In This Edition
MarketTemperature: Total Listings Low
HomeAdvisor: Used Trampolines are Hard to Sell!
HomeMaintenance: Learn How To Do These 5 Things
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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.
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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
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.
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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 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.
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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

February, 2012 (Advice for Home Owners)
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.

In This Edition
Market Temperature: February in Calgary
Home Adviser: The First Time Home Buyer Tax Credit
Home Maintenance: Sourcing the Internet for Maintenance Tips

Market Temperature
The January market saw some stabilization and as we move into February, we see the start of the most productive real estate season of the year.
On Feb 1st the House Price Index was introduced to Calgary. This is a tool for Realtors that creates a more accurate picture of pricing both by neighbourhood and by property type. This will complement the Comparative Market Analysis to help Realtors narrow the range of pricing for homes. If you are buying or selling a home over the next while, ask your Realtor to show you how the House Price Index works and what it looks like for properties in your neighbourhood.
There are two big Real Estate events coming up this month for Calgarians. The first is the REDEX or Real Estate Developers Expo. If you are interested in real estate investing , you should not miss this event. It runs sat. The 11th and Sunday the 12th at the Ramada down town on 8th ave. Tickets are $20 at the door but you can enter free by preregistering on line.
The Calgary Home and Garden Show runs from the 23rd to 26th at the BMO Centre and Corral. Tickets are $14.00 at the door. I have purchased a limited number tickets that I make available free to my clients. If you would like to attend give me a call. I can arrange for you to get tickets before the event. Proceeds for the Home and Garden Show go to the CREB Charitable foundation to support some very worthy causes here in Calgary
We’re heading into the peak real estate season as we approach spring. This is the time of year were we see the most number of buyers and seller in the marketplace. If you are looking to buy or sell, give me a call. I’ll show you how the new House Price Index works for your neighbourhood.

Home Adviser
If you bought your first home in 2011 you may qualify for the First Time Home Buyers Tax Credit. The home must be in Canada, must be the first home you have purchased or you have not owned a home since 2006. If you are disabled and are purchasing a home to improve your living conditions, you may also qualify. Watch this video for more information
http://www.cra-arc.gc.ca/nwsrm/vdcsts/2012/menu-eng.html?clp=ndvdls/hmbyrs-eng

Home Maintenance
The Internet is full of great information on just about any topic you can think of. When it comes to home maintenance, there are a number of great sources you can use to find out the “How Tos” of the work you want done. Last week I needed to do a repair on my single lever kitchen faucet. It was the cartridge type, so when it started leaking I assumed it meant replacing the cartridge. After a little research though, I found that the leak is often caused by one of three possible problems. The cartridge is worn out, the O rings need replacing or the cartridge is coming lose inside the housing of the tap because of repeated use. I shut off the water, removed the housing and tightened the screws that hold the cartridge in place. No more leak!
Before you go out and spend money on parts or a tradesperson, try doing a little online research about your problem. You may be looking at a simple fix. The website I found my information on was www.familyhandyman.com
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

January, 2012 (Advice for Home Owners)

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 cal or email me.
In This Edition
Market Temperatue: Your 2012 Property Tax Assessment
Home Advisor: The Jewel Box Phenomenon
Home Maintenance: 13 todos with 10 minutes or less

Market Temperature
*Please Note, The City Assessed value is not the current market value of your property.

Your 2012 Calgary Property Tax Assessments
On January 3rd The City of Calgary mailed out the Property and Business 2012 Assessment Notices and the Assessment 2012 Customer Review Period is from January 3rd to March 05, 2012. The 2012 Property Assessment values are based on a July 01, 2011 market valuation and December 31, 2011 physical condition.
Here are some of the key findings in this assessment:
2012 median single family residential assessment is $400,000 compared to $410,000 in 2011.
2012 median residential condominium assessment is $240,000 compared to $250,000 in 2011.
Total number of accounts on the 2012 Property Assessment Roll is 456,000.
Total value of the 2012 Property Assessment Roll is 232 billion A 1 Billion increase over last year. The previous year saw a 13 billion increase
The typical market value residential property assessment change is down3% between 2011 and 2012.
93% of the residential properties’ revenue neutral taxes will be within ± 10% of last year’s taxes.
62% of residential properties will see a revenue neutral tax decrease due to the 2012 assessment.
38% of residential properties will see a revenue neutral tax increase due to the 2012 assessment.

