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'The World Of Real Estate' Category

Buying A Home In Wasaga Beach? Don’t Let Emotions Rule The Negotiations

10 points to remember when buying a home in Wasaga Beach

You have seen the perfect house in Wasaga Beach and know what price makes sense.Then you decide to put in an offer and your competitive instincts kick in.

I often hear the term “win-win” relating to a house purchase. The buyer and seller are both happy with the deal. But too often it is all about “winning.” A buyer wants to beat the seller into giving the lowest price possible. However there’s a competing bid and the buyer offers way more than planned  just to win the deal.

OR the seller wants to have the “last word” and does not accept a reasonable offer. He or she must have their figure be the final one.

Remembering these points will help during the negotiation:

1. Focus on making the best of the situation. Do not concentrate on “winning”.
2. Solve a problem for the buyer or seller. Why are they buying or selling.
3. Know what price range you are comfortable with and stick to it. If that price is on the table and all other considerations are acceptable don’t try to squeeze and extra one or two thousand dollars out of the deal.
4. It’s not all about the price. A deal can work for both sides because of a quick or long closing, chattels included etc.
5. Do not be ruled by emotions. Be flexible.
6. There is always another house for sale or buyer around the corner. When you realise there are other options apart from this one deal then it is easier to be less emotional or feel backed in to a corner.
7. Provide options for the buyer or seller to make the offer more acceptable. A higher price but a quicker closing or vice versa.
8. Make sure the Realtor® representing you very simply explains the offer or counter offer. It is easier to say yes when there is no confusion about what is being offered.
9. Following on from the above point make sure “WHY” the offer has been made. For example it can be as simple as this price works for us because of the financing we have available or we can accept a price with this closing date as it saves us a mortgage payment.
10. The negotiation is about the result not about winning or losing.

Is Canada’s Housing Rebound Forming A Bubble?

Excellent article by Jim Adair at RealtyTimes

Canadians are a cautious people, so it isn’t surprising that after resale homes posted an astonishing rebound of more than 60 per cent since January, leading the country’s economic recovery, some analysts started looking for a dark cloud – or more specifically, a bubble.

Extremely low interest rates and improving consumer confidence have pushed Canadian sales and house prices higher in 2009 than anyone thought possible. The Canadian Real Estate Association recently revised its forecast upwards, and now predicts sales will hit 460,200 – about the same level as in 2004 but not quite as high as the record years of 2005 to 2007. Canada Mortgage and Housing Corp. CMHC) predicts that average house prices will rise by four per cent for single detached homes and two per cent for condo apartments by the end of this year.

In the fall of 2008, concerns about the economy caused a sharp drop in all real estate activity. While sales and prices have come back strongly, the number of listings on the market has not rebounded. In Toronto, there were 46 per cent fewer listings on the market in October 2009 than at this time last year. The shortage of listings is pushing prices up and producing multiple offers in many neighbourhoods.

Most analysts believe the pace of sales and price increases that we’ve seen during the last six months is not sustainable, and that the market will begin to stabilize in 2010. But is a full-fledged housing crash on the horizon?

Michael Gregory, senior economist with BMO Capital Markets, says no. “It’s not a bubble when a record sales rebound follows a massive sales collapse, owing to the vagaries of pent-up demand,” he says. “It’s not a bubble when prices accelerate because growing demand is butting up against shrinking supply. It’s not a bubble simply because relative prices are at record highs. Furthermore, given that mortgage credit growth is moderating, and new home and land prices remain subdued, the evidence on the ground argues against a housing bubble,” he says.

So if a first-time buyer decides that now is the time to jump into the market and buys the best house he can afford at the current low rates, is he going to be in trouble when it’s time to renew his mortgage and rates may have gone up? He may, if he stretches himself too thin.

But a new report by the Canadian Association of Accredited Mortgage Professionals (CAAMP) says most mortgage holders in Canada are in good financial shape.

The report says Canadian homeowners have about $1.98 trillion in home equity, or about 74 per cent of the total value of their homes.

“Among Canadian homeowners who have mortgages on their homes, most have considerable amounts of equity,” says the report. It says more than 80 per cent of mortgage holders have 20 per cent or more equity. Another 11 per cent have 10 to 19 per cent equity in their homes, and only nine per cent have less than 10 per cent equity.

“The estimate that one per cent of Canadian mortgage holders have negative equity shouldn’t be seen as a precise estimate, but rather as an indication that there are few Canadians in this situation (there may be 50,000 to 100,000),” says the report, which was written by economist Will Dunning. “While this is an uncomfortable situation for those involved, it is not a widespread issue.”

