I want to sell, ...but how do I determine how much to list for?

Establishing a reasonable and profitable listing price for a home is perhaps the biggest challenge for every home seller. Many sellers ask themselves, "The home next door sold for a high price, can I sell mine for the same?" or "Can I raise the asking price in a hot market?" These and various other factors must be considered before determining the right cost. Here are the steps I recommend taking before establishing an asking price.

Choose the right sales associate. While many people use a friend or relatives referral to select a sales associate, it is smart to interview several prospective agents. Invite different agents to show their listings presentations. Pay attention to how they plan to market the home, and find out the reach of their company's Web site. Also, make certain they plan to list the home on the multiple listing service (MLS) and inquire how broad their real estate contact network is.

Do the homework. Ask a real estate sales associate for a written comparative market analysis (CMA). This will provide a list of recent sales prices of similar homes in the area (with comparable numbers of bedrooms, baths, square footage and lot size), the asking prices of homes currently for sale nearby and other pertinent information. A sales associate will then provide a professional estimation of a legitimate selling price. Please be aware the CMA is not an appraisal.

Take the emotion out of It. While the seller likely has great affection for the home, the agent will not set the price based on the seller's emotion. Instead, he or she will evaluate the location, condition and size of the home. A house in a secluded, exclusive area may appeal to some, while others want to be closer to schools, shopping and health care facilities. Also, what is the physical condition of the home? Is it a fixer-upper? Does it make a good first impression (i.e. “curb appeal”)? Will it attract a growing family, or is it better suited to empty nesters?

Determine if it is a buyers’ or sellers’ market. Home inventory, mortgage interest rates and the economy play a role in determining whether the buyer or seller has a negotiating advantage. While most would normally consider the current market to favor buyers, with a surplus of inventory and lower interest rates, credit lending has become more difficult to obtain as a result of present economic conditions.

Do the math. Do not forget to figure in closing costs, legal fees and other selling expenses when determining the value of your home. The sales associate should be able to provide cost estimates and negotiate with a potential buyer to ensure a good sales price.

Give it the once over. There is one more step to be certain the house sells for your asking price, or for more. Do as much as possible to improve the home's appearance: touch up the paint, fix leaks, seal any cracks, clean up the clutter, and eliminate pet odors. The house has only one chance to make a first impression!


Chat Soon,

Sharon
xoxo

The Bank Of Canada "Low rates till the end of Q2", GREAT NEWS!

The Bank of Canada left the overnight rate at 0.25% this morning and maintained their assessment of the risks to the outlook as being balanced based on macro considerations. The Bank removed the statement about risks being "tilted slightly to the downside" because policy is operating at the effective lower bound and did not allude to its ability to use alternative measures to provide additional easing when the policy rate is at the effective lower band. However, the central bank did reiterate its conditional commitment to keep the policy rate at its current level "until the end of the second quarter of 2010" in order to ensure that inflation stays on course to meet the medium-term target.

The Bank acknowledged that the economy was "slightly" stronger than expected in the fourth quarter although reiterated that the "persistent" strength in the Canadian dollar and weak US demand continue to provide downside risks the Canada's recovery going forward. On the other hand, the Bank cited "vigorous" domestic spending and rebounding exports as providing support to the economy in the final quarter of last year. The Bank pointed to stronger than expected global and domestic demand as providing upside risks to the outlook.
On inflation, the Bank highlighted that the core rate "has been slightly firmer than projected" pointing to both transitory factors and the faster pace of economic growth. Going forward, the Bank presented upside and downside factors for the inflation outlook citing both the strength in domestic demand as well as the abundant slack in the economy and weakening wage growth.

Two key changes were made to the statement that indicate that the Bank is edging its way toward removing the extraordinary level of monetary policy stimulus. The Bank removed the statement that the overall risks to the outlook are "tilted slightly to the downside" as a result of policy operating at the lower bound. As well, the Bank did not repeat that they retain "considerable flexibility" in the conduct of policy at lower rates suggesting that the need for additional easing of policy has become increasingly unlikely. The stronger-than-expected report on the fourth quarter and improved labour market are consistent with a gradual removal of the accommodation being supplied to the economy. The winding down of its liquidity support programs is already in train and the first step toward this occurring. We expect Canada's economy will grow at an average 3.6% pace in the first half of 2010 although the large output gap generated during the recession means that the core inflation rate will remain below the Bank's 2% target until late 2011. This will allow the Bank to proceed slowly with rate increases in order to ensure that the economy's positive momentum is not disturbed. We expect the Bank to increase the overnight rate by 100 basis points in the second half of the year as they begin the process of adjusting monetary policy toward a more neutral stance.
Details
• Bank of Canada left unchanged the overnight rate at 0.25% and maintained its conditional commitment to this rate through the end of the second quarter of 2010
• Bank removes the statements that suggest more accommodation may be needed
• Statement tees up for Bank to remove stimulus this summer if economy improves as we project.

