There can be some things you can run into when buying residential land to build on. So here are some things you should look out for when you’re shopping and before you sign anything.

When you’re trying to buy a piece of land, of course the number one thing you’ll be looking for is location. 

• Keep in mind how close it is to hospitals

• How close it is to shopping (if those things important to you)

• How long do you plan to keep the property, that way when you plan to sell in the future, you can figure out how sellable this property is.

To find all these things out, have a conversation with your local real estate agent, and they can pull up comparables on how much land has sold for within the last 6 months - even in the last 6 years. Then you can see how well land sells in that area. 

One thing that happens more often than not, is that sellers buy themselves a piece of land, then they learn after they’ve purchased it that certain types of dwellings are not allowed on the property. So when you’re looking on the MLS or when you’re working with a real estate agent, make sure you make it clear to them exactly what you intend to do with that piece of property. They can then filter out the exact kind of property that will work for what you want to build, whether it be a tiny home, a modular home, or a manufactured home. That way you’ll be ahead of the game and not wasting your time on a bunch of listings that aren’t what you’re looking for. 

When you’re buying a piece of land, the other thing you’re really going to want to look at is if the land has utilities already brought up to the property. This can save you thousands and thousands of dollars, so you want to know the property has those services ahead of time. 

Another thing a lot of people don’t think about is mineral rights. One of the privileges of having mineral rights as a property owner is that you maintain mineral servitude for as long as you own the land. 

When you’re buying a piece of property you’re going to want to check it out in all weather types and seasons. If you’re interested in a property, before you write an offer, you should check it out after it rains, on a sunny day, on a snowy day, check in on that property to find out where it holds water on the property. Then you should find out how much of the land is usable and what you can build on. Just because you’re buying 4 acres, does not mean 4 acres are usable. All these things will take time, so make sure you allow a significant amount of time for these inspections in your offer. 

You’ll also want to find out the property line and the set back lines, which tells you how far from the property line you’re allowed to build. 

Easements - A property easement is a legal situation in which the title to a specific piece of land remains with the landowner, but another person or organization is given the right to use that land for a distinct purpose. You should know if a property has any easements that allow people to pass through your property, such as a dirt road. These are things you need to know. 

The key when you’re buying a lot, is that you have to do your research, soil sample, flood determination, you know what the set backs are on the property, you know the easements on the property, know what the zoning is, and know if it’s agricultural and you can rent that land out to local farmers for tax credits.

Now you know all you need to know before purchasing your piece of land!

When we talk about adding value, that doesn’t necessarily mean a dollar for dollar return on investment. Meaning if you spent $5,000 on your house that you’ll get an additional $5,000 when you sell it. Most of the time when you do something to increase the value of your house, you can expect that you won’t get a dollar for dollar return. Sometimes it is, sometimes it’s more, but most of the time it's around 80% or lower.  So do these things if you think it will make living in the house more comfortable and more pleasing for you, and not in a plan to increase the value by a crazy amount. Most of the time, what that does is you end up over improving on your house, because again, in the end you most likely won’t get that exact dollar for dollar exchange. 

#6 - Built In Bookcases | Does this add a lot of value to your house? No, not really…however, if you have a big empty nook on either side of a fireplace (for example) you could put in some storage, put in some wooden shelves, put in a countertop with a cabinet below - it makes it very practical. Not only do you have a place to put all your home decor or trinkets etc., but you can also store things out of the way in the cabinet below, such as photo albums etc.

#5 - Closet Organizers | Yes, these are great things to add! When you plan to sell in the future, when buyers see this beautifully organized closet with sturdy shelving, they’re going to prefer that over a disorganized one with cheap wire shelving.

#4 - Have a “Drop Zone” | Hooks on the wall where people can hang their coats, put their keys, put the mail, a certain area that's not cluttering up your kitchen or living room area. Let’s face it, we walk in the door and we’re going to put this stuff somewhere. If you have a place that can help keep things more organized and less cluttered, buyers will appreciate that.

#3 - Fence | Some people may not think this will add much value to your home, but it is something buyers look for! It might cost you a minimum of 6 or 7 thousand dollars, but no matter what, people like having a fence in their backyard. So, why wouldn’t it add value? If you want a fence while you’re living at your current home, for young kids, or a pet or for privacy - just do it! Because maybe it doesn’t add much to the price of your home, but if it comes down to a buyer picking your house over a similar one that doesn’t have a fence, yours will appear more desirable.

