Ask Your Agent - Oshawa This Week Wednesday Edition December 3, 2008  

Question:
Lindsay, I read recently that the number of homes sold in the GTA has dropped by 38% and that values have dropped by 10%. With all of the uncertainty is real estate still a good investment? 

Claire 

Answer
Claire, in a “round about” way of answering your question lets look at the events of the past month south of the border. Americans chose a new president, and if you get past the big “firsts” with the results, Barack Obama was elected because he offered hope to America. His message was positive, fresh and completely different from the doom and gloom messages in the media. So what does this have to do with your question? Well, when the public begins to believe that things are bad, it is those people who have hope in the economy and faith that things will get even better that lift our spirits and get thing rolling again. So let’s look at some positives and dispel some rumors.  

The statistics you are referring to are the ones that the Toronto Real Estate Board released earlier this month. They include the areas surrounding Toronto and literally thousands of properties and millions of people. Let’s examine the statistics for Oshawa/Whitby and Courtice/ Bowmanville. 

Year to date Statistics, compared to year to date Oct/07.
Area Homes For Sale Sales Average Sales Price 2008 Price Change
Whitby +10% -7% 275000 +1%
Oshawa +4% -15% 208450 +1%
Courtice/Bowmanville +8% -8% 231000 +2% 

How interesting! The GTA is down 38% in sales yet Whitby is down only 7%. As well, the prices in all three communities are either the same or have increased marginally. This shows that the market is still robust and homes are selling. (In the above 3 communities 345 homes were sold in Oct/08). There are more homes for sale than there were last year, although there were fewer sales. However, the numbers are quite positive when you compare them to the statistics you mentioned.  

Now to answer your question about real estate being a good investment, take a look at the graph below. In 2000, the average home in Oshawa sold for $135,000. In October, 2008 the average had increased to $208,450. That means that if you purchased your home in Oshawa in 2000 your home has increased in value by 54%. And remember. your home increases tax free, so this is a net increase.  

Here is a quick look at the increases in our area since 2000.
Oshawa Whitby Courtice/Bowmanville
2000 $135,000.00 $189,500.00 $156,000.00
2001 $139,000.00 $202,000.00 $162,500.00
2002 $154,000.00 $214,000.00 $170,500.00
2003 $163,000.00 $232,000.00 $185,000.00
2004 $176,900.00 $242,500.00 $202,000.00
2005 $188,000.00 $256,500.00 $218,000.00
2006 $195,000.00 $258,000.00 $220,000.00
2007 $207,000.00 $271,700.00 $226,000.00
2008 to Oct $208,450.00 $275,000.00 $231,000.00
Increase to 10/08 54% 45% 48% 

Real estate is and has always been a good investment. It is a long term investment given the fact that the market fluctuates up and down on a yearly basis. So we have seen that the values are up in the past 8 years, the number of homes for sale is up and home sales are down but still selling – so where are the opportunities? 

When the market calms in sales usually the first segment of the market to slow is the highest price ranges. For instance, sales of homes priced between $375,000 and $400,000 in Oshawa have slowed down as we have moved into the fall market. Since July, only 3 homes sold in that price range, and one of which was listed for $429,000 and eventually sold for $375,000. If there was ever a time in the past decade to move up it would be now! 

I am not suggesting that you can go out and lowball offers or “get a steal” but with more selection to choose from there inevitably will be bargains. There is an expression in sales involving using a “velvet hammer”. This means negotiating firmly but understanding that both sides need to feel like they have won for a sale to take place.  

I have worked in a market such as this in the 1990’s and my recollection is that buyers began to select homes based on needs and wants rather than in a busy market where there was no more passion involved in buying a home than a pound of ground beef or a stock purchase. Buyers are more selective and sellers understand that condition and pricing is the foundation of a smooth selling process. 

This is a market I love and excel in – one where creative marketing strategies are important, relationships are built with clients, and with a lot of hard work and determination houses are bought and sold and everyone is happy. 

Claire, real estate is a good investment. It needs people like you and I to reinforce to the people we meet on a daily basis what a special experience it is both personally and financially to own your home, so unpack your velvet hammer and go shopping! 

Ask Your Agent - Oshawa This Week Wednesday Edition November 26, 2008  

Question:
I have been reading the ads in the Oshawa This Week and online for a while now and I get confused with the Real Estate lingo and acronyms. Can you explain what elf, dt?s and egdo can possibly mean? Also, how do I interpret things like cozy or hurry and won?t last? 

Dan 

Answer:
Dear Dan: I have to admit sometimes the letters or acronyms that realtors put into their ads can be difficult to understand. I find myself in a fun way trying to figure them out. Some tend to be quite the word puzzle. Here are a few of the common and funny words, descriptions and acronyms I have found along with their definitions. 

