Century 21 Northumberland Realty

Hi James,
 

First, thank you for taking the time to read the www.century21pei.com blog and for your comments.  I will post your comments and my reply to the site shortly but wanted to address your questions in a more informal manner.
 

You are correct in stating that your choice of agent if extremely important in the amount of advertising your property would receive. The nature of the real estate business is such that each agent is considered an independent business owner working on contract for the broker. Each has his/her own marketing techniques and strategies that supplement the brokerage marketing efforts. Moreover, each agent is responsible for the cost of these advertising campaigns.
 

As a vendor, you have every right to enquire as to what exactly your agent plans to do to promote your property…a sign is an effective tool but not the only one that should be employed in this day and age. I recommend that vendors determine these services prior to signing a listing agreement as part of the process of evaluating prospective agents. Should you already find yourself in a contract, it is not too late to have this discussion. Being able to verify the claims made by your agent is also an important part of this discussion.
 

Timing and advertising is a concept that is not well understood in most parts and I will take a minute here to elaborate. When you first list your property it takes time to propagate the listing throughout the advertising systems. It usually will take a couple of days for the admin staff to take the file and place the listings on MLS (multiple listing services). This is the first step; it promotes your property to all local agents, regardless of company affiliations, and places the listing on the www.mls.ca site. From there, most companies and individual agents have variations but of course the sign on your lawn gets placed pretty much as a standard practice.
 

Now I have to address the rest of the process in terms of our company only since each company and each agent do things a little differently. Once your listing is on MLS, Century21 Northumberland then places your listing in our own web dbase which is updated weekly. The dbase promotes your listing to all our agents’ site, regardless of which agent you selected (you can view a list of these sites beside the picture of the agent on http://www.century21pei.com/pei-realtors.htm. We currently operate 24 sites with a few more coming on board soon. It is the individual agent’s responsibility to invest in the promotion of their sites. The company, through my services endeavours to assist all agents in being up to date on web marketing strategies and costs to enhance the marketing power of these sites.
 

In addition to these 24 sites, we also support various syndicated sites to maximize exposure. Some of these require the agents to contribute out of pocket; others require only time and effort. Selection criteria’s for syndicated sites are based on how many sites they span to and the quality of exposure gained by being on those sites. Two of my favourite syndicated sites are http://nls.point2.com/index.asp &  http://www.therealestatebook.com/partners.aspx?refer=treb (note some of the sites that are included from these are US only and there would be no reference to PEI within these sites, however we still enjoy exposure on many prime sites through this effort). Another site I would like to mention is www.century21.ca which has undergone a major refit and is being aggressively promoted through the corporate wing of Century21. This in turn is helping our properties gather more exposure as well as assisting us in promoting our own sites.
 

Why all this effort on web sites? It is because of statistics! Industry researchers have been indicating for a few years now that 80% of all real estate searches are now starting online. People view properties from the comfort of their homes, make a short list (sometimes) and then contact an agent to assist with the viewing/offer stages. This manner of property research requires your agent to adjust his/her delivery approach. Pictures, pictures, pictures is as important to a real estate agent today as location, location, location. Have you spent any time online looking at real estate? If you have I can almost guarantee that your selection method followed this format…you entered search parameters to define the basic type of property you were looking for, then from the list provided you viewed the thumbnails of the properties and if one caught your eye you did a little bit of reading to see if it might fit…should the picture + short description past the test, you delved in a little further. The moral of the story is that thumbnail picture have to catch your eye, and then the text entices you to find out more. I can place the most beautiful property for sale at the best possible asking price in any list of property and if there are no pictures! Most if not all searchers will just skim by without a second glance. Web is a visual tool and as such pictures are the attention getters…make sure the visual elements that will represent your properties are strong! I advise sellers to stage their homes prior to the photo shoot just like they would for a potential purchaser coming in to view. Land of course is a little different but nonetheless getting the best possible lead shot is important, just like a catchy headline on a blog!
 

This is a summary of our web initiatives but it is not the entire picture. Hopefully it will render some understanding of our individual and cumulative efforts with respect to web marketing.
 

Are traditional marketing methods obsolete? We don’t think so. As such Century21 Northumberland continues to place ads in the local newspaper every week to promote its listings (we focus on open houses, new listings, and then rotate listings into remain spots). Other methodologies include the use of the local TV network, the monthly Real Estate Book publication, individual property brochures (usually applicable to sub divisions), open houses, and of course signage. These venues are agent based in most parts and not everyone participates in every type.
 

