When I have to speak to a homeowner about commission discounting (and these days who among us doesn't have to do that?) my conversation tends to go like this:
Selling a house is like any other service you might wish to contract out. There are those who are good and those who are not. There are those who are expensive and those who are cheap. What's important is to establish priorities at the outset. Do you want to sell quickly? Do you need to sell for a particular dollar value? Do you want to buy something else prior to selling what you have? The most important question is: "Why do you want to sell the house?" Everything to do with the sale and any subsequent transaction is derived from this fundamental understanding. Remember also that Real Estate is just like anything else in terms of its relationship to the TANSTAAFL Concept. What's TANSTAAFL? Read on.
Some years ago, prior to getting into Real Estate, my sales manager took me out on a call with him. That morning I learned more about sales fundamentals than any course has taught me since. One of his most important points was that sales people fall quickly into two categories: sellers and discounters. The former rarely discount and the latter rarely sell.
A good sales person develops an understanding of the product and an understanding of the consumer's needs and applies those understandings to successfully complete a transaction. The discounter, on the other hand, simply lowers the price and keeps lowering it until the buyer agrees to pay. Brian's point was that if you're giving up your commission in order to make a sale you come perilously close to providing a public service. Time to rethink the method!
Consider for a moment the listing Realtor. This individual is in the unique position of having to sell the house twice. It must be sold initially to the other Realtors, who in turn must sell it again to their buyers. The listing Realtor should consider this when the listing is being prepared. Dwelling on negative aspects of the property or failing to note positive aspects may fail to create a desire to sell on the part of the other Realtor. A reduced selling commission may have a similar effect. It is the listing Realtor's responsibility to make this clear to the Vendor, but all to often the Vendor is allowed to offer the property for sale without a clear picture of the implications of a less-that-total listing commitment. Only later, when the property has not generated the attention it deserves is this sort of thing considered.
One of the most important facts for a Vendor to know is that when a new home comes on the market there is a window of about two weeks when the property will be at the peak of it's popularity. It is a NEW LISTING! If the listing has been properly priced and presented, there is a good chance that the property will sell within that time. If the listing is lacking in any way, the property may not end up selling and adjustments may be required to correct the situation. The problem is that by the time these adjustments are made that window of opportunity has gone; the Vendor's home is just another of the many listings on the market.
Extreme care and total understanding should be the watchwords for Vendors considering a discount Realtor. Discounters have been known to use phrases like "We Sell Real Estate For Less" in their ads. Any Vendor considering an ad like this should replace the words "Real Estate" with "Your Home" and reconsider the choice.
How can a Realtor who is trying to sell himself on the basis of discount not turn around and negotiate the sale of a home on exactly the same basis? Often these ads are simply an attempt to get in the door - figuratively and literally.
Homeowners should be cautious of phases like "some conditions apply". Be very clear on all of these conditions prior to even sitting down to interview a Realtor. Any reluctance to give all of the conditions over the phone should be dealt with prior to the interview. It is, after all, the Vendor's home and it is always the Vendor not the Realtor who should be in charge at all times.
What does the law say? The fact is, a Realtor can charge whatever a Vendor is willing to pay and whatever the Realtor is willing to accept. No limit up or down. So homeowners must remember the first priority. Why are you selling the house? Answer that and then test all future considerations against how they affect that first priority. Stick to that simple formula any you lessen your chances of disappointment to near zero.
What is TANSTAAFL? TANSTAAFL is an acronym that is popular with accountants, lawyers, computer types and readers of good science fiction. It stands for the old adage: "There ain't no such thing as a free lunch".
Don't forget to visit www.marianogigante.com
Thursday, January 28, 2010
Monday, January 25, 2010
Things to Think About When Buying a New Home
"Home is an invention on which no one has yet improved."
- Ann Douglas
So you've made the decision to buy a new home. In the excitement of beginning a search for a home, many people jump right in without considering all of the elements that make a home truly right for them. It is a complicated and personal process. An unsuitable choice can be costly in many ways - you could lose money, waste time and effort relocating, or even put your family's health in danger. The following are some things to consider when identifying your ideal home and planning a successful purchase.
Choosing a Neighbourhood
Remember that you can renovate a house but neighbourhoods take years to change and there's no guarantee they'll change for the better! On the other hand, if you really love a certain part of town but it's out of your price range you may want to consider buying a less-than-perfect home then doing renovations. They can be quite expensive so try to make improvements that will be reflected in the value when you sell. These renovations have been found to have the greatest payback: kitchen 70%, bathroom 68%, interior painting 65%, exterior painting 62%.
Tips on choosing a suitable neighbourhood:
•When you find a locale you like, walk around it. See what it's like from street level.
