Are You MLS Obsessed?

Jared Chamberlain video blogs about ways you can tell if you are “MLS Obsessed”. If you have any of these ’symptoms’ there is a good chance that your “MLS Obsessed”.

http://www.ChamberlainGroup.ca

http://www.TheCalgaryRealEstateBlog.com

Vancouver Real Estate Market: What’s up

Recently, we could witness one of the Canadian records regarding long and fast market growth. The record breaker was nobody else than the Vancouver BC housing market, which managed to keep its growth for almost seven years in a row. Prices of homes grew to an almost double level between 2001 and 2007, whereas inflation didn’t get over 14%. Of course, affordability of houses in Vancouver, especially for first time buyers, was seriously affected by this combination of factors.

After the US real estate market got into problems, its Vancouver relative still worked fine for some time and managed to grow until the beginning of 2008. Anyhow, the market slowed down since it’s been influenced by the pressure of affordability demand, and the market freeze stayed on for a few months. At first, the average price stabilized, but later declined, and under the influence of the global economic crisis in the autumn 2008, the real estate market of Vancouver got into record-low values in January and February 2009. People were generally worried of the deep and long taking real estate crisis as the one in the USA.

If you believe the same, look at the statistics around – February 2009 was the month of rebound, not the beginning of stagnation! Since then, all real estate key indicators in Vancouver BC show positive trend. If we look at the sales numbers, we can see that the numbers in June 2009 reached almost 6 times higher than the level from February and almost twice higher than the results from summer 2008. The percent change in June 2009 was 75.6% compared to June 2008. The average prices were decreasing till December 2008. Then the price level remained about the same until March, when it started to increase again and keeps going up steadily until now. June prices already arrived to the level of October 2008.

Is this surprising? Not so much, if you look at the data carefully. Look at the new listings change graph. The rapid inflow of new houses on the market stopped many months ago in October 2008, after this month the overall inflow was falling.

It’s because one obvious advantage residential real estate can boast – people simply have to stay somewhere. We can stay without cars, hairdressers, or holidays, but we definitely need some shelter. Even though the demand may drop, it is unlikely for it to reach zero level, even for a short period of time. There are some guideliness that the supply side should follow. Real estate items often represent the most costly part of your personal property. You can hold it and refuse selling during the period of decreasing prices, on the other hand such approach stimulates new housing starts. Finally, buyers and sellers have to reach some point of consensus and the earlier they do, the better for both.

So what are the underlying reasons behind Canadian market’s quick recovery, regarding that the US market is still struggling with the crisis? Canada managed to prevent the most painful event – wave of foreclosures. Compared to the financial health of institutions and individual home owners in the USA, the Canadian ones are doing much better. We don’t have to be richer but for sure we have better predispositions to cope if any immediate financial trouble is to come. The most affected financial sector in USA was the subprime mortgages, which are much less often used in Canada. Now our economic fundamentals could be doing better of course, but they are still quite stable.

So what next development can we predict for the real estate market in Vancouver?  Sales and average prices are likely to increase steadily during the few following months. Nevertheless, the situation will calm down after reaching the pre-burst level, due to overall economic slowdown. Next year the interest rates should still be low and prices still under the recent peak, which will make houses very affordable and thus a wonderful opportunity especially for first time buyers!

Property Investment – How to Spot Bargain Properties

You can become rich with property investment if you know what you’re doing. Those who do their homework and seek the help of seasoned professionals can reap the rewards of their efforts. Those who don’t may be trained in this niche through trial and error, but that may mean a lot of time and money down the drain. There are 5 hot tips here to help you win in the real estate investing game. Later, you’ll find out how to get in touch with a leading company for property investment.

The first thing you need to do to be victorious in property investing is to locate a great buyers agent. Such an expert will help you find great properties and help you get the best prices for them too. A good buyers agent can teach you the ins and outs of real estate investing in the area you are interested. You’ll also find out from him/her how to settle on the properties that will meet your investment objectives. In property investment, buyers agents make the processes of finding, settling, and acquiring properties a tad easier.

