The Christmas Real Estate Market

Hi Everyone,

Sorry for the delay in posting - I recently hosted Christmas at my house for the first time and it took a little more planning and work than I thought! Every day I appreciate my parents' efforts more and more...

I have been very busy on the real estate front too; in fact I've been surprised at how many people are using the Christmas holiday to look for homes on Salt Spring. I had always thought of the island as a little sleepy this time of year, and while that is the case in most businesses, it sure doesn't apply to real estate. I, personally, have a handful of buyers who were only available to view property between Christmas and New Years. I can't imagine the overall level of activity in the real estate community right now.

It's not uncommon for sellers to take their homes off the market for anywhere from a week to a month around Christmas just to afford themselves a little peace over the holidays - but after seeing the number of clients I alone have that are viewing actively right now, I couldn't recommend it - even though I can understand the desire.

Anyhow - back to work for me.

Hope you and yours had are having a terrific holiday, and I wish you all a prosperous and happy new year!

All the best - Neacol

Revisiting past posts #3. The Buying Process

Here's an old post that I found to be helpful to first time buyers, those new to the process in BC, and those who haven't purchased a home in a long time.

The Buying Process

Buying is an exciting time in your life, but make no mistake, it is a process. Obviously, there are several stages between deciding you'd like to buy a new home, and actually moving in. Every time I start working with a new buying client, I like to sit down with them and make sure they understand the when, who and why of each step, so they know what to expect, when they need to have a deposit etc. I thought I'd list it out for any buyers out there reading this today. Hope it's of use to some of you.

1. Deciding you want to buy - this is the first step, and it's by no means a small one. This involves examining your current living and financial situations very carefully, and it also involves getting very, very excited.

2. Mortgage Pre-Approval - This will let you know what price range we can look at.

3. Meeting with your Realtor® - I will arrange a meeting with you to discuss what exactly you are looking for. Number of bedrooms, pet restrictions, zoning, area etc will all be covered. I will also go over the Working with a Realtor® pamphlet and Exclusive Buyer's Agency Contract with you at that time.

4. Search Property Listings - I will set up a personal website for you that will automatically update with properties according to your preferences as soon as they come on the market. I will also search the listings daily for you, to see if I can spot anything that may be of interest.

5. View Properties - Once we find something that looks right, I will arrange a viewing for you. I also encourage you to check out Open Houses you come across, but please let me know when you are doing so if possible.

6. Offer - When you find a property that's you wish to purchase, we will write up the offer and I will present it to the Seller and Seller's agent. There may be counter offers or questions, so I'll need to be sure I am able to contact you when I am doing this.

7. Satisfy Subjects - Once we have an accepted offer, we will work to remove our Subject Conditions. Subject Conditions are placed in the contract to provide you an opportunity to really examine your potential purchase. We will generally have about a week to do so. Some examples of Subjects are: subject to inspection, subject to financing, subject to the approval of the land title. We will partner to decide on the best subjects to include in your offer.

8. Remove Subjects - When we have satisfied all the subjects, we will remove them, creating a firm contract. At this point, you will need to provide a certified check or money order for at least 5% of the purchase price to be placed in deposit. This is to insure you will complete the deal on the completion date. When the deal completes, the deposit will become part of the purchase price. (It is essentially your down payment)

9. Completion Date - This is the date the money changes hands, and the land title for your new home is put into your name.

10. Possession/Adjustment Date - This is the date, usually one to two days after completion, that you can finally get the keys to your home. The adjustments are generally made to this date as well, which means the property taxes and other closing fees are adjusted to this date.

As always, please let me know if you have any questions,

All the best,
Neacol

Revisiting past posts #2. What to redo? How to get the most return for your limited reno budget

Here's another post from my last blog that I think is as valuable to the Salt Spring market as it was to the Vancouver market.

What to redo? How to get the most return from your limited reno budget.

Most every homeowner will renovate their homes in some way over the course of owning it. Some renovate simply to personalize their space, and others to increase their home's value.

This entry is for those of you who are considering updates in the near future and want to have a maximum return on that investment, but have a limited budget. I want to give you a good idea of the best features to upgrade, and the best ways to make your home more appealing to potential buyers in the future.

