Monday 24 October 2011

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: What’s selling and what’s not?

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: What’s selling and what’s not?: What’s selling and what’s not? In today’s challenging real estate market, people are full of questions about the real estate market. As y...

What’s selling and what’s not?

What’s selling and what’s not?

In today’s challenging real estate market, people are full of questions about the real estate market.  As your local Realtor® will tell you, one of the first questions most consumers ask is What’s selling these days?’  

If you’re thinking of selling, you’ll be pleased to know that homes are selling when they’re well-prepared for sale and priced right.  The reason is because people buy and sell homes for lifestyle reasons.  Births, marriages, new jobs, retirement and other demographic factors all drive the market, even in times of economic downturn.  However, in today’s increasingly competitive market, you need the advice of a full-service professional, who knows market conditions and a home’s competition and can use this critical information in readying your home for sale.

In today’s market, successful sellers are those who have become more realistic in setting their asking price.  They understand that a home isn’t a winning lottery ticket; it’s a place to raise a family and build equity over time.  Your local Realtor® can give you the straight facts on what comparable homes are selling for right now in your market.  They can show you actual sales activity so you know what prices the market will bear.  They can also talk to you about time on market, and let you see for yourself what’s not moving.  They can also answer the all-important question of why it’s not moving.

Make no mistake, prospective buyers are out there. They’re recognizing that there is tremendous value in today’s market as lowered mortgage rates and adjusting prices have resulted in some of the best home affordability we’ve seen in many years. It’s just a matter of knowing how to create a pricing and marketing strategy that will maximize your chances to attract buyers and win offers.

If you’re thinking of selling, why not talk to your local Realtor®.  Together, you can develop a strategy to get you a great result.  Then the next time someone asks what’s selling in your neighbourhood, the answer will be – your house!

Tuesday 18 October 2011

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Let real estate help with college expenses

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Let real estate help with college expenses: Let real estate help with college expenses Many Canadian parents who have a son or daughter going away to college this fall, are already th...

Let real estate help with college expenses

Let real estate help with college expenses

Many Canadian parents who have a son or daughter going away to college this fall, are already thinking about all the expenses this will involve.  While there may not be much that most parents can do about the high cost of tuition, books or travel, there’s one major college expense that you may be able to turn to your advantage.  Rather than paying rent at a student residence for three or four years, you could buy a rental property and turn that expense into a source of income.  If you buy a property near the campus, you could rent rooms to other students and your child could potentially live there rent free.  With financing rates at near historic lows, it’s a great time to invest in real estate.  If you buy smart, you may be able to recover all or most of the cost of your child’s college housing expense.  You might even be able to generate enough positive revenue to offset some of the other expenses of a college education.  Best of all, if house prices continue their upward climb, in just a few years you could potentially realize a profit on the equity you have built up in the property. 

Whether your real estate needs are nearby or in another community, you can start the process right there at home.  Your Realtor® real estate professional can counsel you on what to look for and what to avoid.  I have  several unique research resources to help you in your search, including the Home Price Comparison analysis I can complete.  Through my connections in the financial sector, I can even help you pre-qualify for a mortgage, so you’ll know in advance exactly how much house you can afford.  And when you’re ready to start looking, they can personally show you properties near at hand, or if you’re looking for a property out of town, they can put you in touch with an experienced real estate professional who’ll show you suitable properties in your target area.

Why not take advantage of the opportunities that are available in today’s market and use it to help offset the high cost of a college education?  If you’d like to talk about your options, your local Realtor® is just a phone call away.  It could be the most important call you’ll ever make!   

Saturday 15 October 2011

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Canadian real estate forecasts upgraded

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Canadian real estate forecasts upgraded: Canadian real estate forecasts upgraded Canada ’s real estate market continues to make a strong showing. Recently, industry forecasts fo...

