The Victoria BC Real Estate industry has been glorified for years to be one of the most lucrative career options available to the average person. I’m not going to lie, the idea of getting a home financed, improving its value, and then selling it for an amazing profit is pretty appealing. This concept has driven the industry and made it into what it is today. Some people have managed to make quite a career out of it (I chalk it up to good timing among other things) and have even built a considerable amount in their savings account. Others might not have fared so well. We’ve all heard the stories of the great investment, where people are touting their amazing fortune. What we rarely hear about is the bad investor who jumped the gun and ended up losing it all. These kinds of stories are actually more common than you know. The real estate industry isn’t as easy as those house flippers make it seem and there are a few things you should know before buying .
Before investing in Victoria BC real estate, it’s important to consider much more than just housing prices. Predicting how a property might sell is not just a matter of statistics. Making a decision based on averages alone is one of the worst ways to predict the value of a home, especially if you’re wondering whether a sale is going to be profitable. Real estate is about the buyer, not the property. Unfortunately, people are inherently fickle and it’s almost impossible to predict precisely what clients are willing to pay for a home.
One of the most common schools of thought about investing in a home is that bigger is better. This might appeal to you if you’re investing in a home for a family, but if you’re just looking to flip a home, you should think otherwise. While it is true that bigger homes are more valuable, they also cost more to own and maintain. For an agent who wants to make a quick sale, major renovations can quickly start eating into profits. Smaller homes are a much smarter investment, especially for a first time home buyer. Maintenance is significantly less costly, property tax is less, and there’s less stress on the overall mortgage.
An agent with experience (wink wink nudge nudge) will know that market prices very rarely reflect the actual value of a home. In fact, most property assessments that are given by BC Assessment every year are lower than the current market value. That’s because the current market prices are an estimated price that a house will sell for, and it is based on current averages and the typical buyer for a property in that area. These averages are based on what an agent manages to sell a home for, not just what the property is worth.
There are times it may seem like the market has plateaued when in fact the numbers are based on old information. In just a few weeks the market could take a huge downturn. If you want to make a profit, you have to learn how to evaluate a property and understand what it’s really worth. Simply going by what similar properties are going for is not the only way. Ironically, it takes a deep understanding of property value to determine what a property value is. The only way to determine the value is to find out what the typical buyer is willing to pay, what lenders are willing to loan, and what the seller is willing to accept. Fortunately, I can walk you through evaluating any property, and can find you the right property for the right price!