The Real Estate Market Has Changed …

Remember not so long ago, when you could make your fortune in real estate.  It was nothing then to buy a home, wait a short while, and then sell it at a tidy profit. And then do it all over again. Well, as you probably know, times have changed.  With the market how it is right now, home prices are still below what they were at their peak.  Buyers are far more discriminating, and a large percentage of the homes listed for sale never sell.  It’s more critical than ever to learn what you need to know to avoid costly seller mistakes in order to sell your home fast and for the most amount of money.

The 7 Deadly Mistakes Most Home sellers Make

1. Failing to analyze why they are selling.
2. Not preparing their home for the buyer’s eye.
3. Pricing their homes incorrectly
4. Selling too hard during showings.
5. Signing a long-term listing agreement without written performance guarantee.
6. Making it difficult for buyers to get information on their homes.
7. Failing to obtain a pre-approved mortgage for one’s next home.

The 9 Step System to Get Your Home Sold Fast and For Top Dollar

1.       Know why you’re selling, and keep it to yourself.

The reasons behind your decision to sell affect everything from setting a price to deciding how much time and money to invest in getting your home ready for sale.  What’s more important to you:  the money you walk away with, the length of time your property is on the market or both?  Different goals will dictate different strategies.

However, don’t reveal your motivation to anyone else or they may use it against you at the negotiating table.  When asked, simply say that your housing needs have changed.

2.     Do your homework before setting a price.

Settling on an offering price shouldn’t be done lightly.  Once you’ve set your price, you’ve told buyers the absolute maximum they have to pay for your home, but pricing too high is as dangerous as pricing too low.  Remember that the average buyer is looking at 15 – 20 homes at the same time they are considering yours.  This means that they have a basis of comparison, and if your home doesn’t compare favorably with others in the price range you’ve set, you won’t be taken seriously by prospects or agents.  As a result, your home will sit on the market for a long time and, knowing this; new buyers on the market will think there must be something wrong with your home.

3.     More homework.

(In fact, your agent should do this for you).  Find out what homes in your own and similar neighborhoods have sold for in the past 6 – 12 months, and research what current homes are listed for.  That’s certainly how prospective buyers will assess the worth of your home.

4.     Find a good real estate agent to represent your needs.

Nearly three-quarter of homeowners claim that they wouldn’t use the same realtor who sold their last home.  Dissatisfaction boils down to poor communication which results in not enough feedback, lower pricing and strained relations.

5.     Maximize your home’s sales potential.

Each year, corporate North America spends billions on product and packaging design.  Appearance is critical, and it would be foolish to ignore this when selling your home.

You may not be able to change your home’s location or floor plan, but you can do a lot to improve its appearance.  The look and feel of your home generates a greater emotional response than any other factor.  Before showings clean like you’ve never cleaned before.  Pick up, straighten, unclutter, scrub, scour and dust.  Fix everything, no matter how insignificant it may appear.  Present your home to get a “WOW” response from prospective buyers. 

Allow the buyers to imagine themselves living in your home.  The decision to buy a home is based on emotion, not logic.  Prospective buyers want to try on your home just like they would a new set of clothes.  If you follow them around pointing out improvements or if your décor is so different that it’s difficult for a buyer to strip it away in his or her mind, you make it difficult for them to feel comfortable enough to imagine themselves an owner.

6.       Make it easy for prospects to get information on your home.

You may be surprised to know that some marketing tools that most agents use to sell homes (eg. traditional open houses) are actually not very effective.  In fact only 1% of homes are sold at an open house. 

Furthermore, the prospects calling for information on your home, value their time as much as you do.  The last thing they want to be subjected to is either a game of telephone tag with an agent, or an unwanted sales pitch.  Make sure the ads your agent places for your home are attached to a 24 hour pre-recorded hotline with a specific ID# for you home which gives buyers access to detailed information about your property day or night, 7 days a week, without having to talk to anyone.  It’s been proven that 3 times as many buyers call for information on your home under this system.  And remember, the more buyers you have competing for your home the better, because it sets up an auction-like atmosphere that puts you in the driver’s seat.

