Published in Seaside Magazine on April 25, 2024 by Randall Mang, Real Estate Advisor, Engel & Völkers Vancouver Island   Choosing a renovation contractor or new home builder is a big decision. Yet, experts say many consumers could benefit from doing more homework before jumping in. Victoria Residential Builders Association (VRBA) Executive Director Casey Edge says: “People often do more diligence buying a TV than hiring someone for a six-figure renovation.” Among other things, Edge advises consumers review a contractor’s projects, references, WorkSafeBC coverage, plus Better Business Bureau and VRBA affiliations. Noting that specific training is not required for renovation contractors in BC, Edge says new home builders – many of whom also do renovations – must be licensed by BC Housing – Licensing and Consumer Services and undertake 20 hours of professional development annually. Next on his priority list, he strongly recommends a fair and balanced contract based on fixed-price or cost-plus rates. Change Order forms are also advisable to address potential issues such as cost overruns, project delays and adjustments to the scope of work. When it comes to estimating building costs, Edge recommends consumers obtain quotes from several contractors, noting that materials and fixture choices, as well as municipal delays and fees can affect costs. For ballpark purposes, the online estimating tool by quantity surveyors BDConsultants.com is a good starting point. Its calculator presently indicates the average build-cost in Victoria of a single-family dwelling up to 2,500 square feet with basement is approximately $411/ square foot (SF), or $387.10/SF without a basement. Respected, CARE Award-winning home builder and renovation contractor Kyle Velikovsky of White Wolf Homes prefers to deal with clients who come to the table prepared. “If the estimated cost is $1 million and the client’s goal is $750,000, I would rather be direct and not mislead them. It’s all about fit and setting clear expectations, so the project can be a success in quality, budget and timeline.” While Velikovsky says new-build construction costs are generally predictable, renovation costs can vary, especially when unexpected complexities arise. In addition to updating and reviewing plans and costs on an ongoing basis, White Wolf provides its clients with online access to software that tracks the original estimated cost against revised costs that reflect changes if and as they arise. Ready to take on a project? To start your diligence, consider filling out an Expression of Interest form at www.vrba.ca. Full article online here: https://seasidemagazine.ca/common-cents-choosing-a-home-builder-or-contractor-do-your-due-diligence/

Published on June 7th, 2023 in Peninsula News Review  

By Randall Mang, Engel & Völkers Vancouver Island | Published on February 14th, 2023   On February 2,2023, legendary groundhog Punxsutawney Phil predicted six more weeks of winter. But when it comes to the annual spring real estate surge it’s apparent that an early bloom is already here.  According to Greater Victoria Real Estate Board (VREB) data, buyers rushed to capitalize on slumping home prices across all categories spurring vigorous mid-January sales, a trend that is continuing.  In a news release, VREB Chair Graden Sol reported, “We did see a mid-month surge in activity as buyers seemed to regain confidence after the rapid interest rate increases of last year. It may be that consumers are moving past the market shock of the rate increases and economic uncertainty and that our market is regaining its equilibrium.”  That doesn’t mean that sellers are losing, or that buyers are making all the gains. It means that negotiated deals are getting done. The key for those on both sides of the market is that seizing the moment requires acting strategically to achieve specific goals.  For buyers, making a good deal involves more than a sharp price. Choosing a mortgage wisely is always vital, and should factor considerations beyond interest rates.  Mortgage professional Leslie Denko of Sidney-based Mortgage Alliance Cutting Edge Lending says when it comes to mortgage terms there is no “one-size-fits-all” formula.  “Regardless of the current interest rates, I am an advocate of finding out what is important to my clients before making recommendations. Would the possibility of a fluctuating payment keep them awake at night? If so, then an adjustable or variable rate mortgage is not ideal. Are they on a fixed income, pensioners, or starting a family? These and other variables influence my recommendations.” Denko firmly believes that a mortgage should not be a source of stress. “You should be comfortable with your mortgage payment and have a buffer built in for the unexpected. Fixed or variable, short or long, it all depends on your unique circumstances.”  Just as importantly, she notes there is much more to a mortgage than its interest rate. “Some penalty clauses are ruthless. It’s important to understand the terms and conditions of what you are signing.”  My advice – and as Denko’s thinking illustrates – working with a mortgage broker is a smart  way to not just secure financing, but to achieve more fulsome success.    When it comes to selling a home, sharp pricing is particularly crucial today. As VREB data shows, and by my own experience, buyers have come off the sidelines looking for deals.  In this environment, an excessively high price risks a property stagnating on the market until subsequent price adjustments eventually garner buyer interest. On the other hand, setting a price signal designed to attract buyers will give both parties an opportunity to negotiate.  Regardless of the short- to mid-term market dynamics, Saanich Peninsula and Greater Victoria buyers and sellers should take comfort knowing that we live in one of Canada’s – and the world’s – most desirable places to live.  With more than a half-a-million new Canadians expected to arrive annually in the coming years, and housing inventory at record lows and unlikely to meet persistent demand in the foreseeable future, real estate remains a solid, long-term bet.  Want to make your best deal? Randall.Mang@EVRealEstate.com / 604-817-6204.     

