So you want to sell your property. All you need to do is hire a Realtor, keep your property clean at all times, and sort through the offers. Right? Wrong! Selling real estate is hard work. These days many homes are competing against yours, and you must use every opportunity to get a jump on the competition. Everything in your property must sparkle and work perfectly. This means no stained grout in the bathrooms, no scratched hardwood floors, and no worn-out carpeting. A person walking into your home should get a sense of grace and elegance, and the impression of a comfortable home in which to relax after a hard days work.November 20, 2009
So you want to sell your property. All you need to do is hire a Realtor, keep your property clean at all times, and sort through the offers. Right? Wrong! Selling real estate is hard work. These days many homes are competing against yours, and you must use every opportunity to get a jump on the competition. Everything in your property must sparkle and work perfectly. This means no stained grout in the bathrooms, no scratched hardwood floors, and no worn-out carpeting. A person walking into your home should get a sense of grace and elegance, and the impression of a comfortable home in which to relax after a hard days work.
The following scenario demonstrates the importance of having your property in ship-shape condition prior to putting it on the market. Picture two identical, neighboring homes. The first has a beautifully manicured lawn with masses of flowering annuals and roses spilling over the trellis. As you walk into the house you smell fresh baked bread and hear the faint sounds of Mozart in the background. The property is spotless, the hardwood floors gleam, the bathrooms shines, and the sun pours through sparkling clean windows. You immediately experience a sense of well-being in this pleasant, relaxing atmosphere.
Now the neighboring property. As you walk up the sidewalk you notice there are the same masses of annual flowers and the same roses on the trellis, but the owners of this property have been to busy to weed the garden and the paint is peeling off the trellis. There are weeds pushing up between the cracks in the sidewalk. You try ringing the doorbell but it’s out of order. The Realtor had advised the owners that everything should be ship-shape and in working order, but their reply had been that people were buying a house worth $675,000 and a broken doorbell or a few weeds in the garden weren’t going to make or break the sale. Since the doorbell is out of order you pound on the door. Pandemonium breaks out as you hear the dog barking and the children fighting to answer the door. Inside, you find the living room is painted shocking pink. The owner explains she likes to stamp her own personality on a property, and it will not be a problem for the new owner to paint over the color. After picking your way through the children’s toys you tour the house, noticing the stains on the porcelain in the bathroom, the worn out living room carpet, and the darkness of the guest bedroom due to a burnt out light bulb that the owners neglected to replace.
Which property do you think these prospective purchasers will buy? While there are no major problems with the second house, and nothing a new paint job, minor repairs and a few hours on the weekend won’t fix, why bother? The first home is already perfect. Additionally, you felt relaxed in the first house, while in the second your senses were assaulted by shocking colors, noisy children, dogs and the general unkept atmosphere of the place. These home owners have let another prospective buyer slip through their fingers because they could not be bothered to put out the necessary effort to make their property competitive. These are the same people who will begin calling their Realtor in a few months, demanding to know why their home isn’t selling when other properties in the neighborhood are, and insisting that the Realtor change his marketing strategy.
April 30, 2009
The city of Vancouver is one step closer to allowing city folk to act like country folk and keep chickens in their backyards.
Councillors voted unanimously to direct staff to study the issue and draft a bylaw amendment which could happen by June.
For those with a romantic image of gathering fresh eggs from happy birds clucking away contently, you are in for a wake up call. I grew up on a farm, and as a young boy one of my jobs was to gather eggs.
I hated it. Why?
Newsflash! Chickens peck!!!
Like feathered pit bulls, really.
And guess what, they will get out and make a mess. They eat anything. They poop a lot. They can also fly (not a great distance but enough to clear a fence or hedge). They will dig up your garden, there will be feathers everywhere and humans aren’t the only ones who like chicken.
Coyotes, dogs, raccoons, mink, even other chickens have been known to peck on one another. Imagine little Suzy waking up to that image!
Suddenly we are just a step away from cockfighting! Then the police have to direct their resources to stop that which could result in mayhem to the point where the military is called in. Then with the Canada’s military converging on the lower mainland, a foreign power may seize the opportunity to stake claim to Canada’s north. America steps in and says “Not so fast!” Soon missiles are flying and all hell breaks loose around the world!
