Pricing Your Home To Sell Fast In a Buyer's Market
It's tough being the seller in a buyer's market. However, you can improve your odds with the right research. In many cases, making a smart deal and getting the best price comes down to studying your market and being an educated seller.
It doesn't really matter how much money you think your home is worth. Nor does it matter what your agent thinks. The person whose opinion matters is the buyer who makes an offer.
Price your home rightPricing homes is part art and part science. It involves comparing similar properties, making adjustments for the differences among them and tracking market changes. Study the supply and demand within your neighbourhood to consider whether to price your home above or below the market value.
Pricing your home lower than your competitors can essentially generate more offers, thereby driving the price higher. On the other hand, pricing it too high and you risk buyers going into “sticker shock”.
The benefits of pricing right:
Your property sells faster because it is exposed to more qualified buyers.
Your home doesn't lose its "marketability".
The closer to market value, the higher the offers.
A well-priced property can generate competing offers.
Real Estate Professionals will be enthusiastic about presenting your property to buyers.
The result of overpricing:
Many sellers believe that if they price their home high initially, they can lower it later. Often, when a home is priced too high, it experiences little activity. Gradually, the seller will lower the price down to market value, but by that time it's been up for sale too long and some buyers will be wary and reject the property.
On occasion, the price is dropped below the market value because the seller runs out of time and the property is sold for less than its value. Missing the right buyerYou may think that interested buyers "can always make an offer," but if the home is overpriced, potential buyers looking in a lower price range will never see it.
Those who can afford a home at your asking price will soon recognize that they can get a better value elsewhere.
The importance of early activityAs soon as a home comes on the market, there is a flurry of activity surrounding it. This is a crucial time when Real Estate Professionals and potential buyers sit up and take notice.
If the home is overpriced, it doesn't take long for interested parties to lose interest. By the time the price drops, a majority of buyers are lost.
The longer your house sits on the market, the less cash it commands. If you have to sell in a slow market, study the current trends, forget old values, recognize current values, and price your house lower than others in your market. Start at a sale price that is going to entice buyers from the get go. You will be the first one to sell in your neighbourhood and you will win from there.
Thank you for reading and be sure to take a look at my website for more real estate information!
http://www.bennettpros.com/
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Wednesday, June 24, 2009
Monday, June 1, 2009
$238,250 - 1 bedroom lofts in Little Italy
Domicile's newest development near Dow's Lake just released a brand new one bedroom plan. Enjoy urban living with all the luxuries of a Domicile condo for under $250,000.
This suite includes over 9 foot ceilings, hardwood floors, ceramic tile, granite counters, floor to ceiling windows, stainless steel appliances, natural gas hookup for a BBQ, heated underground parking open concept living, custom finishes and occupancy in 9 months.
This condo is the perfect starter home with a carrying cost of less than $1,300/month (this includes mortgage payments, condo fees and property taxes).
There are currently 4 of these condos left for sale, call Domicile for more information, 613-728-7873.
Thanks for reading and happy house hunting!
Alexandra
Wednesday, May 27, 2009
Real Estate Market Going Strong
May 2009 Housing Sales Increase for the Second Month in a Row
For the second month in a row, the Canadian housing market has recorded an increasing number of sales in most areas around the country. Home purchases have increased as households have taken advantage of low interest rates and slightly lower home prices. While April sales remained lower than last year, the housing market gained momentum on a month-over-month basis. Current conditions have created one of the best buying opportunities in years. It has been the job of Realtors to successfully communicate to sellers to be more realistic with their prices, this combined with an all-time historically low interest rates have proven to Canadians that our real estate market is just as strong as ever.
Here are some hot off the press stats about Ottawa's very own real estate trends:
As of May 5, 2009: Members of the Ottawa Real Estate Board sold 1,594 residential properties in April through the MLS system compared with 1,560 in April 2008, an increase of 2.2%. There were 1,162 sales in March 2009.
The average price of residential properties, including condominiums, sold in April in the Ottawa area was $298,150, an increase of 1% over April 2008.
