Archive for the ‘Home Sellers’ Category

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Another REALTOR® Says They’ll Buy My House. Should I Be Wary?

Tuesday, February 4th, 2020

Wary might not be the best word, but you do need to make sure you understand the details of the offer. This type of offer is a guaranteed sales agreement, and while there is nothing illegal or wrong with a real estate company offering this kind of arrangement, it is rarely the best option for consumers.

In a guaranteed sales agreement, a real estate brokerage agrees to buy a piece of real estate from a seller at a previously agreed upon price, if it hasn’t sold to someone else before a certain date. Only real estate brokerages can offer these agreements, not individual real estate professionals.

What sellers need to keep in mind in these arrangements is that the real estate brokerage wants to minimize its risk.

For example, it’s rare that a guaranteed purchase price will be based on the property’s listing price or the property’s market value. In most cases, the brokerage calculates the guaranteed purchase price using a formula where legal fees, carrying cost, and commission on the resale are subtracted from the purchase price. This minimizes the brokerage’s risk, but it can also greatly reduce how much that seller receives for their home.

Brokerages that offer guaranteed sales programs are required to have policies for those programs. Those policies should include how the brokerage sets the guaranteed sales price and who is in control of the property’s listing price during the listing period; it may not be the seller. It’s not unusual for a guaranteed sales agreement to include a clause that requires a seller to lower their listing price during the term of the listing. Remember, your real estate brokerage wants to minimize its risk. It prefers to sell your property to a buyer rather than to use the guaranteed sales agreement, and lowering the listing price can sometimes help that happen.

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Taking the Stress Out of Selling your Home

Tuesday, November 5th, 2019

For some people, the thought of listing their home for sale is stressful. They worry about all the things they have to do — and all the things that might go wrong. Luckily, it doesn’t have to be that way. Here are some tips for making your home sale go smoothly:

· Give yourself time to prepare. If you’re thinking of selling six months from now, start preparing your property     now. Do any necessary staging, and get it looking its best. Avoid doing these tasks at the last minute.

· Set the right price. Pricing your property too high will likely result in few, if any, buyers coming to see it. You     might end up having to lower your price later, causing your home to linger even longer on the market. That’s stress   you don’t need!

· Have a flexible viewing schedule.  Buyer’s view homes on their schedule – not yours. If you make it too difficult  for buyers to see your property, they might lose interest or simply choose to buy another home. Be as flexible as possible when a buyer wants to view your property.

· Plan get-away activities. When a buyer comes for a scheduled viewing, don’t be home. Instead, plan some fun activities for your family. Think: playground, shopping, cycling, the zoo, etc.

· Accept the ups and downs. Prospective buyers might say they love your home and plan to make an offer. Then you don’t hear from them again! It happens! Accept the inevitable ups and downs of selling your home.

· Get help with repairs. You’ll probably have things that need to be fixed around the home, like a dripping faucet that needs repair or a room that needs painting. If possible, hire a professional to do some of that work.

· Finally, work with a great real estate agent. That will make the biggest difference in ensuring your move goes smoothly and stress-free. Looking for a real estate agent like that? Call me!

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March 1, 2019 Calgary Real Estate Market Snapshot

Friday, March 1st, 2019

What is really happening in the Calgary Real Estate Market?

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.

Months of Inventory:  If we did not list any more homes this is how many months it would take to deplete inventory.

Months of Inventory/Absorption Rate – 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

 

Current Report:  March 1, 2019

This graph shows the 2 year Trend of the number of months of inventory for a housing sectors.

Graph shows the 2 year trend of months of Inventory of all sectors of homes in the Calgary Market.

Current Months of Inventory: 

In February our months of inventory decreased in every housing sector in Calgary.  Although we are certainly in a Buyer’s market this month all sectors moved toward a more balanced market which in my opinion is a great sign.

End of Jan 2019 Feb 2019 Change
Detached 5.83 5.04 -0.79
Semi Detached 7.64 6.63 -1.01
Attached – Row 7.64 6.98 -0.65
Apartment 9.31 8.73 -0.58
Total City 6.81 6.03 -0.78

 

 Calgary Listing Inventory

In February our months of inventory increased in all categories.  This increase is totally expected as we move further away from the holiday season.

