Why you NEED a Buying Agent

One of the questions I often get asked is "Do I need a buyers agent?" 

You see, many people go to an open house see THE house of their dreams and will put it an offer with the listing agent. 

While with my listings this approach can offer savings, with respect to my commission rates, many agents will not offer savings and using the listing agent can result in you paying more for your home then is necessary and here is why; 

• The Listing Agent is the Seller's representative in the transaction, and is charged with helping the SELLER get as much as possible for their home. 

• As a Buying Agent I represent YOU and can look objectively at the property and assess fair value based on many things including market conditions, recent sales, how the home fits YOUR needs, and assessment of the home's future value. 

• A Buying agent's job is to negotiate as hard as possible to get you the best value for YOUR money and if that particular home is not the best value, we move on to others. A listing agent wants you to buy that home only. 

• A Buying agent will work closely with you to determine your must-haves, needs, and nice-to-haves and with that knowledge will find you the best home possible at the lowest possible price.

 

• A buying agent is FREE to use! The seller pays all the commission and therefore it costs you nothing to have a skilled and professional negotiator working for you.

Your home is one of your biggest investments, isn't it worth it to have someone who is exclusively on your side? 

I am always available to answer questions and you are under no obligation if you do ask.  If you see any listings that you are interested in, please feel free to forward them on and I can show you their true value and what price is fair for that home. 

Call me today 416-256-7000 or email me anytime at marianog@sutton.com and let me help you find your next home. 

Mariano

Follow my tweets www.twitter.com/marianogigante 

The 1% solution: 5 tips to help sell your house

Recently I was invited by www.moneyville.ca to provide some thoughts on what values renovations bring when getting a home ready for sale. It can be a misconception among sellers that all renos are equal when getting a higher price for your home.    This can often cause costly errors that with some research can be avoided.  Below is the article I contributed to.  This article has been copied from Moneyville.ca and can be viewed here;

http://www.moneyville.ca/article/959232--the-1-solution-5-tips-to-help-sell-your-house

Whether you’re moving out of town, moving up or splitting up, everyone has the same goal when they’reselling their home: to make as much as they can.

One way to get the best sale price is to invest a few dollars to spruce up your place for prospective buyers. One rule of thumb is that you should set aside 1 per cent of your asking price, so, if you’re listing for $400,000 a renovation budget of $4,000 isn’t out of line.

Of course, certain projects will get you more, though in most cases you won’t get all your money back. The return can be anywhere from nothing, for skylights and pools, to an average of 75 per cent on high-performing kitchens and bathroom projects.

Here are some tips:

Kitchen

You can expect to recover 75 to 100 per cent of your investment in kitchens and bathrooms.

“The payback is tremendous,” says Frank Turco, Home Depot’s trend and design manager. That’s because buyers don’t want to undertake a cumbersome renovation that restricts access to these key spaces.

A few hundred dollars can give your kitchen a whole new look. Cabinets can be cleaned, lightly sanded and painted to look like new, while hardware can also be updated quickly and inexpensively, with new pulls and handles starting at a few dollars a pop. Outdated track lights can be replaced with more fashionable varieties, focused task lighting and undercabinet lighting. Dingy backsplashes can also be refreshed with a coat of paint or new tiles, which are available in peel-and-stick varieties.

For a bit more of a splurge, try replacing laminate cabinets with wood and laminate countertops for something a higher end, such as Corian or granite. New appliances are also a worthy investment, with stainless steel and once again trendy glossy white appealing to buyers.

Bathrooms

In the bathroom, like the kitchen, painting the vanity, and swapping out light fixtures and pulls can refresh the space inexpensively. Upgrading faucets, taps and shower heads are another simple project in the $50 - $100 range.

Additional storage is also essential in the bathroom, so look into closet and cupboard organizing systems and adding extra shelving.

Or go all out and embrace the trend for more spa-like bathrooms with marble tiling, full glass showers with extra nozzles and high-end showerheads or a steam shower. Double sinks, heated floors and upgraded countertops are also nice perks.

