Monday, December 05, 2005
Preparing your home for an Open House
When you sell your home with a real estate agent, he will develop a comprehensive plan to market your home to potential buyers. This is one of the many services that I will provide to ensure your home sells in the least amount of time, for the highest price possible.
An open house is a key component of your overall marketing plan, which is not only an effective way to attract potential buyers, but also a great way to "showcase" your home.
A "real estate agent" open house is a good idea for many reasons. First of all, they may be already working with buyers who are interested in your neighbourhood. These real estate agents will inspect your home with their buyers in mind and will work quickly if they feel there is a potential match for their clients.
Many real estate agents prefer to view a property before showing it to their clients so they have an opportunity to discuss the house with the listing agent. Also, an open house can be more convenient for you the homeowner, eliminating the need for several individual inspections. You may also want to hold at least one or more open houses for the general public.
This type of open house will attract many "browsers" of course. However, if your home has good curb appeal and is attractively priced, an open house could easily turn a browser into a buyer.
I would suggest you hold your open house on a weekend afternoon when many people are driving around checking out neighbourhoods. It's also a good idea for you, your family and pets to leave during the open house. Your presence could be distracting to potential buyers and they may feel uncomfortable about discussing your home while you are there.
During the open house, I will "register" each visitor and will try to walk through the house with them, here are a few tips to make your house secure before the open house.
Remove or lock away valuables such as jewelry, cameras, compact discs, valuable coins and currency.
Attend to any potential hazards - electrical wires crossing open areas, sharp table or counter top corners, slippery stairs and walkways, fragile items that can be easily damaged.
In poor weather, provide a place for overshoes, boots, umbrellas and coats.
Avoid cooking food with strong odors such as fish. The scent of fresh-brewed coffee, home-made bread and cookies, on the other hand, can be very welcoming.
I will also give you suggestions on how to present your home in its best light. To make your home as "saleable" as possible, use this handy check list to assess what needs cleaning, mending or changing before the big day:
Floor coverings
(Includes carpeting, tile, linoleum, hardwood, etc.)
Dirty or stained?
Worn or damaged?
Is there hardwood under carpeting that can be restored?
Walls, ceilings, baseboards
Any fingerprints or stains?
Any holes, nails, tape residue?
Are they all neutral or complimentary colors?
Doors
Do they squeak?
Are the handles secure and work properly?
Any stains or other damage?
Windows
Is there sufficient light?
Any broken switches; exposed wiring?
Are they clean and crack free?
Do they open easily?
Are the coverings clean and also easy to open?
Lighting
Pet areas
Are these clean, organized and odor free?
Kitchen and bathrooms
Are countertops organized?
Are all sinks and faucets working properly?
Other rooms
Have all areas been thoroughly vacuumed and dusted?
Has all clutter, including excess furniture, been collected and removed?
Are books, toys, clothes all neatly stored?
Do mirrors look clean?
Are window coverings open?
Outside the home
Are all exterior surfaces, including decks, pools, walkways and driveways clean, clear of clutter and in good condition?
Do fence and other gates open easily?
Are the lawns mowed, walkways clear of snow, leaves removed?
Wednesday, October 26, 2005
Creating Curb Appeal - Part 2...
The interior may be clean, without a leaky faucet, cracked floor or loose door hinge in sight. But if the exterior roof, gutter, walls, driveway, garage and yard look dirty and untidy, chances are you're not going to get a lot of potential buyers knocking at the door.
Creating curb appeal is making your home inviting from the outside -- where first impressions begin. This doesn't mean spending a great deal of money remodeling and renovating. Adding a new front verandah might add a lot of curb appeal, but so will a couple of wicker chairs and potted flowers by the front door - at a lot less cost.
Here are some more tips for making the outside of your home attractive and inviting:
Clean up the yard
Mow the lawn, trim the hedges, weed the flower beds, get rid of dead trees and shrubs; get rid of any broken lawn furniture; shovel the walk and driveway in winter; rake the yard in the fall.
