Real Estate Fast Facts on the Comox Valley

by on April 4, 2017 with No Comments

April 2017

  • REMAXIn the 12 months ending March 31st, 2017, there were 2054 sales of all property types, a 22% increase over 2016. The highest number of annual sales was 2256 in 2007.  The lowest was 879 in 1998.  2017 marks the third consecutive year of above average numbers of sales. The twenty-two year average is 1553.
  • The twelve-month average sale price of a Comox Valley home is $426,337, up 15% from 2016. The average lot price is $205,339, up 11%. If you purchased an ‘average’ home in 2007 you paid $329,280. If you bought an average lot in 2007, you paid $128,058.
  • Apartment condos are the largest segment of the strata market. In 2007 the average price was $196,829. YTD in 2017, the average price is $240,788.
  • YTD in 2017, 65 houses per month have sold. (In all of 2016, 102 house per month sold, for 2015 – 78, for 2014 -73, for 2013 – 68, for 2012 – 68, 2011 – 66, for 2010 – 68, for 2009 – 73, for 2008 – 69, for 2007 – 100.)   75% of all residential sales occurred in Comox – 19%, Courtenay – 43%, and Cumberland – 13%.  Cumberland is in double digits for the first time.
  • Houses make up 62% of the 374 residential properties currently offered for sale (condos – 31%, mobiles – 3%, duplexes – 10 %.) The current active inventory of all properties is 577, a 43% reduction from 2016.
  • If you bought an average home in Cumberland  in 2007 you paid $264,572. Today’s price is $474,978.  The largest local current average sale price differential is between Courtenay South ($400,000) and Crown Isle ($629,000).
  • YTD in 2017, 8 houses have sold for less than $200,000. In all 2016 – 19, in 2015 – 41, in 2014 – 35, in 2013 – 47, in 2012 – 37, in 2011 – 36, in 2010 – 29, in 2009 – 37.  There were ten residential sales over $1 million in 2008.  In 2009 – three, in 2010 – one, in 2011 – two, in 2012 – none, in 2013 – five, in 2014 – six, in 2015 – four, in 2016 – nineteen and YTD 2017 – seven.  The 12 month median price (half sales above, half sales below) is $409,900.
  • The 2017 residential sales pattern in the Comox Valley indicates one half of all single family dwelling sales occur between $350,000 and $500,000. The twelve month list/sell ratio is 92% and currently, listings are selling for 98% of asking price in 47 days.
  • Based on current market activity, when ten houses sell in the Comox Valley, seven are in the urban centers, three are rural. Two are priced under $350,000, five are priced from $350,000 to $500,000 and three are priced over $500,000.
  • There are 179 REALTORS® in the Comox Valley among the 1068 members of the Vancouver Island Real Estate Board. The peak in the Valley was 240 in 1993.

 

Created by made for RE/MAX Ocean Pacific Realty with stats from the Vancouver Island Real Estate Board, 2017-04-01

Pricing the House to Sell

by on June 5, 2015 with No Comments

What is the difference between list and sales prices?
The list price is how much a house is advertised for and is usually only an estimate of what a seller would like to get for the property. The sales price is the amount a property actually sells for. It may be the same as the listing price, or higher or lower, depending on how accurately the property was originally priced and on market conditions. If you are a seller, you may need to adjust the listing price if there have been no offers within the first few months of the property’s listing period.

What are the two most important factors when selling a home?
Price and condition are the two most important factors in selling a home, even in a down market. The first step is to price your home correctly. Use comparative sales information from your agent, or pay for a professional appraiser (usually $200 to $300), to objectively evaluate your home’s worth. Second, go through the house and repair any obvious cosmetic defects that could deter a buyer. In a down market, you may have to consider lowering your price and/or making a major repair, such as replacing the roof, in order to lure a buyer. Also, make sure that your home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and a listing on the local multiple listing service or online listings provider. If this isn’t happening, take it up with your agent or agent’s broker. If you are still not satisfied you are getting the service you need, you may have to switch agents.

What is the best time to buy?
Because many buyers prefer to move in the spring or summer, the market starts to heat up as early as February. Families with children are eager to buy so they can move during summer vacation, before the new school year begins. The market slows down in late summer before picking up again briefly in the fall. November and December have traditionally been slow months, although some astute buyers look for bargains during this period.

