Real Estate’s Latest News!

Real Estate’s Latest News!

I used to listen to the news and take their word for everything. As I am adding years to my career I realize that the news is not always accurate and it usually drives people into frenzy. When there is a news story I receive ten emails a day regarding a piece they heard the night before. The news says “The Market is slow”, I have five people at my next open house telling me how the market is slow because the news says so. The next week the news says the “The Market is picking up”, and I get calls from people interested in selling their house. I know stats don’t lie but the general public needs to understand that Real Estate is very local in nature. One street might be hot while is not. One type of house might have a booming market and the next might be really slow. People might be lining up for new build condos while apartments are stagnant.

I see a report every week on the news with some money analyst from a bank speaking about how high rates are going up and how it affects the market, then I will see a picture of Real Estate “For Sale” signs while they speak, then they will say something else to drive people into a frenzy for the next two weeks. If you talk to your bank or mortgage broker you’ll realize that the rates only went up a little bit which is not that big at all. Some of the banks even reduced their rates, meanwhile I saw a news report saying that same night the banks raised their rates. I was really confused that night.

Here’s one that will get the news going with crazy stories nightly:

The next topic which you will see coming down the wire is a tentative deal with CREA and the Competition Bureau. It has been years in the making but it is going to change the way Real Estate is sold and it will also not change anything. In my opinion there are many selling models in every business. There are full service car washes, and there are do it yourself car washes. The U.S. has had full service and a la carte services for years. From now on if everything goes through in the next few months, you will be able to choose what services you would like. People looking for agents who just post their house online & sign some documents are already here; I’m sorry to burst the news’ bubble. The customer just negotiates their commission to a very low rate or flat rate. It’s already here, it’s just not a cookie cutter package as we will see moving forward.

Personally I think it will give the Realtors a chance to justify what sellers are paying for. You want this and that and here is the cost. If you want nothing here is the cost. If you want a package here is the cost. It will be crazy for a while and there will be a lot of companies which come out of the shadows but I believe that it gives everybody a chance. Agents that do a lot of work to sell a house will welcome this change, agents that neglect their clients will have to either step it up or move down the ladder because these companies are coming soon and fast!

There will be a lot of stories similar to last year regarding Real Estate and there will be a lot of wrong information flying around. Make sure to get the facts from the sources, either CREA or the Competition Bureau websites. Don’t forget the news programs are here to sell their stories and sensationalize everything. It is how they get you to come back the next day and be a zombie in front of the television while they spew more fear and terror at you! They get you scared to do anything but watch their show. How about all of the time you waste watching their program, think of how much good you can do if you spent an hour doing anything else! Like reading my E-Zines. Have a great weekend!

Clean Your House = More Money + Faster Sell

Clean Your House = More Money + Faster Sell

Clean Your House for More Money and Faster Sell
Posted By ERNIE ARRIZZA on September 20th, 2010
 
 

Its a simple formula, clean your house, make more money then sell your house easier. It sounds simple and it is. Nobody wants to buy somebody’s mess and dirt. When listing your house you want to present your house as best as it could be. Cleaning your house is important because if buyers see dirt and dust, they will think what else is wrong with the place, plus its just nasty. It also means cleaning inside closets, drawers and especially corners. Buyers look in the places you don’t think they will look. Yes they do! I’m sure if you were ever a buyer you did too. I understand why, if you’re buying a house and going through this huge process you want to see how the place has been taken care of.

Here are a few tips on cleaning your house and getting it ready to sell:

Carpets: This is enemy #1. Carpets are the worst when it comes to selling houses because they hold odor, dirt and stain. (pets, spills) This is the easiest thing to clean. I suggest going to a professional to get this done, or buy or rent a deep clean machine. It is a cheap process these days, for a few hundred dollars you could own your own machine or rent one for less. My suggestion to you is to get the right solution. This is the key. If you don’t know what you are doing you could make your carpet worse, be careful!

