All of your hard work has paid off, even with all the competing homes in Brampton you managed to get an offer, but you won’t know exactly how much it’s paid off until you actually see the offer. This is an exciting, often emotional time, so be prepared.
Your REALTOR will walk you through the process.
- You’ll see every offer. It’s required that your REALTOR show you every offer that’s submitted. They’ll call for an appointment to discuss the offer.
- The buyer’s REALTOR will probably be there too. They are there to represent the buyer’s best interests in the negotiation. The buyer will not be there, so you can review and respond to their offer without any awkward pressure. Sometimes offers are done through fax. Your Brampton agent might recommend that as well because then there is no pressure from the buyer’s agent.
- Your eyes will be immediately drawn to the price! Here’s where emotions can really kick in. This isn’t a poker match, but remain calm. Listen to the REALTORS before making any judgments.
- You’ll probably ask the buyer’s REALTOR to leave the room. Now you and your REALTOR are alone to discuss the merits of the offer. Maybe it’s time for a high-five, or maybe it’s time to plan your counter offer. You may also wish some private time to discuss things with your spouse.
Three options when responding to an offer.
- You can accept the offer. You got the price you were hoping for, maybe even more! The closing date looks good and there are no fussy conditions. Sold!
- You can reject the offer. This offer isn’t even close.
- You can “sign back” the offer. This offer is close, but something’s not quite right. Now the delicate art of negotiation begins, by “signing back”.
Reasons why you may want to “sign back”.
- You want more money. This is by far the most common reason people “sign back”. Everybody wants to get the most for their home, and as the saying goes “if you don’t ask, you don’t get”. Go for it, but don’t get too greedy and insult someone who has made a fair offer and remember in mind the Brampton real estate conditions.
- You want to change the closing date. Maybe your buyer has already sold their previous home and has no place to live. They want to move in soon; sooner than you’d like. Maybe you haven’t even started looking for a new home! In the same way that you can “sign back” a higher dollar amount, you can also “sign back” a compromise closing date. Perhaps the buyer is willing to offer more money to compensate you for the inconvenience of living in a motel for a few weeks. Welcome to the world of negotiation and compromise.
- There may be some undesirable conditions on the offer. Conditions are points of contention that must be fulfilled in order for the sale to go through. Here are some common conditions that buyers place on their offers.
- Buyer to obtain financing. they will often put in this condition. The sale will only go through if the buyer can get the mortgage they want. For some sellers, this is too big an “if”, but the buyer’s REALTOR® will be candid about their odds of approval and keep in mind even if they are preapproved the bank still wants their own appraisal done on the property. Unless there are competing offers (not happening so much anymore in Brampton) this condition is pretty standard in every offer.
- Approval to assume mortgage. You have a great mortgage rate on the property and the buyer only wants your home if they can also take over your easy payments. Will this potential buyer qualify?
- Sale of purchaser’s home. The buyer hasn’t sold their existing home yet and they want to be protected from the expense of owning two properties. Maybe their house will sell in a flash. Maybe it won’t sell at all. Maybe you don’t want the sale of your home riding on so many maybes. Time to consult their REALTOR® about the other home and its odds of selling soon.
- Property Inspection This condition is becoming standard practice. Hopefully, you have followed the suggestion of your REALTOR® and disclosed every detail of your home’s faults, so there won’t be any surprises. Refusing a home inspection before sale is highly suspicious to a buyer, and may spoil the deal.
The art of counter-offers and negotiation.
A successful negotiation is one that leaves both you and the buyer feeling satisfied with the outcome. This is a highly emotional time, so be sure to regularly “check your head”, and ask yourself “How important is this particular detail to me? Am I willing to jeopardize a sale over this?” Remember once you “sign back” an offer, you are releasing the buyer from their offer and they are free to walk away. Thankfully, your REALTOR® is an expert and seasoned negotiator, and will help you every step of the way.
Happy negotiating, and best of luck!
For questions on the Brampton real estate market drop me an email.
Here’s a question for Brampton homeowners -
Pay down your mortgage or invest in your RRSP?
How do you decide which course of action is your best long-term alternative?
Have you ever wondered whether it makes more sense to pay off your mortgage on your Brampton house or to invest in a Registered Retirement Savings Plan (RRSP)? Perhaps you’re expecting to receive some extra money from an inheritance or employment bonus, and you’re not sure what route to take.
