You’ve just sold your house or acreage in Spruce Grove, Stony Plain or Parkland County.  That is, you’ve accepted the Offer to Purchase, and now all you have to do is wait for the proceeds to be deposited into your account, right?  Not so fast!  There are many things that could undo a sale.

Buyers’ Circumstances:

• Buyers not pre-approved for a mortgage.  After making an offer, they discover they can’t get a loan for the amount they need.  (Mortgage approval is influenced by
  • buyers’ source, size and stability of income;
  • their debt load, or “debt to income ratio”;
  • credit history;
  • size and source of down payment;
  • value of the property being purchased, and so on.  Watch for a future blog entry on this topic.)
• Interest rates increase; buyers no longer qualify for a mortgage
• New government legislation.  Ottawa has just announced a decrease in the length of time a mortgage can be amortized, from 35 to 30 years, making monthly payments higher and therefore out of reach for some buyers
• At closing, buyers are short of cash for the down payment and closing costs
• Change in life circumstances:  job loss, illness, injury, divorce, death, anything that affects the desire and means to purchase the property
• Buyers change their minds about the property:  family members don’t like it; buyers are unhappy with home inspection report; on “final walk-through” they discover damaged or missing property or agreed-upon repairs not made; etc.
• Buyers’ conditions, such as sale of their current home, cannot be met

Sellers’ Circumstances:

• Sellers change minds about selling:  job transfer falls through; marriage reconciles; suitable replacement home cannot be found; etc.
• Financial concerns:  proceeds from the sale will be less than anticipated; sellers discover they owe more than they will net from the sale; sellers learn their mortgage differential or penalties are much higher than expected; etc.  (Not sure what mortgage differential means?  See my blog entry entitled “Interest Rate Differentials”, August 2010).
• Unable to meet contract terms such as move-out date
• Problems with the property:  title not held free and clear; sellers short on cash and unable to clear up liens on property; sellers unable to complete agreed-upon repairs; undisclosed defects come to light; etc.  (Sometimes property problems are even more severe.  It’s rare, but occasionally an inspection reveals that a property is uninsurable or even unsaleable due to being structurally unsound, infected with mold, and the like.  And the ultimate problem affecting a sale:  destruction of the property before the final sale goes through!)

Circumstances Involving Other Parties:

• Buying and selling real estate is a complex business involving not just buyers and sellers and their REALTORS®, but also lawyers for each side of the transaction, mortgage specialists, appraisers, home inspectors and others.  If any one of the individuals is unavailable when needed, misses a deadline, or fails to complete accurately all the required paperwork, this could be enough to cause a sale to fall through.

A REALTOR® can often salvage a negative situation.  For example, if the buyer complains that the home is not in the condition in which he viewed it, the first step is for the REALTORS® on both sides to confer about how to make things right.  And – don’t tell anyone – I admit that I’ve taken it upon myself on occasion to personally make required repairs so that a sale will not be lost.  I also recently dealt with a situation where I knew that a buyer’s home was not going to be sold by the specified date or for the price required to get the buyer into the home he’d made an offer on.  Negotiating a later possession date for my client (the buyer) was easy.  Getting the sellers and their REALTOR® to recognize that the sale would be lost unless they were willing to renegotiate the selling price and accept less for their property was much harder, but ultimately, this allowed both buyer and sellers to reach their goals.

While it’s impossible to prepare for every eventuality, it is possible to minimize the potential for problems.  My best advice is to choose your REALTOR® carefully and leave the lines of communication open.  A successful end to a real estate transaction almost always occurs when everyone involved proceeds with good faith, patience and good will.

I would be pleased to help you achieve the  successful sale of your property.  Contact me here, email me at barry@barryt.ca, or phone me at 780-910-9669.

My clients in Spruce Grove, Stony Plain, Parkland County and the Edmonton area ask lots of questions, and I’m happy to answer them!  Here are some of the most common questions they have about the process of listing and selling their home.

Why should I list with a Realtor®?

Only REALTORS® can place your listing on the MLS® or Multiple Listing Service®, the cooperative listing system operated by local real estate boards.  The MLS® is literally the “store front” where the vast majority of serious buyers come to look for housing.

Once listed, information about your property is accessible to all other REALTORS®, who all have the opportunity to sell your property.  This means much more exposure for your property and many people working on your behalf.  This all happens at no charge to you until your property sells.