7.     Know your buyer.

In the negotiation process, your objective is to control the pace and set the duration.  What is your buyer’s motivation?  Does she/he need to move quickly?  Does she/he have enough money to pay you your asking price?  Knowing this information gives you the upper hand in the negotiation because you know how far you can push to get what you want.

8.     Make sure the contract is complete.

For your part as a seller, make sure you disclose everything.  Smart sellers proactively go above and beyond legal requirements to disclose all known defects to their buyers in writing.  If  the buyer knows about a problem, she/he can’t come back with a lawsuit later on. 

Make sure all terms, costs and responsibilities are spelled out in the contact of sale, and resist the temptation to diverge from the contract.  For example, if the buyer requests a move-in prior to closing, just say no.  Now is not the time to take any chances of the deal falling through.

9.     Don’t move out before you sell.

Studies have shown that it is more difficult to sell a home that is vacant because it looks forlorn, forgotten, simply not appealing.  It could even cost you thousands.  If you move, you’re also telling buyers that you have a new home and are probably highly motivated to sell fast.  This, of course, will give them the advantage at the negotiating table.

Don’t Pay Another Cent in Rent To Your Landlord…

It’s a dream we all have – to own our own home and stop paying rent. But if you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours. How could it when you’re not even permitted to bang in a nail or two without a hassle. You feel like you’re stuck in the renter’s rut with no way of rising up out of it and owning your own home.

Don’t Feel Trapped Anymore

It doesn’t matter how long you’ve been renting, or how insurmountable your financial situation may seem. The truth is, there are some little known facts that can help you get over the hump, and transfer your status from renter to homeowner. With this information, you will begin to see how you really can:

• Save for a down payment
• Stop lining your landlord’s pockets, and
• Stop wasting thousands of dollars on rent.

6 Little Known Facts That Can Help You Buy Your First Home

The problem that most renters face isn’t your ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulation enough capital to make a down payment on something more permanent.

But saving for this lump sum doesn’t have to be as difficult as you might think. Consider the following 6 important points:

1.      You can buy a home with much less down than you think.

There are some local or federal government programs (such as 1^st time buyer programs) to help people get into the housing market. You can qualify as a first time buyer even if your spouse has owned a home before as long as your name was not registered. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your options.

2.      You may be able to get your lender to help you with your down payment and closing costs.

Even if you do not have enough cash for a down payment, if you are debt free, and own an asset free and clear (such as a car for example), your lending institution may be able to lend you the down payment for your home by securing it against this asset.

3.      You may be able to find a seller to help you buy and finance your home.

Some sellers may be willing to hold a second mortgage for you as a “seller tack-back”. In this case, the seller becomes your lending institution. Instead of paying this seller a lump sum full amount for his or her home, you would pay monthly mortgage installments.

 4.       You may be able to create a cash down payment without actually going into debt.

By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a down payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end.

5.       You can buy a home even if you have problems with your credit rating.

If you can come up with more than the minimum down payment, or can secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a seller take-back mortgage could also help you in this situation.

6.      You can, and should, get preapproved for a home loan before you go looking for a home.

Preapproval is easy, and can give you complete peace of mind when shopping for your home. Mortgage experts can obtain written preapproval for you at no cost and no obligation, and it can all be done quite easily over the phone. More than just a verbal approval from your lending institution, a written preapproval is as good as money in the bank. It entails a completed credit application, and a certificate which guarantees you a mortgage to the specified level when you find the home you’re looking for.

Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make the difference between obtaining a mortgage and being stuck in the renter’s rut forever. Typically there is no cost or obligation to enquire.

