Whether in Spruce Grove, Stony Plain, Parkland County, the Edmonton area or elsewhere, REALTORS® love statistics.  We like to know how many and what kind of properties are being listed and sold, and for how much.  We also like to examine trends over time because this helps us help our clients determine realistic property values when they buy or sell a home.

We often hear about the ups and downs of the real estate market, but what does this really mean?  Is real estate a good investment?  Does real estate always appreciate? 

Answers to these questions can be seen fairly easily by looking at a few statistics, especially when these are presented in graphic format.   If we look at the average residential selling prices for homes in the Edmonton area from 1962 to 2009, we’ll see some interesting trends.  Even more interesting is that these trends tend to repeat themselves.

From 1962 to 2009 the average selling price of a residence in Edmonton increased from $12,556 to $320,392 – an increase over 47 years of 24 times the starting value!  Does this mean that the value of one’s home doubles every few years?!  Well, sort of…  Examining the numbers year by year, we see that while the overall price trend has been ever higher, the movement is not always steady and not always upward.  There were a number of times during those 47 years when the average selling price in one year, or even for a series of years, was lower than the previous year.

Prices stumbled in 1964, recovering the next year.  Steady, and in some cases significant growth, continued until 1981.  Looking more closely at the gains during those 16 years, and doing a little math, we discover that double digit percentage gains over the previous year occurred in 1967 (12.3%), 1968 (12.9%) and 1969 (17.7%).  During the next 3 years prices continued to increase but at a more modest rate.  1973 saw prices take another leap (14.6%), and that was followed by 3 more years of huge year over year gains (1974 – 28.2%; 1975 – 26.4%; 1976 – 32%).  A house that sold in 1972 for $24,777 was suddenly “worth” $59,450 only 4 years later.  By 1981 the average selling price had risen to $91,438, a gain of 369% in just 9 years.  Many people buying and then re-selling property during this time made substantial financial gains.

But the sometimes cruel nature of the real estate market took over in 1981.  A person buying a home in 1981 would have seen prices drop for the next 4 years, and then increase modestly for another 4 years but still not rebound to the price paid in 1981.  A hard lesson perhaps.

By 1990 the average residence sold in Edmonton for $101,014.  Prices rose for 5 years, fell in 1995 and 1996, and then rose for the next 11 years, up to 2007.  This is eerily reminiscent of the trend mentioned above starting in 1964.  Several of the 11 years between 1997 and 2007 saw a price gain that was dramatic.  In 2002 and 2003 percentage increases were 12.6% and 10.2% respectively.  In 2006 prices rose 29.4%.  This was followed in 2007 by the largest one-year percentage increase since these statistics began:  34.7%, or a rise to a dollar value of $338,009.  Most people are probably aware of what happened to the housing market in the US during this period of time and its effect on house prices throughout North America.  The average selling price of a home in Edmonton dropped 1.5% in 2008 and 3.7% in 2009 but appears to be trending upward so far in 2010.

These trends are even easier to spot in a chart like this one:

Looking at the proverbial big picture, we see the following:

• The average annual price increase is roughly 7.8%
• The average 5-year price increase is about 49%
• Only 9 years between 1962 and 2009 showed price decreases
• If you held a property for 9 years, you would always see an increase
• Edmonton values appear to double every 9 years, on average, since 1962

Statistics and facts suggest that yes, real estate is definitely a good investment, and yes, it does appreciate over time.  

What about right now in the marketplace?  Are we once again in the trend of a couple years of soft prices followed by a decade of increases?  Are prices going to continue to fall before they recover as they did in the 1980s and 1990s?  Is now a good or bad time to buy and sell?  Hard to predict and impossible to know.  This is, of course, exactly what makes real estate interesting!

Interested in learning more about the real estate market in Spruce Grove, Stony Plain, Parkland County or the Edmonton area?  Phone me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Whether you live in Spruce Grove, Stony Plain, Parkland County, the Edmonton region or elsewhere, you have probably heard the phrase “location, location, location” used in real estate and wondered why the need to state it three times.  It is repeated to emphasize its importance.  It is one of those things in real estate that just is, and when you ignore its importance you will likely regret it.

As a buyer myself, I ignored it twice in the last 30 years.  One of those times was when I remustered to a Structural Technician (changed trades) while serving in the Canadian Armed Forces.  My first posting was to Wainwright, Alberta where housing was pretty pricey, so we decided to purchase a major fixer upper in Czar, Alberta (200 people, 10,000 head of cattle), 50 km south of Wainwright.  My thinking was twofold:  we could buy a house a lot cheaper in Czar, and this would be good practical experience to experiment with my new construction trade.  We could add sweat equity to this house, making a really nice home and still be competitive with the Wainwright market.

My wife Paulette and I spent the next 3 ½ years gutting the house, including the interior walls, kitchen, basement, lighting, electrical…  In the end the house turned out beautiful.  But when we got posted to the north end of Vancouver Island, no one wanted to buy the house, because we could not compete with the buyers’ desire to live in Wainwright.  To make a long story short, we rented the house to the only person who applied, and that person trashed the house.  I took time off, came back to Czar, fixed the house up for sale and put it back on the market, selling it for what the market would bear. The lesson here:  Buyers will pay a premium to live where they want to live. 

