For all those first time buyers or those who have been waiting for the right time to move into a bigger household, now is your time. With housing prices dropping and interest rates at record lows, now is the time to consider purchasing a home.
House prices across Canada fell nearly 10 per cent and sales slipped 42 per cent in November compared with the same month last year, a drop the Canadian Real Estate Association says it hasn't seen since the last housing recession nearly two decades ago.
CREA said 27,743 homes were sold last month across Canada, a drop of 12.3 per cent compared to October and "the lowest level for monthly activity since January 2001." That follows a 14-per-cent sales drop in October, compared to the previous month.
Housing and commercial real estate prices plunged in the late 1980s after a sharp spike in real estate prices for several years when the economy was booming. The housing decline led to a price drop of up to 20 per cent in many markets and was triggered by rising mortgage rates and the lingering impact of the 1987 stock market crash
The current situation in real estate has resulted from tighter credit markets and the general national economic condition. The chief economist for CREA said "What we are seeing is a broad trend across Canada of very cautious buyers, and very cautious lenders." What we are experiencing now is that more and more people are now unable to secure mortgages. People who were previously eligible for mortgage loans are now finding it more difficult.
But is this a bad thing? The real estate catastrophe in the Unites States stemmed from lenders providing loans to people who should not have been eligible in the first place. In some cases, people simply had to submit intentions of a future job to secure a loan.
Jim Murphy, president and CEO of the Canadian Association of Accredited Mortgage Professionals, said there's no question lenders are being more thorough in reviewing their borrowing customers in the current economic environment. "However, if you have steady employment, a good income and a healthy credit score you shouldn't have any difficulty in securing a mortgage," Murphy said. So, rather than viewing this as a negative, we should be viewing this situation as lenders finally being responsible and sensible.
Scotiabank economist Adrienne Warren agrees there is more scrutiny from lenders today. She pointed to the cancellation of the 40-year, no money down payment mortgage product in October, which has resulted in some "buyers at the margin being unable to get credit."
Warren said the sales drop is due to many home buyers putting off the purchase in the current recessionary environment, where layoffs are being announced across all industries. It is understandable that buyers are nervous, but if you have steady employment and good credit, now is actually the time to be considering a real estate purchase as interest rates are the lowest they have been in years!
If you have been considering a real estate purchase but are unsure about when is the best time for you to act, please call me at 905-220-9198 or send me an email with your questions and concerns. I would be more than willing to sit down with you to review the current market situation, mortgage rate trends and housing availability and affordability. I can also help you set out a realistic plan to save for your down payment and outline the steps required to pave the road to home ownership.
With housing prices at the levels they are currently coupled with interest rates at record lows, now is really the time to seriously consider purchasing real estate. Please check out one of my other posts entitled "buying up in a down market" to illustrate the benefits of purchasing right now!
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Sunday, December 21, 2008
Thursday, December 11, 2008
OPEN HOUSE THIS SATURDAY DECEMBER 13th
Affordable Oakville beauty just got more beautiful! Sellers have given their bathroom a facelift at no extra cost to you. Approximately $6000 in improvements in the last three months.
Come by #121-1050 Falgarwood Drive on Saturday December 13th between 2:00pm and 4:00pm to see all of the updating. You won't find a better bargain than this Oakville townhouse. Listed at $175,900, with all the upgrades, makes this property a steal!
You can own this property for payments as low as $385.70.
Who would have thought Oakville living could be this affordable? Come early on Saturday as this property has been priced to sell and it won't be available for very long. Check out the MLS listing @ http://www.realtor.ca/PropertyDetails.aspx?PropertyID=7775546
See you there.
If you have any questions, please call Sean @ 905-220-9198
Friday, November 28, 2008
BEEN WAITING FOR OAKVILLE TO BECOME AFFORDABLE? YOUR OPPORTUNITY IS NOW!!!
A high demand ground floor 2 level suite in desirable Oakville locale. A perfect home for first time buyers. Freshly updated in contemporary design and décor. Walkout to patio and gorgeous treed area from open concept dining/living room. Oversized master bedroom with walkout porch and 2 walk in closets. Neighbourhood stocked full of amenities! Close to QEW, schools, Sheridan College, Go transportation, parks, shopping and restaurants. UTILITIES INCLUDED in one small payment!!!!!!!!! Heat + Water + Hydro + Building Insurance + Parking + Common Elements + Cable T.V. ALL OF YOUR MONTHLY BILLS PAID IN ONE CHEQUE!
Visit www.seansells.ca for a 24/7 open house experience OR call 905-220-9198 for a personal viewing.
Saturday, November 22, 2008
Canada's "Sober and Sensible" Banking System.
According to the governor of the Bank of Canada, the global financial crisis could have been avoided if every country had had a banking system like Canada's. He went on to say that the world would have been spared this global financial catastrophe if other international economic powers had a banking system “as sober and sensible” as ours. The World Economic Forum has recently rated Canada as having the soundest banking system in the world.
"What we did was that we had an absolute restriction on how much leverage, how much borrowing our banks could do," he said. Taking a swipe at the failed system to the south, he went on to add that Canada was most sensible in refraining from handing over money to unqualified borrowers. The States were offering “Sexy” options for anyone wanting to borrow “but it turns out some of the sexier things that they were doing were quite foolish.”
Banks have made terrible decisions that have “short circuited some of the very basic aspects of banking.” While other international banking systems are trying to stop the unravelling of their financial sectors, Canada has already put in place certain measures to prevent such a disaster. Eliminating the 40 year, zero money down option was the start. The government has also reinforced its banking systems with loan guarantees to prevent the slide into economic despair. A slide many other economic powers of the world will be unable to avoid.
It is important to note that although our economy has significant ties to our friends from the south, our banking system remained independent and developed a safer, more sensible policy on protecting our economy.
For more information on current market trends and activity, please visit me at my website www.kavanaghrealestate.ca or continue to read my blog posts at www.seankavanagh.ca.
"What we did was that we had an absolute restriction on how much leverage, how much borrowing our banks could do," he said. Taking a swipe at the failed system to the south, he went on to add that Canada was most sensible in refraining from handing over money to unqualified borrowers. The States were offering “Sexy” options for anyone wanting to borrow “but it turns out some of the sexier things that they were doing were quite foolish.”
Banks have made terrible decisions that have “short circuited some of the very basic aspects of banking.” While other international banking systems are trying to stop the unravelling of their financial sectors, Canada has already put in place certain measures to prevent such a disaster. Eliminating the 40 year, zero money down option was the start. The government has also reinforced its banking systems with loan guarantees to prevent the slide into economic despair. A slide many other economic powers of the world will be unable to avoid.
It is important to note that although our economy has significant ties to our friends from the south, our banking system remained independent and developed a safer, more sensible policy on protecting our economy.
For more information on current market trends and activity, please visit me at my website www.kavanaghrealestate.ca or continue to read my blog posts at www.seankavanagh.ca.
Friday, November 21, 2008
Buying up in a down market!
Have you been waiting for a time when home ownership would become affordable again? Now is that time! With housing prices as low as they are, it is now easier for the renters who always wanted to buy, for the young couple in the townhouse or condo that have been waiting to buy the larger house with a great yard, or for the family who have always wanted to afford a cottage....now is the time! For those of you discouraged with the down turn in the real estate market, fret no more! I will outline for you how buying now makes perfect economic sense.
