HOPEFUL FOR A GREEN SUMMER?

How to prepare your home for a quick, profitable, summer sale
By Melissa Leong
May 30, 2014

After a brutal winter, the heat has finally arrived and with it, expectations of a hotter real estate market. The flurry of housing activity normally reserved for early spring is extending into the summer, industry experts say.

“The pent up demand from the winter is coming to fruition. As soon as listings come out, they’re being swallowed up,” Gurinder Sandhu, executive vice-president at RE/MAX’s Ontario-Atlantic Canada Division, says.

“For buyers there are more choice and for sellers there are more buyers.”

How you price your home and how you prepare its for sale are key.

“Price trends from one neighbourhood to the next can be very different,” Gregory Klump, chief economist at the Canadian Real Estate Association. “If you price your property too high, there is a chance it’ll sit on the market without offers.”

Here’s how three recent home sellers weighed their options, and came out with the sale price they were looking for.

Original purchase price: $332,000 in 2002.

Asking price: $889,000

Sold on the first day: $889,000

Jennifer Lee, a 41-year-old public relations manager, had bought her 3,000-square foot home in Markham, Ont. brand new in 2002 for $332,000. The house had four bedrooms and four bathrooms. With the goal of moving her family to Toronto to be closer to work and loved ones, she put her house on the market on March 12.

What were your home selling goals? “My goal was to get maximum value for the home because I was going to move into a much more expensive neighbourhood. I also had a very short timeline because I wanted to match it with my kids finishing the school year.”

Describe your home selling strategy. “One of my strategies was to sell before I buy. [My brother] who has moved five or six times, said the stress he experienced buying a home first and then trying to sell his home was the worst stress of his entire life. Then you get into panicky mode: ‘I need to accept an offer.’ Then you get sellers regret: ‘Did I sell too cheap?’

We had looked at a home three doors down from us that was the exact same model that had sold last summer. They didn’t have a finished basement. It sold for $815,000. (We had spent about $50,000 to upgrade our basement.)

My agent told me that buyers in the market really like to bargain, so I thought I will price in a 5% to 10% buffer. My asking price was $889,000. I told my agent, ‘I don’t even want to hear an offer that is less than $850,000. In my head, I was thinking, I want $870,000 to $875,000.

We originally thought to hold off on offers; [our agent] said, let’s not lose momentum. If someone’s interested, let them make an offer.”

How did you prepare the home for sale? “We significantly de-cluttered. We stripped out all of the closets and did some re-painting. There were some bold colours on the main floor that we neutralized. We replaced carpet in the basement with laminate and new carpeting. Our budget for clean up was $3,000.”

What did the home finally sell for in the end? “We got an offer on the first day of the market for asking, no conditions.

“We do know that the buyer was from China and was moving to Toronto and was only in town for a week.”

Final thoughts on the process. “I’d recommend not holding off on offers. If someone wants to offer, find out what they want to offer. You can always go back to people who’ve looked at the house and see if they’re interested.

In terms of preparations, don’t get pushed around by contractors who tell you that you need to paint eight rooms and replace all mirrors. Buyers can generally see beyond paint. You don’t have to redo your whole house.”

Original purchase price: $122,500 in 2001

Asking price: $270,000

Selling price: $265,000

With Elisa Holland’s transient military career, which has included tours in Afghanistan, and her husband’s job as a consultant in Alberta’s oil patch, the couple has lived apart for eight years. They finally decided to list their Calgary home for sale on April 1 and move together to Kingston, Ont. They bought the two-storey townhouse with three bedrooms, one and a half baths and two parking spaces for $122,500 in 2001. They listed the 1,500-square foot property for $270,000.

What were your home selling goals? “We wanted to put it at a fair price to sell quickly so we could buy a house in Kingston; it allowed us to buy our dream house. Kingston is a very stable market whereas Calgary is the exact opposite. My aunt and uncle have a fully detached house with a two-car garage in Barrie Ont.; it’s listed at the same [price] as our townhouse.”

Describe your home selling strategy. “I had interviews with three realtors. You have to pick a realtor who understands your residence. The reason why we ended up going with Michelle [Russell, a realtor at Royal Lepage], she understands townhouse/condos and first-time buyers.

