RISMEDIA, December 21, 2009—It’s easy pickings out there for many potential homebuyers. Housing prices are at their lowest in more than a decade, inventories are high, analysts are predicting a new wave of foreclosures and the government is offering two substantial tax credits for which many homebuyers qualify.
But bargain buyers beware, warns Vince Mastronardi, whose property preservation business has been busy preparing foreclosed homes for sale.
“Buyers need to educate themselves about the potential pitfalls of purchasing distressed property,” says Mastronardi, president of On-Site Specialty Cleaning & Restoration. “It’s not so much what damage occurred, but the source of that damage and how long before the problem was addressed.”
These 10 signs may indicate that trouble is around the corner.
1. Unheated house in winter months. If the home has been properly winterized, there’s no need for heat. But if the home has not been properly winterized, pipes will burst and cause water damage.
2. Missing sinks, toilets and other fixtures. Make sure they’ve been properly removed and not ripped from walls and floors.
3. Peeling, bubbling, and discolored paint; swelling in walls or ceilings (especially around kitchens and bathrooms) or a musty odor all indicate water damage and, potentially, the presence of moisture and mold.
4. Fungus growth inside cabinets, behind drawers and built-ins. Fungus could mean that there has been water damage. Since water falls down, look for the source above the mold.
5. Blocked drains or pipes will cause future problems and may have already created sewage backups.
6. Black cobwebs, greasy gray residue on walls and/or a strong oily odor. This could point to potential soot damage or a malfunctioning furnace.
7. An older home with extensive renovations. Check with the city for pulled permits in order to get remolding details. If asbestos is present and has been disturbed, be sure it’s been remediated by a certified specialist.
8. Excessive painting of every nook, cranny, door and floor may mean that the seller is covering up mold.
9. Discolored subflooring. From the basement, check the subflooring above for stains and small holes, both caused by mold.
10. Air Quality. The air quality within a home tells a lot about the home’s condition. Be sure to include air and surface testing in your home inspection. It’s a few hundred dollars well spent.
“Time and technique are the most important factors of effective clean-up and preventing future problems like mold or contamination,” Mastronardi explains. “Ideally, professional cleanup begins within a few days of the damage; technicians are trained, certified or licensed; and equipment is specialized and up to date.”
Ask the seller to explain how the damage was fixed. Plus, check out the company that performed the repairs to ensure it has industry-recommended certification. If needed, follow-up with the seller or repairing company for specific repair details.
Wednesday, December 23, 2009
Tuesday, December 22, 2009
Canada may require higher mortgage downpayments
OTTAWA (Reuters) - Canada may require people taking out mortgages to come up with a larger downpayment if it looks like indebtedness is getting too high, Finance Minister Jim Flaherty said in a interview released late on Sunday.
Flaherty's remarks echoed concerns voiced last week by Bank of Canada Governor Mark Carney about households' ability to pay down debt. Household debt relative to income has risen sharply though it is below U.S. and British levels, and Carney warned consumers not to assume that interest rates will stay low.
"If we see further evidence that there is excessive demand in the housing market or that there's an indication that people are taking on obligations that they will not be able to handle in the future when interest rates rise, then we will take some action," CTV television quoted Flaherty as saying.
"The likely action we will take is to increase the size of the downpayment from 5 per cent to a higher number, reduce the amortization -- bring it down from 35 years to something less."
Shortening the amortization period would mean mortgage payments would have to go up to pay the loan off more quickly, and might make people think twice about taking on more debt.
The interview with Flaherty is expected to air on the program Question Period on Sunday.
(Reporting by Randall Palmer; editing by Rob Wilson)
Flaherty's remarks echoed concerns voiced last week by Bank of Canada Governor Mark Carney about households' ability to pay down debt. Household debt relative to income has risen sharply though it is below U.S. and British levels, and Carney warned consumers not to assume that interest rates will stay low.
"If we see further evidence that there is excessive demand in the housing market or that there's an indication that people are taking on obligations that they will not be able to handle in the future when interest rates rise, then we will take some action," CTV television quoted Flaherty as saying.