The average price for a condominium-class property was $216,502, an increase of 2.8% over April 2008.
The average price of a residential-class property was $318,900, an increase of 0.7% over April 2008.
For more stats and current market info visit my website http://www.bennettpros.com/Thank you!
Tuesday, April 7, 2009
Spectacular townhome for sale by Dow's Lake
Domicile Developments are nearly complete a brand new cluster of executive town homes right across from Dow's Lake and the Experimental Farm. These homes are over 2,100 sq. ft. and the only Energy Star townhomes within the city limits.
Monday, April 6, 2009
Thinking of buying an older home and renovating?
Did you know that you can retrofit your new home and qualify for a grant?
You can now qualify for a grant of up to $10,000 from the Federal and Provincial governments when you complete energy efficient renovations.
The Federal government's recent budget included a number of provisions that may benefit Canadian homeowners and investors. How can Canadians take advantage of the Home Renovation Tax Credit (HRTC)?
Who can claim?
The HRTC is family-based. For the purpose of the credit a family is generally considered to consist of an individual and, if the case may be, the spouse. The amount you are eligible fo ris based on the total value of expenditures for a dwelling (house, condo or cottage).
How this works?
The 15% credit may be claimed on the portion of said expenditures over $1,000 and under $10,000 meaning you could receive up to $1,350 as a tax credit. Please note that routine repairs and maintenance do not qualify.
What are the most efficient upgrades/renovations in a home?
Buyers and Sellers alike notice these upgrades FIRST when looking at renovations:
1. Kitchen cabinets
2. Hardwood floors
3. New windows
4. Removing walls to open up space
5. Finishing the basement
6. Kitchen appliances
7. New shingles
8. New bathroom taps and plumbing
9. New bathroom tiles
Please feel free to ask me for details!
Thanks for reading,
Alexandra
http://www.bennettpros.com/
You can now qualify for a grant of up to $10,000 from the Federal and Provincial governments when you complete energy efficient renovations.
The Federal government's recent budget included a number of provisions that may benefit Canadian homeowners and investors. How can Canadians take advantage of the Home Renovation Tax Credit (HRTC)?
Who can claim?
The HRTC is family-based. For the purpose of the credit a family is generally considered to consist of an individual and, if the case may be, the spouse. The amount you are eligible fo ris based on the total value of expenditures for a dwelling (house, condo or cottage).
How this works?
The 15% credit may be claimed on the portion of said expenditures over $1,000 and under $10,000 meaning you could receive up to $1,350 as a tax credit. Please note that routine repairs and maintenance do not qualify.
What are the most efficient upgrades/renovations in a home?
Buyers and Sellers alike notice these upgrades FIRST when looking at renovations:
1. Kitchen cabinets
2. Hardwood floors
3. New windows
4. Removing walls to open up space
5. Finishing the basement
6. Kitchen appliances
7. New shingles
8. New bathroom taps and plumbing
9. New bathroom tiles
Please feel free to ask me for details!
Thanks for reading,
Alexandra
http://www.bennettpros.com/
Thursday, March 19, 2009
What Is A Buyer Agent?
Did you know all realtors work on behalf of the seller of a home and not the buyer?
Did you know that by law, all Ottawa Realtors are obligated to work in the best interest of their clients. This means that the Real Estate Agent showing you the beautiful home, listening to you talk about arranging your furniture, talking about financial details - is actually working for the Seller of that home.
Canadians now have two choices: customer relationship or client relationship.
A customer service agreement is a disclosure form that states that the realtor is NOT working for you as a buyer, but is providing customer service (fair and honest treatment, factual information about the property that is not visibly evident and to answer any questions you ask about the condition of the property) to you.
As a customer you are virtually unrepresented and in the largest transaction you may ever make.
Why not use a Realtor?
On the other hand, Buyer Representation Agreements state that the realtor is working for you and that you are bound to that realtor for the term of the agreement with a holdover period.