Each agent supplements these with there own strategies. The basic premises is simple, the more individuals that are aware of the property, the better our opportunities to sell it. As you probably already know, agents are not salaried employees and live from commission sales. No they don’t earn the entire commission either, that is split between listing agent, selling agents and their respective companies. However the listing agent is the only one that will incur advertising costs. As such it is also imperative to the agent’s success that the listing price be realistic for both you and them. If your property is worth $100,000 based on comparables currently on the market, and more importantly based on the selling price of recent similar properties, the listing agent should make this fact very clear to you. Asking $250,000 for such a property will leave you holding on to it for quite some time and the agent paying promotional costs that they will never recover…a few of those and you’re quickly out of business in our world. I bring this point up because; first it is one of the most important aspects in selling a property; and secondly because marketing your property involves more then getting it exposure, it requires that it be priced in accordance with what our market will support and that information is also what you are paying commission for (as well as a bevy of other subtle services that will be required to ensure the successful conclusion). When I was an agent, my goal was to sell every listing I took on within 24 hours (not realistic in our market however). The reason, listings cost me money for every day I hang on to them. So with that philosophy it is not only in your best interest, but in your agents’ best interest to make the sell happen as quickly as possible. The average time it takes to sell a listing on the Island varies from location to location and from property type but it is not 24 hours let me assure you (yes it does happen but not often enough for our taste). This brings me to another subtle point for vendors to consider; the length of the contract. As an agent, getting a listing for 3 months is the minimum time frame that is acceptable. For residential listings in Summerside and Charlottetown, that usually will do. But recreational properties and homes outside the two ‘metropolitan’ areas can take a lot longer to sell. From an agent’s point of view, you have to consider how much of an opportunity you will have to sell the property based on the length of the contract. If you spend many dollars promoting a property and loose the listing all you’ll have to show for your efforts are expenses, but your expenses might prove successful to the agent who takes over the listing as they sell it within the month, look like heroes and take the commission all off the work you’ve done to promote the listing…it happens far to often. The point I’m making is both your success and your agents success are tied together and the more confident your agent is in their ability to sell a listing based on asking price and length of contract will have an impact on marketing efforts…no you won’t find this information in any contract or presentation but it is a reality. My recommendation is simple, select an agent you want to work with and do just that…work together in terms of strategies, efforts and mutual support. Your agent should view you in terms of not just one sale but in terms of forming a life long relationship were when you need real estate services you will ring their number…it is a long term partnership based on honest assessments, honest efforts and taking into account each others interest that will make the process more enjoyable and more successful.
 

James, I hope this long winded reply has addressed your questions, please don’t hesitate to send me another email if I have failed to do so in any manner.
 

Rick Dufresne
Marketing and Web Services
Century21 Northumberland Realty (1987) Ltd
Toll Free 1-888-701-0021
www.century21pei.com

Tags: Prince Edward Island Canada // Add Comment »

Can a non resident acquire property on PEI?  Yes, of course! What are the rules & how is the process different?
 

Actually there really is not a huge difference when it comes to acquiring property on the Island whether you are an Islander or not!  Most differences pertain to the acquisition of Ocean or River frontage.  Individuals wanting to buy more the 165ft of frontage on a body of water or a piece of land greater then 5 acres must apply to the Island Regulatory Commission for approval.  Should there be multiple names on a deed (let’s say husband and wife) then the limits are doubled and the entitlement is 330 ft or 10 acres. Most questions you may have can be quickly answered by visiting the Governments Governing (IRAC) web site:
 

http://www.irac.pe.ca
 

 

The Prince Edward Island Lands Protection Act
Including Information on Non-Resident & Corporate Applications for Land Acquisition in Prince Edward Island.
 

Why is there a Lands Protection Act?
 

The issues involving land ownership and land use in Prince Edward Island began in the early history of the province. The Island was initially divided into sixty-seven 20,000-acre lots or townships. These lots were allocated in advance of settlement to a relatively small elite group of absentee proprietors. Over time, the land was purchased from the absentee landlords and returned to local ownership.
 