"The likely action we will take is to increase the size of the downpayment from 5 per cent to a higher number, reduce the amortization -- bring it down from 35 years to something less."
Shortening the amortization period would mean mortgage payments would have to go up to pay the loan off more quickly, and might make people think twice about taking on more debt.
The interview with Flaherty is expected to air on the program Question Period on Sunday.
(Reporting by Randall Palmer; editing by Rob Wilson)
Additional costs of buying a house
Mortgage costs
AdvertisementMost banks no longer charge a fee to set up a mortgage or do a mortgage-related appraisal, but it is worthwhile to verify this when you are shopping for your mortgage.
If you are borrowing more than 80% of the purchase price of the home, you will need to obtain mortgage insurance from the Canada Mortgage and Housing Corporation. The CMHC's scale is as follows:
80–85% of purchase price: 1.75% of mortgage, plus PST
85–90%: 2% plus PST
90–95%: 2.75% plus PST
over 95%: 3.1% plus PST
Mortgage insurance also applies to extended-amortization mortgages (over 25 years). For every extra five years of the amortization period, the premium is increased by 0.2%. The maximum amortization you can obtain is 35 years.
If you are arranging your mortgage through a mortgage broker, you may be charged a finder's fee as well; usually, the lender pays this fee to the broker, but if you are considered a high-risk mortgagee, it may apply to you as well.
Home insurance
All mortgage companies require you to carry home insurance, and if you ever have a fire or major theft, you'll be thankful for it. The cost varies widely depending on your coverage and the company you insure with; just as with car insurance, it's worth shopping around to get the best price. Some companies offer discounts if you insure both your home and car with them.
Legal costs
There are a slew of miscellaneous but necessary legal documents that a house sale generates, which can only be processed by a lawyer. However, by law the maximum a lawyer can charge you for his services is 1% of the purchase price or $1,200, plus GST and disbursement costs (more about that in a moment). The lawyer will generate the following searches and documents for you:
Title Search, which verifies that the vendor legally owns the property and can sell it;
Searches with the utilities, tax departments and building department to verify that there are no liens on the property;
Registering the title deed and mortgage;
In the case of a rural property, septic tank and potable water searches.
On top of the lawyer's fee, there are also disbursement costs, which are the miscellaneous fees of doing the search, such as office faxes, phone calls and mail costs, and other costs of doing business.
Title insurance
Title insurance is not mandatory, but most lawyers highly recommend it these days to protect you against mortgage fraud, identity theft and forgery, a growing crime especially in large urban areas. As Clapp notes, many computerized municipal records are surprisingly vulnerable to fraudulent hackers. The cost on a $450,000 home is a few hundred dollars.
AdvertisementMost banks no longer charge a fee to set up a mortgage or do a mortgage-related appraisal, but it is worthwhile to verify this when you are shopping for your mortgage.
If you are borrowing more than 80% of the purchase price of the home, you will need to obtain mortgage insurance from the Canada Mortgage and Housing Corporation. The CMHC's scale is as follows:
80–85% of purchase price: 1.75% of mortgage, plus PST
85–90%: 2% plus PST
90–95%: 2.75% plus PST
over 95%: 3.1% plus PST
Mortgage insurance also applies to extended-amortization mortgages (over 25 years). For every extra five years of the amortization period, the premium is increased by 0.2%. The maximum amortization you can obtain is 35 years.
If you are arranging your mortgage through a mortgage broker, you may be charged a finder's fee as well; usually, the lender pays this fee to the broker, but if you are considered a high-risk mortgagee, it may apply to you as well.
Home insurance
All mortgage companies require you to carry home insurance, and if you ever have a fire or major theft, you'll be thankful for it. The cost varies widely depending on your coverage and the company you insure with; just as with car insurance, it's worth shopping around to get the best price. Some companies offer discounts if you insure both your home and car with them.