“Location, location, location” usually means attractive neighbourhoods close to schools, hospitals, and facilities for entertainment, recreation and shopping.  It can mean proximity to a lake or backing onto a park, green space or golf course.  Homes in undesirable locations might be next to commercial/industrial buildings, beside railway lines, under flight paths, or in neighbourhoods with high crime rates.  Also included are economically depressed areas, where neighbours show zero pride of ownership in maintaining their homes and yards.

Although you will pay a premium to buy in a desirable location, the payback is well worth the extra cost.  Desirable locations sell quicker, usually appreciate at a greater rate, and are likely to sell before less desirable locations even when the market is slow.

From my past experiences, if budget is an issue (and when isn’t it?), I would settle for a smaller home located in a desirable location, later moving up to a larger home when I could afford it.

Looking for a great home in a great location?  Let me help!  Call me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

If you are asking the question, then the answer should probably be, yes.  No one should ever advise you not to get a home inspected.   If you do decide to go ahead, make sure the home inspector has experience, training and a broad understanding of home construction and all the bits and pieces that make a house whole.   This advice holds true whether you are looking to buy a Spruce Grove or Stony Plain home, a Parkland County acreage, or property in the Edmonton region or elsewhere.

A good home inspector will spend between 2 to 4 hours (depending on the house size) inspecting the home.  He or she should have equipment such as a moisture detector, carbon monoxide detector, ladders, magnifying glasses, mirrors and other specialized equipment in order to check all areas of the home and in cracks and crannies when needed.  A thorough home inspection should give you a good overview of the general condition of the plumbing, electrical, roofing, insulation, windows, grading, drainage, the foundation where exposed, furnace, hot water tank, and general construction and condition of the home.  It is advised that you be there for most of the inspection or at least the latter half of the inspection.  That way you can see firsthand any deficiencies (minor or major) noted by the inspector.  You can also ask the inspector to look more closely at any areas that are of concern to you.

At the end of the inspection the home inspector should provide you with a report outlining his observations. He or she should also give you an overall view of the condition of the home (i.e. sub-standard, normal, above average), and recommend maintenance that should be done over time.

A house put under a magnifying glass like this will create a list of observations.  That list can sometimes seem overwhelming.  Don’t be surprised when your home inspector refers to a 25-year-old furnace as being “fully depreciated”. That doesn’t mean the furnace has to be replaced tomorrow.  If it is operating safely, it could last, with proper maintenance,   another 5 or more years.  But a 25-year-old furnace is only about 60% efficient (60% of the fuel used by the furnace is used to produce heat and the other 40% goes up the chimney). Most people nowadays replace furnaces in order to have a more efficient furnace.  The building code now requires that all new furnaces be high efficiency (90 plus percent). The home inspection needs to be put into perspective.  It should reflect, within reason, what you viewed and bargained for when you negotiated your purchase.

Although a home inspection can be used to try to re-negotiate the original purchase contract or to try to get the seller to do repairs or upgrading, this is usually the exception to the rule, reserved for bigger ticket items that a buyer would not have expected from the original viewing of the home.  Things that fall into this category could include safety issues (for example, a cracked heat exchanger on a furnace), a structural issue that you were not aware of, or such a very large list of minor deficiencies that it now represents a major expense, with the exception of a home that was known to require a lot of work, such as a “handyman special”.  There is no one answer that fits all situations, so it is always best to discuss any concerns you have with your REALTOR®.

See also “How to Pass Your Home Inspection” on BarryT.ca.

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

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.

With the popularity of all sorts of home renovation shows, people in Spruce Grove, Stony Plain, Parkland County, the Edmonton region and elsewhere are experimenting with home decorating home improvement, and home flipping at unprecedented levels.

I have to admit I watch a lot of these programs myself. We humans are drawn to watching other people work. It is amazing how easy some professionals make things like framing, dry walling, painting, decorating, etc, look. The key word here is professional. I often say to people you can do any improvement yourself and save the labour cost (about 60% of the cost of the improvement); however, the end result has to look like a professional did the job.

I understand the motivation to want to do the work yourself. First off it doesn’t look that hard to do. Second you don’t have the extra money to hire someone to do the work, we have all been there. But one day (statistically within 5 years) you will be trying to sell your home and the improvements in it to someone else. Even unsophisticated buyers, people who have never owned their own home, recognize poor or amateurish work. If a home has a number of areas where a home owner has done home improvements poorly, a potential buyer may perceive negatively.