Issues associated with absentee landlords resurfaced again in the 1960’s, as non-residents began investing in local real estate throughout the province. As a result, substantial amounts of land in the coastal areas fell out of the control of local residents. In 1972, Government introduced amendments to the Real Property Act to restrict the purchase of land by non-residents.
 

In 1981, an application by a non-resident corporation to acquire 6,000 acres prompted public concern over the perceived impacts of land ownership distribution and its implications for the future. Some viewed this as giving pre-eminent control of the province’s agricultural industry to one company. This led to the introduction of Bill 37 - the Lands Protection Act (the Act) in 1982.
 

What is an Aggregate Land Holding?
 

A person’s aggregate land holding consists of all land holdings of that person and of his/her minor children; and the relevant amount of land holdings of any corporation in which he/she, they or any of them, hold more than 5% of the issued voting shares.
 

A corporation’s aggregate land holding consists of all land holdings of that corporation; and all land holdings of any person who holds more than 5% of the issued voting shares in that corporation and of his/her minor children; and the relevant amount of the land holdings of any other corporation in which the corporation in #1 or any person in #2 holds more than 5% of the issued voting shares.
 

What is the Commission’s Role?
 

The Commission is responsible for the general administration of the Act. It reviews and obtains pertinent information and makes recommendations to Government on applications for land purchases governed by the Act.
 

What is Government’s (Lieutenant Governor in Council’s) role?
 

Government makes the final decision on applications for land purchases governed by the Act based on the recommendations of the Commission.
 

What Factors Does the Commission Consider?
 

Among the factors considered by the Commission are:
 

• aggregate land holding
  
• coastal access
  
• shareholder structure
  
• potential economic impact
  
• residency status
  
• local significance
  
• number of parcels/acreage
  
• general land use in area
  
• shore frontage
  
• traditional land use in area
  
• concentration of ownership
  
• speculative intent/nature
  
• intended use
  
• impact on land values
  
• capability for agriculture
  
• land fragmentation
  
• capability for forestry
  
• local advertisement
  
• ecological value
  
• need for identification
  
• land value
  
• other parcels owned by applicant
  

 

Who Must Make an Application?
 

A non-resident person or corporation, or a resident corporation must make application if the person or corporation will have an aggregate land holding in excess of 5 acres, or having a shore frontage in excess of 165 feet.
 

A non-resident person who acquires a land holding by gift, devise or inheritance from a spouse, sibling or direct descendent or ancestor is exempt from making application.
 

What Could Happen to My Application?
 

Government may decide to approve, approve with identification for non-development use, approve with special conditions or deny an application for a land purchase.
 

Under What Conditions Can an Application be Approved?
Government may approve a land purchase with conditions, including:
 

That land not be subdivided except for:
 

• agricultural, forestry or fisheries production;
  
• a conservation use pursuant to a designation as a natural area, archaeological site or heritage place;
  
• a parks use by Federal, provincial or municipal government;
  
• a residential use by the owner.
  

 

That land be identified for non-development use under the land identification program.
 

That land be consolidated with adjoining parcel(s) of land.
 

That the applicant becomes a resident within a specified time period.
 

That a buffer be provided and maintained.
That land be managed in a specified manner.
 

For What Reasons Have Applications Been Denied?
 

Applications have been denied for the following reasons:
 

Aggregate land holdings were beyond the limits set out in the Act;
 

Land holdings of a person or corporation in a particular area of the province were at a level beyond what was believed to be in the public interest;
 

Land flipping and speculation appeared to motivate the transaction;
 

The purchase would have resulted in the control of the majority of the shore frontage of a local pond being held by a non-resident person;
 

Government wanted to provide opportunity to local residents/farmers to purchase the land;
 

A significant proportion of land or shore frontage in a local area was already controlled by non-residents; and
 

An intention to circumvent the land identification program appeared to motivate the transaction.
 

What is the Maximum Amount of Land that a Person or Corporation Can Hold in Prince Edward Island?
 

A person or corporation can hold an aggregate land holding of no more than 1,000 acres for a person; and 3,000 acres for a corporation
 

How Long Does it Take to Process an Application?
 

Generally 3-4 weeks is required from the date an application is filed to the date a decision is rendered. However, depending on the complexity of the application, additional time may be required.
 

The Order confirming Government’s decision is usually issued within one week to 10 days of the date of the decision and should be registered with the deed.
 

Please see the Application Review Process at the end of this publication.
 