In this case, your realtor is bound to you with fiduciary duties, (loyalty, obedience, full disclosure, duty to use skill, care and diligence, duty to account for all monies) and protects your information. A big thing for me is that it also allows the realtor to share her expert opinions, giving you full advantage of their knowledge and expertise.
There is nothing in the Buyer Representation Agreement that states that you have to buy anything. It only states that if you do that you will use this particular Realtor and that they will be compensated for the service provided.
The best part is that there is no fee to the Buyer client. Instead the realtor gets paid by the seller’s agent, just the way it has always been. Yes, that’s right, all that hard work and we work for you for FREE!
How do you become a client? It’s easy—home buyers sign an exclusive Buyer’s Representation Agreement with a Realtor. Usually, the party agrees that they will work together for a specified period of time and within that time the Reatlor agrees to represent that Buyer to the best of thier ability! Why not use a Reatlor?
Did you know that by law, all Ottawa Realtors are obligated to work in the best interest of their clients. This means that the Real Estate Agent showing you the beautiful home, listening to you talk about arranging your furniture, talking about financial details - is actually working for the Seller of that home.
Canadians now have two choices: customer relationship or client relationship.
A customer service agreement is a disclosure form that states that the realtor is NOT working for you as a buyer, but is providing customer service (fair and honest treatment, factual information about the property that is not visibly evident and to answer any questions you ask about the condition of the property) to you.
As a customer you are virtually unrepresented and in the largest transaction you may ever make.
Why not use a Realtor?
On the other hand, Buyer Representation Agreements state that the realtor is working for you and that you are bound to that realtor for the term of the agreement with a holdover period.
In this case, your realtor is bound to you with fiduciary duties, (loyalty, obedience, full disclosure, duty to use skill, care and diligence, duty to account for all monies) and protects your information. A big thing for me is that it also allows the realtor to share her expert opinions, giving you full advantage of their knowledge and expertise.
There is nothing in the Buyer Representation Agreement that states that you have to buy anything. It only states that if you do that you will use this particular Realtor and that they will be compensated for the service provided.
The best part is that there is no fee to the Buyer client. Instead the realtor gets paid by the seller’s agent, just the way it has always been. Yes, that’s right, all that hard work and we work for you for FREE!
How do you become a client? It’s easy—home buyers sign an exclusive Buyer’s Representation Agreement with a Realtor. Usually, the party agrees that they will work together for a specified period of time and within that time the Reatlor agrees to represent that Buyer to the best of thier ability! Why not use a Reatlor?
Monday, March 2, 2009
CMHC's Preditions for 2009
Existing home sales, as measured by the Multiple Listing Service (MLS®), are expected to decline 14.6 per cent during 2009 to 370,500 units.
In 2010 the level of MLS® sales is expected to increase by 9.3 per cent to 405,000 units.
The average MLS® price is also expected to decrease over the course of 2009. Average prices are forecast to be $287,900 for 2009, a decline of 5.2 per cent, while 2010 will see little change from 2009 average prices.
As Canada’s national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.
* The forecasts included in the Housing Market Outlook are based on information available as of January 27. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.
1 The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA). Data are for 10 provinces. All 2008 MLS® figures are estimated as at the time of the forecast. Final figures have since been released by the Canadian Real Estate Association.
National Housing Outlook
Key Housing Market Indicators
2008 (Actual)
Total housing starts (units) - 211,056
Total single-detached houses - 93,202
Total multiple housing units - 117,854
Total MLS® sales - 433,990
Average MLS® selling price ($) - 303,607
2009 (Forecasts)
Total housing starts (units) - 160,250
Total single-detached houses - 74,825
Total multiple housing units - 85,425
Total MLS® sales - 370,500
Average MLS® selling price ($) - 287,900
2010 (Forecasts)
Total housing starts (units) - 163,350
Total single-detached houses - 76,600
Total multiple housing units - 86,750
Total MLS® sales - 405,000
Average MLS® selling price ($) - 288,100
In 2010 the level of MLS® sales is expected to increase by 9.3 per cent to 405,000 units.