Here’s how perception works

Perception is a buyer’s belief system.  Whether right or wrong, what buyers perceive they believe. A buyer’s perception can extend beyond any poor work done by you or someone else.  It could be perceived that most of the improvements in your home were done amateurishly or cheaply. I cannot overemphasize the importance of making your home improvement projects look like they were done by a professional. Here are a few hints:

1. Do some research before you take on a project. The internet is a great source. Be careful to select the right tools for the job. For instance when painting, not all brushes, rollers or paint are the same. They are all designed for different purposes and applications. Also if painting, make sure you learn to cut in properly. Roller hit marks on the ceiling are a trademark sign of a home improvement project gone bad.
2. Sign up for home improvement seminars at your local building supply centre, Home Depot, Rona, etc.
3. Find someone who is handy at doing their own home improvements and offer free labour to help them take on a home improvement that you feel most comfortable with.
4. Start in an area that is less visible, like a bedroom (preferably down stairs), closet, or storage room.
5. Be prepared to invest time. It will probably take you 2 to 3 times longer the first time you tackle a renovation, compared to someone experienced at it. If it doesn’t go right the first time you do it, be prepared to re-do it. Remember that by learning to do it right you are accumulating cumulative knowledge that will come in handy the next time you need to use it.

Although you feel you are doing the improvement for yourself, remember that when you decide to put your house up for sale, you are now trying to sell the improvement to someone else.

If you do decide to do home improvements on your own, either by necessity or desire, take it slow. Do the research, take your time, make sure you select universally appealing colours, and do the job well. It can be rewarding, both financially and emotionally. But remember:  whatever improvements you do to your home should look like a professional did it. Enjoy the savings and the added value of your home.

Looking for more information about Spruce Grove real estate?  Call me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

So it’s time to sell your Spruce Grove home or Stony Plain real estate in Parkland County.

You should do well considering the unprecedented property appreciation in the Spruce Grove, Stony Plain and Parkland County area over the last few years.

When getting ready to sell, there are things you need to think about. When in a buyer’s market, you need to be the best priced and best home for the money on the market. Your home needs to show well which means clutter free and well kept.

Most home buyers are already over committed and may not be looking for a home that needs major repairs or improvements upon moving (not counting having the money available to do repairs, especially first time home buyers). Take a look at your home as if you were in the market to buy. The following are a few ideas and hints to help you maximize the amount of money you can get for your home.

How does your home look from the street?

That is where prospective buyers will be when they first look at your home and form that all important first impression. Try some of the following:

• remove clutter from your yard;
• consider buying some potted plants to make your yard more eye appealing. Mow your lawn regularly. Pick up after your pets;
• clean your windows and siding;
• ensure your eaves are clear and in good repair;
• do any necessary painting, staining and sealing;
• do your outside lights work, replace any burnt out bulbs;
• do you have wood trim around your house, paint or stain if required;

Now let’s go indoors.

You want a buyer to see a neat, clean, well lit interior. Get clutter out of sight (you never want a house to feel smaller than it is). Ensure carpets are clean and floors are scrubbed and polished and that walls and baseboards show clean and bright. Make sure lights work and are free of cobwebs. You want your home to look spacious, bright and fresh.

• check stairs for loose boards, ripped carpeting, missing or loose handrails;
• ensure doors open and shut properly;
• make sure closets look spacious and organized;
• keep furniture to a minimum so that rooms do not appear smaller than they are.

Take a sniff. Are there any unpleasant odors in your home? If so track them down and eliminate them.

If you have a lot of family memorabilia, consider thinning it out or start packing it.  Remember, you are moving. You want prospective buyers to see themselves living in your home. That mental picture becomes more difficult for them if your house resembles a shrine to you and your family.

Kitchens and Bathrooms

Two of the most important rooms in the home are kitchens and bathrooms.

• clean all appliances, including your oven. Clean or replace your greasy stove hood filters.
• clean your cabinets inside and out, as well as your backsplash. Repair leaking faucets.
• remove items stored on countertops. Remove excess items stored under your sink.
• remove anything stored on top of your refrigerator;
• remove artwork and magnets from your refrigerator;
• in bathrooms, scrub sinks, tubs and toilets;
• clean mirrors, light switch plates;

Basement

Your basement should be clean and not cluttered. If your basement is damp or musty consider a dehumidifier. Check the grading around your house. If the grade slopes toward the house you may want to look at adding a clay based fill to encourage water to drain away from the house. Check your downspouts and ensure they are moving water well away from your home. Most water problems in a basement are due to poor drainage. Change the filter to your furnace. If you have cats ensure the litter box is clean before all showings.

Garage

Make sure you attend to the garage as well. It should also be clutter free. Get rid of old car parts, discarded bicycles, empty paint cans and the hundreds of useless items that accumulate in garages.

Show Time

Now it is time to show your home. You will need a plan of action that assigns duties to each family member so that your house can be quickly ready for showing.

1. open all drapes, blinds and turn on lights to make the house bright;
2. air out the house to get rid of any odors from cooking, pets, etc;
3. pick up clutter and empty garbage;
4. make everything as clean as possible;
5. set your thermostat at a comfortable level;
6. try to remove pets from the house;
7. leave when your house is being shown;
8. display photos of house in summer if your house is being shown in winter months;
9. leave out heating and electric bills;

We all have busy lives and don’t normally live as the above would suggest. But when selling, the above suggestions have proven successful in helping sell homes quicker and for more money. You may not be able to accomplish all of the above suggestions, but if you do, you will realize thousands of dollars more for your effort.

Property to sell?  I’d love to help.  Call me at 780-910-9669, email me at barry@barryt.ca, or contact me here.