commercial real estate trends bc

Top 5 Commercial Real Estate Trends in BC

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Trends in Commercial Real Estate You Don’t Want to Miss

Despite high interest rates, inflation, increasing building costs and rent hikes, the future of commercial real estate in British Columbia is looking brighter than ever. British Columbia continues to withstand and adjust to market challenges by embracing commercial real estate trends. Easily adapting to change is key to maintaining resilience in the fast-paced real estate sector.

At D. Fritz Appraisal Inc., we’re experts at understanding today’s real estate trends. With that in mind, here are five commercial real estate trends worth flagging for future investment!

  1. Repurposing Commercial Office Space

Hybrid work models have eliminated the need for professionals to go into the office at a rate never seen before. Vancouver’s office space availability is the highest in 20 years, with landlords and building owners adapting their leasing strategies as many tenants require more flexibility with their office space rentals. 

One such adaptation is coworking. Though it had a shaky start, coworking or flexible workspace locations continue to expand beyond Vancouver’s downtown core, providing renters with shorter leases and more flexibility at a higher cost.

While easier said than done, another approach to repurposing empty offices is to turn them into housing. Converting commercial real estate into residential housing may help with the housing crisis, but there are a host of challenges to consider:

  • Size and number of windows
  • Electrical
  • Mechanical
  • Plumbing
  • Elevators

Based on the requirements above and other specifications, only about 25% of commercial buildings meet the conversion criteria. 

  1. Thriving Retail Sector

The retail sector recorded a whopping 91% increase year over year in Vancouver’s second quarter, with over $723M in transactions. Traditional retailers are adapting to online shopping by creating experiential shopping centers that integrate residential living, office space and in-person shopping. Oakridge Park and CF Richmond Centre are examples of shopping that blend living, leisure and work.

Top among the shopping experiences driving growth are food-related retail spaces such as grocery stores. There has been a shift from traditional clothing and jewelry merchants to more service-based offices and restaurants.

  1. Investment in Multifamily Homes

At D. Fritz Appraisals Inc., we understand that finding affordable housing amid the housing crisis has become a significant challenge in British Columbia. Zoning changes now mandate that all large municipalities in BC allow multiplexes to be built on lots formerly deemed single-family or duplex. 

As a result, the Altus Group has recorded huge gains in the multi-family sector in the second quarter of 2024, with $638M changing hands in Vancouver, a 68% increase year over year. Multifamily properties are attractive to institutional investors for their ability to generate stable income in a market known for low vacancy rates and where demand remains high for rental housing.

  1. Clean Energy Infrastructure

Commercial real estate trends in clean energy infrastructure are on the rise. As the demand for more sustainable building construction grows in the industrial real estate sector, greener solutions like North Vancouver’s hydrogen liquefaction plant are becoming more common.

A few of the incentives and programs leading the way when it comes to cleaner building include:

  • BC Energy Step Code – The BC Building Code requires a 20% energy efficiency improvement for most new builds in BC
  • Vancouver’s Zero Emissions Building Plan (ZEB) – A plan to transition to zero-emission new construction by 2030
  • BC Hydro’s Power Smart – Free offers and rebates for energy-efficient renovations and products
  • LEED – Leadership in Energy and Environmental Design is an international symbol that recognizes green building practices

Despite the higher initial cost, investing in clean energy is sound. Investors and tenants can reap long-term benefits such as lower operating expenses, higher property values, and reduced environmental impact.

  1. Rising Interest Rates and Increased Building Costs

High interest rates and higher costs to build are a few of the challenging trends in commercial real estate. High construction costs are affecting the supply on new builds and slowing down the release of new properties into the market. The financing hurdles associated with increased costs are driving investors towards existing properties to generate income.

High interest rates were a major concern for commercial real estate investors at the start of 2024. With the Bank of Canada holding interest rates at 5% (Dec 6, 2023), there was no relief in sight for investors struggling with high payments. Now, as interest rates soften, the commercial real estate sector has started to recover and become more attractive. 

What Does the Future Hold?

As you might expect, government policies, population, and the economy will influence the future of commercial real estate in BC. Expect to see:

  • Traditional office spaces will continue to be repurposed as working from home becomes the new gold standard for achieving work-life balance
  • Industrial real estate will expand to accommodate e-commerce. Distribution centers, logistics hubs and delivery spots will grow to meet demands
  • Stricter environmental regulations will force developers to adopt green building practices and energy-efficient technologies
  • Rental rates will remain high as housing demands continue to exceed supply

These are just a few trends in commercial real estate that will shape British Columbia’s future.

Trust D. Fritz Appraisals to Keep up with the trends in Commercial Real Estate 

Would you like to know what to expect from a real estate appraisal with D. Fritz Appraisals Inc.?

You can expect our commitment to provide you with the highest level of residential or commercial appraisal service from Victoria to Nanaimo and the Gulf Islands. Our outstanding team of certified appraisers will tailor your appraisal report to meet your lender’s requirements. A list of frequently asked questions can be found here. But if you still have questions, our team will be standing by to assist you.

Follow D. Fritz Appraisals Inc. on Facebook or Instagram for client reviews and to keep up to date with trends in BC’s ever-changing real estate market, and don’t forget to reach out to order your appraisal. You’ll be happy you did!

victoria bc real estate market in five years

Victoria Real Estate Market 5-Year Predictions

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Victoria Real Estate Market Update Spring 2023

Victoria Housing Market Predictions for 2023 and Beyond

So far, 2023 has seen Victoria, BC’s housing market stabilizing from the extremes of 2022. While sales remain slow and prices have dropped from last year, both are increasing steadily as more inventory comes onto the market.

However, experts predict a strong recovery for Victoria Real Estate in 2024, when sales numbers will pick up again as a result of increasing inventory, an easing of financial restrictions and ongoing demand for homes. 

Victoria house prices are also expected to start to increase slowly through late 2023 and into 2024, although they likely won’t return to the highs of early 2022.

Low inventory – especially a lack of new builds – and high demand are anticipated to continue to drive the housing market in Victoria, BC in the near future. The number of people wanting to move to the city does not seem to be waning, and this high demand for homes could result in a return to higher sales prices in the medium term.

Read on for more information about the Victoria, BC, real estate market in 2023 and our predictions for the housing market in Victoria in 2024.

Interest Rate Hikes Cooled Record Highs of 2022 Housing Market

Interest rate hikes put in place by the Federal Government during the second half of 2022 to reduce inflation cooled the housing market in Victoria and across Canada by limiting the number of buyers in the market. 

According to the CBC, these interest rates reduced demand by limiting the amount buyers could borrow. They quote the Bank of Canada as stating that economic actions so far ‘have raised the carrying costs of mortgages significantly enough already that much of the excess demand for housing has now gone.’

Fewer buyers resulted in fewer bidding wars and a subsequent reduction in the average sales price. As this chart from the Canadian Real Estate Association shows, by the beginning of 2023, the average selling price had fallen from an all-time high in mid-2022.

home prices victoria

By the fall of 2022, there were strong signs that for real estate, Victoria, BC, was returning to a more balanced market. The Times Colonist noted demand for inventory was almost back to normal, stating: 

  • A balanced market usually sees sales numbers at 15-20% of the available inventory. In 2021 Victoria had sales levels at 94% of inventory. However, by August 2022, this had fallen back to 28.1%.