The report says for those who financed or renewed a mortgage during the last 12 months, the average mortgage rate is 4.42 per cent. Assuming that rates remain at current levels and borrowers make the same choices for type and term of mortgages, the report says at next renewals, 69 per cent of borrowers will see a reduction in their mortgage rates. Twenty-eight per cent would see increases and two per cent would have no change.

“It is quite possible that interest rates will increase during the coming two years and that future renewals will be rates higher than at present. However, this analysis indicates that most mortgage borrowers will be very able to cope with any changes in interest rates that occur at their next renewal.”

CMHC is forecasting that mortgage rates will remain stable for the remainder of this year, and then gradually increase in 2010 to a range of 3.50 to 4.25 per cent for a one-year posted rate, and 4.50 to six per cent for five-year posted mortgage rates.

Bob Dugan, CMHC’s chief economist, says the current rate of mortgage arrears in Canada stands at 0.42 per cent. “I think this rate will stabilize and then in 2010, move lower,” he said at a recent conference in Toronto. “In previous downturns there were rising mortgage rates and increased payment burdens (for homeowners). But today it’s quite the opposite – the Bank of Canada is cutting rates.”

One number in the CAAMP report that has garnered some attention is in the increase in long-amortization mortgages. “A small (but growing) minority of mortgage consumers (18 per cent) have amortization periods of more than 25 years – in the year earlier survey the share was lower at 16 per cent and two years ago it was nine per cent.”

To ensure that new homeowners are not in over their heads in a few years if rates are up at renewal time, they should build some leeway into their mortgage. By not borrowing to their limit, they can absorb future increases, and in the meantime they can use any extra funds to make lump sum payments or increase regular payments, thus lowering the principal on the mortgage.

Greater Toronto Area Home Sales Remain Strong in November

7,446 sales in November – slightly more than double the November 2008

“This year in the GTA home sales will be in line with the healthy levels experienced between 2004 and 2006,” said Toronto Real Estate Board President Tom Lebour.

This is very good news for sellers in Wasaga Beach. 2010 should see a very healthy real estate market. Personally I don’t want to see dramatic increases in prices just a nice steady climb.

Baby Boomers Are Are Looking For Homes For Sale In Wasaga Beach

Strong demand for homes for sale in Wasaga Beach from the over 50′s

“Baby Boomers”:

• Born between 1946 and 1965.
• Account for one third of the Canadian population.
• Represent about 45% of Canada’s wealth.
• Own $230 Billion in real estate assets.
• Have a net worth of $530 Billion.

Over one third of Canadians are over 50 and this demographic has a huge influence on the real estate market.

Many Boomers have retirement in mind. Others are just looking for a second home where they can spend quality time with their family and friends.

Wasaga Beach is a popular destination for retirees and those nearing retirement. But unlike previous generation the over 50s now want to live an active lifestyle. Georgian Bay offers this all 4 seasons of the year. Retirees are looking for access to activities, clubs, beaches, forests and rivers.

Are you thinking of putting your house on the market? Any sellers with homes for sale in Wasaga Beach need to be aware of what attracts the 50+ buyer. What location and features they look for. If your home ticks these boxes then make sure your Realtor highlights these features in the listing.

Not Only The Homes For Sale In Wasaga Beach Look Great At Christmas Time

It’s not just the homes for sale in Wasaga Beach that look their best during the holidays

Ben Roberts from Exit Pro Realty made the excellent observation that “many homes look their best at Christmas time.  Between the wreaths hung on the windows, lawn Santas, and the plethora of little twinkling lights, homes shine at Christmas time. ”

“Why not capture that essence for the future… perhaps when you decide to sell. ”

A very good idea. Maybe you’re thinking of listing your home  in the New Year? Take some “festive” photos. Most people love Christmas and some pictures with the the home decorated for the holidays will tug on buyers emotions when they look at them.

The 1st viewing is on line and decent photos are critical. Sellers can give themselves an advantage and get Santa to help them anytime of the year by showcasing their decorated home.

Take some photos of the interior and exterior.  These photos will show your home at it’s best.  Selling a property is all about hooking the buyer into feeling something about the home.  Get them to have an emotional reaction. Make sure your family isn’t in the photos… you want the buyers to have an emotional response that includes their family.

Check out this article for tips on taking Christmas photos.

There are a lot of homes for sale in Wasaga Beach. Any advantage you can get when listing your home is worth the effort and a little forethought now can pay dividends in the future.

