Spring is Almost Here! Sell or Buy first?

Spring is only a few short weeks away and not only does this typically mean warmer weather, but a busier real estate market. With winter almost behind us, many home sellers and buyers will be thinking about making a move. Real estate signs should start to pop up all over the place. The inventory of homes as been very low for quite some time around the Markham/Stouffville area and as of late, many homes have been selling over their list price in multiple offers.

There are already plenty of buyers out there and if you’ve been slowly getting your house ready to put on the market, sooner is better. There are never any guarantees but typically, spring means more homes on the market which means more competition if you’re selling. Now would be a great time to list your home and try to get an extended closing date so that you can shop for your next home with more inventory to choose from.

Selling first definitely scares some people who think who think they might find themselves homeless, but unless you are looking for something that is very unique or you think you might be really picky, selling first is typically a smart choice.

When you sell first, you have a better chance of getting top dollar for your home because you’re not under any sort of time pressure. Now that doesn’t mean you can overprice your home either just to see what happens. I can tell you right now what will happen…..nothing. But let’s say you buy a house first. You took your time looking around and finally found “the one” and you buy it with a 60 day closing. 30 days to 90 days is typical. Now you have to turn around and get your home on the market as soon as possible and make sure it sells quick.

Hopefully, you’ve already prepared your home for the market otherwise you’ll be wasting valuable time. Let’s say your home is ready for sale in a week. What happens if it doesn’t sell in the first month? You’ll probably feel a lot of pressure to reduce the price to stimulate more showings. Price reductions would usually have to be a minimum of $10,000 to stimulate any action. Also, you’ll have to consider how long you could possibly own two homes for.

Now the real estate market in Markham, Stouffville, Unionville and surrounding areas has generally been pretty good but that can always change. But if you put the proper time and effort into preparing your home for sale, preferably with the help of a professional home stager, also hire an agent who will properly market your home and if you’re realistic about your home’s value, then you should have no problems at all.

What’s more important is knowing the difference, the risks and the benefits of when to sell or buy. There are always a lot of factors, many more than I’ve just mentioned, and everybody’s situation is unique and should be dealt with on a individual basis, but hopefully my advice can steer you in the right direction towards making a great decision.

Interest Rates Hit Record Low

Thinking about buying a house in Markham/Stouffville?  If you said “yes,” then I suggest you get yourself a pre-approval NOW.  Interest rates have just dropped and are lower than they’ve ever been.  You can now get a 4 or 5 year fixed mortgage for 2.99% which is almost like free money! Many experts predict that rates will stay low throughout the next near and likely begin a slow climb next year.

In terms of house prices, we’ve all witnessed huge price increases over the last couple of years.  In Markham, the average price of a home increased by 6.7% in 2010 and by 5.6% in 2011.  What can we expect of future home prices in Markham?  Well, you should still expect home prices to rise, but likely by a smaller amount.  3-4% is what many experts are predicting.

If you’ve been waiting for prices in Markham/Stouffville to drop…then you might have to wait a really really long time before that happens.  We can definitely expect some “cooling” in the market this year, but prices will still rise.  A slightly more balanced market combined with ultra low borrowing costs should make for an ideal time to buy your first home or upgrade to a larger home.

For a more in-depth analysis of the market, please watch the “long term outlook” video and feel free to contact me with any of your questions.

How Does Home Staging Increase Home Value?

Home staging is a growing real estate trend that prepares a home or condominium for sale in a manner that maximizes its appeal. This process has proven its value time and again, as staged homes usually sell more quickly, and at a higher price,than non-staged homes. Your real estate agent is well aware whom to call if a particular listing is lackluster.

How do stagers work their magic? They teach sellers to think of their home as a marketable commodity. The key is to make your home as generically appealing to as many potential purchasers as possible by helping them to imagine themselves living there.

In the same way that a personal makeover does, the key is to emphasize the positive and minimize the negative aspects. Staging is popular because it takes very little time and has proven to be extremely cost effective.

Very often, a real estate agent will suggest staging a home, because they know exactly what most buyers seek. No, you don’t need a pool or a Viking stove. To put prospects in a buying mood, your house or condominium must be as shipshape as a model home-or close to it.

Curb appeal is all-important. If a buyer sees unattractive piles of newspapers on the porch as they drive up, they may not even get out of their car. Buyers get tired of trooping from listing to listing, and seek a home that they can easily visualize themselves living in.

Many stagers claim that they can obtain a premium price for almost any house. It’s just a matter of motivating prospects with a few simple steps. The major attributes of effectively staged homes are:

• Scrupulously clean and odor free everywhere. Hire a cleaning service to power wash your front steps, front door, windows and everything that creates a first impression.  Air the place out daily. Paint your rooms with a neutral palette that   looks expensive. Don’t forget the front door.

• In good repair. The little things do matter. Leaky faucets won’t sell your house!

• Uncluttered, including outdoors, by pruning and eliminating excess greenery. Edit ruthlessly, removing bedroom and living room furniture and kitchen tables. Consider renting a few modern (small-scale) pieces. Remove paper clutter, plus any knick-knacks smaller than a basketball. Box up half of your book collection.

