1. Don't Get "Pre-Qualified"!
Do you want to get the best house you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one bargaining chip in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer, are critical to a seller.
In years past, I've always recommended buyers get "pre-qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS and here's why! None of the information has been verified! Often, unknown problems surface! Problems I've seen include recorded judgments, child support payments due, glitches on the credit report due to any number of reasons both accurate and inaccurate and down payments that have not been in the clients' bank account long enough, etc.
So, the way to make a strong offer today is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few minutes to a few days depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.
2. Sell First, Then Buy
If you have a house to sell, sell it before selecting a house to buy! I haven't seen many contingent sales work in the last 3 years, unless it's with a new home builder who has other houses to sell and can afford to put one on a contingency. Let's pretend that we go out looking for the perfect house for you. We find it and you love it! Now you have to go make an offer to the seller. You want the seller to reduce the price and wait until you sell your house. The seller figures that's a risky deal, since he might pass up a buyer who DOESN'T have to sell a house while he's waiting for you. So he says OK, he'll do the contingency but it has to be a full price offer! So you see, you
paid more for the house than you could have because of the contingency. Now you have to sell your existing house, and in a hurry! Otherwise you lose the dream house! So to sell quickly you might take an offer that's lower than if you had more time. The bottom line is that buying before selling might cost you TENS OF THOUSANDS of dollars. I always recommend that you sell first, then buy.
If you're concerned that there is not a house on the market for you, then go on a window-shopping trip. You can identify possible houses and locations without falling in love with a specific house. If you feel confident after that then put your house on the market.
Another tactic is to make the sale "subject to seller finding suitable housing". Adding this phrase to the listing means that WHEN YOU DO FIND A BUYER, you will have some time to find the new place. If you don't find anything to your liking, you don't have to sell your present home.
3. Play the Game of Nines
Before house hunting, make a list of nine things you want in the new place. Then make a list of the nine things you don't want. I call this "NINE OF THIS AND NONE OF THAT". You can use this list as a score-card to rate each property you see. The one with the biggest score wins! This helps avoid confusion and keeps things in perspective when you're comparing dozens of homes.
When house hunting, keep in mind the difference between "SKIN AND BONES". The BONES are things that cannot be changed such as the location, view, size of lot, noise in the area, school district and floor plan. The SKIN represents easily changed surface finishes like carpet, wallpaper, colour and window coverings. Buy the house with good BONES, because the SKIN can always be changed to match your tastes. I always recommend that you imagine each house as if it were vacant. Consider each house on its underlying merits, not the seller's decorating skills.
4. Don't Be Pushed Into Just Any House
Your realtor should show you everything available that meets your requirements. Don't make a decision on a house until you feel you've seen enough to pick the best one. Go to the Multiple Listing Web site with your realtor to make sure you are getting a COMPLETE list of homes for sale and not just the home that the realtor wants to show you.
In the late 1980's, homes were selling quickly, usually a few days after listing. In that kind of market, realtors advised their clients to make an offer ON THE SPOT if they liked the house. That was good advice at the time. Today, there usually isn't this urgency unless a home is drastically under priced, and you'll know if it is. But keep in mind, if you wait too long, there is always a chance of the house selling before your offer is submitted to the seller. If you really like a house, get an offer written and make sure your realtor includes the appropriate clauses to get you out of the offer, should the need arise.
Don't forget to check the SCHOOL DISTRICTS of the area you're considering. Information is available on every school. You can get this information from your realtor or directly from the school.
5. Stop Calling Ads!
A word of caution - realtors create ads solely to make the phone ring! Many of the homes have some drawback not mentioned in the ad, such as traffic noise, power lines or litigation in the community. What's not mentioned in the ad is usually more important than what is.
For this reason, be very careful when reading ads. Remember, the person writing the ad is representing the seller, not you! The most important thing you can do is have someone on your side looking out for your best interests. Your own realtor will critique the property with an eye toward how well it meets your needs and will point out any drawbacks you should know about.