Paint

In all spaces, a fresh coat of paint works wonders – bringing homeowners a return of 50 to 70 cents on the dollar, says says Mariano Gigante, a sales representative with Sutton Group. Others like, Re/Max salesperson Justin Kua estimate a fresh paint job can bring in returns of 300 per cent.

“Even if it is a simple thing to fix, buyers want it done,” says Gigante, noting it also helps sell homes quicker than other upgrades. Wipe away scuffed paint and outdated colours with neutral hues for a fresh, buyer friendly look.

Flooring

Ripping out worn carpets and refinishing, or replacing, battered floors can offer returns of 75 to 100 per cent, says Gigante, noting that laminate and wood offer the highest rate of return.

Turco recommends laminate vinyl options, explaining “vinyl has come a long, long way” and is now available in durable planks, tiles and sheets that can mimic almost any look and texture, with many varieties available in the $60 range for 24 square feet. Plus, as far as projects go, it’s “inexpensive and easy, as long as you have a box cutter and a ruler.”

Other upgrades

Replacing doors and windows can bring in 50 to 75 per cent – and help you save on energy costs to boot.

Landscaping, meanwhile, will put roughly 25 to 50 per cent of what you spend back into your pocket. A well-maintained garden, brick paths and even urns can also do a lot to boost your home’s curb appeal.

A buyer’s first impression is key so for an easy fix up under $100, Turco suggests cleaning up the front yard, repainting pots and planters, laying a new welcome mat and painting the front door.

Read about 10 easy ways to boost your home’s curb appeal here.

What not to do

Finishing a basement will see about a 50 per cent return on your investment, but as a big and costly job, Gigante says it’s only worthwhile if the homeowners intend on using it themselves for a while.

Skip the skylight. While additional natural light can be a boost, this project is expected to bring you absolutely no return, says Gigante.

Also avoid adding a swimming pool or Jacuzzi. It usually doesn’t improve your resale value and can even discourage buyers, such as families with small children.

If you are tackling a larger scale reno or working with a contractor, make sure the project comes in at less than your one per cent resale renovation budget, including a hefty contingency fund. The projects that offer the biggest returns – kitchens and bathrooms – can also bring the biggest surprises, snowballing costs as mechanical problems are uncovered.

Jennifer Wilson is the editor of yourhome.ca

You can check out the article and www.moneyville.ca for more great articles about all aspects of Saving, Investing, & Real Estate. It is a great resource! 

If you are thinking of selling your home and renovations to get it ready, feel free to drop me a line at no obligation to you and I am happy to give you some ideas on what renos will get you the most resale value.  I can be reached at 416=256-7000 and marianog@sutton.com 

It is a great market out there and is a great time to sell particularly in the areas of Old Meadowvale Village and Levi Creek. 

I currently have clients seeking detached homes with the following specifications

- 4 Bedroom 2,000 - 2,500 square feet with or without finished basement

- 4 bedroom 2,500+ square feet with finished basement

If your home meets this criteria call me today and get your home sold for top dollar.

Have a great weekend everybody. 

Planning your Renovation

For some people, the fears of cost overruns and months of living in a construction zone are enough to dissuade them from undertaking a renovation project. That's a shame because there are many good reasons to renovate. If you like the neighbourhood where you live, for example, but feel cramped in a small, outdated kitchen, upgrading may be a better solution than moving. A well-planned renovation might also increase property value. If your home is older than most in your area, new flooring or other updates can help to bring your home up to par with others on the market. Knowing the basics about the renovation process and the professionals involved can help you avoid unnecessary expenses and delays.

The Planning Stage

A renovation project is an opportunity to create the space you've always wanted. In the initial planning stages, create a wish list. Write down everything you would want to add or change in a room. For example, you may wish to install a convection oven or a larger refrigerator in the kitchen or new flooring and a Jacuzzi tub in the bathroom. Later, when you get an idea of cost from a professional renovator and from your own research, you can decide which options to keep and which ones are too expensive.