Published May 2nd 2022 in Peninsula News Review

By Randall Mang, Engel & Völkers Vancouver Island | Published February 14th, 202 It was the summer of 2015 when my wife Louise and I first cruised into Port Sidney Marina. Little did we know then that within a year we would buy our dream home in this seaside hamlet and never look back.  We had crossed the Georgia Strait on our boat, leaving our home port on Vancouver’s bustling Lower Mainland to spend time in B.C’s Southern Gulf Islands. Among our planned destinations, we had heard Sidney was terrific; a great marina, lots of shops, restaurants and other attractions.  Beyond all that good stuff, for us, Sidney’s real appeal was its decidedly calm vibe. We recall seeing plenty of residents perched on benches, reading books, coffee mugs in hand. Then there was the public art, which began on the lawns of the sleek, waterfront Sidney Pier Hotel and extended up Beacon Avenue, Sidney’s main shopping street. A walk into the neighbourhood sealed the deal though.  Leafy tree-lined streets featured a variety of condominiums, townhomes as well as cozy bungalows and impressive beachfront properties, all exuding Sidney’s quiet pace of life, homeowner’ pride and warmth.  Walking north along Third Ave we noticed several streets including Rothesay Ave, Shoreacres Rd. and others led to breezeways to the sandy beach below. Our Golden Retriever Oliver, already having found his way into the water, was sold. We weren’t far off.  We began scheming and dreaming that very day. Our initial plan was to sell one of our rental properties on the Mainland and reinvest in Sidney – place a stake in the ground to support our future retirement plans.  Our daughter, then a 15-year-old real estate hound, began sending me listings. Among them was a brand-new home situated on one of Sidney’s most prestigious streets. The home was luxurious and offered views of both Robert’s Bay and Tsehum Harbour. Not exactly a rental, but worth a look.  On a rainy November day in 2016, it only took us one viewing to bring our dream home. The moment we drove off the ferry at Swartz Bay we felt the island’s embrace. With a little haggling backed by a cash offer we made our deal. We were thrilled.  But we wouldn’t truly discover how fortunate we were to have arrived in Sidney until we began to familiarize ourselves with the area’s more fulsome surroundings.  We literally walk around the corner to the manicured grounds of Van Isle Marina where our Cutwater C30 keeps cozy in her boat house.  Travelling the Pat Bay Highway’s 80 km – 90 km speed limit, it’s a breezy 25-minute drive to downtown Victoria.  Meanwhile, BC Ferries’ Swartz Bay terminal and Victoria International Airport are both a five-minute drive away. There is also ferry service from downtown Sidney to Anacortes, Washington State. How great is that?  Similarly, we discovered roadside farm markets in nearby Central and North Saanich, and the charming hamlets of Brentwood Bay and Saanichton at our doorstep.  Could life get any better? I suppose that depends on what you want. For us, and all our neighbours, Sidney has it all. 

By Randall Mang, Engel & Völkers Vancouver Island | Published October 18, 2022 Dale Carnegie famously said, “Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy.” In the context of today’s shifting real estate market, these words of wisdom could be well heeded by buyers and sellers now watching from the sidelines.  Meanwhile, others are making calculated moves that factor variables such as interest rate increases, falling home prices, and the arrival of new laws that will affect real estate transactions.  In my experience, capitalizing in a shifting market is founded on research, strategic planning and action that starts with sound advice.  For example, interest rate rises are affecting both home prices – and purchasing power. Scott Travelbea, a mortgage specialist with DLC Travelbea & Associates in Victoria, says consumer buying power has decreased 18% since interest rates began their climb in March. “Someone who qualified for a $1 million purchase with a $200,00 down payment in the spring now qualifies for a $654,000 mortgage with same down payment. Their purchasing power has dropped to $854,000.”   While the softening market has opened the door for negotiations, September’s Victoria Real Estate Board statistics indicate prices of condos, townhomes and single-family dwellings saw modest year-over-year gains.   It’s also important to consider how new federal and provincial regulations will affect real estate. Among them, the BC government’s Home Buyer Recission Period (HBRP) will come into effect in January 2023.  Del Elgersma, a partner at Beacon Law in Sidney, says while he does not expect the HBRP to have a significant impact on real estate transactions, it adds complications.  For example, he says, “For buyers, I don’t think it will be very helpful. Most real estate contracts already include ‘subject conditions’ [e.g., building inspection, financing] that give the buyer a period of time [usually seven to 10 days] to complete their due diligence, and to terminate the contract if the conditions are not satisfied.”  While the HBRP aims to discourage “subject-free” offers, Elgersma notes it will only give buyers “three business days after an offer is accepted to rescind the contract.”  For sellers, however, the HBRP adds risk. While buyers who use the recission period to back out of a deal will be required to pay a .25% penalty ($2,500 for a $1million property, for example), Elgersma says it may not be easy for sellers to recover this fee.  “In cases where the buyer has not yet paid a deposit, the seller will likely have to sue the buyer in small claims court to obtain the fee.” Generally speaking, beyond garnering input from various professionals, my advice to sellers is to maximizing upside by anchoring price negotiations in bottom-line financial goals. Assuming buyers plan to hold investments longer term (min 5 years, for example), factoring potential price declines into offers will provide a buffer against mid-range risk.   For example, I recently helped a client negotiate an accepted offer of $440,000 on a Victoria area condo originally listed for $525,000. A close look at recent sales reveals that deals like this are happening now.  Some things are certain: The housing inventory shortage will persist for the foreseeable future. We live in one of the most desirable jurisdictions in Canada, if not the world, to live. While others stand by, now is the time to negotiate and capitalize.  To learn more, visit RandallMang.com