Canadian real estate forecasts upgraded

Canadian real estate forecasts upgraded


Canada’s real estate market continues to make a strong showing.  Recently, industry forecasts for the national housing market were slightly upgraded.  On August 16, The Canadian Real Estate Association (CREA) revised its forecasts upward for 2011 and 2012.  National sales activity is forecast to reach 450,800 units in 2011, edging just slightly higher than the sales levels 2010.  Sales in 2012 are forecast to stay at similar levels, easing just seven tenths of a percentage point to 447,700 units next year.

According to CREA, additional new listings are expected to result in a more balanced resale housing market in most provinces.  The national average home price in Canada is forecast to rise 7.2 per cent overall in 2011 to $363,500.  However, prices are expected to moderate in the second half of this year.  The national average is forecast to stabilize in 2012, although at a slightly higher level than previously expected.

Of course, that’s just an overview of the national scene.  It’s important to remember that real estate is, and always will be, a local business.  Prices can vary dramatically within a community.  Even from street to street.  That’s why it’s so important to talk to your local Realtor® real estate professional, to help you understand the market and make smart decisions. 

Thursday 13 October 2011

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Canadians believe buying a home is a good investme...

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Canadians believe buying a home is a good investme...: Canadians believe buying a home is a good investment On September 7, 2011 , the Bank of Canada again held interest rates at near-historic l...

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Canadians believe buying a home is a good investme...

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Canadians believe buying a home is a good investme...: Canadians believe buying a home is a good investment On September 7, 2011 , the Bank of Canada again held interest rates at near-historic l...

Canadians believe buying a home is a good investment

Canadians believe buying a home is a good investment

On September 7, 2011, the Bank of Canada again held interest rates at near-historic lows, maintaining the overnight rate at 1%. The ready availability of affordable financing continues to attract home buyers, including new buyers who are entering the market for the very first time. 

It’s really not all that surprising that Canada’s housing market is going strong.  The demand is there.  Canadians firmly believe that buying a home is a good investment.  According to the CMHC (Canadian Mortgage and Housing Corporation) 2011 Consumer Survey, the vast majority of recent homebuyers (a whopping 86%) agree that homeownership is a good long-term investment.  This view was shared by respondents in all regions of Canada.

With interest rates still at near-historic lows, for many people this is a good time to buy a home, especially if you have the financial viability and a lifestyle need to move.  However, real estate should be seen as a long term investment that adds to the quality of life for you and your family.  It’s not a get-rich-quick scheme or a winning lottery ticket.  Prices are forecast to moderate and stabilize through 2012, so those looking for a fast return from a ‘quick flip’ could be disappointed.

Some of the area major banks have raised rates or are warning about raising rates and several Lender's are offering to hold rates at current levels for months if applications are in before rate hikes.  Get pre-approved.  I have a list of great Lender's ready to help.

Even looking long term, investing in real estate is not for everyone.  That’s why it’s important to get some expert advice from your local Realtor®.

Tuesday 11 October 2011

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: What’s worth renovating?

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: What’s worth renovating?: What’s worth renovating? One of the questions most frequently asked by homeowners considering a renovation is “What’s worth doing?” Wel...

What’s worth renovating?

What’s worth renovating?


One of the questions most frequently asked by homeowners considering a renovation is  “What’s worth doing?”  Well, the answer isn’t a simple one, because it all depends on what you want to get out of it.  Is your purpose primarily to improve your property value, or increase your enjoyment of your home, or a combination of the two?

If you’re thinking primarily of increasing your home’s resale value, you should be aware that the cost of professional improvements to a home will very often not be recovered in a corresponding increase in your property’s value.  A home’s list price is essentially a reflection of the demand from buyers for a home’s features and location.  Just because you’ve invested a certain amount of money in your home renovation doesn’t necessarily translate into adding that same figure onto your potential resale price.  However, if you’re doing some of the work yourself, there’s a far better chance that you can recoup the costs of your improvement.

Generally, the areas to focus on in terms of increasing your resale value are the kitchen and bathrooms, since these are the critical areas that frequently are deciding factors in buying a home.  However, even in these areas, make sure your improvements are limited to what’s clearly visible in a quick walk-through.  New cabinets, counters, or fixtures will all win points, but upgraded plumbing is an expensive undertaking that will add little to the overall appeal of your home.  Prospective buyers will expect reliable plumbing as a “given”, and will not be willing to pay a premium to get it.   Why not get some expert advice in this area from your Realtor®?  Even if you’re not planning on selling just yet, your Realtor® would be happy to talk to you to confirm what features are in demand by buyers in your area, and to counsel you on where you can concentrate your resources to get a good return.