"Maybe first I'll try selling on my own...to save the commission."

The fact is, most people who try to sell their own home end up using a REALTOR^® in the end anyway. Before anybody decides to fly solo through this complex, time consuming and financially perilous process, they should consider these questions.

Will you really “save” the real estate commission?
When buyers see a home for sale ‘by the owner’, they see a bargain. They imagine the REALTOR'S^® fee going into their pocket, not yours.

Are you familiar with real estate law?
Complicated and ever-changing real estate law governs nearly every phase of selling your home. One misstep, and an entire deal can fall through, or worse, result in a lawsuit.

How many potential buyers will you reach?
Selling a home takes more than just hanging a “For Sale” sign. How will you promote your home? Will you write your own ads? How will you use the Internet, knowing that you’ll have no access to the cooperative service available through the Multiple Listing Service®. MLS® and the corresponding web site www.REALTOR.ca have changed the way people search for homes, and it’s hard to court buyers without it.

Do you have the time?
Promoting a home is a full time job, and you may already have one. Will you be able to take calls at any time? How about screening the callers to figure out if they’re suitable candidates? Not everybody who calls is even suitable to walk through your home, but how do you tell?

Do you know the market well enough to get the most for your home?
Lacking years of experience, the average do-it-yourselfer is merely guessing at their listing price. Often they set the price too low and miss out on thousands of dollars, or they price their home too high and drive away willing buyers.

Do you have the negotiation skills to keep a deal on track?
When an offer comes in, emotions can run high with so much money on the line. This is why direct seller-to-buyer deals often end in disaster. REALTORS^® keep it professional and are indispensable when it comes to bargaining with buyers.

Chat Soon,

Sharon

xoxo

Deciding When to Sell

In real estate, it's all about the timing. It will strongly influence your home’s selling price. Here are some things to take into consideration:

A buyer’s versus a seller’s market?
When lots of people are looking for homes but not many are for sale, it’s a ‘seller’s market’, because the seller has something everybody wants. When there are lots of homes for sale and not many people buying them, it’s called a ‘buyer’s market’ because buyers have more power of choice.

How quickly do you need to sell your home?
In a seller’s market, top price and a fast sale can go hand-in-hand. In a buyer’s market, more sellers are competing for your potential buyer. If you have to sell right now, consider lowering your asking price a bit to speed up the sale. A REALTOR^® can help you figure out the right price-to-speed ratio.

Seasonality. Do home sales get frostbite?
It’s true. Winter sales tend to be slower, and spring sales are more brisk. Regardless, there are always people looking to buy, and seasonality is only one of many factors to consider.

What if you’re also buying a home?
If you sell your existing home for a ‘low’ price, you’re probably also buying at a low price. If you are upgrading to a larger home, this actually works to your advantage. If you’re downsizing from a bigger home to a smaller home or a condo, you need to pay a bit more attention to the market.

To buy first or sell first? The eternal question
Many people are able to time their sale and purchase so they happen on the same “closing date”. As a buyer, you can make your offer “conditional” on the sale of your existing home, to make sure you’re not left paying for two homes. As a seller, you can try to extend the “closing period” to give yourself more time to find your next home. Each situation is different and it's best to discuss with a REALTOR^® so that he/she can provide advice and counsel during these types of negotiations.

What if you find your new dream home before you’ve started to sell your old one?
Talk to your existing mortgage lender about “Bridge Financing”. This is when your lender (the bank) agrees to lend you the down payment for your new dream home, while you still cover the mortgage on your existing property. Again, your REALTOR^® will likely have a few options on mortgage lenders or brokers that you can discuss your various financing options with.

Chat Soon,

Sharon XOXO

Spruce it up for Spring!

Spring is right around the corner, (YAY!!) and you may be looking for ways to enhance your decor to fit with the sunny spring and summer days ahead.

Here are 8 ways you can change it up on a budget; and in a snap!

1) Paint - Tried and true, paint will make a huge difference in a room.

Sometimes it is hard to choose a color so here are a few things to take into consideration:

1) Look through your closet...what colors do you see most? Those can go on your list.

2)Try to stay in a neutral shade of any color so that you aren't overpowering the rest of the house if you are only working on one room

3)Choose your "anchor" fabric or art piece and use the lightest color from that for the wall paint.

2) Open the windows - Literally and not so literally.

Pull those dark heavy drapes back and let the light shine in. Better yet, replace those dark curtains with light breezy sheers, beautiful!!

Naked windows are trendy, adorned with an ironwork treatment - Ooh la la!

3) Remember the 60, 30, 10 rule.

*60% of the room is background color

*30% of the room is mid tone color - for flooring and large size furniture.

*10% of the room is accent (usually the richest or brightest color) - for "pop" accent pillows, art, etc.

4) Drab Sofa? Get a Slipcover! Check it out....