Home Advisor
The Jewel Box Phenomenon
There is an interesting phenomenon taking place in the real estate market place. Although I would not say it is a trend, there is a definite indication that buyers attitudes are starting to change. The jewel box is a smaller home, usually about 1600 sq ft or less that is full of amenities and light on space. The home appeals across a wide demographic from young urban professionals looking for quality of life to empty nesters looking to downsize but not wanting to compromise on their amenities.
Typically, buying a smaller home means buying builder quality finishing in a cookie cutter neighbourhood full of first time buyers. In fact, most of the new home product in these smaller sized homes still fits this description, but there seem to be a growing number of buyers who are happy with less space. They are not looking for builder grade finishes. They want gourmet kitchens with stone countertops and top of the line appliances, high end fixtures throughout the home and quality flooring materials like hardwood and stone. They want theatre sound and built in technology to make their home run more efficiently. They want the uncompromised finishes that come in a large luxury home, but they want it in less space and a more affordable package.
There is a growing movement for the Jewel Box Home. On the internet, websites and blogs are dedicated to this movement:
http://thejewelboxhome.blogspot.com/
http://www.thejewelboxhome.com/
Here you can find home plans dedicated to The Jewl Box Home:
http://www.familyhomeplans.com/small-jewel-box-house-plans
There are many more places where you can find information on living large in a smaller space. Whether this phenomenon becomes a trend remains to be seen, but given the changes that have taken place in our economy over the past few years and the age of baby boomers, it all make sense, doesn’t it?

Home Maintenance
13 Todos with 10 minutes or lass
You’ll love these ideas. They only take 10 minutes, but they are things you need to cross off your list. If you don’t have a list, make one! I kept it to 13, a lucky number.
1. Vacuum the condenser coils at the back of your fridge.
2. Replace your furnace filters.
3. Polish your natural wood front door. If painted, surface wash it.
4. Clean the air conditioner grill and register.
5. Dust and test your smoke and carbon monoxide detectors.
6. Replace the batteries in your smoke and carbon monoxide detectors.
7. Self-clean the oven (Yes, this takes hours, but it only takes a the push of a few buttons to set it up).
8. Check your water heater for signs of leakage or rust.
9. Look for worn extension cords. Replace them.
10. Inspect your furnace. Any signs of rust or scale? Any weird noises? If so, book a professional inspection.
11. Pick a ground fault circuit interrupter outlet (GFCI) and test it. Push the Test button, check that this has popped out the Reset button and that anything hooked up to the outlet will no longer power on. Push Reset and you’re good to go. Test a different GFCI outlet next time.
12. Conduct a garage door safety check. Put it into manual mode and lift it: it should glide smoothly and stay open on its own three feet from the ground. Put a pet- or child-size object under the door and close it. It should pop up as soon as it meets the obstacle. If not, call a pro. Do not use real children for this experiment!
13. Check your emergency flashlight. Do the batteries work? If not, replace them, or consider upgrading to a non-battery powered, manual wind-up model.
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

“A house that is marketed properly will be in the best possible condition, priced right and highly visible to the right buyers..”There are 3 factors that will determine if a home sells quickly: Condition, Price and Marketing.

Condition
When a house is up for sale the home owner should want it to be in the best possible condition to get the best possible price. The house will attract more buyers and get top dollar if it is “move in ready” for the new owner. A home in good condition will definitely attract more when it is marketed “move in ready”. This can mean putting out a little extra cash before putting it on the market to do some of the fix ups needed to improve the condition. Giving it a fresh coat of paint and following the directions of a good staging professional can make thousands of dollars difference in the selling price. A home that is in good condition and staged properly sells faster and for more money. That is a fact.

Price
If a house is overpriced the wrong buyers are seeing it and it does not matter how much exposure it gets. Potential buyers will be expecting more home than the overpriced home can deliver. If a home has a market value of $400,000 and is listed at $450,000, only buyers who are looking for a $450,000 home will see it and will be comparing it to other homes in they have seen in the $450,000 price range. The $400,000 home will make the entire group of currently listed $450,000 homes look better. An overpriced home serves only one purpose in the market. It helps to sell properly priced homes. An overpriced home makes a well priced home look even more attractive. It will sit on the market while other houses all around it are being sold. No marketing in the world can help to sell an overpriced home.