Repair any problems
If the roof is damaged, repair it. Also repair any doors and windows that have loose hinges or other damage; fix storm doors and window screens; caulk window exteriors; clean and repair sidings and other structural flaws.
Eliminate clutter
If you have yard and construction debris piled up along the side of the house, or elsewhere, get rid of it. The exterior of your home should be as uncluttered in appearance as the interior. This includes cleaning out the garage - a major breeder of clutter. Be ruthless. If you haven't used something in a year, give it to charity or recycle it.
Give siding a fresh new look
Cleaning the exterior surface is all your home may need for a fresh new face. Before rushing to paint siding, try washing it. For painted wood siding and aluminum siding, use a solution of one cup strong detergent and one quart chlorine bleach in three gallons of water. Be sure to wear rubber gloves, goggles and other protective garments. Work from the bottom up and rinse thoroughly.
To spruce up vinyl siding, hose it down, sponge it with a mild liquid detergent and rinse.
Use paint to brighten, re-proportion exterior
A paint job can do wonders for the exterior of a home. A low house can look more graceful and tall from the curb by emphasizing its vertical features. Paint elements such as doors, shutters and corner trim in a color that contrasts with the siding material or color. On a high home, emphasize horizontal by using a contrasting paint color on window sills and fascia boards. You can also make a tall house look lower by painting it a dark color, provided that the roof is dark too. Conversely, a light color will make a home look larger.
Co-ordinate the exterior 'look'
The more co-ordinated your house looks from the outside, the more appealing it will be. Co-ordinate the 'look' of your home by painting the garage, tool shed, playhouse and other outdoor structures with the same color schemes as the house. If your house is a mixture of conflicting textures - vertical siding, shingles and brick, for instance - try painting them all the same color, or in two related shades of the same color, to create a harmonious look. Dark tones work best when working with conflicting textures.
Use flower power
Well-placed flowers, trees and shrubs can really make the outside of a home look inviting. Not only does attractive landscaping invite buyers, it can increase the value of a home. Even without major landscaping, flowers can make a yard look colorful and pleasant. Plant them in garden beds, hang them from railings and porch ceilings, add flower boxes to window sills. There is no limit to the power of flowers.
At night, highlight garden features with spotlights and floodlights. Well-lit paths and entrances promote safety, discourage burglars and are an added feature to any home. A pretty wreath on the door and a welcome mat will finish things off.
Monday, September 26, 2005
Consider Curb Appeal
They say you can't judge a book by its cover, but when it comes to houses, the exterior can be just as important as the interior if you're selling or buying real estate. When selling, it is the outside, or the home's curb appeal that often determines whether the inside is ever seen. The first impression of how a house 'shows' from the street can tell a potential buyer a lot about what it may be like inside. Though we are blessed to be surrounded by areas such as Erin Mills and Oakville.
Even if the inside is the charming, structurally sound dream home they've been searching for, a buyer is not going to forget a cracked driveway, crooked shutters, overgrown grass and weedy flower beds.
That's why most realtors recommend a house not be seen for the first time at night. If you have no choice but to view homes at night, always be sure to drive past them during the daytime before making any final decisions.
For sellers, there are many ways to enhance the exterior of a home to achieve the curb appeal necessary to attract prospective buyers. Start by taking a close, objective look at your home from the curb. Be sure to view it from different angles. Ask friends and neighbors for their unbiased opinions. What are the appealing features? What's not so appealing? What can you do to improve its appearance?
Are the shrubs untrimmed? Are there broken doors and windows, loose screens and railings? Does the exterior trim, or entire surface, need a paint job?
Continued Next Week
Tuesday, July 12, 2005
How You Can Help Sell Your Home
If you're thinking of selling your home in Mississauga in the near future, any real estate agent will tell you there's much more to it than a "for sale" sign on your front lawn.
While a sign on your lawn is important, your Mississauga real estate agent of course, is another vital component in the process, and one of the first things he/she will discuss with you is a marketing strategy designed to give your home maximum exposure. This requires a lot of communication between you and your realtor and there are several things you can do to make sure your home gets the best possible exposure.