•Are the people friendly?
•Are there stores and recreation facilities nearby?
•Contact the local school board if you have children. Do local schools provide good education opportunities? If applicable are there private/religious schools?
Figure out what you can afford:
Consider how much you currently need to live on and how much you actually have leftover every month. People have a tendency to create budgets that look nothing like reality - when we should have $400 left over, for some reason we only have half that.
Consider these basic costs of buying a new home:
•Most homes require a down payment of several thousand dollars.
•Monthly mortgage payments can be 1/3 of the average person's annual net income.
•You may want to pay for a home inspection. Consider more than just the structure. Ask the inspector to check for asbestos, radon, animal infestation and lead.
•Moving costs can be from a couple hundred to several thousand dollars depending on the distance of your move and the quantity of belongings.
Financing
The sort of home you can afford depends on several things:
•How much you have saved
•How much you earn
•Past earnings
•Your credit rating
The past has a way of haunting new homebuyers. If you are concerned about your credit rating you can usually get a free copy of your rating report from your local credit bureau. Normally all that's required is a couple pieces of photo identification. Remember, a few late payments or disputed bills can besmirch your record. Try to pay everything on time and don't have more than two credit cards. A bad rating can spell trouble getting a mortgage or you end up paying more for your mortgage as a form of insurance to the lender.
Pre-Qualification
This refers to documents from a bank or other lender indicating that you have the financing to back up your offer on a house. Pre-qualification is free and most lenders are happy to sit down with prospective buyers and figure how much they can afford. Having an accurate idea of price range will save time in the bidding process. If there are several people making offers on your dream home, being pre-qualified can make your offer more attractive since financing is not in question. It is important to note, however, that lending institutions will base their final decision about a mortgage on ability of the buyer to service the debt as well as the property. Most lenders state that the two components go hand in hand - the buyer with the ability to repay a mortgage and the property as security in the event of default on payment.
By taking all these points into consideration, you can worry less about the process of buying and get busy finding your ideal home!
Please visit www.marianogigante.com for the best new listings and real estate resources you will find.
- Ann Douglas
So you've made the decision to buy a new home. In the excitement of beginning a search for a home, many people jump right in without considering all of the elements that make a home truly right for them. It is a complicated and personal process. An unsuitable choice can be costly in many ways - you could lose money, waste time and effort relocating, or even put your family's health in danger. The following are some things to consider when identifying your ideal home and planning a successful purchase.
Choosing a Neighbourhood
Remember that you can renovate a house but neighbourhoods take years to change and there's no guarantee they'll change for the better! On the other hand, if you really love a certain part of town but it's out of your price range you may want to consider buying a less-than-perfect home then doing renovations. They can be quite expensive so try to make improvements that will be reflected in the value when you sell. These renovations have been found to have the greatest payback: kitchen 70%, bathroom 68%, interior painting 65%, exterior painting 62%.
Tips on choosing a suitable neighbourhood:
•When you find a locale you like, walk around it. See what it's like from street level.
•Are the people friendly?
•Are there stores and recreation facilities nearby?
•Contact the local school board if you have children. Do local schools provide good education opportunities? If applicable are there private/religious schools?
Figure out what you can afford:
Consider how much you currently need to live on and how much you actually have leftover every month. People have a tendency to create budgets that look nothing like reality - when we should have $400 left over, for some reason we only have half that.
Consider these basic costs of buying a new home:
•Most homes require a down payment of several thousand dollars.
•Monthly mortgage payments can be 1/3 of the average person's annual net income.
•You may want to pay for a home inspection. Consider more than just the structure. Ask the inspector to check for asbestos, radon, animal infestation and lead.
•Moving costs can be from a couple hundred to several thousand dollars depending on the distance of your move and the quantity of belongings.
Financing
The sort of home you can afford depends on several things:
•How much you have saved
•How much you earn
•Past earnings
•Your credit rating
The past has a way of haunting new homebuyers. If you are concerned about your credit rating you can usually get a free copy of your rating report from your local credit bureau. Normally all that's required is a couple pieces of photo identification. Remember, a few late payments or disputed bills can besmirch your record. Try to pay everything on time and don't have more than two credit cards. A bad rating can spell trouble getting a mortgage or you end up paying more for your mortgage as a form of insurance to the lender.
Pre-Qualification
This refers to documents from a bank or other lender indicating that you have the financing to back up your offer on a house. Pre-qualification is free and most lenders are happy to sit down with prospective buyers and figure how much they can afford. Having an accurate idea of price range will save time in the bidding process. If there are several people making offers on your dream home, being pre-qualified can make your offer more attractive since financing is not in question. It is important to note, however, that lending institutions will base their final decision about a mortgage on ability of the buyer to service the debt as well as the property. Most lenders state that the two components go hand in hand - the buyer with the ability to repay a mortgage and the property as security in the event of default on payment.
