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Email: jpappy@uniserve.com


Guide to Selling your Luxury Home
Selling a luxury home requires a level of expertise that not every agent can offer. It is extremely important to ensure property steps are taken to have the home sold in a timely manner at a fair, market value price. 
When selling your luxury home, be sure to take the following tips into consideration: 

Is the price right?

It is extremely important that a luxury home is priced competitively from the start, to attract buyers from the first marketing campaign. 

An in-depth comparative market analysis must be completed on the home in order to determine the price. This includes an agent spending several hours analyzing data, touring comparable homes, and speaking with other brokers in the luxury market. 

While there may be a similar home in a different neighborhood, it may have fewer amenities, or be located near the beach, these aspects will be taken into consideration when pricing your home competitively. 

Effective Marketing is Vital

Be sure that your agent has effective marketing skills and is using the internet to best market your home. An Agent must have a comprehensive market plan in place, you do not want a "post and pray" agent who simply posts it and then waits hoping it sells. 

Social media, MLS, their brokerage website, and personal website, in addition to print and mail marketing, are extremely effective in getting your home in front of the right buyers. 

An estimated 95% of buyers are searching for their next home on the internet, it's important to know how it will be marketed online and how frequently. 

Photographs, Videos, and Virtual Tours are a must! 

When selling a luxury home, a professionally created video or virtual tour can be the difference in whether or not the luxury home sells.  
While most local MLS’s have a limited number of photos that can be updated, they also allow videos to be uploaded. These videos give your potential buyers a feeling of a walk-through without leaving the comfort of their homes.

Time is Everything! 

Timing plays a huge part in marketing your home.

For example, listing a waterfront home during hurricane season will not be the best time to attract luxury buyers to the area. However, listing it during warm, hot months will appeal to buyers looking for a place to spend their summer months. 
Deciding if an open house is necessary
While selling a modest home, an open house is a must-have, however, when selling a luxury home, they often tend to bring in only lookers who want to see "how the rich and famous" live, rather than potential buyers. 

That said, broker open houses are a great way to market the property to agents who are searching for their luxury home buyers and this may be exactly what's needed to find the right purchaser. 

Lifestyle and Location

Luxury homes are often considered luxurious due to their location and lifestyle. 

It is extremely important to showcase the location and lifestyle offered in the home and area. Portraying these incorrectly could be the difference between an offer and a looker! 

Staging is key!

Staging a will assist in maximizing price, showcasing the home's attributes, and minimizing its time on the market. 
Declutter, depersonalize, and disengage from the home while marketing your home. Remove personal photographs, ensure closets and storage areas are organized, and that it's ready for a showing at all times. 
Be sure to showcase all amenities, such as; waterfront or yard, bbq area, swimming pool, indoor fitness facilities, formal dining rooms, and such by ensuring there the table is properly set with a fine place setting or welcoming beach chairs with cushions. 
Remember, potential buyers, want to envision themselves living in your home with their belongings. 

 Patience is a must

Selling a luxury home often takes longer than a modest home. 

There aren't as many buyers who can afford million-dollar homes entering the market on a daily basis, making the buying pool much smaller than that of a standard home.

However, if you have the right agent and have followed all the tips above, your luxury home should sell quickly! 

How long does it take to Save a Down Payment?

According to the latest affordability report by the National Bank of Canada, it can take up to 36 years to save for a down payment on a non-condo home in an expensive market.

Canadian hoping to buy a home on a median income need to save for approximately 104 months (9 years) for a non-condo home in an affordable market. Since 2000, the average has only been 49 months (4 years).

In Vancouver, one of the lease affordable markets, it takes a median household 431 months (36 years) to save for a down payment as of Q3 2021. This is a large increase from the previous quarter when the average was 410 months. And a staggering increase since 200 when it was approximately 147 months (12 years).

Surprisingly in Toronto, Canada’s least affordable city, it takes a household 330 months (28 years) to save a down payment as of Q3 2021. This is up from 318 in the previous quarter and astoundingly from 2000 where it took just 64 months (5 years).

Here in Victoria, the estimated time to save a down payment is 350 months (29 years), whereas in 2000 it was just 68 months (6 years).

