What is the market really like?
If you are reading this you are actively thinking about selling your home. Is it a good time? Housing prices have risen dramatically over the past few years and interest rates are still among the lowest we’ve seen in 30 years. Halifax Regional Municipality is growing, perhaps not at the rapid pace we have seen recently but now more moderately. We have, in most areas and price ranges, a “balanced market”. This means that the number of homes for sale and the number of buyers for those homes is somewhat equal.
There has been a lot of talk about rising interest rates but so far they remain historically low and are expected to remain low. It has been shown that low interest rates have been good for Canadians with real estate leading the way in creating a stable economy and wealth for all of us.
For the near future, prices will not back-slide but they will continue to go up only a small amount in each of the next three or four years. CMHC predicts that the average priced home (about $190,000) will increase in value about four percent in 2006 and less than two percent in 2007. This means that Sellers who are in the move-up market will capture their equity when they sell but won’t find their move-up home increasing to the point that it seems out of reach. There will be less “flipping” of homes without major renovations to substantiate the increase in value.
The good news for sellers is that if they have owned their home more than a year or so, they have made a good investment and should be able to sell at a considerably higher price than they paid. Not surprisingly, the homes that get the highest prices are those in the best locations and in the best condition; but there is much more to it than that.
Whatever the location and condition of your home, you want the best price you can get, you want it to sell quickly and you don’t want to suffer too much in the process! We will find that we cannot “push the envelope” when pricing homes for sale. To do so will mean certain disappointment as there are plenty of well-priced homes for Buyers to chose from on the market. Even among the homes in the best locations and in the best condition, the best prices are obtained on the ones that are priced correctly when they initially hit the market, are properly prepared for sale, are effectively marketed, are available for viewing when needed and are professionally negotiated.
That is where I come in. As a professional Realtor, I bring the skills, knowledge and tools to get help you set the best price, get it sold in the least time and with minimum inconvenience and stress for you.
Commission
What does it cost? This, to many sellers, is the first question on their minds when they interview a Realtor about putting their home on the market. There are different ways to sell your home, but none of them are free. Let’s talk about what it costs to use my services. Later on, I’ll put this into perspective by talking about other ways that homes are sold.
I work on commission. The amount of commission I charge is negotiated between you and me. Real estate commissions in the HRM area are typically five to six percent of sale price and depend upon the level of service you require.
The commission you pay me, however, is not just money in my pocket. One important point about commission rates is that for an MLS listing, the commission is shared between a selling agent and the agent who represents the buyer. For example, if the commission rate is 5%, then 2.5% is offered to the buyer’s agent. If the commission rate is 6%, then 3% is offered to the buyer’s agent, and so on. Many agents will more readily show homes with the highest percentage of commission offered to them as a buyer’s agent. In other words, half of the commission is designed to bring in agents and their clients – the people who will be buying your home.
From my part of the commission, I also pay for all of the marketing costs. These include, in order of highest costs to me: maintaining the MLS system, advertising – including newspaper and television ads, handouts, web advertising and several websites, etc., vehicle and gas, office fees, liability insurance, professional development, yard signs, listing and purchasing forms, and so on. I also must help pay for the Nova Scotia Association of Realtors (www.nsar.ns.ca), and the Nova Scotia Real Estate Commission (www.nsrec.ns.ca) , which is the organization that regulates the real estate industry in Nova Scotia. These costs account for about 30-35% of the commission that I receive.
Finally, I accept most of the risk. In addition to my costs, I spend many hours on a listing and if your home doesn’t sell, you don’t pay anything to me.
Selling your home is a full-time job and I’ll work hard to earn the commission you pay me.
My Job
My job is to sell your home for the best price and terms, in the least amount of time and at the least inconvenience to you.
For most of us, our home is the biggest single investment of money (and time) we will make in our lifetimes. Making a mistake when buying or selling could have very serious consequences. Having a Realtor represent your interests is a prudent step towards protecting your investment.
I know the law, the pitfalls, the strategy and I am a trained negotiator! It is also my job to keep you organized so you don’t miss any important deadlines, which could cost you money if missed.
It is also my job to bring some objectivity into the process. I am able to look at your home as a product, keeping in mind what I know about buyers and the kind of things they are looking for. Some features of a home are more important to the buyers of today than others, and I have a good idea based on my experience of what those features are.
I can also advise you on any repairs or updates you are planning to do before putting your home on the market. I can help you decide which ones are worth your time and money to do and which ones aren’t. Don’t waste your money and effort needlessly on things that won’t be important in helping to sell your home!
