Showing your house to buyers

Your house should always be available for show, even though it may occasionally be inconvenient for you. Let your listing agent put a lock box in a convenient place to make it easy for other agents to show your home to homebuyers. Otherwise, agents will have to schedule appointments, which is an inconvenience.  Most will just skip your home to show the house of someone else who is more cooperative.

Most agents will call and give you at least a couple of hours notice before showing your property. If you refuse to let them show it at that time, they will just skip your house. Even if they come back another time, it will probably be with different buyers and you may have just lost a chance to sell your home.

Try Not to be Home

Homebuyers will feel like intruders if you are home when they visit, and they might not be as receptive toward viewing your home. Visit the local coffee house, yogurt shop, or take the kids to the local park. If you absolutely cannot leave, try to remain in an out of they way area of the house and do not move from room to room. Do not volunteer any information, but answer any questions the agent may ask.

Lighting

When you know someone is coming by to tour your home, turn on all the indoor lights – even during the day. At night, a lit house gives a “homey” impression when viewed from the street. During the daytime, turning on the lights prevents harsh shadows from sunlight and it brightens up any dim areas. Your house looks more homey and cheerful with the lights on.

Fragrances

Do not use scented sprays to prepare for visitors. It is too obvious and many people find the smells of those sprays offensive, not to mention that some may be allergic. If you want to have a pleasant aroma in your house, have a potpourri pot or something natural. Or turn on a stove burner (or the oven) for a moment and put a drop of vanilla extract on it. It will smell like you have been cooking.

Pet Control

If you have pets, make sure your agent puts a notice with your listing in the multiple listing service. The last thing you want is to have your pet running out the front door and getting lost. If you know someone is coming, it would be best to try to take the pets with you while the homebuyers tour your home. If you cannot do that, It is best to keep dogs in a penned area in the back yard. Try to keep indoor cats in a specific room when you expect visitors, and put a sign on the door. Most of the time, an indoor cat will hide when buyers come to view your property, but they may panic and try to escape.

The Kitchen Trash

Especially if your kitchen trash can does not have a lid, make sure you empty it every time someone comes to look at your home – even if your trash can is kept under the kitchen sink. Remember that you want to send a positive image about every aspect of your home. Kitchen trash does not send a positive message. You may go through more plastic bags than usual, but it will be worth it.

Keep the House Tidy

Not everyone makes his or her bed every day, but when selling a home it is recommended that you develop the habit. Pick up papers, do not leave empty glasses in the family room, keep everything freshly dusted and vacuumed. Try your best to have it look like a model home – a home with furniture but nobody really lives there.

For more information on the Brampton or Georgetown real estate market drop me an email.

Are extended mortgages a good idea?

For most Canadians, home ownership is as much about financial well being as it is about comfort, security and a sense of pride. Building equity in your own home, while enjoying the experience of being a homeowner, is a priority for millions of Canadians. And now there are more options available to help realize the dream of home ownership. It’s best for buyers to start by understanding their current financial situation.
 
New mortgage products, such as extended amortizations, can help make the transition to home ownership. In addition to the traditional 25-year mortgage amortization (the time you’ll take to pay the loan back in full, with interest), there are now 30-, 35- and 40-year amortizations available.
 
Extended amortization products can help buyers with good credit become homeowners sooner, but they’re not without some drawbacks.
 
A home purchased with a 40-year amortization mortgage will carry significantly higher interest costs over the life of the mortgage than one purchased with a 25-year mortgage, assuming you use the entire amortization period to repay the loan. For example a $250,000 mortgage at 6.5 per cent with monthly payments paid over 40-years will cost $445,177 in interest. If that amortization were 25 years, the consumer would pay $252,368 in interest, a savings of $192,809.
 