You want to make sure you have very neutral décor. You want it so that if someone else walks in, they don’t see that it’s your house but they can picture themselves there. If you have carpets, you want to take those up so it’s a clean line across the floor. If you have an area rug, it cuts up the space. If you have a pet, you want to remove all traces that you have one. Even before a realtor came over, I took photos and very harshly critiqued them.

Knowing when to put it on the market is key. Most people want to keep their kids in school and they’ll start looking in March/April.

What did the home finally sell for in the end? Our price that we’d be happy with was anything over $260,000. We ended up with two offers: $263,000 and $265,000. We ended up selling it for $265,000, with fewer conditions (they didn’t want a home inspection) and they already had their financing in place.

Final thoughts on the process. Go with your gut feeling, especially if you get multiple offers. Your realtor will give you a sense of what the buyer is like. The $263,000 offer that came in, I honestly felt sick to my stomach. I got a sense that there was something not quite right. Make sure you do your research on your realtor. Don’t always go by someone’s advertising. On the whole, the majority of good realtors will never have to advertise, it’s all word of mouth.

Original sale price: $245,000 in 1995

List price: $689,000

Sale price: $700,000

Asking price After living in a two-bedroom bungalow in New Westminster for 19 years, Bob Harris looked at the backyard one day and said, “I just don’t want to do it anymore.” The 68-year-old retired union rep wanted to downsize. He had bought the house for $245,000 and listed it for $689,000. Meanwhile, he saw a two-bedroom condo that he liked and he put an offer on it.

What were your home selling goals? “It seemed like a good time [to sell] in New Westminster; house prices were going up and condos were going down. The spread between the two was as good as it has been in a long time.”

Describe your home selling strategy. “The rush was on. We got it ready to show within a few days – decluttered, depersonalized it.

My real estate agent Dave [Vallee] had sold a couple [of homes] in the same shape as mine; he had sold one for $683,000. We put it at $689,000, hoping to get some competing offers.

In less than a week, we had an open house on a Sunday. The next day there were three offers, all higher than the asking price…$692,000, $699,000 and $700,000.”

Knowing when to put it on the market is key
What did the home finally sell for in the end? “Two of them were subject to financing. The [homebuyer offering] $695,000 had the money in cash. Her real estate agent was there that night at the house presenting the offer and she was waiting in the car. We said, ‘Would she be willing to move to $700,000 to meet the other offer?’ and she did.”

Final thoughts on the process. “It helps to have a realtor who knows the area that you’re buying and selling in. In going to a lot of open houses, you’d go to ones where the realtors were from outside the area – so there were a lot of questions they couldn’t answer.

If something needs painting, paint it. I went to some places and they were messy. It just doesn’t make you necessarily want to buy. The place that I did buy ironically, the person had been relocated back east and said, ‘Take it as it is.’ They probably could’ve asked for more if they had done a few things.”

Article Source: Financial Post
Illustrations by Chloe Cushman, National Post

PREP WORK

Getting ready to sell? 10 staging tips to wow home shoppers 

By Lucie Brand 

The Globe and Mail September 4,  2013

1. Start with a change of mind

Too often investors/home owners become either too emotionally attached or not attached at all. I have worked with investors who were renovating a property and blew their budget on some obscenely expensive tile they “had to have” and had nothing left for furnishing the place. On the other hand I’ve worked with landlords who did not see the value in painting a place that had gone through 3 tenants! Looking at a property from a buyer’s perspective is key.

Take a tour with a realtor or a staging professional and get some outside opinions on what areas you should focus your dollars on and what’s needed to get the maximum offers.

2. Maximize curb appeal

The outside should draw people inside. Neatly trimmed bushes, mulched beds, weeded lawns all help make that crucial “first impression”. Freshly painted front doors with new mailboxes and house numbers are easy ways to create maximum impact without breaking the bank. Adding seasonal urns by the front door for some colour are another way to brighten up concrete steps or boring brick.

3. Choose neutral colour palette

Bold colours are great for living, but not for selling. Light and Bright should be your motto! Stick with a warm, neutral palette like tans, taupes and greys. Avoid dark colours, especially in small spaces (like powder rooms). Keep the ceilings white to keep walls looking tall. Rule of thumb, if the walls haven’t been painted in over 2 years, now is the Time!