The average MLS® price is also expected to decrease over the course of 2009. Average prices are forecast to be $287,900 for 2009, a decline of 5.2 per cent, while 2010 will see little change from 2009 average prices.
As Canada’s national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.
* The forecasts included in the Housing Market Outlook are based on information available as of January 27. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.
1 The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA). Data are for 10 provinces. All 2008 MLS® figures are estimated as at the time of the forecast. Final figures have since been released by the Canadian Real Estate Association.
National Housing Outlook
Key Housing Market Indicators
2008 (Actual)
Total housing starts (units) - 211,056
Total single-detached houses - 93,202
Total multiple housing units - 117,854
Total MLS® sales - 433,990
Average MLS® selling price ($) - 303,607
2009 (Forecasts)
Total housing starts (units) - 160,250
Total single-detached houses - 74,825
Total multiple housing units - 85,425
Total MLS® sales - 370,500
Average MLS® selling price ($) - 287,900
2010 (Forecasts)
Total housing starts (units) - 163,350
Total single-detached houses - 76,600
Total multiple housing units - 86,750
Total MLS® sales - 405,000
Average MLS® selling price ($) - 288,100
Friday, January 30, 2009
Federal Budget Announcements and Canada's Mortgage Industry
Canada's Mortgage Industry Welcomes Federal Budget Announcements
Earlier today, federal Finance Minister Jim Flaherty tabled the federal budget. Several measures affect Canada's housing and mortgage industry.
· Temporary home renovations tax credit of up to $1,350 for eligible home renovations and alterations
· Increase in the home buyers RSP plan, withdrawal limit increased to $25,000 from the current $20,000
· A new first time home buyers tax credit that will provide up to $750 in tax relief for closing costs
· Broad based personal tax reductions including an increase in the personal exemption and increases to the limits for the two lowest tax brackets
Common Concerns of Virgin Homebuers
“A nice house is too expensive”
The average house in Ottawa in 2008 sold for $288,500. Your monthly payment on this house would be approximately $1175. Now remember, this is the AVERAGE house in Ottawa, does that sound too expensive?
“Monthly mortgage payments are too high”
The average rent for a 2 bedroom apartment in Ottawa is $960/month. With ‘yesterday’s’ interest rate of 4.9% that same $960/month equates to a $193,000 home. With ‘today’s’ interest rate of 3.45% and the same monthly payments you could afford a $240,000 home! What would you say if someone offered you $47,000 towards your first home?
“I’m worried about home values dropping”
The average price for all of 2008 was $288,500, an increase of 6.3% over 2007. Paying rent each month is in fact losing you more money than you know. Consider this, if you were to buy a $300,000 home with 5% down, and experience a very modest 3% growth (half of the expected national average), your $15,000 investment would increase to $24,000 which is a 60% return on investment! Whereas your $11,760 (1 year of $960/month rent) has gone towards paying off someone else’s mortgage.
“I don't even know where to start”
You already have! Making the first move to your move is doing your initial research anf getting answers!
The average house in Ottawa in 2008 sold for $288,500. Your monthly payment on this house would be approximately $1175. Now remember, this is the AVERAGE house in Ottawa, does that sound too expensive?
“Monthly mortgage payments are too high”
The average rent for a 2 bedroom apartment in Ottawa is $960/month. With ‘yesterday’s’ interest rate of 4.9% that same $960/month equates to a $193,000 home. With ‘today’s’ interest rate of 3.45% and the same monthly payments you could afford a $240,000 home! What would you say if someone offered you $47,000 towards your first home?
“I’m worried about home values dropping”
The average price for all of 2008 was $288,500, an increase of 6.3% over 2007. Paying rent each month is in fact losing you more money than you know. Consider this, if you were to buy a $300,000 home with 5% down, and experience a very modest 3% growth (half of the expected national average), your $15,000 investment would increase to $24,000 which is a 60% return on investment! Whereas your $11,760 (1 year of $960/month rent) has gone towards paying off someone else’s mortgage.
“I don't even know where to start”
You already have! Making the first move to your move is doing your initial research anf getting answers!