What is Required in Making an Application?
 

An application for a land purchase must include the following:
 

• completed application form;
  

 

• an orthophoto or GeoLinc map of the parcel(s) outlined in red;
  

 

• a legal description of the subject parcel;
  

 

• if the applicant is a non-resident person or corporation, details of recent advertising of the land on the local real estate market (for more information click here); and
  
• a fee of $500 or 1% of the agreed purchase price, whichever is greater [for all applications by non-resident corporations or corporations where the majority of voting shares are owned by non-resident(s), and most non-residents].
  

 

The completed application is submitted to the Island Regulatory and Appeals Commission.
 

Is the Application Fee Refundable?
 

When an application is denied or is approved but no part of the purchase has been or will be completed, the Commission may refund up to 50% of the application fee upon application. An application must be made to the Commission within six months of the date of the decision and must include a statutory declaration stating the grounds for the refund; and the original Order that granted or denied permission to acquire the land.
 

Does the Commission Monitor My Land Holdings?
 

A person having an aggregate land holding in excess of 750 acres or a corporation having an aggregate land holding in excess of 2,250 acres is required to file an annual land holding disclosure statement with the Commission.
 

How is the Act Enforced?
 

Pursuant to subsection 15(1) of the Act, the Commission may request information and conduct an investigation for the purpose of determining whether a person or corporation has contravened the Act or the regulations.
 

Further information can be obtained by contacting:

The Island Regulatory and Appeals Commission
Prince Edward Island
5th Floor, National Bank Tower
134 Kent Street, PO Box 577
Charlottetown PE, Canada, C1A 7L1
Tel. (902) 892-3501 Fax (902) 566-4076
 

The Application Review Process
 

Application is filed with Commission
Commission reviews and makes recommendation
Commission submits recommendation to Lieutenant Governor in Council
Lieutenant Governor in Council reviews and makes final decision
Lieutenant Governor in Council sends Order containing disposition of application to applicant or his/her representative
Order is registered with the deed for the parcel
 

The information contained in this publication is intended as a guide and not as a legal reference. The PEI Lands Protection Act should be consulted for an exact statement of law.
 

Initially Published: 1997-08-25

 

Rick Dufresne
Marketing and Web Services
Century21 Northumberland Realty (1987) Ltd.
902-436-2265 | 1-888-701-0021 TOLL FREE | Fax: 902-436-2687
www.century21pei.com
 Email me your comments rick@century21pei.com, I’d love to hear from you.

Tags: Prince Edward Island Canada // Add Comment »

 Reading through mounds of materials by expert/consultants  on investment would lead one to conclude that real estate investments are a good solid place to put your money.  Well we are not about to dispute that!

But not every real estate market is created equal. Certainly the Maritime markets and especially the PEI`s real estate scene differs drastically from that of Toronto’s or Calgary’s. Were real estate markets in some parts are subject to wild up swings and sudden downward adjustments, PEI has proven to be isolated from both in most parts.

Property values on the Island increase rather predictably from year to year with one exception…Oceanfront. The past five years have seen a steady, healthy increases in the price of water front properties on the Island.  As most of the Eastern Seaboard has been bought up and bid up, more individuals have come to realize that true value lies on the little emerald island. Even with the increase in value, ocean front properties are still a bargain when compared to any other local on the Atlantic coast line. Moreover, the season is a minimum of six month long (May to Oct) with mild temperate weather that offset more expensive acquisitions south of the border were the summer season is somewhat less attractive. As the trend continues, and with increasing interest in Island recreational properties, the market prices are not likely to go in any direction but upwards. 

In addition, there is still land available for development on PEI. Now having said that, you need to understand that there is legislation in place to protect the Island from unscrupulous developers looking to make a quick dollars at the expense of locals and the environment, but this legislation does not impede properly conceived and managed projects.  We have enjoyed much success over the past few years with projects like, Sunset Dunes and Sunbury Coves. All the while, our partners in these projects have enjoyed financial success and the satisfaction of watching their creative endeavours take form.

What about the residential housing market; slow and steady is the answer.  Average property increases in Summerside range around the 3% - 4% mark per year and Charlottetown’s would be comparable if not somewhat higher. The key to a residential market boom is apparent when we view Alberta.  Economic development equates to more demand for housing by migrating workers which drive prices upwards.  The likelihood of finding oil in PEI is not  that great however.  But the principle involved in generating the wealth from the market would be similar…jobs.

