Jan
22
Buying A New Condo? Watch This!
Filed Under Buying, Special Reports | Leave a Comment
Great towers of glass and steel are going up in every big city in this country, and in many of the smaller ones too. If you’re looking to buy your first home, or if you’re looking to downsize, chances are good you’re looking at condos.
You may be surprised to learn that the beautiful rooms you see in the model suites are not necessarily like the ones you’ll live in once your building is complete. The den on your floor plans may become a walk-in closet by the time you move in. Your ceilings may turn out to be a foot or two lower than the ones you saw in the model suite when you decided to buy.
As Wendy Mesley reports, buying a condo is fraught with risk for you, the buyer. The developers? They’re pretty well protected and this is why it’s good to have a second set of eyes with you, when you view show suites.
If you are looking at purchasing a new condo in Calgary, or elsewhere for that matter, please give us a call, and we can help you out!
Till next time,
Jared and Rebecca Chamberlain
Jared@tcgroup.ca
Jan
22
The U.S Federal Reserve slashed their prime lending rate a massive 0.75% this morning in an unexpected surprise announcement, making the largest cut in 23 years. The U.S made their announcement one hour before the Bank of Canada announced their rate cut of 0.25%. The Globe and Mail reports the U.S did not give the Bank of Canada any notice of their surprising cut and by that time the official statement had been handed to journalists leaving the Bank of Canada’s hands tied. Immediately after the announcement TD Bank released their take on the situation and predicts the Bank of Canada dropping rates 0.50% in March to match the U.S and then a further 0.25% in April making Canadian Prime at 5.00% before the start of what could be a very busy spring for Real Estate in Canada.
With these recent developments in mind, a variable rate mortgage with a rate of 0.5%-0.6% below prime is looking very attractive. The possibility exists, come April, to have your rate sitting at 4.50% saving thousands of dollars on many mortgages. The U.S Federal Reserve has forced Canada’s hand and we should see very favorable interest rates over the course of the 2008 year. If you are thinking of refinancing, between now and March might be a very good time to do so. Any questions regarding rates or mortgages feel free to contact me with no obligation!
Until next time,
Joshua Taylor
Jan
18
The right price affects your bottom line
When you’re selling your home, the price you set is a critical factor in the return you’ll receive. That’s why you need a professional evaluation from an experienced REALTOR®. This person can provide you with an honest, and unbiased assessment of your home, based on several factors including:
- Market conditions
- Condition of your home
- Repairs or improvements
- Time frame
In real estate terms, market value is the price at which a particular house, in its current condition, will sell within 30 to 90 days, as well as what the potential buyer is willing to pay for this home under these same conditions.
If the price of your home is too high, several things could happen:
- Limits buyers. Potential buyers may not view your home, because it would be out of their buying range.
- Limits showings. Other salespeople may be less reluctant to view your home.
- Used as leverage. Other sellers may use your home to sell against homes that are better priced.
- Extended stay on the market. When a home is on the market too long, it may be perceived as defective. Buyers may wonder, “what’s wrong,” or “why hasn’t this sold?”
- Lower price. An overpriced home, still on the market beyond the average selling time, could lead a lower selling price. To sell it, you will have to reduce the price, sometimes, several times. In the end, you’ll probably get less than if it had been properly priced at the start.
We have known it for years – Well-kept homes, properly priced in the beginning always get you the fast sale for the best price! And that’s why you need a professional to assist you in the selling of your home.
Jared & Rebecca Chamberlain
www.ChamberlainGroup.ca
Jan
17
So you want to sell your home yourself?
You’ve decided to sell your home. The next question is: who is going to do the work? You ponder about choosing a real estate agent. You ponder about doing it yourself. Then you ponder again and again. Finally, you decide to do it yourself. After all, you’ll save money by doing it this way.
Before you begin, however, take some time to review the following list of items you’ll need to complete to ensure the successful sale of your home. Be sure you’re fully equipped to handle each of these areas before selling your home.
- Deciding to sell. You’ll need to conduct your own research regarding the current housing market, moving costs, consequences to your tax situation and your home equity.
- Preparing to sell. You may want to get a pre-sale inspection, to determine if any repairs should be made, and an appraisal to assess the value of your property.
- Set the price. The challenge of setting the right price is a balance between your desires to get the best price for your home without deterring buyers. You’ll need to consider such items as recent sales for comparable homes in your neighborhood, location, current market conditions, season, amenities, repairs, and extras like deck, pool, garage, etc.