Monday, January 26, 2009
De-Mystifying Mortgage Terms
January 20, 2009 – BMO Bank of Montreal today announced that it is decreasing its CDN$ prime lending rate from 3.50 per cent to 3 per cent, effective January 21, 2009.
So what does that mean for a first time homebuyer?
First of all it is important to understand what different mortgage options are out there to you.
Variable Rate Mortgage
- Interest rate fluctuates with the Bank’s prime lending rate
- Payments generally remain the same
Note: The amortization period (number of years it takes to repay your loan) may vary with fluctuations in the Prime Rate (it may be longer if interest rates have risen since the start of the term, or shorter if interest rates have fallen since the start of the term)
Choose this Mortgage option if:
- You want maximum flexibility
- You might sell your home (doesn't apply to first time homebuyers)
- You hope to prepay more than 20% of your mortgage amount
- You believe rates will drop
Fixed Rate Mortgage
- Interest rate stays constant to the end of the selected term
And to further complicate things there are 3 types of Fixed Rate Mortgages out there:
1) Open Fixed Rate Mortgage
- Prepay as much as you want or completely pay out at any time without charge
Choose this Mortgage option if:
- You want maximum flexibility
- You are thinking of selling your home (doesn't really apply to first time buyers)
- You wish to prepay more than 20% of your mortgage amount
- You believe rates will decline
2) Convertable Fixed Rate Mortgage
- Offers a lower interest rate than the open mortgage of the same term
- Option to change to a closed term of one year or longer without charge
Choose this Mortgage option if:
- You want to keep your options open.
- You want lower rate than open mortgage of same term.
3) Closed Fixed Rate Mortgage
- Make regular payments and perhaps limited prepayments
- Offers a lower interest rate than an open mortgage of the same term
Choose this Mortgage option if:
- You want to budget precisely
- You want piece of mind that your rates aren't going up
- You want lower rate than an open mortgage of same term
All this being said, which option is right for you right now? You need to seriously ask yourself what you want to spend per month and how tighly you want to manage your budget. Then I suggest you sit down with a professional - a mortgage broker. They really do have the ability to cater your mortgage to suit your indiviual needs.
A little food for thought..
As early as a month ago, the variable mortgage rate was 5.5%, it is now a record low of 3.45%. Some of you may be thinking, 'Big deal, that's only 2%', well consider this. The average 2 bedroom apartment in Ottawa is $960/month, if you were to take that same monthly payment and pair it with 'yesterdays' interest rate, that would translate it into a mortgage payment for a $193,000 home. If you take that same monthly payment and use 'todays' interest rate, you would be paying down a $240,000 home - that's like someone giving you $47,000 for FREE towards your new home!! As you can see, there is no better time to buy a house - the interest rates aren't going to get any lower.
Thanks for reading!
Sunday, January 25, 2009
Ottawa's Rental Market
There has always been a demand for rentals in the Ottawa housing market. Rental apartments are generally in demand by young adults, financially weaker households and more and more so by newly landed immigrants. Ottawa received more than 6,000 new immigrants every year and new rental constructions accounts for less and 3% of total constructions since 2003. With both of these factors in play there is a strong demand for rentals and an ever-tightening inventory.
On a side note, CMHC (Canada’s Mortgage and Housing Corporation) released a survey in 2007 revealing that 20% of approximately 20,000 condominium apartments were rented out.
Average Rent (2 Bedrooms):
2005 - $920
2006 - $941
2007 - $961
2008 - $980
2009 (forecast) - $1000
Vacancy Rate:
2005 - 3.3%
2006 - 2.3%
2007 - 2.3%
2008 - 1.9%
2009 (forecast) - 1.6%
What does these numbers mean?
Ottawa's rental market is getting more expensive and fewer apartments are available.
How do these numbers affect the Real Estate market in Ottawa?
To buy or not to buy has always been the question.. Right now I am off to meet a client (Yes at 9:00pm on a Sunday night) but I will continue this thought tomorrow. Until then thank you for reading and have a great night!
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