Spring 2023 – The Start of a Housing Market Bounce Back?

According to the Victoria Real Estate Board, the first few months of 2023 saw slow sales, with April 2023 sales down 22.7% compared to April 2022. However, sales were 8% higher than in March 2023, showing positive signs that the traditional spring market boost may have returned.

House prices also followed the same trend, with April 2023 prices for an average single-family home in the Victoria core being down 11.3% from April 2022 but seeing a slight increase over March 2023.

Although the Canadian Real Estate Board reported that active listings in Victoria had increased significantly in March 2023, when compared to the same month in the previous two years, it noted that more inventory is still needed to balance demand.

home listings victoria

Overall, there are several positive signs that confidence is starting to return to the Victoria housing market in 2023, such as:

  • Buyer demand is starting to bounce back.
  • Active listings are increasing.
  • Interest rates remain high, but buyers have more choice and less competition. 
  • The high-pressure sales market seen a year ago seems to be easing.
  • The home buyer rescission period, which was bought into effect in BC in Jan 2023, has given buyers more confidence.

BCREA Expects Strong Housing Market Recovery in 2024

So where do commentators think the Victoria housing Market will go over the rest of 2023 and into 2024?

The Vancouver Sun notes that BCREA is forecasting a province-wide 7% drop in sales by the end of 2023 as buyers struggle with high interest rates, but suggests this will reverse in 2024 with a rebounding 24% increase in sales.

For Victoria specifically, the BCREA suggests market changes will be more modest, with home sales falling by 3% and prices dropping by 5.7% on average by the end of 2023. These numbers are reflected in the table below, published by Real Estate Magazine.

Prices May Increase Again if Demand Outpaces Supply

While slow economics and elevated mortgage rates will continue to limit market growth during the rest of 2023, BCREA predicts that in 2024 we will see a strong recovery boosted by lowered interest rates and high immigration.

Mortgage Sandbox agrees that over the next year or so, the housing market will be impacted by: 

  • Federal immigration targets – which will bring more home seekers into communities.
  • Interest rates – while variable mortgages rose from 1.7% interest in January ‘22 to 6.4% in March ’23, many forecasts suggest interest rates will likely be lowered during 2024 once inflation is more under control. This will boost buyers’ confidence, leading to higher sales.

However, it’s worth noting that any significant increase in demand may be an issue for Victoria. CMHC, in a housing report for 2022, predicted that supply constraints would continue to impact major Canadian centres in the medium term for new housing supply.

If Victoria’s market returns to one where demand outstrips supply, prices could swiftly increase again. VREB Chair Graden Sol has noted that ‘If listings do not pick up…. there is a risk that the price stabilization could turn, and we could see prices increase.’

In summary, during the remainder of 2023, the Victoria real estate market will likely experience prices that are lower than in 2022 but slowly increasing. Sales will also increase as seller confidence returns. The ongoing demand for homes in Victoria, coupled with easing financial pressures is predicted to lead to a rebound in both sales and prices during 2024.

Trust D.Fritz in a Changing Property Market

In this ever-changing housing market, you can rely on D. Fritz Appraisals to provide a fast and accurate home appraisal that reflects the current situation.

We make it our priority to understand the Victoria, BC, housing market so we can provide up-to-date and helpful property appraisals, whether you are looking to sell, buy, remortgage or need a valuation for another purpose.

To arrange a property appraisal from a certified member of our team, contact us today.

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*Posted June 28, 2022

What do Experts Think the Victoria, BC Housing Market Will Look Like by 2027?

The state of Victoria’s housing market is never far from anyone’s mind, especially for first-time home buyers, those moving to a new area or for people looking to sell.

Between 2021 and 2022, house prices in the Victoria, BC region rose by an average of 20%. This significant increase came about due to the unprecedented combination of:

  • All time low mortgage rates
  • Higher disposable household income 
  • Significantly reduced housing inventory

While low mortgage rates created higher demand, the lack of available homes led to price increases and over-bidding.

Now, many people are asking when the market will correct itself. Although accurate predictions are impossible to make, it looks possible that there will be some slowing or reduction in house prices over the next five years.

Victoria’s House Prices are Up Over 20% Year Over Year

So says a report by VictoriaBuzz.com who also noted that prices on Vancouver Island as a whole rose by a whopping 32.8% in 2022 compared to 2021, putting homeownership further out of reach for many.

At the same time, inventory of available homes dropped significantly and BCREA Chief Economist Brendon Ogmundson is quoted as saying ‘While sales are not keeping pace with the unprecedented levels seen [in 2021], demand remains strong’.

Experts seem to agree that the accumulated gains from 2020-2022 are not sustainable and at some point, housing prices will fall. In a bid to control that reduction and avoid a crash like that seen in the US in 2008, the Bank of Canada increased interest rates throughout 2022 and it is predicted there will be further increases into 2023.

So, what impact is that likely to have on the Victoria, BC housing market in the coming 1, 2 and 5 years?

Pace of Real Estate Market Steady into Spring

In the Victoria, BC housing market, low inventory has continued to result in record low sales numbers. According to the Victoria Real Estate Board statistical round up for May 2022, sales were down 26.2% from 2021 – notably low for spring. And while they say that the recent interest rate increase and inflation have cooled demand slightly, there is still a lot of competition for each home on the market – especially those in lower price ranges.

Some good news came in a June 2nd piece in the Times Colonist – Victoria real estate market finally cooling off, but too late for some, which notes that housing inventory is finally picking up, with the number of houses available at the end of May up 30% compared to a year ago.

Opinions differ on what difference this will make to house prices though.

In their March 2022 article, Bubble burst risk: Canadian home prices predicted to fall by 24%, Urbanized.com states that the accumulated gains from 2020-2022 are not sustainable. They quote UK based research group Oxford Economics as predicting Canadian house prices could fall by 24% between the summer of 2022 and 2024.

This fall in prices isn’t likely to happen in Victoria though according to Mortgage Sandbox, who report values will continue to rise in 2022 across all housing categories. Although the rate of increase in price is slowing, there will still be a modest year on year increase of 8%.

An article from livabl.com supports this claim, listing Victoria as one of Five BC housing markets forecast to see the most price growth in 2022, and predicts house price increases of around 11% in the region by the end of 2022.

One thing most commentators agree on is that a sustained increase in inventory is the biggest influence on slowing or reversing price increases.

BC House Prices Forecast to Dip 3.8% Next Year

According to CTV News, RBC economists are predicting a moderate price correction in British Columbia in 2023, with average house prices expected to drop by 3.8%. They have suggested this will happen as a result of buyers being pushed out of the market as interest and mortgage rate increases shrink their available budget by up to 15%.

In turn, this reduced purchasing capacity will dampen some of the demand for available homes and reduce competition.

In their article ‘Will housing prices ever drop! Here’s what homebuyers should expect for the rest of 2022’, the fool.ca agrees with this prediction. They quote Moody’s Analytics as saying the Canadian Market likely won’t see any price correction before the end of 2023.

What Canadian Home Buyers Can Expect in the Next 5 Years

Unsurprisingly, long or even medium-term predictions are hard to come by, as no-one really knows what the impact of increased interest rates might be over time.

Narcity, in its article ‘Here’s what Canadian homebuyers can expect in the housing market over the next 5 years’ says that supply is the biggest issue affecting the housing market, and this might not change any time soon thanks to high material costs and construction labour shortages.