Some agents use these short forms to describe features and upgrades: 

Dt’s - drapery tracks
Elf’s - electric light fixtures
Bldm - broadloom or carpeting
Mffr - main floor family room
C/A -central air conditioning
Fag - forced air gas heating
Sgwo - sliding glass walkout
Wicc - walk in clothes closet 

Here is a list of interpretations of words you might commonly find in
marketing: 

Charming/cozy - small; nothing but a single bed fits in any bedroom, Low maintenance - no yard, kids have to play on the street, Bright and sunny - drapes and blinds not included, Executive neighbourhood - high taxes, Park like setting - at least one tree on the street, Natural setting - forget about planting, the deer and squirrels will eat everything, Playground nearby - all summer long the street is an obstacle course due to road hockey, Tudor styling - two bedrooms upstairs, cold in the winter, hot in the summer, Meticulously maintained in the original condition - you don’t need help with this one! Single car garage - your Ford Escort fits in the garage but you need to crawl out the sunroof, Large family room - at a minimum the basement has carpet and painted walls, Lots of storage space - basement is too small to be called a family room, Amazing views ? good view of your neighbour’s bedroom window, Efficiently designed kitchen - two people cannot be in it at the same time, Pet friendly neighbourhood - the front yards are a minefield, Neighbourhood watch - your neighbour has a professional pair of binoculars. 

Dan, I have had some fun with your question and not all ads are misleading. Many identify the features and benefits that help people get excited about a home. My suggestion is once you have noticed an ad in the paper call an agent and have a list of questions to ask to identify if the property is one you might want to visit. There are more tips on my web site at www.soldbylindsay.com 

P.S. my favourite new term is “knife catcher”. This is a person who is waiting to buy at the bottom of any market.
 

Ask Your Agent - Oshawa This Week Wednesday Edition November 20, 2008  

Question:
Lindsay, we are in the process of buying a home and I have been doing some research with regards to the role a Lawyer has in the closing of a home. I have read about title insurance, what exactly is it and how does it protect me? 

Mike of Oshawa On. 

Answer:
It is nice to see you have been doing your homework before buying a home MOO. Title insurance has been a popular choice in our area for the past few years by home buyers and is something typically a lawyer handles. It is an insurance policy that protects residential and commercial property owners and their lenders against losses related to the property’s title or ownership. There is a misconception about title insurance in that it replaces a survey. It may eliminate the need for a new up to date survey as this insurance is acceptable to most lenders in lieu of a survey. However, the survey has uses other than for a lender when funding a mortgage. (for property lines, fencing etc.) 

Title is a legal term that means you have ownership of a property and is commonly referred to as having a “deed” to a property. So we know what title means and it is known that insurance is a way of protecting something of value, but what exactly does title insurance protect against? Mike, here are the basic losses this insurance protects against: 

- Unknown title defects (title issues that prevent you from having clear ownership of the property);
- Existing liens against the property’s title (e.g. the previous owner had unpaid debs from utilities, mortgages, property taxes or condo charges against the property);
- Encroachment issues (e.g. a structure on your property needs to be removed because it is on your neighbor’s property);
- Title fraud (a form or real estate fraud typically involving a fraudster using stolen personal information, or forged documents to transfer your home’s title to him/herself, or to someone else, without your knowledge. The fraudster obtains a mortgage on your home and disappears with the money);
- Errors in surveys and public records, and
- Other title-related issues that can affect your ability to sell or mortgage your property. 

Title insurance is paid only once, and can be either done at the closing of a property or added to an existing home by the homeowner at any time during their ownership. The insurance coverage is valid for the duration that the property is owned by the insurer. I called a local law office and was given these approximate costs for title insurance; 

- up to $200,000 purchase price for a new purchase $197.00
- over $200,000 purchase price for a new purchase $251.00
- insuring an existing home up to $500,000 - $243.00 (plus administration costs) 

Title insurance can be purchased for houses, condominiums, cottages, rental units, vacant land, cooperatives and rural properties.  

Some of the things that title insurance does not cover are, title defects that are already known, environmental hazards, problems that could have been discovered if a new survey was done, unrecorded liens and zoning bylaw violations.  

Mike, title insurance is a wise purchase when you are closing on your new home. I would advise you to discuss the pros and cons with your lawyer when you meet with them and make your decision based on the information you are given. More info on title insurance can be found at www.fsco.gov.on.ca – more tips about buying real estate can be found at www.soldbylindsay.com 

Ask Your Agent - Oshawa This Week Wednesday Edition October 29, 2008  

Question:
Lindsay, we had our house on the market this past summer and it did not sell. My wife and I are quite disappointed and are trying to understand what happened. There were lots of showings, in fact a few second showings by the same buyer but no offers. The price might have been a bit high but why wouldn’t we see at least one offer? 

Michael M. 

Answer:
Thanks for the question Michael. What you experienced happens far to often in our market; where good people list their homes and do their best to make them appealing to buyers only to come to the end of the listing period scratching their heads trying to figure out what happened. I have mentioned before in a past article that we are in a “price war and a beauty contest”. The homes that are selling in today’s market are the best priced and the best looking. A way of describing pricing is to break the available homes into three areas. The first area is called the “in market” segment. This area could be described as having amazing features for the price and being positioned in the top 10% of values currently available. These homes are shown often and see an acceptable offer in a very reasonable time period. A 2nd area is called “out of market” and describes homes having a price that are considerably higher than market value and/ or features that are not equal to other homes in the same price range. They get almost no showings or inquiries. The 3rd and most frustrating area is called “no mans land”. This area is where the home is marginally over market value for the location, features and condition, however a high number of showings take place yet no offers in or no real serious activity happens. This is the most frustrating area due to the fact that the homeowner sees activity, is troubled by the large number of showings and yet has no success.  