By taking all these points into consideration, you can worry less about the process of buying and get busy finding your ideal home!
Please visit www.marianogigante.com for the best new listings and real estate resources you will find.
GTA REALTORS® REPORTING JANUARY MID-MONTH HOUSING STATISTICS
TORONTO, January 18, 2010 - Greater Toronto REALTORS® reported 1,749 existing home sales on the Multiple Listing Service (MLS®) during the first two weeks of January.
This result was almost double the 888 sales reported for the same period in 2009, when sales had dipped to a recessionary low.
“We have had a strong start to 2010,” said Toronto Real Estate Board President Tom Lebour.
“Widespread sales growth in terms of geography and housing type indicates that many households remain confident in their ability to purchase and pay for a home over the long-term.”
The average price for transactions in the first two weeks of January was $395,307, compared to an average of $332,495 for the same period in 2009.
“Double-digit average annual price growth will continue through the first quarter of 2010 as sales remain high relative to listings and we continue to make comparisons to last year’s winter downturn,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Source: Toronto Real Estate Board
Greater Toronto REALTORS® are passionate about their work. They adhere to a strict
Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 29,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board.
Please visit www.marianogigante.com for the best new listings and to find out how I can sell your home fast and for the best price possible.
This result was almost double the 888 sales reported for the same period in 2009, when sales had dipped to a recessionary low.
“We have had a strong start to 2010,” said Toronto Real Estate Board President Tom Lebour.
“Widespread sales growth in terms of geography and housing type indicates that many households remain confident in their ability to purchase and pay for a home over the long-term.”
The average price for transactions in the first two weeks of January was $395,307, compared to an average of $332,495 for the same period in 2009.
“Double-digit average annual price growth will continue through the first quarter of 2010 as sales remain high relative to listings and we continue to make comparisons to last year’s winter downturn,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Source: Toronto Real Estate Board
Greater Toronto REALTORS® are passionate about their work. They adhere to a strict
Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 29,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board.
Please visit www.marianogigante.com for the best new listings and to find out how I can sell your home fast and for the best price possible.
Tuesday, January 12, 2010
Looking to sell a home in Olde Meadowvale Village or Levi Creek?
I have been living in the Olde Meadowvale area for almost 10 years now and have always seen between 90-100 active listings. In the L5W area code there are almost 6000 homes and lately there are only 17-20 active listings. Right now I have 2 families looking for homes in the area but there is nothing available.
I am hoping people take advantage of this busy market. Low interest rates and multiple buyers willing to pay full market value for a well maintained homes will not last for ever. I would like to start seeing more listings come up in the area. If you or someone you know in the area is looking to sell a property please contact me I may have the right buyer for your home.
I am hoping people take advantage of this busy market. Low interest rates and multiple buyers willing to pay full market value for a well maintained homes will not last for ever. I would like to start seeing more listings come up in the area. If you or someone you know in the area is looking to sell a property please contact me I may have the right buyer for your home.
Friday, January 8, 2010
The HST and You
Many clients have been asking me lately if the HST will effect their real estate transaction. The answer is both Yes and No.
The HST legislation has been passed and is coming soon. If you have purchased a new home that is closing after July 1st, 2010 it will be subject to 13% HST based on the purchase price IF the home is over $400,000.
Some builders are adding that to the price you pay but some are not. Be careful if you are planning on buying a brand new home this year. Ask your builder point blank if HST has been included or you may be hit with an unpleasant surprise upon closing.
If you are planning to sell your home you need to be aware that Realtor commissions which used to only be subject to GST(5%) now need to be subject to HST(13%) IF your home closes anytime after July 1st 2010.
A home that has sold for $500,000 at 5% commission would pay $26,500(incl GST) before July 1st 2010 and $28,250(incl HST) after.
When buying a resale home you will not pay HST on the purchase price but you will need to pay HST for the lawyer, movers and home inspectors.
My advice is if you are considering a new home in that will not be built before July of this year is to contact me and I will find you a newer comparable resale home for a similar price and you will save the HST.
If you are selling your home you should take advantage of this hot market, list this spring and have it close before July 1st 2010 and save the HST on my already low commission.
I look forward to hearing from you and to answer any of your real estate questions.
Please comment below or visit www.MarianoGigante.com for more details.
The HST legislation has been passed and is coming soon. If you have purchased a new home that is closing after July 1st, 2010 it will be subject to 13% HST based on the purchase price IF the home is over $400,000.