Inventory (End of) Jan 2019 Feb 2019 Change
 Detached 2834 2987 153
Semi Detached 649 689 40
Attached – Row 817 908 91
Apartment 1173 1301 128
Total Calgary 5473 5885 412

 

 Calgary Sales:

Sales for February increased in all sectors compared to January.   Although the increase was not substantial it is good to see a change of direction.

Calgary Sales  Jan 2019 Feb 2019 Change % Change
Detached 486 593 107 22.02%
Semi Detached 85 104 19 22.35%
Attached – Row 107 130 23 21.50%
Apartment 126 149 23 18.25%
Total City 804 976 172 21.39%

 

***Sales Compared to last year***

In Feb our sales were 89.6% of last years sales so a decrease of 10.4%.  This trend in my opinion is expected to continue until our economy and consumer confidence change direction.  I am also starting to see and hear from clients who are getting ready to take advantage of the low prices which may kickstart things a little.

  Jan Feb Mar Apr May June July Aug Sept Oct Nov  Dec
2018 102% 82% 72% 80% 82% 89% 95% 93% 85.9% 89.9% 83.0 78.6
2019 83.8% 89.6%

 

Calgary Real Estate Sales Prices:

February saw a very small decrease in prices in detached and Semi-Detached homes.   Attached (Row) houses and Apartment condos showed a slight gain.  Based on our absorption rate (months of inventory) we can expect prices to continue to trend downward.

  Sales Prices Jan 2018     Benchmark Price  Feb 2019   Benchmark Price Change
Detached 476,500 475,600 -900
Semi Detached 393,100 392,500 -600
Attached – Row 284,300 284,600 300
Apartment 251,300 252,300 1,000
Total City 414,800 414,400 -400

 

 Sales Prices “Year to Date”  

Sales Prices Jan 2019    Benchmark Price  Feb 1, 2019    Benchmark Price Change

$

% Change
Detached 481,400 475,600 -5,800 -1.20%
Semi Detached 397,500 392,500 -5,000 -1.26%
Attached – Row 288,400 284,600 -3,800 -1.32%
Apartment 251,500 252,300 800 0.32%
Total City 418,500 414,400 -4,100 -0.98%

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

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Guaranteed Sold – My personal opinion!

Tuesday, February 19th, 2019

If it sounds too good to be true then it probably is!

In my opinion the program is simply a lead generating tool that earns Realtors business.  They use “Guaranteed Sale” on their marketing to attract leads but when the consumer finds out the “Terms and Conditions” there is not a chance they will use the program but they often end up listing with the Realtor anyways.

Why do I say this:  I looked into a Real Estate Website development company and here is what I found.   This company creates web sites for Realtors and below are a couple of clips from their site.

Here is another clip selling this to Realtors.


This quote I found on an agents website.  “Many homeowners are not initially pleased with the guaranteed price of their home because it does not reflect the true value of the property”

I was able to get my hands on a couple of agreements from different Brokerage’s and here are just some Terms and Conditions you might see. It is important to know there are other agreements out there that may be substantially different – this is just one example.

  • How is Price determined? They complete a Comparative Market Analysis and then deduct the Realtor commission and then deduct up to 10%.  In other words a house with a market value of $400,000 the Guaranteed Sales Price would be less than $350,000
    • As a Realtor I know that if you put any property on the market for even 5% under true market value it will most likely be sold in a day and most often with competing offers.
  • No One Ended Guarantees – It is a requirement that the seller purchase another property of equal or greater purchase price.
  • If you cancel the contract then you must still pay full real estate commissions.
  • The contract will be conditional to a home inspection at Sellers cost and seller shall be responsible for fixing all defects identified. If not completed the brokerage can terminate the entire agreement

Just my opinion it’s no wonder consumers would not sign an agreement like this.

Here is what the Real Estate Council of Alberta has to say about Guaranteed sales programs.

RECA

In summary, If it sounds too good to be true then it probably is!  The Brokerages offering this Guarantee want nothing to do with buying your home – it is simply a lead generating tactic.