Here are some factors to consider:
- Your Age:
When you’re young, it is wise to make your RRSP a priority. The sooner you get your money into a sheltered retirement plan, the longer it will grow on a tax deferred basis. But don’t overlook the need to build home equity, especially now that the Brampton real estate prices are taking a hit. It can give you a head start on the expenses of moving to a larger home as your family grows.
- Your Income.
The more you earn, the higher the rate of tax you’ll pay. That means you must earn more in before tax dollars to make mortgage payments. If you’re a high income earner you may want to quickly reduce this expensive debt.
- Investment returns.
Pay attention to the general rate of investment returns you could reasonably expect to earn when you make your decision. Astute investors could be further ahead by investing their money than paying down the mortgage. The benefits of investing are magnified by an RRSP, with tax-deferred growth within the plan and the tax deduction on contributions.
- Your mortgage rate.
If your current mortgage rate is low, it may make more sense to invest in an RRSP. In times of good returns for financial markets, low borrowing costs make a compelling case for contributing to your RRSP.
- Are you behind on your RRSP?
If you have made less than your maximum annual RRSP contribution in the past, a lump sum could allow you to catch up. You are allowed to make up for unused contribution room that you’re accumulated from past years. This could also generate a healthy tax benefit.
- Your pension plan.
Those with generous workplace pension plans that provide for a secure retirement may be able to concentrate on a mortgage without giving up financial security in retirement.
Summary
Of course, you can focus on both your RRSP and mortgage. For example, you could contribute to your RRSP and then apply the tax refund it generates towards a prepayment on your mortgage.
Before you make a decision, you may want to ask for an assessment of your personal situation. An advisor can help you decide which course of action suits your financial circumstances and objectives. I have contacts with some excellent Brampton financial advisors. Drop me an email if you would like their contact information.
Also, for more general information on the Brampton or Georgetown real estate market send me an email.
Because of the constant changes in Brampton real estate market conditions, more sellers are competing for fewer buyers. And most buyers are not jumping at the first property they fall in love with.
“The initial asking price is NOT that important because it can always be lowered later.”
Wrong! The original asking price is very important. Specially when working with the new generation of buyers who are well informed on the market conditions. But many homeowners still believe over pricing a listing is the way to go. And they couldn’t be further from the truth. It is a myth. It’s a time wasting myth.
Find out more…
But most buyers are now looking at prices online, to get an idea of what is for sale and at what prices. Even if they saw your ad for the first time because of another type of advertisement (newspaper, sign in your front yard, flyer, etc) as soon as they decide to make an offer they will make a Market Comparison Search and find out the home is over priced compared to other Brampton properties. What would happen next? The homeowner will most likely receive a low ball offer from the buyer.
When the buyer comes with another agent
That buyer’s agent knows the current market and will know of other properties that DOES fit their needs.
Buyer’s agents are not swayed by advertising. They look at their client’s needs; location, condition, and most importantly … PRICE
If your house is overpriced, agents are going to show similar homes in Brampton that are priced more attractively and as a result, your listing will get passed over.
Agents pay MOST attention to homes newly on the market, and since they new ones are fewer, it is easier to keep an eye out for what is NEW, compared to the vast number of current listings. New listings are on the “hot” sheet circulated in real estate offices. The MLS computer identifies new listings. A lot of attention is focused on what is NEW. With agent’s looking at newly listed homes so aggressively, a properly priced home gets attention.
An overpriced home gets passed over.
You may be thinking, “But I’m willing to negotiate!”
Buyers aren’t thinking in advance about how much you are willing to negotiate. They are comparing your asking price to other asking prices. Plus, when your house is new on the market, you may not be willing to negotiate as much as you will later, once you’ve realized your error.
So what happens if you overprice in the beginning and get more realistic later?
A price reduction later in the listing cycle often gets overlooked. It is just one of many listings, not one of a few new listings. As time passes, you could actually become desperate to sell because perhaps you now really NEED to sell. That is a recipe for receiving lowball offers, so you could end up selling for less than if you had priced the home correctly in the first place.
Agents know this stuff, but many sellers still mistakenly believe they should “price it high” because they can lower the price later, if necessary.