What is a listing agreement?

The process of selling a home through a REALTOR® starts with the Listing Contract.  This is a binding agreement between you and the brokerage company the REALTOR® represents.  Information found in a standard Listing Contract includes the following, as well as various other terms, conditions, definitions and explanations:

• identification of the persons entering into the agreement, along with contact information
• details about the property, such as list price, detailed address, unattached goods (chattels) included with the property
• start and end dates of the agreement
• services offered by the REALTOR® and his/her brokerage, along with their obligations to you the seller, and your duties as seller
• remuneration in the form of a commission (a percentage of the selling price) available to listing and selling REALTORS®

It is important that the agreement accurately reflects your property details and clearly spells out the rights and obligations of all parties.  Both you and the listing REALTOR® sign the agreement, and each receives a copy.

How much should I ask for my house?

This is a major issue for anyone selling a property.  If your price is too high, your home won’t sell, and if it’s too low, you lose money on your investment.

You probably have an idea of how much your home is worth, but it’s important to get input from an impartial professional.  REALTORS® can use their research and experience to provide a market assessment of what similar properties in your area have sold for, as well as a history of the local market.   This should allow you to reach your goal of getting the best price you can for your home.

What do I need to do to prepare my house for showings?

People want to buy clean, well-cared-for, up-to-date homes.  When prospective buyers view your home, they picture themselves living there, and they are greatly influenced by the senses of sight and smell.  The best advice is to make all minor repairs, thoroughly clean and de-clutter your home from top to bottom, light it well, and remove as much evidence of your presence as you possibly can, including keeping all pets out of the way.  Your goal is to make your home feel as spacious, attractive and welcoming as possible.

What happens when I receive an offer?

Once a buyer is found, you’ll receive an offer in the form of a Purchase Contract which will detail how much money is being offered, what conditions are attached by the buyer (details of financing the purchase, request for property inspection, sale of the buyer’s home, etc.), when the buyer would like to take possession, and when the offer expires.  As an act of good faith, the buyer will usually make a deposit with the offer.

You don’t have to accept the offer as written.  Most people think an offer is about the price.  It really is more than that:  a combination of the purchase price, conditions (financing, inspection, sale of the buyer’s home, etc.), chattels (unattached goods, such as appliances and window coverings, for example), possession date, and in some cases, the deposit.  This combination of things has value to both the buyer and the seller, and as the seller, you basically have three choices:  accept the offer as is, reject the offer, or make a counter offer.  Counter offers represent one more step along the way to negotiating the final terms and conditions of the sale.

Do I need a lawyer to complete my transaction?

Yes, when working with REALTORS®, you must use a lawyer to complete the selling of your home.  Your lending institution may also require the use of a lawyer for any kind of property sale with or without the assistance of a REALTOR®.

When do I sign the papers with the lawyer?

Be prepared to meet with your lawyer about one week before the agreed-upon possession date to sign the important documents that will allow the transfer of funds for the sale of your property.

Who sends the paperwork to the lawyers and when does it go to the lawyer?

The real estate office that listed the property (that is, the seller’s REALTOR®) will send all the paperwork to both the seller’s lawyer and the buyer’s lawyer, and this will usually be done after all conditions have been removed.

What do I need to bring with me to the lawyer?

Each person listed on documents associated with the purchase (such as the Listing Contract, Purchase Contract, mortgage documents, etc.) should bring two pieces of identification (one with photo), such as a driver’s license or passport, major credit card, social insurance card or health card.

If you don’t see your question here, it might be answered in the Sellers Guide section of my website.  Or, feel free to contact me  here any time  or by email at barry@barryt.ca or by phone 780-910-9669.

So, you’ve de-cluttered your home in Spruce Grove, Stony Plain, Parkland County or the Edmonton area.  You’ve thrown out the real trash, and the things you’re keeping are neatly stored away in an appropriate place.  But what do you do with the stuff that’s left, the items that are too good to just throw away but no longer needed or wanted in your home?  Here are a few suggestions beyond giving things to friends and family members, or holding a garage sale:

 Recycle:

• City of Spruce Grove :  A wealth of information about Spruce Grove’s Blue Bag program , the EcoCentre  (which accepts electronic waste, appliances, tires and scrap metal, in addition to regular Blue Bag items), and information about the disposal of all kinds of other goods.
• Stony Plain’s Wipe Out Waste program, recycling services, etc.
• Parkland County Solid Waste and Recycling