There are many important issues you should be aware of that affect you as a renter. Why on earth would you continue to lose thousands by throwing it away on rent when with your agent you could take a few minutes to discuss your specific needs so that you can stop renting and start owning?

This conversation costs you nothing. And, of course, you shouldn’t have to feel obligated to buy a home at the time you review this. But by taking the time to explore your options and learn about the ways you can afford to buy a home, think how prepared and relaxed you’ll be when you are ready to make this important step.

From the day that your house goes on the market, to the day it closes, your property needs to be in “selling shape”. Whether you decide to hire a professional home stager or do it yourself, you and your family will have to cope with some inconveniences and make the transition to thinking about your house as a property and not  a home. This can be frustrating if you’re still living in your house, but the effort is well worth it. 

According to the Real Estate Staging Association, a properly staged home can:

• Increase a property’s perceived value

• Help a listing’s competitiveness in a down real estate market

• Drastically reduce the Day’s on Market (DOM) of a property

In fact, their 2013 study on both vacant and occupied homes showed that staged properties spent 72% less time on the market than non-staged properties.

So how can we work together to get your property into selling shape? Let’s just follow some simple rules.

First. Fix it.

Anything that is in your house that is in despair and can be easily fixed should be addressed before the home goes up for sale. We’ll want to pay particular attention to the front exterior and the most important rooms in the house: The master bedroom, the kitchen, and the living room. 

Having a property that looks well maintained is a huge advantage with motivated buyers.

Next, Clean it.

Clean, clean, clean. From the inside out, a clean listing is a happy listing. This principle is about general cleanliness, but it also requires you to de-clutter your house as much as possible.

If it’s smaller than a grapefruit, it needs to be put away. Get rid of, or pack away anything that isn’t essential. Everything else that is small but cannot be packed should be put away in a drawer or cabinet during showing appointments. This also applies to things that are accumulated on a regular basis like the mail on your dirty clothes.

And remember, it’s not good enough to just put things away potential buyers will and do open closets and drawers throughout the house when they’re looking at your listing. Be sure to keep your personal items that you do not want on display in drawers that are clearly your personal furniture. The more organized you can be, the better.

Lastly, Stage it.

Making your house appear as attractive as possible is largely about allowing potential buyers the opportunity to imagine their lives in your property.

Home staging is essentially the process of using design principles and tricks that emphasize space. Creating the appearance of openness and space is key to getting your property sold. Remember, you’re not selling your stuff!

Furniture

Great staging, either DIY or by a professional, includes choosing furniture that shows the room in its best light. Minimize the amount of furniture you have in each room. If it’s staying in the house, it needs to be in good shape and be visually appealing.

Décor

It’s time to remove anything that could be considered distracting decoration from your home. Importantly, this includes any personal items like family photos or mementos. Any décor that does stay up visible in your home should be neutral as possible.

If you have hanging mirrors in the house, these can be positioned to emphasize and reflect key areas in the home like a nice sunny window.

Beware of Odors

It’s not just stinky stuff you need to pay attention to. There are obvious problem points in a home that can produce smells like the garbage cans and the disposal… but you should consider any strong smell a bad one. Don’t rely on potpourri or air fresheners to mask unpleasant odors. These can be just as offensive to some buyers, instead, be sure to open your windows when possible to keep fresh air circulating in the house.

The only exception to the strong smells rule is chocolate. Baking sweet chocolate treats before showing appointments or open houses can help potential buyers feel at home when viewing your house.

A Good Rule to Follow: Limit the number of items on top of any surface.

Melfort Stats - How is our market really doing? A long, but interesting read.  

Sales in Melfort were down 50.0%, going from 6 in April 2019 to 3 in April 2020, and down 65.0% in the overall region, going from 20 to 7. In Melfort, sales were 58.3% below the 5-year average (and 65.1% below the 10-year average), while in the larger region, sales were 59.8% below the 5-year average (and 66.0% below the 10-year average). Year-to-Date (YTD) sales in Melfort fell 54.5% over last year, going from 22 to 10, while YTD sales in the larger region also fell 32.3%, going from 62 to 42.