Return on investment: 109 per cent*

4. Let there be light

Lighting plays a vital role and is often overlooked when getting a property ready for sale. Dark hallways, rooms with little natural light, basements and bathrooms should be addressed. A minimum of a 2-bulb overhead fixture with maximum watt bulbs can transform a dingy area. There should be NO overhead receptacles without a light fixture! Consider adding pendant fixtures in dining rooms and eating areas. Big box stores offer affordable options in brushed nickel or silver fittings.

Adding ambient lighting is essential especially in areas where there is no overhead outlets. Adding table lamps and floor lamps will help brighten up any room and help your property appear as “light-filled” as possible.

Return on investment: 303 per cent*

5. Flooring

This is the other main area that always increases the value of a home. It will ALWAYS cost you less to replace worn carpet or add new flooring then to leave it to the new home owners.

Most purchasers are looking for reasons to discount their offers. Flooring is one of the first things buyers see when they walk in. If their first thought is “I will need to replace these floors”, I guarantee they are discounting their offers $5000-$10000 for condos and $7000 – $15000 for houses. Doing the work yourself will cost you a fraction of that amount.

Return on investment: 107 per cent*

6. It’s all in the details
Replace all burnt out bulbs, touch up any nicks and dents in high traffic areas, replace torn screens and fix leaking faucets. Once the fix ups are done it’s time to focus on the pretty stuff. Fresh linens in the bathrooms, a bowl of fresh green apples on a kitchen island, fresh flowers on a dining table or in the entrance way.

Adding live or silk greenery to bathrooms and adding a new crisp bedding set to the Master all help create the impression of a well-cared for home.

7. Clean, clean, clean

This may seem like common sense, but unfortunately it’s still the one area owners tend to try and shortcut.
This is the time to hire a professional cleaning company. Special attention should be placed on appliances, inside and outside of cupboards, baseboards and windows. Bathrooms should be scoured and if necessary use grout cleaner to get the tiles looking spotless!

8. Highlight best use of the space

Tenants may have liked to use the dining room as an office, but it should be shown with it’s intended purpose. Giving a room more than one function (i.e. guest room and office) is a great way to effectively show the space. In condos this becomes essential when space is at a premium.

Using small glass desks with a stool you can tuck in can creatively introduce a “work space” where one wouldn’t think possible. Adding a daybed to a den/office creates extra sleeping space. Determine what adds the most value to potential buyers in your neighbourhood and showcase the space accordingly.

9. Kitchens and bathrooms are the place to invest

If you have dated cabinetry, cracked and worn laminate counters, chipped or broken tiles, consider investing in repairing and upgrading these rooms.

If your budget is limited, changing cabinetry hardware to brushed nickel or silver knobs and handles will give it an immediate appeal. Consider painting cabinetry instead of replacing them.

Depending on the price point of your property it is often worthwhile to install stone counters. This immediately adds value and is very durable for long term use. If stone is not in the budget, consider a “stone– like” laminate counter. Recaulking around sinks and bathtubs is a simple improvement that can greatly improve the look of a bathroom.

Return on investment: 172 per cent*

10. Vacant properties sit, staged properties sell

Staged homes sell 2 – 3 times faster and up to 6 per cent more than unstaged ones**. People perceive staged units that are well decorated as worth more. Professional stagers know how to highlight the features of the unit and distract from any “not so desirable” features.

If your budget is limited consider focusing on the main living areas and at least one bedroom. If you can’t borrow furniture and artwork, rental companies carry everything from furniture to linens. Just keep in mind that the goal is to show people how to use the space effectively.

Return on investment: 299 per cent*

Remember that 79 per cent of buyers have already viewed your property on the MLS, make sure that your property stands out among the competition! Staging is your key to getting noticed and getting SOLD.

Photo By: Exterior Encounters

A PORTRAIT OF A CARPORT

Improve the dark, dingy look of a carport
Wide-spaced trellis planted with vines adds interest
By Suzanne Rowe
The Montreal Gazette

Here lives a beautiful young family.

I chose this house mostly because of its carport. People don't quite know how to improve this dingy space.

Aside from the obvious option to convert it to a garage, a less-expensive alternative is to close off the right side and the back with horizontal stained wood planks leaving a door for the backyard. My option is to build a widespaced trellis from ceiling to ground all the way to the back. Stained white and decorated with one natural climbing vine, these psychological walls will provide a perception of privacy while adding ornamental value. A white enclosed ceiling would complete the newer and cleaner area. Adding two hefty square posts on each side of the car port will redefine the structure and give it visual strength.