As a Realtor, I do not and would not ever use this program as I feel that it deceives the public and in my opinion that is not right!

As a consumer if I called a company to sell my home based on Guaranteed Sale advertising,  I would feel tricked once I learned the details and that is not how I run my business.

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3 Not-So-Obvious Indicators it’s Time to Sell

Saturday, October 6th, 2018

There are many good reasons to put your property on the market. Some examples include a relocation, the kids leaving the nest, the need for something bigger or smaller, and the list goes on and on.

However, there are also some less-than-obvious indicators that it may be time to sell. Consider the following:             1. Your Property is no longer a Good “Fit” Your home may have been perfect for you when you bought it. But things change. Families grow. Needs evolve. For any number of reasons, your property may no longer be a good fit for you. If that’s the case, it makes sense to at least take a look at what’s available on the market. Who knows? Your next “perfect” home may be for sale right now — within your price range!                                                                                       2. The Neighbourhood is Changing.  You may have been in love with the neighborhood when you first moved in. But, over time, the characteristics of any area can change. Those changes don’t necessarily mean the neighborhood is getting worse. In fact, it may be changing in a positive way; perhaps becoming more urban. But, “more urban” may not be what you want. So take a look at the direction your neighborhood is heading. Ask yourself, “Do I still want to be living here in two years?”                                                                                                                                                                3. You’re Ready for Your Dream Home Remember when you purchased your current property? Did it have every feature you wanted? Was it your dream home? Or, did you have to compromise on a few things, such as the size of the kitchen? If you had to make some tough choices back then, it might be time for you to finally get the home of your dreams.

Those are just three indicators it may be time for you to make a move. Of course, there are many others. If you’ve been entertaining the idea of selling your property and finding your next dream home,  give me a shout, I can show you what’s available on the market, and keep you informed of new listings that match what you’re looking for. Contact me anytime.

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What Type of New Home Are You Qualified to Buy?

Friday, September 14th, 2018

When you think about looking for a new home, one of the first questions that probably comes to mind is: “What type of property can I afford?”

That’s an important question because your price range is a major determining factor in the types and sizes of homes you should be viewing. You don’t want to waste time looking at properties that are beyond your price range. At the same time, you don’t want to purchase a less-than-ideal home, only to realize later on that you could have afforded more. So how do you determine what type of new home you are qualified to purchase?

The first step is to find out what your current property would likely sell for in today’s market. I make that calculation for clients all the time. It involves reviewing what homes similar to yours have sold for recently, as well as other data — such as special features your home may have that are likely to boost the selling price.

Once you know the current market value of your home, subtract any outstanding mortgages and estimated selling expenses, and you’ll end up with an amount that can be applied to the purchase of your next home. (You may also have other funds you want to use.)

The next step is to talk to a lender or mortgage broker to see how much of a new mortgage you qualify for. (Contact me if you need a recommendation.) It’s important to get a proper Pre-Qualification or Pre-Approval. That makes the offer you make on a new home more credible and will also lock you into an interest rate. If you want to find out the types and sizes of homes you can get into, give me a call. I’d be happy to show you the possibilities!

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5 Ways to Make the Selling Process Stress-Free

Thursday, September 6th, 2018

For some homeowners, the process of listing, showing and selling their home can be stressful. Fortunately, there is plenty you can do to make it much less nerve-racking—and even exciting and enjoyable. Here are some ideas:

1. Make a plan. Decide when you’re going to show your property, search for a new home, view listings, etc. Block out these times in an agenda book or calendar. That way, you and your family can see what’s coming up.                                 2. Be flexible. Few things go exactly as planned! So, it’s important to build in flexibility. For example, you may plan to see homes for sale on Saturdays, but if an opportunity comes up on a weeknight, give yourself room in your schedule to jump on it.                                                                                                                                                                             3. Eat well. There are numerous studies that connect poor nutrition with increased stress. When people are selling and moving, there’s a tendency to rely on quick fixes, such as hot dogs and pizza! Try to plan more nutritious meals that will keep everyone healthy and energized.                                                                                                                               4. Get stuff done early. Doing things last minute, such as finding a real estate lawyer or getting rid of clutter, can quickly lead to stress and frustration. Whenever possible, get tasks done early. That way, you won’t have to worry about them.                                                                                                                                                                                             5. Hire the right professionals. By far, the surest way to a stress-free move is to get the right professionals working for you: everyone from contractors to mortgage brokers to movers. By the way, a big part of what I do for clients is help make every aspect of buying, selling and moving go smoothly. Contact me to learn how I can help you.