#2 - Upgraded Kitchen Counters | Upgrading your outdated and scratched laminate counters for new granite or quartz will never be a bad idea! 

#1 - Shed | If you have a smaller garage, there’s only so many places you can put stuff, so people love to put a shed in their backyard. Again, this is something that is not going to provide a 1-to-1 return, but if it’s a nice looking shed, people are going to appreciate a place where they can put all their lawn and seasonal things!

Today marks the 10th year since Realty Executives Gateway Realty’s opening, on February 24th, 2011. Owner and Broker, Richelle Roger has been in real estate for 15 years! She decided to open up her own realty business in Melfort after seeing the need for a new brand in town. Richelle also wanted to create her own realty team, although there are many aspects to buying and selling homes, an integrated real estate team has an incredible edge over individual agents. There is the technical expertise that goes along with the specialization of team roles which may include buyer's agents, listing specialists, transaction coordinators and marketing personnel but there is also a uniquely human advantage to utilizing a real estate team. Simply put, when you are trying to buy and sell your home, a multi-person real estate team brings resources, insights and more combined experience than an individual real estate agent. 

In 2005 Richelle began her career in real estate on a part time basis and in 2007 she decided that this was a career that she wanted to pursue on a higher, full time level.  Three years later she was ecstatic at the opening of not only her own brokerage, Realty Executive Gateway Realty, but also a new chapter in her life. As the team leader of Realty Executives Gateway Realty, it is hrt duty to hold herself and her team to the highest ethical and professional standards. We provide all our clients a professional experience with a personal touch. We build lasting friendships and fulfill dreams. Richelle’s 15 years in the real estate business, professionalism and proven systems will ensure you a top-rated experience. We take pride in being a leader in the industry and Richelle or Eleah wants to be your Realtor® for life.

Richelle and Eleah have been working together as a team for 10 years! Eleah Sims is an Associate Broker and Salesperson at Realty Executives Gateway Realty. Eleah has been licensed with the Realty Executives team since 2011. She loves to work on both sides of the transaction, whether that is with the buyer or the seller. Along with the REX team, Eleah has helped hundreds of people realize their real estate goals and is dedicated to making the home buying or selling process as fun, easy, and stress-free as possible. 

Eleah is passionate about staying up to date with the latest real estate trends and is always striving to grow a strong social media platform. Her and the REX team are continually attending educational seminars and courses in order to serve their clients better. 

Born and raised in Melfort, Eleah has an intimate knowledge of the city and its surrounding area. Her experiences of having lived in Melfort all of her life give her an enthusiasm and a desire to make her home, your home. She and her husband, Joel, live in Melfort with their daughter, Noa. When Eleah is not selling real estate, she loves spending time with her family, decorating her home, trying new food, attending church events, and watching NFL football with her husband.

Moving is often a chaotic yet exciting event in your life. After the big moving day, you’ve got a lot of work ahead of you. Unpacking is just the first part of the battle. Next, you’ll need to get your regular routines sorted out and make sure everyone in the family feels comfortable in the new home.

With all of the changes and the responsibilities of a big move, it’s easy to misplace important items and make mistakes. To help keep your life in order, be sure to keep these things on your to-do list.

Securely store these records:

• Your closing statement

• Property deed

• Receipts for home improvements

• Warranty information

• Loan papers

• Insurance policies

Change your address:

Start with USPS to make sure that all your mail is getting forwarded and you don’t miss any important mail or bills. You can do this online at moversguide.usps.com.

Once this is done, you’ll also want to update your address with:

• Bank and Credit Cards

• Insurance providers

• Work

• Department of motor vehicles (driver’s license and car registration)

• Voter Registration

• Online Vendors (especially with automated payments)

If you have gotten a new job in the last 6 months, or are on a probation period with a job, this is for you!

Some lenders have restrictions on how long they expect you to have been employed. 

So, how long do you have to be in a job to get a mortgage? Well, it all depends on what type of position you have. If you’re in a full time position, or half time position and depending on the bank, they can work with as little as two pay stubs. Granted that in those positions you’re getting an annual leave, sick pay and all the benefits you’d expect from a full time or half time position. If you’re in a casual position, regardless if you’re getting full time hours or half-time hours, if you’re in that casual role, the banks will need to see a bit more consistency, usually 3 months at the bare minimum. 

