BARBARA GRUMME’S BLOG!

Mistake #1. - Placing the wrong price on your property

Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is  to list your product at an excessively high price. A high listing price will cause some prospective buyers to lose interest before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer.

Mistake #2 - Mistaking Re-finance Appraisals for the market value

Unfortunately, a re-finance appraisal may have been slated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The market value of your home could actually be lower. Your best bet is to ask your Realtor for the most recent information regarding property sales in your community.

Mistake #3- Failing to “Showcase”

In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, do not forget OT make your home look as pleasant as possible. Make necessary repairs. Make sure everything functions and looks presentable.

Mistake #4- Trying to “Hard Sell” while showing

Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don’t try haggling or forcefully selling. Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions.

Mistake #5- Trying to Sell to Lookers

A prospective buyer who shows interest because of a ”for sale”  sign he saw may not really be interested in your property. Often buyers who do not come through a Realtor are a good 6-9 months away from buying, and they are more interested in seeing what is out there than actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet.

Your Realtor should be able ti distinguish realistic potential buyers from mere lookers. Realtors should usually find out a prospective buyers savings, credit rating, and purchasing power in general.

Mistake #6- Being ignorant of your rights and responsibilities.

It is extremely important that you are well informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what your re responsible for before signing the contract

Mistake # 7 - Choosing the Wrong Realtor

Selling your home could be the most important financial transaction in your lifetime. As a result, it is extremely important that you select the Realtor that is best for you. Experienced real estate agents often cost as much as a brand new agent. Chances are that the experienced agent will be able to bring you a higher price in less time and with fewer hassles.

Take your time when selecting a real estate agent. Interview several agents; ask them key questions. If you want to make your selling experience the best it can be, it is crucial that you select the best agent for you

1. Before closing, contact insurance agent to arrange homeowners insurance coverage to become effective day of closing. Your insurance agent can give you a “binder” letter certifying coverage is in place. It may be a good idea to make your Offer to Purchase conditional on yo being satisfied with obtaining homeowners insurance and the cost.

2.  Note that most lawyers won’t be doing manu of the tasks they need to do for closing until all conditions, usually through your Realtor, are removed from teh agreement.

3.  After conditions are met, your lawyer will begin searching title to the property. This involves going back through government records to ensure a clear title that is transferable.. Electronic registration and title insurance have changed the way titles on properties are transferred.

4.  Your lawyer will ask how you (and others involved in the purchased) want to be registered on title.

5.  Your lawyer will arrange for a survey if one does not exist. This is also a lender requirement. Often title insurance will be acceptable to a lender. It’s also less expensive.

6.  Most lenders will have your lawyer draw up the mortgage documents. Your lawyer will act on their behalf as well, saving you money.

7.  Your lawyer will contact the seller’s lawyer with any questions or issues regarding title and costs.

8.  Your lawyer will check with local utilities (hydro, gas, water) to ensure there are no outstanding claims.

9.  You should contact the utilities and telephone and cable companies well in advance to arrange fro services in your name.

10.  Your Realtor will arrange for a final walk through of the home before closing.  The Realtor should have made sure that this right is exists in the offer.

11.  Your lawyer is also making sure that property taxes are up-to-date, local zoning and building restrictions have been met and there are no liens on personal property, such as appliances being purchased with the house.

12.  The lawyer will review the draft deed, statement of adjustments and other closing information provided by the seller’s lawyer, and will deal with any problems as they arise.

13.  A day or two before closing, you’ll meet with your lawyer to go over and sign the closing documents.

14.  Bring a certified cheque to cover closing costs. You’ll be informed of the amount in advance.

After the lawyers exchange keys and cheques and then register the deed and mortgage, you’re given the keys to your new home. Time to celebrate.

1) The majority of Canadian mortgages are insured–not the case in the U.S.

2) First time buyers in Canada are subject to the same credit criteria as any other buyer. They are not given preferential treatment, as has been the case in the U.S.

3) The default rate on mortgages, as of September, stands at about .29% in Canada compared to 25% or more in the U.S.

4) Buyers in Canada generally live in the home they buy. Unlike the U.S., there is little evidence of speculation buying in Canada.
(Source: Canadian Real Estate Assoc. President, Cal Lindberg)

5) Canada’s latest unemployment figure weighs in at about 6.3% (Stats Canada) compared to 6.7% (U.S. Bureau of Labor Statistics). Conversely, Canada’s employment rate is 93.7%.

Predictions:

Highs & Lows: Since the mid 1970’s, Canada reached its highest levels of unemployment in 1983 at 12% and 1993 at 11.4%. Canada recorded its lowest unemployment rate in 2007 at 6% (Human Resources and Social Development Canada). We are only at .3% higher than in 2007.

6) The International Monetary Fund forecasts Canada’s economy will grow by 1.1% in 2009. The U.S. economy is “expected to shrink 0.5 per cent next year, according to the World Bank’s latest forecast” (Philip Demont, CBC News).

7) Bank of Canada Governor, Mark Carney, on December 17, 2008, predicted a modest recovery “at the back end of 2009 and then strengthening in 2010” for Canada.

Canada’s debt service ratio is below historical averages and cost of household debt has fallen since last year. (Mark Carney)

MLS Niagara Region Listing and Sales Statistics to December 31, 2008:     

·          The number of listings for 2008…14,866 compared to 14,119 for 2007: up 5%.

·          The number of Sales for 2008…6,271 compared to 7068 in 2007—down 11%.

·          The Total Sales Dollar Volume of $1,322,474,187down 10% from 2007.

·          The number of expired Listings was 5956 compared to 5,228 2007—up 14%.

·          Average Sale Price YTD for Niagara Region:
$210,924 vs. $$208,671in 2007–up 1.08%.