About Grey County, ON

I know that statistics and charts can be a bit mind numbing. On the other hand, they are the story that we need to know telling us where we've been and where we might be going.

I like to watch certain stats in particular: the number of new listings, the number of sales, the number of price reductions but most of all, the sales to listing ratio. That is perhaps one of the better indicators of what is going on in the market.

Let me explain this little ratio thing. It's calculated by dividing the number of sales by the number of listings. It gives us a snapshot of what percentage of the listings on the market are selling. We look at them both on a monthly (or weekly) basis and also year-to-date. Although there are divergent opinions, generally speaking, a sales-to-listing ratio of over 50% suggests that it is a SELLERS market. Under 40% is a BUYERS market and in between, is considered to be a BALANCED market.

Right now, the sales to listing ratio is under 30% as one may expect. That means less than 30% of properties on the market are selling. It's clearly a BUYERS market right now.

To simplify this ratio study, I thought it might be a good time to have a pretty chart so you don't have to read and analyze the stats:

Watch the black trend lines. When they start moving toward each other, that means the market is showing signs of improvement. Of course, if they move apart, its not such a good thing if you are trying to sell.

So for all you analytical types out there, I feel your need! Hope this fills some brain space.

After you have established the right asking price, have prepared and staged your luxury home, it's time to begin marketing the home for sale.

Remember the question most sellers ask is "Will you advertise my home in the Globe & Mail?"  Let's think about that.  What we want to find is a suitable buyer.  Less than 5% of buyers can afford an upper-tier home and even fewer (less than 1%) of buyers in South Georgian Bay buy a property valued at over 1 million dollars.  Where are those buyers and how do we find them?

I can hardly imagine someone sitting down to read ads of out-of-town properties for sale unless they have some interest in the topic.  Secondly, if they do, I doubt they suddenly discover South Georgian Bay for the first time and I doubt even more that any ad, usually 30 words or less, will cause them to make a new life plan.  No, in reality, the buyer likely already has an attachment to the area be it in past vacations, friends who have invested or moved here or maybe they already own property in the area.

This buyer is affluent and educated.  If they are in the market for a luxury home, the probability is extremely high that they will search on the internet for available listings to see what's out there.  They will visit the area and will likely solicit the recommendations of family or friends to find a good area.  They'll drive around, right down some addresses and head back online for details.  They'll eventually hire a local REALTOR® if they are serious.  In other words, they are not looking for a two line ad in a paper that cost some agent hundreds of dollars to run with no results.  Trust me on this, I know.  I know, oh how I know!  They are using the internet, signage and salespeople as well as family and friends.

So, a good start for a new listing in this category is for the listing agent to host an Agent Open House inviting other REALTORS® to view and learn about the home.  If you can't sell the agents, chances are you'll have a tough time selling anyone else.

Secondly, make sure the house is easy to show and that the owners are absent during the showing.  Most clients ask that the listing agent be present in the background and therefore available to answer specific questions that might arise.  Make sure the keys work, the alarm system is addressed with the agent, that the house is in top notch showing condition and that pets are removed from the home.

Now that the house has been priced, prepared, staged, shown to other agents and is easy and ready to show, the real marketing begins. Naturally, that involves signage, placing the listing on the MLS® Multiple Listing Service and preparing feature sheets. But there's more.  Much more.

Coming Soon:  Marketing A Luxury Home in Collingwood ~ Blue Mountain;  Part 3

Related Posts:

Selling a Luxury Home in Collingwood - Blue Mountain

Marketing a Luxury Home In Collingwood ~ Blue Mountain; Part 1

Many people who own secondary properties in vacation country like to rent them out from time to time to cover overhead costs associated with owning such a property.  That may get a little more difficult soon.

The Town of the Blue Mountains has been discussing the issue of short term rentals for some time now and earlier this year, they enacted an interim control by-law to allow some time for the study of this matter.

