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July home sale activity increases in Greater Vancouver

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There are many factors that influence a buyer’s decision to buy a particular home. It is not feasible for sellers to meet all the requirements of prospective buyers but, there are some common things that are considered basic requirements and are expected. If you are unsure of how to steal a buyer’s heart or what investments can help you make a quick sale, compiled here are some frequently asked questions (FAQs) about home selling. Answers to these can help solve some of your dilemmas.

1. What key home improvements influence a home buyer’s decision?

Does the roof need replaced? Is the plumbing working? Do the walls need repainted? These are just some of the questions you need to ask yourself. There are so many repair options to consider, but the answer depends on individual preference. Most home buyers want a house that doesn’t need tons of repair work.

The first two things to consider are the yard and exterior, including the entry. These two places are seen first and are the most important because they are a potential buyer’s first impression. Keeping the yard mowed, trimming the hedges, touching up paint, and replacing broken doors are important. In most cases the state of the roof is not considered by the buyer, unless the inspector informs them of problems. It is then possible to negotiate getting the repair done or offer an allowance for it. Keep in mind that hanging or missing shingles, overgrown hedges, and chipped paint lead a buyer to feel that the home has been neglected. You don’t want that. After all, you want them to be willing to come into the house.

Once a potential buyer is inside, they see halls and rooms. Wall coloring can sometimes turn people off. A basic white or neutral color is preferred by most buyers. A renovated bathroom can also give a positive impression, if it is done well. Make sure that there are no plumbing issues, loud noises coming from the furnace, broken appliances, damaged walls, etc. Most of these items are easy to have fixed and can make all the difference.

It has been seen that most sellers like to opt for repairs when they have money and time to spend, or they leave it to the buyers. However, if they do make repairs it becomes advantageous for them because in buyer’s perspective, the home that is easy to move-in is more appealing than the one needing lot of repairs.

2. Is selling a home with furniture a good idea for vendors and should a home be shown furnished?

The answer to this question depends on the preference of the seller. However, it does help to include furniture when the floor plan is unusual. For standard floor plan homes it is fine not to provide furniture. Some sellers may not want to move their furniture. If this is the case, they can always offer the buyer’s first choice on what they are interested in. Final negotiations can then be written into a purchase contract.

In most cases, a property with furniture allows buyers to visualize how their own furniture will look in the space. Most new housing developments come with furnished models to help buyers visualize and know what floor plan works for them. Clutter may divert a buyer’s attention from the actual spaces in the home, so it is better to only use essential furniture and offset that with elegant decorations. Besides, too much furniture can make a house appear small.

3. Does any new construction near my property affect my property value?

When it is about new construction in the neighborhood, it can attract a prospective buyer or affect your property value. Most buyers prefer new homes as this gives them the opportunity to customize. For instance, they can select paint color and settings according to their liking. However, if your property is of same size and square footage, pricing it slightly less than the new construction can bring the ball to your side of the court.

4. Does the property’s location affect its value?

Yes, property location can affect the value of a home. A home located next to a big factory, a garbage disposal site, a commuter railway, or a busy highway may not sell for as much as one located on a quiet, slightly travelled street.  When a buyer is looking for a home, they take several items into account.  These items can be beyond a sellers control and can cause them to have to reduce the price of a property. Below are a few items:

• Crime rate in the neighborhood
• Closeness to shopping outlets
• School ratings
• Noise levels
• Traffic on the street
• Parking availability
• Views
• Noise levels
• Neighboring houses and how they are kept
  
  Courtesy of http://www.propertycluster.com/

What's not on the property title may be important

In West Vancouver in 2007, on the advice of her REALTOR®, a property seller checked to see if there was an underground fuel storage tank on her property.

There was and the seller had the tank removed and the contaminated soil remediated. The bill was $202,963.07.

The seller had bought the property in 2001 without using the services of a REALTOR® and had been told by the previous owner that the tank had been removed or decommissioned.