What is the difference between market value and appraised value?
The appraised value of a house is a certified appraiser’s opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 to $300. Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker. Either an appraisal or a comparative market analysis is the most accurate way to determine what your home is worth.

What is the difference between list price, sales price and appraised value?
The list price is a seller’s advertised price, a figure that usually is only a rough estimate of what the seller wants to get. Sellers can price high, low or close to what they hope to get. To judge whether the list price is a fair one, be sure to consult comparable sales prices in the area. The sales price is the amount of money you as a buyer would pay for a property. The appraisal value is a certified appraiser’s estimate of the worth of a property, and is based on comparable sales, the condition of the property and numerous other factors.

How does someone sell a slow mover?
Even in a down market, real estate experts say that price and condition are the two most important factors in selling a home. If you are selling in a slow market, your first step would be to lower your price. Also, go through the house and see if there are cosmetic defects that you missed and can be repaired. Secondly, you need to make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage, and listings on the local multiple listing service (MLS) and on the Internet. Another option is to pull your house off the market and wait for the market to improve. Finally, if you who have no equity in the house, and are forced to sell because of a divorce or financial considerations, you could discuss a short sale or a deed-in-lieu-of- foreclosure with your lender. A short sale is when the seller finds a buyer for a price that is below the mortgage amount and negotiates the difference with the lender. In a deed-in-lieu-of-foreclosure situation, the lender agrees to take the house back without instituting foreclosure proceedings. The latter are radical options. Your simplest, and in many cases most effective, option is to lower the price.

How is the price set?
It’s very important to price your home according to current market conditions. Because the real estate market is continually changing, and market fluctuations have an effect on property values, it’s imperative to select your list price based on the most recent comparable sales in your neighborhood. A so-called comparative market analysis provides the background data upon which to base your list-price decision. When you prepare to sell and are interviewing agents, study each agent’s comparable sales report (the data should be no more than three months old). If all agents agree on a price range for your home, go with the consensus. Watch out for an agent whose opinion of value is considerably higher than the others.

What are the standard ways of finding out how much a home is worth?
A comparative market analysis and an appraisal are the standard methods for determining a home’s value. Your real estate agent will be happy to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood. Be sure you get listing prices of current homes on the market as well as those that have sold. You also can research this yourself by checking on recent sales in public records. Be sure that you are researching properties that are similar in size, construction and location. This information is not only available at your local recorder’s or assessor’s office but also through private companies and on the Internet. An appraisal, which generally costs $200 to $300 to perform, is a certified appraiser’s opinion of the value of a home at any given time. Appraisers review numerous factors including recent comparable sales, location, square footage and construction quality.

How do you prepare a house to sell?
Doing whatever you can to put your house’s best face forward is very important if you want to get close to your asking price or sell as quickly as possible. Short of spending a lot of money, here are several ideas for making your home show better:
* Sweep the sidewalk, mow the lawn, prune the bushes, weed the garden and clean debris from the yard.
* Clean the windows (both inside and out) and make sure the paint is not chipped or flaking. And speaking of paint, if your home was built before 1978, new federal law gives a buyer the right to request a lead inspection. If you think you might have some problems, do the inspection yourself beforehand and make any fixes you can.
* Be sure that the doorbell works.
* Clean and spruce up all rooms, furnishings, floors, walls and ceilings. It’s especially important that the bathroom and kitchen are spotless.
* Organize closets.
* Make sure the basic appliances and fixtures work. Get rid of leaky faucets and frayed cords.
* Make sure the house smells good: from an apple pie, cookies baking or spaghetti sauce simmering on the stove. Hide the kitty litter.
* Put vases of fresh flowers throughout the house.
* Having pleasant background music playing in the background also will help set your stage.

Is a low offer a good idea?
While your low offer in a normal market might be rejected immediately, in a buyer’s market a motivated seller will either accept or make a counteroffer. Full-price offers or above are more likely to be accepted by the seller. But there are other considerations involved:
* Is the offer contingent upon anything, such as the sale of the buyer’s current house? If so, a low offer, even at full price, may not be as attractive as an offer without that condition.
* Is the offer made on the house as is, or does the buyer want the seller to make some repairs or lower the price instead?
* Is the offer all cash, meaning the buyer has waived the financing contingency? If so, then an offer at less than the asking price may be more attractive to the seller than a full-price offer with a financing contingency.

Home Staging Tips

by on June 5, 2015 with No Comments

TOP 10 TIPS TO SUCCESSFUL HOME STAGING!

Preparing your house for selling can be a daunting and overwhelming task whether you have lived in your home a few years or many. The longer you have lived in your home the more things you will have acquired. The intent of this Top 10 Tips for Successful Home Staging is to help you save TIME, MONEY and ENERGY.

In preparing your house for selling you need to take a step back and have the mind set that this is no longer your home but your investment for your future. You want your home to have broad buyer appeal to your target market. Following these 10 Tips for Successful Home Staging will help you sell your house sooner and possibly for more money than if you did not prepare it for selling! Remember most people want to move into their new home without having to make updates to it.

1. Curb Appeal

Stand back and view your home as if you were seeing it for the first time. This is the ‘first impression’ stage. Depending on the season you may want to have pots of colourful and attractive flowers to greet buyers; a clean and inviting door mat; new and shiny door handles and/or knockers; a freshly painted door.

2. Declutter

Start your pre-pack as soon as possible. You need to decide what you are going to keep, give away, sell or throw away/recycle. Many clients will rent storage lockers or have pods delivered so they can start to clear out what is not going to make the house look good.

3. Clean

You would think this one is common sense but let me assure you, I wish it was so! A clean home translates into ‘They must have really cared for their home.” Use environmentally friendly cleaners where you can, for hard cleaning areas tsp is a good product. Bathrooms and kitchens must be sparkling clean at the very least.

4. Depersonalize

We know you love your family photos and your personal treasures and for living they are perfect. For selling pack them up carefully so you can showcase them in your new home. For selling you want buyers to focus on the best features of your home and not your personal things or collections.

5. A neutral colour scheme is the way to go for selling.

Choose only 3 colours or less to paint your house for selling. If you have an open floor plan then paint the main floor all the same colour. Bedrooms look good in light sage greens or warm blues like the new aqua.

6. Highlight your home’s best architectural features

Place your furniture in each room so that you have very obvious focal points that show off the home’s best selling features. For example, if you have a beautiful fireplace then place the furniture in a parallel grouping so that the eye is drawn to the fireplace.

7. Decide on the function in each room

If you were using your guest bedroom as your den for living, for selling turn it back into a bedroom with bedroom furniture in it. If you do not have the right furniture for each room consider renting it. There are more and more rental furnishing companies opening up every day. If you don’t want to rent then borrow.

8. Lighting your home to its best advantage

Spend money on new light fixtures in brushed nickel or stainless steel. Brass is out so don’t fight it. There are many low-cost lighting stores to select from so no excuses for having dated light fixtures.

9. Window treatments that sell your home

The most popular on the market are the 2” faux woods in a white tone to go with your trim. Decorative side panels will do the trick if you need to add warmth and colour.

10. Flooring needs special attention and is a good investment for updating the look of your home

Tile or linoleum is great for entranceways, bathrooms, kitchens, laundry rooms; a good quality laminate or hardwood is perfect for living rooms and family rooms; bedrooms are attractive in a neutral carpet.

By planning and budgeting you can get yourself to the “OPEN HOUSE READY” stage.

Remember that the vast majority of prospective buyers have already looked at your listing on the internet. Will they like what they see?

Before Writing an Offer

by on June 5, 2015 with No Comments

Home Purchase Expenses

There are many costs that homebuyers incur, especially upon purchasing your first home. Some of the expenses related to buying a home are one-time costs, while others are continuing costs.

Your largest outlay is the down payment. As a first time buyer, this would likely represent only 5 – 10% of the purchase price. Be prepared to pay for additional costs, such as:

  • Legal Fees & Disbursements
  • GST and PST (if applicable)
  • Land Transfer Tax
  • Property taxes and adjustments (reimbursed to the vendor)
  • Interest on interim financing, if any
  • Utility Payments
  • Strata or Condominium Fees
  • Estoppel certificate fee
  • Survey Fee
  • Home Inspection Fee
  • Water quality and quantity certificate
  • Appraisal Fee
  • Mortgage broker’s fee (if applicable)
  • Mortgage Loan Insurance Premium (if less than 20% down)
  • Mortgage Loan Insurance Application Fee (if less than 20% down)
  • Moving Expenses
  • Renovations and repairs
  • Furniture, paint, carpeting, window coverings, etc.
  • Service and Utility Hook-up Fees
  • Property/Condominium Insurance
  • Mortgage Application Fee
  • Deed and/or Mortgage Registration Fee

Additionally, once you have purchased your home, you will incur regular expenses on a monthly, quarterly or yearly basis. Some of these costs include:

  • Mortgage Payment
  • Water and/or Sewer Payments
  • Electricity and Gas Services
  • Cable, Telephone and Internet Services
  • Property Taxes
  • Strata or Condo Fees
  • Repair/Maintenance Expenses
  • Homeowner’s Insurance

How to Make an Offer

When you have found a home you are interested in buying, your RE/MAX Sales Associate will walk you through the process of drafting an offer to purchase. Your sales associate will communicate the offer to the seller or the seller’s real estate agent for you. Some properties are in demand and you will not be the only interested party making an offer. Your RE/MAX Sales Associate will assist you in generating an offer that is reasonable and protects your interests using specified terms and conditions.

An offer can be drafted with or without conditions; an offer without conditions is known as a firm offer and one with conditions is known as a conditional offer. A conditional offer represents the party with the placement of certain conditions on the purchase. Some of these conditions could be “subject to financing approval”, “subject to the strata council allowing pets”, “subject to the buyer’s house selling”, “subject to an approved home inspection”, among many others.

The seller may accept your initial offer, reject your offer or present a counter-offer. The counter-offer may differ from your original offer in respect to price, conditions, the closing date or any other items. Offers can be countered back and forth between the parties until one of you accepts or rejects, ending the negotiations.

There are many components of an offer that you should be aware of and understand. Your RE/MAX Sales Associate will answer your questions and explain the entire process to you so that you are comfortable with the steps involved.

Terms

An offer includes certain “terms”, which specify the total price offered and how the financing will be arranged, such as if you will arrange your own with a financial institution or mortgage broker or if you wish to take over the seller’s mortgage (assumability).

Inclusions and Exclusions

These are specifications within the offer that detail the items to be included or excluded from the purchase of the property. Typical inclusions are appliances, window coverings, fixtures and decorative pieces.

Deposit

A deposit is provided from the buyer to the seller as a token of the buyer’s assurance and intention to buy the property involved. The deposit is applied against the purchase price of the home once the sale has closed. Your RE/MAX Sales Associate can assist you in proposing a certain and appropriate amount for the deposit.

Conditions

Items that are usually put in place to protect a party’s interests upon selling or buying the property and refer to things that must occur or be in place before the sale closes.

Closing Date

This is usually the date that the legal ownership of the property transfers from the seller to the buyer and, unless otherwise noted, when the funds for the purchase are concluded.

Possession Date

When the buyer takes possession as specified in contract oif purchase sale.

Purchase Price

This is the amount that the buyer is offering to pay for the property. The price is usually dependent on market conditions and may differ from the seller’s current asking price.

Legal Needs

Purchasing a home involves a lot of paperwork, most of which are contractual documents that will legally bind you to the numerous terms and conditions. For this reason it is important to have a good lawyer or notary public acting for you. Someone to protect your rights and interests.

Finding a Lawyer/Notary Public

If you don’t have a lawyer or notary public, you can look for a referral from friends, family or business acquaintances. Look for someone with real estate experience and discuss their fee scales. Your RE/MAX Sales Associate can help you locate a reliable professional, whom you feel comfortable working with.

Lawyer’s/Notary Public’s Function

You will need a lawyer or notary public to process your purchase and ensure the terms are met:

the correct property is purchased
transfered title to your name
ensureed title is free and clear of prior owners encumbrances
your mortgage is registered properly on title
The legal process varies from province to province within Canada. Specifically, you will need to consult with your chosen legal professional and he/she will explain the process and the steps that need to be completed before you get the keys to your new home.

Your lawyer/notary public will prepare a “Statement of Adjustments” outlining all the financial aspects of your sale.

Legal Fees and Disbursements

The difference between legal fees and disbursements is analogous to the parts and labour you pay when fixing your car. Your RE/MAX Sales Associate can help you locate a reliable professional, whom you feel comfortable working with.

Home Inspection

A home inspection is an objective visual examination of a home’s structure and systems.

Why get a home inspection?

There are a number of reasons why RE/MAX recommends a home inspection including:

To ensure you are not surprised by major defects
So you can be advised about the various elements of the home including – heating and cooling systems, structure, electrical and plumbing
To learn about how the mechanical systems work and need to be maintained
Most homeowners are not expert in the numerous components of house construction
A third party can be objective as there is no emotional attachment

Who should you hire?

Home inspectors are often referred by family or friends. Your RE/MAX agent can also provide you with a list of inspectors. Look for one that is trained and certified by a national organization such as Canadian Association of Home Inspectors (CAHI) or National Institute of Building Inspectors (NIBI) and who has errors and omissions insurance. Do not hire someone who will do any suggested work due to the conflict of interest.

When should you call?

Order the inspection after your offer has been accepted. The contact will stipulate the length of time you have to complete the inspection.

What is involved?

The home inspection will determine the structural and mechanical soundness of the home. Your home inspector can identify existing and potential problem areas, suggest possible solutions and provide estimates for the cost of the work required. You will receive a report outlining the inspection findings. You should accompany the home inspector during the inspection or arrange to meet them at the home so they can walk you through the report. If as a result of the inspection, you have further concerns, have a specialist in that area conduct a more extensive examination.

What does it cost?

Costs vary depending on a number of factors including:

Size and location of the home, features, age, and services required. Additional services may include radon, septic and well testing. Your RE/MAX agent can assist you in obtaining a quote from a potential inspector before you enlist his/her services.

Mortgage Information

Mortgage lending is a highly competitive field. Information on mortgage rates, which can change daily, is available in local newspapers, through mortgage brokers, from individual lenders and of course through conventional financial institutions. When you are shopping for a loan, interest rates tell just part of the story. You will also need to study the various fees lenders charge and many mortgages today are almost custom-tailored to individual needs with many options available.

Ask your Agent

Your RE/MAX real estate professional can recommend lenders to check with prior to beginning any serious house hunting so you will know exactly what you can afford.

First Time Home Buyers Guide

by on June 4, 2015 with No Comments

The Benefits of Home Ownership

Pride of Home Ownership
Pride of home ownership is the number one reason why Canadians desire their own home. There is no landlord looking over your shoulder. You are able to make home improvements knowing that any appreciation that results, will be to your benefit. Home ownership gives you and your family a sense of stability and security. It’s making an investment in your future.

Appreciation
In Canada, especially in the last few years, homes have appreciated considerably and in doing so have added substantially to owners net worth. Unlike stocks and bonds, you get to live in your real estate investment. Also, in Canada your principal residence is exempt from capital gains taxes.

Mortgage Reduction Builds Equity
Each month, part of your monthly payment is applied to the principal balance of your home loan, which builds your equity. You can borrow against a home’s equity for a variety of reasons such as home improvement, sending your kids to university or college, or starting a new business. Why pay-off your landlord’s property when you can own your own?

Homeowners accumulate wealth for the future while enjoying the benefits of a shelter that they have can use, improve and sell. Their home is a safe haven for investment.

Are You Ready to Buy a Home?

First – do you have the financial resources? You should have five percent of the purchase price of a home for the down payment, but ideally even more. Are there other priorities in your life e.g. starting a new business, which require your savings? If not, buying a home should be on your radar.

Second – do you expect to stay in your new home for some time? Moving can be expensive and you will want to build some equity before having to relocate. Your job and home life should be stable.

What Can You Afford?

If you haven’t already gone through the mortgage pre-qualification process, you will need to meet with a lender or mortgage broker. They will establish how much of a mortgage you will qualify for. Mortgage rates vary considerably and it is paramount that you shop around for the best rate, terms and options.

Each of our property listings had a built-in Mortgage Calculator “tab” to determine it’s affordability for you.

Note:If you are buying a condo, the amount of your monthly assessment has a direct impact on how much you can afford to spend on your mortgage.

First time homebuyers may want to take advantage of the federal government’s Home Buyers’ Plan. Under this plan, you may use up to $25,000 of your RRSP towards the purchase of a home. The money is tax-free as long as you pay it back in the next 15 years. Ask your RE/MAX Sales Associate for details.

Questions To Ask When Assessing Home Features

  • Do you need several bedrooms, more than one bathroom, space for a home office, a two-car garage?
  • Do you want air conditioning, storage or hobby space, a fireplace, a swimming pool? Do you have family members with special needs?
  • Do you plan to have children? Downtown or suburbs? Proximity to recreation or work.
  • Do you need a substantial backyard? Pets?
  • Is there adequate storage space?
  • Will any remodeling be required to make the home move-in ready for you?
  • What service providers (cable, Internet, telephone, Satelite) are available in the area, and is the house completely wired for each? Can you hear me now – how good is the cell phone reception?
  • How much are the yearly property taxes?
  • How much do utilities run each month? Does the house use gas or electric for the furnace, water heater, and appliances?
  • How old are the major appliances, and which are included with the house?
  • Have there been any major repairs to the house, and if so, when were they completed? For example, how old is the roof? Has water ever damaged the basement or foundation?
  • Ever had problems with insects, such as termites and spiders, or rodents?
  • Older homes need to be carefully examined – Windows may need caulking or new sashes, bathroom tiles may need grouting, home may need rewiring (planning on a hot tub or sauna?), a new hot water heater, or a new furnace.

Location, Location, Location

  • How far will you be commuting and what is the traffic like? Factor in cost of fuel.
  • Where will your children attend school and how will they commute?
  • Are there recreational facilities and parks close by?
  • Are you close to family and friends?
  • Is safety or high crime an issue?
  • Is the property close to an obstacle or negative influence? (i.e. an apartment building, shopping centre, school, radio tower, power lines, LRT or railroad track, highway, airport or commercial project).
  • Access to schools, work, recreation, shopping centres, public transportation, cultural attractions, libraries, churches and hospitals
  • Adjacent undeveloped land – what is proposed for this or other green space?
  • Heavy traffic can be noise nuisance and hazard for children
  • Distance from the unit to amenities, parking, walkways, roads, public transit
  • Does the neighborhood reflect positively on the value of the condo and your lifestyle choice?
  • Does this neighborhood, for any reason, have a poor reputation?
  • Is the future economic climate for the area good? Are businesses moving in? Is there government investment?
  • Are people moving in or out of the neighborhood? What is their age, income level, family size?
  • Are there plans for this neighborhood that you may be unaware of (i.e. a future highway, a commercial development or a new housing development) that will provide competition on resale?

Noise and Privacy

  • Proximity to highways, driveways, parking lots, playgrounds, trains.
  • Proximity to elevators, garbage disposal, fire exits, heating and air conditioners.
  • How well is the building soundproofed.
  • Visit at different times/weekends to check noise levels and activity.

Working With a Real Estate Agents

by on May 4, 2015 with No Comments

Can I use an agent for a new home?

Yes, however buyers should be aware of the differences inherent in working with sales agents who are employed by the developer, rather than traditional real estate agents.

Builders commonly require that an outside agent be present, and sign in, the first time a prospective purchaser visits a site before payment of commission even is discussed. At times when buyers use an advertisement to find the development themselves first, builders can refuse to pay any commission regardless of how helpful an agent may become later in the process. It is advisable to call the development first and inquire about their policy on compensating real estate agents if you are using one.

How do I find a real estate agent?

Getting a recommendation from a friend or work colleague is an excellent way to find a good agent. Be sure to ask if they would use the agent again. You also can call the managers of reputable real estate firms and ask them for recommendations of agents who have worked in your neighborhood. In any case, whether you are a buyer or a seller, you should interview at least three agents to give yourself a choice. A good agent typically works full-time and has several years of experience. If you are a seller, you should expect to review a comparative market analysis, which includes recent home sale prices in your area, when you talk to a prospective agent.

What about a buyer’s agent?

In many states, it’s now common for an agent to represent the buyers exclusively in the transaction and be paid a commission by the sellers. More and more buyers are going a step further, hiring and paying for their own agent, referred to as buyers brokers.

How do you find a good agent?

Getting a recommendation from a friend or work colleague is an excellent way to find a good agent, whether you are a buyer or a seller. Be sure to ask if they would use the agent again. You also can call the managers of reputable real estate firms and ask them for recommendations of agents who have worked in your neighborhood.
A good agent typically works full-time and has several years of experience at minimum. If you are a buyer, you don’t usually pay for your agent’s services (in the form of a commission, or percentage of the sales price of the home). All agents in a transaction usually are paid by the seller from the sales proceeds. In many states, this means that your agent legally is acting as a subagent of the seller. But in some states, it’s legal for an agent to represent the buyers exclusively in the transaction and be paid a commission by the sellers. You also can hire and pay for your own agent, known as buyer’s brokers, whose legal obligation is exclusively to you. If you are a seller, you should interview at least three agents, all of whom should make a sales presentation including a comparative market analysis of local home prices in your area. The best choice isn’t always the agent with the highest asking price for your home. Be sure to evaluate all aspects of the agent’s marketing plan and how well you think you can work with the individual.

How much does my real estate agent need to know?

Real estate agents would say that the more you tell them, the better they can negotiate on your behalf. However, the degree of trust you have with an agent may depend upon their legal obligation. Agents working for buyers have three possible choices: They can represent the buyer exclusively, called single agency, or represent the seller exclusively, called sub- agency, or represent both the buyer and seller in a dual-agency situation. Some states require agents to disclose all possible agency relationships before they enter into a residential real estate transaction. Here is a summary of the three basic types:

  • In a traditional relationship, real estate agents and brokers have a fiduciary relationship to the seller. Be aware that the seller pays the commission of both brokers, not just the one who lists and shows the property, but also to the sub- broker, who brings the ready, willing and able buyer to the table.
  • Dual agency exists if two agents working for the same broker represent the buyer and seller in a transaction. A potential conflict of interest is created if the listing agent has advance knowledge of another buyer’s offer. Therefore, the law states that a dual agent shall not disclose to the buyer that the seller will accept less than the list price, or disclose to the seller that the buyer will pay more than the offer price, without express written permission.
  • A buyer also can hire his or her own agent who will represent the buyer’s interests exclusively. A buyer’s agent usually must be paid out of the buyer’s own pocket but the buyer can trust them with financial information, knowing it will not be transmitted to the other broker and ultimately to the seller.

Tips for Selling Your Home

by on May 4, 2015 with No Comments

Ready To Sell Your Home And Move On? Rod & Keitha with Remax can Help!

RE/MAX agents have the expertise and resources you need to help you sell your home quickly and successfully. It all begins long before you open your home to showings. You need to see your home like a prospective buyer. To do that, you need to look at both the inside and outside with a fresh perspective. If you follow these simple steps, you will be helping to set the stage for a property that shows great to potential buyers.

Letting Go Of Clutter

When prospective buyers walk through your home, they tend to imagine it as if it were their own. You can help them envision their dream space by presenting a clean, clutter-free environment.

Here’s How…

New Perspective

Bring a friend, a RE/MAX professional agent or home stager to help point out overlooked problem areas of clutter. When you live in a space, you get used to a space. You don’t see what others see. Trust their advice.

Remove Personal Items

Put away family photos, souvenirs, knick-knacks and personal items. These items are special to you, but the prospective buyer wants to envision their own personal items in your space. So, help them out.

Clean, Clear Surfaces

Clear off counters, especially in kitchens and bathrooms, storing away small appliances and miscellaneous personal items. Scrub down the surfaces and perhaps even put out a bouquet of flowers.

Create Ease of Movement

Remove and store extra furniture to create open areas that promote easy foot traffic through your home.

Show Off Storage Space

Clear out closets, basements and garages as prospective buyers are always on the lookout for ample storage space. Now is a good time to box up unworn clothes, toys and personal items for storage or charity.

Quick Fixes And TLC

Potential buyers will be looking for visual clues that your home is well cared for. How much work a house seems to require will impact the offering prices you receive, so it’s worthwhile to ensure that everything is in good working order.

Here’s A Quick Checklist…

Bathrooms

Ensure all plumbing fixtures are clean and in good working order. Outfit leaky faucets with new washers and clean any visible stains on porcelain fixtures. Replace old, worn shower curtains and bath mats.

Doors and Windows

Spray WD40 on all hinges so everything operates smoothly. Have windows cleaned inside and out. Potential buyers will be estimating their energy costs, so fix drafts by re-caulking windows and replace exterior doors if necessary.

Walls and Floors

A fresh coat of paint instantly transforms a space, helping it to look neat, clean, and up-to-date. Always fix obvious wall imperfections like cracks and nail holes, before painting. Steam clean carpets and runners, and repair any chipped or loose floor tiles.

Atmosphere

Be mindful of the odours left behind by pets and smokers and consider using an environmentally friendly room fragrance to neutralize unpleasant scents. Replace light bulbs and add light fixtures in dark hallways, including basements, garages and closets.

Curb Appeal – Drive By Success!

First impressions can be everything. Many people simply drive by a listing and make a decision based on your home’s curb appeal. So, don’t forget the importance of creating a well-manicured entryway – to entice potential buyers. Maintaining a neat and attractive exterior to your home will show buyers that you take pride on your property.

Here Are A Few Tips…

Landscaping

Consider planting a few bushes and colourful mature flowers to create an eye catching display. Ensure that your lawn is well manicured: mowed, watered and void of brown spots.

Front Door

Look critically at your front entrance: does the door or the porch railing cry out for a fresh coat of paint? Polish the door handle and invest in a new welcome mat.

Front Porch

If it’s spring or summer, plant colourful containers to flank your entrance. If it’s autumn, rake leaves. During winter, clear the snow and ice from your walkway. Whatever the season, look closely to determine if any repairs are needed. All loose cement or rotting wood should be replaced.

Shine On

Many serious buyers will want to drive by your home after the sun goes down. Remember to ensure that all outdoor light bulbs are turned on in order to show your home in its best light.

6 Mistakes Home Buyers Make

by on May 4, 2015 with No Comments

Mistake #1.  Not Getting Pre-Qualified for a Mortgage

Before looking for your next home take the time to get pre-qualified by the bank or mortgage broker you choose.  This can save you hours of searching for homes in the wrong price range or worse, purchasing a home and then finding out you don’t qualify for financing.  Pre-qualifying gives you peace of mind, helps narrow your search criteria and most importantly, gives your RE/MAX agent a negotiating edge by being able to alleviate the sellers concern over financing. The latter is especially important should a competing offer surface.

Mistake #2.  Not Shopping For Mortgage Terms

Rates are negotiable! Banks will sharpen their pencils to get your business especially if you have a good credit rating and bring other business to them e.g. RRSP’s, general account, savings etc. Posted rates should viewed as a starting point. You need to know what the best rate is and this is usually done by get competitive quotes. Also, ask whether the bank will cover appraisal fees, and about buy-out fees, penalties, payment options, portability etc.  The time spent can save you thousands of dollars over the life of the mortgage.

Mistake #3.  Not Getting Professional Inspections

Nobody wants to purchase a home only to find out later there are defects, latent or otherwise.  Ensure you obtain inspections where needed e.g. home inspection, structural engineer, insect, radon etc.  If the inspection identifies deficiencies you may be able to negotiate the purchase price to cover required repairs or make your satisfaction of the inspection subject to the homeowner remedying the problem. Your RE/MAX agent can advise you on inspections you should consider.

Mistake #4.  Not Using A Professional Real Estate Agent.

Your RE/MAX agent can help you make a purchase with the least amount of problems.  He or she can ensure the price you pay is market value.  They can offer expert advice on what to look for, conditions to include, negotiation strategy etc. After all, they work for you.

Mistake #5.  Buying First Before Selling

If price is important you should always sell your present home before buying another.  It has the advantage in letting you know exactly how much money you will have available for your next purchase.  Selling your home first allows you to place fewer conditions on your purchase which makes your offer more attractive to a seller.  They often will demand more money to take a “subject to” offer which takes their home off the market.  The other advantage is if you find a terrific house, chances are others will also find it attractive and you stand to lose it if you can’t make an unconditional offer.

Mistake #6. Not Knowing The Full Cost Of Home Buying

Know all the costs associated with your purchase.  Consider the following costs:   legal fees, transfer tax, property taxes, new home landscaping, fencing, appliances, window coverings.