In a small local like Summerside the creation of 500 jobs would be front page news for some time, where as in Toronto you may get a foot note on page 53. When companies move in, and they have, they bring with them a core of personnel to ensure a smooth start up. In time some stay, while others return to the parent company. These events can be traced in the local real estate markets as they correlate with increases in new construction and real estate sells to accommodate the incoming work force.  Similar to Alberta, but on a smaller scale of course.

With the shrinkage of the global, advents in technology and the strategic location of Summerside with sea port, air port and road network, some have opted out of paying huge overhead costs that accompany doing business in other parts of the world and settled here. There is a formula for profit in real estate investments that becomes apparent with this strategy.

If you were to buy up land at current market values in the Summerside area, and then relocate industries to the area creating new employment in the process.  A percentage of the work force would be migrated in to provide required expertise. Since the market is fairly a tuned to demand, existing residential numbers would prove insufficient for an y substantial in bound migration. You would in turn be well positioned to develop those assets and stand to make substantial gains.  All be it dependent on the numbers involved in the migrating work force.

Food for thought.

Rick Dufresne
Marketing and Web Services
Century21 Northumberland Realty (1987) Ltd.
902-436-2265 | 1-888-701-0021 TOLL FREE | Fax:902-436-2687
www.century21pei.com
Email me your comments, rick@century21pei.com, I’d love to hear from you.

Tags: Prince Edward Island Canada // 1 Comment »

In 2006 Summerside Prince Edward Island made 50Plus Magazine’s top Canadian cities list! While polling the nation, the criteria for their annual pick of great spots in Canada included: the availability of leisure & cultural activities; housing & rental prices; proximity to special health-care services; employment; and weather & climate.

Certainly lifestyle is an important factor when it comes to selecting a place for your retirement. Most individuals tend to stay in the city (or area) they have been resident in for a majority for their adult life. A few however decide that retirement means the freedom to select where they want to spend their time versus where they had to spend their time. With choices come decisions and benefits. Taking stock of what is important to retiring individuals; let’s have a brief look at the major items.

1. Lifestyle and activities
2. Health services
3. Income strength
4. Weather & climate
5. Safety

Summerside offers a wealth of cultural activities for all ages; visit their web site to get a better idea http://www.city.summerside.pe.ca/. Activity is often considered an essential component to long and enjoyable retirement. Things to do; people to see and places to go; keeps one young and healthy.  How much activity is individually dependant but having the ability to choose from multiple resources will allow sufficient choices to satisfy all lifestyles.

                        

Summerside enjoys a new Hospital with all essential services. Specialty services might require a trip to Charlottetown or Halifax. Generally speaking, health care is good, the major issue is with shortage of family doctors. The city is actively trying to address by aggressively recruiting new doctors.  Of the clients I have dealt with in the past year, the average time to find a family doctor can take 3 to 6 months. Obliviously medical clinics and emergency ward are available to assist in the interim.

Here in lies the gem within this article and one of the main motivators for considering moving to Summerside. Many of our new residents are from major Canadian centers. With the price of housing in these areas, retirees elect to sell their home to access the equity from them and buy a comparable home here for much less. Many save $100,000 + and reinvest these saving into their retirement funds. The extra equity can lead to a better income over the entire retirement period.

                        

Prince Edward Island has outstanding beauty most months of the year and even the winter months are often milder than what most residents of Canada are accustomed to. Summers are never humid and the mean average winter temperature hovers around -10 C. The country side provides endless venues for adventure and exploration.

The city of Summerside offers its residents one of the safest place in North America to hang your hat. As Canada’s smallest city, residents here are still ‘small town’ in that they get to know their neighbours, like to help and respect other individuals.

No place is perfect but Summerside can offer you retirement options that most major Canadian centers cannot. It might just be worth your while to consider living on this ‘Gentle Island’. We invite you to pounder this thought and if you have questions, please send them our way, as your local experts…we can help!

Rick Dufresne
Marketing and Web Services
Century21 Northumberland Realty (1987) Ltd.
902-436-2265 | 1-888-701-0021 TOLL FREE | Fax:902-436-2687
http://www.century21pei.com
Email me your comments, rick@century21pei.com. I’d love to hear from you.

