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.

When you make an offer on a home, it’s a smart idea to have a professional
home inspector check it out from top to bottom. This inspection will ensure
that the property doesn’t have any unexpected “issues”. After all, you don’t
want to buy a home only to discover that the roof needs to be replaced,
immediately, for thousands of dollars.

That being said, you might question whether you really need to invest the
few hundred dollars it costs for a professional home inspection. “The home
we want to buy looks like it’s in very good shape,” you might be thinking. “I
can’t see anything wrong with it.”

However, a professional home inspector can see things you can’t. When
you view a property that’s on the market, you might be able to notice
obvious issues, like a crack in the foundation or a dripping faucet. If you’re
experienced with home maintenance, you might even notice roofing tiles
that look like they’re overdue for replacement.

But you won’t pick up all the issues a home inspector can.
A home inspector will, for example, use a special device to check for
moisture build-up in the washrooms – which can be an indication of mould.
He or she will also inspect wiring to make sure everything is safe and
compliant with the building code.

That’s not all.
Like a determined detective, a home inspector will investigate the property’s
structure, electrical and plumbing systems, insulation, and other
components — and then report the findings to you.
In the end, a professional home inspection gives you peace-of-mind and
protects your investment. So getting one is highly recommended — even for
recently built homes.
A good REALTOR® can recommend a trusted home inspector for you.
Looking for more ideas on making smart decisions when buying a home?
Call today.

Do you have a renovation project in mind – and wonder how much value it
will add to your home? Remodeling Magazine recently did a study of
renovation projects, comparing costs to added value. Here are some of the
results:
Replacing a main entry door has a return on investment of over 95%. After
all, the entrance to a home is one of the first things a prospective buyer
notices.
Adding a new deck also adds a lot of value. Depending on the materials
used, you can expect to get back three-quarters of the money invested.
Another high-payback project is the garage door. This once again
demonstrates the importance of a home’s “curb appeal.”
If you’re tackling a big project, such as a basement renovation, you’ll be
glad to know that, according to the study, a project like this adds a lot of
value.
Finally, minor improvements to bathrooms and kitchens – such as adding
new countertops or cupboards, can also be good investments that mostly
pay back when you sell your home.
Of course, these figures are averages and can vary widely depending on
location, type of property, and other factors.
Need help determining how a particular home improvement might impact
the selling price? 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.