Legal costs
There are a slew of miscellaneous but necessary legal documents that a house sale generates, which can only be processed by a lawyer. However, by law the maximum a lawyer can charge you for his services is 1% of the purchase price or $1,200, plus GST and disbursement costs (more about that in a moment). The lawyer will generate the following searches and documents for you:
Title Search, which verifies that the vendor legally owns the property and can sell it;
Searches with the utilities, tax departments and building department to verify that there are no liens on the property;
Registering the title deed and mortgage;
In the case of a rural property, septic tank and potable water searches.
On top of the lawyer's fee, there are also disbursement costs, which are the miscellaneous fees of doing the search, such as office faxes, phone calls and mail costs, and other costs of doing business.
Title insurance
Title insurance is not mandatory, but most lawyers highly recommend it these days to protect you against mortgage fraud, identity theft and forgery, a growing crime especially in large urban areas. As Clapp notes, many computerized municipal records are surprisingly vulnerable to fraudulent hackers. The cost on a $450,000 home is a few hundred dollars.
The hidden costs of buying and selling a house
By Martha Uniacke Breen (http://www.styleathome.com)
Find out what additional costs you should expect when buying or selling a house.
The actual purchase price on a house listing is only part of the ultimate cost of buying or selling it. Whenever a house changes hands, there are a number of associated fees -- some of them amounting to thousands of dollars -- that affect the final price of the transaction, whether you are buying a new home or selling your old one.
We asked Toronto real estate lawyer Stanley Clapp to give us a rundown of what extra fees to expect, and how much you can expect to be out of pocket.
FOR BUYERS
Land Transfer Tax
Many provinces (and most major cities) levy a land transfer tax (sometimes called a property purchase tax) that is calculated as a percentage of the purchase price. The formula varies from province to province and from city to city; for specifics, see the website relocate–canada.com for a list of land transfer tax rates for most Canadian provinces, consult the municipal/provincial government website for your region, or ask your lawyer or agent.
As an example, in Ontario, the Land Transfer Tax is calculated as follows:
on the first $55,000: 0.5%
from $50,000 to $250,000: 1%
from $250,000 to $400,000: 1.5%
over $400,000: 2%
First-time buyers receive an exemption of $2,000.
The City of Toronto's Land Transfer Tax is calculated on the following scale:
on the first $55,000: 0.5%
from $50,000 to $400,000: 1%
over $400,000: 2%
First-time buyers receive an exemption of $3,725.
Adjustment costs
Adjustment costs are any prepaid costs paid by the vendor that are to be reimbursed when the buyer takes possession of the home. These can include property taxes; prepaid water, hydro or gas charges; lawn care service contracts, and so on.
With metered services such as hydro, gas or water, the meters are read on the day the house changes hands, to enable you (and the utility company) to verify how much the buyer and seller each owe or are owed.
The exception is heating oil; it is standard for the seller to top up the tank of heating oil at the time of the sale, and have the buyer pay for one full tank.
Find out what additional costs you should expect when buying or selling a house.
The actual purchase price on a house listing is only part of the ultimate cost of buying or selling it. Whenever a house changes hands, there are a number of associated fees -- some of them amounting to thousands of dollars -- that affect the final price of the transaction, whether you are buying a new home or selling your old one.
We asked Toronto real estate lawyer Stanley Clapp to give us a rundown of what extra fees to expect, and how much you can expect to be out of pocket.
FOR BUYERS
Land Transfer Tax
Many provinces (and most major cities) levy a land transfer tax (sometimes called a property purchase tax) that is calculated as a percentage of the purchase price. The formula varies from province to province and from city to city; for specifics, see the website relocate–canada.com for a list of land transfer tax rates for most Canadian provinces, consult the municipal/provincial government website for your region, or ask your lawyer or agent.
As an example, in Ontario, the Land Transfer Tax is calculated as follows:
on the first $55,000: 0.5%
from $50,000 to $250,000: 1%
from $250,000 to $400,000: 1.5%
over $400,000: 2%
First-time buyers receive an exemption of $2,000.