Donate:

If you have anything in good condition (clean, undamaged, meeting current safety standards, etc.), chances are there’s a person or an organization that will accept it.  Be sure to educate yourself about an organization’s guidelines for accepting gifts, however, since not all items will be welcomed by everybody.  Google “donate goods in Edmonton”,  and a very long list of charity websites comes up.  Here are just a few possibilities for passing on your unneeded items to someone who can use them:

• Freecycle  is a concept born of the Internet. Advertise what you have to give away (or what you’d like to receive for free), and watch what happens! Visit the Spruce Grove group’s website.
• Check out “Thrift Stores” and “Youth Services” in Spruce Grove’s Green Book Community Resource Directory.
• See the City of Edmonton’s Reuse Directory for a long list of organizations that accept all kinds of goods.
• See also the list of charities at DonationTown.
• St. Andrew’s United Church Bargain Basement, Spruce Grove, accepts clothing, household goods:
• Cerebral Palsy Association of Alberta  accepts donations of gently used clothing and small household items, including books. Even better, they will pick up items from your home.
• The Canadian Diabetes Association is another group that will pick up items such as clothing, footwear, books, kitchen wares, toys, small appliances, etc. via their Clothesline program.  Arrangements for pick-up can be made online or by calling 1-800-505-5525.
• Goodwill Industries of Alberta does not pick up items from your home but there are drop-off locations in Edmonton and one in Spruce Grove.
• Salvation Army.  Drop off only for clothing, furniture and household goods.
• Alberta Association for Community Living  will pick up clothing and household items; see their website for what they will accept.
• Computers for Schools
• Electronic Recycling Association can arrange pick up of all kinds of electronics.
• ReBOOT Canada  will pick up donations of computer equipment.
• Bicycles for Humanity
• Habitat for Humanity ReStores:  Donate (or buy!) all kinds of reusable building supplies at the two Edmonton locations (addresses available at the website). Pick up and drop off possible.
• Shelter organizations in Edmonton: Most have an ongoing wish list of personal care items, household goods, clothing, food items and the like. A few to contact include: Mustard Seed Edmonton; Homeward Trust; Alberta Council of Women’s Shelters; Bissell Centre; Elizabeth Fry Society; WIN House.
• Eyeglasses: Most optometrists and opticians, such as LensCrafters, will accept old eyeglasses for recycling, as will Lions Club International and Goodwill.

Sell:

You can still pay for advertising in the local paper, or put up notices around town about things you have to sell or give away, but there are easier and cheaper ways!

• Kijiji  Edmonton will advertise for free almost any item that people want to sell, give away or trade.
• Craigslist Edmonton will do likewise.
• EBay

What Other People Have to Say About the Subject:

Moving and Packing – Get Rid of Unwanted Stuff Before You Move

Where to Donate All Your Unwanted Stuff – The Good Human

Questions or comments about this article or anything else to do with homes and real estate?  Contact me here, email me at barry@barryt.ca, or phone me at 780-910-9669.

In my business, as I travel around Stony Plain, Spruce Grove, Parkland County and the Edmonton area, I see a lot of homes.  Very few of those homes, if they are currently being lived in, resemble “show homes”.  That’s because, let’s face it, living is messy.  Evidence of everyday life is everywhere, from wet towels flung over the shower in the master ensuite to children’s artwork clipped to the fridge with magnets given away by local businesses to untidy piles of unread mail atop the dining room table to empty bottles waiting to be taken to the recycle centre, along with the smells of this morning’s breakfast bacon and a cat litter box overdue for cleaning….  You get the picture!

***Given the competitiveness of today’s real estate market, it’s not enough to hang the towels neatly on a towel rack and spray the air with room deodorizer.  The fact that professional home stagers even exist suggests that having your home sell quickly and for a good price requires much more these days.***

Homebuying.about.com has this to say about Home Staging:

“Home staging is about illusions. It’s how David Copperfield would sell a house. It’s beyond decorating and cleaning. It’s about perfecting the art of creating moods. Staging makes your house look bigger, brighter, cleaner, warmer, more loving and, best of all, it makes home buyers want to buy it.

 “Contrary to what you might think, it’s about more than preparing the house for sale. Staging is what you do after you’ve cleaned, de-cluttered, painted, made minor repairs; it’s all about dressing the house for sale.

