with through either a Notary Public or a Lawyer. These fees cover (Attending to Execution of Documents, Costs of Clearing Title). There applicable average prices are listed below:
Notary Public: $350 - $500
Lawyer: $600 - $800
Mortgage pre-payment penalties:
This is a fee that may be charged by your Mortgage Holder (Bank / Credit union) to discharge your mortgage (end it early).
Real Estate commission:
The rate of commission I charge is 7% on the first 100K & 2.5% on the balance.
From that an Industry Average "Buyers Agent" commission is offered of 3.255% on the first 100K & 1.1625% on the balance.
Note: 5% GST is applied on all commissions when selling a property.
Capital Gains Tax:
Currently 50.00% of realized capital gains are taxed in Canada at an individual's tax rate. (ie $100,000 CG with 43% tax rate will attract $21,500 of tax.) Some exceptions apply, such as selling one's primary residence which may be fully exempt from taxation.
For example, if your capital gains (profit) is $100,000, you're only taxed on $50,000 at your marginal tax rate. That is, if you were in the top tax bracket you'd be taxed at approx 43%. Formula for this example using the top tax bracket would be as follows:
(Capital gain x 50.00%) x marginal tax rate = capital gain tax
= ($100,000 x 50.00%) x 43%
= $50,000 x 43%
= $21,500
In this example your capital gains tax on $100,000 is $21,500, leaving you with $78,500.