This is very stressful for sellers, particularly when their hearts are set on moving. It’s emotionally exhausting to keep a home in prime showing condition and vacate it for showings only to hear that buyers aren’t interested.

A common reaction to this problem is to lower price. Some say if an offer hasn’t happened in 30 or 60 days, it’s time to reduce price. That may be true in some cases, but I’m not convinced this should be your first approach.

The first question to ask is ‘what happened when your property was listed on the market?’ Did you have lots of showings, but no offers or lowball offers only? That would suggest you’re overpriced.

Did you have very few or no showings? This would suggest that your home wasn’t properly promoted. Effective marketing uses words and images crafted to create distinct and lasting impressions. Effective marketing also involves reaching the right target audience with sufficient frequency using preferred media to differentiate your home. So, was your home promoted properly?

It’s difficult to see your property through the eyes of others. We all get emotionally attached to our homes and this gets in the way of understanding how the outside world sees things differently than you.

What did potential buyers say about your property after viewing it? Obtaining this information is critical. It can be a simple, inexpensive fix such as fresh paint; sometimes it can cost much more, like replacing a cedar shake roof with asphalt shingles. In any case, knowing why is better than not knowing, because it enables you to address the issue.

How was your price determined? Was it based on a comprehensive market analysis involving several recent sales of comparable properties? Market value is only what someone is willing to pay for your property….today. Listing your property at an inflated price, hoping you might get a taker works against you when your property doesn’t sell for months. This raises the question, ‘what’s wrong with that house?’ Accurately pricing your home upfront is the best way to obtain maximum market value in the shortest  time.

Some people say they can sell faster and get more money by not using a REALTOR®. The stats don’t bear that out, however. My view is that the services of a good real estate agent are free. That’s right, FREE! A good real estate agent should be able to more than cover their commission by the value they add, the time and problems they save and the price they obtain.

Does your property match what your target audience is looking for? The higher the price, the higher the expectation the property will deliver everything on the buyers want list. Experienced home buyers demand more than first-time buyers and expect they can move in without incurring significant additional expenses.

Is there unnecessary clutter in your abode? Those collectibles and antiques may be priceless to you, but buyers may be unimpressed. Studies have shown that homes are more likely to sell sooner, and at a higher price when they have been professionally staged.

Does your home have high curb appeal? Is it clean, well-maintained, and attractive? A RE/MAX study reported that one of the biggest turn-offs for buyers is seeing a home with poor curb appeal.

How does your property compare to your competition? Yes, buyers are looking at many properties and will compare yours to others on the market. Knowing where you win and lose in those comparisons may help you establish your best approach.

If you would like your real estate questions answered, or if you would like to discuss selling your property, please feel free to contact me at 250-253-2387. I have a new digital book soon called “Selling Secrets You Can’t Afford to Miss”; if you would like a copy emailed to you please complete and submit the request form in the Resources section of this website.

On January 3, 2023 the BC Government implemented the home buyer rescission period (HBRP). The intention was to provide buyers a “cooling off period” so they can reconsider their purchase. This legislation provides home buyers up to 3 business days to rescind their offer after acceptance. The HBRP  applies to detached and semi-detached homes, townhouses, apartments in duplex or multi-unit dwellings, residential strata lots (per Section 1-Strata Property Act), manufactured homes affixed to land, and cooperative interests in a property (per Section 1-Real Estate Development Marketing Act) that include a right-or-use of occupation of a dwelling.

Properties excluded from HBRP are residential properties on leased land, leasehold interests in residential properties, or those sold at auction or under court order or supervision.

The right to rescission cannot be waived and only buyers may rescind a contract of purchase and sale. The 3-day rescission period excludes weekends and holidays. Buyers rescinding their offer must notify the seller in writing before the rescission period expires. Please note there are specific requirements on what information this notice must contain and how it should be delivered.  Buyers choosing this option will pay a rescission fee of 0.25% of the accepted offer price which can be deducted from the deposit. Real estate licensees are required to disclose to their clients the buyers right of rescission. When the right of rescission is exercised the accepted offer is rescinded and the seller may then sell their property to any buyer.

These are the highlights of HBPR, but to get all of the information  please go to https://www.bcfsa.ca/public-resources/real-estate/home-buyer-rescission-period, and/or consult your real estate agent or lawyer.

The old adage of ‘…never judge a book by its cover’  is good guidance, but truth be told, it’s difficult to change a first impression when it comes to real estate. According to a RE/MAX® poll, a shabby exterior is by far the biggest turn-off for buyers when browsing for a new home.

