How To Avoid the Buyers Blues

How To Avoid the Buyers Blues

Buying a house in a tough market like Toronto can be very emotional draining. There are many obstacles to overcome such as bidding wars, no inspection clauses, no finance clauses, and being unsure of so many factors.

In a crazy market, it is best to find your house first then sell after. The reason being that you will not be forced to buy something you don’t like if your time runs out on the selling end.

I have witnessed many buyers go through what I call the Buyers Blues through my travels, and in many cases there are a few steps to avoid this from the beginning. Here is my list of things to do:

1. DO NOT FALL IN LOVE with the house you see. When you are looking for a house, always keep in mind the house is not yours until you get the keys. Even if you have a firm deal in place there are many things that must happen before you are actually living there.

2. Be Realistic: Do not look at houses that are under priced and out of your price range. Examine your budget and what you can afford before going out and searching for houses

3. Get Pre-Approved: Make sure you are pre-approved and can possibly get your offer approved with an under writer before sending it off. This will ensure you can submit an offer without your finance clause.

4. Get a Walk-through home inspection: I have a home inspector that will give a walk through home inspection without all the bells and whistles. Basically just making sure the key points of the house are in dis-array. This will help you remove the inspection clause that will lose you the house.

5. Go by Comparables, not listing price: Never ever look at the listing price and say you can afford that. You need to look at the comparables, and go by the last sale. Even then add some money. To win a bidding war you must be aggressive and sometimes go beyond the comparable just to get the other bids out.

6. There are more houses out there: Yes you might have lost out on a house, but be sure that there are other houses out there. It is devastation sometimes that you lose a house, but be assured there are more out there.

As you can see there are a few things to do while trying to buy a house, there are many mistakes you can make and many ways to put stress on your life. Try to follow these steps and get into something new.

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5 Ways to Lose Money While Selling Your House

5 Ways to Lose Money While Selling Your House

There are many ways to increase value when thinking about selling your home. A lot of people might get impatient and just put their house on the market as is, and that is a big mistake in this market. I hear all the time that people say that it doesn’t matter that this and that has to be done, it’ll sell anyway. That statement is true, but wouldn’t you rather spend a little bit of money now to get a lot more.

One of the secrets to selling a home is that people want to buy something that is completely done. Even people who are capable of renovations don’t want to do them. It takes time and its aggravating. In this world of instant gratification, a home that is fully done will sell for more, and sometimes more than the other comparables on the market.

Here are a few ways that I have witnessed sellers will lose money when they put their house on the market. Not all of them have to do with renovations but that is a major part.

1. Staging/Clutter: Get rid of big furniture, make sure you get rid of carpets, and things on tables that are there for no reason. Pretend your house is a show house. Get rid of personal pictures and religion.

2. Renovation not finished: I have seen basements finished partially or kitchen not properly done correctly. Not finishing certain projects or doing them quickly and cheaply will leave thousands of dollars on the table.

3. No Selling Strategy: Many sellers just think that you just put a sign on the lawn and sell your house, but in reality the sellers that get the most money have a strategy to get the most money. Looking at the comparables and creating a plan is the best way to get a maximum amount for your house. Its only one of the biggest investments of your life.

4. No Marketing: Even in a hot market you want to do as much marketing as possible. You want to get as much exposure as possible. Even if you know it will sell with multiple offers, if there would be 2 your want 4, and so on. This is the only way to drive the price up as much as possible. Being lazy would be a missed opportunity.

5. Doing it yourself: Yes I am biased but selling your own property is the worst thing you can do. The reason why is that there is no buffer and you get emotionally involved, you might say something or do something that turns the buyer off. You will give off something that will tip your hand similar to poker. Agents are mediators in a sense, and trained to kill. Would you walk into a court room without a lawyer?

There are other things that can make you lose money but I think these are the top ones. Don’t make these mistakes and just call me today!

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read more

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Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

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read more

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Heath’s Corner: Where to Invest Your Money in Real Estate?

Heath’s Corner: Where to Invest Your Money in Real Estate?