So, whether you decide to work with me or not, pick a realtor you feel comfortable with and enlist the services of that realtor as a buyer's broker. Then you become a client with all the rights, benefits and privileges created by this agency relationship, and you're no longer just a shopper. Did you know many homes are sold WITHOUT A SIGN ever going up or an AD EVER BEING PUT IN THE PAPER? These "great deals" go to those people who are committed to working with one realtor. When a realtor hears of a great buy, who do you think he's going to call? His client, for whom he has a legal obligation to work hard, or someone who just called and said "keep your eyes open for me"? To get the best buy on a property, I always recommend you hire your own realtor and stick with him or her. The beauty of hiring a realtor as a buyer is that it doesn't cost you a cent! The seller always pays the commission.
If you should have any questions about this report or any real estate related questions please don't hesitate to contact me.
Barry Quine - Sales Representative Century 21 Miller Real Estate Ltd. 467 Speers Rd. Oakville, ON (905) 399-1069 blog: www.OakvilleRealEstateToday.com
Making a mistake in selling a home can cost you hundreds or thousands of dollars in lost profit. Often home sellers make the same mistakes over and over.
Avoiding these mistakes is easy and takes little time and effort on your part. Take the time with your home sale and follow the guidelines in this report.
Distress Selling:
At times, selling quickly is unavoidable. That's when knowing the right techniques to sell your home without looking desperate and making yourself a target for low bidders really pays off.Know all there is to know about the market before listing and work hand in hand with the right real estate professional. Ensure that you are not settling for the first offer through the door. This is where your realtor will guide you in pricing the home properly in the beginning.
Best Home in the Neighbourhood:
Your home is one of your most personal possessions. Don't be blind to flaws and needed cosmetic improvements. This will cause overvaluing of the home, hurting its chances to be sold. Listing with the right realtor gives you a well informed third eye that will help you price your home at a fair market price.
Limited Home Viewing:
Buyers want to view a home on their own time schedule. Unfortunately their time schedule does not always coincide with your time schedule. Leave a lockbox or key with your realtor so your home can be shown when you are not around. You never know if the one who got away was your buyer.Restrain Emotional Decisions:
Don't allow a few hundred dollars to ruin a sale. That money will mean very little to you in the long run. Take a look at the big picture and react rationally. Use sound business judgment!Make Cosmetic Improvements:
Prospects make up their minds within the first twenty minutes. First impressions can make all the difference in selling your home. Spending $1,200 on new carpet might add another $4,000 to the price of your home. Get an objective point of view from your real estate professional. They can provide you with a list of items that will maximize the profit of your home sale.Disclose Property Flaws:
By attempting to cover flaws up, you risk losing the sale and finding yourself in court. Get professional assistance from your realtor who can introduce you to qualified inspectors and ensure the smooth sale of your home.For Sale By Owner:
Most homeowners who decide to sell their own home do so because they believe they can save the commission paid to the real estate agent.Everything has a price, and selling a home carries a high one. The enormous amount of time and effort required to sell a home often surprises the "For Sale By Owner." Furthermore, many costly mistakes can be avoided with the right guidance.
Refusing to Trust Your Agent:
Would you tell a physician that you've decided to run your own tests and come to your own diagnosis? By choosing the right Realtor, you can relax and trust their judgment. The right realtor is a valuable team member who will protect your best interests and make your sale as profitable as possible.
Know Your Market:
Most homes that do not sell in their first listing period are priced too high. Conversely, most homes that sell quickly are priced too low and cheat the homeowner out of profits.You need to understand the market and evaluate the value of your home based on fact, not gut instinct or conventional wisdom. A professional realtor knows the market, just as you know the market for your business.
Choosing a Realtor Based on Personal Relationships:
Home sellers often pick a friend or family member as their realtor. Choose a realtor with a strong track record and aggressive Marketing Plan. A top producer knows the market well and can generate many buyers.Selling your home is one of the most important decisions you'll ever make! Base it on good, sound business sense and the rewards will add up. Before you make one of your most important decisions regarding your home sale, shouldn't you become as informed as possible?
By aligning yourself with a top realtor, you ensure that all the important issues and seemingly insignificant but very important details are handled professionally. Your home sale should not be a grueling ordeal. The more informed you are, the better chance you have of making a sound business decision.
I sincerely hope these tips and ideas are of value to you. If there is any way I can be of service, please contact me.