 “It’s about adding the small details: the lipstick, mascara and, for simplicity, a stunning, single strand of Tahitian pearls.”

So, how do we get from the lived-in look I described in my first paragraph to the artistry of a staged home? 

Let’s start with de-cluttering.  If the very word makes you shudder, you are not alone!  But we all know it’s a worthy activity for many reasons, even more so if the home we’re living in is about to be put on the market.

In a perfect world, de-cluttering is something we do as part of our regular routine, along with sanitizing the bathrooms and vacuuming the carpets.  For example, mail gets opened over the shredder and the trash can, with just the essentials kept for future needs (stored somewhere handy and inconspicuous).  Daily newspaper goes into the recycle bin after being read.  And so on.  But clutter has an insidious way of building up to overwhelming proportions.  Yesterday’s perfectly acceptable possessions – take VHS videotapes, for example – are, all of a sudden, today’s clutter, no longer needed, wanted or useful.  How did that happen?!

And, more to the point, what do we do about it?  Where to start?   It may help to read books and magazine articles on de-cluttering and getting organized, or to visit some of the thousands of websites that tell you why and how to do it (see a few below), or even to hire a professional organizer, but at its simplest and yet most difficult, de-cluttering is about making hard decisions.  It’s about focusing on the life lived in the space, rather than the stuff in the space.  

We are the only ones who can decide what items are trash (throw them away!), what things we no longer need or want but still have value (sell them or give them away!), and which few items we really love and need and use on a regular basis (keep them!).

Ideally, we end up with just the things that contribute to the life we want to live in small enough numbers that our home appears tidy and spacious, yet still reflects the life of the occupants.  Then, maybe, our home is ready to be staged for selling.

De-cluttering Websites:

15 Great Decluttering Tips

100 Reasons to Get Rid Of It (from Martha Stewart)

Declutter, declutter, declutter!

Declutter Forever: Home Organize It!

Decluttering for Home and Head

Fly.lady.net:  How to Declutter [this is an excellent website for all kinds of home management tasks]

Green Interior Decluttering Process

Living Gently Quarterly: Spring Decluttering

Pitch, pile or file?

The Super Easy Approach to Decluttering Your Home

Tips for Decluttering Your Home When Downsizing

Why Declutter? 

Ready to put your newly de-cluttered home on the market?  Contact me here, email me at barry@barryt.ca, or phone me at 780-910-9669.

The phrase “Dress for Success” has a different meaning in real estate than it does in other businesses.  You know that before you put your Stony Plain, Spruce Grove, Parkland County or Edmonton area home on the market, it’s important to clean it thoroughly, get rid of clutter, and make minor repairs.  But these days, in order to sell your home in the shortest amount of time and for the best price, that’s not going far enough.  The next step is home staging.

What is home staging?

Home staging is literally setting a scene and creating a mood – transforming an ordinary house into an attractive, welcoming home that any potential buyer might envision himself living in.   The key is universal appeal.

Secrets of home staging

Home staging doesn’t mean erasing all evidence of the people living in the house, but it’s important to remember that how you live in your home and how you sell your home are two very different things. 

Differences show up in the number and type of things on display, the size of furniture and how it’s arranged, and in the general state of cleanliness and tidiness.  This is one situation where “good enough” probably isn’t!  A perfectly staged home is going to resemble more a suite in a 4-star hotel – before a guest unpacks! – than the homes most of us grew up in or currently live in.  With that in mind, here are a few things to know about home staging.

Update.  The simplest and least costly upgrades, besides paint, include light fixtures, taps and faucets, door and cabinet hardware, switches and switch plates, and drapery and window treatments.

Neutralize.  Neutral colors for walls and floor coverings are best.  People must be able to visualize themselves and their own possessions in the home so the decorating must serve only as a backdrop.  Neutralize also means keeping things generic:  “middle-of-the-road” décor, furnishings and accessories.

Clean.  Really, really clean; mother-in-law clean; brand-new-home clean….!

Edit.  People must be able to see the space, not the stuff in the space.  Corners must be visible, rooms must appear to be open and airy, closets need to look spacious and unfilled, and so on.  This may mean that typical home sellers have to dispose of or pack up for off-site storage 30% to 80% of their possessions.  For example, your kitchen counter should be as close to cleared off as you can make it, with maybe just a coffee maker and toaster to suggest its functionality.  In the bathroom, remove all personal care items, cosmetics and the like from the counter, leaving perhaps just a fresh container of liquid soap next to the sink.  And so on.  Tip:  Take a photo of a room in your house.  Chances are the “too much” factor will be more evident in a picture.