Extended amortization products should be viewed as a tool to help you become a homeowner sooner. However, there are options available for paying down mortgage debt more quickly than the original amortization period chosen.  For example, mortgage loans in Canada generally end after five years, after which time you have the option of choosing a shorter amortization period.
  By doing so, you’d save interest charges and eliminate your mortgage sooner.  Similarly, the average Canadian moves every seven years, which ends their mortgage and provides an opportunity to choose a shorter amortization period.
 
Also consider that mortgages in Canada offer pre-payment allowances of between 15 per cent to 20 per cent of the original mortgaged amount, usually on an annual basis. Some consumers use their income tax refund from RRSP contributions for this purpose.
 
Accelerated payment options are another great tool to reduce mortgage debt. For example, a 40-year amortization period can be cut to about 32 years by moving from a monthly to accelerated bi-weekly payment schedule. If you make additional payments or double-up your mortgage payment throughout the year, you can also significantly reduce the number of years to pay off your mortgage.
 
Most Canadians (78 per cent according to a recent survey) are interested in paying their mortgage off as quickly as possible, and using the above strategies will allow you to do just that.
So, if a 40-year amortization is more expensive in the long-term, why choose it at all? Besides lower mortgage payments, there are other reasons why these products may make sense.
 
For example, you may purchase a ‘fixer upper’ and keep the extra cash flow available for renovation costs. Once the home is renovated, you can make accelerated payments or choose a 25-year amortization when renewing your mortgage term.
 
Similarly, for young professionals who still have student loans to consider, a 40-year amortization may make initial sense. It will allow them to pay down those loans and later pay their mortgage more aggressively after their income level rises and they’re free of that debt.

Are open houses effective?

Home sellers still favor open houses, but many real estate agents say they are a waste of time compared with other marketing methods, according to a new survey.

Agents surveyed by the Real Estate Center shows that less then 8% of houses are sold through open houses. “Whether or not to hold an open house is a concern among agents,” says Jack Harris, research economist with the Real Estate Center. “Agents must be on site for the duration of open houses, which are usually held on weekends, and be prepared to impress potential buyers. Safety is a growing concern because there is no way to know whether a visitor is a serious buyer, just curious or has more sinister motives.”

Today’s marketing tools include the Internet, cable television and low-tech innovations, such as yard signs that transmit radio messages.

The survey, which sampled residential agents, shows that almost all (97 percent) respondents have used public open houses, but only 41 percent say the technique helps sell the home. While 32 percent agree that public open houses attract many potential buyers, 62 percent believe most people attending open houses are not serious buyers. A slight majority (59 percent), however, say open houses are especially important for selling unusual homes.

Nearly three-fourths of sales agents think that open houses are effective in interesting buyers in homes other than the one being shown. Slightly more than half (55 percent) believe open houses help generate new listing contracts. These numbers suggest that open houses may not be a waste of the agent’s time, although they may not benefit the seller.  

Holding open houses is not the only way agents can attract listings. Survey respondents view referral and community involvement as effective tools, which rank first and second in effectiveness and popularity. Open houses rank third in familiarity but seventh in effectiveness.

One of the keys to selling a listing, especially in highly competitive markets, is for serious buyers to see the home. Yard signs, the Multiple Listing Service (MLS) and referrals are common methods that stand out. Although these methods are not new, agents still feel they are the most effective.

For any questions relating to the Brampton or Georgetown real estate market you can reach me at textvic@gmail.com or (647)834-6834

$10,000 government assistance

Good news for home buyers in the Brampton and Mississauga area.

 

• Applicants must be 18 years of age or older
• Applicants must not own or have an interest in another residential property
• The home must be the sole and principal residence of the purchaser
• The applicant must currently be renting and looking to buy a sole and principal residence
• The applicant must have a total household income not exceeding $75,800
• The applicant must be able to obtain a mortgage and demonstrate sustainability
• Participants may not include anticipated rental income from a portion of the property in order to obtain a mortgage
• The applicant must be able to pay all additional closing costs
• The applicant must supply all necessary documentation to the Region of Peel

For more details on this plan or general questions on the Brampton or Georgetown real estate markets drop me an email.