The City of Toronto's Land Transfer Tax is calculated on the following scale:
on the first $55,000: 0.5%
from $50,000 to $400,000: 1%
over $400,000: 2%
First-time buyers receive an exemption of $3,725.
Adjustment costs
Adjustment costs are any prepaid costs paid by the vendor that are to be reimbursed when the buyer takes possession of the home. These can include property taxes; prepaid water, hydro or gas charges; lawn care service contracts, and so on.
With metered services such as hydro, gas or water, the meters are read on the day the house changes hands, to enable you (and the utility company) to verify how much the buyer and seller each owe or are owed.
The exception is heating oil; it is standard for the seller to top up the tank of heating oil at the time of the sale, and have the buyer pay for one full tank.
Thursday, December 17, 2009
TREB President Message
President's Message
December 11, 2009 -- It seems to have happened very suddenly this year: the holiday season is upon us.
For many people, the warmth of the holidays fosters visions of a brighter future, and if there’s one thing that we as Greater Toronto REALTORS® have learned this year, it’s that hope springs eternal.
This year began with just 2,670 transactions in January and an average price of $343,632. By the end of November though, the average price soared to $418,460 and year-to-date sales reached 81,929, putting 2009 on track to finish with some of the best years on record.
As the year draws to a close, many of us will take time to evaluate our past performance and set new goals for the year ahead.
I hope that this holiday season you will also reflect on all of the good that you have brought to others’ lives throughout the year, with respect to helping your clients find a home more suited to their lifestyle and also in terms of giving a hand up to those less fortunate.
At the Spring General Meeting in May, you voted in favour of supporting the REALTORS Care Foundation’s ‘Every REALTOR®’ campaign, authorizing TREB to contribute the equivalent of one dollar per Member, per month for a year to the Foundation, more than $342,000.
This type of support has helped the REALTORS Care Foundation grant more than $2 million to shelter-related charities since its inception.
In fact, on your behalf, TREB proudly presented REALTORS Care Foundation grants to 20 different shelter-related charities this year alone, totaling $171,000. A hospice, centres for homeless youths, a refugee reception service, affordable housing organizations, a community outreach program and numerous women’s shelters were among the recipients.
You have also supported TREB’s joint venture with Toronto District School Board’s Toronto Foundation for Student Success, known as the Children’s Breakfast Program. Nearly 100 of you are now involved in this program, which has grown to include eight sponsoring Brokerages and one large corporation: TDCanada Trust. Together, we’re helping to provide nutritious breakfasts to 1900 children in 11 different schools each week, and fighting the hunger problem one school at a time. We are definitely making a difference in the lives of the one in three children in our city who live in poverty.
These are just a couple of examples of how we bring so much more than MLS® to the people of Greater Toronto, and they’re certainly high on my long list of reasons for taking great pride in our profession.
The past year is a vivid example of how each of our lives holds its share of challenges and achievements, and 2010 will be no doubt be the same in this regard. Throughout your travels in real estate in the coming year, I hope that you will draw confidence in the knowledge that an association, which is fully committed to fostering your continued professional success, will support you every step of the way.
Best wishes to you and yours for the happiest of holiday seasons and a prosperous New Year.
If you have questions about market activity or any of TREB’s range of services, please feel free to write to me anytime at trebpres@trebnet.com
Tom Lebour
President
December 11, 2009 -- It seems to have happened very suddenly this year: the holiday season is upon us.
For many people, the warmth of the holidays fosters visions of a brighter future, and if there’s one thing that we as Greater Toronto REALTORS® have learned this year, it’s that hope springs eternal.
This year began with just 2,670 transactions in January and an average price of $343,632. By the end of November though, the average price soared to $418,460 and year-to-date sales reached 81,929, putting 2009 on track to finish with some of the best years on record.
As the year draws to a close, many of us will take time to evaluate our past performance and set new goals for the year ahead.
I hope that this holiday season you will also reflect on all of the good that you have brought to others’ lives throughout the year, with respect to helping your clients find a home more suited to their lifestyle and also in terms of giving a hand up to those less fortunate.