- Prepare your home. You’ll want to present your home in the best possible light. Make needed repairs, remove the clutter, and make your home warm and inviting.
- Negotiate the deal. After reviewing all the factors associated with the price, you’ll want to determine, in advance the lowest price you’ll accept.
- Advertise your home. You’ll want to place and pay for advertising in newspapers, Internet and other places. Then you’ll field all questions, handle all open houses, and show your home to potential buyers.
- Close the sale. Other factors contribute to a successful closing including unsatisfactory home inspection, an appraisal that is to low to qualify for a mortgage, title problems and even a buyer with cold feet. You’ll need to process all the paperwork, usually, with the assistance of a lawyer.
Be prepared for the work
You can easily see that selling your home involves more than posting a “For Sale” sign on your lawn. There are many details to consider. There are also many aspects of the sale that you may not have considered. In addition, you’ll want to ask yourself some questions, to realistically assess the work involved:
- Do you have the necessary knowledge, patience and sales skills?
- Can you negotiate a successful outcome when an aggressive buyer presents a less-favorable offer?
- Can you accurately access the current market value of your home, from your research sources?
- Do you know about the marketplace conditions that affect the value of your home?
- Can you determine whether a buyer qualifies for a mortgage?
- Do you understand real estate regulations and can prepare a binding sales agreement? What about counter-offers?
- Will you give up your evenings and weekends to show your home to prospective buyers, many who may be “tire-kickers?”
- Do you know the best places to advertise? What about the costs?
- Did you know that prospective buyers and bargain hunters might want a price reduction because there is no REALTOR® involved?
- Do you understand the various types of mortgage financing available, and the effect they may have on you, the seller?
- Can you bring an objective opinion to the sale of your home, seeing it from a buyer’s prospective?
- Can you put your emotional attachments to your home aside, and realize that selling your home is also a business transaction?
- Can you handle the numerous details involved in the sale? Do you have the necessary forms and legal documents used in the selling of real estate?
Consider a professional REALTOR®
For most people, a home represents the largest financial asset they will ever have. But it’s more than dollars. It represents your family, your memories, your goals and your dreams. From the time you start thinking about selling your home, you’re presented with numerous choices, decisions and uncertainties:
Is selling my home myself the right thing to do?
Is now a good time to sell?
Will I get the right price?
Should I remodel the house before selling?
What if my home doesn’t sell?
All of these questions can seem overwhelming. Most of the errors made in the selling of homes relate to the following areas:
- Incorrect understanding about market conditions and pricing
- Relying on inappropriate advertising and marketing that does not generate buyers.
- Incorrect understanding of how the home buying and home selling processes work.
Before you sell your home yourself, why not consider the benefits of a professional real estate team.
I personally know many people who can sell their home on their own… But I have only met a few that really do it well, and actually save money by doing it. It’s the same as, if you were able to hang the drywall in your basement by yourself, and have a mudder and tapper come in after you, why wouldn’t you… you can save money. But if you don’t know how to properly hang drywall, you can really mess up how the walls will look afterwards. If you would like to sit down and have a meeting on selling your home, give us a call or contact us via email.
Jared & Rebecca Chamberlain
www.ChamberlainGroup.ca
Jan
16
Hello All,
I would like to introduce to you a great mortgage broker that I have been working with, who is going to be making regular posts here on The Calgary Real Estate Blog.com. His name is Joshua Taylor from Centum Mortgage. Josh is a very interesting gentleman, who brings some excellent insights into the mortgage and lending world. He recently sent me this post below to start off his soon to be extraordinary blogging career!
Welcome Josh!
————————————–
Hello everyone, I’m very excited to be apart of The Calgary Real Estate Blog.com’s panel of experts. So here we go…
It seems that the bank of Canada is going to usher in the New Year with a second consecutive rate cut in six weeks. Bloomberg reports that the majority of Canadian economists are on board with the expectation that rates will fall from 6.00% to 5.75% when the Bank of Canada meets on January 22, 2008. This seems like a natural move after the made their “unexpected” rate drop on December 4th in a bid to bolster growth. With the sudden slowdown in the US economy, Canada was forced to follow the American lead by lowering interest rates in December and is poised to make the first interest rate move in the New Year.