In this hot market, there are many ways and places to invest your money. It seems as thought everybody wants to get into the Real Estate game. The reason being is that even though Real Estate goes up and down, in the long term, Real Estate is a solid investment. There is something tangible that you can touch and feel. There is a product, piece of land, and a structure. Other investments do not have this. 

 
The million dollars question I get asked daily is where is the best place to invest your money in Real Estate. Everybody has their own opinion, and every wants to know where the sure bet is. 
 
A lot of people start by putting their money into condos, and in this market that is a decent small investment, not bad for starting off, if you buy pre-construction. That investment is pretty simple, buy before they come out, and wait two years, and the value increases, and then sell after a few years of renting to re-coup your money. 
 
Another is to do the same for a housing development if you can find one out of the city. 
 
The Real Estate investment that is most popular is buying a run down house, and then renovating it, and selling it for top dollar. This method has been sparked by a generation of Do it yourself shows and programs. This method can truly be a money maker, it does have its challenges. You must need capital, and be able to sit on that capital. Some projects can take up to one year to finish after permits, and contractors. Then you must also be able to sell it so you make a profit after taxes, and material. Not to mention your time. Also the biggest factor is that there are probably thousands of people looking to do the same thing that you are. Yes Competition is real and you are not a genius of thinking of doing this. 
 
The last method is the method that I believe is one of the best things to do. It is to take a few of your other investments and buy duplexes or triplexes and be a landlord. Take your condo investments and sell them, and then locate the best property, possibly renovate them, and rent them out for  top dollar. You may also turn a renovation house into one of these properties. It may take some permits and cutting red tape. Investments like this are not short term and in the long term you will see that having a few of these types of properties will expand your portfolio and see steady returns. 

READ RECENT BLOG & ARTICLE POSTS BELOW

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read more

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read more

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Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

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Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

read more

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Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...

read more

The Risk of Waiving a Home Inspection

If you put an offer on a house that goes into multiple offers, chances are you must waive two conditions: home inspection, and financing. We will deal with financing next week, but for now lets talk about the home inspection clause. In the 80's there was no such thing...

read more

The Banks Are To Blame For Our “Housing Bubble”

The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and...

read more

New Mortgage Rules Will Affect the Canadian Housing Market

New Mortgage Rules Will Affect the Canadian Housing Market

I’m not going to write about the new mortgage rules, but you can read about them right here. So Go read them and come back.

Now that you are up to speed here is what will happen in the short and long term.

The market in the next few weeks is going to go crazy, I mean until the rules officially set in, people are going to try to buy something right away that cannot qualify under the new rules.

Like Vancouver the market is also going to drop a little bit. The reason being, the new rules are going to turn investors, foreign investors, and people who live here that invest off for a while until they can figure out the new rules and see what effect it has on the market.

The new rules affect the people who really don’t have 20% down and can afford a higher priced house. So what will this mean. Cheaper houses are going to be more sought after as well as townhouses, condos that are more affordable. Rentals will be going up as well.

The next major rules that will affect the foreign buyers that are using the tax loop holes to get away with not paying capital gains, so this will deter those buyers as well.

The thing about these new rules is that it will not affect the investors who live in Canada, who have money, who do not rely on these rules, and these loop holes. There are a lot of buyers who already have more than 20% or can get the funds necessary. Its a simple phone call to mommy and daddy who have a line of credit on their house and can lend off of that other property. So these rules will not affect those people and will make the world a more secure place in that sense.

So will these rules affect the housing market? Definitely these new rules will have huge ramifications in the market and the prices will even itself out a bit, and in other areas that are hot, they will not. This will also spurn a hot market in the lower echelon of prices for houses. Here is the thing about predictions, just when everybody thinks the market is going to get lower, nothing happens and the prices climb higher the next year. So nobody really knows.

READ RECENT BLOG & ARTICLE POSTS BELOW

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I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...

read more

The Risk of Waiving a Home Inspection

If you put an offer on a house that goes into multiple offers, chances are you must waive two conditions: home inspection, and financing. We will deal with financing next week, but for now lets talk about the home inspection clause. In the 80's there was no such thing...

read more

The Banks Are To Blame For Our “Housing Bubble”

The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and...

read more

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