Michael, it sounds like you were in the “no mans land” when you were on the market. I have no idea where your home is or what it looks like, but one observation would be that the price was too high. By the sheer number of price reductions happening on a daily basis on our real estate board more homes are overpriced than those who sell without any reductions. Another reason may be the property was not staged or did not show off the features creating excitement in the buyer’s eyes. 

Pricing is a complex formula; you want to get the most money your home can possibly get in today’s market, but also do not want to be so highly priced that it turns buyers away. Accurate pricing or “positioning” is done by critically looking at and interpreting the available homes for sale or the “competition”, and looking at what has been sold recently in your area. Depending on the type of market, more weight will be put on values of homes sold than listed for sale or vice versa. The sales show you trends of historical pricing and the available homes show how the market is doing on a daily basis. How long have these homes been for sale, have they had price reductions or been listed for sale more than once are indicators of current trends. To give you a sense of how many homes are priced incorrectly, in the past 30 days 142 homes have expired not sold in Oshawa. Currently we have 771 homes on the market in Oshawa, which indicates that 18% of the homes are not selling, at least during that listing period. 

Michael, pricing a home is as much an art as it is a science. A realtor has to take into consideration trends, activity and the local economy and then conflate that with the benefits and features the home offers. Markets come and go, some are good and some a bit soft, but the principles of selling never change. Stage your home to show it in its best possible way, lead the market with competitive pricing and work with an agent who is a master at creative marketing and negotiations. The sold sign will take care of itself if all of these elements are in place. Hope this answers your question Michael and for more info and tips go to www.soldbylindsay.com
 

Ask Your Agent - Oshawa This Week Wednesday Edition October 23, 2008 

Question:
Lindsay, my husband and I are starting to think about buying our first home but honestly, we are nervous. We have read that the market is somewhat unstable and what is happening in the U.S. Can you give us some step by step advice on how we might buy a home that we can afford and one we will love. 

Stacey 

Answer:
Stacey, thanks for the email. Buying a home is a process, and like any other process you will go through the more you educate yourselves, the better your chances will be of getting exactly the home you want, and one within your budget. If we can learn anything from the U.S. meltdown (at least lessons we can apply in buying here in Durham) it is to make sure we are approved with a lender and our jobs are stable. The buying process is one that should be filled with joy, excitement and pleasure, not stress. A detailed plan helps to reduce the stress level. 

So where do you start? Here is the process I would recommend: 

1. Do your Homework: this begins the process and typically is done over many cups of coffee and with lots of “free advice” from family and friends. Start with a plan; where is it you could see you are your family living? If you currently have children or if they are planned for the near future what school areas do you want to be in? How much cash do you have to use as a down payment and how much is available for household items once you move into your home. How secure are your jobs? How much can you afford if you drop to one income as your family grows? Similar to buying a car, if you decide on a Saturday morning you want a new car and wander into a few dealerships without planning in advance and buy that afternoon your chances of making a mistake are high. The more you discuss and identify what your needs and wants are, the better you will be at making a decision. 

2. Create a budget: look at your income and your debts and try to think of the purchase of a home in a 5 year cycle. Are there any big expenses you can see in the future that might make your cash flow tight, or can you see any changes to your income or cash flow in a positive way? Banks typically will lend much more than you will want to borrow. For example, if you and your husband make $100,000/ yr and you’re only debts are car loans that equal $1,000/mth, the bank will qualify you for a mortgage of about $370,000 which probably is much more than you want to borrow. Be reasonable when you choose the price range you feel comfortable buying in and then create a budget around it. The budget should include after sale costs such as appliances, décor and new furniture. 

3. Closing Costs: go online and become familiar with how much you will need on top of your down payment to purchase a home. (things such as lawyer costs, home inspectors, Land transfer tax etc.) You can check out CMHC, any of the banking or local mortgage brokers sites to help you figure out the costs involved. This should be covered in your meetings with your agent but it is best to go in knowing a little about what costs you will need to cover when you buy. 

4. Get approved with a lender: This means the “real deal”, meaning, you need to have a credit report done and have a lender approve you to the point where you can buy a home subject to the home qualifying. Ask for written confirmation of the approval. Many buyers are shopping for a home with “verbal” approvals which have little value, (pun intended) so it is best to have a lender tell you in writing what you can afford and which options are available to you.  

5. Hire an experienced, trustworthy Realtor: An agent is your guide through the process and ultimately will be the reason you look back on your purchase with fond memories or the memory of a stress filled experience. A good Agent will work with you on your budget, the costs to buy, your banking information and areas/ types of homes in your range. By “hiring” I mean to interview agents until you find one you feel comfortable working with and sign a Buyer agreement with them. This agreement allows the Agent to represent you and spend time knowing that he or she will get paid for your purchase. (you do not directly pay for your agent the commission comes out of the price of the home) The agent is the one who will educate you about how the process works. From identifying what your needs and wants are to the showing process and ultimately to drafting the offer to purchase and negotiating on your behalf.  

