Tips & Picks

2020 Property Assessment: How Does It Affect Property Taxes?

Thu, 23 Jan 2020 22:27:11 GMT

Annual Property Assessment Notices from BC Assessment Authority were mailed out in early January 2020, & by now you should have received yours. The “Assessed Value” figure is BC Assessment's estimate of the market value of your property as of July 1st, 2019 & this value is used to determine how much you will pay in property taxes this year. Many of the “Frequently Asked Questions” about the Assessment process are addressed in the brochures included with the Assessment Notice. Some of the major points worth repeating here are the following:

• The Assessed Value is an estimate of the market value of your property as of a July of the prior year, i.e. 2019, for the purpose of taxation. Few properties are actually visually inspected by a BC Assessment appraiser, & most assessments are computer generated using information from Real Estate MLS Sales records, Land Title offices, as well as building permit & zoning information from the cities or municipalities.

• The Assessed Value, however, cannot be relied on as an accurate representation of the current fair market value of your property. The Assessment Notices reflect Market Values determined 6 months before being delivered, which can be an eternity in the Vancouver/Lower Mainland Real Estate Market. For most years in the past 2 decades, it was safe to say that the Assessed Value was well below Market Value, as prices had been steadily, often dramatically, moving up. That trend reversed a couple years ago, & it was safe to say that, for most of 2019, market values were well below the January 2019 Assessments. The right hand column of the 2020 Property Assessment Notice displays the % Value Change for your property from 2019, its Property Value Assessment History each year from 2017, & the Average % Change for all Vancouver property, which for 2020 is minus 10% from 2019. Do the 2020 Assessments generated in 2019 accurately reflect Market Values as of January 2020? This is debatable - the Vancouver Real Estate Market can turn on a dime, & an “End of Year” mini surge in Sales & Market enthusiasm suggest that 2020 begins with values/prices back near the 2019 Assessment Levels (generated in 2018).

• How will the 2020 Assessment Notices affect the amount of tax Vancouver property owners pay this year? BC Assessment does not set property taxes, but only supplies value information, to which tax authorities (eg. the City of Vancouver) apply a complex formula to set the amount of tax each owner pays, ultimately expressed as a mil rate or tax levy rate which is the dollar amount for every $1,000 of property assessed value. The Levy is the sum of at least 6 different components including the General Purpose Levy, Provincial School Tax Levy, Translink Levy, BC Assessment Authority Levy, GVRD Levy, & Municipal Finance Authority Levy. For the past 3 years in Vancouver (2017-2019), the Total Levy has been between $2.47/$1,000 & $2.56116/$1,000 of Assessed Values. As well, the BC Provincial Government has tacked on an additional tax of $2/$1,000 for Assessed Values between $3M - $4M & an additional $4/$1,000 for the portion of Assessed value above $4M.

• On December 17, 2019. Vancouver City Council voted to increase overall property taxes by 7%, & apportioned this between Commercial & Residential properties by increasing Commercial property taxes by 6% & Residential taxes by 8%. Before applying this increase to the Tax Levy for 2020, the City Tax dept must 1st account for the overall (average) 10% drop in Assessed Values by raising the 2019 Taxation Base Rate by 10%, then tacking on the 8% increase (for Residential properties) so that the General Purpose Levy will rise approximately 18%. To apply the tax increase to an individual property, the % change in Assessed Value for that property compared to the Average % change must be calculated. Given the Average Residential Assessment decline of 10% in 2019, properties with less than 10% Assessment decline will see a relatively higher tax bill than those properties where Assessments declined more than 10%. In either case however, virtually ALL Vancouver property owners will receive an increased tax bill in 2020.

• Is it worthwhile to dispute or appeal your assessment? It is easy to dispute your assessment by telephoning your local assessment office & reviewing your property’s assessment with a staff member there. If they agree with you, they will recommend that the Court of Revision correct your assessment, & you may save on your taxes - a good deal for the price of a phone call! If they disagree with you, you will have to file an appeal with your local Assessment office by January 31! The telephone book has 25 listings for enquiries anywhere in the Lower Mainland. The Vancouver office is at #200-2925 Virtual Way, Vancouver, 604-739-8588 phone, 604-739-8666 fax.

• The Court of Revision is a 3 person panel appointed from the community by the provincial government. It is independent of BC Assessment and the tax jurisdiction. The Court hears evidence to determine only if your property has been valued & classified correctly. It does not have the power to adjust property taxes.