Be Candid with Your Realtor
Disclose everything you can about your property and the neighbourhood in general. They can choose how and when this information can be used for prospective purchasers. For example, there may be unique features about your home or the area you live in that you may take for granted, such as its close proximity to the commercial district or parks, but that characteristic could be a major selling point for your home.
This also goes for the drawbacks as well, so both you and your real estate agent can arrive at a reasonable list price. Your Mississauga real estate agent is likely to have some suggestions as to how to improve some of the problems.
Operating Costs
It's also a good idea to share information with your realtor regarding the costs of running your home on a monthly basis, as well as any recent repairs or upgrades that have been done to the home that could increase the value. These can be very effective marketing tools.
Open House
An open house can be another effective marketing tool. Some home-owners are averse to this idea, but it is worth discussing with your real estate agent if you really want your home to receive maximum exposure to interested buyers.
Clean and Clutter-Free
If you do decide to have an open house, it is imperative to make sure your home is uncluttered and clean, inside and out. Make an extra trip to the dump if need be to clear the excess garbage, or to clear the house of the unnecessary knick-knacks that you do not plan to move. A neat exterior is inviting and a clean and neat interior just makes good, plain marketing sense.
Flexibility on the Closing Date
Another factor in the successful marketing of a home is flexibility on the closing date. When purchasers and vendors can not agree on a closing date, real problems can arise. Again, it's important to work with your Mississauga real estate agent and listen to suggestions. This is how some deals are lost.
Stay Informed and Keep Your Real Estate Agent Informed
Your real estate agent should keep you informed providing you with a weekly update on how the marketing of your home is progressing. By the same token, if you have any questions or ideas, don't hesitate to share these with your real estate agent.
You'll find that a team effort, combined with a realistic approach will help you market your home much more effectively!
Source: Ontario Real Estate Association
Tuesday, June 14, 2005
Are You Considering Purchasing a Second Home in Mississauga?
The market conditions are definitely in your favour if you're thinking about buying a piece of real estate in Mississauga as an investment property. The resale housing market has seen a tremendous amount of activity from first-time buyers in the past year, so it's also a perfect time for existing homeowners to invest in secondary residential properties.
With the interest rates at a record-low and significantly lower Mississauga real estate prices, it's hard to go wrong - unless, of course you can't financially make the investment. Keep in mind that if you intend to rent out the second property, you'll also have to handle the maintenance costs and be prepared to deal with tenants.
Leverage
Investing in a second home is an attractive option because it gives you even more leverage than you have with your principal residence. Leverage is when a relatively small amount of your money controls a much larger asset - like a property.
The more leveraged you are, the greater the financial return on your down payment is if the value of your property increases. Not very many other investments can be purchased with such a small percentage of your own money.
Let's say you purchase a second property for $100,000, with a $15,000 down payment, and during the first year that you own it, the property increases by a value of three per cent for a $3,000 gain. As a result, the return on your down payment of $15,000 is 20 per cent - $3,000 divided by $15,000.
Other Investments
By comparison, let's say you were to purchase a term investment of $100,000 (in cash) for one year and it increased by $8,000 over the course of the first year. Since it cost you $100,000 in cash to buy it, the return on your investment is only eight per cent before taxes. This is how leveraging can be a powerful tool in making your money work for you.
Getting Financing
You should be aware that many lenders place non-owner occupied deals in the high-risk category and, in a lot of cases it will be hard to find lenders who will not finance rental units at all - or only finance them if they are insured. Obviously, lenders will want to know whether the property will carry itself, for instance, is the rent itself enough to cover the morgage payment.
Don't assume that a rental income of $750 per month will carry a mortgage payment of $750 per month. Only a percentage of the rent is used to pay the mortgage; and the rest has to cover expenses, maintenance, taxes and vacancy. It is best to know this information before getting into a situation like this so that your interests in the property are aligned, and you don't become disillusioned when it becomes so much more than expected.
Costs
The cost of obtaining a mortgage on a non-owner occupied property can be higher than the cost of obtaining a mortgage on an owner-occupied property (for legal and appraisal fees) where a multiple unit - such as a duplex or triplex is involved.
