Condo buying tips

A light dusting of snow on the three sisters is an ominous foreshadow on the winter to come. Word around town is for colder than average temperatures and bigger than average snowfall. There are few certainties in life; taxes, death and tourists in Fernie in the winter.

Its condo buying season, and after a dismal year of sales and sliding prices there are many good deals to be had in Fernie.

Here are some tips to help you with your first or tenth condo purchase.

1. Hire a professional REALTOR(r) to help you in your search. As a buyer you pay no fees and having someone with local knowledge is key. Plus you might get to ride around in a fancy car.

2. Make an appointment with your banker/mortgage broker to figure out what you can comfortably afford. Don’t spend your vacation time worrying about how you'll pay for it.

3. Make a list of what is important in a property before you start looking. There is no point in paying a premium for ski in, ski out accommodation if you spend most of your time in the lodge/bar/hot tub. Understand who the primary users of the property will be and their needs. This will help to narrow your search and save your REALTOR(r) gas money.

4. Think about the resale of a condo before you buy. A general rule is buy the biggest unit that you can afford (see #2 above). Studio and one bedroom units are more difficult to sell and few people over the age of 10 like bunk beds. Upper level units generally sell for more.


5. Consider the exposure of the unit. Condo units often have only one exposure, decide whether you would like to be facing the hill, south facing etc... Understand the pros and cons of your choice. A south facing unit will be warmer in the winter but also warmer in the summer. Keep in mind noise from nearby buildings and businesses.

6. Try and avoid units close to the elevator or areas where guests may congregate. Units above garage doors and ventilation ducts will be more difficult to sell.





7. If you drive and even if you don't ensure that your unit has a parking space. Underground parking is a great feature to have and doubles as a storage space for your winter toys in the summer. Again, think about the resale of the unit.

8. In most of the buildings in Fernie, skis and snowboards are not allowed in the condo units. Make sure that your condo has a storage locker for your belongings.

9. Read the fine print, or at the very least have someone with multiple letters after their name read it for you. Look over strata documents and financials and understand the condo association before you become a member of it. Your REALTOR(r) will be able to answer any questions you may have and may have sold many units previously in your building.

10. Understand your rights as an owner for rental of the unit. Buildings will sometimes have rental restriction caveats or mandatory property management in place. Fees for rental management can be as high as 50%, know this information before you buy.

11. Have a look at all of the facilities included in the building and speak with some current owners about the maintenance record.


Thank you for reading, please become a follower.

Email me anytime with your questions @ ryan@c21maximum.ca

Thanks

Ryan

New Listing - 2 Bedroom Condo

The best price per square foot in town.

Spacious and bright fourth floor condo with some of the best views of the valley.

2 bedrooms with closets, 4 piece bath, private balcony, storage room, galley style kitchen with newer fridge and dishwasher.

Includes all furnishings and linens.

Would make an excellent rental property or vacation retreat.


$168,900

Thanks for reading

Ryan

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