If your sofa is tired and perhaps has a stain that bothers you or is a color you can't stand anymore, just go out and get yourself a slipcover! They aren't like the so obvious slip covers of the past, you can get stretchy WASHABLE no-tell slip covers now that look amazing! The "Sure Fit Stretch Slipcover" Pic shown here, beautiful, and no fail!

5) Accent Pillows, Easy, Inexpensive and necessary!

Add "oomph" to the couch, chair, or bed with

bight bold accent pillows, easy peasy!

6) Fresh Flowers - any kind in any color

What a difference fresh flowers make to a room, not only does it breathe life into any space, it adds color! If you choose flowers that fit into the color scheme, the drama that one piece creates can be quite amazing.

7) Frame the art that your child brings home from school and collage it!

Now I know that this may not apply to everyone, but lemme tell you there is some serious guilt in discarding my son's art he brings home from school. But we can't keep it all!! - Or can we? I have been choosing and setting aside pieces and framing them. You can choose a particular corner or office or even in the powder room - change it up by adding you child's homemade art in matching frames in a collage on the wall. Wow..Talk about a conversation starter when the company comes over! And your son/daughter will love you for it :)

8) “Knick Knack, Paddy whack”, Store it in a box.....

I know that isn't how the song goes,.. but for you clutter-bugs out there, grab a box and start putting away those knick knacks. Believe me - what you got ten years ago as a wedding guest does not need to be displayed! And singing fish...(yes even we had one, but it never made it to the wall...)If you must keep it - fine. Display it in a pretty box. In the BASEMENT. :)

Chat Soon!

Sharon

xoxoxo

What is the Function of a Real Estate Lawyer?

Once we have chosen a lawyer to act on our purchase of a home, what will the lawyer be doing for us? Also, is there anything that we will have to do once our lawyer is retained?

ANSWER: The primary function of a real estate lawyer in every transaction is to protect the client, in this case, the buyer. This means conducting all searches necessary to ensure the buyer will, on closing, acquire title to the home free of any adverse claims.

The following is a brief outline of searches and activities which are conducted in every situation on behalf of a buyer.

1. Search Title: A search of the title to the house is conducted at the Land Registry office ( Registry ) to ensure the Sellers have proper ownership of the home. In other words, your lawyer will make certain the Sellers have actually acquired title through a proper transfer, or chain of title, from all previous owners.
2. Handle Claims: The search of title at the Registry will also reveal any claims registered on title against the home. Typically, a mortgage is found to exist on title. Any such claims are noted and forwarded to the seller's lawyer to be remedied and removed from the title prior to the closing date.
3. Other Searches: Searches are then conducted of various city departments and utilities to ensure no outstanding issues exist with respect to the particular home being purchased. The list of searches include:
   1. Building/Zoning/local improvement departments - a search is conducted with these city/municipal departments to ensure among other matters, that proper zoning exists for the home, and that there are no outstanding work orders in existence;
   2. A search is conducted to ensure taxes have been paid up to the date of closing;
   3. A search is conducted to ensure all utility accounts (hydro/gas etc.) are paid in full up to the date of closing.
   Again, if any deficiencies are found to exist, the sellers lawyer is asked to remedy the deficiencies prior to closing.
   4. Review Documents: Once the search process is completed, and as responses are received, various closing documents are prepared and exchanged between the parties solicitors for review and approval.
   5. Mortgage Documents Prepared: At the same time, mortgage preparation and registration instructions are received by the buyer's lawyer from the buyer s lending institution. Mortgage documents are then prepared and are usually forwarded to the lending institution for review and approval. The lending institution usually also requires an interim opinion on the validity of title from the buyer s lawyer prior to the closing date, and, prior to the mortgage funds being advanced.
   6. Review with clients: Before the closing date, you will meet with your lawyer to review and execute various documents. More often than not, this meeting will occur two to three days prior to the closing date.

   The above outlines some of the more common searches conducted in all real estate transactions. Other searches are often required and are dependent upon the particular situation. However, the above should provide some idea of what services are provided by a buyer's lawyer.During this process, the buyer is also required to conduct certain initial legwork. This includes:

4. Finalizing the mortgage application process with your lending institution;

5. 1. Directing your lending institution to forward the mortgage instructions to your lawyer; and,
   2. Arranging fire insurance and directing the insurance company to forward a confirmation letter (referred to as a binder letter) to your lawyer.
   Every law firm varies in its standard of practice. Depending on the particular firm, you may be expected to undertake more tasks than the above. The best method to resolve any confusion as to what tasks you will be responsible for is to sit down with your lawyer and discuss each party' s responsibilities. This will help to minimize the chance of any last minute confusion or problems arising.

   Finally, make certain you are comfortable with your lawyer and are able to reach him or her throughout this process. Recognizing this is a significant purchase, you should be able to discuss with your lawyer any questions or concerns whenever the need arises. Best of luck!

Courtesy of Victor Hussein, Real Estate Lawyer www.vhlaw.ca