Seller

Real estate sections of public libraries abound with books on selling you home privately. In addition to pointers on sprucing up your home for maximum sale ability, they provide homeowners with tips on the “psychology of showing a house.” Yet, most homeowners choose to sell through a REALTOR®.

Selecting a REALTOR®

Finding the right real estate representative takes some time and care. A good place to start is in your neighbourhood. Check “For Sale” signs to see which brokers are doing business in your area. Ask them about their track record, their knowledge of selling prices in the area and why you should list with them.

A REALTOR® will give you a detailed comparative analysis of features and prices of houses selling or sold nearby. This helps determine a realistic price.

It’s important that you feel comfortable with your REALTOR®. This person will probably become part of your life for a couple of months popping in with clients or organizing open houses.

Developing a plan of action

Once you’ve decided on a REALTOR®, you’ll want to know what his or her marketing plan will include. How often will there be open houses? Will he or she be listing your property on a Multiple Listing Service? How does he or she plan to advertise the house?

You’ll also need to decide whether to list exclusive with one firm or go with the MLS? Generally, the more people that see your house, the likelier it is to sell quickly at the price you want.

Many sellers are anxious to sell their homes quickly. These sellers usually choose the MLS system over an exclusive listing because the property gets greater exposure.

Professional real estate salespeople know how to separate the “lookers” for the “buyers”. They can determine a qualified buyer. A couple’s income, lifestyle and the date they must purchase helps establish their housing requirements.

Whether or not your home shows well to prospective buyers can make a difference in terms of how long it stays on the market, and what it sells for. REALTORS® can also give clients tips on how to improve their home to create a good first impression. Fresh paint, new wallpaper and flowers are all elements in the sales effort. Sometimes, rearranging the furniture and taking out extra pieces is all that is needed.

Real estate professionals are experienced in arranging financing and closing deals. A REALTOR® can assist in negotiating a better offer act as a mediator between buyer and seller and draw up a legally binding contract.

A professionally trained REALTOR® may be able to sell your home quicker at a better price than you could get privately because he or she has greater access to potential clients. Furthermore, you’ll be able to go through the transition period with less worry and inconvenience.

Source: Ontario Real Estate Association (OREA)

Mortgage Information

Amortization, fixed rate, variable rate, high-ratio, principal. If you’re mystified by mortgage-speak, you’re not alone. Here’s a crash course in mortgage basics to help you make smart decisions about one of the biggest investments you’ll ever make.

Choose a Term That Works For You

A term is a period of time (from 6 months to 10+ years) during which you pay your mortgage at a specified interest rate. To figure out what term is right for you, decide how comfortable you are with the volatility of the market and how important a stable mortgage payment is to your budget.

Long term:

Right now, interest rates are low. If you’re afraid they’ll go up and you want to lock in at a low rate, or you want to know exactly how much you’ll be paying every month, go for a longer term like 5, 7 or 10 years.<

Short term:

If interest rates look like they’re falling, this may be a better bet. If you’re comfortable with payments that may fluctuate somewhat, your best bet is a shorter-term mortgage (i.e. a 6-month variable rate mortgage) that lets you take advantage of low rates, but also has the flexibility of allowing you to lock in and convert to a longer-term mortgage whenever you want.

Decide On an Amortization Period

The amortization is the number of years (15, 20, 25) it would take to pay back the loan based on a fixed payment amount. The longer the amortization, the more interest you’ll pay. You can shorten your amortization by increasing your payments, paying lump sums towards the principal, or renewing your loan at a lower rate.

Decide On a Fixed or Variable Rate

Fixed-Rate Mortgage:

This means you pay a set amount every month for the term of your loan. Whether posted interest rates rise or fall, your payments won’t change.

Variable-Rate Mortgage:

This means your interest rate fluctuates with your lender’s prime lending rate. It offers more flexibility, but also more risk. Typically, you pay a set amount every month, but when rates fall, more cash goes to principal, which reduces the interest you’ll have to pay in the long term. If rates go up, however, your set payment may not be enough to cover interest and principal, so you could end up having to pay more.

