The amount of tax due depends on the fair market value of the property that is transferred:

– If the fair market value is $200,000 or less, the tax is 1% of the fair market value.

– If the fair market value is greater than $200,000, the tax is 1% of the fair market value up to $200,000, plus 2% on the portion of the fair market value that is greater than $200,000.

For example:

– if fair market value of property is $150,000 tax payable is: 1% of $150,000 = $1,500

– if fair market value of property is $250,000 tax payable is: 1% of $200,000 = $2,000 plus 2% of $50,000 = $1,000 for total tax payable of $3,000

 

Don’t buy with the assumption that your home will increase in value, especially short term.

I’ve personally purchased two pre-sale condos in Victoria, B.C. in the last few years.  How do I determine whether a pre-sale is a good buy or not?  I use approximately 6 to 7 different methods and one method I particularly like is comparing the pre-sale unit to the existing inventory of newer condos.

For example, if I am interested in a 600 sq./ft. one bedroom pre-sale unit in a luxury building I will take a look at what 600 sq./ft. units are selling for currently in similar luxury buildings.  If similar completed units are selling at $300,000, for example, and the pre-sale is priced at $250,000, for example, than I would consider this enough of a spread to buy a pre-sale unit.  Hypothetically, in the above scenario if the real estate condo market stays completed flat during the 2 year build out period the pre-sale should be worth more on completion.  If the market is down a big spread mitigates the chances of losing money.  However, if completed units are selling for $300,000 and the pre-sale is priced at $315,000 then it doesn’t make a whole lot of sense to buy the pre-sale unless you really want have something that is brand new and never lived in.

 This is one of my methods of assessing pre-sale value.

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.

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!

Definition of housing bubble: A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline.

Pre-sales units sold by the developer typically sell at the list price with little or no negotiation room. In the past buyers had two options. For example, if a buyer was interested in a $300,000 pre-sale condo he or she could visit the developer’s showroom and enter into a contract for $300,000 — in this situation the buyer has no representation. Option two was to use a buyer’s agent (REALTOR®), the buyer would still enter into a contract for $300,000; however, the developer may pay the buyer’s agent a commission of 3.0%100k + 1.5%balance* or $6,000. As you can see, developers prefer to generate sales directly from the showroom as they don’t have to pay out a commission. Most developers count on approximately 70% of their sales being directly through the showroom as it is their direct benefit. Take a look at my Pre-Sale Cash Back Offer!

Jeannie and Ernest sold their Saanich home successfully using my Flat Fee MLS® package, also known as a ‘Mere Posting,’ and saved over $8,000 in commission when compared to a commission of 6%100k + 3.0%balance.  Below is what Ernest and Jeannie had say about their selling experience.

Pride of ownership is evident in this Fairfield gem offering 1950 character with today’s conveniences of a tastefully updated home. You’ll appreciate the large and bright kitchen with stainless appliances, newer bathrooms, and a separate dining area. Downstairs you’ll find two generous bedrooms, a den, an updated bathroom, and a media area wired for your home theater! Potential for secondary accommodation if desired. Outside you will find an easy care level yard providing for a peaceful retreat. Fully landscaped with underground sprinkler system and newer garden shed. A fabulous Fairfield location on a gorgeous quiet street close to Oak Bay Village, schools, and numerous parks! 200 amp service, sewer/storm replaced, and much more.

The consumer is smarter and seeking value in a difficult market.  It just doesn’t make sense anymore to spend over $20,000 to sell an average $600,000 home in Victoria!

There is a difference between current list price, original list price, and previous listing list prices.  Important to consider when making an offer.

Looking for location and quality downtown Victoria? Look no further.

If you are interested in a downtown pre-sale take a look at the review I wrote on the Mondrian.  It can be found on www.vibrantvictoria.ca

1216 Pearce Cres, a Mere Posting, recently sold for $542,000!

Flat Fee MLS® listings are also known as ’Mere Postings.’ 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. At www.flatfeelistvictoria.com we offer this service for $799+HST. Please follow the links below for more information!

Victoria Tank Service Limited performs scans for free! 

Prospective purchasers may wish to: have the property inspected for fill pipes, vent pipes, feed tubes, etc. or have purchasing offers subject to inspection by a building inspector and/or underground storage tank locator.

My range of service encompasses everything from helping the for-sale-by-owner to complete full service listings. In addition, I offer my buyers a 70% commission cash back program. I believe in a competitive marketplace and real estate commissions should not be an exception.

Open for dialogue!  Let me know what you think!  You can comment here on you can email me to markojuras@shaw.ca.

It is important for your REALTOR® to be familiar with general building practices in order to explain the many differences between old and new.

DESIGNATED AGENCY

When a brokerage designates a REALTOR® or REALTORS® to work
solely on your behalf in real estate transactions, the REALTOR® and
brokerage are bound by ethics and the law to be honest and thorough
in representing you. The brokerage must account for all money and
property placed in its hands while acting for you. The REALTOR® must:
• Provide undivided loyalty to you (Client) by protecting your
negotiating position at all times, and disclose to you all known facts
which may affect or influence your decisions;
• Obey all lawful instructions which you give the REALTOR® to act on
your behalf;
• Maintain the confidentiality of your information (financial, legal,
personal, etc.) (See following PRIVACY section);
• Use reasonable care and skill in performing all assigned duties in
the role as agent.

When it comes to choosing a REALTOR® commission payable should be of high priority.  The more commission you pay, the less equity you walk away with.  There are plenty of effective business models out there so make sure to shop around.