There is very little derived value from print advertising a specific property in other cities.
In my opinion, smaller condos in newer buildings typically tend to provide the best return on investment. For example, a $250,000 condo downtown will rent in the range of $1,100 to $1,200 per month; whereas, a $600,000 downtown condo will rent in the range of $2,000 per month.
In terms of construction costs (land excluded) you can build a solid home for approximately $120 to $130 per square foot. At $150 per square foot you should be getting into a very nice home and beyond $200 per square foot is for the pure custom homes. Prices can be dramatically affected by type of building lot, heating system, and finishing. For example, you can spend $5,000 on Milgard windows or $25,000 on Pella windows. If you would like more detailed pricing feel free to contact me.
We are in a soft market, but the world is not ending!
An older REALTOR® introduced me to this quote a few years ago, “REALTOR’S® Don’t Sell, Buyers Buy,” and over the last few years I’ve found it to be true!
I think right now (as in over the next year) is a good time to buy not because we’ve hit bottom (I wouldn’t know) but because I’ve always felt that buying the right property is more important than timing the market (to an extent).
Right now rates are very low, inventory is large, and sales are slow. The perfect time to take your time, not to rush into anything and to buy a home one can easily afford.
Sure, you could try timing the market; however, you will only know bottom when it starts going up. For example, if it drops another 5% and starts going back up you’ll be paying a little less but prices will be going up because inventory is low and sales have picked up increasing the odds of rushing into something that is not ideal.
Believe it or not, some of the worst buys I’ve seen occurred in 2005/2006 before the market peak as some buyers did not exercise rationale decision making during a period of low inventory.
2012 was a difficult year in real estate! 2012 sales ended at 5,747 which was 5% down from 2011 and 29% down compared to 2009. At the same time inventory continued to increase and months of inventory approached 10, constituting a buyer’s market.
An example of what a seller’s (listing) REALTOR® may charge is a commission of 6.0% on the first $100,000 and 3.0% commission on the remaining amount; however, commissions can vary. At 6.0%100k+3.0%balance a $600,000 home in Gordon Head would cost $21,000 in commission to sell. Why is it that an identical $450,000 home in Langford would only cost $16,500 in commission to sell? Identical homes, just a different location.
1# List privately for free on non-MLS® (Craigslist, Kijiji, UsedVictoria, etc.).
2# List on MLS® as a Flat Fee Listing, or “Mere Posting” with $1 commission offered to the buyer’s REALTOR®. A “Mere Posting” can typically range from approximately $499 to $999 and your listing goes on public (Realtor.ca) and REALTOR® (Victoria Matrix) MLS® for maximum exposure. The listing fee is paid upfront and typically non-refundable. Most brokerages charge a back end fee ranging from $500 to $999 upon successful sale. REALTORS® with buyers will call you directly to arrange showings and you will negotiate offers directly with the buyer’s REALTOR®. The Competition Bureau/CREA Consent Agreement defines a ‘Mere Posting’ as “a listing on a Member board’s MLS® System in respect of which the Member has chosen or agreed not to provide services to the Seller other than submitting the listing for posting on a Member Board’s MLS®.” Essentially what a Flat Fee MLS® listing, or ‘Mere Posting,’ amounts to is a For Sale by Owner (FSBO) with MLS® System exposure. After the home is listed, the homeowner takes control of the selling process.
3# List on MLS® as a “Mere Posting” with a reasonable commission offered to the buyer’s REALTOR®. Typically for about $499 to $999 (plus REALTOR® commission which may be 3.0%100k+1.5%balance, or you can set any other amount). Same deal as above, except if there is a reasonable commission offered, buyer’s REALTOR® may be more motivated to bring a buyer to your particular listing.
4# List with a full service REALTOR®; however, at a discounted commission rate, and sit back and have everything handled for you from start to end.
5# List with a full service, full commission REALTOR®, and like above, sit back and have everything handled for you from start to end. A commission may be something like 6%100k+3%balance or the equivalent of $21,000+tax on a $600,000 sale.
New building lots are available now at both Nicklaus Ridge and Hedgestone Lane! Lots on the golf course from $275,000!