Closed End vs. Open End Mortgage

Open End Mortgage:

With an open end mortgage you can repay your loan any time without penalty. So if you sell another property or come into some extra money, you can pay down your principal whenever you want. Interest rates for open mortgages tend to be higher than for closed, and terms are typically shorter.

Closed Mortgage:

A closed mortgage is not as flexible. If you decide to pay off a big chunk of your principal, you could incur a penalty. However, even closed mortgages have pretty generous prepayment options (usually up to 20% of the principal per year).

Decide How Often You’ll Make Payments

You can pay monthly, bi-weekly or weekly. Here’s the difference:

Monthly: 12 payments per year
Bi-Weekly: 26 payments per year
Weekly: 52 payments per year

That’s the equivalent of 13 payments a year instead of 12. You probably won’t notice much of a difference in your cash flow, but you’ll pay off your mortgage faster, and save yourself thousands in interest.

Will You Get a High-Ratio or Conventional Mortgage?

This depends on the size of your down payment. A conventional mortgage is a loan that covers up to 75% of the purchase price, and doesn’t need to be insured against default. A high-ratio mortgage is anything over 75%, and must be insured by the Canada Mortgage and Housing Corporation (CMHC) or GE Capital. You can add your insurance premium (a percentage of your loan amount) to your mortgage or pay it on closing.

Get Pre-Approved

Find out how much you’re eligible to borrow before you start looking. You’ll know exactly how much you can afford and you’ll be guaranteed the interest rate that’s available at the time of your pre-approval for 60-120 days. If rates go up, you won’t have to worry about paying more and if they go down, you get the lower rate. It’s a win-win, it’s free and there’s never an obligation to go with that lender.

Shop Smart

Now that you’re armed with some mortgage knowledge, you’ll be able to choose a loan that best meets your needs. If you need more info, most lenders have helpful information on their websites or you can always ask your REALTOR® for help understanding the ins and outs of mortgages.
Happy mortgage hunting!

Callout: “If you’re mystified by mortgage-speak, you’re not alone.”

Trademarks owned or controlled by The Canadian Real Estate Association. Used under licence.

The Importance of a Home Inspection

So, you’ve found a house you love, great backyard, gleaming hardwood, and the kitchen of your dreams; but what about the furnace? The wiring? Leaks in the basement? Before you buy, make sure you have the home inspected. No matter how experienced you are as a homeowner, it’s the best way to make sure you really know what you’re getting into.

A home inspection will give you the information you need to make an informed decision. The inspector will determine the condition of the house you’re thinking about buying and will let you know if there are any problems. The great thing is, the inspector doesn’t care if you buy the house or not, so you can rest assured that he or she is providing you an unbiased report. If you have to make an offer before having a home inspection, make it conditional pending a satisfactory inspection.

If there are any problems, you have three options:

1. Walk away and find something in better condition
2. Use the results to negotiate a better price
3. Give the seller a chance to fix the problem

What Happens During a Home Inspection?

You will meet your agent and the home inspector at the home you’re thinking of buying. The inspector will take about 3-4 hours to carefully inspect the entire house for structural, mechanical or other issues. He or she will examine everything from the roof to the foundation and everything in between, including heating and air conditioning, plumbing, electrical, insulation, roof, windows and doors, walls, ceilings, attic and basement. You may accompany the inspector as he or she goes through the home – it’s a good way to get to know the home quickly.

The inspector then prepares an inspection report that outlines problems, breaking them down into major repairs that need to be done right away and areas that will need attention in the future. He or she will provide accurate cost estimates for each repair, will highlight what is in good standing, and will provide you with an idea of what kind of maintenance you’ll need to do to keep the home in good condition. Be sure that you ask for a detailed report that’s written in a narrative style, never accept a verbal report or one that’s just a checklist.

How Much Does It Cost?

Most inspections cost between $250 and $500. Think of it this way; a few hundred bucks could save you thousands in home repairs. It’s a pretty small price to pay for significant peace of mind.

How Do I Find a Good Inspector?