Financial experts are now advising parents on how they save money to assist their children with a down payment for their first home.

JP Real Estate understands the difficulties and frustrations many buyers are facing in the current market and we want to help. Give us a call to talk about how we can assist you with buying a home. 


Should you sell your home this winter?

Given the current strength of the real estate market, this winter is a great time to sell your home.

There is a commonly held belief that waiting out the winter to sell in spring will bring higher prices for your home, however, with the lack of inventory, record-low mortgage rates, and the influx in buyers, this winter is the perfect time to sell your home.

Real Estate professionals predict the strong market to continue through spring of 2022, however, we are also seeing interest rates slowly increasing which means less purchasing power for buyers, in turn, decreasing the pool of potential buyers who are desperately seeking to get into the housing market.

While we do expect another brisk spring market, today’s sellers have a lot of flexibility as demand continues to outweigh supply.

If you’re planning to sell this coming spring, you may want to think about speeding up the process and selling this winter, if possible.

Give us a call to chat about how we can help you prepare your home for sale and offer you guidance through the selling process. 


Six things an honest banker should tell you about finances

The month of November is Financial Literacy Month and is dedicated to helping people be smarter about and with their money.

Financial literacy is among the top life skills. Money may not bring happiness, but misadventures with money are a leading cause of unhappiness.

Throughout the month, you'll likely see many big banks putting out videos, polls, interviews, and other information to associate their brands with empowering Canadians to make smarter financial decisions.

However, we need to keep in mind that the top priority of big banks is to raise profits and increase revenue.

You’ll likely see many banks offering budgeting tips that are actually meant to distract us from their true goal which is pushing debt on customers via credit lines and other borrowing products. Keep this in mind with homeownership as well, as banks are often more than happy to mortgage you to the full extent of your financial means. 

There are a few things that an extremely honest banker would tell you to keep an eye on throughout your financial decisions, as follows:

Savings Accounts

Billions of dollars are currently being saved in big bank savings accounts that pay just 0.05 to 0.5 percent interest rates.

Keeping your savings in these accounts is like renting your money for almost nothing for banks to then lend it out at rates of 3, 4, 5 percent, and more.

We suggest looking into alternative banks which can pay as much as 1.35 percent on savings, with deposit insurance, handy apps for your smartphone, and easy transfers to other institutions.

Paying out a Mortgage before Maturity

If you need to break a mortgage before it matures, you’ll find banks often charge staggeringly high penalties that exceed those of alternative lenders. Compare rates, compare breakage penalties.

Having a trusting mortgage broker on your side from the get-go will ensure you’re aware of any and all penalties and charges that may be applicable to you if you happen to sell your home before your mortgage matures.

Mortgage Affordability

Banks assess affordability by comparing your income to your housing costs and total debt.

They do not, however, include an assessment of other costs such as child daycare, savings, food, car insurance, and other costs associated with your daily life.

If you land on the right side of their requirements, it simply means that you are not considered a default risk, it in no way means that it’s affordable. Be sure to calculate all your expenses so you have a clear understanding of your financial situation. 

Question your ‘advisor

Assume the term ‘adviser’ means nothing in many big branches unless shown otherwise.

More often than not, the person you're talking to for financial advice at the bank has little to no financial planning background.

Always request an appointment with a certified financial planning (CFP) designation or a personal financial planner (PFP) to ensure you’re receiving the best advice from a qualified advisor. 

Home Equity Lines of Credit

These Lines of Credit are designed to keep you in debt.

A standard loan will require a payment each month that covers both interest and principal, however, a home equity line of credit often allows payment of interest only.

If making the minimal interest payments, you could easily carry this debit through your working years right into your retirement without paying anything but the interest. 

Market-linked GICs

Market-linked guaranteed investment certificates offer returns connected to stocks or stock indexes with no risk of losing money.

What you may not realize though is that they are engineered to produce profit for the bank mores than yourself.

While they may pay investors returns, they are more often than not less profitable than a regular GIC. 

If you have any questions about your finances, JP Real Estate would be more than happy to assist you. Not only are we a real estate company, but we are also long-term investors with a great knowledge of the financial markets across our country.  

MLS® property information is provided under copyright© by the Vancouver Island Real Estate Board and Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification.