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The 5 Reasons Homes Don’t Sell

Friday, November 18th, 2016

Most people believe there are lots of reasons why a home doesn’t sell. However, there are actually only five. If you address these five common mistakes, then you will never have a problem getting your home sold.

Over Pricing and Speculating

We all wish we could ask whatever we wanted for our homes, but unfortunately price is set by comparable properties and market conditions. If you are priced above either of these, then your home will sit for a long time.

Looking at the price of homes currently listed for sale in your neighborhood only tells part of the story. You must research how much homes are actually selling for, and price your home accordingly. Your home will only sell for what buyers are willing to pay for it.

Exposure

Even a well priced property can’t sell, if no one knows about it. If you are not marketing your home where the buyers are looking, then you will not sell it. The greater the percentage of your target market that sees your home, the better chance you have of selling.

More and more, people are using the Internet as their primary source of research. Be sure your home is easy to find in the most common places that people look.

Poor Marketing

You have to make buyers WANT to look at your home. If your marketing makes your property look like every other listing, then you are simply “rolling the dice” and hoping for the best. Is your marketing truly compelling?

A great question to ask is… Why should someone buy my home, versus any other home in the neighborhood or city? If you don’t believe that you have a compelling reason, then the buyer won’t either.

Presentation

So now you’ve got someone to look at your home, but it’s a mess, smells bad, or simply shows poorly. If a buyer doesn’t feel comfortable in your home, you can forget about the sale.

If you can, don’t be around during showings, keep the house clean, and do some research on staging your home for selling. A small investment can make, or save you thousands.

Lack of Buyer Confidence

Purchases fall through every day, because sellers cannot confidently answer the buyer’s questions, provide accurate paperwork, or verify important details. If you are not organized before you sell, then you may watch all of your hard work go to waste, as a potential buyer walks away due to a lack of confidence.

Do Your Homework

You need to be very realistic with your goals when you are selling and you must do your homework. As the marketplace changes, so must your strategy. Too many people spend thousands of dollars, hours of their time (not to mention stress) and miss the best opportunities to sell because they don’t have the proper information to make a sale possible.

“Get the advice of experts when you can.”

Gather all of the information that you need and get the advice of experts when you can. At the end of the day, hiring a professional to ensure your sale is handled properly may be one of the best investments you can make.

For a free home consultation contact us. 

 

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10 Ways to Get Your House in Tip Top Shape Prior to Selling It! And Maximize the Most Income!

Monday, November 14th, 2016

Many people want to know what the secret is to getting the most out of their real estate and to appeal most consumers looking for real estate today.  This report will guide you through doing many of those things to help get the most dollars when selling your property.

  1.     Paint the interior!  Most buyers appreciate a good fresh coat of paint and this will help enhance your properties value.  It will also help brighten your rooms giving a new clean                       appearance.  Stay away from bold and bright colors and focus more on lighter and softer earth tone shades.  This will also help make the rooms feel larger and appeal to a bigger group of         potential buyers.
  2.     Paint the outside!   Curb appeal is important and there is nothing worse for area estate professional to try and market a home that has peeling paint or is in desperate need of painting.         Of course depending on the time of year and the weather conditions if you can paint but if at all possible paint the exterior.  As noted with the interior suggestion of using soft lighter                 neutral colors do the same for painting the outside of your home.  Stay away from bright colors that others may not like.
  3.     Pick Up Any Outside Debris, Trash or Clutter!  First impressions make a huge impact on potential buyers.  Should your property have unwanted clutter at the initial greeting to               consumers when your property is shown, it will not help in the marketing and selling of your home.  A few hard hours of raking cleaning and picking up odds and ends could add                         “thousands” to the sales price of your home.
  4.     Reduce Extras and Odds and Ends From Your Home!  Rooms with too much furniture or decorations can often detract from the showing of your home.  Usually too much décor           can make the rooms look smaller and hurt your chances of selling your home.  Store unneeded furniture or items that you can do without during the marketing stage of your property               listing.  Your goal is to make your property look spacious and comfortable.  Buyers also want to see rooms that appear and look spacious to them.
  5.     Be sure and Open Blinds and Draperies!  This is a great idea to help aid the salesperson sell your home.  When your property is in tip top share and ready to show having as much            light as possible helps brighten your home and give it a good feel.
  6.     Avoid Playing Music!  Although you may like the music playing in the background it can be a deterrent to the agent and buyers while looking at your home.  Keep music off while your         home is being shown.
  7.     Price Your Property Right from the Beginning!  Many buyers take the approach and attitude that they can always come down on price.  This can be a bad thing to do.  Many buyers       feel if a home has been listed for a long time that there is something wrong with it.  Most agents will tell you that the best activity occurs during the first two to three weeks of the listing             begin date.  After a few weeks the activity will begin to taper off and showings will cease.  If your home is priced incorrectly from the beginning it will not get a lot of showings and the                 longer your home is on the market the more buyers will feel that it’s tainted or something’s wrong.  Price your home right at the beginning to help get the most activity and a quicker sale.
  8.     Have Your Carpets Cleaned!  It’s a good idea to have your carpets cleaned or your hardwood floors polished or waxed.  This is normally not too expensive and can usually add a lot of         appeal to potential buyers.
  9.     Hire a Staging Company!  If possible hire a staging company to help show you ways to maximize room appeal and value to your residence.  Many real estate firms have a staging                   company or people on staff who can aid in this service.  Feel free to ask me about how I can help with staging too.

      10.  Purchase New Linens and Towels for Bathrooms!  This can help aid in giving a new appearance to your bathrooms.

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Consequences of Mortgage Rules Change

Thursday, November 3rd, 2016
As you are most likely aware by now, the mortgage rules changed on October 17th – if not here you can find a summary of changes.  I am going to give you my opinion of what this means to the Calgary Real estate Market. 
First some facts:  Sales for the month of October were 
Week 1 – 352
Week 2 – 375
Week 3 – 463 (rule change week)
Week 4 – 386
Looking at our sales by week makes it very clear that we saw a large spike in sales that was driven by buyers jumping in before the changes took effect. This to me means that the new rules are going to have a large effect of Calgary Real Estate sales volumes. 
 
I forecast that: 
  1. We will now see a substantial decrease in sales as buyers can no longer buy what they thought they would be able to afford. This will increase the number of homes for sale in Calgary putting us into more of a buyers market than we were. Ultimately this will put further downward pressure on pricing. 
  2. Buyers will back off buying as they believe that less people can buy so prices will come down.
  3. Over the next 3 months we will see a shift in what people are buying due to affordability.  IE: Those that were looking at starter homes will now be buying Townhouses and those looking at townhouses will now look at apartment condos. 
  4. I predict that it will take 3 to 4 months before we start to find out what the new normal really is. 
Unintended Consequences: 
  1. Buyers may be driven to borrrow private money (at a higher cost) just to secure the home they want putting them more at risk than before the rule change.
  2. Mortgage interest rates are going to increase.  Already the TD Canada Trust increased their rates as the cost & risk of lending money for mortgages has increased.

For a great article explaining above click here

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Nov 1, 2016 Calgary Real Estate Market Snapshot

Wednesday, November 2nd, 2016
Welcome to our Nov 2016 Calgary Real Estate Market snapshot.
The big news for October is that the government changed the rules for mortgage qualification.  This month the stats show increased sales and declining inventory and I believe it is 100% due to people scrambling to get their home before the rules changed.  Next month we may see a totally different picture but only time will tell for sure.
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Stay ahead of everyone else by following our Monthly Market Snapshot of the Calgary Real Estate Market This shows what’s really happening! The market is driven by supply and demand so here we show the inventory (supply) and sales (demand) and most importantly the relationship between the two and how it affects the price of Calgary Real Estate.  A simple way to keep up to date with how the market is trending and to stay ahead of most! All numbers are taken from the Calgary Real Estate Boards Stats package for Realtors. I have also included some general comments which are simply my opinion.

Absorption Rate (Months of Inventory)   (the inventory divided by the number of sales in the last month). What does this mean you might ask?

Buyer’s Market >4.0 Drives prices down
Balanced Market Between 2.4 to 4.0 Prices typically remain stable
Seller’s Market <2.4 Drives prices up

*** Absorption Rate***  

The absorption rate for all categories decreased this month.  I believe this is because we saw a spike in sales due to people entering the market before the mortgage rules changed.  It should be interesting to see our stats for next month once the new rules have been in place for a while.

Absorption Rate Cont. 

  July 2016 August  2016 Change
Detached 2.99 2.49 -0.50
Semi Detached 3.30 2.96 -0.34
Attached – Row 4.88 4.21 -0.67
Apartment 8.26 6.14 -2.11
Total City 3.95 3.30 -0.65

 

Calgary Listing Inventory

October Inventory levels decreased in all categories.   I believe that the change is due to increased sales and a normal amount of new listings.  The bottom line is there are less Calgary Homes and Condos for sale than last month.

Inventory July 2016 August  2016 Change
Detached 2823 2565 -258
Semi Detached 515 486 -29
Attached – Row 888 834 -54
Apartment 1651 1542 -109
Total City 5877 5427 -450

 

Calgary Sales:

Sales in all categories increased this month.  Again I believe that the new mortgage rules are 100% responsible for this increase.  For many people if they did not buy before the changes they would simply not be able to qualify so this created a sense of urgency for buyers.  Note that apartment condos saw the largest increase (25.5%) which was needed in this sector.

Calgary Sales   July 2016 August  2016 Change % Change
Detached 945 1031 86 9.10%
Semi Detached 156 164 8 5.13%
Attached – Row 182 198 16 8.79%
Apartment 200 251 51 25.50%
Total City 1488 1644 156 10.48%

 

Calgary Real Estate Sales Prices: 

All categories showed a slight decrease in prices this month.  Typically you will see a direct correlation between the absorption rate and prices – this month that is not the case and I believe it is again caused by the government rule changes and everyone trying to figure out what the market might look like next month.  Attached – row houses (townhouses) saw the largest decrease even though apartment condos have the highest absorption rate.

 

  Sales Prices July 2016 Benchmark Price    August  2016

Benchmark Price

 Change
Detached 503,400 502,200 -1,200
Semi Detached 386,500 386,500 0
Attached – Row 311,100 308,100 -3,000
Apartment 274,700 273,800 -900
Total City 440,400 438,900 -1,500

 

 

Sales Prices “Year to Date”   

Year to date prices

Sales Prices Dec 31, 2015   Benchmark Price  August 2016 Benchmark Price Change

$

% Change
Detached 514100 502,200 -11,900 -2.31%
Semi Detached 393100 386,500 -6,600 -1.68%
Attached – Row 318500 308,100 -10,400 -3.27%
Apartment 288,000 273,800 -14,200 -4.93%
Total City 452800 438,900 -13,900 -3.07%

 

 

Community Variations 

**Please note that these numbers do change on a community basis and more so for towns.  This report does not include rural properties.  If you would like to find stats on your community just let me know.  If you have any questions about this summary or Real Estate questions please feel free to contact us.

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Fall 2016 edition of CMHC’s Housing Market Outlook – Calgary

Friday, October 28th, 2016

Every quarter CMHC  produces their Housing Market Outlook for all of Canada and for Major cities like Calgary.  It is interesting as it shows not only the state of the market but it contains predictions for the future and an explanation of Why?

Here is a link to the full report for Calgary

The Fall 2016 edition of CMHC’s Housing Market Outlook – Calgary is now available and can be accessed by clicking on the link below.
http://www.cmhc-schl.gc.ca/odpub/esub/64339/64339_2016_B02.pdf

Highlight of the report include

  • Total housing starts forecast to remain relatively low in 2016 and 2017, before improving in 2018. „
  • Significant changes in MLS® sales are not expected over the forecast period. „
  • The purpose-built apartment vacancy rate is expected to stay above historical averages.

Thanks to CMHC for giving u this valuable information.

 

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Basics of Buying a Condo

Friday, October 14th, 2016

Should I buy a condo or should I buy a house?

We believe that the decision to buy or not to buy a condominium boils down to a lifestyle decision. Many times a someone else handles much of the repair and maintenance, such as shoveling snow and replacing the roof.  Many condominiums have enhanced security features over those found in a single family home and some offer a wide range of social, entertainment and recreational activities.  Following are some condo basics.

What is a Condominium ?

Condo Myth – A Condo is a style of Building 

A condominium refers to a form of legal ownership, as opposed to a style of construction

When buying a single family home you are buying the home and the land the home sits on.