A recently released report by Leger and ReMax, titled– Unlocking the future, 5-year housing report, states that 61% of Canadians still see real estate as a good long-term investment, and 37% of people want to live in suburban areas, suggesting demand won’t be going away any time soon, especially for areas like greater Victoria.

It certainly seems like increasing home inventory is the only way to a market correction when it comes to price. As indicated by Storeys.com in its report, Speeding Up Development in BC Key to Calming Home Price Growth, in which it quotes a BCREA report as stating ‘If a flood of new completions (builds) were to enter the market and drive down the price of new homes, this will impact prices in the resale market (too)’

To summarize, in the short-term, Victoria, BC home prices will continue to increase but not at the same pace seen in the past year, while the chances of a longer-term correction appears to rely on more homes becoming available to buy.

Whatever the Market, Choose an Appraiser You Can Trust

At D.Fritz Appraisals Inc, we pride ourselves on staying up to date with the ever-changing housing market to ensure we offer accurate appraisals to sellers and buyers.

Based in Victoria and offering appraisal services across Vancouver Island and the Gulf Islands, we offer appraisal services to support mortgage approval, new construction valuation and inspections. Contact us today to book an appraisal.

first-time homebuyers BC

Why Are First-Time Homebuyers Struggling in BC?

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How to Break Into the BC Housing Market

Breaking into the real estate market in British Columbia is not easy. With soaring prices, stiff competition, and constantly shifting market conditions, maximizing first-time homebuyers’ purchasing power has become critically important. At D. Fritz Appraisals Inc. we strive to make the process of purchasing or selling a home less stressful for our clients by providing timely and accurate appraisals that can assist with making sound real estate decisions.

Come along as we discuss the challenges facing first-time homebuyers in BC and learn some effective strategies that can help in the journey toward home ownership. 

Victoria BC is a Tough Real Estate Market

As of July 2024, the British Columbia Real Estate Association indicates that a first-time homebuyer in BC will pay upwards of $950K. High prices combined with increased borrowing costs, have left many homebuyers delaying the purchase of their dream homes. It’s become commonplace for homebuyers to seek lower-cost alternatives such as moving away from major centers to more affordable communities or partnering with a friend or family member to purchase a house.

Though housing costs, monthly rentals, and property taxes are on the rise, solutions to housing insecurity may be just around the corner. While new government initiatives aim to decrease barriers to the housing market rollout, here are a few strategies first-time homebuyers are adopting to secure a home in Victoria BC, one of the most desirable places to live in the world.

Who Are The Average First-Time Homebuyers In BC?

It might come as a surprise to you to learn that first-time buyers in BC are getting older. Though people buying a home for the first time are made up of a diverse group of young professionals and families looking to settle down, the age range spans mainly the late 20s to early 40s. With the increase in purchase prices, it’s taking first-time buyers longer to save and young people are living with their parents longer.

Considerations Before Making An Offer 

Get Your Credit Score Up

It might not be what a first-time homebuyer wants to hear, but delaying the purchase of your first home might be the option that makes the most sense. Instead of going further into debt with a home purchase, focus on paying down any outstanding loans you might have and improving your credit score. A healthy credit score will make you more attractive to lenders.

Get Pre-Approved

It’s also important to get pre-approved for a mortgage before you start shopping around. Having less debt and a good credit score improves your chances of getting an appropriate mortgage to purchase a home. Knowing which homes are within your grasp helps significantly in the home search and also prevents the disappointment of touring homes that end up being out of your budget. 

Tax Incentives

In addition to saving and getting pre-approved for a mortgage, there are several tax incentives that first-time homebuyers may qualify for to stretch their purchasing dollars. Though the Canadian Mortgage and Housing Corporation (CMHC) has discontinued its first-time homebuyer’s incentive as of March 31, 2024, there are a number of other tax breaks that could help ease your monthly mortgage payments. 

To qualify for any of these incentives, administered through the Canada Revenue Agency (CRA), you must first file an income tax return.

  • First Home Savings Account (FHSA) – a registered plan that allows potential homebuyers to save, buy, or build a qualifying home tax-free (limits apply)
  • Homebuyers’ Plan (HBP) – allows withdrawals of up to $60K from an RRSP to buy or build a home. If the withdrawal is paid back into the RRSP within the required timeframe, it’s tax-free
  • First-Time Homebuyer’s Tax Credit (HBTC) – a tax credit of up to $1500 for eligible homebuyers
  • GST/HST New Housing Rebate – a rebate for individuals who have bought a new home or used a builder to substantially renovate their house, condo, duplex, mobile home, or floating home

Getting advice from a professional property appraiser like D. Fritz Appraisals Inc. before you purchase is an excellent idea. Professional property appraisers will let you know the home’s true value compared to the asking price and how it might change over time.

Thinking Outside The Box

A growing trend among first-time homebuyers is the increasing reliance on financial help from family and provincial and federal government programs to come up with the large down payments required. Co-owning properties with someone other than a spouse or significant other is one-way first-time homebuyers are breaking into the market. According to Royal LePage Real Estate Service, 6% of the 500 respondents surveyed co-owned their home and 41% have borrowed money from family.

In addition to cohabitation, and seeking help from the Bank of Mom and Dad, first-time homebuyers today have had to get more creative. Here are a few unusual strategies eager buyers are employing to break into the housing market:

  • Home Hacking – purchasing a multi-unit property, living in one unit, and renting out the remainder to cover the cost of the mortgage payment
  • Crowdfunding – do you have a large social media following? Then a crowdfunding platform to raise money for a down payment might be the answer.
  • Alternative Financing – seller financing, where the seller acts as the lender may be an option for buyers who don’t qualify for traditional mortgages.

While unconventional, these approaches might be just the extra help you need to get your foothold into the competitive housing market here in Victoria BC.

What Does the Future Hold?

In British Columbia, the changes to zoning laws for multi-family projects will increase the number of high-density developments. These changes should reduce the barriers to entry for first-time homebuyers and middle-income earners. For a deeper look, read our recent blog on Missing Middle, Affordable Housing.

Stronger BC, as part of the BC Homes For People Action plan, has committed $12 billion (2023 budget) over ten years to minimize the strain on homebuyers. See how your tax dollars are being spent here for a more detailed look.

Trust D. Fritz Appraisals Inc. For Fast And Accurate Mortgage Appraisals

When buying a home for the first time, one of the best ways to ensure you have prepared the winning offer is to consult with a real estate appraiser. D. Fritz Appraisals Inc. works with first-time homebuyers to provide the highest level of residential appraisal service on Southern and Central Vancouver Island. Our mortgage financing appraisals let you know the fair market value of the property you’re interested in purchasing. 

With turnaround times often coming in within 24 hours, our quick and comprehensive home appraisal reports will give your offer a competitive edge. To find out more about our mortgage appraisal services contact us online or give us a call at (250) 413-7319.

bc housing crisis

The BC Housing Crisis: What’s Being Done To Help?

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How Are Your $12 Billion Tax Dollars Being Spent?

The BC housing crisis is top of mind for anyone struggling to enter the housing market, find a rental, or hold onto their current home during these difficult economic times. Home prices, rental rates, and property taxes continue to rise, and with those skyrocketing costs comes housing insecurity. At D. Fritz Appraisals, we understand that finding an affordable home to call your own in desirable British Columbia has become a significant challenge. 