Sales volume was down 64.9% in the city, going from $1.1M to $0.4M in 2020 (69.9% below the 5-year average, and 75.8% below the 10-year average). YTD sales volume in the city was $2.0M, a decrease of 54.0% from last year. In the region, sales volume was down 69.2%, going from $2.6M to $0.8M (72.7% below the 5-year average and 76.6% below the 10-year average). YTD sales volume also decreased 29.8% in the region, falling from $8.9M in 2019 to $6.3M in 2020.

The number of new listings in April 2020 fell significantly from the number last year. In Melfort, new listings fell 50.0%, going from 16 to 8 (41.2% below the 5-year average and 52.9% below the 10-year average), while in the region the situation was even worse, with new listings falling 61.1% from 72 last year to 28 this year. Active listings also rose 1.8% in Melfort (up from 56 to 57) and 14.3% in the region (down from 258 to 221). The sales to listing ratio was 37.5% in Melfort and 25.0% in the region suggesting that the market favours sellers in the area.

Homes in Melfort stayed on the market an average of 118 days in April—down 24.8% from 157 days last year (but still above the 5-year average of 93 days and the 10-year average of 91). Homes in the region stayed on the market somewhat longer than homes in the city at 130 days on average in 2020, but also down from an average of 164 days last year.

Median home prices in Melfort went from $222,850 to $130,000 (a decrease of 41.7%) and were approximately 28.6% below the 5-year and 30.1% below the 10-year average median price. Median home prices in the region also fell 11.9%, going from $115,750 to $102,000 which is 34.0% below the 5-year and 34.3% below the 10-year average median price.

The Canadian Mortgage and Housing Corporation released a Housing Market Outlook (HMO) providing the forward-looking analysis of Canada's housing markets. Published annually, this helps anticipate emerging trends in Canada's new home, resale and rental housing markets at the national, provincial and local level. The housing outlook is subject to unprecedented uncertainty due to the COVID-19 pandemic. Following large declines in 2020, housing starts, sales and prices are expected to start to recover by mid-2021 as pandemic containment measures are lifted and economic conditions gradually improve. Sales and prices are likely to remain below their pre-COVID-19 levels by the end of our forecast horizon in 2022. The precise timing and speed of the recovery is highly uncertain because the virus’s future path is not yet known.

 The national and provincial economic outlook is subject to considerable risk given the rapid evolution of COVID-19, the speed at which the global economy and financial markets are reacting, and the unprecedented uncertainty surrounding the severity and duration of the pandemic. Canada will see a historic recession in 2020 with significant falls in indicators of the housing market. This outcome reflects measures to contain the pandemic to protect public health, and cutbacks in economic activity. The global reach of the pandemic lowered demand for oil, aggravating global excess supply, and resulted in falling oil prices, which will exacerbate declines in the economies of Canada’s oil-producing provinces. 

Our range of potential scenarios indicates that Canada could see declines in output, employment and immigration exceeding those observed during the recession of 2008-2009. These declines will in turn drive large falls in housing starts and sales in 2020. House prices will be lower than recent levels by the end of the year. According to our forecast range, Canada’s housing markets could start to rebound by the end of the first half of 2021, once the unprecedented medical emergency abates sufficiently to allow containment measures to be relaxed, and consumer and business confidence to recover. 

However, the exact timing and length of the economic recovery cannot currently be forecast with any degree of certainty since exceptional fiscal and monetary policy measures are being undertaken. Unfortunately, a more severe and sustained recession could also emerge if the pandemic were not contained, delaying recovery. The high uncertainty regarding the path of the pandemic is reflected in our wider forecast ranges. Provincial forecasts are subject to similar variability, although Alberta and Saskatchewan are likely to experience more prolonged downturns due to the additional negative impacts on output and employment from lower oil prices.