Rental property interest rates charges might also be higher because some lenders view these properties as being a higher risk. Renting your property is a great deal of responsibility as well because not only do you have to maintain your principal residence, you will have to maintain the new rental property, and you'll be responsible for finding tenants who you trust and feel comfortable with.
If you'd like more information about purchasing a second property,
please give me a call, (905) 828-3434.
Source: Ontario Real Estate Association
Monday, June 06, 2005
How do the Lenders Determine How Much They Will Lend?
Lenders look at your ability to pay both types of costs (the amount of money you'll need for the initial purchase and the ongoing costs of paying back your mortgage) when they assess your ability to buy, and from that, they determine how much money they will lend you. You can predetermine this amount before you ever visit a lender using the same formulas they do.
Several factors are used in judging your ability to handle a mortgage, including income, employment record and credit worthiness. One way you can estimate the price range you can afford is to look at the amount of money you have available for a down payment.
A "conventional mortgage" is the most common mortgage. Lenders will loan up to 75 per cent of the "appraised" value (estimated market value) of the property or the purchase price - whichever is lower in this type of arrangement. The remaining 25 per cent is the amount you will contribute as your down payment.
If you want to buy a home that has an appraised value of $200,000, a lender may loan you 75 per cent or $150,000 on a conventional mortgage when you contribute a down payment of $50,000.
If you plan to borrow funds through a conventional mortgage, this is how you can calculate your target:
Multiply the money you have available for a down payment by four. For example, if you have access to $40,000, you may be able to purchase a home with an appraised value of $160,000($40,000 x 4 = $160,000).
Assuming that you have sufficient income to make the payments on a $120,000 mortgage (75 per cent of $160,000). Reputable lenders will "qualify" borrowers before offering mortgages to ensure that they do not take on a debt load that is impossible to carry. Ideally, they suggest that your monthly housing expenses (mortgage payment and taxes), plus condo maintenance fee, if that is applicable to you, should not exceed 30% of your gross family income. This is your Gross Debt Service, or GDS.
In some cases, lenders may use another calculation called the Total Debt Service (TDS) ratio, which allows for no more than 40% of your gross family income to be used when calculating the amount you can afford to pay for your housing expenses. This 40% calculation may vary slightly among lenders.
By knowing exactly what you can afford, you can make your home purchase with confidence.
Thursday, June 02, 2005
Can You Afford Real Estate in Mississauga?
If you have been looking at homes for sale in Mississauga and are considering purchasing your first home, you probably have grand thoughts about what you would like - including spacious back yard, a fireplace in the bedroom with windows overlooking the lake, but it may be time to stand back and review those expectations.
You may want your dream home right away, however, if you look at it realistically, that dream home mortgage payments could end up costing you three times your monthly take-home salary, and the down payment could end up costing more than you earn in two years! And the best way to realistically look at this is to find the home solution that will meet as many of your needs as possible without breaking you financially.
A "starter home" is always an excellent option. There are many reasons for this, the most important of which is that it won't break the bank or stretch your budget to the breaking point, and this gets you into the market. A great way to get started in long-term real estate investment.
You should take a close look at your financial situation to see what you can afford. Most first-time home buyers lack the funds required to buy a home without assistance from either a bank or other financial institution. So, for most of us, buying our first home means combining our savings with money borrowed through a mortgage. This is the most common first step to getting yourself into your own home. In fact, borrowing money to purchase is desirable as well, often money is borrowed even on huge Mississauga real estate purchases.
There are two types of costs in buying a home:
Firstly, the amount of money you'll need for the initial purchase; this consists mainly of the down payment and other costs such as legal fees and taxes
And secondly, the ongoing costs of paying back your mortgage, along with monthly operating costs for utilities, maintenance, insurance and annual property taxes.
Costs of buying a home:
* Down payment
* Mortgage
* Legal fees
* Utilities
* Inspection fees
* Maintenance
* Taxes
* Insurance
* Property taxes
NEXT > How do the Lenders Determine How Much They Will Lend?
Source: Ontario Real Estate Association
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