The first point I want to stress is any reno you are hoping to increase the value of your home needs to appeal to as many people as possible. For instance, you may find paw print details in your tile work very attractive, but many people may not share your taste. If you spent thousands on that tile job, you'd be very upset to find that it will be essentially worthless to many buyers - in fact many people might even see it as a financial detriment since they'll have to have the tiling redone to make the home appropriate for them. If you are looking for a very good return on your reno investment, it's best to play it safe and stay within neutral, or the current popular, design themes.

Overall, your reno should make your home appear fresh and new. You should try to eliminate the popular colours of yesteryear (pinks, teals) that will date your home, and anything that feels dingy. There are a few rooms you should pay special attention to; the entry way, the kitchen and the bathroom(s).

Entry Way/Foyer - As I've mentioned in previous posts, many people will decide if they could live in a home within the first seconds of walking inside. For this reason, the first view they see in the home, whether it's the foyer, hallway or living room, should look great. I recommend fresh paint, new baseboards if needed, and good flooring. If your home has older carpeting, I'd recommend spending some of your reno budget on wood flooring, or at the very least laminate. This look is very popular, and gives a fresh, modern, and clean feeling to a place.

Kitchen - The kitchen is the heart of a home. It's never a bad investment to update old appliances, counter tops or cabinets. Stainless appliances are all the rage right now, but unless it matches the over all decor, white or black appliances are just as good. Granite counter tops are always nice, but replacing old, stained, marked up counters with anything fresh will be an improvement. Changing out cabinets should be thought out very well, as they can be pricey to replace. Sometimes they can be refinished, or repainted, or even just have new doors put on to change the look without spending a fortune. Make sure you have an over all colour scheme for any room before you begin replacing items. If your kitchen has a linoleum floor, seriously consider replacing it with tile.

Bathroom - Pink or blue toilets, sinks and tubs are a fad of the past and should be eliminated if at all possible. Otherwise, fresh counters, tile instead of linoleum and just being sure everything in the room actually works the way it's supposed to are good bets. Some current popular bathroom items are big shower heads, basin sinks and deep tubs. Those items will make your bathroom stand out as modern and upscale.

I've spoken with a number of people and given advice on what they should spend their reno dollar on for their homes. I'd be more than happy to answer any questions you may have about your own home.

Hope this has been informative!

All the best,
Neacol

Revisiting past posts #1. Should I Sell my Own Home?

Hi Everyone,

I've been re-reading my old blog from when I worked as a Realtor(R) in Vancouver, and found many of my entries there are pertinent to the Salt Spring market. This week I'll be visiting some of those posts on this site - and revamping them as needed for the island.

Here's the first one, which I think is of particular importance.

Should I sell my own home?

A friend asked me recently if I truly thought he needed to use a Realtor(R) to sell his home. After all, if the market is so good, shouldn't it just fly off the shelf?

Anything is possible. It's completely possible that he might be able to find a buyer on his own, and he's a smart man, he should be able to figure out the contracts etc. But the reality is, I cannot in good conscience recommend that course of action to a friend, or anyone else. It is a dangerous, and potentially lengthy road he'd be traveling down. Here's why:

Cannot advertise on MLS - only licensed realtors are able to post listings on MLS. It is estimated that up to 99% of buyers search MLS first and foremost to find their next home. To sell your home on your own, you would be cutting yourself down to nearly 1% of all possible buyers. Less buyers means less interest, which, chances are, means a much longer time on the market, and a lower selling price. In fact, most 'For Sale By Owners' end up working with a Realtor(R) after several months on the market for this reason alone. Additional information for Salt Spring: The Salt Spring real estate community also has a very active 'listing sheet' information and advertising system in place. To not have a listing sheet out to all the real estate offices can, essentially, make your home invisible to the market even further.

Attracting deal hunters - Many of those who do look for listings in places other than MLS are looking for a real deal. The mentality is that if you are saving the cost of a Realtor(R), that savings should be passed on to them. Often you will end up with offers much lower than your asking price.