Discovering great properties for real estate investment also entails the assistance of a property coach. These professionals have gone before you in buying investment properties and they will be the best source of information for every aspect of the process. A good property coach will move beyond the basics of finding the properties to financing and managing them as well. Property coaches will also provide tips on how you can spot properties with great promise and how to get them at the best rates possible. Select your property coach well so you get nothing but valuable advice.

When selecting a positive geared property, keep in mind the growth of the neighborhood and the value of the property. Really promising districts will not only offer great potential, but come with an established infrastructure to help limit risks. You can usually find these areas just beyond city borders, and they entail various types of properties. It is also a good idea to focus in on the lower end of the market, since it tends to be more resilient than median markets might. These items will help you find and buy the property that offers the best possible return on your time and money.

However, don’t try and cover too many suburbs at the same time. Concentrating on specific suburbs will help you know about the value of real estate in those areas faster. This technique will enable you to find properties at bargain rates before everybody else gets to know about them.

The biggest thing to look for is cash flow.  If your new property doesn’t give you a monthly return, it’s going to cost you more than just money in the long run.

TITLE INSURANCE VS REAL PROPERTY REPORTS

Title insurance is a valuable tool and very much worth discussing with a purchaser. As this chapter deals with the sale of real property, only issues as they affect a seller shall be mentioned. A title insurance policy guarantees (with specific limitations as stated in the policy) your title to the property including such things as, encroachment issues of improvements on the land, title fraud, and unknown breaches of local land use bylaws.
A Real Property Report will show if there are any easements for utilities or rights-of-way on the property, and whether fences, trees, buildings, gardens, embankments, driveways, walkways, swimming pools, house additions and other property improvements are actually on your property — or if anything encroaches from your neighbour’s property onto yours.
Since title insurance was introduced in Canada in the early 1990s, it has been marketed as an inexpensive replacement for a property survey. Arguably purchasers put themselves at risk by not getting an up-to-date survey, even if they have title insurance. This is why my advise to purchasers is to not accept title insurance in lieu of a current RPR with compliance. Even if there are no issues with the property, there is still the issue that the buyers will need to pay for title insurance every tie the refinance their home and will certainly need to pay for a new RPR when they sell the home.
Title insurance is used most of the time in the United States because of the continued poor condition of deed registry systems in many states and because of the inconsistent manner in which American surveyors are licensed and regulated from state to state.
In Alberta, the Torrens system allowed for the orderly opening of land for development, and has provided security of tenure through reliable documentation of land ownership and a provincial guarantee of an interest in land.
As a seller there is every incentive to using title insurance in lieu of a RPR if a new one is required as it has a lower cost and passes off any obligation if an unknown problem is discovered after possession. If a purchaser agrees to this change to the standard purchase contract, then it is imperative to make changes to the contract that covers off all the RPR issues as well as encroachments and land use sections. Without these further changes, if a defect is discovered (ie that a new garage sits on City property) then the seller may still be liable.

Weekly Market Update – April 28, 2009

Over the past week we have seen the number of sales and showings increase across the board.  Single Family home sales rose over the last week while Condo sales dipped.  Another great point, is that over the past couple months, since January 2009 to be exact, we have seen the Median price of Single Family homes stay very constant around $380,000.  The Condo Median prices however have had a bigger ride ranging from $249,000 up to $260,000 since January 2009.

We should expect to see the listing count stay constant with the sales per week rising into the mid 500s as Spring season is now upon us.  As well, we should see the number of showings starting to rise per week as more buyers are starting to look more seriously.

BUYERS:

There are some great purchases out there right now.  With interests rate at amazing low’s, and home prices back to decent levels, this is your time to get into the market.

SELLERS:

In order to be successful in this market, you need to have a home that shows well and is priced well.  Don’t try to test the market in terms of price, as it could hurt you in the end.

When Your House Doesn’t Sell

Some houses sell as quickly as they are placed on the market. Others sit there languishing for months becoming not only harder to sell, but also, becoming harder to show. After all, the longer a house sits on the market, the harder it is to get rid of it. Houses pick up reputations like it or not.

Not only do the neighbors begin to realize that your home has been on the market for quite a while, but certainly so do the real estate agents. Even some of the potential home buyers might realize that your property has been for sale for quite some time now. Surely, something must be wrong with it. What is it about your home that is keeping it from being sold?

