My clients in Spruce Grove, Stony Plain, Parkland County and the Edmonton area have lots of questions, and I’m happy to answer them!  This article is Part 5 of a series that addresses the most common questions I get from buyers.

Lawyers

Do I have to use a lawyer to complete my transaction?

Yes, you will require the services of a lawyer to complete your transaction.

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 and allow you to take possession.

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

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

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

The lawyer will usually require of you:

• 2 pieces of identification (one with photo) for each person listed on the mortgage documents:  driver’s license or passport, major credit card, social insurance card, etc.
• a void cheque:  to arrange with your lending institution for automatic withdrawals of mortgage payments
• a certified cheque or bank draft with the cash to close.  “Cash to close” is the rest of your down payment, lawyer’s fees and disbursements, title insurance and any property tax adjustments
• proof of insurance on your new home

Utilities, Insurance, Property Taxes

When should I get the utilities set up for my new house?

As soon as your offer becomes unconditional, call the city or town for water, sewage and garbage services, as well as each utility company for electricity, natural gas, telephone, cable TV and Internet service.  For specific companies and contact information in Spruce Grove, Stony Plain and Parkland County, check out the Community Connections business directory on my website at  under Utilities and Services, or see my Moving In Package.

What do I need to do with insurance?

Arrange for home and property insurance as soon as your offer becomes unconditional.  Before you can take possession of the property, your lawyer will require proof of insurance prior to your lending institution releasing your mortgage.  Ask your insurance company to fax your insurance information to your lawyer.

How are my property taxes paid?

This is an important conversation to have with both your mortgage broker and your lawyer.  There are several ways property taxes can be paid.  Most people make one payment in full once per year at the end of June, meaning you pay 6 months in arrears and 6 months in advance.  Depending on when you take possession, you may owe tax already due, or you may get a credit.  It is also possible to make monthly or other installment payments in most Alberta cities and towns, provided the appropriate paperwork has been filled in.

 Possession Day

 Can I get back into the house before the possession date for things like taking measurements, photos, etc.?

Technically, no.  There is no provision in the contract for you to re-enter the property until you take possession.  If you must re-enter, you can have your REALTOR® write this into your contract as a term of the offer.  My recommendation is that you take measurements, etc. before removing all conditions.  The closer to the possession date, the more chaotic your new home will look as the sellers pack to get out in time.

What time will possession happen?

According to the standard purchase contract, possession is to occur at noon but, given the complexity involved in the transfer of funds, this rarely happens.  I tell my clients not to expect to take possession before 2 PM.  You should keep in close contact with your lawyer’s office the day before possession to ensure everything will be completed on time.

What happens if something is broken when I take possession?

Section 4.2 of the Purchase Contract states:  “When the buyer obtains possession, the property will be in substantially the same condition as it was in when the Contract was accepted.”  If there is a problem, the first step is for the REALTORS® to work with their clients to find a mutually beneficial solution to resolve the issue.  If this is not possible, the problem escalates to the lawyers who will attempt the same thing.  If this doesn’t work, the buyer has the legal right to sue the seller.  Most times, the seller is reasonable and prepared to take responsibility for any problems found on the day of possession.  It should be expected that, if a seller has listed his property with a REALTOR®, the REALTOR® has educated his or her client about the responsibilities of a seller.  As a part of the services I provide to my clients, I give my sellers a checklist of items to have completed by possession day (“Moving Out Checklist“).

Does the house have to be clean when I take possession?

No.  There is no provision in the contract to force the sellers to ensure the house is cleaned before you move in.  You can expect that, on possession day, the house will be in much the same condition as when you viewed the property.  Everyone has a different definition of clean so you may want to spend the first day cleaning rather than unpacking!

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

My clients in Spruce Grove, Stony Plain, Parkland County and the Edmonton area have lots of questions, and I’m happy to answer them!  This article is Part 4 of a series that addresses the most common questions I get from buyers. 

Do I have to get a home inspection?

While not required by law, a home inspection is something I recommend.  A home inspector can perform an objective visual assessment of the property to identify future maintenance issues with key components of your property such as electrical, plumbing, heating and even potential water problems.  This is also a great way for buyers to learn what types of maintenance costs they can expect over the short term.

What is the cost of a home inspection?

Budget about $400 to $500 for the inspection of a standard property such as a townhouse, half-duplex or single family home.  Expect additional costs if the property has more than one dwelling (e.g. a single family home with a basement suite).