Legal recourse and contract omissions - One of a Realtor's(R) main jobs while listing your home is to ensure, in every way they can within reason, that you are protected. They ensure your beliefs about your property are indeed fact, to be certain there are no misrepresentations in the contract or on your Property Disclosure Statement. There are serious financial consequences if it is found that your home was misrepresented in a sale. Certainly, your lawyer will be able to help you to a certain extent, but how much do they know about buried oil tanks and termites? We are trained with the most up to date information regarding contracts and property law, and we know how to double check your information for you.

Loss of negotiation power - Negotiating on your own behalf can be sticky. Especially when selling an item like your home, it's very easy to get emotional, flippant, or worn down. A Realtor(R) soothes these troubles by being your front man. They will represent you, get the low down, and then can discuss the details with you privately, let you vent, consider low offers etc, without giving away your position to the buyer. You never even have to meet the buyer if you don't want to. By having a representative, you have a much better 'poker face' for the negotiations - which can lead to a much better price and terms.

Time demands - Can you honestly say you are available to show your home any time? Do you have the inkling to hang around letting strangers into your home for hours at a time when doing an open house? Do you have spare hours to put together marketing materials and advertisements? These days, the answers to most of these questions is no. We are a busy culture. The process of selling is stressful enough as it is without having to cut into your routine to be at the beck and call of potential buyers.

The fact of the matter is, it'll be less stressful, less dangerous, and it's likely you will actually make more money (even after the commission) if you work with a Realtor(R).

If you have any questions, please let me know. All the best - N

Snowed in on Salt Spring

Hello Everyone,

Just a quick entry today.

Well, it's completely official - it's winter on Salt Spring. We had 10 inches of snow fall at our house last night (my parents, part way up a mountain, had 18!) and it's still falling heavily. Most stores in Ganges closed a little early yesterday to ensure their employees got home safe and sound - and it's a good thing too, we were having a tough time getting around in our 4 x 4.

The weatherman says it'll start raining later today and wash most of it away, but it's hard to believe right now, seeing the snow coming down.

Something I've been enjoying for the past hour is the multitude of phone calls we've been receiving and making. Everyone in the community seems to be checking in on relatives, friends and neighbors - making sure everyone has supplies and offering 4 wheel drive vehicle help to those who don't have them.

I know I keep harping on the subject, but it is just so nice to live in a small community again.

Drive safe - N

Winter on Salt Spring

Hi everyone,

Well, it snowed unexpectedly here last night, and was just beautiful. Looks like it'll mostly melt away with the sun today, but it sure feels like it's marked the beginning of winter.

Winter has often been spoken of negatively on the island - things slow down and there's not all that much to do. I felt this way when I lived here previously, but can't agree with it now.

The community offers all kinds of activities during the winter months. There's the movie theatre, art shows and our incredibly active theatre community's productions. There are indoor fitness centers, writing workshops at the library, art, yoga and wellness workshops all over the place. There are great restaurants - and in the winter you can get a usually get a table right away. At home we rent videos or play games as we always have, spend time cooking, reading and working on renovations or creative endeavors. We have people over for dinner parties, or venture out for appetizers and drinks with friends. I try to figure out what I'm missing from the city, and with the exception of our friends who still live there, some of the shopping centres and individual stores, I can't find anything.

And there is so much the island offers that Vancouver doesn't. For instance, I have been astonished at how much sunshine we get over here, even in the cold months. While it's brisk outside to be sure, we've still been enjoying forest and beach walks every weekend - even just walking our puppy around the neighbourhood feels like a satisfying nature walk.

Besides all that, the community really shines here in the winter. People lend a hand to folks who's power goes out or who have car troubles, charity Christmas sales are abundant, as are craft fairs selling the wares of local artisans. Everyone has a cheerful 'let's get through winter together' attitude.

As you might gather, I'm a big fan of Salt Spring year round.

Stay warm - N

Salt Spring's unique and eco-friendly homes

Hello everyone,

I've recently moved my blog over to blogspot.com, in hopes that it will be easier to read, find and ask questions about.

If you have any suggestions for postings, please feel free to request them here.

Today I was discussing with new clients the true uniqueness of the homes on Salt Spring, and how so many of them are built or renovated with the environment in mind.

After working in the Vancouver market, where so many houses are nearly identical and made quickly with only profit in mind, the thought, creativity and care that I see in the homes on Salt Spring blows me away. While most are built in traditional styles, no two homes are alike, and each one has it's own charm.