Let's say that the market has decreased the value of homes by 10%. You are currently living in a condo/townhouse that was valued at $180,000 2 years ago. You have always wanted the bigger, detached house with a yard for the kids to play, but the value drop of 10% has now placed your lovely property at a new value of $162,000. TERRIBLE!..or is it? Well, consider this. If your property has dropped 10%in value, so would the value of your next property. If $400,000 was the maximum your family was willing to spend for the purchase of your next property, and considering the 10% reduction in value, a house that was worth $420,000 2 years ago has now come down well within your budget at a very affordable $378,000! To analyse this further, look at the savings in value by buying in the down market.
Current home net difference = $180,000 - $162,000 = $18,000
Future home net difference = $420,000 - $378,000 = $42,000
Total net difference = $24,000
By moving up now, you are saving yourself $24,000 in value than if you would have bought at the peak of the market.
Many people have said they want to wait until the market bottoms out before they buy. Please consider that the bottom of the market is not an absolute position, but rather a relative position to a rising market. The only time you will know the market has bottomed out is when it begins to rise again. This is reason in itself to buy before the market begins to go up. You must also consider certain economic activities that occur in a market that is sloping downward, as opposed to a market that has reached bottom and has begun to move back in an upward direction. In a downward market, interest rates tend to be lower in attempts to stimulate activity, housing inventory is abundant, bidding wars are uncommon making for a more relaxed home shopping experience and you get to live in your dream home sooner! As the market turns and begins to rise, interest rates start to rise with it. More buyers come back on the market, creating more completion, reducing the amount of available housing while driving up the prices.
If you are interested in learning more about the direction of the market, the value of your own property or the affordability of your next home, please contact me for a free consultation.
Let's say that the market has decreased the value of homes by 10%. You are currently living in a condo/townhouse that was valued at $180,000 2 years ago. You have always wanted the bigger, detached house with a yard for the kids to play, but the value drop of 10% has now placed your lovely property at a new value of $162,000. TERRIBLE!..or is it? Well, consider this. If your property has dropped 10%in value, so would the value of your next property. If $400,000 was the maximum your family was willing to spend for the purchase of your next property, and considering the 10% reduction in value, a house that was worth $420,000 2 years ago has now come down well within your budget at a very affordable $378,000! To analyse this further, look at the savings in value by buying in the down market.
Current home net difference = $180,000 - $162,000 = $18,000
Future home net difference = $420,000 - $378,000 = $42,000
Total net difference = $24,000
By moving up now, you are saving yourself $24,000 in value than if you would have bought at the peak of the market.
Many people have said they want to wait until the market bottoms out before they buy. Please consider that the bottom of the market is not an absolute position, but rather a relative position to a rising market. The only time you will know the market has bottomed out is when it begins to rise again. This is reason in itself to buy before the market begins to go up. You must also consider certain economic activities that occur in a market that is sloping downward, as opposed to a market that has reached bottom and has begun to move back in an upward direction. In a downward market, interest rates tend to be lower in attempts to stimulate activity, housing inventory is abundant, bidding wars are uncommon making for a more relaxed home shopping experience and you get to live in your dream home sooner! As the market turns and begins to rise, interest rates start to rise with it. More buyers come back on the market, creating more completion, reducing the amount of available housing while driving up the prices.
If you are interested in learning more about the direction of the market, the value of your own property or the affordability of your next home, please contact me for a free consultation.
Friday, November 14, 2008
Open House - Sunday, November 16 from 2:00pm - 4:00pm
Come visit us at 2240 Greening Lane on Sunday, November 16th between 2:00pm and 4:00pm to view this Bronte Woods beauty! 3 bedroom, 3 bathroom freehold townhouse located near Appleby Line and Upper Middle Road.
Ensuite bathroom, single car garage, main floor laundry and eat-in kitchen.
Get there early as the recent price drop will have it sold quickly!
For more information on this great property, call me at 905-220-9198, send me an email at sean.kavanagh@century21.ca or just browse my website at www.kavanaghrealestate.ca.
Hope to see you all at the open house.
OPEN HOUSE - SATURDAY NOVEMBER 15TH - UPPER MILLCROFT TOWNHOME
COME VISIT US AT 2963 GUIRE COMMON THIS SATURDAY BETWEEN 2:00PM AND 4:00PM TO VIEW THIS STUNNING FREEHOLD IN MILLCROFT.
AWARD WINNING "MONARCH" UPPER MILLCROFT SOPHISTICATED OPEN CONCEPT STYLE TOWNHOME FEATURING - PORCELAIN TILES IN FOYER - EXPRESSO HARDWOOD AND STAIRS WITH WROUGHT IRON PICKETS - FORMAL LIVING ROOM AND DINING ROOM WITH COZY GAS FIREPLACE - LARGE EAT-IN KITCHEN WITH TALL CABINETRY, RAISED BREAKFAST NOOK, AND WALKOUT TO FENCED BACKYARD - MASTER BEDROOM WITH HUGE WALKIN CLOSET AND 4PC ENSUITE - UPPER LEVEL LAUNDRY - 2 MORE SPACIOUS BEDROOMS COMPLETE THE UPPER LEVEL - PROFESSIONALLY FINISHED LOWER LEVEL WITH PLENY OF STORAGE ROOM.
FOR MORE INFORMATION ON THIS PROPERTY, PLEASE LOOK TO MY WEBSITE OR GIVE ME A CALL AT 905-220-9198.
IF YOU ARE LOOKING FOR A FRIENDLY, DILIGENT AND HARD WORKING SALES REPRESENTATIVE, PLEASE COME BY TO VIEW THE PROPERTY SO WE CAN HAVE A CHAT ABOUT YOUR NEEDS.
Thursday, November 13, 2008
Toronto Real Estate Market Report - October 2008
GTA sales down 35%; Toronto down 38%
Toronto Real Estate Board Members reported 5,155 sales in October, down 35 per cent from the 7,915 sales reported in October of 2007, and also down 25 per cent from the 6,876 sales reported during October 2006. Within the City of Toronto, 2,136 sales were recorded. This was down 38 per cent from the 3,455 sales recorded in October of last year. In the 905 suburbs, however, the 3,019 sales recorded were down 32 per cent from October 2007's figure of 4,460.
GTA-wide, prices declined 10 per cent to $352,974 from last October's average of $394,646. They were down one per cent over the average recorded in October 2006 of $356,423. As with sales, price declines differed according to region. The City of Toronto average was $376,896, down 13 per cent from the $434,022 recorded during the same month in 2007, and down about three per cent from the $386,807 recorded in October 2006. Meanwhile, the average for the City's 905 suburbs was $336,049.This is down eight per cent from the $364,142 recorded last October, and up one per cent from the $333,166 recorded in October 2006.
Breaking down the total, 2,064 sales were reported in TREB's 28 West districts and averaged $335,329; 892 sales were reported in the 14 Central districts and averaged $450,437; 946 sales were reported in the 23 North districts and averaged $382,032; and 1,253 sales were reported in TREB's 21 East districts and averaged $290,719.
For market information specific to your area of Toronto, or any other area of interest, please call or send me an email so I can send this valuable market information to you on a regular basis.