Overpricing a listing is NOT the best strategy.
To get an idea on how much your Brampton or Georgetown house is really worth drop me an email.
Do you see a lot of open house signs in Brampton? The weekend open house is a time-honored tradition in real estate sales, but has it outlived its effectiveness? Quite possibly, according to a new survey conducted by the Real Estate Center at Texas A&M University. The survey results hint at the notion that public open houses may be more beneficial for the agents themselves than for the home sellers.
Almost all the agents who responded to the survey (97 percent) had held public open houses, but only 41 percent believe those events help sell the home that’s being showcased. Thirty-two percent believe public open houses attract many potential buyers for other Brampton properties, but nearly three-fourths also believe those buyers are more likely to buy a home other than the one being held open. And 62 percent say most people attending open houses aren’t serious buyers at all.
Also, nowadays everyone is searching for real estate on the internet. An internet lead is more qualified then an open house lead. An internet lead already knows the price of the house, the size, how it looks (from the pictures / virtual tour) before they call the agent. An open house visitor has no idea about any of those things when he walks into the house. Just to be polite they’ll make compliments and usually leave a wrong phone number.
Even though open houses may be of only marginal benefit for Brampton sellers, they aren’t necessarily a total loss for sharp agents. In addition to bringing in buyers for other homes, open houses create opportunities for agents to sign listing agreements with neighbors who stop by to see the open home. Fifty-five percent of the survey respondents agreed with the statement that open houses help them generate new listing contracts. Public open houses also present a security issue for home sellers and agents. “Whether or not to hold an open house is a concern among agents,” says Jack Harris, a research economist with the Texas A&M center. “Agents must be on-site for the duration of open houses. 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.”
Despite the potential for meeting prospects, many agents find open houses troublesome, dangerous and generally a waste of time. The first lesson for home sellers is: Unless your home in Brampton is unusual (i.e., difficult to sell), you might want to spend your weekends enjoying your own backyard, rather than turning your home over to your real estate agent.
A lot of the times you will just get nosey neighbours wanting to see how your house is decorated or people just out for shopping in Brampton will drop by because they want to know how much to price their house when it’s time for them to sell. MLS is the most effective way to get qualified buyers.
For questions on the Brampton or Georgetown real estate market drop me an email.
Confused about real estate commissions? You’re not alone.
There’s no question a good real estate agent can be a valuable resource when it comes to buying or selling a home. But how much is that help going to cost?
First of all, if you’re the one buying the home in Brampton ( or actually anywhere in the GTA), it isn’t going to cost you anything. The agent’s commission comes out of the selling price. That means it’s deducted from the amount the seller receives, not added onto the amount the buyer pays. Of course, it can be argued that as a buyer you are indirectly paying the commission by virtue of the fact that it’s included in the price. But following that logic, all homes for sale by owner should cost less than those being sold through an agent, and if you’ve called on FSBO ads in Brampton you know that certainly isn’t always the case.
Second, if you’re the seller, you don’t have to pay an agent anything up-front to market your home. A real estate agent generally doesn’t receive any commission until closing, at which time they will receive the amount stipulated in their contract — commission rates vary from city to city and from agent to agent. But chances are (unless you’re in a particularly hot market) your agent is going to have to work hard to earn that commission by investing a lot of time and effort into marketing your home. And they’re going to have to give a cut of that commission to both their brokerage and the buyer’s agent (unless they represent both the buyer and the seller).
To help take the mystery out of real estate commissions, we provide the following answers to a few of your most common questions.
Q. Who pays the commission?
A. The seller. It is paid out of funds received from the sale of the home.
Q. Does the commission go entirely to the seller’s real estate agent?
A. No. The broker whose firm lists the house sets the commission. The listing broker then offers part of the commission — to the broker whose firm represents the buyer. Both brokers then share their portion of commission with the agents who work with the seller and buyer. The agents’ share may be as little as 50 percent or as much as 100 percent, depending on their arrangement with the broker. If either brokerage is part of a franchise, it may also pay part of the commission as a franchise fee. Bigger Franchisees such as Remax and Royallepage may charge monthly Franchise fees but the agents get the benefit of being associated with the top brands in real estate.