A 2023 Leger poll found that 68% of British Columbians are concerned that they won’t be able to pay their mortgage or rent, and another 93% agree that increasing rental prices have become a serious problem. 

While the BC housing crisis is hurting British Columbians, the provincial government is attempting to facilitate faster home construction and increase the number of rental properties through several initiatives. 

Read on to learn how Stronger BC has made strides to deliver homes for people more effectively.

Stronger BC

As part of the BC housing action plan, the province has committed $12 billion (2023 budget) over the next 10 years to improve the housing market in BC. 

A few of the steps the Homes For People Action Plan has taken include:

  • Fixing outdated zoning rules
  • Locating homes next to amenities such as transit
  • Fast-tracking approvals
  • Managing speculators
  • Maximizing rentals by reducing vacancy rates
  • Shifting short-term rentals to long-term rentals

1. Zoning Changes

Zoning changes are making a difference to the BC housing crisis. Here are just a few of those changes:

  • Adding a second, third, or fourth unit to your home is becoming easier. New rules and standardized designs are helping home builders speed up the construction of small-scale multi-unit housing.
  • A Secondary Suite Incentive Program (SSIP) allows qualifying homeowners to borrow up to $40,000 in the form of a forgivable loan to help with the cost of adding a rental suite to their home. 
  • Changes to the Strata Property Act will allow children to live in many homes with previous age restrictions. Fifty-five plus stratas will remain unchanged. Condo owners belonging to stratas can now rent out their vacant units as long-term rentals.

By removing zoning barriers and building more small-scale multi-unit housing, people who have been priced out of the competitive market will have a more affordable entry point. 

2. Affordable New Construction

Efforts are being made to make housing in BC affordable for everyone. The provincial government has a few strategies in place to tackle escalating house prices.

  • Programs such as BC Builds have partnered with local governments, First Nations, and non-profit organizations to develop housing for middle-income households. BC Builds leverages public, community, and non-profit-owned land to speed up development and lower construction costs. 
  • Changes to rules and regulations will allow more homes to be built near rapid transit stations like the SkyTrain
  • Over 12,000 beds will be added to schools across BC for students living away from home
  • Municipalities will have housing targets to meet to keep up with projected growth

Along with these improvements, steps are being taken to assist BC’s most vulnerable,  including rent banks for people in temporary financial crises, supportive housing for those experiencing homelessness, and more complex care housing.

Want to take a deeper dive into middle-income housing? Check out our previous blog, Is Missing Middle Housing The Answer to Victoria’s Housing Shortage?

3. Fast Tracking Approvals

A Building Permit Hub has been created to automate parts of the application process. Applications will be checked to ensure they meet the BC Building Code and Energy Step Code, minimizing delays. With online permitting, permit review and approval will be easier and faster.

In addition to the Building Permit Hub, an application portal for natural resource permits has been created. The BC Housing Taskforce will work across ministries to guide the natural resource permitting process.

The single housing application service includes permits issued by:

  • Ministry of Environment and Climate Change Strategy
  • Ministry of Forests
  • Ministry of Transportation and Infrastructure
  • Ministry of Water, Land and Resource Stewardship

Along with over forty new staff, a Housing Navigator Service is in place to assist with questions and provide guidance.

4. Minimizing Speculators

The Speculation and Vacancy Tax (SVT) aims to turn unoccupied rentals into long-term rentals in communities with the most significant housing shortages. Residential property owners will be required to declare for the first time starting in 2025. The province has provided this interactive map to help you determine if your community is in the taxable area.

In addition to the SVT, the BC Home Flipping Tax, effective January 1, 2025, is expected to discourage investors. This tax applies to homeowners who sell a residential property less than two years after purchasing. Proceeds from the Home Flipping Tax will be used to build affordable housing.

Besides the above taxes, the Foreign Buyers Tax has been increased to 20% and expanded to include more communities. 

All these changes combined hope to deter and penalize speculators.

5. Protecting Renters

Houses to rent in British Columbia are becoming fewer and further between. The province has recognized that the low vacancy rate for rentals has caused rents to soar. To help mitigate the increased costs, renters with an adjusted income of $60,000 or less can claim a renter’s tax credit of up to $400/year.

More help for renters is coming. The Short-Term Rental Accommodations Act provides governments with stronger enforcement rules to restrict short-term rentals to principal residences, increasing long-term rental availability.

To further protect renters, rental rates have been capped at 3.5%, below the inflation rate, to improve affordability.

For Expert, Detailed, and Trustworthy Valuations, Trust D. Fritz Appraisals

The current BC housing crisis may be just the impetus you need to add a secondary suite or a small-scale multi-unit to your property. Perhaps you’re interested in taking advantage of the Secondary Suite Incentive Program. Look no further than D. Fritz Appraisals Inc. 

Let us appraise your new construction or renovation to ensure your lender financing is approved. Our certified real estate appraisers provide accurate property value appraisals for homes at all stages of construction.

Serving Victoria to Nanaimo and the Gulf Islands, our expert team is approved by most banks, credit unions and private lenders. Contact D. Fritz Appraisals Inc. today, and we can tailor an appraisal report to meet your lending, selling, and appraising needs.

checklist to sell a house

Checklist to Sell a House in BC

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7 Steps to Ensure Your Home Sale Goes Smoothly

The real estate market in British Columbia is dynamic and diverse, with bustling urban centers like Vancouver and Victoria alongside picturesque rural communities. 

Whether selling a cozy condo in the heart of downtown or a sprawling estate in the countryside, having a checklist to sell a house is essential to organizing yourself, maximizing your home’s value, and appealing to potential buyers.

Selling a home can be exciting and daunting, but with the proper guidance and preparation (i.e. this Selling a House Checklist), you can confidently navigate the process. 

1. Preparing Your Home for Sale

Preparing your home for sale in British Columbia involves steps designed to enhance its appeal to potential buyers and ensure it is presented in the best possible light. 

  1. The initial phase involves conducting a thorough inspection to identify any necessary repairs or improvements that could increase the property’s value and attractiveness.
  2. Addressing leaky faucets, peeling paint, or outdated fixtures can significantly affect how potential buyers perceive the home. 
  3. Additionally, it is important to ensure that all systems, including heating, plumbing, and electrical systems, are in working order to pass home inspections.
  4. Enhancing the home’s curb appeal is another vital step, achieved by maintaining the landscaping, painting the front door, or adding welcoming touches like outdoor lighting or potted plants. 

These efforts contribute to making a solid first impression and setting the stage for a successful sale.

2. Decluttering and Organizing

Once repairs and aesthetic enhancements are addressed, decluttering and organizing are the next steps in presenting your home in its most appealing light to potential buyers. 

  • Decluttering involves removing personal items, excess furniture, and non-essential items that can make spaces feel cramped or distract from the home’s features. 
  • Organizing includes neatly arranging what remains to emphasize space and functionality, like closets, cabinets, and shelves. This step also includes depersonalizing spaces by removing family photos, personal collections, and any distinctively styled items that might not appeal to the general public.

This is an important check to check off your checklist for selling a house, as it significantly influences a buyer’s first impression and perceived value of the property.

3. Staging Your Home

Staging your home is an important part of the home-selling process. This essential element on the checklist for selling a home in BC can significantly impact a buyer’s perception, potentially speeding up the sale and even increasing the offer price.

