Buying Up: Selling a home of lower value and purchasing a home of higher value or selling a smaller home and buying a larger home.

There are many reasons why people “buy up”, the most common of which is a growing or aging family that requires more space to live. This scenario occurs for thousands of families every year in Calgary and continues to happen no matter what type of real estate market exists. According to the National Association of REALTORS ® a typical family changes homes, on average, every five to seven years.

Buyers’ Market: A market in which there are significantly more sellers than buyers giving the negotiating advantage to the buyer. Normally, prices decline in a buyer’s market. Calgary is currently in a Buyers’ Market. In a typical buyers’ market, homes with higher values tend to decrease in price by a greater dollar value over a given time period.

EXAMPLE:
Community A has a typical home selling for $650,000 in March of 2015 and in March of 2016 the same home has dropped in value by about 5% to $618,000. Community B, on the other hand has a typical home selling for $425,000 in March of 2015 and $422,000 in March of 2016. This is very comparable to what is currently happening in communities around Calgary in today’s buyers’ market.

Let’s say community A could be a house in Hamptons and Community B may be a house in MacEwan Glen.
A family in MacEwan has decided to move to the Hamptons to a bigger house. Had they made the move to that house in March, 2015, they would have sold their MacEwan house for $425,000 and purchased the Hamptons house for $650,000. The difference in price would have been $225,000.
Now let’s look at the same purchase in March, 2016. The MacEwan family is selling their house for $422,000 and buying the Hamptons house for $618,000. The difference in price is now $196,000. Even after accepting the lower price on the sale of their MacEwan house, there was a $29,000 difference in their favour on the purchase. Add $12,000 in interest that will not be paid on that amount over the 25 years of the mortgage and the MacEwan family saves $41,000 through buying up in this buyers’ market.

For more ways to save money in the current market, contact me directly.

Say you’re viewing a home and are impressed with how it looks. The walls are freshly painted. Everything seems bright and new. You’re considering making an offer.

Then, while standing on a mat in the kitchen, you hear a squeak below your feet. You lift the mat and see that some tiles are broken. Obviously the mat was there to, literally, cover up that defect.

A few broken tiles are not a big deal. But now you’re thinking, “What else might be wrong with this house?”

There’s no reason to worry that every home will have maintenance issues hidden from view. However, it’s smart to do your due diligence to ensure the home you’re considering is truly as good as it looks.

One way is to have a professional home inspector check out the property as a condition of your purchase offer. He or she will inspect the home from top to bottom, inside and out, and point out any issues you should address.

It’s also smart to ask questions. Find out the age of certain features, such as the roof, furnace, and appliances. Ask about any recent renovations, and determine whether they were done by a professional or by the homeowner.

Most importantly, work with a good REALTOR® who can provide you with information on the property that you would have difficulty getting on your own. Your REALTOR® has a stake in making sure you buy a home with your eyes wide open — knowing all the potential maintenance issues you’re likely to encounter.

Want to talk to a good REALTOR®? Call today.

Sometimes we don’t have much choice about selling our home and buying
another. Circumstances, such as a job relocation, may have made that
choice for us, However;  most often the decision to move is discretionary.

Sometimes people move simply because they think it’s a good idea. They feel that
“now” is the right time to find their next dream home.

So how do you make that kind of decision?

There are, of course, many reasons to make a discretionary move. Usually,
those reasons fall into one of two categories: need and want.
You may need to find a new home, for example, because you’ve outgrown
your current property. Perhaps you have a growing family and require more
space. Maybe you’re doing more entertaining and need a larger backyard
with a more spacious deck. It could be that the commute to work is arduous
and you need to move to a place that’s closer.

Those “needs” may motivate you to move, but sometimes a “want” plays an
important role, too. For example, you may want to live in a quieter neighbourhood or in a newly
built home that requires less maintenance. Maybe you simply want a
change.

If you’re thinking of making a move, take a moment to write down a list of
your needs and wants. Seeing them on paper will help make the decision
easier.
Looking for expert help? Call today.

