The Sovereign – 608 Broughton – Downtown Condo Project – Victoria, BC

The Sovereign by Chard Development is probably my favorite building under construction in Victoria, BC!  Has some very cool features such as a car elevator down to the parkade and a spectacular rooftop common area!  If you have more questions about this building feel free to give me a call.

How come pre-sales developments typically don’t have price sheets posted on their websites?

Pre-sale developments in Victoria, BC…how come price sheets are not posted on their websites and why are so few units, if any, listed on MLS®?

Most developers don’t like the pre-sale price history to be public knowledge whether prices are going up or down. If prices are going up then buyers will feel like they should have bought two months ago when prices were lower. If prices are going down then buyers might not have enough confidence to buy into the development.

Bayview Promontory – 65 Saghalie
The834 – 834 Johnson Street
Mondrian – 1090 Jonhson Street
Era Condos on Yates
Jukebox Condos on View

Fair REALTOR® Lesson #2: Listing Commission

Is the amount the buyer’s REALTOR® is offered (aka cooperating brokerage commission) – is it important?

My belief is that it is important. The offered cooperating brokerage commission is the incentive for all REALTORS® to bring their buyers to your home. You will note in Part I, that about 37% of buyers are introduced to a property via their REALTOR®.

Right now there is also a large push for REALTORS® representing buyers to obtain “Buyers Agency Agreements,” which specify compensation (for example, 3.0%100k + 1.5%balance). If the cooperating brokerage commission being offered is less than what the REALTOR® and the buyer have agreed upon it is up to the buyer to make up the difference.

Example

The buyer is looking at two $600,000 homes: In the first scenario the buyer does not have to pay their REALTOR® (high cooperating brokerage commission offered by seller) and in the second scenario they need to pay their REALTOR® $7,500 (cooperating brokerage commission does not meet amount set out in “Buyers Agency Agreement”) – the second scenario may be less desirable to the buyer especially if they have limited funds available for a down payment.

A low cooperating brokerage commission can at times have unintended consequences.

Fair REALTOR® Lesson #1: How does a buyer locate a property?

“…REALTOR®’s automated listing search service.” This is a system through which the buyer receives automated emails from his or hers buyer’s REALTOR® when a listing matches his or her criteria. The buyer can see additional information not available on REALTOR.ca such as room measurements, assessment, etc; however, the buyer cannot see the name of the listing REALTOR® or the offered cooperating brokerage commission.
A REALTOR® (you or another) located the property and informed the buyer.” In the system REALTORS® use they can see both the listing REALTOR®/Brokerage and the offered cooperating brokerage commission. (i.e. 3.0%100k + 1.5% balance or $10,000, etc.).

Pre-sale Condos in Victoria, BC. 1090 Johnson Street – Mondrian

If you would like more information on the Mondrian or other pre-sale condos in Victoria please feel free to contact me! Prices at the Mondrian start at $169,900 with units ranging in size from 401 sq.ft. to approximately 800 sq.ft. Great location whether you plan on living in your unit or renting it out.

2011 Victoria, B.C., Real Estate Market Year in Review!

It was a slow year…what more can I say?

2007 = 8,931 unit sales: 12.23%
2008 = 6,519 unit sales: (27.01%)
2009 = 8,096 unit sales: 24.19%
2010 = 6,546 unit sales: (19.15%)
2011 = 6,040 unit sales: (7.73%)

Total Volume $

2007 – $4,146,651,569
2008 – $3,111,882,746
2009 – $3,775,730,705
2010 – $3,239,493,835
2011 – $2,981,977,290

Presale condos in Victoria, BC. Is it a good time to buy into this segment?

Currently there are several pre-sale condo projects in Victoria, BC.  Pre-sale condos can offer attractive investments.  For example, currently at the Bayview Promontory (http://www.bosaproperties.com/promontory/) by Bosa you can buy a 1 bedroom condo including parking, heat pump, high-end kitchen, in a 21 story concrete building for around $250,000 including builder incentives and HST.  

Two bedrooms units at the Promontory start in the $350,000 range.  Additional parking spots can be bought for $12,000. When compared with what is currently on the market, these pre-sale values represent great value in my opinion.  Please contact me for more information on developments that may not be available to the public!

Owning vs. Renting – Reporting from 834 Johnson Street, Victoria, BC

Pre-sales at 834 Johnson Street started in 2009 at $198,900. Most of the units offered in this price range were 450 sq/ft to 550 sq/ft. Today, these smaller units are renting from $1,000 to $1,150. If you bought a pre-sale unit and put 20% down upon completion, your mortgage would be approximately $600 to $650 depending on your mortgage product. Now add $150 in strata fees per month and approximately $100 per month for property taxes and you are still under $900/month to own.

In this particular scenario, owning your condo can be cheaper than renting. There are many other benefits to owning; however, it is important to note that there can also be benefits to renting! It is important to examine the pros and cons of each carefully before making the big decision!

What is a Cash Back REALTOR®?

How did your Cash Back REALTOR® model come about?

Approximately 90% of buyers go to the internet to find their home. Typically, most of my buyers contact me with a list of homes they would like to see based on the information they have gathered online (price, pictures, location, floor plans, etc.). This very process cuts down my workload significantly — in the past I would have had to spend more time with my client trying to locate an area and type of home.

Technology has made it much easier to set my clients up with real-time data; in the past I would have to send out information manually. This has drastically reduced the time it traditionally took to handle each buyer.

Lastly, the days of needing a brick and mortar office are over. The internet provides the entire store front any tech-savvy REALTOR® needs to get in front of his or her perspective clients.

What does all of this mean? It is quite simple; I can handle more clients which means I can reduce my rates by giving you a portion of my commission.

September Market Numbers!

Sales are slow while prices remain relatively flat.