How do I arrange a home inspection?

You may find your own home inspector, or ask your REALTOR® for a list of reputable inspectors.

Can I be at the house while the home inspection is going on?

Absolutely!  I recommend that my clients be present for at least the last hour of the home inspection.  This gives you the opportunity to review the results of the inspection with the inspector and ask any questions.  Most home inspections take 2 to 3 hours to complete, and are usually scheduled for the morning or early afternoon.

When do I pay for the home inspection?

Payment is due immediately after the inspection.  Most home inspectors accept cash, cheque or credit card.

For more information on this topic within my website:

• Read my blog article “Should I Get a Home Inspected Before Purchasing It?” posted June,  2010.
• In my Sellers Guide:  How to Pass Your Home Inspection.

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

My clients in Spruce Grove, Stony Plain, Parkland County and the Edmonton area have lots of questions, and I’m happy to answer them!  This article is Part 3 of a series that addresses the most common questions I get from buyers.

How much do I offer?

This really depends.  Five factors to be considered include:

• what the current asking price of the property is and how well it is priced
• if there are other offers competing with your offer to purchase the property
• how important the property is to you
• whether the market is a buyer’s market or a seller’s market
• how long the property has been on the market

This is where the expertise and honesty of your REALTOR® comes in.  You must trust your REALTOR® and feel confident that he or she is providing reliable information.  As part of the services I provide to my clients, we assess the asking price based on comparable sold properties for the area.

Although every REALTOR® will have his or her own negotiating style, there are a few general concepts you should understand:

• An offer is a combination of these things: Price; Conditions (financing, inspection, etc.); Chattels (unattached goods); Possession date. This combination has value to both the buyer and the seller.
• There is no magical percentage for offers. For instance, not every offer should be 5 to 10% below the asking price. Some may be less and some may be more; it depends on how reasonable the asking price is.
• Not every seller HAS to sell his home. Some sellers will be more motivated than others. There are sellers who list their property just to see how much they can get for it, and they may not be willing to negotiate much lower than their asking price. There are other sellers who have to sell, and these may be more willing to negotiate the price.
• Be prepared to walk away. It is important to decide ahead of time the highest price you are willing to pay for the property, and then be prepared to say no to anything higher.
• Competing offers require a much different strategy. You will need the advice and experience of your REALTOR® to know how to handle this type of situation.

If my offer is too low, can my offer insult a seller?

In my opinion, yes, it can.  If your offer is too low, a seller may decide that he or she will not even counter your offer.  I do not recommend a low offer if you really want the property.  You do not want to push a seller’s insult button, because then you risk attaching emotion to the transaction.  If you insult a seller, you risk that person refusing to sell you the home at any price.  If you decide to drastically change your offer, the seller could interpret this as desperation and you could end up paying more for the property than if your offer had been more reasonable the first time.

What if I don’t find anything I like in my price range?  Should I look at houses over my price range in case there is a reduction in the price?

Normally, I suggest that it is reasonable to look at homes that are $5000 to $10,000 over your price range, but not more than this.  You will be very disappointed if you find a house that is more than you can afford, and the sellers will not budge on price!  For example, if you are approved up to $350,000, and you are looking at houses in the $365,000 price range, it could be that the houses at $365,000 have already had $30,000 in price reductions.  It could then be difficult to negotiate the price down to $350,000.  My suggestion to my clients is that we assess these properties on a case by case basis.

If I find a house I like, how do I make an offer?

This is where the expertise and experience of a REALTOR® is required.  You can expect to spend approximately one hour getting the paperwork together and signing the “Offer to Purchase”.  Once your offer is made, your REALTOR® will normally present your offer to the seller and the seller’s REALTOR®.  Negotiation typically begins here.  It is important that you are available by telephone or in person in the event a counter offer is made from your offer.  Once the offer is accepted by the seller, any changes to the contract must be initialed by all parties.  All offers must be accepted IN WRITING to be legally binding.

What happens after my offer has been accepted?

Assuming you have placed conditions on your offer, you will have timelines to fulfill these conditions before the property is sold.  The type of condition will determine what is required.  Remember:  conditions must be removed in writing prior to the expiry of the timelines, or you risk losing the property.  Here are some general conditions:

• Financing condition: Your mortgage broker or bank will need to have the information for your purchase immediately! As a service to my clients, I can fax a copy of the offer, along with a copy of the MLS® listing, to your mortgage broker or bank on your behalf.
• Home Inspection: A property inspection will need to be booked if a certified home inspector is going to be used. The buyer’s REALTOR® will attend the home inspection.