Marketing
Marketing encompasses more than just advertising a house for sale. Condition and pricing are an important part of the whole marketing campaign. When marketing is done well, the most likely result is a quick sale for the maximum price possible under current market conditions. From preparing the house using a professional stager and pricing it correctly, to a using a variety of advertising mediums, good marketing brings qualified buyers to the table.
When you are selling your house you want the highest sale price possible and you want it sold in the shortest amount of time. That’s where good marketing comes in. A house that is marketed properly will be in the best possible condition, priced right and highly visible to the right buyers.
You need your home sold for the best price in the shortest time. Ask me about my “12 Point Marketing Plan” to ensure you get the best price in the shortest amount of time. When its time to sell your house, set yourself up for success. Call me today!

Jim Perks
The Property ladder Guy
jim@jimperks.ca

This is the second in my renovating for profit series. My focus in this post is on understanding market value and pricing. A key component to the profitability in the renovation for profit business is understanding price and value. There is a very distinct difference between the two.

Open up the weekly Real Estate News or go to Realtor.ca and you will see a selection of properties with the owners asking price clearly displayed. The numbers you are seeing on that page are not the market value, but rather the starting price in a negotiation for the purchase of the house. When you are in the business of renovation for profit, the listing price should have very little meaning for you when buying.

When buying you must consider what the market is willing to pay for the house you are purchasing once the renovation is complete, or its post renovation market value. Work backward from that value to arrive at the optimum purchase price. To know what a renovated home is most likely to sell for you need to know the actual purchase prices of houses in your area and you need to follow the market to keep track of where the market is trending. My website at www.calgarypropertyprice.ca can help you keep track of the market in your neighbourhood.

It is also advisable to get a Comparative Market Analysis done on the property before you buy it. I can provide that service free of charge to clients who use me as their buying agent.

Moving backward from the probable market value of the renovated home, you want to subtract your costs and expenses to arrive at the best purchase price for the house. These will include the cost to carry the mortgage for the amount of time you expect to be working right up to the time it takes to sell the property, your cost of materials, cost of labour, trades, real estate fees and, most importantly, a margin for profit. If you are doing this for the first time it is a very good idea to talk to someone who has experience. I would be more than happy to help clients who want to take on this challenge.

What happens when the seller won’t move on their price? Walk away. You are going to put too much time, effort and money into a project. It must be profitable. There are plenty of opportunities. Never fall in love with a house.

When you purchase a house to renovate for profit there are four major considerations. What is the current market value, what is the cost to complete the renovation, what will the property sell for once the work is complete and where the market is trending. Needless to say, you want to get in and out of a project as quickly as possible. The faster you work, the lower your cost to carry and the less you are influenced by trending in the market. If you base your purchase price on the future market value and there is downward pressure on value, you could end up with little or no profit. The quicker you complete the project, the less likely it is that any possible downward trending will affect your yield. The housing market will trend. Prices go up over time, but there are points in time where house prices fall back and there are times where they flat line.

If you are buying and selling houses, you want to know what the market is doing. If you are following the market, any time can be best time to buy if the right property comes along. You have to find the right property and you have to be aware of your margin and what a project will yield. It is difficult to make profit selling a house in a falling market, but with the right property the worst case will renting it out until the market improves.

Searching for a property to renovate for profit? I am never too busy to help in a property search.

Jim Perks

This is the first in a series of blog posts where I want to focus on flipping properties. I define flipping as buying homes, renovating and then selling for a profit. There are good profits in this activity, but there are also a number of pitfalls and I hope that these posts will help some would-be flippers avoid problems, prevent loss and increase profits. Since I began working in the real estate industry, my life has taken a number of turns; I have experiences, both good and bad, and have learned many lessons along the way. Through research and an understanding of the business, I have built on my knowledge and I feel that I can help people by sharing what I have learned.

At the start of my quest in real estate I visited with a very successful businessman who made his living flipping and renting homes he had renovated. Unfortunately, I walked away from that opportunity for an education thinking I would be OK just finding a property and fixing it up. Had I paid closer attention to what he was doing, I would have been more successful on my first attempt.

My expert has about 20 homes in his possession at any one time and lives at the edge of his line of credit. From the outside looking in, it looks risky, but he is able to mitigate his risk by sticking closely to the basic principle I am going to share with you in this post. If you pay attention to this lesson, you will make more money flipping houses!

Before you begin down the road to fun and profit, you need to define what it is you are going to do. Today’s blog is all about the word “SPECIALIZE”. There are many different avenues you can follow when you flip properties and by focusing on a specialty you will learn exactly what you need to do to make money, then profit many times over from that knowledge.

Going back to my expert, he specializes in single family homes in a specific price range that are in a certain group of neighbourhoods. He knows how and when to buy and how much profit can be realized from each home before he buys it. He understands the buyers’ needs and wants in his neighbourhoods, the best price range for maximum profits and which streets are better choices. He has become so familiar with his product that he has all but eliminated his risk of loss.