Sean Kavanagh
www.seankavanagh.ca
www.kavanaghrealestate.ca
Source: Toronto Real Estate Board
Burlington Real Estate Market Report - October 2008
Burlington, Ontario: Although I reported last month that Burlington was holding steady in most categories, it seems the region is finally showing a downward turn and with increased inventory and decreasing prices, the market has shifted in favour of the buyer.
Average prices were $368,268 in October 2007 to $322,088 in October 2008 representing a 12.5% fall from this time last year. There was also a sharp drop in prices from last month from an average in September of $370,479 to a year low $322,088 in October.
Although the October statistics look bleak, the area is still showing an overall 5% increase in prices from last year. Sellers are receiving 92% of their asking prices for their properties, down from 96% last month and down from 97% this time last year. Houses are currently remaining on the market for an average of 44 days and Burlington has sold 217 units this month, compared to 289 units sold this time last year marking a decrease of 25% or 72 units.
If you were looking for the time to buy a home in the beautiful city of Burlington, this is it! Find your dream home at an affordable price if you start looking today!
For market information specific to your area in Burlington, or any other area of interest, please call or send me an email so I can send this valuable market information to you on a regular basis.
Sean Kavanagh
www.seankavanagh.ca
www.kavanaghrealestate.ca
Oakville Real Estate Market Report - October 2008
Oakville, Ontario: If you were ever looking for the right time to buy in Oakville, don’t wait any longer as now is the time. With decreased prices and a large inventory of properties, this market has turned into a buyers dream!
Average housing prices in Oakville have dropped from $541,683 in October 2007 to $461,882 in October 2008 representing a 14.7% decrease. Prices have also dropped from $495,121 in the month of September to $461,882 in October. Sellers are still receiving 96% of their asking prices for their properties, houses are currently remaining on the market for an average of 50 days, 10 days longer than last month, and Oakville has sold a year low 163 units this month, compared to 295 units this time last year marking a decrease of 44.75% or 132 units.
For everyone who has always dreamed of living in the beautiful area of Oakville, now is the time to find your dream home at a price you can afford!
To stay current with real estate market information in the Oakville area, or any other area of interest, please call or send me an email so I can send this valuable market information to you on a regular basis.
Sean Kavanagh
www.seankavanagh.ca
www.kavanaghrealestate.ca
Wednesday, November 5, 2008
Open House - Saturday, November 8 from 2:00pm - 4:00pm
Come visit us at 2240 Greening Lane on Saturday, November 8th between 2:00pm and 4:00pm to view this Bronte Woods beauty! 3 bedroom, 3 bathroom freehold townhouse located near Appleby Line and Upper Middle Road.
Ensuite bathroom, single car garage, main floor laundry and eat-in kitchen.
Get there early as the recent price drop will have it sold quickly!
For more information on this great property, call me at 905-220-9198 or send me an email.
Hope to see you all at the open house.
Wednesday, October 29, 2008
Canada’s housing market stabilizes in third quarter
The number of properties listed in some of Canada’s major markets was down this quarter. This shift can be interpreted as a shift towards a more balanced sales-to-new-listings ratio. To achieve what would be considered a “balanced market”, we look for the number of sales to equate to the number of houses put on the market for sale. Calgary, Edmonton, Vancouver and Montreal have all shown slight drops since the previous quarter. The third quarter indicates that we are headed in the direction of a more balanced market.
"Informed buyers and informed sellers look at the facts. And the facts right now indicate the real estate resale market is stabilizing in many markets," says Calvin Lindberg, the President of The Canadian Real Estate Association.
"There have also been a number of initiatives that will have an impact going forward, including the government’s decision to invest $25 billion in insured mortgage pools, the recent drop in the Bank of Canada rate, and the new rules reducing the maximum amortization to 35 years instead of 40," the CREA President adds. The new mortgage rules took effect October 15th. "The third quarter MLS® statistics and these developments are more factors showing the Canadian market is not following U.S. housing trends."
Sales activity remains similar to that of last year, but prices, on average, have dropped slightly in the more expensive markets. This is due to an increase in the sale of houses of lesser value and lower sales activity in the higher priced markets.
"As the Canadian housing market and pricing environment cools, the number of days on market for sales is likely to rise. By and large, Canadian home sellers are under no financial duress to sell. Canadian homebuyers should not expect to see the kind of price correction that’s underway in the U.S., where overly indebted homeowners are selling into a housing market where foreclosures and the number of newly constructed unoccupied homes are increasing."
Wednesday, October 15, 2008
Burlington Real Estate Market Report - September 2008
Burlington, Ontario: Although there is a lot of news permeating our print and airways regarding a softening real estate market, Burlington still seems to be holding strong. Burlington is still experiencing an increase in average housing prices for the month of September from last year to this year. Average prices were $329,416 in September 2007 to $370,479 in September 2008 representing a 12.47% increase. Housing prices have also steadily increased from January of this year through to September. In January, the average price for a house in Burlington was $351,691. Prices have risen throughout the year by 5.34% to an average of $370,479 in September. Sellers are still receiving 97% of their asking prices for their properties, houses are currently remaining on the market for an average of 44 days and Burlington has sold 248 units this month, compared to 254 units this time last year marking a decrease of 2.36% or 6 units.
For market information specific to your area in Burlington, or any other area of interest, please call or send me an email so I can send this valuable market information to you on a regular basis.
Sean Kavanagh
www.seankavanagh.ca
www.kavanaghrealestate.ca
Oakville Real Estate Market Report September 2008
Oakville, Ontario: Although there is a lot of news permeating our print and airways regarding a softening real estate market, Oakville seems to be showing some resistance. Oakville is still experiencing an increase in average housing prices for the month of September from last year to this year. $466,802 in September 2007 to $479,853 in September 2008 representing a 2.8% increase. Housing prices have also steadily increased from January of this year through to September. In January, the average price for a house in Oakville was $476,883. Prices have risen throughout the year by 8.18% to an average of $515,915 in September. Sellers are receiving 96% of their asking prices for their properties, houses are currently remaining on the market for an average of 40 days and Oakville has sold 212 units this month, compared to 267 units this time last year marking a decrease of 20.6% or 55 units.
For market information more specific to your area of Oakville, please call or send me an email so I can send this valuable market information to you on a regular basis.
Sean Kavanagh
www.seankavanagh.ca
www.kavanaghrealestate.ca
Friday, October 10, 2008
PM says we’re OK.
Recent popular belief is that Canada will fall into the disastrous economic situation that has crippled the U.S. economy. As our economy is affected by what happens south of the boarder, it is important to understand that we have been able to maintain a solvent banking system (where the U.S. has failed) and our government has implemented measures to prevent a collapse of our real estate market (no more 40 year amortizations with zero money down). The U.S. is suffering due to the vast number of mortgage defaults and questionable lending policies. These factors alone have our Prime Minister feeling confident we will avoid the facing a similar situation to that in the U.S.
We will see a decrease in sale prices and housing inventories will rise, but this adjustment is simply to bring back balance to the market. As Canada has avoided the dreadful banking situation and sub-prime lending, the financial institutions are not in jeopardy. Canada has recently been rated as the ‘World’s Soundest Banking System’ according to a world economic forum report on global competitiveness. The U.S. was rated 40th, just below economic powerhouses such as Estonia, Barbados and Namibia.