What are conditions in an offer?

Conditions allow for a set amount of time for the buyer to get things in order.  Conditions also ensure that the buyer’s deposit is protected.  If you cannot fulfill your conditions (for example, your bank will not provide you with financing), then your deposit will be returned to you.

What are some of the standard conditions?

• Financing Condition: This gives time for the buyer’s mortgage broker to confirm that the lender will provide funds for the purchase.
• Property Inspection Condition: This gives time for the buyers to have an inspector review the property.
• Condo Document Review Condition: This ensures the buyers receive the condo documents from the seller and gives time for the buyers to read through these documents and seek specialized advice if needed.
• Sale of a Buyer’s Home Condition: This allows the buyers time to sell their current property.

How much time do I get to deal with conditions and finalize the offer to purchase?

Typically, you will have 5 to 7 business days to get your finances in order (so make sure you are pre-approved with a lender BEFORE you write an offer!), have a property inspection completed, or review condo documents.

Is there more paperwork after I make the offer?

Usually there is.  If you placed conditions on your offer, you will have to remove those conditions once you have fulfilled them by signing a “Condition Removal” form.  If you have a variety of condition dates, then you may have to sign several condition removals.  Amendments to the contract may be needed as well, such as a change to the possession date agreed upon by the seller and the buyer.

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

My clients in Spruce Grove, Stony Plain, Parkland County and the Edmonton area have lots of questions, and I’m happy to answer them!  This article is Part 2 of a series that addresses the most common questions I get from buyers. 

How much of a deposit do I have to give when I make an offer?

This depends on the type of property you are purchasing and how you are purchasing it.  For instance, if you are purchasing a property between $200,000 and $300,000, I recommend a deposit of $3000 to $5000.  The larger the purchase price of the property, the more the deposit should be.  For purchases over $400,000, I would recommend a minimum deposit of $5000.  The deposit may also be an item that the seller wants to negotiate.  The seller may expect a larger deposit to ensure your commitment to the purchase.

When is the deposit payable?

The deposit is submitted with any offer and payable immediately after your offer is accepted by both parties.  The deposit is given to the real estate company that has listed the property and is placed in a trust account until you take possession.  The deposit forms part of your total down payment.

Can I lose my deposit?

Generally speaking, the only time you can lose your deposit is if you remove conditions on your offer and do not take possession of the property as agreed in your contract.  BUT:  you should discuss this with your REALTOR®.  If you cannot fulfill the conditions in the contract (for example, you are not approved for financing), your deposit will be returned to you, provided your financial institution will supply upon request a letter to the sellers and their REALTOR®, stating you are not approved for financing.

When is my down payment due?

Your total down payment (usually by certified cheque or bank draft) is not due until you see the lawyer to sign all of the paperwork.  This typically happens a week or two before possession day.  The only money that is payable when you write the offer is the deposit.  This deposit becomes part of the total down payment.  Your lawyer will advise you of the total amount to bring with you when you sign the papers; this amount usually includes lawyer fees and disbursements.

How much money will I need for other costs besides my down payment if I purchase a property?

At minimum, I recommend that you budget $3000 to $5000 for basic items such as:

• lawyer fees and disbursements which will cost between $1000 to $1500. (Disbursements are recoverable expenses the lawyer pays on your behalf.)
• property tax adjustments (cost will be a proportion of the annual taxes, depending on when in the year you take possession)
• home inspection (about $400-$500)
• title insurance (about $250), if required.

There could be other costs associated with your purchase depending on your situation.  The costs listed above are general expenses that most buyers will incur.

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

My clients in Spruce Grove, Stony Plain, Parkland County and the Edmonton area have lots of questions, and I’m happy to answer them!  This article is Part 1 of a series that addresses the most common questions I get from home buyers.

How do REALTORS® get paid?

REALTORS® work on commission, a percentage of the selling price of a property.  This commission is specified in the Listing Contract signed by the seller and the REALTOR® who lists the property.  When a property is sold, the REALTOR® who listed the property for the seller shares the commission with the REALTOR® who sells the property to the buyer.  The buyer is usually not required to pay a commission directly (unless the buyer is under contract; ask your REALTOR® if you are not sure).