Are You Selling Your House In Wasaga Beach? More Ways To Increase It’s Desirability Compared To Other Homes For Sale

If you are selling your house in Wasaga Beach, here are some more ways to help sell it faster without spending a fortune. Make it stand out compared to other homes for sale

Install a New Front Door
First impressions count and a new door certainly improves “curb appeal.” If you can’t afford a new door, a fresh coat of paint in an inviting color may be all you need.

Replace the Front Door Mat
A dirty door mat can be one of the first impressions people get of your home.

Power Wash the Exterior of Your Home
For less time and money, a good washing can make your home’s exterior look almost as good as a fresh coat of paint.

Repaint the Exterior
If washing the exterior of your home didn’t brighten it up as much as you’d hoped, consider a new paint job.

Power wash the Driveway, Walkways and Patio
Again think “curb appeal.”

Upgrade Landscaping or Clean Up Existing Landscaping
Flowers and other plants are a great way to brighten your home’s exterior. Use greenery in front of your house and/or along walkways to draw attention to your house.

What Do Sellers Want From Their Realtor®

Six areas that Sellers expect help from their Realtor®

1. Find a Buyer for Their Home
2. Sell Their Home Within a Specific Time Frame
3. Price Their Home Competitively
4. Find Ways to Fix Up Their Home to Sell It for More
5. Help With Paperwork and Inspections
6. Negotiate and Deal With Buyers

Baby Boomers Are Searching For Homes For Sale. What Do They Look For When Buying A House In Wasaga Beach?

A large proportion of people buying a house in Wasaga Beach are over 50.

What location features in homes for sale are desirable to the 50+ market?

• Proximity to health care.
• Reasonable distance to big cities.
• Access to golf and other recreational facilities.
• Water’s edge properties.
• Comfortable climate.
• Access to shopping.
• Low maintenance, high-security properties.
• Affordability.

When searching homes for sale what are the Boomers looking for?

• Open concept.
• Upgraded kitchens; ranges, hoods and fridges.
• Higher end fixtures; sinks, faucets and stoves.
• Higher end finishes; tiles, stone tops, lighting.
• Wood flooring; real not laminate.
• Social amenities; walking , swimming and clubs.
• Community events;
• Transportation; think of the Wasaga Beach Transit as a start.

Homes for sale in Wasaga Beach and other parts of the Georgian triangle tick a number of boxes.

Are You Selling Your House In Wasaga Beach? Increase It’s Desirability Compared To Other Homes For Sale

If you are selling your house in Wasaga Beach, here are some simple ways to help sell it faster without spending a fortune. Make it stand out compared to other homes for sale

Freshen Up the Walls
A few cans of paint can make a dramatic difference. Choose a neutral colours that will make the space look bigger and will appeal to a wide variety of potential buyers.

Install Crown Molding
Or “coving” as we called it in England. This involves some woodworking skill as well as the right tools, but is very inexpensive if you can do it yourself. Otherwise find a friend or hire a local handyman; there are a number here in Wasaga Beach.

Update Fixtures
Switch plates, outlet covers, curtain rods, light fixtures and doorknobs. Attractive metal switch plates and outlet covers can cost as little as $5 apiece but look much more expensive.  Again, make sure to choose items in colors and finishes that will appeal to a wide audience.

Install Ceiling Fans
Ceiling fans not only look good but can cut down on air conditioning costs and can also reduce heating costs by circulating warm air away from the ceiling. A basic fan costs about $50, and a nice one can be had for no more than a couple hundred dollars.

Improve Window Coverings
Consider wooden shutters, wooden blinds or nice curtains.

Reveal and Restore Hardwood Floors
This tip tends to be for older homes which have a wooden floor. Laminate can also make a room sparkle if the carpet is tired and is cheaper than thinking about installing hardwood floors.

New Tiles On The Bathroom Floor
Although repeating myself go for a neutral colour.

Update Bathroom Fixtures
New vanity units, sinks, lighting, shower heads, faucets or ceiling light fixtures will all help in attracting a buyer.

Paint or Stain Kitchen Cabinets
No need to buy new cabinets.White cabinets will brighten a room, don’t usually go out of style and are easy for future owners to repaint if they want something different.

Upgrade Cabinet Knobs and Drawer Handles
Surprisingly cabinet door knob can make your kitchen look cheap or dated. Updating this hardware can give your kitchen a face lift whether you redo your cabinets or not.

What Do Buyers Want From Their Realtor®

Six areas that buyers expect their Realtor® to help with

Please feel free to comment and add anymore you can think of.

1. Finding The Right Home to Purchase
2. Help With Price Negotiations
3. Help Them With Paperwork
4. Determine What Comparable Homes Were Selling For
5. Determine  How Much They Can Afford to Spend on a Home
6. Find and Arrange Financing