 

 

 

 

Tags: Prince Edward Island Canada // Add Comment »

Into March already and business is good. Like most of you I keep seeing articles on how the real estate markets will slowdown in Canada this year. Well I guess that is possible with the down turn in the American economy and the possible impact on the Canadian scene. However, I believe the impact will be felt more in the large Canadian markets like Toronto and Calgary versus Prince Edward Island. As spring approaches our offices begin to pick up even more activity focused on the recreational market. From land acquisitions to cottages and beautiful Summer Estates, enquiries start coming in at about this time. For those who may have worried that these would dry up, well if early numbers are any indication, relax…we are doing just fine.Let’s have a quick look at these 3 types of PEI real estate, what is involved, who is buying and for what purpose. Land, well oceanfront or riverfront properties are hot again this year. The average oceanfront piece fetches close to $200,000 Cdn for a relatively generous acreage with a couple of hundred feet of frontage. Riverfront properties are somewhat less expensive and can still be found for $150,000 range in certain areas. Certainly, there are single pieces here and there that do not fit this model, being somewhat more or less expensive. The averages given above are for lots in established subdivisions complete with services and covenants to protect purchaser’s investments.

The relative large increases in values for these properties have created a situation where more are on the market then normal. This in turn has caused marginal price increases over last year. But these are a finite resource and as more properties find new owners, the reduction in available pieces will cause the price to continue to climb. Who is buying raw land? Investors of course. Overhead on raw land is as low as you can possibly get, mainly pay your taxes. The increases in frontage and to some extent back lots makes for a rather low risk and decent profit margin scenario. We also see individuals who have plans for the future acquiring land today to fix the cost and ensure that they have the property they want for their future development.

Recreational properties (cottages) are open to both local and away markets. PEI is blessed with miles upon miles of oceanfront and some very beautiful and excellent rivers for those individuals more interested in water sport aspects. The Island has numerous small cottage communities spread out across its shoreline. Offering your quintessential rustic cottage; a small ‘A’ frame or one story structure with basic conveniences and outstanding views. Many of these are available between $100,000 to $150,000 Cdn, be they a few years old or brand new construction.   These are perfect for locals as weekend get a ways and for off Islanders as summer destinations. Many off Islanders will join associations that help them rent the cottage for those weeks that it would otherwise sit vacant thus offsetting costs. Buying this type of property means slightly higher overhead. Taxes go up of course, as does the cost of maintaining the structure and having it properly winterized at the end of a season.

Summer homes are a term I’ve begun to use to describe $500,000 or more estate properties that grace the shoreline with more and more frequency. Most of these are very elaborate constructions with upgraded amenities and would make lovely residences all year round.   Some do, as they sit in sub divisions with year round access. Although their frequency is certainly on the rise, these types of properties do not constitute a major sector of our real estate market at this time. The potential to see a rise in these types of properties would require a strong market of individuals with large disposable incomes and recognition of the Island as being a desirable destination for a longer period of time then the current 8 weeks I often see posted in articles from the New York Times to the Globe and Mail.

The concept that the Island only enjoys July and August as two worthy months is certainly very inaccurate. My concept stretches the desirable season from May to October and I can say this without grimacing. As spring blooms into life until the colors of fall recede, PEI is the place to be in North America, if you like weather without extremes, if you like natural beauty, if you seek a communion with said nature and an opportunity to devoid yourself of all the rushing and hustling that life has become famous for.  To paraphrase a famous commercial…’Try it you’ll like it!”

Buying recreational property on the Island for profit means allowing it sufficient time to accrue in value. If your interest is in making money by all means talk to one of our agents, they can assist you in making this happen but don’t look for 100% turn over within the year. Yes it has happen but it is not the norm. However, you can take the time to enjoy your investment at whatever level you deem comfortable (front a lot to an Estate) while it builds it worth.

Rick Dufresne

Marketing and Web Services
Century21 Northumberland Realty (1987) Ltd.
902-436-2265 | 1-888-701-0021 TOLL FREE | Fax:902-436-2687
http://www.century21pei.com
Email me your comments, rick@century21pei.com. I’d love to hear from you.