I've also incorporated two similar posts right under the floating triangular shaped roof, giving it a sense of solidity, depth and interesting architectural detail. The screen door has to go into retirement.

A tall wooden flower box stained the same tint as the bricks would bring a different texture to the facade. A smaller shallower one could also do the trick just fine if respecting the width of the window above.

If, in the future the roof requires replacement, using a colour similar to the bricks would give the optical illusion that the house is taller. A very dark chocolate brown for the roof could be appealing if the front door is also painted the same colour in a semi-gloss finish.

A walkway from the street is a good addition to the one near the driveway. Two big square slabs would be placed side by side to form a rectangle. They would be repeated all the way but leaving in between a gap of about one third of the size of one tile. To soften the lines, tiny mosslike ground cover would spread throughout the spacing and bloom with miniature white flowers in June. A hedge consisting of lovely white Campanulas perennials would great their guests to their lovely home.

On the left half and in front of the foundation, the lawn will be removed to form a rectangular-shaped flower bed.

Three evergreen shrubs could be planted to furnish the new area under the triangular roof area and at the same time hide the awkward brick transition.

On the left corner, three pyramidal evergreens frame one side of the house while making it look wider.

A handsome shrub on a stem is at its best when displaying its snowball-shaped clusters of flowers. Any small ornamental tree with white flowers would do.

For a different and more dramatic look - budget permitting - an evergreen Juniperus Scopularum "Tollenson's Blue Weeping'' would steal the show.

Vegetation (from left to right):

- (3) Thuja Occidentalis 'Smaragd' (evergreens)
- (1-3) Heuchera 'Palace Pur-ple' (perennials)
- (3-5) Hemerocallis X Hy-brida 'Apricot Beauty' (perennials)
- Weigela Samba (shrub)
- (3) Taxus X Media 'Hicksii' (evergreens)
- Campanula Carpatica (per-ennials, white, hedge)
- Arenaria Verna (ground cover)
- Tropaeolum Majus (an-nuals, flower box)
- Viorna on stem (small ornamental shrub)
- Parthenocissus Quinque-folia (climbing vine)

GOOD ADVICE WHEN SELLING!

A guy's guide to a spiffy abode
Barbara Mahany
Chicago Tribune October 31, 2011

We’re not pointing fingers or anything, but let’s just say we might have strolled into more than one apartment in our time in which the fellow in charge of cleaning was, well, clearly otherwise preoccupied.

Exhibit One might have been the kitchen sink, piled high with a good month’s worth of dirty dishes, spaghetti sauce now permanently splattered to the wall, a la Jackson Pollock. Or maybe it was whatever lurked behind the bathroom door. And made us slam the door, dash down the hall and bang on some stranger’s door in search of a salle de bain not quite so, um, pungent.

Fact is, plenty of males we know need help in the cleanup department. And we are here, mop and dustbin at the ready, to leap to the rescue. We enlisted the expert advice of Nicole Sforza, senior home editor at Real Simple magazine and a clean freak who knows her way around all the nooks, crannies and dust holes that might trip up a lesser soul.

Herewith, our Guy’s Guide to Housecleaning, headlining the top 10 tips for a spick-and-span abode. Or, as Sforza put it: “How to minimize the gross factor.”

1. DITCH THE TOILET BRUSH, DUDE. No really. You do not want that nasty thing festering in the holder, over there in the corner. “Minimize the concept altogether,” says Sforza. Go with disposable toilet brushes. Swish, and ditch. (Or ditch ‘em altogether: Next time you find yourself in need of Alka-Seltzer, well, your toilet bowl could use two, too. Just pop ‘em in the bowl, let the bubbles do their thing, and 20 minutes later, flush it all away.)

2. HIDE THE GOODS. Keep a bottle of all-purpose cleaner in every room in your house, but hide it. Under the couch. Beneath the sink. You name it.

3. CUT THE BIG SCREEN FIXATION. Do not, do not spritz any sort of cleaner on your big screen, boys. Ditto for the computer screen or any electronic gizmos that sport a dusty patina. Instead, next time you haul a load of laundry out of the dryer, grab the old dryer sheet (yes, the one that just came out of the dryer) and wipe down your screens, all of ‘em.

