What's the value of a home in Fernie.

The streets of Fernie are still littered with Real Estate signs (197 listings).

I was emailed a link to this website by a cynical friend of mine that hates the fact that I'm a Realtor. It is a spoof Vancouver based Real Estate website.

www.crackshackormansion.com

I laughed out loud while sitting at my desk and occasionally gasped at the sight of some of the photos. When I regained my composure I felt a great sense of relief, knowing that Vancouver Real Estate prices are crazy and was thankful to be working in Fernie. Prices in Fernie obviously offer great value....right??

Maybe the lack of sales aren't because there are no buyers, or that Fernie Alpine Resort won't put any money into the resort or that the Blackstone golf course is stalled again, or that the snow is better in Golden. Perhaps it is that Real Estate prices in Fernie are unrealistic for this economy. Simply put, maybe things aren't selling because prices are too high.

Whenever I would complain to my father, a retired oil salesman, about the price of gas, his comment was that the gas companies set the price at an amount that people are still willing to pay. They will up the price until a point where consumers will start to purchase less fuel, (supply vs. demand).

This system is known as the Subjective Theory of Value (STV). This system of economics is usually termed "marginalist" economics.

The STV states that the price of a commodity is determined by its marginal utility to the consumer and producer. Marginal utility is the point, on an individual’s scale of satisfaction, at which his/her desire for a good is satisfied. Price is the result of individual, subjective evaluations within the marketplace.

No matter how much you want to believe otherwise, what you paid for the house, what it cost to build, what your neighbour paid for their house, nor any other factors have anything to do with what the house is worth today.

My best advice is to get an assessment done by a licenced Realtor and get more than one opinion. Ask your Realtor to show you the comparables, and ask them how they arrived at their price. If a Realtor tells you a price that sounds too good to be true, chances are that it is. A good Realtor will be able to be honest and up-front with you regarding the price. Be careful of a Realtor that won't offer his/her opinion, try and imagine that person at the negotiating table for the sale of your home.

Be realistic in your price and your home will sell quickly, and for more money.

As always, please email any questions or comments.

Thanks for reading.

Ryan
ryan@c21maximum.ca

Market Update

How's the market

Sales are slow......very slow.

Here's the facts

There has not been a single home/condo/land/trailer sale that has gone condition free on the MLS since July 22nd, 2010.

By comparison during the same period the last 4 years,

2009 - 14 sales
2008 - 19 sales
2007 - 19 sales
2006 - 26 sales

Here's a look at the other ski towns in our area for comparison.

(CLICK ON CHART TO ENLARGE)





When we speak of the real estate economy, we use national statistics but speak locally. On the other hand the stock market is based on the national or even the world economy. The real estate markets are dependent on localised or even micro-local economy. What's taking place in Vancouver might not immediately influence what is happening in Fernie.

What affects all real estate markets together are the interest rates. There is no single barometer to gauge the complete housing market in Canada.

The micro climate of the Elk Valley is very diverse. Teck coal is hiring many new employees, but uncertainity in the life span of the jobs is causing many buyers to rent for the short term. The Calgary real estate market is slow as well, although the price of oil is high. There are a number of local businesses that have closed in the past two months, but others are thriving.

It will be an interesting fall.

Any comments would be welcome.

Thanks

Ryan

FSBO (for sale by owner)

Here's a contentious issue,

14 IMPORTANT FACTS TO CONSIDER BEFORE YOU TRY TO SELL YOUR OWN HOME


Occasionally, one can see "For Sale By Owner" signs, and some owners think that selling their own home will not only save them money, but believe they have an advantage over the sellers that have their home listed by a reputable Real Estate sales professional. Before you decide to take on this very important and legally complicated process…remember not even most Real Estate Lawyer's recommend selling your own home yourself in today's market. Here are a few of the reasons why:

1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take ten to fifteen times longer to sell on the market.

2. The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long... there must be something wrong with the home.

3. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor... and the offer automatically will follow. Remember that the buying process begins after they leave your home. If a real estate sales representative does not represent the buyer, and they are looking on their own…they usually leave the home and start to talk themselves out of the buying process. Real estate professionals are trained on how to overcome buyers remorse--a very common occurrence.




4. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.

5. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.

6. Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.

7. The majority of qualified buyers are working with experienced real estate professionals.

8. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.

9. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.

10. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate sales representatives to bring potential buyers.

11. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer's fees will be considerably higher.




12. Only real estate sales representatives have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to real estate sales people. Further, real estate sales representatives are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.

13. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.

14. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer's to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced real estate professional, can be the most important. Your Real Estate professional can act as a great mediator. Lawyers MUST act only on their client's instructions and are not paid to negotiate.


Please feel free to post your comments or email me directly at

ryan@c21maximum.ca

Thanks

Ryan

New Lot Listing 18 Aspen Crescent.