We are fortunate our government monitors our financial systems much more closely than our ‘Wild West’ cousins to the south. It is for this reason we have avoided a similar economic meltdown. Most economists feel that we are headed for a market correction rather than a crash. Some markets within Canada have been growing at such an unsustainable rate that there is a correction presently occurring to bring back balance.
We will see a decrease in sale prices and housing inventories will rise, but this adjustment is simply to bring back balance to the market. As Canada has avoided the dreadful banking situation and sub-prime lending, the financial institutions are not in jeopardy. Canada has recently been rated as the ‘World’s Soundest Banking System’ according to a world economic forum report on global competitiveness. The U.S. was rated 40th, just below economic powerhouses such as Estonia, Barbados and Namibia.
We are fortunate our government monitors our financial systems much more closely than our ‘Wild West’ cousins to the south. It is for this reason we have avoided a similar economic meltdown. Most economists feel that we are headed for a market correction rather than a crash. Some markets within Canada have been growing at such an unsustainable rate that there is a correction presently occurring to bring back balance.
Canada rated as the world’s soundest banking system.
For those of us concerned about how the much publicized American financial meltdown will permeate north of the border, we should all take some relief in knowing that a World Economic Forum Report on global competitiveness has rated Canada’s banking system as the soundest system in the world.
These statistics were released to quell the panic due to the global financial crisis and bank failures. To help rectify the situation, halt panic selling and to restore some trust in world banking systems, central banks in Europe, the UK, the United States, China, Canada, Sweden, and Switzerland have slashed interest rates.
Canada scored a world high 6.8 points out of a possible 7 points. Sweden, Luxembourg, Austria and Denmark scored close behind at 6.7. The well documented crisis in the U.S. has them ranked 40th, just behind Estonia, Barbados, and Namibia.
Although our two countries are close geographically and it would be naïve to report we weren’t linked economically, it is important for Canadians to understand that we have financial systems in place to prevent the crisis that has paralyzed the U.S.
These statistics were released to quell the panic due to the global financial crisis and bank failures. To help rectify the situation, halt panic selling and to restore some trust in world banking systems, central banks in Europe, the UK, the United States, China, Canada, Sweden, and Switzerland have slashed interest rates.
Canada scored a world high 6.8 points out of a possible 7 points. Sweden, Luxembourg, Austria and Denmark scored close behind at 6.7. The well documented crisis in the U.S. has them ranked 40th, just behind Estonia, Barbados, and Namibia.
Although our two countries are close geographically and it would be naïve to report we weren’t linked economically, it is important for Canadians to understand that we have financial systems in place to prevent the crisis that has paralyzed the U.S.
Monday, September 22, 2008
Problems with Overpricing
When you sit down to decide what price you should list your property at, there are a few questions you need to ask yourself.
How did you come up with that number? Is that price going to get my home sold quickly, with maximum profit? If you simply checked MLS prices to determine where you want your property priced at, you could be making a few costly errors:
1) Without having a sales representative complete a comprehensive market evaluation of your property, you may not be considering all of the factors that help to determine price.
2) Remember! MLS only displays list prices. You should always base your price on properties that have already been sold…..not on houses that are currently for sale.
Here are a few other potential problems that can occur if you overprice your home:
• You will make other similar properties look like a bargain. You are effectively helping to sell all other houses…except your own!
• Where properly priced houses will sell in a reasonable amount of time, your overpriced property will sit on the market collecting dust.
• Sales representatives will avoid showing your house to potential qualified buyers. With a surplus of houses on the market, it won’t be worth their time showing clients overpriced houses.
• You could create a negative impression of the property before people even have a chance to step inside.
• With the house staying on the market for longer than desired, you could end up having to accept less money than if you were to price it properly in the first place. The longer your house stays on the market, the more chance it will be deemed stale or riddled with problems. This is a downward spiral you don’t want to find yourself in.
Here are a few factors that should not affect your asking price:
• The original cost of the property. As price is determined by current market conditions, you can’t consider what you originally paid for the house.
• Your emotional attachment to the house. Your emotions have no affect on what a buyer is willing to pay.
• The opinion of friends, family or neighbours. Sales representatives can assist you in understanding current market conditions and use the prices of recently sold properties to determine the most appropriate price for your home.
If you are considering selling your house, give me a call for a free market evaluation. We’ll look at recently sold properties and current market conditions to determine a price that will have your house sold quickly while yielding maximum profits.
Thanks for reading. Please visit again soon for current and relevant information on the Burlington, Oakville and Toronto real estate markets. If there are any questions you may have regarding market conditions, mortgage rates, investing in real estate or how to sell your house for maximum profit, please don’t hesitate to call or email me with whatever is on your mind.
How did you come up with that number? Is that price going to get my home sold quickly, with maximum profit? If you simply checked MLS prices to determine where you want your property priced at, you could be making a few costly errors:
1) Without having a sales representative complete a comprehensive market evaluation of your property, you may not be considering all of the factors that help to determine price.
2) Remember! MLS only displays list prices. You should always base your price on properties that have already been sold…..not on houses that are currently for sale.
Here are a few other potential problems that can occur if you overprice your home:
• You will make other similar properties look like a bargain. You are effectively helping to sell all other houses…except your own!
• Where properly priced houses will sell in a reasonable amount of time, your overpriced property will sit on the market collecting dust.
• Sales representatives will avoid showing your house to potential qualified buyers. With a surplus of houses on the market, it won’t be worth their time showing clients overpriced houses.
• You could create a negative impression of the property before people even have a chance to step inside.
• With the house staying on the market for longer than desired, you could end up having to accept less money than if you were to price it properly in the first place. The longer your house stays on the market, the more chance it will be deemed stale or riddled with problems. This is a downward spiral you don’t want to find yourself in.
Here are a few factors that should not affect your asking price:
• The original cost of the property. As price is determined by current market conditions, you can’t consider what you originally paid for the house.
• Your emotional attachment to the house. Your emotions have no affect on what a buyer is willing to pay.
• The opinion of friends, family or neighbours. Sales representatives can assist you in understanding current market conditions and use the prices of recently sold properties to determine the most appropriate price for your home.
If you are considering selling your house, give me a call for a free market evaluation. We’ll look at recently sold properties and current market conditions to determine a price that will have your house sold quickly while yielding maximum profits.
Thanks for reading. Please visit again soon for current and relevant information on the Burlington, Oakville and Toronto real estate markets. If there are any questions you may have regarding market conditions, mortgage rates, investing in real estate or how to sell your house for maximum profit, please don’t hesitate to call or email me with whatever is on your mind.
Sunday, September 21, 2008
10 biggest mistakes a seller can make!
1) Wrong Price: Price is ALWAYS determined by what the market dictates in comparison to all other properties sold of similar value. Sales representatives complete market evaluations on every home to ensure each house is priced properly. If you disregard that advice and feel adamant about setting the price high, be prepared for the house to sit on the market while all the other similar properties get scoped up. After looking at your ‘over-priced’ property, all the other houses will seem like a great bargain that can’t be passed up. Your neighbours will thank you.
2) As-Is Condition: Buyers walk through houses with a calculator and immediately begin hitting the subtract button with every flaw they find. Before the house goes to market, spend a few extra dollars to bring up the perceived value of the house. A $500 paint job could yield a $1000 increase to your list price, where an unpainted house will result in at least a $1000 reduction.