  • It’s about creating an inviting atmosphere that allows potential buyers to envision living in the space. 
  • This might include neutralizing the decor to appeal to a broader audience, rearranging furniture to optimize each room’s flow and functionality, and adding small touches such as fresh flowers or ambient lighting to enhance the home’s appeal.

Professional staging services can be employed for those seeking expert guidance, although many sellers undertake this process. Either way, the goal remains the same: to make the home appear as attractive and welcoming as possible, thereby making it stand out in the competitive real estate market of British Columbia.

4. Getting a Real Estate Appraisal

Securing a professional real estate appraisal is critical in accurately assessing your property’s market value before listing it for sale in British Columbia. An appraisal provides an unbiased estimate of your home’s worth based on a thorough examination of the property, recent sales of comparable homes in your area, and current market trends.

Engaging a certified home appraiser ensures that you and potential buyers understand your home’s value, facilitating a smoother negotiation process. This objective assessment not only helps set a competitive price that reflects the actual value of your home but also substantiates your asking price to prospective buyers, thereby optimizing the sale process.

5. Setting the Right Selling Price

Determining the optimal listing price for your property in BC involves market analysis and making the necessary repairs and improvements to enhance its value. This strategic approach ensures that your home is appealing to potential buyers and competitively positioned.

Your appraiser can accurately assess your property’s worth, considering your area’s latest market trends and comparable sales. Additionally, understanding the psychology of pricing can play a crucial role. Setting a price below market value can generate significant interest and potentially spark a bidding war, ultimately driving up the final sale price.

Thus, carefully considering these factors is paramount in setting the right price for your home. 

6. Marketing Your Property

Engaging with experienced realtors can help effectively market your property in British Columbia. These experts have an in-depth understanding of the local market dynamics and possess the tools and networks necessary to reach a broad audience.

Sellers can leverage their expertise to ensure their property is presented in the best possible light. Real estate agents utilize various platforms, including online listings, social media, and traditional media outlets, to create a comprehensive marketing strategy tailored to their property. In addition, they have professional photographers who know how to capture your home in the most appealing light for buyers. 

7. Home Sellers Completion Checklist

After selling your home, it’s time to focus on the final steps with the home seller’s completion checklist below. This checklist ensures all necessary tasks are completed before handing the keys to the new owners, making for a smooth transaction and transition.

  1. First, confirm that all repairs and renovations agreed upon during the negotiation, including interior and exterior work promised to the buyer, have been completed.
  2. Gather all relevant documents, such as appliance warranty information, manuals, and compliance certificates with local building codes or regulations.
  3. Organize a final walk-through with the buyers. This step lets both parties verify the house’s condition matches their expectations and the sale agreement terms.
  4. Additionally, ensure utilities are scheduled for transfer to the new owners. Provide the buyers with the necessary contact information for the utility companies and confirm the final readings.
  5. Lastly, prepare to vacate the property by the agreed-upon date, ensuring the house is clean and ready for the new occupants. This final gesture demonstrates respect for the buyers and concludes your home-selling journey positively.

D. Fritz Appraisals – Reputable Appraisers in Victoria, BC

Successfully selling a house in British Columbia requires meticulous preparation and the expertise of real estate professionals to ensure you get the best price. Our firsthand experience at D. Fritz Appraisals, as the leading real estate appraisers in Victoria, BC, underscores the importance of accurate and comprehensive property valuations in this process, ensuring sellers navigate the selling process efficiently and maximize the potential for a favourable transaction outcome.

To ensure your property stands out in the competitive Victoria, BC, real estate market, consider leveraging the nearly 50 years of combined expertise that D. Fritz Appraisals offers. Our certified staff provides unmatched appraisal services tailored to your unique needs to help you accurately position your property in the market. For a consultation or to learn more about how we can assist in your home selling journey, visit our website at https://dfritzappraisals.ca/contact/ or call us at (250) 413-7319.

landscaping tips 1

5 Landscaping Tips To Increase Home Value

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Essential Landscaping Tips and Tricks

Details such as landscaping designs and quality craftsmanship in a home can make a dramatic first impression on prospective home buyers. D. Fritz Appraisals Inc. has decades of experience and ideas to help homeowners increase the curb appeal of their homes. 

Industry experts agree home landscaping provides an excellent return on investment. From simply edging your front walkway to creating a luxurious backyard paradise, carefully planning your project will yield the best results. 

Don’t overlook the power that landscaping can have in a competitive real estate market. Join us as we cover 5 standout landscaping tips and backyard landscaping designs to increase your home’s appeal (and value!) and make a lasting impact.

1. Planning Is Paramount

A simple plan keeps you on track and inspires you to dive into your outdoor transformation. Carefully considering your landscaping goals will help you keep your project on time and within budget.

Let’s start with a bit of elbow grease:

  • Cleaning up broken pots and planters, removing dead plants, trimming overgrown trees and pulling weeds will go a long way to help get any landscaping project started. Best of all, they’re free. 
  • From here, move on to repairs, like replacing rotting deck boards and loose railings, fixing anything that could raise red flags with real estate agents & prospective buyers.
  • Finally, when ready, you can tackle the more significant projects on your checklist.

For more complex aspects of your plan, hire a professional landscaping company to ensure your design is accurate and achievable. Their expertise will ensure your outdoor design is well-balanced and elevates your property’s overall style. 

Prefer to keep it simple? Here are a few straightforward backyard landscaping designs that will have a significant effect without being overwhelming.

  • Plant evergreen shrubs and low-maintenance grasses for year-round colour 
  • Create captivating borders with potted plants
  • Position cozy seating to highlight viewpoints
  • Define an eating area with a fun all-weather rug
  • Add trailing vines to a pergola or arbour for shade 

From potted plants to luxurious patios, landscaping design options are limitless. Let your budget, timeline and imagination guide your backyard renovation.

2. Plant Trees Strategically To Create A Private Oasis 

Potential home buyers highly seek trees and privacy. Why not combine them and reap the benefits of both features? Trees, specifically mature trees, are an excellent way to create low-maintenance privacy barriers that offer shade, filter the air, and, when positioned correctly, can reduce your home’s energy consumption.

When planting trees, you’ll want to keep the following in mind: 

  • Avoid planting trees too close to your house, driveway, plumbing or septic systems. This will prevent encroaching root systems from causing damage and stop branches from brushing against rooftops, siding and windows.
  • Contact BC 1 Call before you dig to locate buried power lines and save yourself from costly and dangerous power line strikes. It’s free!
  • Plant as early as possible. Some tree species require several decades to reach maturity.

Check out your local nursery or seek advice from a landscaping expert to ensure that you’re choosing native plants and trees that are low maintenance and are most likely to survive in your specific climate.

3. Brighten Your Outdoor Living Space With Landscape Lighting

Imagine your outdoor oasis backlit with soft lighting while guests gather around your patio’s fire pit. Outdoor lighting is the perfect way to extend your time on your beautiful backyard deck or patio.

Not only does it create an atmospheric entertaining area, but lighting also improves safety along walkways, stairs and steep drop-offs. Targeted lighting enhances home security, highlights architectural features and can help showcase landscaping.

With a wide range of options from solar to LED to hard-wired, there’s sure to be a light that will fit your style.

4. Give Your Front Walkway a Facelift

Potential buyers are judging a home from the moment they set foot on the property, and an attractive front walkway could make or break a future sale.  These simple and affordable landscaping tips will help create a welcoming front pathway to ensure buyer interest.