***When buying a condominium you are typically buying what you see between the walls of the unit and you are buying a percentage of the condominium corporation that manages the building and the common property. 

Some Specific things to consider when looking at a Condo. 

  1. Condo Fees – I’ve heard many times that condo fees are just an extra expense that I do not want.   We believe its important to take a closer look as condo fees will cover things that you would have to pay for yourself if you bought a single detached home.  IE: Things like a roof or siding.
  2. Condo fees cannot be compared from building to building as you have to look specifically at what is covered in the fees as many times things like utilities will be covered in fees
  3. Reserve Fund:  A  portion of your monthly condo fees will likely go into a reserve fund. This fund ensures that the condominium has enough money to pay for major repair and replacement of common elements over the life of the building.
  4. Condominium Document Condition.  This should be a condition put on any offer to purchase.  It states that the seller is obligated to give you all the documents from the condo board including financials, meeting minutes, reserve fund studies and more.   There are now companies that provide a service to review your documents and report back to you how strong the corporation is.  In our opinion when buying a condominium this is an excellent investment.

“Certified Condominium Specialist” CCS  

If you are considering buying a condominium we highly recommend that when looking for a Realtor to represent you the CCS designation is a must have.  The Certified Condominium Specialist (CCS) designation means that that Realtor has taken additional education and will know all the ins and outs of buying a condo.  Buying a condo is substantially more complicated than buying a single family home and you should make sure your Realtor is qualified to best help you.

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Oct 1, 2016 Calgary Real Estate Market Snapshot

Tuesday, October 4th, 2016

Stay ahead of everyone else by following our Monthly Market Snapshot of the Calgary Real Estate Market This shows what’s really happening! The market is driven by supply and demand so here we show the inventory (supply) and sales (demand) and most importantly the relationship between the two and how it affects the price of Calgary Real Estate.  All numbers are taken from the Calgary Real Estate Boards Stats package for Realtors.  I have also included some general comments which are simply my opinion. This is must have information for Calgary Home Buyers and Calgary Home Sellers.

Absorption Rate (Months of Inventory)   (the inventory divided by the number of sales in the last month). What does this mean you might ask?

Buyer’s Market >4.0 Drives prices down
Balanced Market Between 2.4 to 4.0 Prices typically remain stable
Seller’s Market <2.4 Drives prices up

 

*** Absorption Rate***  

In my opinion this is the most critical number to look at.   Attached homes deceased by .30 this month.  Detached homes & Row Homes showed a small increase while apartment condos increased the most substantially adding 2.37 months of inventory.

 

July 2016 August  2016 Change
Detached 2.78 2.99 0.21
Semi Detached 3.60 3.30 -0.30
Attached – Row 4.77 4.88 0.11
Apartment 5.88 8.26 +2.37
Total City 3.61 3.95 0.34

 

Calgary Listing Inventory

September Inventory levels increased in all categories this month.   **** The increase was mostly in detached homes and I believe the reason is because the Real Estate Board merged commercial into the residential system and so it was simply a data change and not that true market.

Inventory July 2016 August  2016 Change
Detached 2720 2823 103
Semi Detached 497 515 18
Attached – Row 868 888 20
Apartment 1571 1651 80
Total City 5656 5877 221

 

Calgary Sales:

Sales in all categories except apartment condos stayed steady this month.  Apartment condos showed a 25% decrease from last month.   Of interest this is the first month where year over year sales showed an increase which is very positive news.

Calgary Sales   July 2016 August  2016 Change % Change
Detached 980 945 -35 -3.57%
Semi Detached 138 156 18 13.04%
Attached – Row 182 182 0 0.00%
Apartment 267 200 –67 -25.09%
Total City 1567 1488 -79 -5.04%

 

Calgary Real Estate Sales Prices: 

As you can see below there was not much movement in prices this month.