3) No Curb Appeal: As in dating or job interviews, first impressions are lasting. Houses are often dismissed before the potential buyer has even stepped onto the property. Have a look at what your neighbours have done to improve the look of your house from the street.
4) Leave the Cleaning for the Buyers: Clean, Clean, Clean! If you don’t have the time, hire professional cleaners to come in and give your house a thorough cleaning. This is the easiest thing to do, but most often forgotten. Buying a house is always more about ‘feeling’ than it is about the actual house. Create a positive ‘feeling’ for the buyer by showing a clean house.
5) Over-Improving: It is important to make improvements, but a paint job is drastically different from renovating a bathroom. Buyers rarely receive 100% return on home improvements. The Law of Diminishing Returns states that improvements will yield greater returns up to a certain point. Beyond that point, no additional value is added which means the improvements are actually creating a loss in value in relation to the money invested. Don’t spend too much on your improvements before putting the house on the market. Buyers will think the price is reflective of you trying to recover the costs of those lavish improvements.
6) FSBO (For Sale By Owner): For those who believe they can sell their house on their own, do yourself a favour and at least interview a few sales representatives so you know what services you will be missing out on when you go it alone! Be prepared to receive lower offer prices as well as having your house sit on the market for longer periods of time. Please call me so I can go over the pros and cons of selling on your own.
7) Not Leaving the House for Viewings: It is not necessary to leave your house when potential buyers come to visit, but it is strongly recommended that you do. It is hard for buyers to imagine themselves living in a home when the current owners are still in the house. It is very distracting for the buyers as they will be uncomfortable by your presence. They will often leave such viewings without thoroughly evaluating the house. Something they would have done if you were not there.
8) Restricting Viewing Times: If it is too inconvenient for potential buyers to view your house, people won’t bother coming. There are plenty of properties on the market and yours will be skipped if the showing times are too restrictive.
9) Fighting for Every Last Dollar: A real estate transaction should be viewed as a peaceful negotiation, not a 12 round heavyweight fight. Selling and buying real estate is a very emotional process and quickly become a negative experience if not kept in perspective. Sellers tend to start high, buyers offer low and the goal is to come to a happy middle ground. It is important to understand that if your house is priced appropriately, there should only be approximately 5% room for negotiation anyway.
10) Don’t Respond Quickly to Buyers Offers: The longer you wait to reply to a buyers offer, the more time you give the buyer to think about it and back out of the deal. Don’t lose a transaction due to stalling.
If you have any questions on how to avoid all these potential pitfalls when selling a house, I’d love the opportunity to meet with you to discuss it further.
Thanks for reading. Please visit again soon for current and relevant information on the Burlington, Oakville and Toronto real estate markets. If there are any questions you may have regarding market conditions, mortgage rates, investing in real estate or how to sell your house for maximum profit, please don’t hesitate to call or email me with whatever is on your mind.
2) As-Is Condition: Buyers walk through houses with a calculator and immediately begin hitting the subtract button with every flaw they find. Before the house goes to market, spend a few extra dollars to bring up the perceived value of the house. A $500 paint job could yield a $1000 increase to your list price, where an unpainted house will result in at least a $1000 reduction.
3) No Curb Appeal: As in dating or job interviews, first impressions are lasting. Houses are often dismissed before the potential buyer has even stepped onto the property. Have a look at what your neighbours have done to improve the look of your house from the street.
4) Leave the Cleaning for the Buyers: Clean, Clean, Clean! If you don’t have the time, hire professional cleaners to come in and give your house a thorough cleaning. This is the easiest thing to do, but most often forgotten. Buying a house is always more about ‘feeling’ than it is about the actual house. Create a positive ‘feeling’ for the buyer by showing a clean house.
5) Over-Improving: It is important to make improvements, but a paint job is drastically different from renovating a bathroom. Buyers rarely receive 100% return on home improvements. The Law of Diminishing Returns states that improvements will yield greater returns up to a certain point. Beyond that point, no additional value is added which means the improvements are actually creating a loss in value in relation to the money invested. Don’t spend too much on your improvements before putting the house on the market. Buyers will think the price is reflective of you trying to recover the costs of those lavish improvements.
6) FSBO (For Sale By Owner): For those who believe they can sell their house on their own, do yourself a favour and at least interview a few sales representatives so you know what services you will be missing out on when you go it alone! Be prepared to receive lower offer prices as well as having your house sit on the market for longer periods of time. Please call me so I can go over the pros and cons of selling on your own.
7) Not Leaving the House for Viewings: It is not necessary to leave your house when potential buyers come to visit, but it is strongly recommended that you do. It is hard for buyers to imagine themselves living in a home when the current owners are still in the house. It is very distracting for the buyers as they will be uncomfortable by your presence. They will often leave such viewings without thoroughly evaluating the house. Something they would have done if you were not there.
8) Restricting Viewing Times: If it is too inconvenient for potential buyers to view your house, people won’t bother coming. There are plenty of properties on the market and yours will be skipped if the showing times are too restrictive.
9) Fighting for Every Last Dollar: A real estate transaction should be viewed as a peaceful negotiation, not a 12 round heavyweight fight. Selling and buying real estate is a very emotional process and quickly become a negative experience if not kept in perspective. Sellers tend to start high, buyers offer low and the goal is to come to a happy middle ground. It is important to understand that if your house is priced appropriately, there should only be approximately 5% room for negotiation anyway.
10) Don’t Respond Quickly to Buyers Offers: The longer you wait to reply to a buyers offer, the more time you give the buyer to think about it and back out of the deal. Don’t lose a transaction due to stalling.
If you have any questions on how to avoid all these potential pitfalls when selling a house, I’d love the opportunity to meet with you to discuss it further.
Thanks for reading. Please visit again soon for current and relevant information on the Burlington, Oakville and Toronto real estate markets. If there are any questions you may have regarding market conditions, mortgage rates, investing in real estate or how to sell your house for maximum profit, please don’t hesitate to call or email me with whatever is on your mind.
Saturday, September 20, 2008
How long will it take you to sell my house?
That answer is a difficult one to answer as there are many factors, often ones beyond our control, which will contribute to the length of time your house stays on the market. High interest rates will cause potential buyers to wait for more favourable conditions before they choose to buy. This is just one of the many factors that will affect the length of time it takes for us to sell your house.
Timing: As with a good joke, cooking thanksgiving dinner or hitting a baseball, timing is everything. Basic economical supply and demand principles greatly affect real estate markets. If you put your house on the market when the supply in your area is high, it will likely take longer to sell your house. When you decide it’s the right time to sell, you must then look at who else is selling at that time. This will be your competition.
Competition: Sales representatives look at comparable properties to establish where they place a house in the market. Potential buyers, who come to view your house, are also going around the neighbourhood viewing all other houses of comparable value. So, what have you done to your house to put it at the top of the heap? Be sure you prepare your house before it goes to market and blast your competition out of the water so it leaves a lasting impression with the buyers.
Price: If we have a clear understanding of the current market conditions, and we know our competition, then pricing your house shouldn’t pose much of a problem. Price is only what a buyer is willing to pay for the property. Buyers have looked at the other houses in the neighbourhood and will determine what they are willing to pay. If your expectations are vastly different from what the buyer is willing to pay, you will watch neighbouring houses throw up SOLD signs while your house sits collecting dust. Get your sales representative to put together a comprehensive comparative market analysis and read it until you thoroughly understand the contents. You will then understand what all other buyers know when they begin their property search. Know your competition and price to sell!