Curb appeal refers to the overall appearance of a home’s exterior and includes landscaping, painting, siding, roof, driveway, and the overall aesthetic look and feel. Most people shopping for properties access MLS® and because listings usually feature a photo of the front of a home, the value of having an attractive home exterior can’t be overstated. It’s too easy for online buyers to bypass great properties by glancing at only one photo. When a home has an unkempt exterior with dead grass, flaking paint, overgrown weeds or a mossy roof, this communicates to  buyers that the interior of the home is also in poor shape. By contrast, a study in Realtor magazine reported that homes with an attractive exterior will on average, obtain a 7% higher selling price than comparable homes with a poor exterior.

It’s difficult for homeowners to fully appreciate when their property has seen its best days and has reduced curb appeal. Here’s where an unbiased, third-party opinion can be of enormous help. When putting your home up for sale don’t hesitate to contact home appraisers, real estate agents, stagers, landscapers, home designers or other experts to help you maximize your property’s curb appeal.

If you would like your real estate questions answered, or if you would like a complimentary copy of my book, “Selling Secrets You Can’t Afford to Miss” please complete the Request Form located in the Resources section of this website.

Homeowners are always looking for ways to improve their property’s value, but it is important to consider the return on investment (ROI) for a home reno. Let’s look at home renos from an ROI perspective…

1. Boosting Curb Appeal-In real estate, first impressions really matter and set the mood for potential buyers. Enhancing curb appeal can increase a home’s value by up to 5% according to the Appraisal Institute. Investing in landscaping, repainting the shutters and trim, power-washing the siding and sprucing up your front door can all add value, but perhaps more importantly, will encourage buyers to visit your home in the first place.
2. Revamping the Kitchen-The kitchen is a focal point for many buyers and can make or break a sale. Updating appliances, countertops, cabinets, backsplashes, and lighting will increase value. Kitchen renos offer an ROI of up to 70%, but also significantly increase the saleability of your home.
3. Modernizing the Bathroom-According to Genworth Canada, bathroom renos can increase a home’s value by 75-100% of the reno cost. Consider refreshing the fixtures, faucets, tile, and lighting as bathrooms are another key focal point.
4. Prioritizing Energy Efficiency-CMHC reports that energy-efficient homes sell for 10% more than inefficient homes. There are several granting programs that can help cover costs for new windows and doors, insulation, and heat pumps. Making these changes will add appeal to your home for environmentally-conscious buyers.
5. Optimizing Living Spaces-Increase your functional living space and square footage by finishing basements or attics. Basement renos typically offer an ROI of 50-75%.
6. Adding Outdoor Living Space-Outdoor living areas are coveted features given our beautiful scenic surroundings in the Shuswap. Consider adding a deck or patio to extend your living space. Well-designed outdoor living space can increase a home’s value by up to 12%.
7. Upgrading Lighting and Fixtures-There are many new energy-efficient options to consider. Bringing in more lighting, whether artificial or natural is one of the most effective ways to show off your home and add value. Consider overhead lighting, task lighting and accent lighting to brighten your home.
8. Freshening Up the Paint-A fresh coat of paint can work wonders. Use neutral tones to appeal to the broadest range of buyers. According to the Real Estate Network, painting can offer a return of 100-300% of its cost.

In a competitive real estate market, home improvements represent a great way to add value and increase saleability. And whether you are planning to sell or not, these home improvement tips can simply help you enjoy your home more fully. If you would like more in-depth information on how to best prepare your home for sale, please  email me at pdemenok@outlook.com to order a complimentary copy of my 99-page book, “Selling Secrets You Can’t Afford to Miss”.

The Speculation and Vacancy Tax (SVT) is an annual tax paid by some owners of residential properties in designated areas of BC. It’s intended to discourage housing speculation and owners leaving second homes vacant that could represent housing for others.

The program has been in operation in the Lower Mainland, Squamish, Lions Bay, Kelowna, West Kelowna and on the Island since 2018, and will be expanded next year with 13 new municipalities including Salmon Arm and Kamloops. Unfortunately, at time of writing, there is no word as to whether rural Salmon Arm, such as CSRD electoral areas, will be affected by this.

In 2024, the SVT will be applied for the first time to homes in these 13 additional municipalities that are not occupied for more than 6 months per year. Canadian citizens or permanent residents will be taxed 0.5% of the home’s assessed value, foreign owners and satellite owners will pay 2%, annually. An annual online declaration regarding usage of every home in these areas will need to be filed by March of the following year. Those who choose not to pay the tax may have Crown liens filed against their homes.