When should I start actually looking at homes with a REALTOR®?

As soon as you are pre-approved by your bank or a mortgage broker, you can begin looking at homes.  I would not recommend looking at homes prior to getting pre-approved because you may find something you fall in love with and then find out you do not qualify to purchase it! 

Do I have to call the REALTOR® who has the house listed to view the house?

No.  In Alberta, any REALTOR® can show you any house that is listed on MLS®.  If you have chosen to work with a REALTOR®, your REALTOR® would prefer to show you the property rather than you calling the REALTOR® who listed the home.  Remember, REALTORS® are paid based on a commission so if you are working with multiple REALTORS®, the only REALTOR® who may get paid is the one who writes the offer with you.  If you are looking for a REALTOR®’s full attention, you need to show you can be loyal. 

How do I choose a REALTOR® to work with?

Choosing a REALTOR® can be a difficult task.  REALTORs®, like people in any profession, are not all created equal!  Here are a few tips for picking a REALTOR®:

• Think about what you are looking for in a REALTOR®. Personality is a large part of this profession so think about what type of personality you are compatible with.
• Ask friends or family if they can recommend a REALTOR® to you. If not, start searching on the Internet or in the newspaper.
• Look through websites and see if there are testimonials posted. Do the testimonials give you an indication of the type of personality the REALTOR® has, and is this a fit for you?
• Interview more than one REALTOR® to get a feel for what different people have to offer.
• Find out if the REALTOR® is part-time or full-time and how often you will be able to get in touch with him or her.
• Find out what types of technology the REALTOR® uses: Internet, email, text messaging, social media, etc.
• Send an email to the REALTOR® and see how long it takes for that person to respond. This could be an indication of how attentive the REALTOR® will be to you.
• Ask how many clients the REALTOR® works with at one time. More can be less in this business. Do you feel the REALTOR® will have enough time for you?
• You want a REALTOR® who is client focused. That is, YOU need to be more important than the commission the REALTOR® will earn. The REALTOR® will earn his or her commission after all your needs have been met.

If you don’t see your question here, it might be answered in the Buyers Guide section of my website.  Or, feel free to contact me any time 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.

Standard homes in the Spruce Grove, Stony Plain, Parkland County and Edmonton region are not the only real estate I deal with!  Here are a few of the inhabitants of my salt water reef aquarium.

The deep blue fish on the left is known as the Achilles Tang Hybrid, a rare and special fish.  “It is a quark [sic] of nature where an Achilles Tang and a Goldrim Tang have merged together during conception. It is one of the few reef fishes in Hawaiian waters known to hybridize.”   (from the website SaltAquarium.about.com).   The long nosed fish on the right is a Copperband Butterfly fish.  I bought this fish because it has a highly specialized diet; it loves eating an aquarium pest known as Aiptaisa Anemones.  These pesky sea anemones are known to take over a saltwater aquarium.  The problem with Copperbands is that once they have eaten all the Aiptaisa, they will sometimes starve to death because they are such finicky eaters.  I have managed to get my Copperband to eat frozen brine shrimp (which I feed to all my fish).  Occasionally I find a rock with Aiptaisa growing on it in my quarantine tank.  Once I move the rock to my main tank, my Copperband will hunt down all the Aiptaisa and make a meal of it in very short order.

This is a photo of my starfish.  It is currently wrapped around my blasto coral from Australia.  It always amazes me how gentle this creature is.  It never damages or knocks over any of the corals.  My wife Paulette calls him Gumby.

These are some of my favorite corals, the Australian Acans.  These corals are fully extended out with their feeder tentacles exposed.  This is the sign of a happy and healthy Acan.

This is a photo of my main tank which I started in the fall of 2008.  It is now fully matured (this can take 6 plus months).  The photo shows most of the fish in my tank, along with my black and white clown fish.  Just below them is a living giant clam, which my clown fish have decided to “host”.  Clown fish, also known as anemonefish, usually host an anemone in the wild.  I can only describe this as a love affair between these two creatures.  Because having a poisonous anemone can be extremely detrimental to a reef tank, I choose not to have one.  So my clown fish have taken to hosting my giant clam, claiming it and defending it as their territory.  They are never very far away from this clam.  They nudge it in the morning to wake it up, sleep on it at night and do not like anything coming close to their clam, including my hand when I try to clean the inside glass.