The Property: What impression will be left with the buyer if they view your house and find crayon murals all over the walls in the great room? What would they think of loose doorknobs at the entrance to the master bedroom? How about mouldy caulking lining the tub in the bathroom? Well, the answer should be clear and the solution simple! Either spend some money to fix up the areas of concern or be prepared to receive offers well below your list price….or worse, receive no offers at all! Don’t be afraid to spend a little to get a lot more in return. If you do nothing………be prepared for nothing.
Financing: As mentioned in the introduction, the economy and the cost of borrowing money will prove significant in relation to the time it will take to sell your house. The list price of a home becomes less of an issue as interest rates rise. If a buyer is unable to find terms they can afford, they won’t be buying. Unfortunately, the national economy and lender’s interest rates are beyond the scope of our control and we sometimes just have to be patient during these times.
Marketing: This is where we have all the control! Every sales representative develops a marketing plan (or at least we hope so) that factors in everything mentioned above and sets out a course of action to sell your house at the best possible price (as determined by the present market), in the shortest period of time with the least inconvenience to you. When you interview sales representatives for your business, be sure to pay special attention to this portion of their presentation. This will ultimately determine how long it will take to sell your house.
For a free home evaluation, competitive market analysis or just a chat about Real Estate in your area, give me a call or send me an email so we can set up a time to meet. Keep visiting my website as I will continually be updating it with information I hope you find useful. If there is a topic you would like to read about, send me a quick message and I’ll be sure to write a post on that topic shortly after receiving your request.
Thanks for reading. Please visit again soon for current and relevant information on the Burlington, Oakville and Toronto real estate markets. If there are any questions you may have regarding market conditions, mortgage rates, investing in real estate or how to sell your house for maximum profit, please don’t hesitate to call or email me with whatever is on your mind.
Timing: As with a good joke, cooking thanksgiving dinner or hitting a baseball, timing is everything. Basic economical supply and demand principles greatly affect real estate markets. If you put your house on the market when the supply in your area is high, it will likely take longer to sell your house. When you decide it’s the right time to sell, you must then look at who else is selling at that time. This will be your competition.
Competition: Sales representatives look at comparable properties to establish where they place a house in the market. Potential buyers, who come to view your house, are also going around the neighbourhood viewing all other houses of comparable value. So, what have you done to your house to put it at the top of the heap? Be sure you prepare your house before it goes to market and blast your competition out of the water so it leaves a lasting impression with the buyers.
Price: If we have a clear understanding of the current market conditions, and we know our competition, then pricing your house shouldn’t pose much of a problem. Price is only what a buyer is willing to pay for the property. Buyers have looked at the other houses in the neighbourhood and will determine what they are willing to pay. If your expectations are vastly different from what the buyer is willing to pay, you will watch neighbouring houses throw up SOLD signs while your house sits collecting dust. Get your sales representative to put together a comprehensive comparative market analysis and read it until you thoroughly understand the contents. You will then understand what all other buyers know when they begin their property search. Know your competition and price to sell!
The Property: What impression will be left with the buyer if they view your house and find crayon murals all over the walls in the great room? What would they think of loose doorknobs at the entrance to the master bedroom? How about mouldy caulking lining the tub in the bathroom? Well, the answer should be clear and the solution simple! Either spend some money to fix up the areas of concern or be prepared to receive offers well below your list price….or worse, receive no offers at all! Don’t be afraid to spend a little to get a lot more in return. If you do nothing………be prepared for nothing.
Financing: As mentioned in the introduction, the economy and the cost of borrowing money will prove significant in relation to the time it will take to sell your house. The list price of a home becomes less of an issue as interest rates rise. If a buyer is unable to find terms they can afford, they won’t be buying. Unfortunately, the national economy and lender’s interest rates are beyond the scope of our control and we sometimes just have to be patient during these times.
Marketing: This is where we have all the control! Every sales representative develops a marketing plan (or at least we hope so) that factors in everything mentioned above and sets out a course of action to sell your house at the best possible price (as determined by the present market), in the shortest period of time with the least inconvenience to you. When you interview sales representatives for your business, be sure to pay special attention to this portion of their presentation. This will ultimately determine how long it will take to sell your house.
For a free home evaluation, competitive market analysis or just a chat about Real Estate in your area, give me a call or send me an email so we can set up a time to meet. Keep visiting my website as I will continually be updating it with information I hope you find useful. If there is a topic you would like to read about, send me a quick message and I’ll be sure to write a post on that topic shortly after receiving your request.
Thanks for reading. Please visit again soon for current and relevant information on the Burlington, Oakville and Toronto real estate markets. If there are any questions you may have regarding market conditions, mortgage rates, investing in real estate or how to sell your house for maximum profit, please don’t hesitate to call or email me with whatever is on your mind.
Thursday, September 18, 2008
What should I do to my property before I list it for sale?
• Wash walls, ceilings, and baseboards. Consider painting with light, neutral colours. Repair cracks.
• Tighten loose knobs, towel racks, switch plates, and outlet covers.
• Fix tight doors and windows, squeaky floorboards and loose stair banisters.
• Clean and repair caulking around tubs and sinks. Fix leaky faucets and remove water stains.
• Clean and organize the basement and attic (this is a good opportunity to throw out all the bits and pieces you don’t want to move.)
• Organize closets. Get rid of the clutter. Limit the number of items stored overhead or on the floor.
• Clean out kitchen cabinets, and remove clutter from countertops.
• Clean drapes, blinds and curtains. Shampoo carpets and wax floors.
• If smokers live in the house or there are pets, use odour cleansers to keep the air fresh.
• Arrange furniture to make rooms appear as spacious as possible.
• Remove all fixtures you intend to take with you.
• Keep grass well maintained and remove all garbage from the property.
For a personal consultation on how to dress up your house for a quick sale and to get you the most money at the time of sale, contact me at 905-220-9198 or at sean.kavanagh@century21.ca.
Thanks for reading. Please visit again soon for current and relevant information on the Burlington, Oakville and Toronto real estate markets. If there are any questions you may have regarding market conditions, mortgage rates, investing in real estate or how to sell your house for maximum profit, please don’t hesitate to call or email me with whatever is on your mind.
• Tighten loose knobs, towel racks, switch plates, and outlet covers.
• Fix tight doors and windows, squeaky floorboards and loose stair banisters.
• Clean and repair caulking around tubs and sinks. Fix leaky faucets and remove water stains.
• Clean and organize the basement and attic (this is a good opportunity to throw out all the bits and pieces you don’t want to move.)
• Organize closets. Get rid of the clutter. Limit the number of items stored overhead or on the floor.
• Clean out kitchen cabinets, and remove clutter from countertops.
• Clean drapes, blinds and curtains. Shampoo carpets and wax floors.
• If smokers live in the house or there are pets, use odour cleansers to keep the air fresh.
• Arrange furniture to make rooms appear as spacious as possible.
• Remove all fixtures you intend to take with you.
• Keep grass well maintained and remove all garbage from the property.
For a personal consultation on how to dress up your house for a quick sale and to get you the most money at the time of sale, contact me at 905-220-9198 or at sean.kavanagh@century21.ca.