Dust: I know this sounds weird and you probably would say of course I dust, but I’m here to tell you I find dust in the most common places, especially spider webs to go with it. Look at edges, TV screens, and especially look at your walls. I have seen some walls that have a film of dust on them but the rest of the house is immaculate. Make sure your light fixtures don’t have any webs on them. I know its hard to find webs but it is not a great thing for your light fixtures. The problem is you might have cleaned a couple days ago but those little buggers get around fast.

Walls: Like I said before make sure your walls have no dust. I would wash them and if they are some hand stains you cannot remove, paint! Paint is your friend when selling your house. Look at the bottom of your walls to determine if you need to paint. Sometimes the paint fades in different spots. Usually by doors and door frames I see spots.

Bathrooms: They should be immaculate. This is where most people pay particular attention to cleanliness. There is a good reason for that, nobody wants dirty bathrooms. If people see dirt here then most times people will not buy. I know it sounds crazy but I’ve had buyers say I don’t want this house the bathrooms are filthy.

Bedrooms:  make sure that all beds are made, floors are swept, and the room is free of clutter. In a kids bedroom, it’s okay to throw toys into a laundry basket and then set it neatly in a closet. That’s much preferable to having toys all over the floor of the closet or even worse, the room.

As you get things done, start at your front door and walk into the house. See what you notice first that needs attention and get that done. It’s probably the first thing a buyer will see too!

I suggest using a professional to get your house clean. For a few hundred dollars your house could be looking great. Many times professional use products that you can’t buy at the store which are green and sometimes more high end.

What is Your Property Worth?

What is Your Property Worth?

Being a Real Estate agent I must evaluate properties daily. Whether I am putting an offer for a property or listing a property for sale. There are a lot of factors which go into determining what a property is worth. There are many ways in which we learn how to price out a property in our courses. They are all valid methods and many agents use these methods to price out properties.

Below the graphic is a list of things that do not matter and have no impact on the current value of your home. All home owners think these things matter when in reality they do not mean anything. Here is a pictorial that I have in my listing presentation.

 

What you paid for your house: A person buying a home does not care if you got a deal or overpaid for your house. It is irrelevant. What you paid for your house is very personal. It should not come up in negotiations.

What time you invested in the property: It is a good selling point to say that you upgraded the kitchen or windows. Whether you did it yourself or you paid for somebody to do it, the person buying your house is not going to give you a cheque because you did some manual labour.

What you want to net from the sale: It doesn’t matter what you need to collect to pay for your new house. You should not even bring it up that you purchased another house right now. It shows that you have a deadline to move.

Family, friends and neighbours: It doesn’t matter what these people believe the property is worth, or what a wannabe an agent friend says it’s worth. Your property is worth what somebody is willing to pay.

So that was a list of what doesn’t matter. Here is a list of what does matter:

Comparables sold for on your street in the last three months: The most recent and comparable house to yours is a huge gage at pricing a house. It sets the bar in pricing your house. In a hot market you can go up but in a slow market you must go down from there. That’s the way it works. The only thing that might separate you from them is if you have some features they don’t or there is a significant difference which is appealing to people.

Borrowing rates and flexibility: If the interest rates on mortgages are cheap and easy to get it will shoot the housing market up. If the direct opposite happens the market will slow down. Either or this affects the market and the price of your house. The more cheaper the rates are and easy to get, the more buyers, therefore less inventory and let the bidding wars begin. Vice Versa applies here.

Desirability: If you have a beautiful house and it is in a great neighbourhood, you will sell your house, unless you price your house out of the market. Usually even in a recession people who have a great house and location sell. If you house has not been cleaned in two years it will not sell or the price will have to go down. These two factors regardless of the market determine if a house will sell. 

Location: This is a huge factor in selling or buying a house. How many people desire the location of the house? Is it a corner lot? Is it close to schools, amenities and malls? How close is it to public transit?

Well I hope this helps to understand what matters in selling your house and putting a worth on it. There other pricing strategies which I go through but you can call me in person to get my strategies.  Take a look at my graphic below.

 

 

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