To help you plan your renovation, browse magazines and online home decorating websites. Visit home shows and home décor stores to see some of the latest innovations in building products, countertops, appliances etc. Take note of product prices and energy ratings as you shop. You may find that certain upgrades will pay for themselves over the long run in terms of energy and water savings. A professional renovator can also be a good source of ideas and product suggestions.

Home Inspectors

Once you have created your wish list, you are ready to consult professionals for their input. If the renovation you are planning is extensive (e.g. involves knocking out a wall or electrical adjustments) it is wise to hire a home inspector. A home is a system; occasionally, a renovation in one area can have unexpected consequences in another. In addition, if your home has any existing problems such as water damage or a weakened floor, it is best to find out about them before you begin construction. The Canadian Mortgage and Housing Corporation (CMHC) recommends that home inspectors start their assessment in the basement as many problems in other parts of the home originate there. A cracked foundation and excessive moisture, for example, can cause deterioration throughout the entire structure.

A home inspector can help you to evaluate the overall condition of your home and set priorities for current and future renovation projects. A copy of the inspector's report should be provided to the professional renovators asked to bid on your project.

Real Estate Appraiser

Many people undertake renovations in hopes of increasing the value of their homes. Unfortunately, there is no simple 1:1 formula for recouping the costs. Many factors come into play including the age of your home and the value of those in your neighbourhood. If you are concerned about the return on your investment, you may wish to consult a real estate appraiser. The appraiser can help determine how a renovation would affect the value of your home. In general, homeowners can expect an eventual return on investment of approximately 70 percent for the kitchen and bathroom but only 50 percent for finishing a basement, according the Appraisal Institute of Canada.

Renovators

The next step is to solicit bids from professional renovators. It is a good idea to get more than one opinion on the best way to proceed with the project and the estimated cost. They will quickly examine the space you wish to upgrade along with the items on your wish list in order to give you a price estimate. They can also advise you if the project requires further design or architectural services.

When choosing a renovator, consider not only their price estimate but also how well you can communicate with them and whether they seem knowledgeable and organized. It is amazing how much you will miss a kitchen or bathroom as it is undergoing renovations! A qualified renovator will be able to get the renovations done within a reasonable amount of time.

Once you have selected a renovator, it is time to go over your wish list in detail. They will inspect your home to take measurements and ascertain the locations of electrical and plumbing lines. The renovator may be able to offer logistical suggestions on your design such as improving the flow of traffic in a kitchen. If a room requires a change to the electrical wiring or plumbing, they will likely be able to tell you at this point.

Next, the renovator will draw up plans. Review them together and if you approve of them, you will likely need to pay a deposit. (Be sure to get everything in writing and all keep the receipts. Do not pay in cash.) The final plans should include details of the project including the layout and materials as well as descriptions and prices of the products. There should also be a timeline indicating the stages of the project. Keep in mind that this timeline is not completely reliable because several variables can have an impact on the length of the project, such as availability of special-order items.

Lastly, a professional renovator should also be able to advise you on the proper permits (if any) that are required under your local municipal by-laws for various projects. Generally, the renovator will take care of acquiring the permits and arranging for inspections when the project is completed.

A successful renovation requires a team effort between you and the industry experts that you hire. To ensure a good outcome, you need a clear plan and good communication. Then all that's left is for you to sit back and enjoy the results.

Gain Negotiating Advantage When Buying

Buying a property requires good knowledge of market conditions, personal finances as well as the ability to judge what is a good investment. Equally important is being in a position to negotiate realistically when you do decide to make an offer. That comes of doing as much up-front thinking and preparation as you can before you are actually in the position of preparing a formal offer to purchase.

Market conditions
Look at the long-range prospects of your borrowing commitment. For instance, in a period of low interest rates, you should take into consideration whether or not prices are expected to increase in the future. In that case, you may want to seriously consider locking in at a reasonable rate for the opportunity of considerable gain in the future.

How Much Can You Afford?
Before you go into the market to look for a house, review your current spending and loan commitments. A mortgage lender will use a ration of about 30% of gross income as the amount of mortgage you can carry. You will have a good idea of your own capacity if you review your finances beforehand. Property tax is an additional cost that must be factored into the equation.