  • Ensure your pathway is weed-free
  • Replace broken pavers
  • Power-wash the grime away
  • Add fresh mulch to gardens
  • Remove dead plants lining walkways
  • Add a clean edge to walkways and gardens

If you’re looking for design inspiration, Better Homes & Gardens is a great jumping-off point for garden pathway ideas. 

5. Add An Eye-Catching Pop Of Colour

A bold pop of colour in the garden will undoubtedly draw a prospective buyer’s eye. Shrubs that bloom with brightly coloured flowers such as red or pink can be impactful.  Red is often the first colour the human eye notices and stands out nicely against a backdrop of green leaves. 

A carefully planned garden with plants that flower at different times throughout the year will brighten your walkways and garden beds year-round. Adding large plants will anchor your garden design as they are noticeable from a distance. However, don’t let the foliage overflow and crowd around doorways or windows. 

Consider consulting with a landscape designer to select flowers and plants that accentuate your home’s colour palette. For example, with the proper lighting, white, cream and pastel blooms give the illusion that the flowers glow at night.

Don’t forget the greenery, after all, what’s a garden without green? Green shrubs, grasses and tree foliage are the foundation of a memorable garden.

D. Fritz Appraisals Valuations Will Optimize Your Landscaping Dollar

A home valuation with D. Fritz Appraisals will help you determine which landscaping designs will increase your home’s value the most. Our recommended listing prices result in quick home sales and command top-dollar returns.

Serving Victoria to Nanaimo and the Gulf Islands of British Columbia, our professional appraisers prioritize understanding the West Coast marketplace trends.

Let our team of expert property appraisers, certified by the Appraisal Institute of Canada, guide your landscaping design decisions with a comprehensive, accurate valuation.

Contact D. Fritz Appraisals Inc. today for a professional and tailored appraisal report to meet your lending, selling, and appraising needs.

community features

Property Appraisal Insights: 4 Community Features that Matter

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Analyzing Community Features That Impact Property Value

When deciding what adds value to a home, today’s savvy property owner thinks beyond an impressive house amenities list.  It may surprise you to discover exactly what things add value to a home in today’s competitive housing market.  Community features and neighbourhood amenities are topping the modern buyer’s wish list. With increasing real estate prices, property owners are demanding more.

Does a neighbourhood have sidewalks, mature trees, hiking trails or a dog park? Beyond the conveniences of a house, these community features should also be considered when assessing a property’s value.

As one of Victoria’s longest-standing appraisal firms, D. Fritz Appraisals Inc. can provide detailed valuations highlighting the community amenities to look for when buying or selling a property. 

Read on to learn about which community features have the most significant impact on property values. 

What Makes A Location Desirable?

Homes in major cities where land is scarce tend to hold more value than homes in smaller towns with room to grow and develop. With that in mind, it’s also important to note that homes on larger pieces of property tend to increase more in value over time.

Let’s break down the five components of a desirable location.

  1. Community Features – Does the neighbourhood have grocery stores, a reputable school, restaurants or cafes? These are just a few essential amenities that will help boost a home’s value.
  2. Future Development And City Plans – Maybe at this very moment, the chosen community doesn’t have all of the desired amenities, but often, the future city plan includes improvements and more amenities down the road. Hospitals, civic infrastructure, and public transportation are just a few development types that could be in the works and should be considered when determining current and future property values.  At D. Fritz, we can help you research which properties have the most potential to increase in value over time.
  3. Position – Is the home on a busy road or near a loud commercial building? Is it exposed to transient traffic or popular community events? Homes in busy areas tend to be less expensive overall, and initially, their lower prices might be attractive. However, it’s wise to consider that the resale of homes in busier areas can be more difficult and lengthy. In contrast, homes purchased in quiet communities with mature trees and charming historic homes can often increase and maintain property value.
  4. Lot size – When deciding between two homes at similar price points, you need to consider where the value of a property comes from. For example, if a shiny new house on a small lot and a fixer-upper on a large lot are both on the market at a similar price, one should note that the land a house sits on will often hold the most value, making the home on the larger lot a better choice.
  5. Safety – Security measures foster trust and lower the risk of property damage. Gated communities with automatic gates or gates operated by security guards tend to have lower crime rates, which is attractive to potential buyers.

When considering what things add value to a home, we suggest including the following items on your checklist: Esthetics, Amenities, Plans For Expansion, Perceived Safety and Accessibility.

The Value Of Community Groups

Organized groups such as the Condominium Home Owner Association of BC can help maintain the character and appearance of buildings and neighbourhoods, adding value. Community groups are not just for condos. They exist in many areas, including single-family homes and townhouses. Some of the community features and benefits that an organized community group can offer include:

  • Neighbourhood watch
  • Clean-up programs
  • Amenities such as fitness centers and swimming pools
  • Maintenance, snow removal, and landscaping services
  • A platform for social events and activities
  • A mediator for disputes

While the limitations of a homeowner’s association may deter some buyers, a well-managed HOA can be an asset and help boost a home’s value.

How’s Your View?

It comes as no surprise that an unobstructed ocean view will increase property value. But did you know that even a low-quality ocean view can add significant returns to your investment? 

Lake, river, and mountain views are also in high demand. A nice view combined with community features such as water access, an impressive house amenities list or outdoor recreation opportunities become even more enticing to a future buyer.

Look for property information and trends at BC Assessment.

Parks And Playgrounds 

Neighbourhoods with clean, accessible green spaces for seniors, kids, families, and pet owners tend to be highly desirable, allowing all community members to safely access the outdoors. Parks impact communities in several positive ways:

Providing a Gathering Space

As more people spend money on their pets, homes near dog parks and walking trails have become a huge draw. In neighbourhoods with small or no yards, buyers will spend more to live near these community features. They provide the space for community members to congregate for everything from family picnics and birthday parties to school events. Want a space to play ultimate frisbee, stargaze, bird-watch and everything in between? Pick a neighbourhood with a park or playground.

Filter The Air

Mature trees do much more than filter the air. They supply oxygen, improve air quality, and provide shade and wildlife habitat. Well-landscaped, water-smart yards with defined outdoor spaces can boost curb appeal.

Encourage Movement

Walkability scores are now commonplace in real estate listings and are a new factor for evaluating properties. Homes in walkable neighbourhoods with desirable community amenities usually have higher property values. Walking just twenty minutes per day can positively impact health and quality of life by lowering stress, boosting moods and increasing creativity.

With outdoor spaces in high demand, we should consider them as thoroughly as a house amenities list when determining which property has the most value.

D. Fritz Appraisals Inc. – Take The Guessing Out Of Valuing Property

D. Fritz Appraisals Inc. is your home for professional real estate appraisals for properties in Victoria to Nanaimo and the Gulf Islands of British Columbia.

Let our team of expert appraisers, certified by the Appraisal Institute of Canada, guide you in highlighting the community features you’re looking for with a comprehensive, accurate valuation.

With outstanding service dating back forty years, D. Fritz Appraisals Inc. can meet all your appraisal needs. Contact us today for a quote.

home appraisal cost

8 Home Appraisal Cost Factors in BC: What You Need to Know

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What Can Impact the Cost of a Home Appraisal

Whether you are buying, selling or looking to refinance your home, you will most likely need a home appraisal. 