4. BE STILL MY DUSTER HEART. Yes, the hand-held shaggy-haired wandy thingy is the next best thing to that genie in a bottle. You don’t need any spray. Just swipe the duster on any surface and you’ll clear the decks of dust. But beware: When the duster starts to turn a greyish colour (say, how you look when you glance in the mirror on the morning after a big night out), it’s time to toss it out.

5. LEAVE IT WHERE YOU’LL TRIP OVER IT. The tile cleaner, that is. Tuck it between the shower curtain and the shower liner (if you have one), so you’ll remember to spritz the tile walls every time you suds up.

6. HIDE ALL BUT THE ESSENTIALS, when it comes to the bathroom at least. Toothbrush? Toothbrush holder? Razor? Rusty can of shaving cream? Why do you think medicine cabinets come with doors? Shove ‘em back there, and forget ‘em. If you’re lucky, no nosy body will stick her nose in there and sniff out your unsightly ways.

7. VROOM, VROOM GOES THE VACUUM. Just because you have thick rugs or shaggy carpet and can’t see the dirt, don’t think it’s not down there. Plug in the vacuum, and suck it up. Sforza’s tips: Don’t pretend you have no vacuum; remember to overlap your path; and a mini hand vac never hurts — you can swipe up a rug in no time.

8. THE BATHTUB. We could spend weeks on this sorry pit, but let’s start easy. If you’ve remembered to put a hair trap over the drain, know this: You do have to clean out the hairs. And pouring a shot of white vinegar and a clump of baking soda down that drain will never ever be a bad idea. Have at it, Mr. Volcano Man.

9. MOVE OVER, MICROWAVE GRUNGE. You’re gonna love this: Fill a microwave-safe bowl with water (a squirt of lemon scores you extra points); zap for five minutes, till the inside of the ‘wave is all steamy. Wipe it down with paper towel and you’re back in business, splatter-free.

10. TIME TO HIT THE KITCHEN SINK. Once you suds through the month’s worth of dirty plates and bowls, you will notice that there is a sink down there. It will need a shine. Take half a lemon and swipe it all over your sink’s surface, and if — and only if — you have a garbage disposal, make it purr: Stuff a half lemon down there and crank it up. Your kitchen will smell like a citrus grove. Well, maybe.

AND NOW FOR SOME TRICKS TO GET YOU IN THE CLEANIN’ GROOVE:

—INVITE FOLKS OVER. Yes, sir, surest way to force you to clean is to consider the faces of your friends when they realize what a slob you really are. Sorry, tough love is the only way sometimes.

—SPEED CLEAN. Set a time limit, something tolerable, say, 20 minutes. Crank the timer. Rush around like a crazy man. See how much real estate you can cover before the gong goes off.

—STICK TO COMMERCIAL BREAKS. Got a long night in front of the big screen? Well, put those commercials to good use, and commit to cleaning while the ads whir by. By the time you click it off for the night, your home sweet home could be shinin’.

—A GREAT PLAYLIST IS A HOUSECLEANER’S BEST FRIEND. We’ll let you compile your own.

Photo By: Christian Yanchula

ADVICE TO SURF THE WAVES OF MORTGAGES

Brokering the best mortgage deal
Experts able to navigate through choppy waters
By Denise Deveau
For Postmedia News March 30, 2011

Cheryl Hutton and Aaron Coates always thought getting a mortgage would be a challenge.

But within 18 days of visiting a mortgage broker, they were able to close a deal on a new townhouse in Calgary without a hitch.

Now in their early 30s, both have careers in the theatre, something Hutton says has been a bit of a sticking point with banks.

"In our industry, we never fit the paperwork guidelines (for the banks). For some reason people don't think we pay our bills."

Although it was their first home purchase, Hutton says it was surprising how easy the whole process was once they had someone who could walk them through it.

"He sat us down, told us what our options were, showed us that it was possible, and explained all the steps we needed to take. If it wasn't for him, we may not have made the leap," she says.

Sorting through a mortgage process and negotiating rates can be overwhelming for first-time and seasoned homebuyers alike.

That's why people such as Hutton and Coates turn to brokers to do the legwork for them.