Merrill Lynch takes this initial rate drop a step further by predicting a 1.25% decrease over the course of 2008. David Wolf, a chief economist for Merrill Lynch, says he is predicting the drop because of weakened US demand combined with cooling inflation. How does this affect me and my mortgage? If the predictions are correct, and you are in an adjustable rate mortgage you could be in line for some low mortgage payments over the course of this year. David Wolf and Merrill Lynch are but one opinion over the long term and things could change but for January 22, 2008 we should expect to see a dip in interest rates once again.
Until Next Time,
Joshua Taylor
Jan
15
Is It A Bubble? Or Is It About To Burst?
Filed Under Real Estate General, Special Reports | 3 Comments
This is a great article from Macleans.ca, written by Jason Kirby in Dec. 2007, that talks about what is happening in the Alberta and Canadian Real Estate Marketplace… it’s a good read! It takes into perspective of what is truly happening, takes out thy hype, and looks at the fundamentals!
Enjoy!
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First-time buyers are wondering whether they’ll ever be able to afford their own place. Some wonder if they should buy now, or wait in hopes that prices will fall. Those who’ve already bought worry that they’ve paid too much — and will wind up overextended if interest rates jump — or that they’ll never be able to move up to something bigger. Even house-rich Canadians whose equity has soared in the frenzy fret that they can’t take advantage of their position — where could they afford to buy if they sold now? And what if you’re counting on your house to finance your retirement, and its value plummets? At the same time many fear the carnage in the U.S. housing market will make a collapse here inevitable. So with one eye on soaring prices here, and the other on the troubles south of the border, you can’t really blame Canadians for feeling like they’re living on the edge of a cliff.
Yet step back from the real estate listings for a moment and things start to take on a different hue. Yes, prices in Canada have risen dramatically in the last few years, but those gains are nothing compared to what’s been experienced in other countries, or even here, in years gone by. What’s more, thanks to continued low interest rates and new types of longer-term mortgages, housing affordability in some big cities remains decent compared to what we’ve seen in past booms. In fact, the evidence suggests that in Canada, if anything, we’re not at the top of the market and there’s still room for house prices to move higher in certain parts of the country.
There’s no question the housing market has been on a wild ride. The average Canadian family has seen the value of their home jump more than 10 per cent a year for three years in a row. Prices overall are up 60 per cent in the last five years. But national averages never tell the full story. While prices in cities like Ottawa and Montreal have grown slowly, house prices in Toronto are up about 86 per cent over the last decade to an average of $394,000, while the average home in Vancouver, at $570,000, has jumped 73 per cent since 2003 alone. In Oilberta, the average Calgary home has doubled in just four years to $432,000.
To buy at those prices, Canadians have had to pile on mounds of new debt. Between 2000 and 2006 the total amount of outstanding residential mortgages ballooned by 62 per cent to $694 billion, according to the Canada Mortgage and Housing Corporation, and many expect that figure will top $800 billion this year. It used to be said you couldn’t talk to a Vancouverite for more than five minutes before the topic of real estate came up. Now that applies to just about everybody.
But as Canada booms, America’s housing pain hangs over the party like a dark cloud. Across the U.S., house prices declined between the second and third quarters for the first time in 13 years. In specific markets in Michigan, Ohio, Florida and California, home prices fell as much as five per cent. There are some who predict — or is it pray? — the drop is just a brief pause before bidding wars erupt once again. But they are increasingly in the minority. Moody’s, the debt rating agency, predicts U.S. prices will fall by 15 per cent over the next two years as the market softens. Once-hot urban centres in California and Florida could even tank by more than 30 per cent. “In the United States, they basically went from double-digit price growth to an outright price correction in about six months,” says Craig Alexander, deputy chief economist at TD Bank. “That’s a classic bubble bursting.”
What’s driven things in the U.S. was a parlous mix of overheated financial markets, a culture of debt accumulation, and a heaping dose of pure speculation. The problems began a few years ago when Americans with poor credit and no cash for down payments were lured into the housing market by lenders offering subprime mortgages. Lenders had many tactics, but the most popular involved offering adjustable-rate mortgages with absurdly low initial payments. Many buyers jumped in, only to run into trouble once rates were cranked up. Borrowers eventually began to default on their mortgages. As many as two million Americans may lose their homes and pull the rug from beneath the housing market. As Mark Zandi, an economist at Moody’s, said recently: “This is the most severe housing recession since the post-World War II period.”