Depersonalize:  Small numbers of family photos, personal memorabilia and items connected to hobbies are fine.  What isn’t fine is anything that detracts from a potential buyer seeing himself in the space.  People don’t want to look at your toothbrush or razor in the bathroom, dirty dishes in the kitchen sink, or piles of clothing on the laundry room floor, for example.  In other words, the place must not look used.

Tidy:  Whatever items are left after possessions have been edited need to be arranged as neatly as possible.  This means not only things readily visible but also everything in closets, drawers, cabinets and other storage spaces in every area of the house, including the garage and outdoors.   As always, the point is to make spaces appear as roomy and functional as possible.

 Sense it.  I’ve heard that 75% of the buyer’s decision is affected by the first 5 seconds through the front door.  Sight and smell are going to be the most important senses in that first impression, and their impact is instantaneous.  Never underestimate the effect of the sight and smell of fresh flowers!

 Light it.  Remember that home staging is about creating a mood.  Warm and bright will sell your home.

Suggest.  Of all the “secrets” of home staging, this is the most important.  Suggest a feeling of hominess and coziness by arranging a few pieces of furniture, such as a pair of modest loveseats and a couple of smallish tables and lamps, in an appealing vignette which will make the buyer want to be a part of it.  Add some accessories such as colorful cushions, a throw in a soft fabric, a couple of classic books or a tea service or a potted plant on a side table with a lamp turned on.  Keep the number and size of items small to trick the eye into maximizing the proportions of the room.  The phrase “less is more” is the very essence of home staging, employing subtlety, simplicity, refinement and classic design.  Everything in a space is there to highlight the best features of the space.  Tip:  Visit a store like Ikea and study the room vignettes.  These are perfect examples of home staging.

Accessorize.  Besides basic furniture appropriate to a given room, professional home stagers add a variety of accessories to hint at feelings or activities associated with that space.  For example:

• in the kitchen: a large bowl of fresh, colorful fruit; an open cookbook; a new matched set of tea towels and oven mitts
• in the bathroom: new clean towels tied with ribbons on the side of the tub; a spa basket of scented soaps and lotions on the counter; a small tray of scented candles
• in the bedroom: new bedcovering and extra pillows; a simple swag of fabric draped above the windows; a small ottoman with an afghan throw; small bedside tables with lamps turned on
• in the living room: mirrors; potted plants or silk flowers; area and throw rugs; a display of unusual knickknacks in a grouping of 1, 3 or 5 items
• on the patio or deck: a small patio table and a pair of chairs, with perhaps a potted plant on the table, to suggest a conversational grouping

While all of this may seem like a lot of work, most sellers who take the trouble to stage their homes really do see a better price within a shorter time frame.

 Ready to sell your Spruce Grove, Stony Plain, Parkland County or Edmonton-area home?  Contact me here, email me at barry@barryt.ca, or phone me at 780-910-9669.

If you are one of those rare people who travels light through life, this article may not be for you.  But if you are like most people, and you’ve been in your home for a while, the thought of downsizing has probably crossed your mind, especially if your family and life circumstances have changed since you first moved into your home, whether in Stony Plain, Spruce Grove, Parkland County, the Edmonton area or elsewhere.

 There are many good reasons to downsize:

• saving money on home upkeep, insurance, taxes and utilities
• unloading some of the “stuff” most of us can’t help accumulating on our life’s journey but which we find we no longer need
• lessening our impact on the environment
• simplifying our daily routines to save time for more interesting and enriching activities
• preparing for a time when someone else may have to look after our affairs and possessions

Before you can downsize your home to a smaller place, you will probably need to downsize inside your home first, getting rid of many everyday objects found there.  This can be extraordinarily difficult.  The truth is that downsizing and de-cluttering often come with a huge pile of emotional baggage.  Making the decision to part with property and possessions you’ve used and loved for a long time, each item attached to memories, can be a wrenching experience.  Sometimes the sheer volume of physical and emotional “stuff” can be so overwhelming that it’s hard to even begin.