And it all started over one lousy backyard chicken.
Or was it an egg?
OK, perhaps the scenario was a little extreme but having to gather eggs everyday can feel like the end of the world to a little kid. “Buck” up and get your eggs from the store along with your milk and meat.
And don’t even get me started on cows…
April 27, 2009
In recent weeks there has been a noticeable increase in activity at open houses and the latest moves by the Bank of Canada should bring another wave of activity to the early spring market.
The 50 basis point reduction has some of the major banks to drop their Prime lending rate to an amazing 2.5%!
What does this mean for mortgage borrowers? At a variable rate of 3.3% the mortgage payment per $100,000 is only $400 per month. In other words a $300,000 home will have a mortgage payment of $1,200 monthly. Many renters are paying more than this in rent each month! Perhaps this will be the nudge to get first-time home buyers off the fence!
As I tell my buyers, if you are serious about getting into a new home, get pre-approved on a mortgage. Talk to your bank, talk to several mortgage brokers and find out who can give you the best deal for your financial situation.
If you are already in a fixed rate mortgage, check to see if the penalty is worth taking to get into a lower variable rate mortgage.
In the States they are trying almost anything to get people buying again. One large new-home builder, through their lending arm, is offering a 4% fixed rate over 30 years! Can you imagine?
Will our rates go any lower? The Bank of Canada has hinted at another 25 basis point drop in the very near future and they expect the rates to remain low into the latter half of 2010. Whether the major banks pass along the savings to the common folk remains to be seen.
April 13, 2009
If you have been considering getting into the market and buying your own home, this may be the break you have been waiting for!
The current price corrections and historically low interest rates are working in your favour. For what you are paying in rent, you could own your own home! If you are a first time buyer, paying the minimum 5% down here are a few numbers to consider.
If your rent is about $1,000, then with 5% down you can get you into an apartment valued at $233,000. If you are paying $1,500 a month in rent you could buy a place worth about $350,000.
If you are young and single and don’t mind a roommate, you could take on a renter who will assist with the mortgage payments without them being an owner! It’s usually at about this stage when the Compact Florescent Lights (which have replaced the light bulb) first turn on in their brain. Then they start thinking big. “If I have enough roommates, they can pay the entire mortgage and I can live rent free while building equity in my home!”
Not so fast cowboy. Don’t go Donald Trump on me yet, but I like the way you think.
Can you stand living with that many people? Are they slobs? Are they going to stick around or will you be constantly looking to add roommates?
Before you turn into a real-life Monopoly-maniac-magnate, check out the BC Residential Tenancy Act:
To quote Uncle Ben from Spiderman “Remember, with great power, comes great responsibility.”
Older Posts »April 7, 2009
RBC has released survey results that show 78% of British Columbians agree it is a buyers market for residential real estate. That is way above the national average of 65% of Canadians.
Among those planning to buy a home, 27% said they would do so because their current home didn’t meet their needs. Almost 25% of respondents cited attractive housing prices as being an incentive for them to look for a home; 23% said they wanted to buy a bigger home.
Some people find this thinking difficult to understand. The reality is when buyers are financially and emotionally ready they will start to look. Throw in the fact the average price of has fallen 14.2% year-over-year and it makes sense to buy. Might homes be cheaper in a few months? Perhaps. But if a buyer can find a home that suits their needs at a price they can afford then what’s the problem?
Well then, you could argue it is a bad time to be selling. No, if you have been in your home for more than a couple of years you have seen your home go up in value from what you paid for it. Now is a great time to move up.
If you have bought a place in the past year and are already thinking of selling it – make sure you can afford to do so! What do I mean? If you bought a place with 5% down and have a mortgage of, say $300,000. If similar units are now selling for $270,000 then you are, as they say, “underwater” or “upside down” or more simply put “in negative equity”. Are you prepared to pay the lender the $30,000 difference? You might be better off staying where you are at.
When prices were going to the moon some people thought it would never end. It is the same thing with falling prices. This too shall come to pass.
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