How to Get Maximum Value for your Home

PAUL: The temperatures weren't the only thing that got cold in November and December – the Sunshine Coast real estate market also cooled. Tony, there aren’t a lot of new listings coming on the market. Does it make sense to sell a home in December right now?

TONY: It depends on your situation. I think if you have to sell between now and next spring because you're relocating for work, or you've got an investment property and you can't afford the payments because of interest rates going up, if it was me, I'd list it sooner rather than later. There are expected to be additional interest rate increases between now and spring/summer next year. Have we hit bottom as far as the market here goes? I don't think so. 

TONY: So I would say yes, it makes sense to sell your house if you need to sell your house. If you are just putting it up for the sake of seeing what it's worth, then probably not at this time.

PAUL: My interpretation of that is a potential seller has to do the math between selling now in a slower market or waiting until spring when things pick up. But you're saying the market might continue to fall between now and the busier spring market. 

TONY: Look at it from a buyer's perspective. If you're qualified for X amount at the current interest rate, you’ll be buying when prices are a bit higher than I anticipate they will be in the sping. Buyers need to do the math to see if it’s worth paying a little bit more for a home with a lower interest rate, or do they wait to buy in the spring when prices could be lower and mortgage rates could be higher.

TONY: They need to know if the total amount of expense they’ll save over the duration of a five year mortgage is going to outweigh the savings of maybe 5% to 10% that they might see in home prices, but with a higher interest rate. Most of the equations I've seen relating to that scenario show it’s better to buy now than it is to wait and buy later. On the seller side, when you sell a house, you need to live somewhere and for a lot of people, that means buying. If you’ve sold and currently need to buy, there isn't really too much you can do when it comes to trying to time the market.

PAUL: If somebody HAD to sell in December, what's your advice to them?

TONY: Get your listing as much exposure as possible. That means making sure that you get professional photos done. You get a professional video done. You highlight the home’s location. You share that in not only your local market but the greater Vancouver market, put possibly provincially and nationally.

TONY: We’re seeing quite a lot of buyers that aren't necessarily from the immediate area looking over here on the Sunshine Coast. We’ve shifted back to a primarily a retiree buyer group. Could that change back again? Yes, but that's kind of the market that's the primary driver right now on the Sunshine Coast. Historically, that’s been the case, other than the blip we got with COVID.

TONY: The most important thing is to get as much exposure as you can for your property and then price it appropriately. People that are selling now – even though it takes longer to sell and homes spend more days on market – are the ones that are getting ahead of the adjustment.

TONY: Properties that are sitting for prolonged periods of time are owned by sellers that are stuck on what their place might have been worth six months ago. They won't give up on what they perceive as equity that they've built, despite the current market conditions dictating that homes need to be priced sharply to get interest. If you do price appropriately and market the listing, there are buyers out there. In the last couple of months, I think I've had three multiple offers. We redid some promos and did more marketing for the homes. Home prices were re-evaluated and then we priced the listing more appropriately. We had multiple buyers and the sellers ended up getting substantially over asking price. That marketing strategy still works. The key is getting lots of exposure and choosing an appropriate list price.

PAUL: What's your advice to sellers that receive an offer but they see it as a low ball offer? Do they just flat out reject it? Do they work the offer? 

TONY: Depends on the list price. If you’re working with a local agent listing that is quite active, say one of probably the top 20 or 30 Realtors on the Sunshine Coast, then you want to listen to what they have to say as far as pricing. Even better, before you get a listing, get two or three Realtors to give you a competitive market analysis (CMA) and then talk about the marketing they do. Then decide on which Realtor you think is qualified and that you trust. Once you have that Realtor, listen to their advice on price.

TONY: If their advice is that your property is priced appropriately and you get a low ball offer, maybe don't negotiate as much as you would if it were WAY above the initial list price recommendation that the agent gave you. Odds are that, providing that you've had sufficient exposure and time on the market, that the “low ball” price is actually an appropriate offer price. In that case, I would work that offer. 

TONY: There is nuance in each individual listing, but in general it's much more of a buyer's market than it has been in the last couple of years. So if you want to sell, you're going to have to negotiate with a potential buyer, allow them to have subjects, all the things that are required in a more civilized market.

PAUL: Tony, what do you have for commercial listings coming on here this month in December?

TONY: Crikey, what don't I have!? The pick of the month has got to be Sluggers Gym. We had owner Mel Dempster in for an interview and that’ll be out on December 5th. Mel talks about the wonderful lifestyle he has owning a business on the Sunshine Coast, specifically a gym or a fitness facility. He told me it really fulfills him to be able to facilitate people living their best life through nutrition and through exercise. Sluggers is a highlight and it's really a piece of history on the Sunshine Coast. Excellent opportunity for a buyer to step up and make an offer on an established business that locals have really come to count on. 

TONY: I have Alpha Adventures with two permanent locations. Alpha’s been on the market for a little while now and it'd be really exciting to get an offer on that and see a new operator taking over. A younger family that’s new to the Sunshine Coast would be a great fit.

TONY: There’s a really good location up in Sechelt called Jamjar Canteen. The owners are pulling back a little bit and heading back into the city, but they’ve built a really nice, established Lebanese grocery store/catering company that's prime for someone that wants to come in and take over or put their own spin on it. 

PAUL: This is a really good time of year to buy a business because so much of what happens on the Sunshine Coast is based on tourism. I’m thinking specifically of Alpha Adventures and Smoke on the Water. Spring/summer will be bonkers, but if you buy now, you'll have a few months to get your legs under you and figure out the lay of the land before tourists descend upon you.

TONY: Absolutely. We've talked about this in the past. Some people see businesses for sale at this time of year and say, “Oh what a shame. They're going out of business just before Christmas,” or, “They’re going out of business in first two months in the new year.”

TONY: Just because a restaurant or a business is for sale, it isn't a bad news story. What it means is that the owner/operator decided that they've built it up as much as they want to. They've got what they want out of the business, and it's ready for some fresh eyes and some fresh energy. These are great opportunities and are typically a really good story.

TONY: We've had a lot of commercial sales recently, which have been good news for the sellers, good news for the buyers, and good news for the community. Timing is key when it comes to when to sell or buy a business. The seller is always going to train the buyer so it’s important sellers sell during a time of year when there’s time to teach and learn. Like you said, December is a perfect time to check out some businesses and get them ready for the tourist season starting up.

PAUL: Just before we recorded the podcast this morning, the province put out a release about our topic from last month. The BC government, lead by new Premier David Eby, is taking its first steps on addressing our housing shortage. The first change is the removal of strata rental restrictions, including age restrictions for stratas. Stratas that are 55+ will continue as is, but that's the only permitted age restriction. The provincial government is also laying the groundwork to work with municipalities on building more housing. It's all happening. You were smart, you were right.

TONY: I think the rental restrictions will have an immediate impact. The purpose of that is to open up vacant units for rentals for people to give more options for housing or rental homes and that kind of stuff. And then the age restriction being removed means that families can live in a larger proportion of the stratas that are available out there.

TONY: To me, this will have an immediate effect on not necessarily property values, but definitely on the strain that's on renters at the moment. It should free up a lot more units. Combine that with the likely selling of short-term rentals due to zoning changes on the Sunshine Coast, and I'd say that tenants should see some immediate rental relief in the first quarter of 2023. Hopefully we see a trickle down effect as far as accommodations available for local workers. With housing more available, ideally, we'll see fewer staff shortages moving into the tourist season, which is probably the main economic driver of the Sunshine Coast.