Most experts will tell you to start with a small space, like a closet or even a small room.  They suggest you remove everything from the area and sort items into several piles, with the ultimate goal being to throw away the trash, give away or sell things you no longer need or want but which still have some value, and keep only those items you really love and use.  Sounds sensible and simple enough, right?  Most of these experts will also provide you with all kinds of motivational prods to force you to get past your objections (“My grandmother made that old quilt!”  “I might have a use for that tool some day!”), along with questionnaires to help you decide what kind of hoarder you are and which pile something belongs in.

The fact is that none of this advice is going to be worth much until you are sure that you need or want to downsize in the first place.

A thought-provoking article published in the Montreal Gazette (“Boomers upsizing their downsizing plans”) suggests that maybe we shouldn’t be too hasty in automatically assuming that downsizing is for everybody.  Baby boomers once again are doing things a little differently from previous generations.  Some people when they reach a certain age are discovering that it actually makes sense to move into a bigger home, albeit one with a floor plan more geared to their current and future physical needs (for example, a bungalow with an open floor plan rather than a multi-level home), while others decide to keep the family home but renovate it to accommodate changing situations.  There are a number of reasons for this interesting trend:

• Family dynamics have changed. Children are taking longer to leave the nest, or are returning to the family home after relationship break-ups and the like. There are also many people in late middle age who find themselves raising their grandchildren.
• Work lives have changed. Some people realize they don’t want to retire in the way previous generations did. Instead they decide to modify their work so that more is done from home. This creates the need for a home work space.
• Many older adults have the money to continue to enjoy the quality of life that comes from living in a larger private space. This might include making room in the home for hobbies, exercise, more entertaining, etc.
• Keeping a house rather than moving to a condo or some other kind of communal living space may make good economic sense as equity in homes continues to rise.

So … to downsize or not?  Maybe our reluctance to part with possessions has less to do with procrastination and more to do with the need to make practical, realistic life choices.

If you’ve made the decision to downsize and you are interested in looking at smaller properties in the Spruce Grove, Stony Plain, Parkland County or Edmonton area, please contact me here, email me at barry@barryt.ca, or phone 780-910-9669. 

Ever heard of Interest Rate Differentials, or IRDs?  If you haven’t, and your mortgage contract contains a clause referring to it, you could end up with much, much less from the sale of your home in Spruce Grove, Stony Plain, Parkland County or the Edmonton area than you had anticipated.

I just re-read an email from Frank DeAngelis, a Spruce Grove lawyer (contact information below) who often handles the legal side of home sales and purchases for my clients.  Although the email was written a year ago, its content and advice are just as relevant in today’s real estate market:

“In the last few months the Real Estate Department at Main Street Law Offices has dealt with some very surprised and upset Vendors relating to the amount of their mortgage pay-outs. 

“Most Vendors seem to be expecting a three month interest penalty if they pay their mortgage out early.  However, MOST mortgages call for a three month interest penalty or an interest rate differential (“IRD”), whichever is HIGHER.  This higher cost effectively reduces the equity that Vendors have in their existing properties, making their next purchase difficult to complete as they were expecting more equity from the sale of the old house. 

“IRDs can be substantial and are a current concern due to the large decreases in interest rates over the past year.  For example, take a $300,000.00 five year mortgage taken out in 2007 at 6.5%.  With current rates at 4% or less, the pay-out penalty today with three years remaining on the term is $300,000.00 X 2.5% X 3 = $22,500.00

“We strongly recommend that you insist on your clients getting an estimated pay-out statement from their banker, including the IRD pay-out, in any circumstances where reliance is being based on an estimate of equity in the sale property.  This will help avoid closing surprises and assist us greatly in achieving ON TIME ^TM closings for your referrals. 

“Sometimes the bankers can help resolve the issue by “porting” the mortgage.  Each lender has different policies, so each case has to be addressed on its own merits.  We suggest you involve the bankers early to see what they can do to make this issue less of an impact on closing.” 

Frank C. DeAngelis, Barrister & Solicitor

A Market Evaluation is a comparison of your home, whether in Spruce Grove, Stony Plain, Parkland County acreage properties, the Edmonton area or elsewhere, with homes that are currently on the market or were recently on the market. They include “Active Listings”, “Expired Listings” and properties that have recently “Sold”.

 “Active Listings” are homes currently on the market that are similar to yours and are considered to be your competition.