At the Spring General Meeting in May, you voted in favour of supporting the REALTORS Care Foundation’s ‘Every REALTOR®’ campaign, authorizing TREB to contribute the equivalent of one dollar per Member, per month for a year to the Foundation, more than $342,000.
This type of support has helped the REALTORS Care Foundation grant more than $2 million to shelter-related charities since its inception.
In fact, on your behalf, TREB proudly presented REALTORS Care Foundation grants to 20 different shelter-related charities this year alone, totaling $171,000. A hospice, centres for homeless youths, a refugee reception service, affordable housing organizations, a community outreach program and numerous women’s shelters were among the recipients.
You have also supported TREB’s joint venture with Toronto District School Board’s Toronto Foundation for Student Success, known as the Children’s Breakfast Program. Nearly 100 of you are now involved in this program, which has grown to include eight sponsoring Brokerages and one large corporation: TDCanada Trust. Together, we’re helping to provide nutritious breakfasts to 1900 children in 11 different schools each week, and fighting the hunger problem one school at a time. We are definitely making a difference in the lives of the one in three children in our city who live in poverty.
These are just a couple of examples of how we bring so much more than MLS® to the people of Greater Toronto, and they’re certainly high on my long list of reasons for taking great pride in our profession.
The past year is a vivid example of how each of our lives holds its share of challenges and achievements, and 2010 will be no doubt be the same in this regard. Throughout your travels in real estate in the coming year, I hope that you will draw confidence in the knowledge that an association, which is fully committed to fostering your continued professional success, will support you every step of the way.
Best wishes to you and yours for the happiest of holiday seasons and a prosperous New Year.
If you have questions about market activity or any of TREB’s range of services, please feel free to write to me anytime at trebpres@trebnet.com
Tom Lebour
President
Wednesday, December 16, 2009
REALTORS® routinely give back to their community
December 11, 2009 -- The season of togetherness, celebration and giving is upon us and it’s an opportune time to reflect on all that makes us thankful in life.
Although we are very privileged to live in a country that is ranked fourth in the world on the United Nations’ Human Development Index, which measures health, knowledge and standard of living, there is still much work to be done to help those less fortunate. It’s estimated for example, that one in three Toronto children live in poverty.
Greater Toronto REALTORS® though, are working to change statistics like this one. Throughout the year, they routinely give back to the communities in which they live and work.
The Children’s Breakfast Program is one example of how they’re working make a difference to Toronto families on a daily basis. A joint venture between the Toronto Real Estate Board and the Toronto District School Board’s Toronto Foundation for Student Success, the Children’s Breakfast Program provides nutritious breakfasts to 1900 children each week in 11 different schools. Many GTA REALTORS® are involved in this effort, and since its inception, the Children’s Breakfast Program has grown to include eight sponsoring Brokerages and one large corporation: TDCanada Trust.
Given that our city’s future depends on its young people, REALTORS® have developed a program to support their post-secondary education pursuits as well. Each year two $5,000 scholarships are awarded to graduating GTA high school students based on an essay writing competition. This year scholarships were awarded to Victoria Park Collegiate Institute graduate Cristiana Mergianian who is now studying at Queen’s University and St. Michael’s College School’s Konrad Teichman who now attends the University of Toronto.
A number of shelter-related causes also receive Greater Toronto REALTORS’® support, through the REALTORS Care Foundation. This year alone, the Toronto Real Estate Board presented grants totaling $171,000 to 20 charities on behalf of its Members. A hospice, centres for homeless youths, a refugee reception service, a community outreach program, affordable housing organizations and numerous women’s shelters were among the recipients.
Greater Toronto REALTORS® are in fact, so committed to supporting the work of the REALTORS Care Foundation that for the past two consecutive years they have asked TREB to make a donation equivalent to $1 per Member, per month for a year. This year that contribution was more than $342,000.
They’re quick to roll up their sleeves for this cause as well, generating an additional $10,000 in support for the Foundation through a fundraising motorcycle ride that took place in July.