It does change from bank to bank, some lenders have langer requirements. So check with your broker, and make sure you’re applying to the right lender who is going to meet the circumstances that you require. 

So what if you’re currently working but you’re about to move to a new job? So, the first thing to note is that the bank will expect that you’ll be working within the same industry. The second thing they'll want to see is a copy of the employment contract, to compare what you’re supposed to be earning with what you’re currently earning. And the third thing is, at least one pay stub for that new job. So you can apply for a mortgage when you’re in your current position, provide the employment contract, and then  the bank will get a good understanding of everything and assurance with the pay stub from the new job that everything is legitimate. 

Which  lenders can help? Each bank has unique criteria and requirements that need to be met, particularly in full time or part time positions and they may need you to pass any probation type periods. Since they're all different it’s important to compare and contrast, especially if you’ve started a new role recently, you want to give yourself every opportunity at success and not be knocked back because you’re still subject to probation. 

Why are lenders so adamant on this? If they're giving you a third year loan term, and you’re in a probation period for the last 6 months, they don’t want to give you a loan and you don’t pass the probation period, so you end up with no job and no money to pay off the loan. 

So ask your broker about the right lender for you!

Buying a home is one of the biggest financial and investment  moves you will make in your life! It can also be more difficult than it needs to be, especially if you’re trying to buy in a seller’s market. But don’t worry - we’re here to help:

Get informed

Here's where a great real estate agent will come in handy. They can help determine whether your local housing market favours buyers or sellers. This will tell you how and what you should offer on a particular home you wish to buy. An agent can also tell you what similar homes are selling for in the market, giving you a better idea of the value of a home.

Don’t wait too long to make an offer

With more buyers than there are homes in a market like this, make an offer and fast, or stand the chance of losing the home of your dreams!

Get pre-approved so you can instantly make an offer

Getting a mortgage pre-approval will signal to a seller that you are a genuine buyer and you can seal the deal on the offer that you made.

Consider not adding too many contingencies in your offer

If you have multiple contingencies on an offer, especially the selling of your current home, may be seen as undesirable to a seller. If another buyer came along with the same offer just with less contingencies, chances are the seller is going to choose the other. However, don’t sacrifice your peace of mind just to secure a property, be comfortable with whatever offer you decide to make.

Start with a strong price

Put your best foot forward, at the same time not exceeding your pre-approved price. Sellers will take an offer closer to the asking price more seriously than a low ball offer.

Include a higher deposit amount

Again, this is going to show the seller how serious a buyer you are. Just make sure whatever conditions you do have on the offer, that they cover you if you back out for any reason. 

Be prepared for competing offers

There are things your can do to come out on top of a bidding war:

• Including the stronger deposit

• Taking an active part in negotiations

• Leaving the closing date open - let the seller decide

Be open to buying a new construction

The competition may be too much and the choices too little. Going with a new construction or even a RTM may be the answer you’re looking for. You’ll be waiting longer for move-in day, but you will be able to choose the floor plan,  finishings, fixtures etc. to your liking.

Stay positive

It can feel overwhelming making an offer, especially when the market favours sellers, but don’t be discouraged. Maintaining a level head will be crucial through the important home buying and decision making process.

Buying a “for sale by owner” or FSBO can save you around 6% of the cost of the house. However, there are a few things buyers should know about buying a for sale by owner.

What do you save on commission?

As a buyer, you don’t pay for either the listing or selling agents commission, the seller pays for both. Does that mean that commission fees don’t affect the buyer? Well, commission fees are sometimes factored into the price of a home, by the sellers.

No access to the Multiple Listing Service

Without an agent, you won’t have access to the Multiple Listing Service (or MLS), which is a tool only agents can use to find homes for sale. The MLS also helps to sell homes faster.

You’re losing an advocate

Things like a home inspection, appraisal, title to the home, getting the best mortgage rates will pop-up during this process. Having an agent to help you through this process may be worth the fees. Realtors have knowledge about fair market home prices, and many contracts are voided when a buyer and seller are negotiating because they cannot come to an agreement. 

FSBO homes could be overpriced

A buyer's agent will confirm the property’s value and help you come to the best negotiating price. A for sale by owner us most likely trying to avoid seller’s commission and so tries to sell on their own, being so focused on money, they are often overpriced.  

Be knowledgeable

If you are a good negotiator and can form a good relationship with the seller, than a FSBO home will be a whole lot easier for  you. 