Some builders are adding that to the price you pay but some are not. Be careful if you are planning on buying a brand new home this year. Ask your builder point blank if HST has been included or you may be hit with an unpleasant surprise upon closing.
If you are planning to sell your home you need to be aware that Realtor commissions which used to only be subject to GST(5%) now need to be subject to HST(13%) IF your home closes anytime after July 1st 2010.
A home that has sold for $500,000 at 5% commission would pay $26,500(incl GST) before July 1st 2010 and $28,250(incl HST) after.
When buying a resale home you will not pay HST on the purchase price but you will need to pay HST for the lawyer, movers and home inspectors.
My advice is if you are considering a new home in that will not be built before July of this year is to contact me and I will find you a newer comparable resale home for a similar price and you will save the HST.
If you are selling your home you should take advantage of this hot market, list this spring and have it close before July 1st 2010 and save the HST on my already low commission.
I look forward to hearing from you and to answer any of your real estate questions.
Please comment below or visit www.MarianoGigante.com for more details.
Wednesday, January 6, 2010
2009 Market Wrap Up
This past year has been quite the roller coaster ride in real erstate. The market had started to slow down in the fall and winter of 2008 and into 2009 sales and prices continued to be depressed. These type of lower home prices, decreased number of sales and longer days on the market has not been witnessed since the mid 1990’s
In 2009, January and February showed an average 40%-50% decrease in number of sales and an average 9.3% price drop, homes were also selling in an average of 50 days on the market.
By the spring, the market began to pick up in March and April and became more promising. The number of sales increased, however homes were still selling about 9.5% less then in the spring of 2008.
Activity really started to elevate in May and June with a May sales record of close to 10,000 homes sold breaking the 2008 top month’s sales record. June was even more impressive with almost 1,500 more sales than May setting a new sales record for 2009. Sales prices we more balanced with a slight increase of 0.7% for the same time last year with an average of just less than 40 days on the market.
In the summer of 2009, homes kept selling at a rate approximately 29% higher then 2008 and with an increase in price of 6.2% and a impressive only 30 days average on market.
The fall of 2009 boasted sales of 53% more than in 2008 with an average price increase of 15% around this time last year. Also with just over 20 days on market which is very impressive since it was taking twice as long to sell a home in the fall of 2008.
November was also much improved over last year with average price increases of 9% versus 2008 an average of only 20 days on the market.
December 2009 was even more impressive with over double the sales of last December and in W19 which is our district of North West Mississauga, homes were selling very quickly and for an average of 24% more than this time in 2008.
January 2010 appears to turn into another record breaking month with historically low interest rates and low inventory of homes and many buyers out there looking to purchase in the next few weeks.
I believe we will be doubling the sales again from January 2008 and I am estimating a 15%-25% increase in sales price from this time in 2009.
In my professional opinion, if you have a home you are thinking of selling in this market will bring you top dollar for your home and if it shows well have it sold in a record time. Please contact me if you have any questions about the market or if you are interested in listing or purchasing a home in the next few months.
In 2009, January and February showed an average 40%-50% decrease in number of sales and an average 9.3% price drop, homes were also selling in an average of 50 days on the market.
By the spring, the market began to pick up in March and April and became more promising. The number of sales increased, however homes were still selling about 9.5% less then in the spring of 2008.
Activity really started to elevate in May and June with a May sales record of close to 10,000 homes sold breaking the 2008 top month’s sales record. June was even more impressive with almost 1,500 more sales than May setting a new sales record for 2009. Sales prices we more balanced with a slight increase of 0.7% for the same time last year with an average of just less than 40 days on the market.
In the summer of 2009, homes kept selling at a rate approximately 29% higher then 2008 and with an increase in price of 6.2% and a impressive only 30 days average on market.
The fall of 2009 boasted sales of 53% more than in 2008 with an average price increase of 15% around this time last year. Also with just over 20 days on market which is very impressive since it was taking twice as long to sell a home in the fall of 2008.
November was also much improved over last year with average price increases of 9% versus 2008 an average of only 20 days on the market.
December 2009 was even more impressive with over double the sales of last December and in W19 which is our district of North West Mississauga, homes were selling very quickly and for an average of 24% more than this time in 2008.
January 2010 appears to turn into another record breaking month with historically low interest rates and low inventory of homes and many buyers out there looking to purchase in the next few weeks.
I believe we will be doubling the sales again from January 2008 and I am estimating a 15%-25% increase in sales price from this time in 2009.
In my professional opinion, if you have a home you are thinking of selling in this market will bring you top dollar for your home and if it shows well have it sold in a record time. Please contact me if you have any questions about the market or if you are interested in listing or purchasing a home in the next few months.
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