Another summer event, TREB’s Annual Charity Golf Classic raised more than $10,000 for the Salvation Army of Toronto.
The individual efforts undertaken by REALTORS® are also recognized each year, with TREB’s Civic Service Award. This year’s recipients were REALTORS® Susan Gucci, who has adopted leadership roles on a number of the Toronto District School Board’s parent councils, and Norman T. Jones, who in addition to his numerous volunteer roles, has raised funds to send seriously ill children on trips of special interest.
I hope that the work of Greater REALTORS® has made a positive difference in the life of someone you know this year. On their behalf, I wish you the happiest of holiday seasons.
Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.
Although we are very privileged to live in a country that is ranked fourth in the world on the United Nations’ Human Development Index, which measures health, knowledge and standard of living, there is still much work to be done to help those less fortunate. It’s estimated for example, that one in three Toronto children live in poverty.
Greater Toronto REALTORS® though, are working to change statistics like this one. Throughout the year, they routinely give back to the communities in which they live and work.
The Children’s Breakfast Program is one example of how they’re working make a difference to Toronto families on a daily basis. A joint venture between the Toronto Real Estate Board and the Toronto District School Board’s Toronto Foundation for Student Success, the Children’s Breakfast Program provides nutritious breakfasts to 1900 children each week in 11 different schools. Many GTA REALTORS® are involved in this effort, and since its inception, the Children’s Breakfast Program has grown to include eight sponsoring Brokerages and one large corporation: TDCanada Trust.
Given that our city’s future depends on its young people, REALTORS® have developed a program to support their post-secondary education pursuits as well. Each year two $5,000 scholarships are awarded to graduating GTA high school students based on an essay writing competition. This year scholarships were awarded to Victoria Park Collegiate Institute graduate Cristiana Mergianian who is now studying at Queen’s University and St. Michael’s College School’s Konrad Teichman who now attends the University of Toronto.
A number of shelter-related causes also receive Greater Toronto REALTORS’® support, through the REALTORS Care Foundation. This year alone, the Toronto Real Estate Board presented grants totaling $171,000 to 20 charities on behalf of its Members. A hospice, centres for homeless youths, a refugee reception service, a community outreach program, affordable housing organizations and numerous women’s shelters were among the recipients.
Greater Toronto REALTORS® are in fact, so committed to supporting the work of the REALTORS Care Foundation that for the past two consecutive years they have asked TREB to make a donation equivalent to $1 per Member, per month for a year. This year that contribution was more than $342,000.
They’re quick to roll up their sleeves for this cause as well, generating an additional $10,000 in support for the Foundation through a fundraising motorcycle ride that took place in July.
Another summer event, TREB’s Annual Charity Golf Classic raised more than $10,000 for the Salvation Army of Toronto.
The individual efforts undertaken by REALTORS® are also recognized each year, with TREB’s Civic Service Award. This year’s recipients were REALTORS® Susan Gucci, who has adopted leadership roles on a number of the Toronto District School Board’s parent councils, and Norman T. Jones, who in addition to his numerous volunteer roles, has raised funds to send seriously ill children on trips of special interest.
I hope that the work of Greater REALTORS® has made a positive difference in the life of someone you know this year. On their behalf, I wish you the happiest of holiday seasons.
Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.
Friday, December 11, 2009
Dress up your house for a successful sale
Dress up your house for a successful sale
by Michelle Warren, Bankrate.com
Thursday, December 10, 2009
Homeowners have two primary goals when selling a house: Do it quickly and for the highest amount possible. They are obvious objectives, but not always easy to achieve.
House hunters are increasingly savvy and, with the huge popularity of home makeover shows and decorating magazines, expectations are getting higher and higher when it comes to the design and maintenance of a prospective house. Does yours have what it takes to pique interest and spark a bidding war?
Not everyone is born with great taste or the vision to create a model home, but everyone wants to make top dollar when it's time to sell. That's where professional house dressing or staging comes in.