When you have specific knowledge of a niche market and understand the needs of the buyers in that market, you will significantly reduce the risk of errors and increase your profits. If you are flipping in a neighbourhood that does not have hardwood floors as a standard in most homes, you will not profit from putting hardwood in your renovations. In fact, those hard wood floors will end up costing you money and eating into your profits. Likewise, if top of the line appliances are not an expectation in your neighbourhood, you would be wasting money putting top appliances in your renovation package. The list goes on and on. You could be spending money unnecessarily in your renovations and losing out at the time of sale. On the other side of the coin, your neighbourhood may demand hardwood, completely modernized kitchens and baths as well as open concept living. If you don’t provide these in your renovations, you homes will take longer to sell and sell for less money. Knowing and understanding your buyers helps you achieve the maximum profit from each project.

I know of a home in an estate area that has been sitting on the market now for several months. It is on an incredible view lot with a stunning mountain view. Based on its size and location, it is priced right for the neighbourhood. I believe it is not selling because the owner decided to cut costs on the renovation. Laminate floors, some obvious DIY finishing and low end appliances all contribute to the problem. Buyers are looking for hardwood floors, top craftsmanship and high end appliances in this estate area and are immediately disappointed when they walk in the door. No matter how great the view is, they can’t get past the poor quality of the floor they are standing on. In the buyer’s mind all of these deficiencies bring into question the quality of the home in general.

So many people decide they are going to flip a house and do not realize this most basic principle. They buy a home and go to work renovating without any understanding of the market they are working in. They cut corners in their spending or put too much time and money into their projects. I did my first home this way and paid the price. In order to realize the maximum profit in a flip you have to know and understand your buyer. You have to know when it is necessary to spend on the upgrades and when certain features are not an expectation of the buyer. When you reach this level of understanding, you will truly profit from your efforts…. learn before you earn.

For the typical owner in today’s real estate market, the next step up on the property ladder is about a 50% increase in value. This number holds true for most couples in North America. For example, a move from a $200,000 home to a $300,000 home is a typical value increase. The step up is a change of $100,000, or 50% of the value of the first home. From there, the next step up may be to a $450,000 home and then maybe to a $650,000 to $700,000 home or more.

There are three main influences that facilitate stepping up to the next rung on the property ladder and three motivations that can put pressure on families to increase the size of their home. Facilitators are those factors that provide the financial capability for the move up and motivators are factors that encourage the move.

The first facilitator is increases in salary due to an advancing career. Having more disposable income gives the owners an opportunity to buy a larger home or a home in a higher valued location. The second facilitator is the increase in home equity with the relative change in market value due to inflation. Although this factor has been significant in the past few years in Canada, we will probably see home equity increase at a slower, more normalized pace in the foreseeable future. The third facilitator is the increase in equity due to mortgage reduction over time. As the owner pays down the mortgage amount, the relative equity in the home increases.

It is logical to assume that these three facilitators will converge to create a positive buying situation at a point of about 25% of the value in the move up home, as this would be the required amount for a down payment to step up the property ladder. Unless there is this convergence, the move up is not likely. Of course there are unknowns, such as inheritance and windfalls that can facilitate a move as well.

Motivators are the factors that trigger the desire to make the move up the property ladder. The first motivator acting on the majority of families is the need to increase living space due to a growing family. In most cases, the first move up the property ladder is motivated by the growing size of a family. The second move is motivated by the aging of family members and their need for more personal space.Teenagers need more room and they need privacy…so do the parents!

The third motivator is less obvious and it involves the desire to simplify living arrangements because the children have moved into their own homes. This move is often into what is called the “Jewel Box” home. It is fewer square feet than the previous home, but it is finished to a very high standard. Hardwood, granite, high end cabinetry and finishing throughout the home are typical of the jewel box. Although this move may not be an increase in value and equity may be recouped from this move, it is considered the last rung at the top of the property ladder.

From personal relationships to job transfers, there are many other reasons to move and many different motivators. The property ladder is just one reason owners look to change their living situation. It is a normal process that most Canadian families go through. Moving up the property ladder should be a positive experience and bring the buyer satisfaction in knowing they have made the right decision about their new home. For many Canadians, their home is their biggest investment.

Contact me if you are thinking about making a move up. I can provide you with the real estate services you need to make a successful transition from you existing home to your next home on your way up the property ladder.

Jim Perks