The Overpriced House

A house that is overpriced is not going to sell as quickly as other properties simply because a quick comparison of prices will show that it is overpriced. Real estate agents won’t even want to show it after a while, leaning toward properties that are more likely to sell. After all, they want to earn a living and trying to unload a property that is simply marked up too high is next to impossible.

If you price your home reasonably when you first put it up for sale, you are more likely to sell it quickly than if you wait. Once a home is visibly marked down with a “price reduced” label, every potential buyer is instantly aware that your house has been on the market for a while. They are going to know that you are not a person who is up to any more compromises. After all, you priced your home much higher than the market would bear.

The Dump or Poorly Maintained House

A house that is a real dump is not going to sell because it is a dump. The word “dump” can be used to describe a house that has a wide range of problems from dirty, in need of repairs, and unkempt to falling apart at the seams. Homeowners who do not take care of their houses while they are living in it risk the possibility of not being able to unload it when they want to do so.

A dump typically has more wrong with it though than a few “sadly in need of paint” walls and carpets that look like the entire world came tramping through after a walk through a swamp. A dump has structural problems that are real eyesores and that a few cosmetic strategies are not going to solve.

What good is a coat of paint on the front porch when the floor slats are clearly rotting out on the perimeters? What good is a new bush or two on the side of the house when clearly every tree in the back yard is dying from some type of disease? What good is allowing the buyers to keep the washer and dryer when the home is clearly infested with mice, cockroaches, and other vermin? And what good are a few dirty, but pretty, curtains when every window refuses to open and the screens are all missing?

Plus, a dump is simply one of those homes that you know you do not want to enter even when your real estate agent insists. It is one of those homes that clearly smells like animal urine as you approach it from the sidewalk. It not only has a fine coat of dust covering the window ledges or fireplace mantle, but it also has a fine layer of grime covering the walls, ceiling, and steps to the basement. It simply doesn’t matter how much potential it has. Would you want to live there?

However, if the homeowners clean it up, then it is no longer a dump and it might eventually sell. Then again, a dump in your eyes might not be the same as a dump in someone else’s eyes. After all, it is all a matter of perspective. Nonetheless, a house that was once a dump is always a dump in the eyes of the people who have already seen it, including the real estate agents.

Who Did You Say Is Selling Your House?

If you pick the wrong person to sell your home for you, you could be in even bigger trouble than you think. After all, if your brother-in-law is a real estate agent and you list your home with him, he is going to be sharing a bit more than the specs in the paperwork. Let’s face it, people like to share what they know without even realizing they are doing it. It is simply human nature to talk to those around us.

Before you know it, a conversation about the new roof leads to the fact that the house had some structural inconsistencies leading to the roof’s collapse. Gosh, would you want to live in a house like that? What else could be wrong with it? Or perhaps he will share the fact that the neighbors are real party hounds during the summer and your kids cannot get any sleep before 10 pm when the law reinforces the “peace and quiet” guidelines of the area.

How much harder is it to sell a home when every tiny negative aspect is laid out on the table for the potential buyers? Yes, the homeowners do have the responsibility to disclose certain things, but do they really have to tell the potential owners that the teenager down the block revs his car at 7 am in the morning every day or the neighbor’s cat likes to spray in your garden?

A real estate agent who knows these things is going to share these things without even realizing that he is doing it. It is simply normal conversation to share when someone else shares. In fact, he might even think he is being helpful to point out certain things. Let’s face it though, some things are better left unsaid.

Seeking the Best Sale Price for Your Fixer Upper Home

Buying a home that you can fix up and resell at a much higher price can certainly yield you worthwhile profits if you are aware of the market value of similar homes in the same area.

This can be difficult when you do not know what to look for. Below are a few tips you should follow when trying to determine your target price for your fixer upper home.

Initial Considerations Before Buying

It is important for any fixer upper that you purchase a home which needs only cosmetic repairs. Unless such work is your specialty, you do not want to deal with a house requiring major repairs that will cost in supplies and labor as much to fix up as buying a new home.

Small repairs can add a lot to the value and eye appeal, thus helping you to realize a profit much more quickly than if you need to replace roofs and plumbing damage.

A house that only needs cosmetic repairs – such as paint, fixtures, and new kitchen cabinets, for example – will take less time to fix up and often look much better to both the buyer and seller.