Part of that charm comes from in the globally-minded care put into many of the homes. Most islanders are eco-centric, and now are building or renovating with materials and methods that are more energy efficient, less toxic and just generally more environmentally proactive. In fact, there are several homes on the market right now that are advertised as eco-friendly. Whether it's solar power, rain cisterns, non-toxic building and decorating materials, organic farms or even minimization of electromagnetic radiation you're looking for, Salt Spring likely has a home for you. Not to mention like minded neighbours.

If you'd like any more info on eco-friendly homes available on Salt Spring, let me know.

All the best - N

Cost of building a log cabin

In addition to the average building costs, I've recently done research for a client checking into the cost for purchasing log home kits. While the kits are relatively inexpensive, the average cost for a finished log home runs between $160 and $240 per square foot, depending on the company chosen, and finishing and materials desired. Quite a similar cost to building any other kind of home.

All and all, it remains quite a lot more affordable to purchase a finished home, as opposed to buying a bare lot and building on it - and the market really reflects that. Any home in the starting range (under $500k) that is well priced, and doesn't have any serious defect, often sells quickly on the island.

Once again, if you are looking in that range, be sure you are working with a realtor who is really on top of what's available.

Stay warm out there - N

The cost of building on Salt Spring Island

Two of my clients have recently asked me what the average cost of building on the island and developing a property was. I thought this information could be useful to a lot of people, so here it is:

Digging and installing a septic field: $15 -20k (depending on location etc)

Drilling a well: $5 - 10k (depending on depth needed, type of ground etc)

Running hydro lines: $2 - 3k (depending on distance from existing hydro lines)

Average building costs: $175 - $200 per sqft (depending on quality of construction desired)

All these figures are approximate, and applicable only to Salt Spring Island. Our costs can be higher here due to the extra shipping involved for materials etc. It's always a good idea to check with a contractor for a more detailed estimate if you are planning on building a home.

Hope this is useful,

Have fun - N

Changes to the entry level market

I've been keeping a keen eye on the entry level market on the island since we bought our home in May. I have to admit, I've been surprised to see how much it has changed even in the past few months.

There is very little on the market in the way of Single Family homes under $400k right now. There are a few options there, but not a whole lot to choose from. Currently the least expensive home on the market is priced at $329k - compared to the $269k in the running back in May. The market is continuing to rise, and the best advice I can give anyone hoping to purchase in the lower range is to get pre-approved right away, act quickly, and make sure you're working with a Realtor who can jump on good deals that pop up.

In other news - for those of you who didn't have the chance to attend the Islands Trust meeting on November 1st, I wanted to pass along that the most controversial proposals of the OCP review have now been taken off the table. The 20% down-zoning, expansion of Fulford Village, 30m waterfront setbacks and the 2000/3000sqft house size limits (and a few others) will no longer be considered. They are still considering changing the current 1/3 lot coverage building size, and I'll keep you updated on that as it progresses.

All the best - N

CRD 'Winterizing' Advice

The CRD has released a 'Winterize Your Service' announcement regarding water services. Last winter the islands experienced snow, freezing conditions, downed trees, power outages and some temporary loss of water services.

North Pender's water system experienced the worst of the December storms. They suffered an extended power outage and freezing weather conditions which caused split water pipes and tanks inside homes (causing floods and water damage), broken external pipes, split outdoor hoses, and damaged irrigation systems.

They offer the following suggestions on how to prevent these troubles in your home, should we experience the same harsh winter we did last year.

1. Turn off all outside taps, disconnect and drain hoses.

2. Turn off and drain all irrigation lines, blow them out with air pressure.

3. If you are planning to be on vacation, ensure you enlist your neighbour or someone close to your residence to check on the proper function of your heating and your plumbing systems daily.

4. If you are a seasonal occupant, it is recommended that you isolate your water system where it comes into the house, turn off your water and drain it.

5. If your cottage or house has plumbing which is routed out of doors or through an unheated area, consider insulating the plumbing, draining that section of pipe or better still, have a plumber relocate it.