The seller sued the former property owned and won because the owner hadn’t disclosed the severity of the problem.(Note: a REALTOR® was not involved in the 2001 sale).

What do these examples have in common?

• In Richmond, an illegal drug lab in a rental home on a busy street resulted in a neighbourhood evacuation.
• In Marpole, the owners of a non-profit theatre learned from a neighbouring business that the building they own is one of a dozen commercial sites sitting on a midden, the location of Aboriginal artifacts.

None are registered on the property title.

This means that current and future owners may not know about issues associated with their property that could affect its safety, ease of sale and ultimate value.

What is registered on the property title?

The legal description of a property, including:
• the parcel identification (PID);
• taxation authority;
• registered owner and their address;
• the title number;
• the previous title number;
• legal notations against the property (may include heritage);
• charges, liens and interests (under-surface rights, rights of ways, covenants, judgments);
• whether a duplicate title has been ordered and by whom, and
• transfers and pending applications.

What is not registered on title?

• Archaeological sites.
• Former grow ops and illegal drug labs.
• Heritage designations (not always on title).
• Highway entitlements.
• Stigmatized property.
• Streamside issues – if there are fish-bearing ditches or creeks on the property.
• Underground fuel storage tanks.

How can you discover the facts about a property?

1. Ask the owner.
2. Visit the local government (municipal) website where you will find a range of information, for example: 
        • Richmond provides a road map of designated heritage buildings and homes, and includes photos. (Note: there is no 
          available universal public registry of homes previously used as grow ops and illegal drug labs.)
        • The City of Vancouver confirms if a property has been used as a grow op or illegal drug lab to anyone phoning 
          604.871.6231. The City does not provide the owner’s name in keeping with privacy legislation.
        • West Vancouver provides a list of properties known to have underground storage tanks.  Visit: 
          www.westvancouver.ca and search Fuel Storage Tank Program. Scroll to More Information and see Fuel/ Oil Tank 
          Records Search.

If you don’t find what you need online, phone your local government or go in person. Depending on the municipality, there may be comprehensive data.

• There is a BC Heritage Sites Inventory. Information about its properties comes from local governments, so start there
  first.
• Check the BC Archaeological Site Inventory at 
  www.for.gov.bc.ca/archaeology/accessing_archaeological_data/index.htm.You can also phone: 250 953-3338.
• Search the BC Government’s Contaminated Sites Registry which lists some contaminated sites. It is available through 
  www.bconline.gov.bc.ca.(Go to Products). There is a charge to access the database.

Fuel tanks facts

Throughout the Lower Mainland aging fuel storage tanks in yards are potentially corroding and leaching toxic materials into the soil.

In worst case scenarios, the contamination extends to neighbouring properties and the groundwater system.

These tanks, used until the 1960s when natural gas became readily available, were never required to be registered.

In the 50 years since, many tanks have been decommissioned or removed, while others have been long forgotten.

This makes it difficult to determine how many still exist, although estimates indicate there are still tens of thousands remaining underground throughout the Lower Mainland.

In more remote areas such as Pemberton and the Gulf Islands, tanks may still be in use.

Oil tanks are regulated by the BC Fire Code, Part 4, which covers tank installation, maintenance, repair, removal or abandonment.

What happens if your property has an old tank?

Each municipality has different requirements and provisions for enforcing the removal or abandonment of underground or aboveground storage tanks.

Contact your local fire department. They will advise you on how to properly deal with your tank.

Tanks can contaminate soil and groundwater, may pose a fire and explosion hazard, and may impact human health.

If you plan on selling your property, you must tell your REALTOR® about the tank and also disclose the tank on the Property Disclosure Statement.

If you are buying a property, your REALTOR® will advise you to have the property inspected and to seek an expert opinion on the matter, especially if the underground or aboveground storage tank is thought to be leaking. If you have questions about fuel storage tanks, contact your municipality.

Courtesy of http://www.rebgv.org/ 

May Stats - Richmond