6. Accepted offer Stage: Your Agent will help you thru this process; you will need to line up a home inspector, finalize your financing, contact a lawyer and an insurance broker and contact a moving company. (or plan to spend money on a few cases of beer and some strong friends)  

7. Move in, sit back and clink the champagne glasses! 

Stacey, I hope these ideas will help guide you thru the process of beginning the search leading you to your dream home. Buying a home does not need to be scary, it should be an enjoyable experience and if you do your homework, choose the right Agent, you will be relaxing in your home in the very near future. For more tips on planning your move go to www.soldbylindsay.com 

Ask Your Agent - Oshawa This Week Wednesday Edition October 15, 2008 

Question
Should I buy now, or will the market drop?  

Answer:
Answer: This weeks question(s) came from a buyer and a seller from my website. One name was Brad Pitt and the other Dracula. (so I know they are real people) Nevertheless, the questions are valid and ones I get on a daily basis. Today’s market is a complex one, with many factors affecting it, real or imagined. If you listen to the media you would think that the sky is falling, at least south of the border and the hurricane that is hitting the U.S. will eventually make its way here to Durham Region. So how did September, the month where the stock market took a dive, affect our local real estate market? 

In the areas of Oshawa, Whitby and Bowmanville/ Courtice here is what happened (comparing Sept/08 to Sept/07): The number of homes for sale was up 13% over last year; the sales up 6%. There were 1,590 homes currently listed for sale in Sept/08 and 426 homes sold. Prices, well they have maintained and increased ever so slightly.  

So things are moving and the market is quite active. That being said the buyers have a lot more to choose from compared to this time last year and many of the homes on the market are priced unrealistically adding to the confusion of pretty much everyone. The media is good at sending mixed messages, and when they do, sellers believe the optimistic reports and the buyers believe the negative ones.  

The questions above seem to come from a feeling of uncertainty and misinformation coming from many sources. I would first question both Brad and Dracula that if now is the right time to make a move for them and their families? (still pondering if Dracula is married and has kids or do vampires have families) If so as a seller, you need to price your property realistically and have an agent who is an expert at marketing it. There were 426 homes sold locally last month and the Durham Region Assoc. of Realtors posted that on average they sold for 98% of asking which proves that if you have a good home, in a good area, priced right and the right agent working for you the chances of selling are high. For Brad, if you are planning a move make sure the timing is right. Make sure that Angelina and the kids will live in Durham Region, but also that your job is secure and you have the money in reserve to customize the home to make it comfortable.  

Asking if the market will drop is a “crystal ball” question but implies that things are not doing well. The stats prove otherwise. If now is the right time to make a move, go for it! There are great selections for buyers and for sellers the market is active and stable. Here in Durham Region things are good, the market is fine and last month 426 sellers celebrated with a sold sign. (by the way we sold 6% more homes last month than Sept/07) 

P.S. if you are a buyer and thought about buying last year but waited for the prices to drop, how much did you spend on rent? The prices have pretty much maintained locally, so if you are waiting for a bell to ring at the bottom the sound you might have heard is a cash register ringing up sales. 

Lindsay Smith, Broker 

Ask Your Agent - Oshawa This Week Wednesday Edition October 8,2008 

Question:
Lindsay: My wife and are thinking of either renovating or selling. If we renovate and end up staying for a year or so which renovations do you feel will add to the value of our home? 

Heather 

Answer:
Thanks for the question Heather, it seems that people are always curious about renovating and wondering if they will get paid back on their renovation investment once they decide to sell. The first question I would have is, “how old is your home”? Homes tend to have cycles with regards to upgrading. For instance if you owned a newer home the renovations will typically be adding features to increase your families enjoyment of the home, but with a 20 year old home the renovations will be more in line with maintenance types of upgrading along with any luxury additions the owner might enjoy. A new home might require fencing, landscaping, decking, central air or a finished basement whereas a 20 year old home may need new windows, shingles, furnace or other items in need of replacement along with kitchens, bathrooms etc.  

When looking at a return on investment, a buyer who is viewing a newer home may have ideas on what they need to do to personalize the home to their standards. These items might be in a 1-5 year plan, so when out looking the buyer views asking prices based on the value of the home as it currently appears. On the other hand, if a 20 year old home is in need of a new roof, furnace and windows it might possibly cause the buyer to discount the price to allow themselves to do the necessary repairs immediately.  