• What is the likelihood of a successful appeal? Even though your assessment may have decreased significantly from last year to this year, the test will be whether this yours is an accurate estimate of those market values, & whether you were fairly assessed. Sometimes the BC Assessment process is inefficient in setting value for a specific property, which may be basis for an appeal. It is probably wise to review your Assessment Notice to see how Assessed Values for your property changed compared to the Average Change for your area. The BC Assessment website, evalueBC https://evaluebc.bcassessment.ca/ allows you to compare your property to neighbouring properties, look up any other BC property by address, & to compare sales & assessment values.

• How much will the Property Tax increase actually cost you? As mentioned above, that is a complicated calculation, depending on a number of factors including your property’s value change relative to the Average. The City doesn’t actually finalize the Tax Levey Rate until May or so after all appeals and other information has been accounted for. To get a head’s up on this though, and to get a more specific indication on how your property tax may be impacted on this, you can direct your questions (with the above info as a reference) by email to Property.Tax@vancouver.ca .

If you want to discuss your property assessment and the appeal process, as well as the City of Vancouver Taxation process, please contact Bob. If you are looking to sell or buy real estate or wish to discuss further any topic on Real Estate, please contact Bob Bracken at 604-220-2035 cell, 604-263-2823 office, or bob@bobbracken.com email.

Printable PDF of this article - click here.

New BC LandLord Registry - for Owners and Tenants

Wed, 01 Mar 2017 21:54:22 GMT

Finding a good Landlord is about to get a little easier in BC, thanks to the new online BC Landlord Registry. Perhaps the timing could be perfect to help Owners and Tenants, since we can expect an increase in Landlords locally with the introduction of the upcoming Vancouver Vacant Housing Tax.

Landlord BC (a resource to help make owning rental Real Estate easier) is launching the registry called “I Rent it Right!” in February. The goal is to professionalize the rental industry even if the rental market has had a very low vacancy rate for months, if not years.

Here is how it works: The BC Landlord Registry is a voluntary program where property owners take an online course and exam on the Residential Tenancy Act. If they pass, landlords receive a competency “I Rent it Right” certificate that is posted on the Landlords BC website where prospective Tenants can check for free.

It will be a tool for Landlords knowledge base, which they will be able to use in the future to refer back to if they are uncertain about certain parts of the Act. The cost is $39 for a 3 year certification, so the Landlords will continuously have information, including notification if the Act is updated. Landlords can also differentiate themselves in the market with this certificate and use it as a marketing tool displaying competency. This program is offered on the Landlord BC website, and there are options for enhanced versions of the program. The Property Owners Plan costs $130/yr and includes additional features such as Landlord Registry Access, Proprietary Tenancy Forms, Educational and Operational Resources, Cost Saving Programs, and Phone Support. There is also a plan for professional Property Managers, which costs $1,000/yr with additional resources such as Marketing Programs.

Tenants can benefit too, by knowing their Landlords know their rights and the rules they must abide by. This could be a win win for both Owners and Tenants. If Landlords understand the do’s and don’ts of landlording they will be better Landlords. The Tenants will be able to search a database of registered Landlords when they are looking for a smart Landlord. Both Owners and Tenants could avoid conflicts, court cases, loss of time and money, by knowing the Residential Tenancy Act. For more information see www.landlordregistry.ca and www.landlordbc.ca.

As well, please consider Bob a resource if you have questions regarding appropriate rental rates for different suite types and areas, resolving tenant disputes etc. Call Bob Bracken anytime to discuss this topic and real estate.

If you are looking to sell or buy real estate or wish to discuss further any topic on Real Estate, please contact Bob Bracken at 604-220-2035 cell, 604-263-2823 office, or bob@bobbracken.com email. Printable PDF of this article - click here.

Property Assessment 2017

Thu, 19 Jan 2017 20:48:58 GMT

Annual Property Assessment Notices from BC Assessment Authority were sent out in the mail starting January 4, 2017, and by now you should have received yours. The “Assessed Value” figure is BC Assessment's estimate of the market value of your property as of last July. This value is used to determine how much you will pay in property taxes this year. Many of the “Frequently Asked Questions” about the assessment process are addressed in the brochures included with the Assessment Notice. Some of the major points worth repeating here are the following:

• The Assessed Value is an estimate of the market value of your property as of a July of the prior year (i.e. 2016), for the purpose of taxation. Few properties are actually visually inspected by a BC Assessment appraiser, and most assessments are computer generated using information from Real Estate Multiple Listing Sales records, Land Title offices and building permit and zoning information from the taxing authority (city or municipality).