“Expired Listings” are properties that were on the market but didn’t sell.  There can be a number of reasons for a property not selling:  poor marketing, bad location, a house that needs extensive work…   But the main reason that a house doesn’t sell is the price was too high.  There are generally buyers for most segments of the housing market, if the price is right.  There are also strategic ways of adjusting the price of a listed property, usually downwards, while it is on the market.

Recently “Sold” properties that compare closely to your house probably tell the most about how much your house is worth.  These are properties that buyers felt were the best value for them, given the choices available to them at the time. Now if one of those houses that “Sold” were next door to your home, sold yesterday, was built in the same year, same square footage, identical lot, same development and layout, same parking amenities, same number of bathrooms and bedrooms, same basement development, same condition… and was exposed to the market for all to see and then sold, then you would have a really good idea of what your home should sell for.

However, it is never that simple.  So we compare similar homes (“Active”, “Expired” or “Sold”) and we make adjustments to the probable value of your home, either up or down), to compensate for the differences.  The more homes we compare yours with, the better idea we have of the true value of your home.  Some examples would be: busy street versus a quiet cul de sac, larger home compared to a smaller home, large to small lot, extensively renovated compared to everything being original, in let’s say a 20 year old home.  And if you are fair and honest in these comparisons, adding value or subtracting value, one can start to visualize how much your home is worth.

Usually when I do a market evaluation I bring along all the relevant comparisons, full highlight sheets of “Active Listings”, “Expired Listings” and recently “Sold Listings”.  Although I could select a few properties that closely compare and then have a computer program break down averages (days on the market, square footage, number of bedrooms, etc), I find it more informative to show my clients everything I see and explain to them how I analyzed the information to come up with what I think their home is worth.  It is surprising how people will comprehend a seemingly complex calculation when given all the information, and a slight tutorial on how to analyze the information at hand.

See also the article on BarryT.ca entitled “What is Fair Market Value?”

If you are thinking of selling your home in Spruce Grove, Stony Plain, Parkland County or the Edmonton area, I would be pleased to do a Market Evaluation for you.  Please call me at 780-910-9669, or email me at btwynam@telusplanet.net. 

Not intended to solicit properties currently listed.

The single most valuable item most of us will ever own is our home, whether in Spruce Grove, Stony Plain, Parkland County, the Edmonton area, or elsewhere.  It makes sense – and money, when it comes time to sell our property – to keep it up to date and in good repair.

Every home repair and maintenance job could be hired out to a professional tradesman.  Most of us don’t have the expertise or tools to tackle a job like replacing eavestroughs or reshingling the roof or repairing the springs on an automatic garage door opener.

But the average homeowner doesn’t always have to go to the trouble and expense of locating and employing a professional.  A little instruction and practice make many home improvement and repair jobs fairly easy and even fun to do.  One word of caution however:  If you do decide to do the job yourself, the finished product must look as though it was done by a pro!

Where do you go to get the information and help you need so you can do it yourself?

• Check out your local public library.  The do it yourself marketplace has exploded in recent years with a huge array of books, magazines and videos devoted to home improvement.  The library is a good place to find the best and most recent of these, and all for the low price of a library card.
• Visit a large bookstore like Chapters for even more information.  Flip through current issues of magazines such as
  • Canadian Home Workshop
  • Canadian Homes and Cottages
  • Canadian House and Home
  • Canadian Woodworking and Home Improvement Magazine
  • The Family Handyman
  • Remodeling Magazine
  • Renovation Style Magazine (from Better Homes & Gardens)
  • and many others
• See what cable television has to offer on networks like
  • Home and Garden Television and HGTV Canada
  • DIY Canada
  • Arts and Entertainment (A&E)
  • The Learning Channel (TLC)
• Attend home shows like the Edmonton Home and Garden Show,  the Edmonton Renovation Show or the Home and Renovation Show where you can connect in person with home improvement experts, as well as local contractors and tradespeople.
• Stores like Home Depot (Home Improver Club) routinely offer workshops on topics such as installing bathroom faucets, planting a garden, replacing countertops and the like.
• And of course there’s the internet, with thousands of websites and forums devoted to every home improvement topic imaginable.  Here are a few we like:
  • Ask the Builder
  • Bob Vila
  • Canadian Tire How To
  • Do It Yourself
  • Fix It Club
  • Handyman Club
  • HIP: Home Improvement Projects
  • Home Improvement
  • Home Renovation Guide
  • Home Renovations at About.com
  • Home Repair at About.com
  • Home Thinking
  • Home Time.com
  • Home Tips
  • My Home Improvement
  • Old House Web
  • Shell Busey’s Home Improvement Library
  • Start Remodeling
  • This Old House

Did we miss anything?  Do you know of a source of good information or website that we should include in this article?