So Heather, renovations seem to fall into two categories: necessary upgrades and added value upgrades. Here is a list of return on investment for some of the more common upgrades. (from a Re/max International survey) 

- bathroom remodel 78.3%
- kitchen remodel 78.1%
- family room addition 68.6%
- basement remodel 75.1%
- master suite addition 69%
- siding replacement 83.2%
- window replacement 83.2%
- roofing replacement 67.4% 

If you are considering renovating I would first consider which renovations would have an impact on the enjoyment your family would have in your home. Kitchen and bathroom renovations are typically the best investment as they tend to be two of the biggest selling features that buyers are looking for when considering a home purchase. That being said, an older bungalow in tip top condition and with all of the maintenance upgrades done is currently one of the most desired types of homes. Once you have identified the renovation you are interested in doing do you homework. Check into financing if you need it with a lender and interview at least 3 different contractors before you decide.
Renovations should either add value to your lifestyle or to the salability of your home, so renovate with common sense and you will find that if you choose the right improvements when you go to sell your home it will sell easier, for more money and with less hassle. Heather, I hope this answers your question and for more home tips visit www.soldbylindsay.com 

Ask Your Agent - Oshawa This Week Wednesday Edition October 1, 2008 

Question:
¬¬Lindsay: we are considering selling our current home and have a simple question. “how does a realtor figure out what our home is worth”. 

Jessica. 

Answer
Thanks for the question Jessica. There really is more to establishing price on a home than playing “pin the tail on the donkey”. It takes different sets of skills from the agent, from reading the competition on the current market to comparison of recent solds and then forecasting how the market will perform over the next short while. 

My first thoughts when thinking about setting market value are, “features are tied directly to the property being sold and benefits are tied to the buyer”. This is the start of getting to a market value price. Sellers and Agents set the price but it is the Buyers that set the value of the home. Value is established in the Buyers mind by doing a comparison of features and benefits being offered by current properties available today, but more importantly by establishing which features are ones they are willing to pay for. The old adage that kitchens and bathrooms sell homes has some truth to it, but today homeowners are putting many upgrades into their home and are unaware if they will increase market value. For instance, a hot tub may have just been installed by the Seller at a cost of $8,000 but to a buyer they may have to look at costs of removing it if they are not interested in owning one. Some features have little or no value to the Buyer or in fact they may detract from market value having to be changed or removed. 

A few years ago when we were in more of a Sellers market pricing properties was much easier than it is today. The Agent would look at the recent sales and establish a price a bit higher that what had been sold. Available properties were used but it truly was the sold homes that set prices. There were times over the past decade where if the Agent made a mistake and priced the home to high the market would catch up and the home would sell.  

Today things are much different. With more inventory of homes for sale and fewer sales taking place, pricing becomes a much more complicated process. Getting back to the “features and benefits”, the first thing I do is to look at the available homes for sale and review the price, what they are offering and how long the homes have been on the market. Using the sold properties as comparisons is still valuable but they need to be very recent sales. A home that sold 3 or 4 months ago may not work if the market has changed since then or if the yearly timing is different. In an uprising market like we have enjoyed over the past decade it was risky to overprice a home but in today’s market an overpriced the home will just sit in “no mans land” frustrating everyone in the process. It is better in this market to price right at market value or just a shade under it. Pricing a home aggressively causes the same reaction with the buyers today as it did over the past few years. As and example, in the last month I have been in 4 bidding wars, with the most recent having two buyers competing and the home selling for 99.6% of asking.  

In my experience, I have found that sellers do not sell for more money by increasing their asking price in order to create negotiating room. The closer they are to the right price the less the buyers will negotiate. Serious Buyers know good deals when they see them and when they do they feel the need to move quickly before they lose the home to someone else. In todays market it is possible to have buyers making buying decisions quickly, however they only do when homes are priced to cause a stir in the marketplace. 

I have mentioned before that we are in “a price war and a beauty contest” so the better your home looks and the more realistically it is priced will ensure a timely sale. Jessica, I hope this helped with your question and for further tips go to www.soldbylindsay.com 

Ask Your Agent - Oshawa This Week Wednesday Edition Sept 24, 2008 

Question:
Dear Lindsay: I am thinking of selling. Should I do it now or wait till next year. 

Marian V. 

Answer:
Dear Marian, 

This is a question I get constantly when folks are considering a move. “Should I sell now or in the spring; should I wait till the fall; is it better to list my home in the summer for a school year closing”? Whatever month you are in, the question arises if this month is the right month to sell. So in order to answer this question let me get my crystal ball out and shine it up.  

The first thought that comes to mind when a client asks this question is “if you could pick a perfect time to plan a move, independent of the time of year would you choose this month? Or would you wait”? Timing has so much to do with a move; in that I mean timing with regards to the family, not the market. In a perfect world the best time to sell is February- April and the closing dates come in July – August just before the kids start school, but not everything works in a smooth perfect historical timeline. When I first started selling real estate in the mid 80’s you could bet money that the spring market was the best time to sell, but over the years the curves of market activity have literally been all over the place. I have seen years where November was one of the most exceptional months for selling and where the summertime has been incredibly active. Other years have seen the spring time to be flat and a poor time to sell. So really there is little rhyme or reason to market activity these days. If you are planning a move you can only gauge today’s activity of competition and the sales that have taken place over the past month or so to give yourself a sense of how the market is behaving. Trying to forecast how the market will look, for instance in the spring of next year is anyone’s guess.  