Having settled on a price range for your prospective house purchase, the next step may be locking in a mortgage interest rate with a pre-approved mortgage. Knowing that you already have your mortgage arranged can increase your comfort level at the negotiating table. To arrange a pre-approved mortgage, you meet with a lender who will confirm your borrowing capacity, perform the required credit review and make an agreement to honour a particular interest rate for a specified time.

Existing Mortgage
If there is an existing mortgage on a property you are selling or on one you are looking at, there is more to consider than simply the balance outstanding and the interest rate. You should know, before you get into negotiations, whether or not the mortgage is assumable by the purchaser or is it due upon the sale. If it is assumable, must the new purchaser qualify in order to take it over and what is involved in doing that?

Be aware, as well, of any pre-payment terms. If your mortgage is open, of course, you can repay it at any time without penalty. However, a mortgager may have "lock-in" clauses. These may include payment of a bonus or the lender's interest revenue loss for the balance of the term should you repay early. You should clarify all this with your lender.

Portability
A very popular feature now is mortgage portability. That means that you can transfer your existing interest rate, loan balance and remaining term to a new mortgage without penalty although there may be some restrictions. Be sure you understand what they are before you get into negotiations.

Mapping the Route
Just as you would orient yourself beforehand to the law of the land in a country where you were going to live or even to visit, the same holds true for preparing your journey into the property buying market.

Santa Claus Parade Sunday in Mississauga

Hi everyone,

Today is the big day! Streetsville will once again host the Annual Mississauga Santa Claus Parade on Sunday, November 28, 2010. The parade will start at approximately 12:50pm on Queen Street South at Britannia Road and travel south through the Village to disperse at various locations after the Church Street junction.  Have heard that it is best to get there by noon to get a good spot and parking!  Try to carpool or take public transit so as to cut down on the amount of cars. Don't be late or you will get on Santa's Naughty List. See you all there!

Establishing your Asking Price

Deciding what price tag to put on your home is never easy. Price is often the determining factor for potential buyers. Location, layout and amenities are important but in the end most of us have to look at the bottom line. Many sellers like to think they can start with the price they originally paid, add a healthy mark-up and wait for the offers to roll in. A lot of those sellers will have to adjust their price once their home is on the market.

Try to put aside your subjectivity
The cherished memories you may hold of your home are basically unimportant to buyers. Usually they're more interested in creating their own memories. An unsentimental look at the market value of your home can save time and disappointment.

The amount you actually spent for home upgrades is worth mentioning in the listing information, but their reflection in the selling price can be somewhat distorted. The new carpet, paint, or deck you added may increase the value (and shorten the time your home is for sale) but don't expect to be reimbursed dollar for dollar for those renovations. As design trends change you may also find that certain renovations are either more or less desirable. (Do you remember shag?)

Arrange a Comparative Market Analysis (CMA)It is standard practice for a real estate agent to visit and evaluate a home. Ask for a comparative market analysis showing the selling prices of similar homes in the neighbourhood, those currently on the market and those that didn't sell. A CMA presented by an experienced agent can provide a realistic price estimate of your home. Remember however that CMAs are not set in stone. Some agents under-value your home in hopes of creating demand. Others will flatter you with over-inflated estimates in order to get your listing but later suggest a price reduction. Don't fall for these tactics - work with an agent who is upfront and honest in their evaluation and knows your area.

Conduct your own market research
When homes in your area have open houses take a look. Use this opportunity to compare your home to "the competition" in terms of price, location, square footage, and amenities. Once you look at several listings you should be able to make an educated guess as to the market value of different aspects of your home. If you are months away from actually listing your home, visiting open houses may also help you discover which renovations could be profitable and appeal to today's consumers.

Calculate the price per square footThere are many factors to take into consideration when determining market value. Price per square foot is a good starting point. You can get a fair idea of the average price per square foot of homes in your neighbourhood by reviewing properties sold or for sale recently. Remember that there is more than one way to count square footage so it's a good idea to ask your agent what method is commonly used.