When some people think about selling their home, they imagine all the
things they will have to do: paint the kitchen, clean closets, prepare for
viewings, find another home, arrange financing, start packing, etc. It can all
seem very overwhelming very quickly.
In fact, the long to-do list you imagine you’ll have to deal with may dissuade
you from making a move!
It doesn’t have to be that way.
There are many ways to make selling your home and buying another
relatively simple and easy.
Sure, there will be some work to do. You may need to prepare your property
so that it looks appealing to potential buyers – cleaning, decluttering, doing
some repairs, etc. Of course, you will also need to view some properties for
sale in order to find your next dream home.
But those activities may not be as time-consuming or difficult as you had
imagined. In fact, you and your family might actually enjoy the experience –
and see it as an adventure.
The trick is to work with the right REALTOR®, someone who can guide you
through the process, show you the shortcuts, and generally make things
easier for you.
It’s a little like baking your first cake from scratch. The task seems daunting,
unless you have a master baker by your side to guide you step-by-step
through the process. Then it’s a lot easier, and even fun!
That’s what a good REALTOR® can do for you. Looking for one? Call
today.

Imagine you’re viewing a potential new home. You walk in the front door
and are instantly impressed. You explore the property room by room and
like what you see.
Then there’s something you notice that’s not quite right. An odour. You
realize that it’s likely cat dander and, now that you’ve identified it, you smell
it everywhere. Suddenly the home doesn’t seem as attractive as it did just
moments earlier.
The owner of the property is probably so used to the smell that he doesn’t
even notice it. Neither does anyone else in the household.
So, when marketing your home for sale, be scent sensitive. Think about the
odours that you may have become used to but others are likely to notice.
Even odours you think are pleasant, like the strong scent given off by some
house plants, may not be pleasing to everyone.
An odour can easily distract a buyer from appreciating the good qualities of
your property. Pay particular attention to garbage bins (which can smell
even when empty), pets, kitty litter (even when fresh and unused), the
kitchen (especially after cooking), perfumes, and closets.
The smell of cigarette smoke is particularly unpleasant to many people. Its
odour can linger even on an outside deck or patio.
Bottom line? Don’t assume buyers won’t notice certain smells. They will.
Looking for more advice on selling your home quickly and for the best price?
Call today.

In This Edition
MarketTemperature: Listing Inventory Remains Low
HomeAdvisor: House Hunting Made Easy
HomeMaintenance: Spring Maintenance for your Spouse?
________________________________________
Time to Sell?: I take pride in offering exceptional service.
1.An in-depth market analysis of your property
2.Property enhancement prior to marketing
3.A comprehensive promotional and marketing plan
4.Regular and clear communication so you know what is happening
5.Expert and experienced negotiation and structuring of the sale
6.Comprehensive transaction management
7.My “NEW” client appreciation program
Call Jim at 403 660 6239 or email Jim
________________________________________
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. Call me for advice before you decide to buy or sell a home.
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MarketTemperature
Listings Inventory Remains Low
We are currently seeing the lowest March inventory levels in more than five years. New listings in March are five per cent lower than levels recorded in 2012, and five per cent lower after the first quarter. The overall active listings stand at just 4,006 units, up from February’s levels but well below the number available one year ago. Single-family,year-over-year sales growth declined by six per cent in March, a reflection of declining supply. Active inventory totaled 2,713 units, 22 per cent lower than levels recorded in 2012, and the lowest March inventory level recorded since 2007.
The effects this has on buyers in the current market are twofold. There is continued upward pressure on price so buyers may have to pay a little more for their purchase and possibly compete for a home that ticks all the boxes for several buyers.Also, the time buyers have to make a buying decision has been reduced significantly.
For sellers, you can expect a faster sale of your property with the possibility of achieving a better sale price than was possible at the end of 2012.

This does not mean every home will sell quickly, but those homes that are in demand, especially homes in sought after neighbourhoods will see less time on the market than they have in the past few years.