Gather intel. You’ll need to gather as much information as possible. Then you will know if you need to be negotiating low or to start with a more aggressive offer. Each property is unique, therefore each negotiating situation is unique. Here are five things you need to do to gather intel on a property:

Who Owns The Property?

How you negotiate with an owner vs an investor, are vastly different situations, so knowing who owns the property is vital information. Ask your agent these questions:

• Who owns the property? 

• How long have they owned the property?

• Were they living there or was it an investment property?

Sales Record

Next thing you’ll want to know is when the property was last sold and how much the property was sold for. This gives insight into how much the owners will be looking for and whether or not they’ll be flexible on price. If they’ve earned it for thirty years, they will probably be more flexible than someone who only owned for 6 months. 

Why Are The Owners Selling?

Divorce, a deceased estate, moving to another city, are they being forced to sell? These are all possibilities that will help you understand why the owners are selling the property. 

Comparative Market Assessment

You can get a CMA done by your agent to find out what similar homes in the area have sold for. Knowing this you can know what to offer, and if the asking price is accurate to home value or not. 

Tools of the Titans

Next step is to dig deeper, and this will give you much more knowledge on the property and the agent. This are the tools you will need to use:

• Property Prediction - will hint at where the negotiation might end, and where you should begin

• Everything About the Agent - figuring out how good or bad your real estate agent is. The more you know the more you can prepare. You can check out sites like domain or ratemyagent. You want to know how many properties they’ve in the last year and how long it took and for how much. 

• Lowballing: 3 things to keep in mind

• Can you offer less than the asking price? Yes. But watch out, if an offer is too low, it can run the risk of just getting ignored by the sellers.

• How much should you offer on a house? You want to be within 10% of the asking price, any lower can run the risk of not being accepted and any higher you’re paying way over.

• What is considered a lowball offer? Anything below 10% of the asking price is considered a lowball. Say the asking price is 500k and your offer 400k, since this is lower than 10% of the asking price, there is a high chance of the seller not responding to this offer.

Mistakes To Avoid When Negotiating

Here are 6 big mistakes a buyer can make when negotiating:

1. Speaking Rather than listening - The one who does all the talking isn’t the one who wins. The who asks the questions is the one who’s in control, in doing so, you dictate where the conversation goes. 

2. Being Over Invested in the Result - In negotiating there are many things out of your control, the sellers limitations being one. So, don’t make yourself too attached to a certain end result. Keeping your emotions in check, and sticking to your game plan, will wield the most success. 

3. If you Fail to Plan then Prepare to Fail - It’s as simple as that, have your game plan set before you begin negotiating. 

4. Revealing All your Cards - Don’t reveal too much that might put you at a disadvantage.

5. Not Creating Dialogue - You want to keep and maintain a good dialogue throughout this process. Keep your cool, show respect, and keep everything “Politically Correct” so to say. 

6. Assuming Everything is Set - Everything is up for grabs and anything can be negotiated. If it applies to the terms, all that is on the table can be agreed upon. It’s terms vs price, if your counterpart is pushing price then you should push terms, and vice versa. 

Offers

Always make sure you put everything in writing. Be sure to ensure a deadline when your offer is no longer valid. 

Biggest thing to take away is that price isn’t everything. 

Are you stuck wondering if you should invest in a new build or an older home? Look no further because we are going to help you decide by giving you the best information to make your decision.

To start, let’s look at the 4 advantages to buying an older home: 

1. Some older homes have a bit more charm, a bit more character to them. A uniqueness that new builds just aren’t going to have.

2. Larger yard - they’re built on larger lots with larger yards compared to homes today.

3. Established neighbourhood, which includes more mature vegetation, more people that know the area and love the area, and you can drive through an older neighbourhood and get a better feel if you’d want to live there.

4. Closer to “downtown” areas, things like shopping, entertainment, perhaps your place of work - older homes are more likely to be close to these downtown type places. 

Now let’s go into the drawbacks:

1. More Maintenance. This really depends on how well the previous owner(s) maintained the property. You should always keep this in mind and perhaps set aside money, this could be 1% of the purchase price. Each year setting aside that amount is always a good idea. 

2. More expensive to replace wiring or plumbing should you need to. 

3. Smaller storage, closet and garage spaces (generally). 

4. It might require upgrades. An outdated kitchen or bathroom - things you have to consider in your budget that you know you’re going to change.