 

  Sales Prices July 2016 Benchmark Price    August  2016

Benchmark Price

 Change
Detached 503,200 503,400 +200
Semi Detached 387,100 386,500 -600
Attached – Row 310,000 311,100 +1,100
Apartment 274,900 274,700 -200
Total City 440,200 440,400 +200

 

Sales Prices “Year to Date”   

Year to date prices

Sales Prices Dec 31, 2015   Benchmark Price  August 2016 Benchmark Price Change

$

% Change
Detached 514100 503,400 -10,700 -2.08%
Semi Detached 393100 386,500 -6,600 -1.68%
Attached – Row 318500 311,100 -7,400 -2.32%
Apartment 288,000 274,700 -13,300 -4.62%
Total City 452800 440,400 -12,400 -2.74%

 

 Price Sensitivity

**Please note that these numbers do change on a community basis and more so for towns.  This report does not include rural properties.  If you would like to find stats on your community just let me know.  If you have any questions about this summary or Real Estate questions please feel free to contact us.

 

TSW Real Estate Group

 

 

 

 

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10 Reasons Why Your Home Probably Didn’t Sell!

Saturday, October 1st, 2016

This “FREE” report outlines 10 reasons why I believe you may have had trouble selling your home, while it was listed with another real estate company.  These suggestions reflect what I see as to why many homes listed do not sell during the listing period.  Please note that these reasons are only one REALTOR®’s conclusions and do not direct any accusations or suggest purposeful wrongdoing by any other real estate company and/or their agents.

  1. Your Property Was Priced Too High!                                                                                                                                                                                                                                                                        Like it or not, price is generally the main culprit when it comes to why homes do not sell.  Yes, the property might be in a poor location or have other negative factors impacting the value, but the bottom line is that somewhere out there, at “some” price, there is a buyer willing to purchase that property.  If the price is attractive enough, or priced below market value, there is always a buyer willing to purchase it.  Making certain your real estate is priced at market value is important, if you’re serious about selling.
  2. Your Property Was Not Listed On The Multiple Listing Service (MLS®).                                                                                                                                                                                                    If you opted to try selling your home on your own (FSBO), or to exclusively list your property with one REALTOR®, then your home may not have been exposed to enough buyers.  It’s imperative that your property be in the correct position on the MLS® to gain the maximum exposure to REALTOR®s selling property in your area.
  3.  Lack of Staging.                                                                                                                                                                                                                                                                                                                  Did your REALTOR® help stage the home or make suggestions as to enhance the marketability?  If not, this could be one of the downfalls of not finding a buyer for your property.  Remember that you can do all of the staging in the world, but if your property is priced too high, staging will not sell it.  One of the ways that you can determine if staging is a factor is by judging the number of showings you had.  A lot of showings and no offers could indicate that staging might help.
  4. Photos.                                                                                                                                                                                                                                                                                                                                      Many times, as a real estate professional, I have noticed properties listed that have had few, if any, photos or virtual tours featured on the listing.  Ask yourself if this may have played a role in the marketing exposure of your home.
  5.  Lack of Facts.                                                                                                                                                                                                                                                                                                            Sometimes a commonly overlooked aspect of marketing a home is a lack of relevant information. Facts about improvements made to the property can be a good marketing tool in building value in the minds of potential buyers. Are there any improvements being made to the community…new development, amenities, transportation improvements, etc?
  6.  Lack of Open Houses.                                                                                                                                                                                                                                                                                                  Many REALTOR®s do not like to hold open houses, as they assume that people not working with a real estate associate aren’t qualified or that it is just ‘nosy neighbors’ that check out open houses.  I believe it is important to expose your property to as many people as possible (other REALTOR®s and the general public). Open houses are excellent ways to get people inside your dwelling and then get them interested in the property! And if it is a neighbor checking it out, if they live in and love your neighborhood, they most likely know people, such as friends or family members, who have expressed interest in moving to their neighborhood.
  7.  Working with the Neighbors.                                                                                                                                                                                                                                                                                            Who has a vested interest in the sale of your home besides you… your neighbors!  That’s not too say that your neighbors will be glad to see you leave, only that they will have a concerned interest as to who might move in.  Usually if your neighbors know someone interested in your neighborhood and can help sell your property, they will!  This is generally a winning scenario for everyone involved.
  8.  No Internet Presence.                                                                                                                                                                                                                                                                                                        Unfortunately, many REALTOR®s still haven’t invested in establishing an online presence.  Many buyers are starting their home search online and relying upon it to find their next home. According to the National Association of REALTORS® (NAR®), 88% of home buyers in 2011 used the Internet in their home search. If your property is not properly positioned and presented on the Internet, today’s tech savvy buyers likely won’t even see it.
  9. Communication.                                                                                                                                                                                                                                                                                                                        One of the main functions of your REALTOR® in listing your property is to a make certain the listing is exposed to the other REALTOR®s in your community.  Networking with other REALTOR®s and participating in REALTOR® caravans or REALTOR® open houses is a positive marketing tool.
  10.  Dramatic Change in Market Conditions                                                                                                                                                                                                                                                Unfortunately, you can use the services of any REALTOR® and have your home positioned well based on the market conditions when you first enter the marketplace, but a sudden shift in market conditions, or major world events, can cause your home not to sell. Examples of this include a sudden unexpected increase in interest rates, the recent worldwide economic crises, a terrorist attack that causes uncertainty in the financial markets, war, etc.