While an appraisal fee is something you will need to add to your budget or closing costs, the good news is the cost of a home appraisal shouldn’t be a deal breaker.

A home appraisal is a key part of the financing portion of any new or refinanced mortgage or loan agreement. It is something most financial institutions will insist on before releasing funds.

It’s worth knowing that some factors can impact your final home appraisal costs. According to the Appraisal Institute of Canada, the house appraisal cost is generally determined by the complexity of the review and the length of time it takes to complete it. An appraisal fee is NOT determined by the declared value of the property being appraised.

Below, we’ll explore some of the factors that may cause your appraisal fee to be higher than average. Read on to find out why appraisals are important, who pays for them and how much you are likely to pay in British Columbia.

What is an Appraisal, and Who Pays for it?

A home appraisal is a legal document that determines fair market value for a property. The appraisal process includes an inspection of the property and research of comparable properties in the local area by a qualified professional.

Appraisals are not only important for the house-buying process, but they are also used for financial loans, property tax appeals and some legal processes.

During the home appraisal process, the appraiser reviews the structure of the property, including size, number of rooms, exterior amenities and the lot the property sits on, amongst other things. For more information on what a home appraisal inspection consists of and how value is determined, see our previous blog post – ‘Home Appraisals – What They Look For.’

Usually, the buyer will be responsible for the cost of home appraisal with the fee considered part of the closing costs. However, if the appraisal is for refinancing, the current owner will be required to pay. Occasionally, a seller will foot the bill if they are looking to incentivize the sale or demonstrate the potential for subdivision of the plot.

If you need to hire an appraiser, it is acceptable to get quotes from several appraisal companies, especially if you have a particularly large, unique or complex property. Look for a company like D. Fritz, with an experienced and qualified professional team of appraisers that is familiar with your community.

8 Home Appraisal Cost Factors

According to Nesto.ca, the average cost of a house appraisal in BC is usually in the region of $350 to $500 plus tax, though there are several reasons why your final fee may end up higher than that. Factors that can increase the final bill are generally related to the time and effort required to produce the appraisal report and include:

  1. Size of property – Generally, the more time an appraisal takes the higher the cost can be, so it stands to reason that a larger property may result in a higher fee than a smaller one. For example, a 6,000 sqft home with a large garden will take longer to review than a 1,000 sqft condominium.

Equally, a multi-family property will cost more to appraise than a standard single-family home.

  1. Complexity/detail of property – A home with intricate architecture or an unusual layout will take longer to appraise and will have fewer market comparables to refer to. Generally, any additional time spent assessing complex homes will lead to an increased fee.
  2. Location – Easily accessible homes in residential communities are likely to cost less to appraise than those that are hard to reach. It is harder to find comparable recent sales for homes in more remote areas, so additional research may be required to conclude the correct valuation. Additional travel expenses may also be added if the home is outside the appraiser’s usual area.
  3. Season – Luckily it doesn’t snow too often on Vancouver Island, but severe weather or heavy snow can increase the time it takes to perform an appraisal and therefore impact the cost. 
  4. Condition of the home – If the house has any structural issues, obvious signs of damage or disrepair or is extremely cluttered, it will take longer to perform the appraisal than it would in a well-kept property. 
  5. Unique features – Is the property on the waterfront with a dock attached? Does the land have subdivision potential or is the home designated a heritage property? Any ‘out of the ordinary’ homes may take longer to review and compare to ensure the final report is accurate potentially resulting in a higher fee.
  6. Additions and upgrades since previous appraisal – If significant additions, such as an extension, home lift or creation of a legal suite, have taken place since the property was last appraised, it will take longer to assess. This is because the appraiser has to inspect any upgrades thoroughly to determine their impact on the final valuation.
  7. Short notice requests – Sometimes appraisals are needed very quickly to accommodate an urgent purchase and avoid closing delays. Some appraisers may charge an additional fee for short notice or fast turnaround reports.

How to Minimize Additional Costs for Home Appraisals

There are some things you can do to help your appraiser complete a timely assessment and reduce the chances of additional fees. For example:

  • Plan ahead – but not too far. Plan early enough that you avoid rush fees and have time to shop around for your appraiser. But remember, an appraisal report is only considered to be accurate for about 3 months, so don’t do it too soon and risk having to get it re-done.
  • Be prepared – As the homeowner, you can help make the appraisal process faster by providing all relevant and required information about the property at the start of the assessment.

D. Fritz for Appraisals in Victoria, BC

If you need an appraisal for a home in southern or central Vancouver Island, look no further than D. Fritz Appraisals Inc. Our experienced, professional team has over 40 years of experience in delivering expert appraisals throughout the area.

Whether you need an appraisal for a home purchase, re-financing or settling an estate or division of assets, our team will be glad to help. Call us today, and we’ll be glad to give you a quote for our appraisal service.

renovations that increase home value

Renovations That Increase Home Value in BC: Our Top 8 Picks

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Major Home Renovations & Home Appraisals:  What You Should Know

Are you planning house renovations and want to know the best home improvement investments? Or maybe you are planning to sell your house and are wondering about renovations that increase home value the most.

Whether you are planning to sell in the near future or not, most people want to be reassured that any major renovations they invest in will be reflected in an increased home valuation.

While any renovations that improve the function or look of your home are a good idea, some have a better return on investment value than others. If you are looking to sell quickly or have a limited budget, it is worth researching the renovations that increase home value the most.

As Vancouver Island’s home evaluation expert, D. Fritz Appraisals Inc. knows which renovations can add market value – and which will make your home more valuable to you but won’t necessarily increase the selling price.

Read on for our top 8 picks for renovations that increase home value in BC.

How is Home Value Measured?

When considering home value and how to increase it, are we simply talking about market sale price? According to the Canadian Appraisal Institute, value can be recognized in three ways:

1 – The Value of an Increased Sales Price – Renovations are done primarily to maximize value and profit from a sale.

2 – The Value of Getting to Enjoy or Benefit From a Renovated Space – Renovations are done primarily to improve your lifestyle in the home for the time you live there, which may also add market value in the future.

3 – The Value of Maintaining Your Property – Renovations that keep your home in a condition where it retains its market value. 

If we focus on increasing the market sale price, the value of renovations is usually measured by the possible Return on Investment (ROI). 

  • For example, if you spend $20,000 on a renovation and the valuation of your home goes up by $20,000, that is a 100% ROI. On a home valued at $500,000, that would be a 4% increase in home value.

Renovation ROI will be influenced by the current value of your home, your local housing market, how soon you sell after renovations and how much you spend.

A good home appraiser can help you decide what home renovations will provide the best value return on investment in your area.

Our 8 Top Picks for Renovations That Increase Home Value

When deciding what renovations to complete, consider the following 8 home renovations which have historically proven to bring the biggest return on investment:

  • Kitchen Remodel: 75% – 100% ROI 

At the heart of the modern home, a kitchen can make or break a sale. A functional and neutral refresh will increase value and saleability. Consider new appliances, backsplash, cabinetry or hardware. 

*Unless you plan to live with it for a while, don’t go too high-end, as the return will not be worth it. 

  • Bathroom Refresh: 75% – 80% ROI

Buyers appreciate a fresh, clean and modern bathroom. Consider adding double sinks, upgrading the shower unit and refreshing the paint for the best return on investment.

