The Price is Right!

When you are ready to sell, determining what price to offer your home to buyers at can be much like playing The Price is Right with Bob Barker.

If you ask 4 people what your home is worth, you will get 4 different answers, no doubt one so low you will scoff at their judgement and one so high you only hope they are right.

In our current market, pricing your home right when you put it on the market is very important. The buyers who have been looking for a home, and likely have made many offers without success, have seen all the homes comparable to yours, and are very educated on price. When they see a home come on the market listed much above current market value, they tend to not even consider it. They believe either the seller is being unrealistic, or that they have time to wait for the price reduction.

It can be difficult as a home owner to look at the prices being paid for homes, and not think you should list yours at the price just attained by the house down the street. Well priced homes are currently attracting multiple offers, which tends to drive the final sale price up, sometimes to levels not previously achieved by similar homes. At times, if a property is the only home available, and has very desirable features, it will obtain an unrealistically high selling price, only because it is the only one available.

When a REALTOR® provides you with a Market Evaluation of your home, they take into consideration what has sold, what is currently available, and what has been rejected by the market. They have the expertise and knowledge to look at the sale prices of properties, and the events surrounding the sale to determine how they compare to your home. Combining this knowledge with information regarding other properties that are currently for sale (your competition) and also considering properties that have been on the market for a longer period of time (seemingly overpriced) they can provide you with a recommended range in which to offer your home for sale.

Many sellers are concerned that the suggested price range is too low. They see a similar house that sold for maybe $50,000 more that the price being recommended to them. The other home may have received 15 offers, driving the price higher. As a seller, you must price your home to attract the competitive offers in order to realize the highest sale price. Pricing at top dollar may very well discourage a number of the potential buyers of your home, and possibly make competition unlikely.

If you are considering selling your home, and would like an honest opinion and marketing plan, call one of our Coldwell Banker Community Professionals representatives. They will provide you with a comprehensive evaluation, and help you make the right decision.

Welcome Spring!

The calendar says Spring is here, even if the weather doesn’t.

Traditionally Spring is the time of year when new real estate listings flood the market, and everyone gets busy. The market this year has been going at a record breaking pace, but in spite of that, I hope that home owners will get excited by spring, and decide to put their homes on the market.

We have been experiencing an unprecedented shortage of homes for the number of buyers looking. Many feel the only way to correct the shortage is to have the government intervene, enacting more laws and restrictions.

These actions in the past year seem to have hurt the very buyers they were trying to help. New mortgage rules have made it more difficult for first time buyers to obtain a mortgage, only adding to the problem of soaring prices, and making it harder for them to save for the downpayment necessary.

There is talk of the government placing a foreign investor tax on those buying in the Toronto market, to help ease the inventory shortage, but those in the market say it’s not foreign investors causing the problem.

Many experts says that the only way out of the housing shortage is for more new homes to be built, in recognition of a slow down in new home construction last year.

Perhaps the seemingly easiest solution is for us all to get on with life. Many home owners I speak to are waiting. Waiting to see if prices go up. Waiting to see if more homes will come on the market for them to select from. Waiting to see if interest rates are going up. All these events are likely going to happen… the unknown is just how soon. If everyone who has been considering moving put their home on the market, perhaps our greatest issue would be solved – lack of properties to buy.

If you would like to find out if now is the right time for you to make a move, call one of our Coldwell Banker Community Professionals reps. They will be glad to help you make the right decision.

Oh No! I Sold My Home!

ce4a9f30cb42bf341ab2aa815aed136a_real-estate-sold-sign-lindsay-house-sold-sign-clipart_1000-750Are you afraid to sell your home in case you can’t find one to buy?

This seems to be the impasse  many potential sellers are stuck at. The market right now has such a low inventory of homes to buy, many people are putting off selling, even though they have many reasons that now would be a good time to sell.

If you are in this position, you have a lot of things to consider.

By not moving, are you putting off plans that would be better for your family?
Financially, is now a good time to sell?
If you haven’t sold your home, can you buy your dream home if it came on the market tomorrow?
If you can’t find your dream home, are you willing to rent a property until you find the right one?
Are you tired of carrying the household costs on large home that is more than you need?
Can you afford to own two homes?

If you are being held back by one of these concerns, or another not mentioned, take some time and determine whether there is a answer should you sell your home and become “homeless”.

Are you fortunate enough to have a second home where you could live temporarily while waiting for the right home to come on the market?
Are you prepared to rent accommodation while looking for the right house?
You might be able to negotiate a long closing on your current home, to allow you time to find the right home.
Do you have family members with extra space for you to stay with if the need arises?
Is there another solution which would enable to you move now?

Not everyone is prepared to put their home on the market without knowing where they are going next, but maybe you are.

Being homeless is not as bad as you might think. I sold my home last summer, and am currently renting a home while I look for just the right property. Is it perfect?, no, but it provides the freedom to be in control when I do find the right property. As a buyer with no home to sell, and the ability to match most any closing date a seller might request, I am in a good negotiating position.

So, are you ready to put your home on the market? Be sure to call one of our Coldwell Banker Community Professionals to discuss what your options are.

Is Now a Good Time to Buy a Home?

arraignment-clipart-question-mark

There is no “one size fits all” answer to this question. It is not always a good time to buy depending on your stage in life and your future plans.

The recent changes in the mortgage qualification rules have either taken some buyers out of the market entirely, or reduced the price of the property they are qualified to buy. This has prompted some buyers to become creative, whether by having family or a friend go on title of their new property, and be included in the mortgage calculation, or by borrowing money to increase the downpayment to over 20% to avoid the higher threshold of qualification. Both of these approaches have their risks, and should be carefully considered before using one of them to buy a home. It is possible that now is not the time for you to buy. Perhaps taking more time to increase your downpayment, or time to consider what you really need in your new home is the right approach. It is possible that a lower price home may be the right fit for you right now.