Another picture from my main tank.  Pretty much everything you can see in this aquarium is alive:  the corals and fish, of course, but there is even life in the sand and rocks.  The rock, referred to as “live rock”, serves many purposes, and is probably the most popular material used for natural biological filtration in saltwater aquariums.  What surprises most people is how alive the corals are.  They expand and contract, react to touch, light and food.  What people may not know is that many corals are carnivorous, and many have long stinging tentacles used to protect their territory.  The winner of any coral conflict is usually determined by which coral produces the strongest poison.  Fortunately for us, human skin is too thick for most corals to penetrate. Although there is a lot going on in a reef aquarium during the day, plenty of interesting things happen after the lights are turned out at night.  A flashlight will expose the many night creatures and add a whole new dimension to a reef system.

Are you looking for a special kind of real estate?  I’d love to help you find your dream home.  Phone me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Wherever we live, Spruce Grove, Stony Plain, Parkland County or elsewhere, most of us have things we collect or activities we like to do in our leisure time.  These collections and activities often spill over into our homes, even if they are usually done elsewhere.  Without proper planning, this can sometimes be disastrous.  Think, for example, of current popular television programs on hoarding and decluttering.

If you have any sort of hobby, and you are in the market for a new home, it’s a good idea to give some thought about how that hobby will fit into the physical confines of the houses you look at, and what modifications you might have to make to a house in order to accommodate your hobby.

Let’s say you enjoy hiking and camping, or similar sports or activities that you normally practice away from home.  Where and how are you going to store the gear needed for these activities?

Maybe you are a serious collector of… well, almost anything!  Books, coins, model cars, sports memorabilia, dolls, antique furniture, teapots, clocks, insects….   More than three objects in any of these categories could rightly be called a collection.  The question for your home is where and how are you going to store and display your collection?

Or, maybe your hobby is some activity or craft you do, which may or may not result in a physical endproduct.  Some hobbies are fairly easy to fit into everyday life.  Gourmet cooking?  Your kitchen may be a little better equipped than the average but usually no major changes need to be made.  Enjoy reading, doing crossword puzzles, blogging, or watching vintage movies?  Again, easy to do at home without disrupting daily life.  Scrapbooking or sewing?  A table and a few storage containers in the corner of a guest bedroom will often be enough.

But suppose your hobby requires

• a great deal of space (think model trains or weaving or woodworking or restoring old vehicles)
• the use of toxic chemicals (oil painting or furniture refinishing)
• structural changes to your home (pottery making with a home kiln, perhaps, where special wiring might be needed, or collecting wine, where special lighting and temperature controls may be required)

Can hobbies of this type be accommodated in your home?  Yes, with a little forethought and planning.  A good rule to follow is to do what you must but always keep the end in mind.  That is, consider what you will need to do to return your home to its original condition should you give up the hobby or when it is time to sell your home.

I recently developed the basement of our Spruce Grove home.  I thought this would be a good opportunity to incorporate a salt water aquarium into our home.  There is just something about the choice of fish and corals and all the colours available in a salt water reef system.  A fragile system that does not forgive neglect or ignorance, it has very specific needs that include water temperature, lighting, chemical control (e.g. calcium, PH balance, ammonia, nitrates, magnesium, etc.), water flow, salinity, and more.  There can be costly lessons during the learning curve.  But if one is passionate about a hobby, the work and expense are eventually well worth it.

I brought in someone who is an expert in salt water systems and had him advise me on what was needed.  He suggested we add two dedicated electrical circuits to accommodate all the equipment, and a sink with hot and cold running water.  We built the tank into the wall so that it can be viewed from the family room.  All the equipment is located behind the main tank in an oversized closet just off the exercise room.  The system was installed so that it could easily be converted back to what the average home buyer would expect to find.  All that we need to do is remove the equipment, frame the opening where the display tank is, mount and finish some drywall, and no one would ever know there ever was an aquarium there. Except for maybe plumbing in the wall and a humidistat hooked up to an exhaust fan.

 It is worth remembering that when you modify your home to accommodate your hobby or business, you may have to remove all evidence of it ever having been there as it may be viewed as a deterrent or expense to prospective buyers.   

For most people, hobbies and interests are a special but integral part of their lives and need to be considered when shopping for a new home.

Comments or questions about this article or about Spruce Grove Real Estate?  Email me at btwynam@telusplanet.net, phone me at 780-910-9669, or contact me here.

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.

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.