This week, a staff report came out with recommendations governing the licensing of short term accommodations and, from what I read, it will be VERY tricky to get approvals in most residential zones if this is approved.  I'm not saying that I disagree with the direction.  If you own a home in a residential area, you want your investment to be protected from commercial uses that may impact your enjoyment.  That's certainly a fair thing to expect.

If you are considering the purchase of a recreational property with the intention of renting it out, you need to read the staff report.  and the Interim Control By-Law.  Longer term rentals shouldn't be a problem so owners may need to rethink their ownership investment strategies.

Just a few years ago, it was pretty rare to see a home sold for over a million dollars in South Georgian Bay. Today, there are 1-2 luxury home sales each month and we're starting to see homes topping two and three million dollars. One property in the area is listed for far more.

Luxury homes often take more than a year to sell even in a strong market. Currently in our area, there are 34 residential properties for sale ranging in price from $1,000,000 to $9,985,000. In the last six months, there have been 8 sales so, at the current rate, there is better than a two year supply of "inventory" of high-end homes not including the vast number of custom and new homes available as well.

As a REALTOR®, taking a listing for a high-end homes requires careful thought. Yes, commissions on luxury homes are substantial but so are the costs and demands plus, money invested is never recouped if the house does NOT sell during the listing period. Imagine listing 5 homes, spending thousands on marketing each one and none sell.

I recently listed a luxury home that is one of the finest crafted homes in the area. Since this type of offering is growing in our marketplace, I think it could be useful to look at some of the considerations involved in marketing upper-tier properties.

The first step is to work with the Sellers in establishing an asking price. Comparing size, number of bedrooms and such is not nearly enough since not all homes are created equal. I've been in homes over a million dollars where the interior finishes were no better than those found in a $200,000 subdivision home. Seriously. Pricing means knowing the intricacies of comparable properties in regard to neighbourhood, design, workmanship and quality of materials in the home. It's critical to know the competition, to know the neighbourhoods and to understand the potential buyer profile.

Coming Soon: Marketing A Luxury Home

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!

My first real estate advisor was my Dad. He used to say that when you buy a home, make sure it's one that "first your foes lived in, then your friends and then you." The idea was that a new house has deficiencies that can cause frustrations while subsequent owners add to and perfect a home.

I admit these lessons coloured my viewpoint. While sometimes a new home is suitable for certain buyers, I generally think a resale home offers less risk and more benefit in most cases.

A few years ago, I had a client who insisted on buying one of the first 3 homes to be built in a brand new subdivision. I cautioned her that there was a risk in doing so. What if the developer sold off the land to someone else who had an entirely different vision for her neighbourhood? What if their work crews were terrible? Did they have a TARION track record? Well sure enough, she bought the house. The builder went belly up, the land is for sale and the deficiencies have never been corrected.

More recently, I've been working with some super folks looking to buy a luxury condo in the area for rest and relaxation from their busy lives. They became intrigued with a new development and picked what they thought would be a perfect site. It overlooks a quiet meadow with a fabulous view of Blue Mountain where the sunsets would be magnificent. It's quiet and peaceful but they'd have to pay a significant "lot premium" to acquire that end unit spot.

What the builder's salesperson didn't tell them is that a new road is planned to run right beside the unit and then, the meadow will be a construction zone for years to come as hundreds of homes are planned for that land. Their view of the mountain will likely be impacted by the new condo's to be built right behind them. Not only that but the builder is a year behind schedule and existing owners are screaming foul over unaddressed deficiencies. After I heard about their plan to buy, I got the plans for the area which I was able to show them. That purchase is now on hold.

When it comes to buying new, buyer beware. Model homes often have thousands and thousands of dollars of enticing upgrades and slick presentations that make the fantasy exceedingly powerful. In many cases, you as a buyer are on your own and unrepresented in negotiations. Take your time, think, ask and seek outside advice before signing on the dotted line.

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!