Look for a reputable, qualified, established company that; can provide references from previous customers, is fully insured and offers guaranteed inspections. Inspectors should be licensed in building-related fields such as contracting, architecture or structural engineering. Your REALTOR® can recommend a reputable, objective inspector at your request, or you can find one through a quick google search.

When you’ve fallen in love with a house, it’s easy to overlook any faults. Save yourself any future heartaches (and headaches), get the home inspected so you can be sure you stay in love for years to come.

Trademarks owned or controlled by The Canadian Real Estate Association. Used under license.

Smart Renovations:

Improvements That Pay

So you’re thinking about doing a kitchen facelift, putting on an addition or landscaping your yard. If you’re redoing your house with an eye to upping resale value, you may want to focus your dollars on projects that will give you the best return.

• The Kitchen

  Kitchen renos usually offer the best return of any major improvement. Just make sure you’re keeping your update in line with the rest of the house and with other homes in the neighborhood. If you put a $60,000 kitchen into a $200,000 house, you don’t have much of a chance of recouping your costs. If you don’t have a ton of money to sink into your kitchen, sometimes just a small facelift like new hardware, freshly painted cabinets or new appliances can make a big difference – to both your resale value and your own appreciation of the space.

• The Bathroom

  Buyers like bathrooms that are up-to-date and stylish. Despite being one of the most expensive renos you can undertake (second only to kitchens) updating an existing bathroom or adding a new one can really boost the value of your home. If your home only has one bathroom, adding a second one is always a good idea. If you live in a neighborhood where everyone else has three bathrooms and you only have two, keeping up with the those around you can keep your property values up, too.

• The Basement

  Finishing your basement (or your attic or any other unfinished area) can increase the value of your home tremendously. Adding living space almost always pays for itself. Plus, it’s more cost-effective than building an addition.

• Additions

  A well-constructed addition usually offers a good return at resale. Improvements that increase functional space (rather than just making your home look better) hold their value longer. Just be careful not to add on so much that there’s no space left on the outside; a yard that’s too small may not appeal to buyers.

• Hardwood Floors

  Wood floors are elegant, durable and easy to keep clean. Stick with light or medium wood; dark wood looks formal and isn’t to everyone’s taste. It’s a pricey update, but you can usually recoup a good portion of what you pay for new floors – as long as your buyer doesn’t prefer wall-to-wall.

• Fresh Paint

  Painting your home is inexpensive, easy, and is one of the few investments you can make that will likely see a significant profit. Stay away from intense or unusual colors that won’t appeal to most buyers – tasteful, current neutrals are best. If you’re painting the outside, keep colors in line with other homes on your street.

• New Deck

  An attractive, well-designed deck is a cost-efficient way to add usable square footage to your home, and offers excellent payback.

• General Improvements

  These may seem boring, but overall, fixing the small stuff may increase the value of your home the most. Before you spend money putting in a Jacuzzi tub, first see if any structural or mechanical fixes take priority (like roof repairs, fixing a leaky basement, repairing doors that stick, dripping faucets, etc.) The Jacuzzi isn’t going to impress anyone if the toilet doesn’t work.

Improvements That DON’T Pay

There are some fixes that simply don’t provide a good return on your investment:

• An In-Ground Swimming Pool.

  Since many buyers don’t want the maintenance and responsibility that goes with owning a pool, installing one can actually detract from the value of your home.

• Major Landscaping

  If it looks like it will require a lot of work and money to keep up, it generally won’t appeal to buyers, no matter how nice it looks.

• Replacing Windows and Doors

  If they’re old and drafty, you’ll need to replace them, but it’s an expensive repair that you won’t likely see reflected in your sale price.

Quality Counts

Whatever improvements you decide to make to your home, don’t cut corners to save money. A poorly done reno will detract from the value of your home, especially if buyers decide they need to redo it.

“If you’re redoing your house with an eye to upping resale value, focus your dollars on projects that will give you the best return.”