Maximizing Your Returns

By renovating the home, you have already taken the first step toward earning a profit. However pricing the home for resale can be the greater challenge.

You need to have a home that is almost ideal after renovations as well as having an attractive price to go along with it. Setting a target price for your home can be something of a gamble.

First, by the time you renovate the house, the real estate market may be changing for the worse. And second, the buyers who are willing to pay your price may not be looking to purchase a renovated home at the time you are selling.

However, by setting a price that is beneficial for both you and the buyer, you will most likely be able to sell quickly and make a tidy profit at the same time.

A Little Investigative Work

Simply by doing some basic research, you can determine your target price more easily than you might think. This investigation includes assessing not only the home, but the general location as well.

You want to know what types of people will be interested in your home, and whether you prefer to cater to families, young professionals, or singles. That will provide you a good indication about the price at which you need to sell the home.

Location is the number one factor that draws interested visitors and eventually sells a home. So the more appealing the location, the more you can ask for the house once it is remodeled.

Setting a price that will earn you maximum profits while simultaneously selling quickly can be a challenge, for sure. However if you follow these tips, you will find it easier to determine a terrific price that brings a smile to both you and the buyer.

When all is said and done, if you are wanting to buy a fixer upper to live in vs. a flip, it may be better to live in it for a while as a possible exit strategy as the markets are still a bit unsettled… Food for thought!

Don R. Campbell on CBC’s The Hour

Last week, Don Campbell was on CBC’s The Hour with George Stroumboulopoulos (say that 5 times…).  Don is the President of The Real Estate Investment Network, who walks investors through what is happening in the market place along with how to professionally purchase investment properties.

If you missed the show, below is a link to the 10 min video of Don and George.

—Don R. Campbell On CBC’s The Hour—

Don touches on some hot spots in Canada, how the US will effect Canada and other great subjects.  At the end of his time in this clip, he does talk about investing is a thing for the future, and not an immediate cha-ching cash in.  Flippers in the market are not flipping…

Housing Rebounds In The Cards?

5 Reasons Why House Stylizing Sells Homes

It doesn’t take a genius to know that the better a home looks the easier it is to sell. Then why do so many people try to sell their homes empty or in deplorable condition? It’s not usually because of lack of time and not always because of lack of funds. So is it lack of common sense or just laziness?

Home Staging expert and trainer, Barbara Jennings said “I think many people shut down when it comes to preparing their property for sale. The task feels overwhelming. They have emotionally set their minds and hearts on where they will live next and just don’t want to go to the trouble and expense to fix up the home to be sold.”

But here are 5 good reasons why every homeowner should pay attention to the principles of house staging, whether they hire a professional to stage their home or they do the work themselves.

1. Home Stylizing fixes the most glaring negatives in the house. No one wants to buy a house that looks as if it has been unkempt for many years. No one wants to pay for someone else’s mistakes or lack of attention.

2. Home Stylizing diminishes the defects in a house. Every house, no matter how well built, has defects of one kind or another. But even if it were perfect, it will not meet the needs and wants of every potential buyer that sees it. The key is in making sure that the defects are minimized, so it will appeal to the most buyers.

3. Home Stylizing accentuates the home’s attributes. Every home has a charm all its own but one may have to work at it to bring out that charm. Whether the house is old or relatively new, house staging can go a long way to dramatically enhancing the best features of the house.

4. Home Stylizing reaches buyers on an emotional level. It is a well known fact that buyers do not make offers unless and until they have an emotional connection with a property. But most people struggle with visualizing their furnishings in the home. That’s why proper house staging can make a dramatic statement because it helps them visualize living in the home and even suggests ideas for arrangements.

5. Home Stylizing brings the sizzle to the steak. While some people (mostly men) like seeing the shell of a house, women definitely respond more favorably to a well appointed, nicely decorated home. Once problems are fixed, house staging creates a cozy, comfortable feeling that helps potential buyers make a real, lasting connection.

We have on staff a professional Home Stylizer who will come to the listing appointment with me, and asses your home, clean and stylize your home with all listings that we take on.  This is all included in our listing agreements, when you list with The Chamberlain Group.

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