Hope this was helpful,

Have fun - N

New listing - Cutest Boutique on Salt Spring

I recently co-listed the business 'Energetic Attractions' and want to share some of the details. It's a great opportunity for anyone looking to start a small retail shop - the location is unbeatable; a corner shop directly across Gasoline Alley from the famous Saturday market. The seller is motivated, and the business shows good returns in it's current 'Mom and Pop' operation. For more details, check out my 'listings' page.

Let me know if you'd like any additional info on this one.

Take care- N

The OCP Review

Hey everyone - I've been doing a lot of reading these days; most notably I've waded my way through the reports for the OCP Review. For those of you unfamiliar with the subject, the OCP is Salt Spring's Official Community Plan, and the Islands Trust are currently examining the plan to see if it still meets our needs. They've had focus groups working for several months to come up with recommendations, and now those recommendations are up for discussion before anything is passed into bylaws.

And wow. There are some very interesting changes proposed. Among them are plans to limit the sizes of homes on the island, increase setbacks on oceanfront land, institute a tourism tax, make moves to ban backyard burning, and possibly make it so any building project of any kind (including a new driveway, garage etc) on the island would need an environmental assessment. There are also changes recommended that will hopefully increase the amount of lower income housing on the island.

I think there are many good points in the proposed changes, and I think there are many extreme proposals that will unnecessarily burden islanders. There are also some ideas that will likely backfire and create the opposite effect they are hoping for.

The meetings to discuss the matter are starting tomorrow afternoon at 1pm at ArtSpring, and there are several more meetings scheduled in different locations on the Island in the coming week. I would highly encourage every islander to attend one or more of these discussions, to support what you think is a great idea, and to let them know in what ways you do not agree with it. These issues are complicated, and need clarification in several ways, and all of us are having a hard time understanding exactly how these changes will effect us. So come on out to these meetings, and let's figure this out.

See you there! - N

The lowdown on septic fields

I've been working diligently away here getting requested copies of my 'Salt Spring Island Buyer's Guide' out, and have been receiving great feedback. One of the websites I mention in my guide has ended up being quite useful to a number of folks. That website is:

http://www.crd.bc.ca/wastewater/septic/savvy.htm

This web document gives a really good run-down of how septic systems work, and how to properly maintain and use them. I know it was exceptionally useful to me when I first moved to the island - after living in Vancouver for 10 years, and only owning a condo previously, septic systems were a strange and unusual contraption to try and figure out. There were a few things (unclogging a drain, for example) I had to learn to do a little differently in order to keep my septic field healthy. Thank goodness I read this document first.

Things are quieting down here on the Island these days - at least as far a tourism goes. Parking downtown is much easier now, and so is getting a table at a restaurant. It's actually a great time of year to visit Salt Spring - quieter, the Saturday market is still going on for a little longer, it's still relatively warm, and it's a perfect for curling up in the evening with a glass of wine and watching the rain.

Have fun - N

Investment potential on Salt Spring

It is officially fall here on the island. We're still getting warm afternoons (high of 21 yesterday), but that autumn is creeping in at the edges a bit. I've always found the seasons' change is more evident on Salt Spring than it is in the city. You see the leaves changing in your yard, you feel the nip in the air when you walk through the shade, Halloween and Thanksgiving are looming in the near future. There's even just that cold smell of dewy blackberry bushes and falling leaves that is so fresh and comforting. Makes you feel like there's bound to be a pumpkin pie waiting at home. Ahh - I love it here.

Real estate is bouncing on the island - autumn and spring are traditionally the busiest times. There are lots of options on the market for buyers, and there are lots of buyers for the sellers, and I'm noticing well-priced property is moving relatively quickly.

Something that I'm becoming acutely aware of, is that the investment potential on Salt Spring is very high. While researching market statistics for my Salt Spring Island Buyer's Guide, I realized the average selling price for a single family home on Salt Spring has increased by 83% in the past five years. 83%! So if you purchased a home in 2002 for $400k, it could now, very possibly, be worth over $730k. What an incredible profit. And, while no one can predict the future, it sure doesn't look like there's too much hope of it slowing down.