• Impersonal”no personal mementos on display. Store the bowling trophies and family photos out of sight.

• Bright, sunny and inviting. Switch to higher watt bulbs. Turn on all the lights, especially in hallways.

• A few tasteful touches, such as paintings and flowers. A stager can advise you.

• Don’t forget to have chocolate chip cookies baking when your showing begins.

What is the typical cost/return ratio of hiring a stager? The fee runs between $100-$150 per hour, and your pre-listing improvements could run another several thousand dollars. A recent Markham sale netted its owners almost 16% above their asking price in Canada’s booming and competitive market! Staged homes can sell as much as six times faster.

As part of his listing package, real estate agent Martin MacFarlane always includes a free staging consultation to maximize your home’s appeal and ensure your home sells quickly and for top dollar.  Whether you live in Markham, Stouffville, Unionville or any surrounding areas, be sure to give Martin a call before selling your home.

Know When It’s Time To Renovate

July 22, 2011 — Living in Toronto and renovating homes seem to go hand in hand. One of the major ways we build equity in our homes is by adding a new bathroom, kitchen or family room. Families grow, space must be maximized, and keeping parents close to work and children in their favourite schools often means, “Honey, It is time to renovate…again!”

Buying a fixer-upper can be a great way to get into a desirable neighbourhood at an affordable cost. It’s important to recognize though, that all renovations involve some inconvenience and a lot of elbow grease. While you’re rolling up your sleeves, it’s wise to maximize your efforts, go green, and remember that what may no longer suit your lifestyle, might be of use to someone else.

Renovating Benefits Others as Well!

A great way to renovate for you while supporting a charitable cause is to consider your local Habitat for Humanity ReStore. This building supply store accepts and resells quality new and used building materials. Funds support Habitat’s building programs while reducing the amount of used materials that are headed for overflowing landfills. Check ReStores out online at http://www.habitat.ca/en/community/restores/location.

Regardless of the upgrades you undertake, keep in mind that you can reduce the amount of waste you generate by donating or recycling construction materials. Certainly don’t dismiss the old for the new, if there are items to be reused, refurbishing them can add greater character to your home.

If you are looking for some great tubs and sinks you may have to go no further than your current bathrooms and kitchens. Techniques for resurfacing and countertops made of more recent materials like Caesar Stone, recycled glass, concrete, steel, stones, and the myriad of tiles will give you lots of options for upgrading the look without replacing the whole bathroom or kitchen.

Paint and paint techniques can change the look of a kitchen in a few afternoons, save you money and improve your investment: The Appraisal Institute of Canada says that upgrading kitchens and bathrooms is a smart choice, potentially offering a 75 to 100 per cent return.

Greening your Renovations!

Energy efficient lighting, appliances, faucets, toilets and showerheads are a few of the options for increasing the green factor in these two essential rooms and you can watch your monthly expenses drop.

When it comes to flooring, cork and bamboo are among the greenest options, as they are derived from renewable resources. While bamboo is also an excellent choice for cabinets, wood that is certified by the Forest Stewardship Council of Canada is another responsible option.

Visit the Appraisal Institute of Canada’s RENOVA, an interactive web-based guide to the value of home improvements. RENOVA is designed to give consumers a better idea of the return on investment they can expect for a variety of home improvements.

Household drafts will increase your heating bills and make those lovely spacious rooms an expensive proposition in our colder months. Window and door replacement may offer a more limited return of 50 to 75 per cent, but if your existing units are broken or have been installed for fashion rather than performance, this upgrade should take priority.

When purchasing windows, look for low-E argon-filled units with the Energy Star symbol to achieve the highest thermal efficiency. Note: if you wonder how old your thermo pane windows are, most are stamped with the year and month they were made on the metal piece between the panes of glass.

Similarly, replacing an aging roof may only offer a small return but it’s an upgrade that should not be deferred due to the potential for water damage. Fortunately, roof shingles made from a variety of recycled materials are widely available and sometimes the life expectancy of your new roof is worth paying the extra costs. Housing is a long term investment.

Heating systems can offer a 50 to 75 per cent return, while central air conditioning can deliver 25 to 75 per cent on your investment, but given the extreme temperatures of our climate, these are also wise investments, particularly when you choose models with the Energy Star symbol. We replaced our workable 60 percent efficiency furnace with a high efficiency furnace that, with our new windows and doors keeps us toasty all winter.

While decorating choices may be subject to taste, you’ll find that when it’s time to move again, energy efficient, money-saving upgrades have universal appeal. Renovating can be helpful to you, others, and reduce your carbon footprint all at the same time. Enjoy!

For Greening, Renovating or finding the right home, talk to a Greater Toronto REALTOR® and visit www.TorontoRealEstateBoard.com for neighbourhood profiles, open house listings, market updates and more.

Richard Silver is President of the Toronto Real Estate Board, a professional association that represents 31,000 REALTORS® in the Greater Toronto Area.

Housing Market Charts for April 2011

Housing Market Charts for March 2011

TREB Housing Market Charts for February 2011