If you’re planning on a renovation primarily to enhance your family’s enjoyment of your current home, you’ve never picked a better time to do it.  The cost of financing a renovation is very affordable, with interest rates at a forty-year low.  Basically, you can focus on what would please your family, but do keep in mind that you will eventually still want to sell that home, and some improvements can actually reduce your chances of future resale.  If it’s a toss-up between a couple of potential renovations, you should lean towards the one that will be the most appealing to the maximum number of buyers in the future.  For example, a home theatre or media room is a current trend that would be enjoyed by just about anyone.  On the other hand, a swimming pool can be costly to heat and time-consuming to maintain, so many buyers would not want to even consider a home with a pool.  Again, why not have a chat with your Realtor®?  They’ll be happy to give you the benefit of their experience, and help you decide what’s worth renovating in your home. 

Thursday 6 October 2011

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: How Much Home Can You Afford? (Closing and Moving ...

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: How Much Home Can You Afford? (Closing and Moving ...: How Much Home Can You Afford? Part Two – Closing Costs and Moving Expenses After you’ve estimated your mortgage payment and other ongoing c...

How Much Home Can You Afford? (Closing and Moving Costs)

How Much Home Can You Afford?


Part Two – Closing Costs and Moving Expenses

After you’ve estimated your mortgage payment and other ongoing costs for carrying your first home, you’ll also need to consider the one-time expenses associated with the purchase of a property.  This includes your closing costs, as well as your moving expenses.

Be aware that there is no set rule for what’s included in closing costs, or how they’re calculated.  Closing costs can vary significantly from property to property, but may include home inspection fees, appraisal fees, title search, survey costs, home insurance and lawyer’s fees.  Some of these costs may be shared with the seller, while others are payable by the buyer only.  Your Realtor® can give you helpful advice about specifying a cost-sharing agreement for some of these related costs within your offer to purchase.

You will also be required to reimburse the seller for a proportionate share of specific housing expenses that have been pre-paid by the seller and continue after your closing date.  These pre-paid expenses usually include property taxes and utilities, and the amount is typically equivalent to only a few months service.  Your real estate lawyer will give you an exact accounting of these expenses upon closing, so be sure to discuss this with your lawyer in advance, so you will have sufficient funds available to cover these costs at that time.  After these one-time adjustments are made, and the transfer of ownership is completed, you will pay for such expenses directly in future.

In addition, you’ll also have to budget for your relocation costs.  This could include such costs as a moving company truck and labor, packing charges, boxes and wrapping materials, or rental of a vehicle or trailer if you’re doing all or part of the move on your own.  There can be a wide variation of costs for these types of services, so you should start planning well in advance, and obtain comparative quotes from more than one mover.  Get the quotes in writing and ensure that all the required equipment, staffing and materials are documented.  Ask the provider to specify what charges may apply if your move does not proceed on schedule.  Be sure to read all the fine print carefully, so you understand upfront what other charges, such as waiting time, or a late return charge you might incur that are not planned for in the initial quote. 
 
Your Realtor® can be a valuable resource here too.  Not only can they help you estimate carrying and closing costs, they can also recommend experienced and trusted service providers to help you keep the cost of moving and home ownership affordable and keep your move hassle free. 

Tuesday 4 October 2011

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: How Much Home Can You Afford? (Budgeting your Carr...

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: How Much Home Can You Afford? (Budgeting your Carr...: How Much Home Can You Afford? Part One - Budgeting your Carrying Costs Finding the right property at an affordable price can sometimes be ...

How Much Home Can You Afford? (Budgeting your Carrying Costs

How Much Home Can You Afford?