No one would dare claim the U.S. meltdown doesn’t pose at least some threat to the Canadian economy and, hence, house prices here. Our two economies are closely linked. If America falls into a deep recession, it could bring global economic growth to a standstill. But that’s by no means inevitable. Emerging markets are still strong, and that’s driven commodity prices. With its bounty of minerals and resources, Canada has seen record low unemployment. Even in Ontario, where manufacturing has been hard hit by the high loonie, the province has added jobs over the last year. The situation bodes well for continued strength in the housing market, assuming employment remains strong.
But the biggest difference behind the situation in Canada and the U.S. has to do with fundamental differences in the two markets. At the peak of the U.S. housing market, sketchy subprime loans accounted for more than 30 per cent of all American mortgages from 2004 to 2006. In Canada, they never made up more than five per cent of the mortgage business. That’s largely due to the buttoned-down style of Canadian financial firms and borrowers. But it’s also because Canada’s big banks control so much of the lending market. Absent the aggressive competition America’s financial services sector is famous for, there just never was the urge up here to pursue the riskiest slices of the market.
Instead, the main driver of our boom has been this country’s firmer economic fundamentals, say analysts. There are speculators in the market — there always are. But a tight labour market has led to rising incomes, allowing people who never thought of owning a home to claim a plot of land for their very own. “I can understand the concerns people have about the Canadian housing market,” says Alexander. “But I think what’s driven things here is fundamentally different so the risks are far less.” Adds real estate analyst Frank Clayton: “There is no bubble.”
Click Here to read the whole article!
Would love to hear your thoughts on this market place, as well as this article!
Regards,
Jared Chamberlain
www.ChamberlainGroup.ca
Jan
14
Here is another great home tip for you that you can use weekly, or even daily!
Baking Soda is very useful… But did you know…
Clean Your Produce
You can’t be too careful when it comes to food handeling. Wash fruits and vegetables in a pot of cold water with 2-3 tablespoons of baking soda. The baking soda will remove some of the imputities tap water leave behind. Or you can put a small amount of baking soda on a wet sponge or brush and scrub your produce. Give everything a thorough rinsing before serving.- Make your own Dishwashing Detergent
The dishwasher is fully loaded when you discover that you are out of your favorite powdered dishwashing detergent. What now? You can make your own… Mix 2 tablespoons of baking soda with 2 tablespoons borax. You may be so pleased with the results you might switch for good… - Deodorize Your Dishwasher
Eliminate odors inside your automatic dishwasr by sprinkling 1/2 cup baking soda on the bottom of the dishwasher etween loads. Or pour half a box of baking soda and run the empty machine through its rinse cycle.
I hope you find these tips helpful…
If you have any Real Estate needs, please contact us directly.
Regards,
Jared & Rebecca Chamberlain
www.ChamberlainGroup.ca
Email Us!
Article Source:”Extraordinary Uses for Ordinary Things” Readers Digest
Jan
14
How to sell your home fast for the best price
Buyers don’t see your home the same way you do. They are very discriminating about its condition, the neighborhood and the price. An average buyer will view between 15-20, ranking yours among all the lot.
With this in mind, here are some measures you can take to ensure your home presents well to a potential buyer, and garners you the best price, quickly.
Be clear about why you are selling
Knowing the whys of your move determines everything from setting the price, to allocating funds for repairs and improvements. Is the price you obtain more important than how long your home is on the market? Do you need to sell immediately? Each why requires a different strategy. At the same time, you don’t need to reveal your why to anyone. Something negative might be used as a bargaining tool at the negotiating table. If someone wants to know why you’re selling, politely respond that your housing needs have changed.
Conduct thorough research before setting a price
Establishing an offering price is an investment in your future. Find out what similar homes in your neighborhood have sold for in the 3-6 months. Also check out the prices of homes currently listed. The price you ask should be within the range of similar homes in the neighborhood. If it’s too high to too low, buyers will question the reasons for this discrepancy. Your home could stay on the market longer than you’d like. You may also have to adjust the price and wind up getting less than you hoped. You never want to be in a situation of “catching up” to the market.
Find a good real estate agent to represent your needs
A professional REALTOR® is your best bet. This person has the educational background, the industry and community connections to work in your best interests.
Maximize your home’s sales potential
First impressions are absolutely critical. The look, the feel and the care of your home elicit an emotional response. Even before they walk in your door, a prospective buyer will try to imagine himself living in your home. Just like a new outfit, buyers want to see if this home will “fit” their lifestyle. Clean everything until it sparkles. Pick up, organize, throwaway, scrub, scour, dust and disinfect. Be sure to complete all minor repairs. Buyers are especially keen on work that may need to be completed.