I would consider it a privilege to be of service to you! If you would like a FREE consultation, call me at 905-845-9180
Warmly Yours,
Barry
It's Not All Bad News North O' The Border!
CANBERRA (Reuters) - Canada has the world's soundest banking system, closely followed by Sweden, Luxembourg and Australia, a survey by the World Economic Forum has found as financial crisis and bank failures shake world markets.
But Britain, which once ranked in the top five, has slipped to 44th place behind El Salvador and Peru, after a 50 billion pound ($86.5 billion) pledge this week by the government to bolster bank balance sheets.
The United States, where some of Wall Street's biggest financial names have collapsed in recent weeks, rated only 40, just behind Germany at 39, and smaller states such as Barbados, Estonia and even Namibia, in southern Africa.
The United States was on Thursday considering buying a slice of debt-laden banks to inject trust back into lending between financial institutions now too wary of one another to lend.
The World Economic Forum's Global Competitiveness Report based its findings on opinions of executives, and handed banks a score between 1.0 (insolvent and possibly requiring a government bailout) and 7.0 (healthy, with sound balance sheets).
Canadian banks received 6.8, just ahead of Sweden (6.7), Luxembourg (6.7), Australia (6.7) and Denmark (6.7).
UK banks collectively scored 6.0, narrowly behind the United States, Germany and Botswana, all with 6.1. France, in 19th place, scored 6.5 for soundness, while Switzerland's banking system scored the same in 16th place, as did Singapore (13th).
The ranking index was released as central banks in Europe, the United States, China, Canada, Sweden and Switzerland slashed interest rates in a bid to end to panic selling on markets and restore trust in the shaken banking system.
The Netherlands (6.7), Belgium (6.6), New Zealand (6.6), Malta (6.6) rounded out the WEF's banking top 10 with Ireland, whose government unilaterally pledged last week to guarantee personal and corporate deposits at its six major banks.
Also scoring well were Chile (6.5, 18th) and Spain, South Africa, Norway, Hong Kong and Finland all ending up in the top 20.
At the bottom of the list was Algeria in 134th place, with its banks scoring 3.9 to be just below Libya (4.0), Lesotho (4.1), the Kyrgyz Republic (4.1) and both Argentina and East Timor (4.2).
RANKINGS
1. Canada
2. Sweden
3. Luxembourg
4. Australia
5. Denmark
6. Netherlands
7. Belgium
8. New Zealand
9. Ireland
10. Malta
11. Hong Kong
12. Finland
13. Singapore
14. Norway
15. South Africa
16. Switzerland
17. Namibia
18. Chile
19. France
20. Spain
--------------------------------------------
124. Kazakhstan
125. Cambodia
126. Burundi
127. Chad
128. Ethiopia
129. Argentina
130. East Timor
131. Kyrgyz Republic
132. Lesotho
133. Libya
134. Algeria
SOURCE: World Economic Forum Global Competitiveness Report 2008-2009.
(For the full World Economic Forum report click on: http://www.weforum.org/GCR0809_Browser )
Oakville Ontario (Westoak Trails) for the month of September 2008 - Year To Date home prices in Westoak Trails as a whole are up 8.33% over this time last year. The average sold price in Westoak Trails was $420,744 for the month, up 5.4% from Sept. 2007 at $398,025. On an average, sellers in Westoak Trails are getting 97% of their asking price. The average days on the market for homes in Westoak Trails is 34, and 56 homes sold this month in Westoak Trails, down 22.2% from Sept 2007 at 72 homes sold.
Please feel free to email me to receive a monthly report of the Westoak Trails Real Estate Market Report.
Barry Quine
Oakville Ontario (Southwest Oakville) for the month of September 2008 - Year To Date home prices in Southwest Oakville as a whole are up 9.63% over this time last year. The average sold price in Southwest Oakville was $854,133 for the month, up 9.3% from Sept. 2007 at $774,580. On an average, sellers in Southwest Oakville are getting 97% of their asking price. The average days on the market for homes in Southwest Oakville is 57, and 6 homes sold this month in Southwest Oakville, down 16.7% from Sept 2007 at 5 homes sold.
Please feel free to email me to receive a monthly report of the Southwest Oakville Real Estate Market Report.
Barry Quine
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