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Home Advisor
House Hunting Made Easy
After working with many home buyers, I have a few gems of wisdom to share. Over the past few years I have learned to guide buyers through a “House Hunting” process. When we do this together, house hunting becomes enjoyable and fun. Here are the steps I suggest for my buying clients.
First, imagine what your new home looks like, what community it is in and what the features inside and outside are. Create this scenario in your mind that helps you develop a picture of your house. Imagine we are at your house warming party. As your guests walk through your new home, what are the features you will be pointing out to them… the master bedroom, the closet space, the kitchen, the family room, the basement. Picture the home as you walk through it.
Then picture outside the house. What street is it on? What schools are near buy or what amenities are close. Everyone has different
ideals. For me, I would want an off leash dog park within a few minutes’ walk. You may want to be near a recreation centre. When you can visualize “your open house” will know what you are trying to achieve in your hunt for the house that suits you best.
The next step is to find that home the right way. There is a wrong way to look at homes and there is a right way. Most people waste a tremendous amount of time and energy going to open houses or looking at homes they see advertised on line, in magazines or the weekly real estate ads. These people say they are looking for the home that “feels right”. Often, when they find the one that does feel right they are left thinking “If only it were in a diffferent neighbourhood or on a different street. If I could just take this home from here and move it over there.”
What I want to share with you is that buying a home is not a process of selection; it’s a process of elimination. We begin the process by eliminating neighbourhoods and styles of homes you are not interested in and continue to refine. This does not mean we will eliminate all but one choice. We may have several possibilities.

I will have succeeded in my job when I’ve helped educate you to the point that when we walk across the threshold of a home you’ll know exactly what you are looking for and you’ll know if it is priced right. When we have accomplished this you will be ready to buy. You will know when we cross the threshold of your next home.
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HomeMaintenance
Spring Maintenance
0r…10 things for your spouse to do next Saturday:

1. Check air conditioning system (have it serviced every two or three years).
2. Check humidifier and clean if necessary.
3. Check smoke, carbon monoxide and security alarms and replace batteries.
4. Clean windows, screens and hardware.
5. Check screens first and repair or replace if needed.
6. Examine the foundation walls for cracks, leaks or signs of moisture, and repair as required.
7. Repair and paint fences as necessary.
8. Ensure sump pump is operating properly before the spring thaw sets in.
9. Check eaves troughs and downspouts for loose joints and secure attachment to your home, clear any obstructions, and
ensure water flows away from your foundation.
10. Clear all drainage ditches and culverts of debris.

________________________________________
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

In This Edition
MarketTemperature: Months of Inventory Down
HomeAdvisor: Preparing your Home for Sale
HomeMaintenance: Maintenance Memory Jog
___________________________________________________________
Time to Sell?: I take pride in offering exceptional Service.
1. An in-depth market analysis of your property
2. Property enhancement prior to marketing
3. A comprehensive promotional and marketing plan
4. Regular and clear communication so you know what is happening throughout the selling cycle
5. Expert and experienced negotiation and structuring of the sale
6. Comprehensive transaction management
7. My “NEW” client appreciation program

Call Jim at 403 660 6239 or email jim@jimperks.ca
___________________________________________________________
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. Call me for advice before you decide to buy or sell a home.
________________________________________
MarketTemperature
Months of Inventory Down
Months of inventory relates to mow many home are for sale in relation to how many homes are selling. For example, f there are 2000 homes on the market and they are selling at 1000 homes per month, there is 2 months of inventory. As of March 13, Single family listing are down over 6% from this time last year and condo apartment listings are down 11% and Condo Townhome listings are down by 9%. Overall, th nuber of listing in the market. “When new product comes onto the market, buyers are not delaying their purchasing decisions as the majority of homes are selling in less time at prices closer to their list price,” said CREB® President Becky Walters. “The tighter market conditions have supported price growth. I am still experiencing multiple offer situations in the market and my colleagues in RE/MAX Mountain View are seeing multiple offers on a daily basis right now. We are seeing many properties selling at or above listing price. As a buyer, you must make up your mind quickly when you find a property you like. As a seller, this is an excellent time to put your house on the market. I am currently working with a number of great people to help them find their next home, not always an easy task when the months of inventory is down.