Don’t be discouraged if your home did not sell the first go around.  Make sure your property is priced correctly; follow these suggestions, have a positive outlook and I’m certain your property will sell.

Sometimes a fresh new sign, a new marketing plan and a change of perspective can be a good thing for everyone involved.  If you think you might be ready for a new plan and some fresh ideas, I would love to visit with you.  Feel free to contact me.   Thanks for your time and I hope to hear from you soon.

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11 Myths About the Real Estate Industry

Friday, September 30th, 2016
  1. A referral is the best way to choose a REALTOR®

           Simply trusting that a REALTOR® has your best interests at heart can lead to disappointment. Your needs are unique. Qualify all REALTOR®s to ensure they are competent and motivated              to properly represent you.

  1. Pay off your mortgage quickly

           If you reduce your payment, or simply pay interest-only (secure line of credit financing) and invest the savings into a compounding interest account, your savings will be much higher than                the value of your original mortgage.

  1. You don’t qualify for a mortgage

          Regardless of your credit or income, anyone can purchase a house. Creative options such as joint ventures, vendor financing, second mortgages, and many more, provide endless                                    opportunities.

  1. When to buy real estate

           If the papers say that a city is booming, everyone wants to buy. Therefore, this is the perfect time to sell. When everybody is selling because of a recession, then you buy, while prices are rock            bottom.

  1. It’s all about price

          Negotiating mainly on the price of a property will limit your opportunity. If you can offer more favorable terms to the other party, then the price will become secondary.

  1. “#1 Agent”… Someone is lying

           Every agent seems to advertise that they are #1. You may not be getting the whole story (ex. 5 agents working under one name). Be careful of what you believe, as the criteria of measurement            may lack relevance, or be severely outdated.

  1. More experience the better

          If a REALTOR® has not kept up to date with the changing technology, regulations, market conditions, or modern service style, then all of their past experience won’t help you be properly                 represented.

  1. Super agents

         If an agent works alone, be careful. It is impossible for someone to be accessible at all times. Your business may be handled by a REALTOR® you have never met until your REALTOR® is                available.

  1. Every agent in a brokerage is the same

          REALTOR®s choose their own methods of customer service and business practices within their brokerage. Only very basic standards are in place, therefore, don’t assume one agent is the                 same as the next.

  1. Calling off signs is the best way to find a property

          A REALTOR® selling a property cannot represent their seller’s best interests and yours at the same time. This is a conflict of interest. Save yourself, potentially thousands of dollars, and find           your own REALTOR®.

  1. Banks are the best financing source

         Banks have different mortgage options, but can only ever provide you with their interest rates and handful of options to choose from. A mortgage broker works with most major banks, has                way more options and tons of different lenders’ interest rates to choose from. Plus, they can work to fit your schedule.

 

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301, 2311 29 Street SW Calgary T3E 2K1

Saturday, September 17th, 2016

Bright top floor unit is a well maintained 2 bedroom, 2 bath unit in Killarney Meadows, a concrete building.  Enjoy the inner city lifestyle with this awesome location in the heart of Killarney.   This unit boasts 960 square feet of living area.  Living room steps out to your 16 foot balcony.  Master Bedroom is spacious and offers a walk through closet and a 4 piece ensuite bath.  Complete the unit with a second Bedroom, 3 piece bath and a storage room with in suite laundry.  Includes titled heated underground parking.  Located walking distance to LRT, Restaurants, Shopping and Killarney Aquatic and Recreation center.  Easy commute to downtown.

MLS Listing # C4082489

For more information contact us

 

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