It's a Seller's Market in Victoria, BC, Real Estate... If the Price Is Right

So far this year the Canadian housing market in general and the Victoria, BC, real estate market in particular remain healthy. Despite recent deregulation in the Canadian real estate industry, there are still many safeguards in place to protect consumers. Interest rates are low, making many people are eager to buy before rates go back up again, and demand outstrips supply in many areas, both points good news for sellers. Still, proper pricing is needed for a speedy sale.

Right now, people are buying. In recent quarters, the Bank of Canada has cut key interest rates, and, as a result, the interest rates for a five-year mortgage have fallen from around 7.5% at the beginning of 2008 to about 5.4% and sometimes lower. In addition, capital gains on a primary residence remain tax free.

Speculation also has it that the housing market is at or near the top of a cycle with respect to the ratio of home prices to incomes. But, in general, there are currently more buyers than homes to satisfy the demand.

So, in this seller's market, the temptation is to over-price. The common misconceptions is that you can set your asking price obviously too high and then make buyers happy by dropping the price later. The flaw in this strategy is that it will prevent your house from being shown to a good many qualified buyers. And if it stays on the market for a long period, you may incur unexpected expenses and then have drop the price dramatically, even below the market value, to make a quick sale. The critical time is the first month the house is listed. After that, it generates less interest and is still competing with properly priced homes.

If your price hasn't resulted in multiple showings during the first month of listing, then it's probably priced too high-and you've missed your best window of opportunity. In addition, realtors aren't willing to waste potential buyers' time on over-priced houses. A more competitive pricing will, obviously, attract more offers, and, owing to human nature, the fact of those offers will attract even more offers. You just don't want your house to wind up stranded on the market.

The trick, then, in our case, is determining the baseline price for comparable Victoria, BC, real estate. And only a qualified Victoria, BC, realtor can help you do this. Even though the current market is a seller's market, professional guidance is a must in order to avoid the pitfalls of aver-pricing.

The main tool for arriving at a competitive price for your home is the Comparative Market Analysis (CMA). This is a report provided by real estate professionals that lists the prices of similar properties in the area, both those that are up for sale and those that have sold recently. And when it comes to Victoria, BC, real estate, this is something that Mark Imhoff thoroughly understands.

Here's how Imhoff, of the Mark Imhoff group, explains it: "I will help you price your home competitively to attract qualified buyers. The way I do this is by generating a Comparative Market Analysis (CMA) report, which will show you a range of prices being paid for homes in your area." Then, Imhoff enters your home in the Multiple Listing Services database so that other agents have immediate access to your property information.

It may be a seller's market, but it still pays to engage the services of a Victoria, BC, realtor to find the best price for your home and to get exposure to the maximum number of qualified buyers.

Dive in and see what the city has to offer you! Contact Imhoff Victoria an expert in the Victoria BC realtor market who can guide you through the diversity of victoria bc real estate and the homes that match your needs and lifestyle.