Tags: Prince Edward Island Canada // Add Comment »

That is not to say that the sign in of it self has no value, but rather I am stating that it is not enough to guarantee a sale. Unlike booming markets like Alberta, Toronto or Vancouver, your agent must spend a lot of energy, thought and more importantly resources advertising your listing if you hope to sell. The average length a time it takes to sell a home in Summerside is 3 months. Roughly 6 months if the residence is located out of town. This is based on a generalization from MLS statistics. Obviously some homes spend less time and others more. Most clients like the less time factor and worry about the more aspects. There are many factors that affect a homes ability to sell quickly in our market but a few of these are absolutely fundamental to success. PRICING  

I usually use an absurd example here to get my point across. If you list your house for $1, I will guarantee it will sell within 24 hours (worst case scenario I’ll buy myself!). However if your home is worth $150,000 and you ask your agent to get you a cool $1,000,000…then don’t pack up the kids just yet. The point is simple; you have to be priced according to the market. Again this being a smaller market, no two homes are identical. However, your agent can help you by providing you with a CMA. A comparative market analysis. It will show you what is on the market in your range, what has sold recently, what they got and what is still sitting. The hardest part for home owner is to settle on an asking price. We (myself included) always think our home is worth more. Your agent is objective and can guide you but in the end you have to be happy with the price also. Most agents will give you a range, the lower end will sell faster the upper end will take a little more time and effort. Some agents will walk away from a house priced to high and recommend some else take your listing. Why? Your agent runs a self employed business. His/Her paycheck will come from selling your home. Until then they will incur all advertising costs…and they mount quickly. If there is no hope of selling; then all they would be doing is throwing money out the door. Experience agents understand this principle, that’s why they are still in business servicing their clients. ADVERTISING  

Ok so you’ve finally come to terms on price, now your agent can begin his or her work on your behalf. The paper work gets submitted, the property gets listed on MLS and a sign goes up. Wonderful! Now all the agent has to do is sit around and wait for the offer to come in to make a living…WRONG! There are many things a knowledgeable agent will do for you at this time. These steps vary from agent to agent or in the order they might execute them but this is all behind the scene stuff that makes the offer become a reality. This includes inviting the office to view the listing during their weekly meeting. Having other agents familiar with your property will help sell it. How? Because when their buyers give them a list of what they want and your house matches most of those criteria’s, they will not hesitate to show it so they can achieve the sale part of the deal. (For those of you who aren’t that familiar with MLS, that is how it works. Agents split commissions between listing and selling side. One agent from one company can list your home and another agent from another company can sell it and they both get half the commission). MLS helps other agents from other offices know about your listing. Sometimes an agent will hold an open house ‘for agents’ only from all companies. Now every agent on the Island knows your house is for sale, great it is bound to sell now. Well maybe. It does not hurt to notify the general public that it is for sale. After all it will be someone from the public that will eventually make the offer. How do we do that? Depends on the agent/office. Now I will focus on what Century21 Northumberland does for their clients. I encourage you to ask your prospective agent prior to signing a contract what they will do for you in specific terms; after you sign it is kind of late. Century21 Northumberland uses the following methodologies for moving properties. Locally we advertise your property in the newspaper, and on the Home Show on Cable TV channel 9 (check it out if you haven’t seen it). In addition, we operate over a dozen individual web sites with different focus (some more on the local market and others design to get the attention of the “Away” market). Our Island coverage also includes running offices out of Borden, Kensington and Summerside. During the spring you can visit us at the ‘Home Show’ & in the summer you can see us at Spinnackers’ Landing. Century21 Northumberland agents currently run 4 pages in every issue of the Real Estate Book that covers the Island with a classy real estate magazine. We cover the Island with print, TV, web, and locations. In addition; to attract potential off Island buyers; we list your properties on large multi national web sites like BobVilla’s, Living Choices, Earthlink, and many more. There are many more methods that we use to help sell listings for our clients. They include email marketing, direct marketing, agent handshaking; we’ve even sent agents out to Alberta, Toronto, Las Vegas and China this year alone to help establish relationships with potential buyers. During the course of the year you can find the Century21 Northumberland properties advertised in single issue national publications, here national radio and TV ads or any multitude of venues. Individual agents also have their own methods of marketing your property that simply enhance your opportunity to find a buyer. The equations is simple, the more people that know your property is for sale, the better the chance of finding a qualified buyer.  This level of effort has help make Century21 Northumberland the #1 company in our area for listings and revenue. But the real reason we do it is simple - you deserve it! 

