Summer in the Spruce Grove, Stony Plain, Parkland County or Edmonton areas of Alberta is a great time to tackle projects to refresh your home or acreage.  Painting is one of the best things you can do because it adds value to your home without costing much money and is relatively easy to do.  This is especially important if you are looking to sell your home.   A fresh coat of paint is one of the few renovations where you have a chance to recover all of your investment.

If you’re a beginner, where do you start?  With so many brands, types and colors of paint to choose from, and so many books, articles and internet sites giving all kinds of advice, it’s easy to feel overwhelmed.

An article that’s been sitting in my clipping file for awhile now is one of the best I’ve seen for a quick introduction to the mysteries of painting a room.  “How to paint like a pro” was published in the March 13, 2010 edition of the Edmonton Journal.  If you are a novice painter, I advise you to study every word of this article before you ever start thinking about finishes and colors!    

Then you may want to learn a little more about painting:

• One way is to check out the self-help section in a quality paint store or a large hardware store like the Home Depot.  Don’t be shy about asking the people working in these places for advice.
• A Google search on “How to paint a room” turned up a number of YouTube videos.
• Some other practical websites:

Bob Vila: How to Paint a Room

How to do IT: Painting a Room!

How to Paint a Room [from the About.com series of websites]

How to Paint a Room Like a Pro – Fine Homebuilding [series of videos]

Painting & Wallpapering – for Dummies [many articles from estimating how much paint to buy, to the proper use of a paint roller, and much more]

TLC Home “How to Paint a Room: Tips and Guidelines”

• The best way to learn to paint?  Just get in there and do it!

Comments or questions about this article, or any aspect of home buying and selling?  Call me at 780-910-9669, email me at barry@barryt.ca, or contact me here. 

You’ve sold your house or acreage in Parkland County, Stony Plain, Spruce Grove or the Edmonton area, and you’re moving out.  What should you do for your home’s new owners?

•   “Unattached goods” or chattels:  Your purchase contract may specify some of the things that you are leaving behind such as kitchen and laundry appliances, window coverings and the like.  As a bare minimum, make sure that these items are in place, clean, and in good working order.
• Cleaning:  Your home should look much the same as it did during showings.  While you are under no legal obligation to leave your home spotless, it’s just a nice thing to do, if you can.  A good rule of thumb is to leave your home as clean as you’d like to find it!  If it’s not possible to give it the “mother-in-law white glove” test by washing windows, walls and light fixtures, steam-cleaning carpets and the like, at the very least do the following:
  • Thoroughly clean kitchen, bathrooms and laundry room (all fixtures, appliances, etc.)
  • Vacuum all carpets
  • Wash bare floors
  • Wipe out all cupboards
  • Tidy the yard, garage and shed
  • Get rid of all garbage
• Keys:  Collect and label all keys – extra house keys, garage, shed, mailbox (leave info about mailbox number), etc.  Keys should be left in a conspicuous location but not one that is visible by someone looking through a window from the outside.
• Garage door openers + codes
• Security system info + codes
• Instruction books, warranties, repair records for things like appliances, furnace, water heater, etc.
• Info about upgrades:  For example, if you installed a new roof, leave a note about when, what materials were used, who installed it, the cost, etc.
• Re-painting:  If any recent re-painting was done, leave leftover paint with info about brand, color name, etc.
• Utility info:  Leave information about providers (water, power, gas, internet, etc. with contact info), approximate monthly costs (copies of bills would be great), garbage pickup (what days, where, any special instructions, etc.)
• Utilities disconnect or transfer:  Have meters read.  Depending on the arrangement with the new owners, water and power may be turned off, furnace and hot water heater turned down, etc.  Your REALTOR® can help!
• “Welcome to your new home”:  It’s a nice touch, if you are so inclined, to leave a card or personal note for the new owners.   A recent copy of the local newspaper might  also be appreciated.
• Acreage owners:  Leave behind results of latest well water tests, well drillers’ report, upgrades to well and septic pump/system and the like
• Make sure all windows and doors are locked before you leave.

I am always willing to answer any home-related questions you might have!  Phone me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Buying or selling your Parkland County acreage or your Spruce Grove, Stony Plain, or Edmonton area home is likely to be the biggest financial transaction of your life.  Many different professionals may be involved, and it can be confusing to you, the client, as to what the roles of all these people are and how they can be helpful to you.

A short but very useful and informative video on YouTube entitled “The People to Know in a Real Estate Transaction” explains such things as:

• the difference between a listing agent and a selling agent (and to whom they owe loyalty);
• the difference between a mortgage broker and a mortgage banker;
• what things a home inspector looks for, and how the role of a home inspector differs from that of a home appraiser;
• why it pays to use a real estate attorney to complete your sale (required in Alberta when REALTORS® are involved).

Although the video is aimed at an American audience, the information is still mostly applicable to our situation in Alberta.

Need more information?  I’ll do what I can to find the answers to any of your questions.  Call me at 780-910-9669, email me barry@barryt.ca, or contact me here.

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

Buyers’ Circumstances:

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

Sellers’ Circumstances:

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

Circumstances Involving Other Parties:

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

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

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

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

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

Why should I list with a Realtor®?

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

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

What is a listing agreement?

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

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

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

How much should I ask for my house?

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

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

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

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

What happens when I receive an offer?

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

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

Do I need a lawyer to complete my transaction?

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

When do I sign the papers with the lawyer?

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

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

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

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

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

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

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

 Recycle:

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

Donate:

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

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

Sell:

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

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

What Other People Have to Say About the Subject:

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

Where to Donate All Your Unwanted Stuff – The Good Human

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

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

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

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

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

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

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

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

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

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

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

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

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

De-cluttering Websites:

15 Great Decluttering Tips

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

Declutter, declutter, declutter!

Declutter Forever: Home Organize It!

Decluttering for Home and Head

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

Green Interior Decluttering Process

Living Gently Quarterly: Spring Decluttering

Pitch, pile or file?

The Super Easy Approach to Decluttering Your Home

Tips for Decluttering Your Home When Downsizing

Why Declutter? 

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

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

What is home staging?

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

Secrets of home staging

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 There are many good reasons to downsize:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Frank C. DeAngelis, Barrister & Solicitor