March turned out to be a very positive month. With the combination of lower interest rates and the positive media about the market, sellers benefited greatly. Realtors sold 137 listings in the city of Kamloops for the month of March. That was very close to the same month one year ago (152 sales). The average price increased from one month earlier and the gap between listing price and selling price tightened. The last half of the month provided more sales than the first half and the momentum has carried over into April. The weather has finally broke and should bring numbers up again for the month of April. The top areas to buy for the month of March were Aberdeen (18), Brock (18), and South Kamloops (18). Sahali was next with 17 sales. When looking at the numbers I noticed that most of the listings coming on the market in the last month or so are selling for very close to asking price. As well, Sellers are more confident that a buyer will come around and pay closer to the asking price so most low ball offers are being turned away. All signs are pointing to a balanced market by June.

Saddle up for a wild spring. We have noticed a huge increase in business and it looks like we are going to match the number of sales in March of one year ago. If this happens we will once again be increasing our total units sold by approximately 75% month over month. This is great news for all those people looking to sell. With all the great publicity that Kamloops real estate market has been recieving lately combined with the great interest rates it should make for a great spring for everybody. Can you believe that some lenders are offering a 5 year quick close at 3.99%? Kamloops truly is becoming a leader for real estate investors.

While your Realtor® can provide you with listings and sales of comparable homes in your area and current information on trends in the market, the final decision on pricing your home is up to you. Your pricing strategy will certainly affect the sale of your home, and will be different in every circumstance. Here are some general pointers to keep in mind when pricing your home:

The value of your home is not:

1. What you have in it.
2. What you need out of it.
3. What you want.
4. What it appraised for.
5. What you heard your neighbor’s house sold for.
6. What your neighbours are asking for their home.
7. What the tax office says it is worth.
8. How much it is insured for.
9. Based on memories and treasures.
10. Based on prices of homes where you are moving.

The true market value of your home is what a buyer is willing to pay:

1. Based on today’s market.
2. Based on today’s competition.
3. Based on today’s financing.
4. Based on today’s economic condition.
5. Based on the buyer’s perception of the condition.
6. Based on location.
7. Based on showing accessibility

You control:

1. The price you ask.
2. The condition of the property.
3. Access to the property.
4. Your timing.
5. Marketing.
6. Negotiation.

You do not control:

1. Market conditions.
2. Your competition.
3. Availability of financing.

Three Government Actions to Stimulate the Housing Industry

1. First-Time Home Buyers’ Tax Credit

Budget 2009 proposes to introduce a new non-refundable tax credit based on an amount of $5,000 for first-time home buyers who acquire a qualifying home after January 27, 2009 (i.e. the closing is after that date). The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.

An individual will be considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years. A qualifying home is one that is currently eligible for the Home Buyers’ Plan that the individual or individual’s spouse or common-law partner intends to occupy as the principal place of residence not later than one year after its acquisition.

For full information, visit http://www.budget.gc.ca/2009/plan/bpa5a-eng.asp#3

2. The Home Renovation Tax Credit

Budget 2009 also proposes to implement a temporary 15-per-cent Home Renovation Tax Credit (HRTC) to provide some $3 billion in tax relief to an estimated 4.6 million Canadian families. The HRTC will encourage investments in Canada’s housing stock, provide employment for tradespeople and boost sales for those who make and sell building products.

The HRTC will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009.

The 15-per-cent credit may be claimed on the portion of eligible expenditures exceeding $1,000 but not more than $10,000, and will provide up to $1,350 in tax relief.

Additional information on the Home Renovation Tax Credit is available on the Canada Revenue Agency’s website at www.cra.gc.ca.

3. Home Buyers’ Plan Enhanced

The government has earmarked $15 million to nudge Canadians with RRSPs into buying homes. Now homebuyers can withdraw $25,000 tax free from their RRSP to buy or build a first home – up from $20,000.

The Home Buyers’ Plan (HBP) is a program that allows the withdrawal up to $25,000 from a registered retirement savings plan (RRSP) to buy or build a qualifying home for the homebuyer or for a related person with a disability.

Only the individual who is entitled to receive payments from the RRSP (the annuitant) can withdraw funds from an RRSP. Withdrawals can be made from more than one RRSP as long as the homebuyer is the annuitant (plan owner) of each RRSP. The RRSP issuer will not withhold tax on these amounts. Generally, withdrawal of funds from a locked-in RRSP is not allowed.

For full information visit http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html.

Put your “home buyer” shoes on for a moment. Imagine yourself at your computer in the morning when you receive your daily new listings email. Listing A has its own web site, tons of gorgeous photos, a great map to show where it is and neighbourhood information. Listing B has no photos, no web site and can’t be found on the listing agent’s site, no map and very little information.

Which property would you consider going to see?

Lets say you decide to have a look at Listing A & C. Listing A has great curb appeal, is nice and clean and has excellent marketing materials. Listing C has an unkempt lawn, stained carpets and bad paint, with some b&w photocopies of the listing.

Your negotiating position is established the first time a potential buyer sees your home.

In the first scenario, most buyers will go see home A, with lots of pictures and its own web site, if it meets their needs. Most buyers will also dismiss home B with no photos, fearing it will be a waste of their time since they have no idea what the home is like. If they do decide to look at home B they will naturally feel more confident in the negotiating position, and feel less pressure from other potential buyers.

In the second scenario, again the buyers will have a better feeling about home A, and will also know that other buyers will feel the same way. If they decide to go for home C it will most likely be because they feel they can get a deal, and pressure the sellers to accept a lower price.

All in all, the goal is to negotiate from a position of strength, and everything you do from the moment you go on the market affects your negotiating position.