Some ‘experts’ are predicting that home prices will ‘adjust’ (as in decrease) due to the new mortgage rules, as fewer buyers will be able to qualify at the current price levels. We have not seen this happening in the market as of yet, but it is possible. We are seeing less competition for homes compared to the frenzy we saw through the spring and summer.

If you are fortunate to not be subject to the rules for less than 20% down, now may very well be a great time to buy a home. If you are at the stage in life of downsizing, you can maximize your sale price on what is likely your biggest asset, and reinvest in a lower price home. If you are upsizing, it is hard to beat the current mortgage rates that are being offered. One of the big banks just increased their mortgage lending rate, but we have not seen any others as of yet. The Bank of Canada has indicated that they may even decrease the bank rate, which might result in lower still mortgage rates (hard to imagine!)

If you are an investor, with mortgage rates where they are, and the number of people in the rental market, now is a great time to buy that duplex/triplex etc.

As you can see that answer to the question I posed is perhaps. There are many things to consider. How long do you intend to live in the home you are buying? Are you starting a family? Are you retiring soon. These are just some of the questions to ask yourself. The best way to find out what is the right answer for you is to call one of our Coldwell Banker Community Professionals and discuss your current wants and needs, and perhaps even more important discuss your future plans. They will help you determine what you can afford to buy, and if it is right for you. It costs you nothing, but may very well save you a lot of heartache in the future.

The Grass IS Always Greener Over the Septic Tank – Erma Bombeck was right

 

grass-is-always-greener

Most home owners may not have ever experienced this phenomenon, but those who have lived with a septic system know this is a fact…

If you are thinking of selling your home, curb appeal is especially important, as many buyers make up their mind whether they even want to look inside a home by driving past first. Whether you live in the city or on a rural property, keeping up your lawn and gardens can be a challenge, especially during summers like we just enjoyed.

Buyers are looking for well cared for homes, with lush, cared for grass. If you have gardens, they like to see them well tended, weeded, edged up, perhaps with a mulch cover to discourage weeds. Most hope for a finished driveway, whether paved, concrete, or interlocking block, that has been well maintained. In a rural setting, a gravel drive is common, but it still must be cared for, with a good gravel cover, distinct edges and no weeds.

If you are a true gardener, your efforts will garner attention. Many buyers love to see the gardens, and hope to become proficient at taking care of them. Buyers especially like to see perennial gardens, believing them to be lower maintenance.

Your lawn can be a big seller. That lush grass you can find over the septic tank appeals to buyers. If you can’t count on the septic bed to make your lawn look pretty, and you are planning to sell your home, prepare to keep your lawn well watered. You don’t need a weed killer company at your home, but regular maintenance to keep the weed population under control is necessary.

If you have a rural home, the lovely expanse of front lawn can make buyers anxious to see more…

If you are looking for more tips on how to make your home ooze curb appeal, speak to one of our Coldwell Banker Community Professionals. They have lots of tips and tricks up their sleeve to help you get top dollar for your home.

At Coldwell Banker Community Professionals, we don’t strive to be the biggest, we strive to be the best.

Has the Real Estate Market Run out of Steam?

ee080e912907e1b1fadad2edfff41c39I believe we are experiencing a traditional August. We just have forgotten what that is!

It seems that people always believe that the spring market is the hottest, the summer market is the slowest and the fall market runs until December when everyone quits looking for houses as they prepare for the holidays. I think this year is falling into a category of its own.

Our spring market started out brisk, with lots of buyers and not enough homes to sell. We thought it was a pretty strong sellers market and that buyers would need to be aggressive to be successful in home buying. In the back of everyone’s mind was that the thought that the market would ease up a bit after the initial rush, and buyers would find what they were looking for… We are still waiting for the market to ease up a bit and provide properties for all these buyers who are waiting.

Spring was not our hottest market. So far this year, and we have yet to see our fall market, the May, June, and July markets were crazy. Prices are up and the number of available homes is decreasing. Sellers have hesitated to put their home on the market fearing that they will not be able to find a home themselves…

This August has provided the slowest market so far this year, letting everyone catch their breath. I think maybe the buyers are worn out, and have taken the last few weeks of summer to regroup and prepare to do battle in the fall market.

As parents prepare to get their children back to school, REALTORS® are busy helping sellers prepare to put their homes on the fall market, and helping buyers fine tune what they are looking for. I don’t know what the fall market will bring, but if the first part of the year is anything to go by, we should be in for a busy time!

If you are considering buying or selling, call one of our reps at Coldwell Banker Community Professionals. They are well prepared to help you meet your housing needs. Find out how our Ultimate Service Guarantee can provide you with peace of mind in your real estate experience.

Flip or Flop

Flip-or-flopThere’s lot’s of money to be made flipping homes!

That may be true if you know what you are doing. HGTV makes it look easy… buy that neglected home, rip out the kitchen and bath… throw down that hardwood floor and you can make thousands, if not hundred of thousands of dollars…

It’s not that easy, as many renovators will tell you. In a hot market, the first challenge is to find that property listed at the right price, in the right neighbourhood, that you can renovate quickly, and not have to enter into a bidding war to purchase. Nothing to it, right?

Flipping houses truly comes down to the math. What you buy it for, plus the cost of renovations, plus the cost of carrying it while renovating, plus the legal and real estate fees, and plus your profit. The last item is the most important one. You cannot be flipping houses without having a reasonable profit built in. And keep in mind, that profit is taxed as income when you are in the business of flipping homes.

Still think flipping homes is a good idea? Call one of our Coldwell Banker Community Professionals, and have them help you find the right property at the right price to renovate.