Thanks for reading. Please visit again soon for current and relevant information on the Burlington, Oakville and Toronto real estate markets. If there are any questions you may have regarding market conditions, mortgage rates, investing in real estate or how to sell your house for maximum profit, please don’t hesitate to call or email me with whatever is on your mind.
Sunday, September 14, 2008
Investing in Costa Rica!
Have you ever thought about buying property in a foreign country but haven’t pursued it because you just didn’t know where to begin? Do you think that buying ocean view property in a tropical country is only for the wealthy? Let me help demystify the buying process and set you on the way towards realizing your tropical dream.
I, partnering with sales representatives residing in Costa Rica, provide you with all the advice you will need to be comfortable with your purchase. Our goal is to listen to what you want and provide the most optimal matches for you to choose from. We assist you in all negotiations and safeguard your interests throughout the legal process. We are with you at every step of the way and we haven’t done our job until you are 100% satisfied with our service.
It is important to know that there is still an abundance of affordable investment property that you can own with full title. There is no need to have a Costa Rican co-signer to acquire property as is the case when investing in a number of other foreign destinations. It is also important to know that property is available to suit all budgets. You would be surprised to how little you need to buy land in the “Rich Coast.”
All this information PLUS a video presentation is just a phone call or email away. I would love the opportunity to sit down with you to examine all of your options and to educate you on all facets of the Costa Rican investment process.
Call today and get one step closer to your dream!
Thanks for reading. Please visit again soon for current and relevant information on the Burlington, Oakville and Toronto real estate markets. If there are any questions you may have regarding market conditions, mortgage rates, investing in real estate or how to sell your house for maximum profit, please don’t hesitate to call or email me with whatever is on your mind.
Friday, September 12, 2008
House Hunting Tips
Shopping for your new home should be an exciting, enjoyable and relatively stress free experience. I have listed some tips on what to look for when you begin your search.
• Talk to your bank or mortgage broker before you begin so you can focus on what is a realistic option for you. Once your financial boundaries are established, it makes the search much easier.
• Always consider your proximity to work, restaurants, shopping, parks, hospitals or other recreation facilities.
• Accessibility to highways, major roads and public transportation is always an important consideration.
• Ask your realtor to describe how property values have been moving in the neighbourhood, as well as other neighbourhoods nearby.
• Also, ask your realtor to check and see what the neighbourhood is zoned for.
• Check out the public services such as garbage pick up, snow removal, postal delivery, etc…
Things to look for on the inside of the house:
• Number of bedrooms and bathrooms
• Room sizes and overall square footage
• Layout
• Closet and storage space
• Entries, mud room, convenient basement or backyard access
• Energy efficiency. Heating and air conditioning systems, insulation, windows and any appliances included
• General condition of the floors, walls, plumbing and wiring. NOTE: houses outfitted with knob and tube wiring systems will have to be changed before the house can be insured
• The condition of the appliances included
• Are the light fixtures or window coverings included?
• Are there any special features such as fireplaces, sauna, air conditioner and security system? If so, what condition are they in?
• Basement condition. Check for signs of leakage or dampness due to wall cracks or foundation issues. Check for the presence of pests. NOTE: if there are any concerns about the foundation, enlist the services of a foundation expert. Home inspectors and real estate professionals are not qualified for such evaluations.
• Structural soundness. Check the walls, supports, beams and joists for damage or any significant alteration.
Things to look for on the outside of the house:
• Check the parking facilities. Is the driveway private or shared? Can you park on the street? If not, can you get parking passes?
• Check the garage, carport or shed for soundness.
• Have an inspector check the condition of the roof, chimney and eavestroughs
• Check the condition of the painted or stained wood, brickwork or siding
• What is the condition of the walkway, driveway, porch, deck or patio?
• Check the fencing and the landscaping. If there are any questions concerning the fence line, contact the municipal office for a survey of the property
• Examine the lot for privacy, sun and wind exposure
Thanks for reading. Please visit again soon for current and relevant information on the Burlington, Oakville and Toronto real estate markets. If there are any questions you may have regarding market conditions, mortgage rates, investing in real estate or how to sell your house for maximum profit, please don’t hesitate to call or email me with whatever is on your mind.
• Talk to your bank or mortgage broker before you begin so you can focus on what is a realistic option for you. Once your financial boundaries are established, it makes the search much easier.
• Always consider your proximity to work, restaurants, shopping, parks, hospitals or other recreation facilities.
• Accessibility to highways, major roads and public transportation is always an important consideration.
• Ask your realtor to describe how property values have been moving in the neighbourhood, as well as other neighbourhoods nearby.
• Also, ask your realtor to check and see what the neighbourhood is zoned for.
• Check out the public services such as garbage pick up, snow removal, postal delivery, etc…
Things to look for on the inside of the house:
• Number of bedrooms and bathrooms
• Room sizes and overall square footage
• Layout
• Closet and storage space
• Entries, mud room, convenient basement or backyard access
• Energy efficiency. Heating and air conditioning systems, insulation, windows and any appliances included
• General condition of the floors, walls, plumbing and wiring. NOTE: houses outfitted with knob and tube wiring systems will have to be changed before the house can be insured
• The condition of the appliances included
• Are the light fixtures or window coverings included?
• Are there any special features such as fireplaces, sauna, air conditioner and security system? If so, what condition are they in?
• Basement condition. Check for signs of leakage or dampness due to wall cracks or foundation issues. Check for the presence of pests. NOTE: if there are any concerns about the foundation, enlist the services of a foundation expert. Home inspectors and real estate professionals are not qualified for such evaluations.
• Structural soundness. Check the walls, supports, beams and joists for damage or any significant alteration.
Things to look for on the outside of the house:
• Check the parking facilities. Is the driveway private or shared? Can you park on the street? If not, can you get parking passes?
• Check the garage, carport or shed for soundness.
• Have an inspector check the condition of the roof, chimney and eavestroughs
• Check the condition of the painted or stained wood, brickwork or siding
• What is the condition of the walkway, driveway, porch, deck or patio?
• Check the fencing and the landscaping. If there are any questions concerning the fence line, contact the municipal office for a survey of the property
• Examine the lot for privacy, sun and wind exposure
Thanks for reading. Please visit again soon for current and relevant information on the Burlington, Oakville and Toronto real estate markets. If there are any questions you may have regarding market conditions, mortgage rates, investing in real estate or how to sell your house for maximum profit, please don’t hesitate to call or email me with whatever is on your mind.
Thinking of Selling?
Getting the most money for your house in the quickest possible time with the least amount of hassle is usually the goal…..well, I guess it’s always the goal!
The question then becomes ‘when is the best time to sell?’ The answer is not an easy one and is often determined by your current lifestyle situation. A teacher may believe that selling in the summer is the best time to move as there is much more time to prepare. Other teachers may not want to waste their vacation on the stressful task of moving. Some people listen to what the economists say about the economy and base their relocation decisions on that, where others simply follow tradition and wait for the spring.
For those of us up in the Great White North, there are at least two factors that deter home owners from putting their houses on the market; the weather and holidays. Nobody wants to put their home on the market in the middle of a snow storm or on the 23rd of December! Parents faced with the stressful task of preparing their children for the return to school will not want to move on the Labour Day weekend and they will not want to relocate their kids in the middle of the school year. Depending on who you will be marketing your property to, you should consider all of these factors.