A professional realtor can make comments on and offer advice for the current market, but any future advice beyond a month or so really comes down to thoughts with fingers crossed and hopeful expectations.  

So Marian, I would suggest taking a look at your personal situation and made a decision if now is the best time for you and your family to make a move and if so get the process started. If not, maybe waiting might be a good position to take if it best suits your family. The market today is healthy, active and exciting, but again as I have mentioned before, we are in a “price war and a beauty contest”, so the better you price your home and the more it shines will have a big factor in how fast a sold sign appears and how good the terms are. Hope this helps Marian and for more tips go to www.soldbylindsay.com 

Ask Your Agent - Oshawa This Week Wednesday Edition Sept 17, 2008 

Question
Lindsay: My husband and I are planning a move and don’t know if we should buy first or sell our home first. Can you help us?
Christine 

Answer:
Christine, this is the age old question. I have been helping people with this question for over 20 years and have found it comes down to a decision based on personal and family needs. People typically move for a couple of basic reasons. Some people move with profit as the incentive. They buy smartly and when they decide to move it is when they can realize a profit. Other people or families move for reasons based on needs. A need may arise for more space or for less square footage, to be closer to a hospital or school or to a home with fewer stairs. These people, even though money is important are more concerned with matching closing dates, getting exactly what they want or alleviating as much stress as possible. Before answering your question, I have found that both reasons for selling are valid and can work out well. 

So what are the pros and cons of buying or selling first? For those who buy first and then sell later, the pros are that they get exactly what they want for their next home and typically buy the home a bit cheaper given that they are buying without a condition of sale. They get to choose their closing date. If the deal isn’t perfect they can choose not to buy. The cons are when they sell they need to match closing dates which might get a bit tricky and may require some extra financing. The big risk is their home taking a long time to sell and possibly not selling for what they had hoped. 

The pros of buying first on condition your home sells, and then selling is that you get exactly what you want in a home, and a closing date that you can work with. You also get the protection that if your home does not sell you get your deposit back and risk little. That is the upside, the downside is that many buyers becomes emotionally attached to the home they have bought and have a short window to sell their home and the possibility exists that they may lose their dream home to another buyer. Typically to get a home sold in record time, a lower price needs to be set so in many cases they take a bit less for the home they are selling and when offering on the new home because of their condition they may pay a bit more.  

Selling first, and then buying later is another option. This is the way of making a move with the best chances of getting top value on your current home and also on the home you purchase. When you sell first you can be less flexible on negotiating the price of your home due to the fact that if you don’t sell, you have no other home to worry about matching up closing dates. Then once your home is sold, you can offer without a condition of sale making your offer stronger. However, the downsides of this method is you sell your home and cannot find the perfect home to move into or you find a home with a different closing date.  

Over the past few years I have had many sellers refuse offers with a home sale condition. This past week I had an offer on one of my listings with a condition on the sale of a home and the owners, after much discussion and direction chose not to accept it. The home had only been on the market 3 days and we chose to keep the property open with no conditional offers to hinder the sale.  

Buying and selling is stressful. Adding risk to the process causes some people added stress yet other buyers seem to deal with risk with ease. I would suggest you consult with a realtor you trust and whose advice and approach helps you to come to a decision that best suits the needs for you and your family. I hope this answers your question Christine and more info and tips can be found at www.soldbylindsay.com
Lindsay Smith, Broker
 

Ask Your Agent - Oshawa This Week Wednesday Editiion Sept 10, 2008 

Question:
We are considering selling our home and moving up to a larger one with a family room. Can you give us some ideas that might better the chance of selling in today’s market? 

Debbie Y. 

Answer
Debbie, great question! In a market where the homes are taking a bit longer to sell and the number of homes for sale increasing there are many things you can do to better your odds of selling. However, to answer it in a fun way let me share with you ways to sabotage your home sale: 

Price your home higher than current market value. Insist you need a certain dollar value, or that your home is much better than the three others that were similar and sold for $20,000 less. The right buyer will come along and see the value, no matter how few showings you have right now.  

Present your home on the marketplace without cleaning or staging it properly. “It’s our home and we live here” is your attitude. “Why clean it, paint or re-carpet it? The buyers might want to do that themselves and what if we pick the wrong colours?” Besides the next owner will probably have teenagers too and they will feel right at home in your son’s room (which smells like tennis shoes, a hockey bag and is decorated with the Sports Illustrated bikini issue.)  

Keep those odors lingering in the house. Make sure the last nights dinner smells overpowers the cat’s litter box which is housed in the bathtub. Just before showing the house spray a lot of strawberry scented room deodorizer to cover up the cigarette smoke smell.  

Allow the animals to stay during the showing. After all, it’s their home too and you really don’t have any place to take the dogs during the day. Fluffy and Skipper really don’t bite thru the skin. They usually only bite men on the ankles, not the women. Make sure you leave the nose prints on the sliding doors….. you wouldn’t want the buyer to make a mistake and walk through the clean glass! 