• The Assessed Value cannot be relied on as an accurate representation of the current fair market value of your property. By the time you have received your Assessment Notice, approximately 6 months has passed, which can be an eternity in the Vancouver Market/Lower Mainland Real Estate Market. In recent past years, it was safe to say that the Assessed Value was well below Market value, as values have been steadily moving up. With the latest assessments, however, It is quite likely that the current market value of the property is lower than Assessed Value - largely due to the market and price changes that occurred since the BC Government imposed their new “Non Residents’ Purchase Tax” in late July of 2016. It is also quite likely the 2017 Assessed Values will be lower than the 2016 assessments, when the notices become available in 2018.

• You can dispute and appeal your Assessment if you disagree with it. If you think your assessment is wrong and wish to dispute it, 1st call your local assessment office and have them review your assessment. If they agree with you, they will recommend that a change be made to the Court of Revision. If they disagree with you, you will have to file an appeal with your local Assessment office by January 31! The Court of Revision is a 3 person panel appointed from the community by the provincial government. It is independent of BC Assessment and the tax jurisdiction. The Court hears evidence to determine only if your property has been valued and classified correctly. It does not have the power to adjust property taxes.

• BC Assessment does not set property taxes. It only supplies market value information, to which tax authorities (eg. the City of Vancouver) apply a tax or mil rate to set the amount of tax you pay. Property assessments have risen, on average, well over 30% from the year earlier, but this is an across the board increase, so relative property taxes should only increase modestly - largely as a result of the Municipal Government actually designating and imposing a slightly higher tax rate.

Is it worthwhile to dispute or appeal your assessment? It is easy to dispute your assessment by telephoning your local assessment office and reviewing your property’s assessment with a staff member there. If they agree with you, they will recommend that the Court of Revision correct your assessment, and you may save on your taxes - a good deal for the price of a phone call! If they still disagree, you may want to appeal. Launching an appeal is easy, but the following two factors might be considered before investing the time and effort:

1. What is the likelihood of a successful appeal? Even though your assessment may have increased significantly from last year to this year, the test will be whether this is an accurate estimate of today’s market value. Sometimes BC Assessment has to play “catch-up”, and a sharp increase may mean that your property is only now properly assessed. Property assessments have risen, on average, well over 30% from the year earlier, and may be vulnerable to challenge or review.

2. How much will the assessment increase actually cost you? Possibly nothing and it could also actually result in a reduction in your property taxes if your assessment has increased at a lesser % than the average % increase in your neighbourhood, or across the City. The BC Assessment website, evalueBC https://evaluebc.bcassessment.ca/ allows you to compare your property to neighbouring properties, look up any other BC property by address, and to compare sales and assessment values.

You can call your local BC Assessment office. The telephone book has 25 listings for enquiries anywhere in the Lower Mainland. The Vancouver office is at #200-2925 Virtual Way, Vancouver, 604- 739-8588 phone, 604-739-8666 fax. If you want to appeal your assessment you must make it in writing by mail or fax to your assessment office by January 31.

For the BC Assessment website evalueBC - click here

If you want to discuss your property assessment and the appeal process, please contact Bob.

If you are looking to sell or buy real estate or wish to discuss further any topic on Real Estate, please contact Bob Bracken at 604-220-2035 cell, 604-263-2823 office, or bob@bobbracken.com email.

Printable PDF of this article - click here.

MINOR CHANGES TO RESIDENTIAL TENANCY ACT

Mon, 30 Nov 2015 20:12:26 GMT

Those who are, or are thinking of becoming, rental property owners and landlords, may be interested in the following proposed minor changes to the Residential Tenancy Act:

In keeping with government’s goal to reduce red tape, landlords will be able to repay security deposits electronically.
Tenants will be able to terminate a fixed-term lease early without a financial penalty if they are fleeing violence or headed for long-term care. They will be permitted to give one month’s written notice, accompanied by written 3rd-party verification from a professional, who will likely include victim services workers and justice system and healthcare professionals.

For complete BC Residential Tenancy Act Regulations - click here.

If you are looking to sell or buy real estate or wish to discuss further any topic on Real Estate, please call Bob Bracken at 604-220-2035 or 604-263-2823.