Q. Is it possible to negotiate the real estate commission?
A. Yes. An agent may be willing to negotiate his or her commission in order to get your business. This is especially true if the agent is independent and doesn’t have large operating costs. In some cases, both agents might agree to cut their commissions in order to bring down the price of the home if the buyer’s offer doesn’t quite meet the asking price. From my experience in Brampton I’ve seen and heard everything.
Q. Will I pay less if I buy a house without using a real estate agent?
A. You might be able to negotiate a reduced price. Since the listing broker won’t have to share the commission with another agent and broker, he may agree to a reduced commission and pass the savings on to you. This may also be possible if you use the same agent as the seller — for example, if you toured an open house in Brampton and retained the listing agent. This is called dual agency. Yes there is a chance that if you went to the listing agent direct you might save some money because that buyer’s agent commission can now be negotiated in the price. But keep in mind that at the end of the day the listing agent is still working for the seller. So be sure to double check everything you sign.
Q. Is a real estate agent likely to push me to buy a more expensive home so he can make a higher commission?
A. There isn’t a big incentive for an agent to push you to buy a more expensive home because of the way commissions are divided. For example, your agent may be entitled to 65 percent of his broker’s share of the commission — perhaps 2.5 percent of the sale price. Under that scenario, if you were to buy a home for $260,000, rather than $250,000, your agent would earn only an additional $195. That is really not a money, and certainly not enough for the agent to lose your trust over.
I charge one percent commission for myself and 2.5 percent for the buyer agent (industry standard – especially in Brampton). Therefore, the total commission you pay with me is 3.5% for full service. For questions on the Brampton or Georgetown real estate market drop me an email.
With any service or product, it’s a good idea to shop around before making a commitment. It’s particularly important to find a qualified, knowledgeable REALTOR who can help you sell your home quickly or find the perfect home in your price range. But with so many agent in the Brampton / Georgetown area how do you decide who to work with? and what’s really wrong with working with more then one agent?
Most REALTORs prefer to work under an exclusivity agreement, which means they are the only REALTOR you are working with to handle either buying or selling your home. The agreements are normally for a set period, often two to six months (can vary from agent to agent), and they are designed to ensure the REALTOR is paid for the work they do for you.
Working with more than one REALTOR at a time isn’t usually a good idea, even if you haven’t signed an exclusivity agreement. Since REALTORs work on commission and get paid only when they buy or sell a home, a REALTOR may not be motivated to work hard for you if you’re using more than one.
While working with one REALTOR is good practice, it doesn’t mean you have to use the same REALTOR to buy and sell a home at the same time. Many REALTORs specialize in either buying or selling, so they represent only one half of the deal. REALTORs also tend to specialize in certain communities, and you want to make sure you have one who knows the Brampton community you are either buying or selling in. In these instances it’s usually better for you to work with two REALTORs, one on each side of the sale.
Unless you have signed a contract, you are free to talk with as many agents as you want. But tell them you are doing this up front. It may spur them to work harder for you. Just remember that the best REALTORs are often busy and may not agree to this arrangement. A new agent might have more time available for you and might be willing to agree with everything you say but the downside is you don’t get the expertise, skills, and confidence that can only come from experience.
For questions on the Brampton or Georgetown real estate market drop me an email.
The richness of a natural hardwood floor can add warmth and charm to any room. Today’s hardwood floors come in more species, widths and colors than ever before and more durable. With proper care and cleaning hardwood floors can last more than a lifetime and will add value to your home.
Wood floors are a natural, non-allergenic product
Hardwood floors can add real value to a home
2 Basic types of hardwood floor construction:
- Solid Wood Floors (prefinished & unfinished)
- cut from tree as a solid piece of wood
- plank widths vary from 2-1/4″ to about 12″
- plank thicknesses vary from 7/16″ to about 3/4″
- will react to changes in humidity
- recommended for above grade installations
- nail-down installation to a wood type sub floor
- solid wood needs proper expansion allowances along vertical walls
- Engineered Wood Floors (prefinished & some unfinished)
- 3 to 9 wood plies glued &laminated together
- plank thicknesses vary from 3/8″ to about 9/16″
- top finish veneer may be domestic or exotic wood specie
- plank widths vary from 2-1/4″ to about 7″
- glue, float, staple, or nail-down on all grade levels
- wood subfloors or dry concrete slabs
- glueless engineered wood floors install similar to laminate floors
- dimensionally stable, most may be net fitted to vertical walls.