Keep ALL of your collections out for buyers to look at. 300 sets of salt and pepper shakers, your husband’s bowling trophies and all of your kids and grandkids school pictures are important to you. Besides if you took them off the walls you might need to repaint. You are proud of your family and want the buyers to see what a wonderful family you have raised in this home. 

Keep the unusual wall colours and décor experiments intact. HGTV has really allowed your creativity to come out and you have tried many of the decorating ideas you have seen on Trading Spaces. Perhaps the black kids room will appeal to a buyer’s teen. You don’t want the home to look bland and like every other home the buyer will go through. Besides it is just a coat of paint and if the buyers don’t like the colour they can choose their colours. 

You have already moved and the home is vacant. The buyer should understand that the pool might be a bit green and the house dusty. Can’t they just see past a bit of dirt? Trying to maintain two homes is just too painful to do every day, let alone pay someone to keep it looking fresh. Also, there isn’t any reason to let your Realtor know if you go away. If an offer comes in the buyer will be patient while your Realtor searches high and low to find you. 

Obviously I have written this in an attempt to humorously covey the things we as Realtors are told by sellers as we attempt to attractively position their home in the current marketplace. With the inventory of homes growing like weeds it’s critical for a home seller to put their home on the market in saleable condition and price it properly. The best marketing in the world will not sell an unattractive, overpriced property. Someone said recently we are in a “price war and a beauty contest”. I firmly believe this to be true. If your home is priced right and shows in the top 10% of your price range you will have buyers coming to you.  

Hope this help’s, Debbie, and for more helpful hints go to www.soldbylindsay.com 

Ask Your Agent - Oshawa This Week Edition September 3, 2008 

Question: 

Q: Lindsay, at what point in the selling process does Realtor experience become most valuable?  

Gary C. 

Answer:
A: Gary, what an excellent question. Selling a home can be a very simple or complex process and the level of experience your chosen realtor offers becomes important from the moment you make your first decisions thru to the final sale. Most agents, seasoned or newer can draw on the experience of their coworkers and other professionals within the industry however, there are certain tasks where years of experience become critical. There are 2 main points where experience become extremely important: 

1) Pricing the property. Having the knowledge to price the property at a value that will cause it to sell for the highest value in a reasonable time period takes skill.
2) Dealing with an offer. This is the most critical part of the process. You will find out how experienced your realtor is when the negotiations begin. This is a part of the selling process that the realtor does on their own and their selling, communication, negotiation and “stick handling” skills become visible at this point. 

There are dozens of decisions to make in between pricing and the sold sign. Designing a marketing program, using web tools to attract buyers, well written newspaper ads, networking with other agents and to other buyers who may contact you on other properties. These all take skills and experience and how effective your realtor is will dictate how smooth and speedy the buyer arrives. The last point; dealing with an offer is the time when the ability shows. Your realtor should be able to guide you thru an effective negotiation process, offer advice and strategies to obtain the best terms and assist you in making decisions that best suit your situation.  

There is a funny saying in business when describing a person with years of experience yet few skills; “does he have 20 years of experience or 1 year experience 20 times”. Make sure you do your homework and choose a realtor who offers solid selling skills a proven track record and an advisory relationship with the goals to get you top price and terms. You can find more tips on choosing a realtor at www.soldbylindsay .com 

Ask Your Agent - Oshawa This Week Wednesday Edition August 20, 2008 

Question:
Lindsay: 

My husband and I are considering selling our home. What advice would you give to ensure a sale that doesn’t take to much time, yet gets us the most money? 

Nicole Laframboise 

Answer:
Nicole: Thanks for the question. So many sellers have started the process of planning a move feeling like they have so many questions and where to go for honest advice. The selling process does not change much from year to year, the differences is how important the agent, and their marketing becomes in getting the home sold. Here are some ideas:
1- Choose the right Agent and interview more than one. It is important that the agent and you feel comfortable working together. When you meet with the agent have a series of questions set out to gather information on their experience, track record in your area, statistics on their list to sale ratio and average selling times
2- Price it right. Many homeowners either following the advice of an agent or on their own price their homes far above the market. The most frustrating place to be is in “no mans land” or a price range that generates showings but no serious buyers. Use the most recent comparable sold and available homes to set a price. Pricing too high at first takes away the excitement all new listings have
3- Use the 4 D’s. Declutter, decorate, donate and deodorize. In this I mean to clean out rooms so they show as large as possible. Box up, donate or store items that give rooms and closets that full look. Deodorize: olfactory senses are one of the reasons people feel comfortable in a home.
4- Do your best to keep your home in “showroom” condition. What I mean by this is to make your home available to agents, even if on a short notice basis, have it sparkling when they walk thru and remember dogs, cats, iguanas, children, underwear, car parts, lumber and power tools however interesting to your friends do little to capture the buyers interest. More tips can be found at www.soldbylindsay.com  

People fall in love with homes, that is why the one in 20 homes they walk thru will get them excited. But to “spread this love” you need to choose the agent who will market the home in creative and interesting ways at a price that will excite buyers, have the home available for showings and when the buyer walks thru the front door you need to have them go “wow”!  