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Four Things You Should Know About Staging

Tuesday, August 28th, 2018

You’ve probably heard about “home staging”. As the name implies, it’s all about arranging each room in your home in a way that will make the best impression on buyers. Here’s what you need to know about staging if you’re thinking of listing your property.                                                                                                                                                                         1. Staging can get you a higher price. On average, a fully-staged home tends to sell for 17% more than an unstaged home of the same type in the same local market. Depending on the current market value of your property, doing some staging in your home could put thousands of extra dollars in your pocket, post-sale.                                                    2. It can speed up the sale. A study by the Real Estate Staging Association (RESA) showed that fullystaged homes spend an average of 90% less time on the market. So, if you need to sell quickly – without dropping your price – or you just want the comfort of having offers come in sooner, staging will definitely help.                                                        3. You don’t have to go crazy. Completely staging every room in your home is going to give you the full benefits of this strategy. However, you don’t have to go that far. In fact, just implementing a few simple staging techniques to some key rooms can make a big difference.                                                                                                                                                4. Get professional help or advice. When it comes to home staging, don’t guess at it. Get professional help or advice. As a REALTOR®, I have a lot of expertise in this area and always offer sellers a free Staging Consultation.

Contact me anytime.

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Beware of Over-Downsizing or Over-Upsizing

Tuesday, August 21st, 2018

Buying a new pair of shoes is relatively easy. Once you find the style you like, all you need to do is try them on and see if they fit. If they do, you go to the cash register and pay. When it comes to size, buying a new home can be trickier! Whether your intention is to upsize or downsize, figuring out the right size can be especially challenging. Say for example, you’re downsizing from a large two-story home to a smaller bungalow. You don’t want to underestimate the space you need and end up in a place that feels tight.                                                                                                                    If you’re going the other way and upsizing, you don’t want to end up sinking extra money into a property that’s larger than you really need. So how do you avoid these scenarios? One of the best ways is to start by considering your current home. Do you use all the rooms in your home regularly? Is there a bedroom that’s rarely occupied? Has the recreation room become simply a storage area? If you’re downsizing, subtracting rooms you scarcely use can give you a better idea of what you need in a new home.                                                                                                                                  Upsizing is a bit more challenging because you have to anticipate what you will need in the future. For example, if you have young children, and your place is feeling cramped, then a home with a recreation room or separate family and living rooms may be a good idea. You may also need a bigger kitchen with a spacious eating area (in addition to a separate dining room.) Think about the extra room you’ll need and how you’ll use that space. When I work with a client, I typically sit down with them and discuss the type of home they want in detail — and, based on needs and circumstance, I make expert recommendations. Bottom line, I help clients find the perfect fit in a new home. Contact me if you’d like to learn more.

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Does your home match the lifestyle you desire?

Tuesday, August 14th, 2018

Subtle Signs it May Be Time to Sell  Sometimes the reason for putting your home on the market is crystal clear. For example, you might have a job relocation and need to move. Or, you might have decided to downsize because the kids have left the nest. However, there are many other motivations to list your home that are not as obvious, and yet are still good reasons to make a move. Here are just a few examples…

  • You’re bored with your home and are looking for a change
  • There’s something you’ve always wanted in a home that your current property doesn’t have, such as a wooded backyard.
  • You want to be closer to work, or to activities you enjoy, such as golf.
  • There’s another neighborhood you’ve always dreamed of living in.
  • Your tastes have changed and you want to live in a different type of home.

None of these reasons makes it an absolute necessity to list your property and find a new home. Yet, they’re all worth considering, especially if moving will make you and your family happier, and provide you with a more desirable lifestyle. Want to talk about the possibilities?

Call today.

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