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HomeAdvisor
Preparing Your Home for Sale
Although pricing your home properly is the single most important element in the selling, it is followed closely by preparing your home for sale. In order to get the maximum price for your home it needs to be move-in ready for the next owner. There seems to be this myth that you should not improve your home before you sell it because the next buyer may want to do something different with it. This could not be farther from the truth. According to the National Association of Realtors, only 13% of buyers are looking for a home that needs improving. If you home is not in move in condition, you lose out on 87% of the market.
The best way to get the maximum benefit from the sale of your house is to keep it current. Update your kitchens and baths throughout the time you own the house. Don’t wait until you sell to make these changes. In most cases you will not recoup the cost of renovations in the sale price, but if you do it throughout the life of the home you will have the added value of enjoying those renovations while you live in the house.
Some of the items on your todo list prior to selling may include floors, doors, paint, lighting and trim. These are the “givens” for property flippers and worth considering when you are selling your home. A fresh coat of paint will give you the best return on your dollar spent, but keep in mind that any do it yourself work you do has to be professional grade or it could take away from the value of your home. There are a number of other items that should be on your list. Check out this link below to the Home Ready Checklist provided by the Canadian Real Estate Association.
http://www.howrealtorshelp.ca/pdf/Home_Ready_Checklist.pdf
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HomeMaintenance
Maintenance Memory Jog
This list may jog your memory and remind you of some maintenance you forgot to do on your home
Excerpted from the Popular Mechanics book When Duct Tape Just Isn’t Enough, published by Hearst Books/Sterling Publishing.

1. Test your garage door opener monthly to ensure that it reverses when it hits an obstruction or when its sensor beam is interrupted.
2. Vacuum the clothes dryer’s exhaust duct at least once a year. If the duct is plastic, replace it (it’s a fire hazard). Rigid sheet-metal ducting is best.
3. Replace furnace filters quarterly, or as recommended by the furnace manufacturer.
4. Test all GFCI (ground fault circuit interrupter) outlets monthly. Press the test button and use a voltage tester to make sure the power goes off.
5. Clean leaves and debris from the condenser of a central air conditioner seasonally.
6. Once a year, vacuum the refrigerator coils underneath the appliance.
7. Have the fireplace chimney inspected and cleaned annually.
8. Inspect window and door caulking and weather stripping yearly.
9. Replace the batteries in smoke detectors yearly. And remember, even recent hard-wired smoke detectors have backup batteries that must be replaced. If you have never checked yours, do so.

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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

In This Edition
MarketTemperature: Total Listings Low
HomeAdvisor: Used Trampolines are Hard to Sell!
HomeMaintenance: Learn How To Do These 5 Things
___________________________________________________________
Market Snapshot: Are you getting a FREE monthly Market SnapShot of your neighbourhood? They contain valuable information about real estate in your area. I provide them for your neighbourhood at my website, www.calgarypropertyprice.ca Empower yourself with knowledge and tell your friends about this free service.
___________________________________________________________
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. Call me for advice before you decide to buy or sell a home.
________________________________________
MarketTemperature
Sales continue to be high in spite of the low number of listings on the market
Total sales for January were 1,230 units, a significant increase over the 1,068 units last year. But sales remain well below January levels recorded through the peak years of 2003 – 2008. “While activity is typically slower in the winter months, recent improvements in single family new listings helped support improved sales in that market,” said CREB® President Becky Walters. “Overall indicators put the market in balanced conditions.” Single family sales totaled 879 units in January, a 15 per cent increase over January 2012 levels. New listings remained just above levels recorded at the same time in 2012, for a total of 1,737. The slight improvement in listings helped support sales growth, although inventory levels remain down by double digits. This lower inventory is affecting the overall attitude of buyers in the market. As spring approaches and selection improves I believe we will see a significant jump in the number of sales as a result of increased listings.
There is currently some slight upward pressure on home prices given the current market situation and that upward pressure is expected to level off as we approach the more active selling months.