Part One - Budgeting your Carrying Costs


Finding the right property at an affordable price can sometimes be a challenge.  When it comes to deciding just how much home you can afford, there are two kinds of expenses you’ll need to consider – the ongoing or ‘carrying’ costs of the home, and your closing costs. 

The first step in determining your carrying costs is to get pre-approved for a mortgage.  By pre-qualifying for a mortgage, you can find out up front what your maximum mortgage payment might be, even before your home search begins.  Your lender will look at your earnings, credit history and any outstanding debt, and help you determine what size loan you qualify for, at what rate, and what your regular mortgage payments would be.  Being pre-qualified offers another advantage, since it puts you in a stronger negotiating position when you go into an offer with pre-approved financing.

Once you’re pre-approved, the next step is determining what you actually want to spend on your mortgage payments.  Remember, your pre-approved mortgage establishes the maximum amount of loan you’d qualify for, but you may decide that you want to aim at a smaller loan, with a lower payment.  

Be realistic and think about your lifestyle.  Although it may seem feasible to handle a sizable mortgage payment at first, keeping it up may eventually require cutting back on other expenses, such as clothing, or entertainment.  Make sure that if you plan to make any concessions in these areas, you’re prepared to live with your decision until there’s a change in your income.  Owning a home can give you a tremendous amount of pleasure and personal satisfaction, as long as you plan for adequate resources to enjoy it with some peace of mind. 

With your estimated mortgage payment in mind, the next step is to determine your total carrying costs.  Add up all your estimated monthly costs, such as the mortgage payment, property taxes, insurance, heating costs and other utilities.  Then add a figure to cover yearly maintenance and upkeep.  Consider both the interior and exterior of the house, as well as the garage, driveway, landscaping and all other aspects of the property when you arrive at this figure. 
When preparing your budget, be sure that you also make allowance for a “contingency fund” to cover unexpected expenses such as a major repair or the replacement of a large ticket item, such as an appliance. Life sometimes has a way of surprising us, and you don’t want to start out with a budget that’s so tight, there’s no room for the unexpected. 

Saturday 1 October 2011

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Home Energy Saving Ideas

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Home Energy Saving Ideas: Home Energy Saving Ideas Energy costs can take a big bite out of any homeowner’s budget, so you need to know how to be energy-wise. Here a...

Home Energy Saving Ideas

Home Energy Saving Ideas

Energy costs can take a big bite out of any homeowner’s budget, so you need to know how to be energy-wise.  Here are a few quick and easy ways to cut your energy bills with a minimum of time and effort. 

One of the biggest energy expenses is your home heating bill, so let’s start there.  You can significantly reduce your energy costs by installing a thermostat with an automatic timer that allows you to set the temperature back by a few degrees at bedtime, and returns the temperature to a more comfortable level before you get up.  After all, why heat the whole house, when an extra quilt will keep you toasty and warm for a lot less money?  On the flip side, when the temperatures ramp up, pre-set timers can reduce air conditioning costs too.

Similarly, if you have a room that isn’t used every day, such as a guest room or workshop, consider shutting the air register, and closing the door until you plan to use the space. Your furnace or air conditioning system won’t have to work so hard and you’ll pocket the savings while the rest of your home environment stays in the comfort zone.

You can also reduce the effect of ambient solar heating in summer and heat loss in winter with lined draperies or installing window blinds.  Adding weather-stripping to seal drafts around doors can also result in big energy savings.

Insulation is an energy saver that works hard for you all year long.  A one-time investment keeps your home cooler in summer and warmer in winter and the cost of installation can be recaptured in energy savings.  Many local utilities and  government bodies offer special incentives or rebates to help offset the cost of energy-saving improvements, so be sure to investigate what options are available in your market.  Your Realtor® may also be a helpful source of information about local programs and access to Energy Audit Professionals.  

Old appliances may also be draining more power than you might think.  Did you know that a refrigerator is one the biggest energy users in the house?  So, if you have an old appliance that needs repair, don’t just look at the cost of fixing it, also think about how much energy it uses. Today’s newer appliances are far more energy efficient than their predecessors, so buying used appliances or repairing an old unit may not be the bargain that you think it is!