But, fear not Buyers. There are still numerous affordable homes on the island. And for those of you not so bound by affordability, there are some real gems out there for sale right now. I'm always amazed at the craftsmanship, uniqueness and beauty of most of Salt Spring's homes. If you're curious, of course let me know and I'll get you set up for a free, easy listing update service.

Anyhow - I'm off to finish up some work, then spend the rest of the evening starting on my Christmas knitting. It just feels like the right autumn thing to do.

All the best - N

Island living, for want of nothing

Well, I ventured back to the big city (Vancouver) this weekend, and was so happy to get back to my quiet little island last night. It's funny how fast you get use to the peacefulness of the country - I have trouble sleeping in the city now, which is something I used to make fun of my parents for.

This weekend coming up is a major one on Salt Spring - it's our annual Fall Fair. It's always sort of a busy weekend, but for us it's going to be crazy since dear friends of ours are getting married here on Saturday. Neither of them have ever lived on Salt Spring, but they both feel drawn to it, and thought it was a special place to be wed. And wow, they're not alone. We know two more couples who are getting married here in the next year - and those are just amongst our closest friends.

On another note, something that always made me a bit nervous about living on a small island was the possible lack of some amenities. Today, for instance, my printer stopped working because I needed to replace the imaging drum. First of all, I don't even know what that is, but I was able to find it online, and it'll be delivered to my office tomorrow morning by courier. My fears have been abated - technology has enabled us to live on a tiny island for want of nothing!

Have fun - N

The cost of living on Salt Spring Island

It's taken me a bit longer than I thought to get to this next entry. Been too busy unpacking, painting and getting the new marketing on track.

One of the things I've been working on is my 'Salt Spring Island Buyer's Guide', which I have finally almost finished. It's about 34 pages, and contains loads of helpful information about Salt Spring Island, and the real estate market here. Some of the stuff I've included is a pull-out map, Salt Spring Island real estate market statistics, island history, amenities, and a run down of the buying process in BC. I'm offering them up for free to anyone who thinks it might be useful to them. If you're interested in receiving one, just contact me today and I'll be happy to send one to you, again, free of charge or commitment. The first ones should be printed next week.

I promised to give a run down of the cost differences I have found between Salt Spring and Vancouver. Now, granted I am coming from one of the most expensive cities in North America, but I am still rather surprised at how much less expensive it seems to live over here, when island's are traditionally more affluent areas.

On Salt Spring, houses are much cheaper to buy (this alone makes the island more affordable that Vancouver), but more expensive to build (due to the added transport needed for supplies, and labour shortages from time to time). Gas is more expensive, but car insurance is much cheaper (due to the lowered chance of accidents) and parking is free almost everywhere. Most groceries are the roughly the same price as anywhere, although specialty foods are more pricey, mostly due to lack of demand.

All and all, we're finding the bottom line for living expenses to be lower than what we dealt with in Vancouver. Which is sure a relief for two people who thought paradise would cost an arm and a leg.

All the best - N

New to the Island, again

My husband and I moved into our new Salt Spring home just a week and a half ago, and we are completely adoring island life. Everyone is so cheerful, and it seems everywhere we go, whether the supermarket or a paint store, we're getting just amazing service. Yesterday we bought a large quantity of paint and painting supplies, and the salesman started us an account (not even asking for ID), saying he'd bill us at the end of the month. We walked away with several hundred dollars of product, leaving nothing but our phone number! The level of community and trust is just astounding me after ten years in Vancouver.

Another surprise for us was how many services there are available here. I knew the island had grown up quite a bit over the time I was away, but I had no idea how extensive the amenities had become. My father once went an entire year without ever leaving the island - it was a talked about feat then, but I think that would be quite easy to achieve now.

The Salt Spring real estate market has surprised me too. Despite the increase in property values over the last ten years, there are still a number of affordable homes here. Granted, the homes are all incredibly affordable compared to Vancouver prices, but there are a reasonable selection of starter homes, town homes and inexpensive building lots available. If you're interested in taking a look, be sure to go to my contact page and I can set you up with listing updates.

My next entry is going to be taking a look at the actual differences in the costs of living here as compared to Vancouver. Some things are much cheaper here (or free, in the case of parking), and some things are quite a bit more pricey. I'll take a good look at it in the next few days.

Until then, have fun and enjoy the sunshine. - N