5. Can have a smaller square footage on average. 

OK, so what are the advantages to buying a new build home?

1. Little to no maintenance. You’re not going to have to replace anything right off the bat.

2. Modern conveniences. Extra outlets, etc.

3. Some builders provide warranty - know the terms and what they cover

4. More energy efficiency.

5. Generally more square footage with an open floor plan.

Disadvantages?

1. New builds are usually very similar in floor plans, called  “cookie cutter” homes.

2. Immature vegetation - shrubs and trees on the smaller side, need care.

3. House is yet to settle. Takes time, creates some imperfections in foundation etc.

4. More distance to the main areas of cities.

5. Can become pricey quickly.

You can definitely sell and buy a house at the same time… it just takes a lot of planning! So here are some tips for anyone who may be in this situation. 

First thing you want to do is get pre-approved from the mortgage from a lender. You roughly have an idea on the kind of profit you will make from selling your current house, and what you can put down for your next property. The lender can tell you what kind of loan options are available: how much do you have to put down, what would the interest rate be, how much your payments are going to be.

Get your house ready to go on the market. Things you need to do to your house to look ready for a showing. Pack up the things you aren’t going to need, maybe put it into storage. There are plenty of variables that are outside of your control when trying to sell, but among the few factors you can influence is how your house looks and functions. Before listing, invest the time and effort into making

Hire a competent realtor to help you. This person will be able to tell what you house should sell for. Trust a professional to get your house up on the market. 

Wait if you’ve got offers coming in. If they offer to close in 30 days that’s great. But you may want to counter back to get more time before the close. If you still need to find a place to go, give yourself more time for you to go and find your new property, then ideally you could close on both houses close to the same date. 

Some common mistakes people make when buying and selling at the same time include:

1. Waiting too long to list their house

2. They don’t get pre-approved

3. Not realizing that their home COULD sell for less than they want

4. Failing to compromise

5. Using two different real estate agents - complicated

6. Close in the morning or on a Friday

Here at Realty Executives Gateway, we value our clients and we are always looking for ways to show our appreciation to our REX family. This year is our first annual Gift Tree giveaway. During the year of 2020, if you bought, sold, referred us to someone who bought or sold with us or you left us a review, your name got put into the draw x amount of times to win the tree. The Gift Tree this year has the value of $900 worth of gift cards in local Melfort businesses. Every time someone’s name was entered, we added a $10 gift card of one of the ten businesses that we selected onto the tree. The businesses that we chose to go on the tree this year include $100 at Home Hardware, $100 at Catz N Jammers, $100 at Tj’s Pizza, $100 Mel-City Florists, $100 at Golden Grain Bakery, $100 at Back Stage, $100 at  RJ’s Urban Garden Cafe, $100 at Daisies Dreams and Decor, $40 at Smitty’s, and $100 at Rola Fashion Wears.

We’ll be announcing the winner of this year's tree on the 31st of December. Due to COVID 19, we sadly cannot host an event to announce the winner. So, instead we will be hosting a Facebook Live event that you can find advertised on our Facebook page. On December 31st join Richelle and Eleah Live, and find out who wins! 

The easiest way for you to get your name in the draw right now is if you’ve worked with us in the past, you can write a review on Facebook or Google, or even email us a review that we can post, and your name will be entered in! You don’t even need to have worked with us recently, if you worked with us at some point, and you thought you received great service, then write it! If you do, you could be the one to win the $900 prize!!

1. Choose a Colour Scheme that Ties Your Room Together

Keep everything in one colour scheme and it’ll help keep things in a cohesive look.

2. Pick the Right Tree

Artificial, real, skinny, fat, tall, short, Christmas trees come in all shapes and sizes, and depending on the size of your space at home and how much time and money you want to spend on a tree, will all help decide which tree is the best one for you.

3. Update Your Shelves with Holiday Apparel

Shelves are perfect little spaces to put candles, garland, figurines etc. 

4. Get Rustic with Buffalo Plaid

Get a space looking more cozy and festive with plaid. Throw pillows, throw blankets, ornaments, stockings… whatever!

5. Get Creative With Your Wreaths

Wreaths don’t just have to hang on the front door, add them to center pieces or as decor around your home.

6. Make Your Home Merry & Bright with Christmas Lights

Candles and string lights are also good additions in a space to keep it light and merry. Don’t forget about the outside though!

From everyone here at Gateway Realty, Merry Christmas and Happy Holidays!