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HomeAdvisor
Used Trampolines are Hard to Sell!
Spring is near and thoughts of listing your home for the coming selling season may be dominating your day. If you are considering putting your house on the market within the next few months, now is the time to begin preparing. In order to get the best price in the shortest amount of time you must take care of the details to prepare your house for sale. If you want some advice I would certainly be willing to do a walkthrough of your home and discuss some ideas to improve the price.
As I have said many times over in this monthly newsletter, stats show that 87% of all buyers want a move-in ready home. In order to get top dollar in a reasonable time on market, make your home move in ready. If you are thinking “I’m just going to leave it this way and the new owner can fix it up the way they want”. I caution you against this. If you are of this mind, there are two things you must do to sell your house:
1. Expect a lower price because buyers will see work and cost. That translates to a lower offer
2. Expect to be on the market a longer time. Homes on the market longer get stigmatized.
Remember that 87% of buyers want move-in ready homes. If you’re not selling a move-in ready home, you are only selling to 13% of the market. That means for every 10 people who come through your home, less than 2 will be interested in taking on a reno project and the chances that your home fits with what that one person is looking for is slim.
What does move in ready mean? Depending on the standards for the community you are in, it can mean any or all following:
1. Your house is clean and free of clutter to allow the buyers to picture themselves and their things in your house.
2. If flooring is worn, consider replacing it with new flooring, If you have scratched or dulled hardwood, consider getting it professionally refinished. The cost of replacing flooring is one of the main concerns with my buyers and most would rather not do it.
3. Paint your house. This is perhaps the best return, dollar for dollar, you can get for work on your house. Modern neutral colours can make a great difference in how a home shows. Again, as I have said many times in this newsletter, If you can’t do a professional grade job yourself, get it done professionally.
4. Lighting, doors and trim are also some changes you can make to modernize your home
5. Kitchens and baths are the big ticket upgrades in a home. The problem with renovating them just before you sell is that it is rare that you would get the full cost of the renovation back in the sale. It will help your house sell faster and for a higher price. This is a great case for keeping your home up to date while you are living in it. If you are going to renovate kitchens and baths, do it while you can enjoy it so you get some value out before you sell. That being said, a fresh coat of paint and or modern hardware can change the look of a kitchen and a new countertop can freshen the look.
One of the worst things you can do is renovate without the skill or knowledge of what you are doing. If you want to do renovations yourself, take the time to consult with an expert to make sure your work is professional grade. I have seen more than one case where bad DIY projects have cost the seller money. When a buyer looks at bad DIY, the see work and additional cost.
One of the Real Estate Gurus I follow says “The market is cruel, but the market is never wrong”! In order to sell your home fast for the best price you have to give people what they are looking for. If you try to fight the market, your house will become a trampoline. That’s the house buyers bounce off of on their way to the one they buy. Used trampolines are hard to sell.
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HomeMaintenance
Last month we talked about 10 things you can do to save energy in your home. If you missed it, check past blogs on my website at www.jimperks.ca This month my maintenance list includes 5 home repairs you should learn to do yourself. Learning these can save you time, frustration and, in the long run, money on repairs.
1. Painting: Sprucing up your rooms with paint is one of the best ways to show your home at its best. When it’s done well, painting can increase the value of your home and add some style. When the job is not done well, it’s almost as bad as leaving cracked and peeling paint on the walls.
2. Door maintenance: Wear and tear plus seasonal changes can cause doors to stick or not close properly. Learning to maintain them can save you a lot of frustration.
3. Applying Calk: Caulk is the rubbery stuff between your tub, shower or sink and the wall, or between your toilet’s outer rim and the floor. It creates a seal that protects floors and walls from moisture. It also glues itself in place, which makes applying it easy. Over time it will discolor or deteriorate, leaving your home vulnerable to water damage and mold growth.
4. Fix a leaky faucet: never mind the cost of water lost through a dripping tap, with acrylic and cultured marble basins and tubs, fixing that leaky tap will save you hundreds of dollars in replacing bathroom fixtures.
5. Unplugging a clogged toilet: With the cost of a plumber just to cross the threshold of your door, it makes sense to have a plunger on hand to take care of the clogs. Be brave and get the job done yourself.
________________________________________
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