Consider market conditions
Real estate is one of the most secure investments you can make but prices can rise and fall independent of the quality of the individual properties. If you attempt to sell your home when the market dips you'll find you may have to lower the price below your expectations. Interest rates, the state of the economy and the local job market should be considered before you put your home on the market. The time between price peaks varies due to local and national market influences. These characteristics will assist you in determining if there is any market timing opportunities.

Finally, consider your own needs when setting your price. Are you in a hurry to sell? If so you may want to knock one or two percent off the market value. Is there a minimum amount you can afford to accept? If you have the luxury of time you have more leverage. Keep in mind however, that a house that is on the market too long or has a large price reduction at some point, may be viewed as "damaged" or "stale goods."

Your best strategy may be to establish a fair asking price from the start. Most buyers will make an offer lower than the listed price in a bid to see how low you'll go. However, those who have researched the market will be willing to meet you near your terms.

Mortgage Brokers Demystified

Unclear as to what a mortgage broker can do for you? This article discusses some of the many benefits and services provided by mortgage brokers in Canada. After reading this article, we hope you will understand why you will benefit by using a mortgage broker for mortgage financing. 

What is a mortgage broker?
Simply stated, a mortgage broker is an agent for lenders in much the same way an insurance broker is an agent for insurance companies. Mortgage brokers act as agents for banks, trust companies, credit unions, mortgage corporations, mortgage investment corporations, finance companies and individual private investors. Some mortgage brokers are exclusively lenders of their own money and provide a direct source of mortgage funds (a topic to be discussed in a later issue). Mortgage brokers are trained professionals that have to meet a satisfactory educational requirement before they may become registered. As such, this requirement ensures you are being provided with a duty of care, a working knowledge of mortgage products and a standard of service to meet individual needs.

So, how would I benefit by using a mortgage broker?
Using the services of a mortgage broker for the first time usually results in the following testimonials:

• I originally thought you only used mortgage brokers if you couldn't qualify at the bank….I was wrong.
• I didn't feel intimidated or left in the dark for days on end wondering if I would qualify;
• My mortgage was approved the very same day I applied;
• I didn't realize there were so many terms and conditions that vary among the different institutions. My mortgage broker took the time to explain them to me;
• I didn't realize many mortgage products and discounts were available exclusively through mortgage brokers;
• I always thought you had to pay fees but because my mortgage was approved based on my credit history and income, there were no lender or brokerage fees charged;
• I didn't have to leave my home or take time off work to apply;
• The broker clearly explained the interest rates, prepayment privileges and other important terms and conditions which helped clarify some of my many questions and helped save me a great deal of money as a result;
• Within five minutes, the broker explained how much of a mortgage I qualified for;
• Within five minutes the broker told me that I had enough income to qualify for my $160,000 condominium purchase;
• The application process was pleasant and over the telephone;
• I didn't have to take the time to shop financial institutions for the best mortgage myself, the broker did everything and got me what I wanted;
• The broker was always accessible on evenings or weekends when I needed an important question answered before making an offer on a property;

What will the mortgage broker need to know? As you probably already know, lender terms and conditions are not created equal. So, whether you are purchasing a property or refinancing an existing mortgage, there are many factors to take into consideration. A quick analysis of your personal situation by a qualified mortgage broker, lets him/her know where to shop the market. Some things he/she will need to know are:

• Net worth (i.e. your assets less your liabilities);
• Income (i.e. income from employment or self-employment);
• Credit history (i.e. your payment history with your other creditors, loans credit cards etc.);
• Property type (i.e. Residential, Land only, recreational, remote location etc.);
• Down payment amount;

Once your application is complete, the mortgage broker knows where you will qualify. With the click of a few buttons, he/she can tap into the vast network of computers which connect lenders and brokers electronically. As mentioned above, the broker can obtain rate discounts for you that you cannot obtain yourself.

Where will your next mortgage financing experience be?
Volumes of detailed important information are available to consumers right now but do you have the desire, time or where-with-all to effectively examine what's out there? It can be a daunting, frustrating task. To limit your frustration, consider using the expertise of a qualified and knowledgeable mortgage broker to help you understand the mortgage process and meet your financial needs.