As most people wait for the spring to sell, it might be worth it to put your house on the market in the fall or winter when supply of available housing is low. With the large supply available in the spring, your property could get overlooked and it could stay on the market for longer than you would have initially intended it to. That being said, selling at a time when fewer buyers are in the market could also cause similar results.
It is also wise to monitor interest rates. Read financial publications, talk with your bank or mortgage broker OR call ME to discuss trends in the economy related to the fluctuation of interest rates. It is always wise to upgrade your home when the interest rates are lower than your current one. You can get your dream home, and due to the interest rate drop, your monthly payments won’t become too difficult to carry.
The Cost of Selling
Everyone thinks they live in the perfect home, but every home will need some work when you sell. Not every buyer is looking for a bathroom painted pumpkin orange! A home inspection will always reveal minor issues with the property that the potential buyer may not be willing to accept. It then becomes a question of pay for the repairs yourself, or lose the sale. Always remember to factor in all of the closing costs. As your realtor, I would be able to walk you through the steps to ensure you don’t have any huge, unmanageable surprises at the time of closing. Always check with your lender to be clear on any discharge fees that may be levied. And then there is always the sales commission to be paid as outlined in the listing agreement.
Should I Buy First Or Should I Sell First?
There is never a right answer for this one. You may find your dream home and just can’t let that opportunity pass you by. The risk then becomes carrying two mortgages if your sale doesn’t close around the same time as your purchase. The flip side to that would be selling without a new place to live. This could be fine if you don’t mind living in a hotel or with your in-laws until you find your new home! This, however, is a natural part of the process and the stress can be alleviated by educating yourself about the real estate market in your neighbourhood, as well as the market of where you wish to move into. Call me and I can clearly explain all of your options so you can make a decision that best suits your needs. If you find your dream home before you sell, you can always make the offer conditional on the sale of your house. If you don’t sell, you don’t have to buy. Also, if you sell before you buy, you can always make that transaction conditional on finding your new home. Either way, you can always protect yourself!
Thanks for reading. Please visit again soon for current and relevant information on the Burlington, Oakville and Toronto real estate markets. If there are any questions you may have regarding market conditions, mortgage rates, investing in real estate or how to sell your house for maximum profit, please don’t hesitate to call or email me with whatever is on your mind.
The question then becomes ‘when is the best time to sell?’ The answer is not an easy one and is often determined by your current lifestyle situation. A teacher may believe that selling in the summer is the best time to move as there is much more time to prepare. Other teachers may not want to waste their vacation on the stressful task of moving. Some people listen to what the economists say about the economy and base their relocation decisions on that, where others simply follow tradition and wait for the spring.
For those of us up in the Great White North, there are at least two factors that deter home owners from putting their houses on the market; the weather and holidays. Nobody wants to put their home on the market in the middle of a snow storm or on the 23rd of December! Parents faced with the stressful task of preparing their children for the return to school will not want to move on the Labour Day weekend and they will not want to relocate their kids in the middle of the school year. Depending on who you will be marketing your property to, you should consider all of these factors.
As most people wait for the spring to sell, it might be worth it to put your house on the market in the fall or winter when supply of available housing is low. With the large supply available in the spring, your property could get overlooked and it could stay on the market for longer than you would have initially intended it to. That being said, selling at a time when fewer buyers are in the market could also cause similar results.
It is also wise to monitor interest rates. Read financial publications, talk with your bank or mortgage broker OR call ME to discuss trends in the economy related to the fluctuation of interest rates. It is always wise to upgrade your home when the interest rates are lower than your current one. You can get your dream home, and due to the interest rate drop, your monthly payments won’t become too difficult to carry.
The Cost of Selling
Everyone thinks they live in the perfect home, but every home will need some work when you sell. Not every buyer is looking for a bathroom painted pumpkin orange! A home inspection will always reveal minor issues with the property that the potential buyer may not be willing to accept. It then becomes a question of pay for the repairs yourself, or lose the sale. Always remember to factor in all of the closing costs. As your realtor, I would be able to walk you through the steps to ensure you don’t have any huge, unmanageable surprises at the time of closing. Always check with your lender to be clear on any discharge fees that may be levied. And then there is always the sales commission to be paid as outlined in the listing agreement.
Should I Buy First Or Should I Sell First?
There is never a right answer for this one. You may find your dream home and just can’t let that opportunity pass you by. The risk then becomes carrying two mortgages if your sale doesn’t close around the same time as your purchase. The flip side to that would be selling without a new place to live. This could be fine if you don’t mind living in a hotel or with your in-laws until you find your new home! This, however, is a natural part of the process and the stress can be alleviated by educating yourself about the real estate market in your neighbourhood, as well as the market of where you wish to move into. Call me and I can clearly explain all of your options so you can make a decision that best suits your needs. If you find your dream home before you sell, you can always make the offer conditional on the sale of your house. If you don’t sell, you don’t have to buy. Also, if you sell before you buy, you can always make that transaction conditional on finding your new home. Either way, you can always protect yourself!
Thanks for reading. Please visit again soon for current and relevant information on the Burlington, Oakville and Toronto real estate markets. If there are any questions you may have regarding market conditions, mortgage rates, investing in real estate or how to sell your house for maximum profit, please don’t hesitate to call or email me with whatever is on your mind.
Thursday, September 11, 2008
New Changes to Mortgage Lending
As of October 15, 2008, people interested in buying homes or refinancing mortgages should be aware of some significant changes that will affect HOW MUCH you can borrow and HOW LONG can you borrow it for.
To avoid the sub-prime lending meltdown that occurred in the U.S. and to maintain a strong Canadian housing market, CMHC (Canadian Housing and Mortgage Corporation), a body of the federal government that guarantees mortgages, will no longer be accepting mortgages with 0% down and with 40 year amortization. Borrowers will now have to come up with a 5% down payment and mortgages can only be amortized to a maximum of 35 years. To read more about the CMHC and the upcoming rule changes, have a browse through the following website.
http://www.cmhc-schl.gc.ca/en/hoficlincl/
The U.S. found itself in a situation where banks and financial companies were lending to high-risk borrowers at low rates. This created a housing bubble that eventually exploded which has significantly impacted their national economy. Mortgages were eventually renewed at interest rates borrowers could no longer afford, they couldn't pay back the mortgage and defaulted.
The Canadian government has stepped in and changed the rules to avoid a bubble in our housing market. Some will criticize the government for its intervention and question why they would implement a rule change that will make it MORE difficult for Canadians to become home owners. The answer is simple. We don't want bubbles, because as with all bubbles......they burst.
11th Annual Burlington Regional Home Show
If you are looking to increase the value of your home but just don't know what you can do, head to the Home Show. You can ask experts about improvements, discover the lastest innovations and save money when you make purchases at the show! Save on everything from window coverings to vacuums, from heating and air conditioning units to home security systems. If you are thinking about renovating your kitchen, speak to an expert. If you are looking to replace your windows, speak to an expert. If you are looking to redecorate your interior, speak to an expert.
All this at the Mainway Arena and Auditorium, 4015 Mainway at Walker's Line, just north of the QEW. Check your Burlington Post for a complete list of all exhibitors and to receive your free family pass.
Show Hours:
- Friday: 1:00pm to 9:0pm
- Saturday: 11:00am to 5:00pm
- Sunday: 11:00am to 5:00pm
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