  • Interior and Exterior Painting:  60% – 75% ROI

Fresh paint gives a high return and increases buyer appeal. Keep colours neutral inside and in keeping with your neighbourhood outside.

  • Structural Upgrades: 75% ROI

Buyers will be put off homes that are badly maintained. If your roof, windows or heating system needs upgrading, prioritize those over cosmetic changes. 

  • Flooring: 100%+ ROI

Remove wall-to-wall carpeting and replace worn flooring for maximum ROI. No need to install expensive hardwood. Buyers are looking for flooring that is clean and easy to maintain.

  • Energy Efficient Additions: 50% – 75% ROI

Such as upgrading your heating and cooling or adding solar panels. Anything that reduces energy use and costs will attract buyers and increase value. For the best ROI, enjoy living with these upgrades for a few years before you sell to reap the benefit of lower bills. 

  • Create More Living Space: 75% – 100% ROI

Buyers are looking for the most usable square footage for their money. Add extra space with an addition or basement renovation, but keep the finish neutral so buyers can choose how to use it. If you remain in the home, a basement rental suite can help you recoup the costs of the reno.

  • Curb Appeal: 80% – 90% ROI

First impressions count. Add value by painting or replacing your garage and front doors. Clean siding and replace any damaged sections.

TIP: Keep receipts and details of any renovation work done to prove the value and quality of the changes.

If your time and budget don’t allow for larger scale renovations, but you want to do something to increase both market value and saleability, this list of 11 easy renovations to increase the value of your home from HGTV star Mike Holmes is a good starting point.

How Your Appraiser Can Help You Choose the Best Renovations to Increase Value

Property appraisers understand the local housing market. They know what investments are giving good returns, can help you understand what your home may be missing compared to local comparative properties, and can give you an idea of what the value may be once improvements are made.

Appraisers can also provide post-renovation evaluations – so you can see what value you’ve added to your home from the work you’ve completed.

In addition, if you’re looking to get financial support for major renovations through a bank loan or mortgage extension, appraisers can provide the valuation your financial lender may require.

Call D. Fritz for Your Appraisal Needs

At D. Fritz, we pride ourselves on being on top of the local housing market, including understanding what buyers are looking for and what renovations will add value and attract buyers’ interest.

Our team can help with valuations for home renovations, mortgage financing and new construction, as well as for the division of assets and estate requirements.

We offer professional real estate appraisals throughout southern and central Vancouver Island from Nanaimo to Victoria and the Gulf Islands.

Contact us today to order an appraisal or for more information on our services.

 

missing middle housing

Is Missing Middle Housing the Answer to Victoria’s Housing Issues?

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Uptake of the Missing Middle Housing Initiative is Off to a Slow Start

Victoria, BC, has been hailed as ambitious for its adoption of the progressive Missing Middle Housing Initiative in early 2023.

The initiative, which was approved in January after more than two years of research and consultation, aims to make it easier for developers to create multi-home developments that bridge the gap between apartments and single-family homes. The ultimate goal is to enable young families that are currently priced out of the single-family home market to achieve the dream of home ownership and remain living in and contributing to the city.

The Missing Middle Initiative removes the requirement for City approval for multi-unit plans on land previously zoned for single-family homes only, streamlining the process for these types of development to create a gentle density increase within residential areas.

As BC Government looks to introduce similar rules province-wide to help with the ongoing housing shortage, it seems, on paper anyway, that this initiative could make a positive impact on increasing the variety of housing available to buyers.

So why, a few months into the initiative, have no missing middle housing projects broken ground?

As Victoria’s premier appraisal service, D. Fritz prides itself on being up to date with all the housing market changes and developments in Greater Victoria. Missing middle housing promises to increase the pool of housing options for families who otherwise may feel they have to move away to achieve homeownership.

Read on for more information about what missing middle housing is, what the missing middle initiative aims to achieve, and what’s next for the missing middle in Victoria, BC.

What is Missing Middle Housing?

Missing middle housing is defined as a range of multiple-unit homes that are located in and are compatible with existing single-family home neighbourhoods.

Missing middle houses can be multi-plexes (duplex, triplex or fourplex) or townhome developments and are designed to bridge the gap between apartment living and single-family homes. These types of homes provide more diversity in the range of homeownership options, especially for young families who cannot afford to get into the single-family home housing market in Victoria.

According to the City of Victoria’s Missing Middle Housing Initiative, data shows that young people are leaving Victoria when they choose to start a family, in part because they cannot find affordable housing to meet their changing needs. By creating low-level, sympathetic density infill, missing middle housing will provide these families with the opportunity to enter homeownership and remain in the city.

Missing Middle Housing Initiative Purpose

The Missing Middle Housing Initiative was approved in January after two years of consultation, with the aim of making it easier to build alternatives to traditional single-family housing in Victoria.

The purpose of the initiative and its policies, which came into effect in March of 2023, is to:

  • Make it easier and faster to build multi-unit developments on what was previously single-family zoned land by removing the requirement for re-zoning applications.
  • Protect heritage or future heritage buildings by allowing low-density in-fill on the same plot.
  • Provide more housing choices within walkable, family-oriented neighbourhoods without impacting the aesthetics and feel of the area.

The initiative allows house-plexes, corner townhomes and heritage in-fill housing to be built on traditional single-family plots. Up to 6 houses can be built per plot without the need to re-zone. Missing middle developments must meet certain design and bylaw criteria, but overall the process will be faster and cheaper for developers.

Is the Initiative Showing Signs of Success?

The City of Victoria council has admitted that take up of the initiative has been slow so far, with some early feedback suggesting that this is because the cost to purchase land and develop multi-unit homes is too high for the projected return. It remains quicker and easier for developers to replace an older single-family home with a new one and also make a bigger profit than they would with a multi-home development. While this remains the case, missing middle housing may never expand as hoped.

However, while costs seem prohibitive currently, there are signs that developers want to divert to this type of project. Some recently completed multi-family developments, such as this one in James Bay, are positive examples of infill projects similar to those being encouraged by the Missing Middle Housing Initiative. 

This particular project was started before the initiative was passed and, as such, would have gone through many more bureaucratic loops before approval than would be required now. As the Missing Middle Housing Initiative takes a lot of these steps away, the future could be positive for developers with forward-thinking ideas like this.

What’s Next for the Missing Middle?

With the principle behind missing middle housing being lauded as one solution to the housing crisis and the likelihood of provincial uptake of some parts of the initiative, it is unlikely this approach will be completely rescinded. However, some additional changes and support may be required on a local and provincial level to help ensure its success.

Victoria City Council is already planning a review of the initiative, and further consultation with developers will likely be required to ensure processes and procedures support them in choosing to invest in and build this type of housing.

In June, Council also passed a motion tasking staff to track city policies that disincentivize the building of new ‘attached homes’ rather than single-family homes. This work will overlap and possibly feed into the future development of the Missing Middle Housing Initiative.

D. Fritz Appraisals for All Your Home Appraisal Needs

Whether you are looking to sell a home, purchase a new home, or are considering investing in a missing middle development, D. Fritz can help with all your appraisal needs.

With over 40 years of experience in the Victoria housing market, we can provide accurate and current valuations based on what the market is doing now and where it might go in the future.

We provide professional real estate appraisals from our home base in Victoria to Nanaimo and the Gulf Islands, and our team is approved for most banks, credit unions and private lenders. Contact us today to request your real estate appraisal.