My Plan For Marketing Your Property

When you’re selling your house or condo, you want to sell it fast and make as much money as possible. A good marketing plan can help you do that. Here’s how I will work with you to market your property. I will:

Advise You On How To Prepare Your Home

I will walk through your home with you and give you staging tips, everything from furniture placement to wall colour to clutter control. This will help your home appeal to more potential buyers and maximize marketability.

Give You a Sense of the Market

This will help you decide on a fair price that’s based on current market value, I will provide you with information on how much other properties in your area have sold for.

Submit the Listing to MLS®

Professional Photography is key to your property getting noticed and chosen out of several listings. I will be sure to include multiple high quality photos of your property – and plenty of information to entice buyers.

Promote Your Listing

I’ll get the word out in as many ways as I can. Your listing will be featured on my website, my newsletter, in feature sheets, “Just Listed” postcards, slideshow presentations, targeted emails, and any other marketing vehicle that makes sense for your property and the target market of potential buyers. I will also promote your property to other REALTORS® via phone calls, emails and personal meetings, whatever it takes to reach potential buyers.

Keep In-Touch Throughout the Process

You’ll never have to guess where things stand with the sale of your property – I will contact you regularly with updates. And if you have any questions, I’m available to answer them – seven days a week. I welcome your calls or emails anytime. I’ll be sure to touch base with you after every showing to keep you informed of the potential buyers’ level of interest and what they had to say about your property.

Negotiate the Best Possible Price and Terms For You

You can rest assured that I will negotiate the best possible price for your property and will be sure to provide you with my expertise throughout the bidding process.

Trademarks owned or controlled by The Canadian Real Estate Association. Used under licence.

10 Tips To Sell Your Home

Making your home appealing takes more than just a quick cleanup and some scented candles. When you’ve got your place on the market, here are some tips for creating a great experience for prospective buyers, and really showing off your property to its fullest advantage.

1. Depersonalize
This is one of the most important rules of home staging. Store the kids’ artwork, your family photos, religious items and toiletries. Buyers don’t want to see the space as someone else’s – getting rid of your personal stuff helps them visualize it as theirs.

2. Be a Minimalist
Having less stuff on display makes your place look bigger and more appealing. Pack up the knick-knacks, clear off the countertops, pull half the stuff out of your closets and organize what’s left. If you’re tempted to throw all the extra stuff into the garage, don’t. Buyers will be looking in there too. If you need to, rent a storage unit while your house is on the market.

3. Ensure Your Home is Spotless
One of the biggest turnoffs for buyers is a place that isn’t clean. Steam the carpets, mop the floors, corral the dust bunnies, make sure windows and mirrors are gleaming. Don’t forget about the small everyday stuff like; crumbs on the table, rumpled beds, toothbrushes left by the sink or half-full trash cans. Details count – people will notice.

4. Always Be Show-Ready
Yes, this is a hassle but showings sometimes happen with very little notice, so make sure your home is always clean and ready to go. Don’t put dirty dishes in the sink, wash them right away or put them in the dishwasher. Keep your valuables stored away and make sure personal information isn’t left in plain sight. Ensure your key is always in the lockbox, it helps to create and follow a checklist so you don’t miss a thing.

5. Be Flexible
Be open to last-minute showings and other inconveniences. The more flexible you are now, the less time it should take to sell your home. Don’t stick around when potential buyers are there, there’s nothing more uncomfortable than looking at a house while the current owners are there, watching you. Go out for dinner, take the kids to the park, hang out in a coffee shop or visit friends.

6. Keep Things Fresh
A house that looks clean should also smell clean. Cooking smells, mildew, pet odors, they’re all serious turn-offs. Open the windows, use air purifiers, put out some lightly scented candles but be careful about using plug-ins, room sprays or other artificial fragrances, many people are sensitive to scents and smells. Also, an overwhelming scent can make it seem like you’re trying to mask an odor problem, less is definitely more in this case.

7. Relocate Your Pets
Fido or Fluffy might be friendly but don’t leave them at home during a showing. Not everyone is an animal lover, and no one wants to see the litter box. Have a plan for taking your pet with you for showings or ask a friend to pet-sit while your house is on the market.