Yet mortgage brokers will tell you that a good number of homebuyers out there don't really understand what they do.

"Part of the challenge we have in our world is that people aren't really sure what a mortgage broker is," says Gary Siegle, regional manager for Invis Inc., a mortgage brokerage firm in Calgary.

Brokers should not be confused with "rovers" -mortgage specialists attached to a specific financial institution who visit customers outside of banking hours, he explains.

"They only deal with that bank's product. A broker, however, is an intermediary whose job is to make a match between a lender and a borrower. We represent the individual, not the bank."

About 30 per cent of mortgages in Canada are done through a broker, says Perry Quinton, vice-president of marketing for Investor Education Fund, a Toronto-based, non-profit financial information service.

"The reason more people don't know about them is because the banks are so visible," he says.

"It's easy to gravitate to them when you have your savings accounts, credit cards and investments there already."

Going for the comfort factor could cost you though, she adds.

"A broker has access to different lenders including banks, and can shop rates and features. A half per cent may not sound like much, but that could make a difference of about $20,000 for a $250,000 mortgage amortized over 25 years. Any little bit helps."

For anyone considering a broker, Quinton advises people to do a bit of groundwork first if they have the time.

"It helps to educate yourself about options and what you can afford. Look at all your living expenses, including student loans and credit card debt. Chances are you are understating those."

Another thing to look into is the different types of available mortgages and features, including interest rates, payment frequency, amortization, cash back programs, and the ability to make lump sum payments.

"Knowing these things before you go in can save you a lot of money," she adds.

Photo By: alfcfishing

GEARING UP TO LIST IN THE SPRING?

Home not selling? Clean, paint and pare price
March 2, 2010
Jennifer Wilson-Speedy
YOURHOME.CA EDITOR

If only selling a home was as simple as putting up the "For Sale" sign. Instead, it's an emotional process balled up with agonizing financial decisions and life changes that only get more stressful the longer the property's on the market.

Sofie Allsopp helps Brits make over their homes to speed up the sale of stagnant properties in Unsellables UK ,an across-the-pond rethinking of the Canadian Unsellables series.

This season, Allsop says, brings "new people (and) some really great properties" – at least, once they've cleared up the filth, clutter and worn-out decor.

"I'm always amazed when people's houses are dirty when they put it on the market."

In addition to the general turnoff that is grime, clutter "makes a house look so much smaller," she says, recalling an episode where the newlyweds' house was piled so high with boxes "you could barely see the floor."

These kinds of messes not only eat away at valuable floor and counter space but also hinder prospective buyers' ability to envision their own belongings in the home, which is often a key step in their decision making.

So, if you're preparing to sell, it's worth the effort to pare down before the first showings, including stowing family photos and mementos. Allsop also recommends putting oversized or extra furniture into storage to help make rooms feel larger.

Plus, she notes, cutting down on clutter now means less packing when moving day comes.

Faded decor is another Unsellables no-no. Often in houses that have been lingering on the market, "everything just looks a bit tired and unloved," says Allsop.

As a result, paint is "one of the most important things to do before you put in on the market," she says, suggesting sellers opt for "pale but interesting" colours, such as muted greens and blues, to help create a fresh look without imposing a bold, and potentially intimidating, personality on the space.

Sellers must also consider their furniture placement. Paring down will help open up spaces, but pieces must also be arranged to emphasize the home's flow, which means natural walking paths and doorways shouldn't be blocked. Try to showcase the flexibility of the space too. For example, convey that the home office could also be a bedroom by adding a small bed.

To prevent your home from languishing on the market, Allsop says one of the most important steps is getting a real estate expert to help you set a realistic price. She says a lot of the time people list their homes for too much money – and it ends up sitting for months until they lower the price.

In addition to delays for the sellers, listings that sit on the market also lose appeal with prospective buyers.

"If a house has been on the market for a few months, people will keep seeing it in their (web) searches and it will start to feel stale," she explains. "Price it for sale."

And, she adds, don't forget to give your home's exterior a little TLC – she notes that will be the photo on your Internet listings.

"You have two seconds to impress before someone clicks on to the next house," she says. "No one looks at a home with an overgrown yard and says, `This is the house for me.' "

Mowing the lawn, painting the front door, stowing the garbage bins and putting out some flowers "will instantly make the front of the house look smarter."