The BC Government says this tax will not apply to 99% of homeowners because of the many exemptions. Exemptions are available for: principal residence, previous principal residence, tenant-occupied residences, uninhabitable residences, secondary residences close to a medical treatment facility, recently bought or inherited properties, separation or divorce, bankruptcy, recent death of owner, property is in a trust for a minor or a charity, property is a strata hotel, licensed daycare facilities, water-only accessible properties, and others. For more information, please see the BC Government website pages on this topic.

The BC Government has proposed another new tax affecting real estate transactions, which is the BC Home Flipping Tax (no really,… that’s what it’s called!). If it proceeds, it will be applied to income from BC properties sold on or after January 1, 2025 if the property sold within 2 years from purchase, unless there’s an exemption. The tax rate will be 20% on income earned from properties sold within 365 days of purchase and will decline the longer a property is owned such that the tax is 0% at 730 days. The tax applies to income earned from the sale of properties with a housing unit, properties zoned for residential use, and the right to acquire the above properties such as assignment of a purchase contract. Both BC residents and non-residents are included. There is a long list of exemptions which includes circumstances such as divorce, death, disability or illness, relocation for work, involuntary job loss, change in household membership, insolvency, and personal safety. If you sell your primary residence within 2 years of purchase you may be able to exclude $20,000 when calculating your taxable income.  Further details on exemptions and this program are to be forthcoming. Whenever there are tax implications associated with a real estate transaction, you are strongly advised to seek the advice of a professional such as an accountant or lawyer.

What is the concern with radon in homes? According to Health Canada, radon is the second leading cause of lung cancer in Canada. Radon is a colourless, odorless, radioactive, naturally occurring gas which is generated through the decay of uranium and other minerals in the soil. It may accumulate in homes by seeping up through cracks in the basement walls and foundation. It is present in BC, but there is no good way to define safe and unsafe areas, and because radon is a gas, its levels fluctuate over time. No level of radon is safe, but a level above 200 Bq/m³ should be remediated within 2 years, and as a material latent defect should be disclosed to potential home buyers. There is no legal requirement to test for radon for home buyers or sellers, so it is not commonly included within  real estate transactions at this time. Testing requires the use of an approved monitoring device placed in a lower level of a home for at least 90 days. The “puck” is then sent to a lab for analysis and a report is provided. Costs for a test including the lab analysis total about $50.00.  Professional radon inspectors can conduct a quicker test using more expensive instrumentation. Remediation usually involves provision of a relatively inexpensive ventilation system. As public awareness of radon grows, it may become a more commonly used test in the future. Testing for radon and obtaining a “safe” level may provide homeowners with additional peace of mind as risks of lung cancer are reduced.

Three changes are being brought in for April 1, 2024, namely:

1. The threshold to be eligible for the first-time homebuyers exemption is increased from a fair market value of $500,000 to $835,000, with the first $500,000 fully exempt;  between $500,000 and $835,000 PTT is paid on a portion of the value; and above $860,000 the exemption is eliminated.
2. The newly built home exemption for purchasers who buy a newly constructed home as their principal residence will increase from $750,000 to $1.1 million in fair market value. Homes with a fair market value of between $1.1 million and $1.15 million will see a partial PTT exemption which will reduce but not eliminate the PTT; homes above $1.15 million will have to pay the PTT.
3. A new PTT exemption will be initiated for purchases of qualified purpose-built rental housing properties provided the building contains at least 4 apartment units, be non-stratified, be used as rentals for at least 10 years, and all residential uses of the building must be for rental purposes. This PTT exemption will apply to transactions for such buildings between January 1, 2025 and December 30, 2030. This new policy will work in conjunction with the Federal Government’s elimination of the 5% GST on newly built rental accommodations, and should hopefully incentivize the construction of newly built rental housing which is sorely lacking in our province.

The overall goal with these changes is to improve housing affordability in general, and to increase the availability of new  rental housing. 

Where is the real estate market going in 2024?

I get asked this question just about every day. It is of course, impossible to know the answer with any certainty. To answer this question I like rely on the views of expert economists.  In a recent press release, the British Columbia Real Estate Association (BCREA) predicted that unit sales in the Okanagan area will increase by 7.5% in 2024, with prices to increase by 1.3% to an average of $760,000 in this region. Brendan Ogmundson, chief economist of BCREA stated, “ In 2023, the housing market faced headwinds due to elevated mortgage rates, but the recent decline in fixed mortgage rates and potential Bank of Canada rate cuts present an optimistic outlook for 2024.” He went on to say, “ “As we navigate through 2024, we expect a delicate balance between rising sales and normalizing inventories, which should lead to a relatively quiet year for prices.”