- less effected by humidity changes than solid wood floors
Unfinished hardwood floors (also called job-site finished).
- with a job-site finish they sand the floor smooth, less chance for overwood
- custom stained colors, generally 2-3 coats added of finish
- this can be fairly messy, takes several days
Pre-finished hardwood floors (also called factory finished).
- usually installs in less than a day
- less messy than job-site finish
- limited to manufacturer’s colors
- manufacturers can apply 7-10 coats of finish
- factory finishes are extremely wear resistant
- some manufacturers add aluminum oxide for additional durability
- today’s factory finishes are much easier to care for than the old waxed finishes.
- prefinished trims are not an exact match to the floor.
Wood accents available to create unique looks and patterned designs.
Never clean or wet mop a hardwood floor with water. Water can dull the finish and permanently damage the wood floor.
All hardwood floors can be scratched. Scratches in the finish layer are fairly easy to repair.
Areas with lots of direct sunlight may effect the wood color over time
Most hardwood floors can be used over radiant heat with some limitations
Wood floor finishes can be used to restore the floors original beauty
Mostly used for: living rooms, dining rooms, bedrooms, dens, and great rooms.
Laminate floors combine a realistic impression of real hardwood, stone and tile with an extremely durable finish. These floors have become a popular alternative to real hardwood and vinyl floors.
Laminate floors are NOT real wood floors
Laminate floors are extremely impact, scratch, sunlight fade and stain resistant
Although laminate floors are extremely tough, they can be scratched by big dogs or dragging heavy objects across the floor.
Laminate flooring come in 3 types:
- Installer has to apply special glue
- Special glue is applied manually to the tongue & grooves of each plank.
- floating floor installation
- Not very common anymore
- Glueless floating laminate floors
- No glue, just click, or snap-fit lock planks together
- Most laminate floors are of this type
- Factory pre-glued, floating laminate floors
- The glue is applied at the factory. Just moisten the plank tongue and insert into adjacent plank.
- Some laminates use this method, not many
Trims and moldings are available for laminate floors. Moldings are laminated over a fiber core so they match the floor, or the moldings can also be made from real wood and color coordinate with the flooring.
Laminate flooring uses the floating installation method, which means:
- Laminate floors just rest on top of the subfloor. They are never secured or fastened to the substrate below. Instead they just lay on top of the substrate. Specially designed tongue-and-groove interlocking systems to secure planks together.
- Float entire floor over a variety of sub floor materials, such as plywood, OSB, existing vinyl flooring, concrete slabs, etc…
- You never have to glue-down, staple down, or nail-down laminate flooring.
- Even though these floors are floated the sub floor still must be level for locking planks together.
Most laminate floors can be used anywhere within the home, including wet area (but may not be warrantied).
Laminate floors do not need a wax or polish.
Excessive moisture may affect a laminate floor’s inner core and overall performance
Laminate planks are not easily repaired. There are touch-up kits and chip repair kits, but difficult to find.
Laminate floors require a thin, special padding underneath the planks so they can move freely.
Laminate floors can be fairly noisy when walked on. Special underlayment paddings are made to help reduce the noise level.
Glueless laminate floors are a very good do-it-yourself product
Highly resistant to the effects of sunlight
Most laminate floors can be used over radiant heated concrete slabs
Mostly used for: family rooms, living rooms, dining rooms, bedrooms and dens.
A laminated floor that is properly installed, protected and maintained will go a long way to help your laminated floor last as long as your home. Some benefits of a laminated floor are:
- A laminated floor is tough and durable
- A laminated floor is chemical resistant
- A laminated floor can be easily cleaned
- A laminated floor can resist dropped cigarettes for a time without burning the laminated floor
- A laminated floor will keep its color or design for years. Sunlight will not fade a laminated floor
- A laminated floor is hypoallergenic. The laminated floor repels dust, dustmites and other allergy causing particles
- A laminated floor is stain resistant
- Cleaning up a spill on a laminated floor is as simple as wiping up the mess.
- Installing a laminated floor is quick and easy
- A laminated floor requires no nails
- A laminated floor comes in many different designs and colors
- Scuff marks can be easily cleaned off a laminated floor
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