Rick Dufresne
Marketing and Web Services
Century21 Northumberland Realty (1987) Ltd.
902-436-2265 | 1-888-701-0021 TOLL FREE | Fax:902-436-2687
www.century21pei.com
Email me your comments, rick@century21pei.com, I’d love to hear from you.

Tags: Prince Edward Island Canada // 5 Comments »

At the end of every year we review or efforts and make plans for the up coming year.  A question was asked during one of our general session that went something like this ‘Why do people come to PEI and buy property?’ Now having a bunch of real estate junkies at the table you would think that this would be an easy cut and dry matter…but no!  Here I thought we would wrap up are little session quickly and head home for the festivities early.  Turns out the reasons people have are varied and sometimes complex. 

In the quest for the ultimate answer I prepared a little survey for a select group and fired the question at them.  The answers were not long in coming and rich in descriptions and reasoning.  Let me share a few of them with you:

1.  The Classic - “I wanted a piece of property on PEI because I was vacationing there regularly and decided it would be a better investment for me in the long run”.  In summary, instead of incurring expenses throughout the years for their holiday, the crafty individuals buy a place, enjoy it and then sell for profit.

2.  The Visionary - “Look I plan on retiring soon and with the value of my property here I can get an equivalent place on the Island and put a tidy sum away to top off my retirement years”. With the large increases in home values in Ontario, Alberta and basically most of Canada, this makes absolutely great economic sense.  For many who responded to this it was both lifestyle and economics that dictated the purchase. On that note, I jest about the unofficial exchange program between PEI and the rest of Canada.  We send our Youth out to your provinces for work and adventure and you send us your retirees for peace and contentment…we’ll take the trade ;o)

3. The Lifestyle - “Life in the big city is not getting any easier or safer, we wanted a place to call home were we would feel we know our neighbours, and they know us.  A place in the world were technology and mass media are available but do not dominate lives, a place were strolling down a deserted beach was still possible or just hanging out with friends in the backyard was still considered to be a very acceptable way to pass away one’s day”.  Ah lifestyle, that’s the one that got me here…absolutely no regrets either.

4. The Spiritualist - “We just felt a calling to the Island.  The energies there are phenomenal. We had to be part of it!”. I’m amaze on how many of you fall into this category.  I’ve met more psychic sensitive people here then in the psychic fair in Ottawa & Toronto combine. Thank you for coming, you ad colour to our lives.

5. The Pragmatist - “I’ve been looking up and down the Eastern Seaboard for affordable oceanfront properties.  I thought I’d never find one until I stepped onto the Island.  I can’t believe my good fortune! I got the properties of my dream for a fraction of the cost they were asking for anywhere else!” Glad we could help.  Look prices on PEI are going up, especially for waterfront properties in nicely developed S/D (we’ve got a few listed, see our best deals page). But what are friend is expressing here is a comparative value.  Another client, a real estate agent from Florida, was absolutely stunned by what $200,000 could buy her.  She had just finished the sale of an acre property in the lake district (not the ocean) for 10 times the price of what we were offering her.  Ah but Rick, its Florida -sunshine and warm weather.  Ok, fair enough but let me tell you what the new trend is becoming…

6.  The Snowbirds -  “We love to winter in Florida but we did not want to spend the summer’s there.  First of all, to keep our citizenship and health care benefits we need to come home.  What we found in Florida is that the summers are hot/muggy affairs with mosquitoes and tornados, we can do without.  So we ventured to PEI and found 6 glorious months (May to Oct) that perfectly off set our southern treks. Could not be happier”.  The new trend is winter down south and summer up here…great if you can make it yours.  We can help save you with your purchase at this end…in Florida well that maybe another matter.

I could go on, as my coworkers will attest to, seems the reasons are as varied as our clients but this summary touches on many of the popular reasons for buying a property on PEI if you are from off Island.  Don’t be afraid to add your own…we love hearing from you.

Thank you for taking the time to read…another lost art that you could rediscover here :O)

Rick Dufresne
Marketing and Web Services
Century21 Northumberland Realty (1987) Ltd.
902-436-2265 | 1-888-701-0021 TOLL FREE | Fax:902-436-2687
www.century21pei.com
Email me your comments, rick@century21pei.com, I’d love to hear from you.

Tags: Prince Edward Island Canada // 2 Comments »