Real Estate Readings Road to Wealth

Thu, 20 Jun 2013 23:23:00 GMT

Real Estate ownership is probably the simplest & most direct means of people becoming rich today. One of the keys to prospering through real estate is the ability to think creatively, and use available information to see opportunities missed by others. This is a very learnable skill, and there are some very good books out there to help develop this skill. Here is a "book report" on my favorite "top 5" books for Real Estate investors:

1. "Real Estate Riches" by Dolf de Roos. This is part of the "Rich Dad Advisor" series and in 160 pages, has more great ideas on how to find, buy, manage, sell andthink Real Estate than any other book that I have read. Many of the opinions and tactics presented in this book will make your Realtor, banker, lawyer, and parents cringe, but most of these ideas are just common sense. Best quote in the book:"The Deal of the Decade Comes along About Once a Week"! Published by Warner Books, available @ Chapters, Amazon $24.95.

2. "Rich Dad" Series by Robert Kiyosaki. Currently 5 books: "Rich Dad, Poor Dad"; "Cash Flow Quadrant"; "Rich Dad's Guide to Investing"; "Rich Kid, Smart Kid"; and "Retire Young, Retire Rich". I have lumped all of these books into one selection because they all expand and develop a few powerful themes. A few of these themes are: "Relying on a safe, secure job almost guarantees that you won't get rich." "How you make your money is more important that how much money you make." and "Using leverage is critical, and the most powerful leverage is your mind!" Published by Warner Books/Cash Flow Technologies. Chapters Books or Amazon are good sources, prices range from $20 to $30.

3. "Buy It By The Acre, Sell It By The Foot" by Sam & Sheldon Allman. This tells the detailed, step by step story of a Vancouver Island subdivision development. From the initial desire to do something, through finding something, raising money, and taking the project through governments, banks, construction, etc. to sale. The story, told by the developer/author, is practical, entertaining and interspersed with 37 "Great Truths". Best Quote: "If you've ever lost any money in a real estate deal, this book will tell you where it went." Published by Crossroads Press, available at Chapters/Indigo $19.95.

4. "Buffettology" by Mary Buffett and David Clark. This book explains the methodology and calculation processes that Warren Buffett - the World's most successful investor - uses to identify businesses that he feels are worthwhile investments. There is no mention of Real Estate in this book, and, in fact, Buffett does not invest in pure Real Estate. However, what he does do as an investor considering investments, is bring an approach and discipline to the selection process that can be applied to Real Estate. Think of this as enjoyable "cross-training" for the Real Estate game! Available @ Amazon.com $17.95.

5. "The Real Estate Game" by William Poorvu. The author is head of the Real Estate program at Harvard Business School, but don't hold that against him - he is also a very experienced owner/developer/manager of his own properties. This book is a very systematic examination of the decision making process in the real estate business from the viewpoint of small and medium-sized players. It is interspersed with a good number of case studies & provides a great "back of the envelope" analysis tool. Available @ Chapters & Amazon $29.05.

How To Help The Bad Tenant . . . Move On

Thu, 30 May 2013 23:28:00 GMT

There are some situations where a rental property owner or landlord may be best advised not to be "hands-on", but instead turn the problem over to a professional or professional service. A great example of this is when a tenant must be evicted for legitimate cause, and when that tenant makes it clear that they intend to ignore notice to move. I am often asked for advice or help in these matters - usually by a client who is very frustrated, worried, and unsure how to act. In recent years, I have been able to confidently direct my clients (and others) to valuable, professional help.

Mr. Stephano Muzzatti is in the business of handling these types of disputes in a professional and cost effective manner, saving the landlord (and the tenant) a lot of time, money and emotional energy. Mr. Muzzatti spent 12 years as a Court Bailiff, and saw 1st hand the high costs, unnecessary hassle, and business disruption that landlords were incurring by attempting to deal with these disputes on their own - in an environment where the courts and regulations were stacked against them. After years of being asked by landlords to "moonlight" in unpleasant tenant disputes, Mr. Muzzatti started his own company, Vancouver Eviction Services (VES), to handle a constant demand for his services.

For a total fee of $650 to $800, VES will handle the legal eviction of a bad tenant in breach of tenancy. This is often a 2 step process. First, it is necessary to get an "Order to Vacate" - this includes serving legal notice on the tenant, making application for a hearing at the Residential Tenancy Office if the notice is disputed, serving notice of the Hearing to the tenant, & attending the hearing & defending the notice on behalf of the landlord. Second, once the Arbitrator gives an Order of Possession, VES ensures that the tenant complies with the Order. This involves again serving notice on the tenant, and firmly keeping the pressure on the tenant to comply. All of this saves the landlord a significant amount of hassle & paperwork - especially if a mistake is made. In the case of compliance alone, using Court appointed Bailiffs to evict can cost a property owner between $1,300 to $4,000!

