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.

1. Location

Real estate’s number one criterion really plays out in Stony Plain.  Located within Parkland County 8 km west of Spruce Grove and 17 km west of Edmonton, Stony Plain has easy access to all the amenities of both cities.  The town retains its rural roots while offering modern transportation options via Highways 16, 16A and 43, as well as rail and bus links.  Travel times:  roughly ½ hour east to Edmonton (great for commuters), an hour to the Edmonton International Airport, 3 hours west to Jasper, 3½ hours south to Calgary, 4 hours north to Grande Prairie.  Take a look at Stony Plain’s official website.

2. Lifestyle

Quiet small town atmosphere, 14,000 friendly residents, safe and secure streets, along with every convenience of modern life.

3. Neighborhoods

Many towns claim to cater to every taste and budget but Stony Plain truly does have something for everyone:  condos and low-rise apartment buildings in Downtown Stony Plain, mobile and modular homes in Meridian Meadows, all the way up to luxury homes on acreage properties within town limits in Country Plains Estates.

4. 100+ Years of History

AlbertaFirst.com (a website that has regrettably been discontinued) had this to say:  “The Town has a pride in its history which began in 1881 when the first homestead in the area was documented. In 1892 the area was known as Dog Rump Creek until a post office was named for the region and it became Stony Plain. In 1907, Stony Plain’s first Sheriff, Israel Umbach, made national headlines when he chained a locomotive to the railway tracks for non-payment of taxes and changed the course of history. In 1908 Stony Plain was officially incorporated as a town. Stony Plain’s history is kept alive through its murals program, numerous historic sites, and the Multicultural Heritage Centre.”   Interested in learning more about the rich history and interesting tales of this area?  Check out Along the Fifth: A History of Stony Plain and District.

5. Unique Downtown Character and Hospitality

Twenty-six larger-than-life outdoor murals, historic buildings such as the Stony Plain Hotel which dates from 1906, quaint shops, and one-of-a-kind restaurants make it a treat to stroll through the downtown core of “The Town with the Painted Past”.

6. Multicultural Heritage Centre

So much to explore!   Housed in two buildings, the Old Brick School built in 1925 and the Oppertshauser House which dates from 1910, the Multicultural Heritage Centre with its beautiful landscaped grounds and gardens features displays and exhibits of local history and pioneer life, a gift shop and art gallery, Wild Rose Library and archives, and the much-loved Homesteader’s Kitchen restaurant, famous among locals for its fresh pies!  Also worth a visit is Stony Plain’s Pioneer Museum (5120 – 43 Ave) which hosts the Pioneer Harvest and Old Time Threshing Bee in September.

7. Festivals

Summer festivals reflect Stony Plain’s strong rural traditions.  Late May/early June features Farmers’ Days and Kinsmen Rodeo, complete with parade, midway, carnival games, arm wrestling competition and more old-fashioned fun.  The Blueberry Bluegrass and Country Music Festival, attracting well-known names and world-class performers, takes place each July (celebrating 25 years in 2010), followed in August by the Cowboy Poetry Gathering.

8. Farmers’ Markets

Fresh fruits and vegetables, homemade goodies, and handmade craft items are in abundance every Saturday morning 9 AM to 1 PM from mid-spring to early winter at the Stony Plain Farmers Market at the Stony Plain Community Centre (5008 – 51 Avenue) and at the Heritage Farmers’ Market (located at the Multicultural Heritage Centre).

9. Recreation

Everything you can imagine!  Sports of all kinds for all ages (soccer, hockey, baseball, basketball, golf, curling, skating, skiing, martial arts, BMX, you name it!), gymnastics, dancing, clubs of every description, and much more.  For specific details visit the Community Connections section of my website  and scroll down to Sports and Recreation.  But there’s more.  Stony Plain also has an extensive parks and trail system running through town, and is just a few minutes away from the TransAlta Tri Leisure Centre  with its spectacular sports facilities and the Chickakoo Lake Recreation Area in Parkland County, as well as numerous other lakes and campgrounds.

What a great place to live, wouldn’t you agree?  Contact me now for your Stony Plain Real Estate needs.

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.

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.

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.