One of the nicest (and largest) building lots in Fernie.

- 0.266 acres
- treed
- all services at lot line.

$199,900 open to offers.

Contact me for Building scheme. I am also working with a local custom home builder if you require building plans.


Build your dream home here.

Thanks

Ryan

Open House - 1252 6th avenue

Public Open House
1252 6th Avenue

Saturday July, 24th, 2010

11:00 am - 2:00 pm

3 bedroom home located in the downtown area of Fernie. Perfect starter home or vacation retreat.

Refeshments to be served.

$289,995

Hosted by:

Ryan J. Frazer
Sales Representative
Century 21 Maximum Realty Ltd.
Cell : (250) 531 0303
Office: (250) 423 4113
Fax : (250) 423 4103
www.ryanjfrazer.com
http://realestatefernie.blogspot.com

You want it Sold..... or just for sale????

What are the best ways to sell a house (even in a slow market)???

FIRST IMPRESSIONS ARE HARD TO BREAK

Most home buyers form an opinion about your home within seconds
of seeing it for the first time. They will probably spend less than 15 minutes
touring your house, and they are going to see many other houses with
similar features and amenities. Give your the home the best chance of selling with a great first impression.


CURB APPEAL

A mowed lawn, clean sidewalk, fresh flowers and a tidy overall appearance can create a great first impression.

The way your home looks from the street can make or break the sale.
A large percentage of home buyers decide whether or not to look inside
a house based on its curb appeal.

Start by viewing your property from the home buyer’s perspective. Ask yourself what is your first impression of the home front, what are the best and worst features and how can you enhance, improve or minimize them? Ask yourself whether a prospective buyer would want a 1985 Malibu to be used as a planter box on their front lawn.



As an agent I have had the pleasure of showing some of the most beautiful properties in the valley, but I have also shown many great properties with terrible curb appeal.

RENOVATE FIRST.....THEN SELL



Sweat equity is one of the best ways for us to add value to our homes. A well finished home will not only bring a higher price but will also ensure a faster sell. If you expect a buyer to pay for your upgrades ensure that your work is COMPLETELY FINSHED before allowing potential buyers to see the home. Door trim, caulking, landscaping, flooring etc... should be showroom ready. Fresh paint and waxed floors are never a bad idea.

All tools, excess building supplies, and garbage should be put away out of sight. Try and avoid the look of a building site.

Kootenay siding is a ingenious way to keep your tax assessments low, but it also functions as a serious deterent to many buyers.

If you are unable to finish your renovations before selling be prepared to adjust your price accordingly.


DE-CLUTTER and DE-PERSONALIZE

This is one is a tough one for many sellers. We want buyers to be able to imagine themselves buying their own home rather than buying our home. Remove as many personal items from the home as possible, but leave just enough so that the home doesn't feel empty.

Your trophies for bowling league champion during the eighties may instill you with a sense of personal achievement but probably won't do much to help with the sale of your home.

CLEANLINESS is next to SOLDLINESS

Your house should be as clean as possible for viewings. There is no good excuse for a messy home during a viewing.

PRICE

Be realistic about your price and know your bottom line. If you have questions about the value of your home speak with a licensed REALTOR(r) who is familiar with the local market.

Please post your comments below or email me with any questions you may have.

Thanks

Ryan
ryan@c21maximum.ca
(250) 531 0303

Sparwood...not just for miners anymore

Sparwood, our neighbour to the north, boasts the world's largest truck, a fantastic aquatic center with salt water pool, some of the best pavement in the valley and exceptional deals on real estate.

Here are some stats regarding prices of homes in Sparwood versus Fernie

4 bed/ 2 bath Detached home in Sparwood - $295,500 (2430 sq ft.)
4 bed/ 2 bath Detached home in Fernie - $379,900 (2000 sq ft.)

Condos

3 bed/ 2 bath townhome Sparwood - $155,000 (1430 sq ft.)
3 bed/ 2 bath townhome Fernie - $260,000 (1080 sq ft.)

Modular Homes

3 bed/ 1 bath modular Sparwood - $39,900 ( 924 sq ft)
3 bed/ 1 bath modular Fernie - $79,995 ( 1075 sq. ft)

Thats an average of 32% more for property in Fernie compared to Sparwood (1% for every km).

I am often involved in conversations regarding the difference in house prices between Fernie and any number of Canadian cities. The old cliche rings true.. Location.. Location.. Location. Real estate is a unique investment, each property is different from the next, and location of that property is key. Its a good idea to always buy a house in a location that people want to live.

Take a short drive up the valley to Sparwood and have a look around.

Check out the developments at Whiskey Jack Golf Course, slightly ahead of Blackstone course in Fernie.

Thanks

Ryan