In This Edition
Market Temperature: Start of 2013 brings upward pressure
Home Advisor: Tools for the Home Buyer
Home Maintenance: Making your Home more Energy Efficient
___________________________________________________________
Market Snapshot: Are you getting a FREE monthly Market SnapShot of your neighbourhood? They contain valuable information about real estate in your area. I provide them for your neighbourhood at my website, www.calgarypropertyprice.ca Empower yourself with knowledge and tell your friends about this free service.
___________________________________________________________
Market Temperature
Sales in Calgary ended the year on a high note. Sales volume was up 15% in 2012 compared to 2011, and benchmark prices were up by up by 5%We are seeing a solid recovery to the Calgary real estate market and even though prices have not yet reached the highs recorded in 2007, the market is moving in that direction. There is a measured sustainable recovery that is being fueled by growth in the energy sector and spilling over into housing and other aspects of the Calgary economy.
Healthy employment and migration into Calgary has increased demand for homes and this trend that is expected to continue through 2013. The single family market sales growth outpaced increases in the total condominium market within city limits. Single family sales rose by 15 per cent in 2012 compared to 2011.
New listings have not keep pace with demand, declining by 7% over the same period. This has significantly reduced the inventory of single family homes in the market causing an upward trend in pricing. Buyers are looking for value and if a home is priced they are buying. Over the first half of 2013 we can expect the spread between asking and selling price to narrow. If you are think of putting your home on the market, now is a good time as inventory is down and there is definitely buyers out there looking for the right home.

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Home Advisor
If you are on the lookout for your next home there are a number of tools available to you online. Perhaps one of the best “One Stop” resources is the CMHC website. http://www.cmhc-schl.gc.ca/en/co/buho/ here you will find a cornucopia of resources to help you through the buying process. From their 5 step buying process to useful tools like their many calculators, the sites helps to inform buyers about every aspect of the financial side of making the purchase. There are a number of worksheets that cover every aspect of buying, including a list of questions you should be asking your Realtor. If you are just starting down the buying path or even if you are already committed, you will finds this site invaluable.
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Home Maintenance
Ok, it’s a new year and you have decided that you are going to change the way you use energy. Not only will you be saving money on your utilities, you will be making a significant contribution to the health of the environment. So, the next question is’ “ What can I do to make my home more energy efficient”? Tapping into the sun’s warmth and light, making a few simple design changes, choosing and using appliances wisely, and changing a few old habits can make an impact. Here are 10 things you can do in your home right now to make a difference.
1.Stop Drafts – Plug the gaps in your windows, doors and other external openings where air is leaking
2.Lower the Heat – a reduction of just one degree can cut bills by 10 per cent. A programmable thermostat can also help you to more precisely control temperatures at different times of the day
3.Hang Clothes to Dry- A close line may not be practical in this fast pace world, but reducing your dryer use by hanging some clothing items will make an impact
4.Improve Insulation – If you are in an older home, this can make a significant difference the cost of heating and cooling your home.
5.Cover the Windows – heavy draperies can decrease heat loss by as much as 30% during cold winter days. Before you leave the house for work, close the drapes and blinds
6.Take Advantage of the Sun – On sunny winter days let the light into the room and use the natural warmth to help heat your home
7.Plug appliances into a Power bar – When your TV, stereo, video games and computer are sitting idle they can account for as much as 10% of your energy consumption. Turn off the power bar.
8.Update light bulbs – LEDs use far less energy and last much longer than conventional bulbs and even CFLs are a better alternative to the old incandescent bulb.
9.Insulate Hot Water Tank and Pipes – 25% of your energy bill can go toward heating water and 50% of total water heating costs can be due to heat loss.
10.Choose the Right Size Appliances – When it comes time to replace your appliances consider that larger appliances use more energy. A 284 litre fridge will use 20% more energy that a 210 litre fridge even if they have the same energy rating.

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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

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