Hope this helps 

Lindsay
 

Ask Your Agent - Oshawa This Week Wednesday Edition August 13, 2008 

Question:
Dear Lindsay: 

I keep hearing in the papers and on the radio that the Toronto market is still booming. Is that true and how does the Oshawa/Whitby and Clarington area compare? 

Harry Zoltan 

Answer:
Great question Harry. I will agree that for some reason, here in Durham Region the “grass is greener” comparison seems to happen when describing the Toronto markets. On researching the answer to your question, I looked at an area of Toronto that is somewhat similar to our area. The East York area, which is in the Danforth and Coxwell area. This is an area of newly built/ renovated and older homes.  

In the Oshawa/Whitby Clarington areas the year to date comparison of homes for sale/ sales, when compared to July of 2007 looks like this: 

Listings Sales
Whitby + 10% - 6%
Oshawa + 4% -16%
Clarington + 11% - 7% 

The statistics in the East York area in Toronto this year over last look like this: 

East York +6% - 16%
(E01, E02, E03)  

Over the past 23 years I have been a broker, Real estate has changed dramatically but certain business models do not change. Supply and demand are what control the market in any location. The above statistics show that our market is experiencing a calming effect as most of the GTA is feeling, but with an average of 5.5% fewer sales in our area vs -16% in the East York area we seem to be doing just fine. 

At a recent conference I attended in the US a broker said her market was “in a price war and a beauty contest”. This saying is an accurate description of where we are in the summer of ’08. In the past 10 days we have had 11 properties sell at full asking price or for more than asking! I bet if you toured these homes they would be the best priced and in the top 10% of the real estate beauty contest. Some things never change, well priced homes that show well seem to end up with sold signs. Hope this answers your question.  

Lindsay Smith, Broker
www.soldbylindsay.com 

Ask Your Agent - Oshawa This Week Wednesday Edition August 6, 2008 

Question: Lindsay, I recently sold a home that I co-owned with my best friend. I plan on purchasing another home soon and I would like to withdraw money from my RRSP for the downpayment and I am not sure how much I can use or even if I can do this. Initially I was told the the home buyers plan is for a first time buyer. What are the rules?

Carl
Whitby 

Answer:
Thanks for the great question Carl. There seems to be some confusion surrounding the Home Buyers Plan. (HBP) The basics of the plan allows a homebuyer to use monies from their RRSP as a down payment towards the purchase of a home. The maximum amount of the withdrawal is $20,000 and can be doubled if the home is being purchased by a married couple or a couple within a common law relationship. The amount withdrawn is done so tax free but must be paid back into your RRSP within a 15 year period. (in the amount of 1/15th of the withdrawal yearly) Who can use this program and the basic conditions are:  

- You cannot have participated in the plan in previous years.
- You have to be considered a first time buyer. (you have not owned a home while you occupied it as your principal residence for five years)
- The RRSP must be more than 90 days old before you withdraw the down payment. 

So to answer your question it would depend on several things. Firstly was the home you recently sold occupied by you as a principal residence? That is the most important question because if it was viewed as your principal residence you would not qualify as a first time buyer. If the home you recently sold was an investment property or one you did not live in as your principal residence you would appear to qualify for the Home Buyers Plan. A good reference guide can be found at www.cra.gc.ca Just put Home Buyers Plan into the keyword search and you can get the entire Government description of the program.  

Hope that helps and if you have any other questions just email me thru www.soldbylindsay.com  

Lindsay Smith
 

Ask Your Agent - Oshawa This Week Wednesday Edition July 23,2008 

Question: Lindsay, I have heard the term “staging” used over and over when people talk about selling a home. What exactly is staging and how important is staging with getting my home sold?  

Sarah Green 

Answer: 

Sarah, thanks for the great question. Staging is a newer term that describes what has been done by many successful sellers for years. It can be defined as: beautifying the home prior to selling. Cleaning, rearranging furniture or adding coordinating pieces and updating décor and or flooring. Staging is important when the market is slower and the competition of other homes increases and or in a busy market, to try to maximize your selling price. Most changes to impress a potential buyer and achieve the sale can be made at a reasonable cost, especially when compared to the likely extra profit on the sale or having to drop the price in order to sell. Costs in staging and presenting a property should be relative to the price of the property, possible extra profit to be made, its potential market and location. 

Staging can be as little as cutting the grass and shoveling the snow but for most homes it requires shifting furniture, dealing with outdated décor, removing household items to make spaces appear larger and having the home cleaned professionally. I recently had the experience of having a home on the market with carpeting throughout most of the home in a colour that was quite outdated. I had recommended to the sellers to have it changed and they decided to sell leaving the original carpeting. After several months, and many showings the homeowner took the home off the market, changed the carpets to a current colour and the home was sold within 2 weeks of relisting. 

Location, location, location was the saying we have used for selling real estate for years, however in todays market it is more like Pricing, condition and location. 

Hope this answers your question but if you have further questions visit my web site for tips or go to www.canadianstagingprofessionals.com
 

Real estate is an amazing and secure investment!
The average prices in Oshawa, Whitby, and Courtice/Bowmanville have increased since 2000
54%, 45% and 48%