8. Make a Great First Impression
Ensuring the inside of your house is presentable is very important, but don’t forget about what potential buyers will see first: the exterior. Boost your curb appeal by making sure windows are clean, trim is painted, and decks are power washed. Adding some colourful flowers to your garden or having planters on your porch can be a wonderfully inexpensive and cheerful boost to the exterior of your home. Don’t forget the entryway; declutter, put out some fresh flowers, and make it a welcoming space that offers the perfect introduction to the rest of your home.

9. Lighten Up
Create a bright, cheery atmosphere by turning on all the lights and opening up the curtains and blinds. Trim back any bushes that block the light, and don’t forget to clean the windows.

10. Show Off Your Assets
Do your best to really maximize the best features of your home. Do you have  beautiful hardwood floors? Put the area rugs away. Want to highlight a nicely renovated kitchen? Get rid of the dish towels and put countertop appliances out of sight to emphasize how great it looks.

It all boils down to this, if you do everything in your power to make your space look the best that it can and be flexible when it comes to showings, your property will appeal to more buyers and sell faster.

8 Tips For First-Time Buyers

When you’re shopping around for a new home, it’s easy to let your emotions take over. This quick list of dos and don’ts can help you keep a level head while you look, and ensure you don’t end up with buyer’s remorse down the road.

1. DO a drive-by. Check out the exterior, the street and the neighbourhood. If you can, stop by during the day and in the evening to get a sense of what it’s like at different times. See if there are any good shops and restaurants in the area, and if it’s a place where you feel comfortable walking around. Check walkability scores of different neighbourhoods here.

2. DO come prepared. Show up to showings and open houses armed with a list of questions. Take plenty of photos. Sketch out layouts. Measure spaces to ensure your furniture will fit. Write down all the things you love, items that require repair or renovation, elements you’re not so keen on. When you’re looking at multiple homes, it’s easy to get confused – having detailed notes of each visit will help you keep track.

3. DO look at homes in your price range. It’s easy to fall in love with a place you can’t afford. Don’t bother looking at the ones that are priced out of reach – you’ll only be setting yourself up for disappointment, and make yourself feel like you’re settling for less than you deserve.

4. DO check the water pressure. Run the taps and flush the toilets (separately and at the same time). See if the showerhead blasts water or just gives off an unsatisfying drizzle. And don’t forget to check how fast the water heats up. If it’s really slow, there could be issues with the heater.

5. DON’T forget to take stock of storage. There’s nothing like moving into a new place and realizing there’s nowhere to stow your stuff. Look at closets, basement storage, attic space and outdoor sheds. Where will you keep your vacuum cleaner? Your spare linens and towels? Sports equipment and off-season clothes.

6. DON’T sweat the small stuff. That harvest gold fridge and the stained basement carpet can both be replaced at a relatively low cost. The scary turquoise dining room can easily be repainted. Watch out for high-cost fixes instead, like outdated electrical or bathrooms that require a complete overhaul.

7. DON’T forget to check the exterior. Look for damp or buckled spots on the siding, peeling paint, loose shingles, cracks in the foundation. A quick look can save you thousands of dollars in the long run.

8. DON’T overestimate your DIY capabilities. Fixing that leaky faucet? Sure, almost anyone can do that. But renovating the kitchen? Ripping out drywall? Putting in new plumbing? Before you make an offer on a house that’s not move-in ready, make sure you’re not getting too enthusiastic about what you can actually accomplish. If you think you can do it yourself, then realize you need outside help, you’ll be facing some serious costs you didn’t factor into the purchase price.

9. DON’T be afraid to move on. So many buyers get stuck on the idea that another home as perfect as this one will never come along. That’s simply not true. New listings come on the market every day, so never assume that there’s nothing as good as – or better – out there. Be patient.

Finding a property you love is exciting, but it’s a little like falling in love with a person. That initial glow can make you overlook faults that will drive you around the bend a few years down the road. Keeping emotions in check and the long-term future in mind can help you make a smart buying decision to find the home that’s perfect for you.