I recently asked Mr. Muzzatti a few "Frequently Asked Questions" regarding tenant disputes:

Most Common Reason VES is Hired: Non-compliant tenants who defy or ignore landlord notice. The most common issues include unpaid rent, gross breaches of tenancy agreements, disruptive or destructive behavior, and drug use. As well, disputes often arise when the premises are sold, and the tenants refuse to vacate, in spite of receiving legal notice.

Most Common Mistake by Landlords in Tenant Disputes: Not following correct procedures, and making costly mistakes in the eviction process. Documents are filled out incorrectly, wrong or invalid documents are used, and documents are served improperly to the tenant. Many landlords fail to keep good tenant records (receipts, rental agreements, notices and letters etc.), and this proves their undoing at Arbitration, or in Court.

How Long to Evict a "Bad Tenant"? This depends on when VES becomes involved, and how far along the process is. Unpaid rent is the easiest issue to deal with, and usually takes 13 to 17 days to resolve. Other disputes can be less cut & dried, but VES can usually expedite the process by getting involved early, and ensuring that all paperwork & notices are prepared and delivered correctly.

What Can Landlords Do to Minimize the Risk & Cost of Tenant Disputes? Good tenant selection is critical - landlords should even consider using a professional tenant screening service. Keep good records, receipts, etc., and documenteverything. However, even good tenants can turn "bad" - this is just a fact, and the cost of doing business. Every rental property owner can be prepared for the worst by having a plan of action for when things start going wrong. One of the most important good habits is to not let a bad, or deteriorating situation drag on un-addressed and unresolved.

Mr. Muzzatti and Vancouver Eviction Services can be contacted at 604-868-0533.

Book Review - The Warren Buffet Way

Wed, 01 May 2013 23:29:00 GMT

It’s book report time! In addition to stuffing my face, I have put the holidays to good use by catching up on my reading, so here is a book that any investor of any kind of investment should consider a “must read”!

It’s called “The Warren Buffett Way - Investment Strategies of the World’s Greatest Investor”, written by Robert Hagstrom Jr. and published by John Wiley and Sons, Inc. For those who aren’t familiar with Warren Buffett, he is probably the most famous investor in North America, and a man who has turned a $100 investment in 1956 into a 1994 net worth of approximately $10 Billion. When he talks, everyone should listen!

Although he has made his fortune by buying (and mostly keeping) businesses on the stock market, his investment principles and strategies apply equally well to other investments - including real estate. The book reveals the basic simplicity of Buffett’s thinking and common sense approach - an approached based on the ability to assess value by doing the necessary homework, and then being willing to act upon the knowledge without regard to the “mood” of the market.

On Market Timing:

“The most common cause of low prices is pessimism....We want to do business in such an environment, not because we like pessimism but because we like the prices it produces.” “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

On Investment Decisions:

“From his experience, Buffett has learned that good businesses enable the investor to make an easy decision, but tough businesses require difficult decisions. If the decision to purchase... is not easy, he will not pursue the (investment).”

On Basic Rules for Investment Success:

“Invest within your circle of competence” Buffett observes that investment success is not a matter of how much you know but how realistically you define what you do not know. “An investor needs to do very few things right as long as he or she avoids big mistakes.”

The book is available at most good bookstores in the Vancouver area and sells for approximately $20 or less at Costco. It’s a great investment!

Building Bylaws Insurance Coverage

Tue, 30 Apr 2013 23:25:00 GMT

One of the most common questions I am asked by someone considering buying an investment property is “What will happen to my investment if I have a fire?” If the place is completely destroyed, any decent fire insurance policy will probably protect the owner. In the event of a partial loss however, an important and often overlooked coverage may not be on the policy. In a city like Vancouver, or any city where the housing stock is older, Building Bylaws Insurance Coverage is a smart investment. When a building was built, it met the bylaws of the time but these bylaws may have changed. When there is a partial loss to a building, municipal ordinances may require that you comply with new codes - such as building with different materials, incorporating underground parking, including sprinkler systems, or adding wheelchair ramps. These requirements can turn a small loss into a devastating one because most insurance contracts exclude coverage for losses arising from bylaws or other ordinances affecting repair or reconstruction of a damaged building. If municipal authorities demand that an owner tear down the undamaged portion of a building before rebuilding, or that reconstruction can only take place if, for instance the building is equipped with a sprinkler system, then the owner will be out of pocket for the differences in cost which are not covered by their insurance policy.

