In This Edition

Market Temperatue: Sales Activity on the Rise

Home Advisor: 3 Selling Keys (3 part series, part 1)

Home Maintenance: Quick Renos to Get Top Price

If you own a home or you are thinking of owning a home, you are on the property ladder. As you move up or down the ladder you will need advice and that’s where I come in. As your REALTOR® you have my real estate experience, loyalty, honesty and my commitment to helping you make the right real estate decisions.
The Property Ladder News delivers information through three columns. I keep you up to date with the industry through “Market Temperature”, offer knowledge to buyers and sellers through the “Home Advisor” column and provide advice about keeping up with your house as an investment through “Home Maintenance”.
I write my own articles and the information contained within is my own opinion. If you have questions or wish to comment on anything I have written, feel free to use the comment section on my website blog at www.jimperks.ca call or email me.
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Market Temperature
In February, real estate sales activity increased 11.6 % over last year at this time. The last week of the month showed the most activity as we set the stage for the spring season. Single family homes and Condo Townhouses were strong segments of the market while condo apartments continue to lag in sales. There were 1,284 single-family homes sold in February 2012, a 10.9-per-cent increase over last year’s figures, and a 5.6-per-cent year-to-date increase. Condo townhouses gained 11.4 per cent year-over-year in February sales. Over all, we are heading into a strong spring season with a balanced market. In the graph below, you can see how inventory vs sales are influenced by seasons here in Calgary. We are on the upswing right now with sales volume higher that this time last year.

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Home Advisor

Three Selling Keys ( Part 1)
No matter what type of market a house is for sale in, there are three keys to the successful sale of that home. These apply in any town or city in any country. They are the basics everyone needs to pay attention to in order to sell their home for the highest price in the shortest amount of time with the least inconvenience and trouble. Over the next three months I will write about each of these keys to selling your house.
1. Have the best house for sale in the price category
2. Having your home priced correctly
3. Making sure enough people see your home
Having the best home means making that positive 1st impression, starting with the exterior and working the way inside. One of the first questions asked about the exterior of the house for sale is about the condition of the roof. In fact, that is the first Item on my list when I show a property to a buyer I am working with. Some other items on the list are exterior finish including paint, condition of foundation, the windows and landscaping, not necessarily always in that order. If the seller fails in the roof category, they are fighting an uphill battle. The potential buyer is going to expect to see considerable compensation for their extra cost to replace any defects that effect the building envelope . Even pricing to allow for this still puts the seller behind the best homes in the price range and they end up at the back of the line for buyers. Most buyers will cross the house off the list without even a second thought.
The best homes are in move in ready condition and that is what all sellers are competing with. Current NAR stats show that 83% of buyers prefer the move in ready home and will pay a little more for it. If the home isn’t move in ready, the seller just lost 83% of the buyers. A good number of the remaining 17% may not even see the home because something did not tick all of their boxes. The location, layout, number of beds, number of baths, the direction the yard faces…. and we could go on and on. Losing that 83% pretty much guarantees a lower sale price or no sale at all.
As the buyers move to the interior of the house, many buyers will not consider writing an offer on a home that is not in excellent condition. This means the seller must address all of the maintenance issues the home has prior to putting it on the market. If they fail to address the maintenance issues the seller risks one of two possible outcomes. The buyer will deduct the cost of having a pro do the maintenance or they just won’t bother making an offer. They can always go down the street and find a nicer house… The one they buy will be the best house for sale in the price category. After all, if you were buying a home, wouldn’t you be looking for the best house?
Some sellers can rationalize all of this and convince themselves that “someone will buy it in its current condition” but in the “real world” the best house always sells first.
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Home Maintenance
Quick Renos to get the Best Price
There is nothing more disappointing to a seller that to do a major kitchen or bath renovation prior to selling, only to find that it does not increase house value equal to the cost of the renovation. According to the Appraisal Institute of Canada, there is about a 75% return on a bathroom or kitchen renovation done prior to selling. You do not have to renovate to get a sale. As an alternative, sellers can do a few other changes to help get the best price. First and foremost, a dated home that is well maintained will show well. With a little bit of work and bit of cash you can lift the look of your property. I caution though. If you can’t do a professional grade job, consider hiring a pro. Bad DIY can cost you money.
The most obvious change is a good coat of paint, not just on the walls, but consider the cabinets, stairs, railings, exterior siding and trim. Consider anything that will look better with a fresh coat of paint. It is one project where you could get up to 100% of your cost back through the sale and if you are good enough to do a professional grade job on your own you could do even better than that.
Another good change is to update the handles and knobs on doors, cabinets and vanities throughout the house. This can really help to modernize the space. Along with this, consider updating light fixtures in key spaces in the home and if you have some cash, put in a new modern kitchen faucet and bathroom faucets.
Lastly, inexpensive light colored drapes or blinds can make the home seem brighter and let in natural light.
These are all relatively inexpensive updates that are quick to accomplish and can modernize you space without blowing your budget.

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I hope you enjoyed this edition of The Property Ladder News. As always, your comments and feedback are welcome. If you have any questions about real estate or there is a topic you would like me to cover here in The Property Ladder News, let me know.
Jim Perks
The Property Ladder Guy
403 660 6239