Comments or questions are always welcome!  Phone me at 780-910-9669, email me at barry@barryt.ca, or contact me here. 

Learn Which Home Renovations Give You the Best Return

It’s time to sell, and you want to get as much value from your Spruce Grove, Stony Plain, Parkland County or Edmonton area home as possible. What home improvements will make that happen?

Most people buying a home want to move into a property that looks new. If you’ve been thinking of selling your home, you’ve probably heard the following advice. Before you put your home on the real estate market, make all necessary minor repairs. Fix that dripping faucet, oil that creaky kitchen cupboard hinge, tack down that loose carpet edge. Give your home a thorough cleaning inside and out. Wash the floors and walls (including the insides of all cupboards and closets), get the carpets cleaned, shine all the windows and mirrors, and, above all, get rid of clutter so that your home looks as spacious and welcoming as possible.

But these are mostly cosmetic touches, much like a woman’s eye shadow and lipstick when she goes out for the evening. What if your property needs the real estate equivalent of Botox injections or, worse, open heart surgery to bring it back to its brand new appearance and structure? If you invest the money to do major repairs, such as reshingling the roof, or to do major updates, like remodeling that ugly old bathroom, will you get your money back through a higher selling price?

The truth is – maybe, but more likely not. Renovating just before you sell is a risky proposition. Any improvements you make to your property may make it more attractive to buyers which may result in a faster sale – or even determine whether it sells at all. You may get a higher selling price than you would have before the renovations. But it turns out that most renovations will not increase the value of the property by 100% of the retail cost of professionally done renovations, with a couple of exceptions.

Ergil & Jackson Appraisals Ltd. (formerly Henderson & Butt) in their Home Renovation Guide include an extensive list of renovations together with the approximate cost, and the possible returns on investment in both percentages and dollar amounts. Their calculations are based on a hypothetical 1200 square foot bungalow located in the city of Edmonton and hiring out the work.

According to this guide, most renovation projects, small or large, will net you a return of only 50 to 75% of your investment.

New cedar shake shingles for your roof? Expect to lay out between $10,400 and $18,200. The return? Anywhere from 50 to 70%, or $5,200 to $12,740. Depending on the condition of the roof, it might be better to simply disclose to prospective buyers that the roof needs repair.

You’ve probably heard that kitchens and bathrooms sell homes. A bathroom remodel, using standard quality new fixtures, flooring and ceramic tile, might set you back between $10,000 and $16,000. But you’ll get that back when you sell, won’t you? Not according to the guide, which says this type of renovation will bring you a return of just 60 to 80%, or between $6,000 and $12,800. Doesn’t seem worth it, does it?

And it gets worse, with some renovations giving you as low as a 0 to 10% return (adding a skylight, installing an alarm system, putting in a garburator or air conditioning). Some renovations, such as adding a sauna or an outdoor hot tub or swimming pool, might even make your property harder to sell!

So which renovations are the best compromise between making your home look its best and giving you a high return on your investment? Improvements that give you a return of at least 70% include:

•  Exterior siding of artificial masonry brick: 70 to 100%
• New roof shingles (asphalt, rubber or metal): 70 to 90%
• Average quality kitchen remodel: 70 to 85%
• New furnace: 75 to 90%
• In-suite laundry added to condominium: 95 to 100%
• Electrical service upgrade: at least 90%
• Garage: 70 to 100%

Saving the best for last:
There is one renovation that will give you your money back, and then some. Good old-fashioned paint, one of the easiest and cheapest renovation projects, especially if you do it yourself, could give you back up to 110% of your investment. Watch for painting instructions and tips in future blog entries.

Check out Ergil & Jackson’s other suggestions and advice.

***A word of caution about renovations in general: Remember that, whether you hire someone or do it yourself, the finished product must always look as though a professional did the work. If you are thinking about renovating before you sell, talk to your realtor about the kind of return you can expect for all your hard work.

For more tips on selling your home, visit the Sellers Guide section of my website.

Comments or questions are always welcome! Email me at barry@barryt.ca, call me at 780-910-9669 or contact me here.