Other common areas of exposure to financial loss resulting from inadequate or nonexistent “bylaws coverage” are as follows:

1. If a building suffers a loss and municipal ordinance requires that it be torn down, the owner will be responsible for the cost of demolition.

2. The owner will also be responsible for the costs of subsequently removing the debris.

3. In addition, if different quality materials must be used or alterations made to meet upgraded building standards or zoning requirements, the owner will be responsible for those costs.

Building Bylawn Coverage is inexpensive, can guard against experiencing these devastating surprises and can be purchased in the following forms:

1. Value of Undamaged Portion of Building Coverage: this covers the replacement cost value of the undamaged portions which must be torn down because of a bylaw is in effect at the time of loss.

2. Demolition & Debris Removal: this covers the costs of tearing down and carting away the debris from the damage.

3. Increase in Cost of Construction Coverage: this will cover, for example, if a building of mixed construction suffers heavy damage and ordinance stipulates that the new building be of masonry or even fire resistive construction.

Transferring the risk of loss of your assets to Insurance Companies is one way of managing risk. However, the policy is only as good as the coverage, which should be built to meet each owner’s specific requirements. Bylaws Coverages are an inexpensive way to customize your insurance policy to meet your specific needs as a property owner. This information was provided by Heather Scheibal of Reliance Insurance Agencies Ltd. For more details and specific information on this and other property insurance issues, please call Heather Scheibal at 255-4616.

It's Book Report Time - Buffettology

Mon, 01 Apr 2013 23:27:00 GMT

unabasehed regard and admiration for the famous U.S. investor, Warren Buffett. I have just read and re-read another great book about Warren titled “Buffetology”. Written by Mary Buffett his (ex) daughter-in-law and David Clark, a long time friend of the Buffett family. This book is designed to teach Buffett’s system for picking successful investments. The reader is taken through the qualitative analysis and then the (relatively) simple quantitative analysis Buffett uses to determine whether an investment is worth-while or not. The book shows how Buffet takes into account the effects of taxation and inflation to determine the minimum investment return he must have and then reveals the approach through “case studies” of actual investments he has made.

The book is a delightful read, with step by step discussion broken into short chapters, making it easy to understand the approach of this modern day investment wizard. The real value of this book is that it illustrates again that the genius of Buffett is in the employment of solid, simple business principles to create wealth. Again the name of the book is “Buffetology”, cost is $21.00 in paperback.

Risk & Real Estate

Sun, 31 Mar 2013 23:28:00 GMT

Risk - one of the most critical factors to consider in making any investment! Risk in real estate investing exists because the market place is imperfect, and seldom can real estate investors make perfect projections or forecasts of investment performance.

There is , however, a difference between risk and uncertainty. With uncertain outcomes, no reliable information exists to determine an outcome’s chance of occurrence. In contrast, investors can use their own assessment of an investment with information that allows them to judge the risk in each investment alternative.

There are several categories of risk as it affects real estate investment, and in later issues of this newsletter we will address these in greater detail.

Where Do Buyers Come From

Fri, 01 Mar 2013 23:29:00 GMT

Whether they’re first time buyers, move-uppers, down-scalers, transferees or investors, research shows that the buyers of real estate are introduced to property by various means and methods. A a sales professional, it makes sense to study these statistics for the benefit of our buyers and sellers. Here is some more valuable information:

• 1% bought an open house they saw.

• 3% bought for a combination of reasons.

• 3% bought property they saw advertised.

• 7% were referred by a relocation service.

• 8% responded to an open house but bought a different home.

• 18% responded to an ad but bought a different home.

• 20% bought because of the For Sale sign.

• 40% bought as a result of working with a Realtor

Everyone knows someone who bought the first open house they walked into and some can say they found the property they bought by scouring the advertisements daily. However, the above statistics seem to reveal that most buyers bought what they did because they were working with a professional Realtor who knew the inventory.

What this means is, if you are thinking of buying or selling real estate, be sure to work with an agent who knows the inventory and keep that Realtor up-to-date with anything you see that may interest you.