Ensure all areas of the contract are covered
It’s in your best interests to disclose everything you know about the property. Failure to disclose could result in costly delays, litigation or even cancellation. Most importantly, if a buyer knows about an item, he or she has no future recourse. Be sure you understand all terms, costs and responsibilities.
Stay in your home until closing
It may be harder to sell a vacant home. Furniture, drapes and all the assortment of daily activities go a long way to create the warmth and comfort of a home. To some buyers, an unoccupied home could be seen as forlorn, forgotten and not as appealing. You might have to reduce your price, depending upon the buyer. At the same time, you’re sending the message that you’ve found a new home, and you likely need to sell fast.
Stay out of the way during showings
When buyers view your home, gently remove yourself and allow buyers to feel at home. By pointing out features, improvements and decorating items, that are meaningful to you, or you’ve spent money on, you could be seen as adding pressure to the sale. Best to leave the showing to your REALTOR®.
Get pre-approval for your next mortgage
Prior to shopping for your new home, be smart and get pre-approval. This means you’ll have your financial matters in place, and you’re serious about making an offer. If you are in need of a great mortgage broker, please contact Joshua Taylor at Centum Mortgages. If you do contact Joshua, please let him know that Jared & Rebecca sent you, as he loves to give our clients priority.
Jared & Rebecca Chamberlain
www.ChamberlainGroup.ca
Jan
13
The Costs Associated With Selling
You’ve spent considerable time and money on home improvements to bring your home into “show” condition. You’ve taken the dog to the neighbors when your REALTOR® hosted open houses. You’re pleased that your REALTOR® has negotiated the best price on your behalf. The offer has been accepted and you’re set for your move. Congratulations! You’ve accomplished a major milestone in selling your home.
There are financial items you’ll want to consider upon the sale of your home. The buyer is typically responsible for these closing costs which include:
• legal/notarial fees for handling the sales transaction
• disbursements or out-of-pocket expenses incurred by the lawyer or notary
• property tax and utility adjustments
As the seller, you’ll also have some debts to discharge before you can access your funds, including:
•real estate commissions
• certificate of location, or survey
• legal and discharge fees
• outstanding adjustments owed to the buyer
• outstanding municipal/school taxes or public service
• assessments
• outstanding mortgage balance and any charges associated with discharging your mortgage early (if you are not transferring your mortgage to your new home, or the buyer is not assuming it)
As there are many fees and costs involved with selling a home, which can also vary from property to property, make sure you seek indapendant advice from any Real Estate Agents, Lawyers, Financial Consultants etc.
Jared & Rebecca Chamberlain
www.ChamberlainGroup.ca
Jan
11
RBC Economics Provincial Review - January 2008
Filed Under Real Estate General, Special Reports | Leave a Comment
Below is an excerpt from the following document released today from RBC Economics regarding the Alberta Provincial review…
Alberta — High oil prices help offset downsides to growth
Coming off a strong run this cycle, several trends in Alberta are now on a decelerating path as housing markets, consumer spending, fiscal surpluses and capital spending remain at elevated levels but have, nonetheless, come off their growth peaks. Higher royalties have had exactly the expected effect, with reduced, but still high, levels of capital spending and hiring plans to help cool off runaway cost escalation. Scaled-back capital spending plans at still enormous volumes are a problem that most other provinces wish they had. High oil prices, however, should help to cushion the impact, such that Alberta’s growth will stay well above the Canadian average even though it is past its peak.
The easy money in housing markets is now gone. Stressed affordability conditions have priced many prospective homeowners out of the market. The pace of house price gains is rapidly cooling, and the ratio of sales to new listings is pointing toward retreating markets. Consumer spending has been well supported by strong wage growth. The key supports for a strong spending profile remain intact, but growth in spending should slow as income gains moderate amidst an overall slower economic expansion profile. Fiscal surpluses surprised to the upside this year, largely due to higher income tax and oil prices. However, natural gas accounts for roughly 50% of resource revenue, and natural gas prices and royalties are well below late 2005 peaks. Weaker prices and cost escalations have driven sharply slower drilling activity.
Jared & Rebecca Chamberlain
www.ChamberlainGroup.ca
The Chamberlain Group