The practice — which involves everything from tweaking décor to completely reinventing a house with new furniture, paint and accessories — wasn't prevalent a decade ago, but today stagers, primpers or fluffers, as they're also known, are the demigods of real estate, as homeowners seek higher returns on their biggest investment.
Kathy Wardle, a realtor with Bosley Real Estate in Toronto, swears by house dressing. "Sometimes it's added up to $100,000 (to the closing price). For others, it just makes it sellable."
When clients haven't the time or inclination to ready their own houses for the market, she directs them to Jeffrey Trafford, owner of Toronto-based Dressed To Sell.
"People are putting more and more into selling their homes," says Trafford, who has charged anywhere from $1,000 to $18,000 for his services.
Not only does he advise on what needs to be done, but he also does the work, whether it's purging a cluttered interior or renovating a tired kitchen. "I've never had anyone say to me, 'I didn't get a return on my money.'"
Set the stage
"That first 15 seconds upon entering a home, people will form an impression," explains Brenda Paul, an agent with Irena Bell Real Estate in St. Catharines, Ont. "In a slower market, staging will help sell a home more quickly. In a busy market, it'll help sell for more money."
Paul knows of what she speaks. She also owns House Primping, a Niagara-area realtor-to-realtor staging company, and is writing a book, House Primping: The Art of the Real Estate Deal.
"You're selling more than a house and four walls," she says. "You're selling a dream and a perception of a lifestyle."
Using decorating techniques and a variety of tools, from stock furniture to experienced handy people, primpers bring the dream to life and set the stage for potential buyers to envision themselves and their belongings in a house.
However, ambitious sellers can adopt a variety of trade secrets to make their house more marketable on their own.
Prepare to purge
The objective is to neutralize the space in order to widen its appeal. House hunters are not interested in sellers' bowling trophies, family photos or antique teacup collections. Eliminating clutter is key to readying a house for the market.
"People can get distracted by who the owners are and not see the house," says Wardle. "It's not about dulling it down but giving it more of a universal appeal."
Sometimes preparation is as easy as cleaning up the basement or purging items long destined for the garbage. But often, family heirlooms, over-the-top art and that comfy, but rather shabby, couch are banished to a storage locker.
"You want a house to feel open," says Trafford, adding that storage is a primary concern for buyers and a cluttered house gives the impression that space is an issue.
10 easy and inexpensive projects
"There are certain things that potential buyers don't want to see," he stresses. When Trafford scrutinizes a house, he's on the lookout for scuffed walls, stained ceilings, chipped sinks — the little things he insists make a big difference.
"It's a lot of common sense stuff that people often don't see for themselves."
Trafford has 10 tips for do-it-yourself primpers:
1. Touch up scuffed or chipped walls and staircases.
2. Ensure windows are spotless.
3. Shampoo all carpets.
4. Make sure every light switch has a matching plate.
5. Cover outdated kitchen and bathroom floors with peel-and-stick tiles.
6. Update kitchen cabinets with new handles.
7. Re-caulk around tubs and sinks.
8. Give old tiles a facelift by scrubbing grout.
9. Invest in a new shower curtain.
10. Paint, paint and then paint some more.
Handy hints
"Paint is the No. 1 thing to improve the look of a property, inside and out," seconds Paul.
Warm, neutral walls have wide appeal, but why stop there? Give a concrete basement floor new life and update kitchen or bathroom cupboards without the expense of new cabinetry.
"Dated for a home buyer spells work and it spells money," warns Paul.
Trafford also recommends replacing stained countertops and worn broadloom, while Wardle advises returning a converted room to its expected use. The third bedroom may function as an office, but buyers want to see a bedroom — oust the computer in favour of a bed and night table.
Finishing touches — such as new towels in the bathroom, a mirror strategically placed to open up a narrow hallway or fresh flowers in a drab room — all play a role in selling a house.
Consider the curb appeal
Pay equal attention to a home's exterior. Keep it tidy (i.e., don't clutter the front porch with garbage and recycling bins) and take on simple projects to set the house apart.
Red cedar chips transform a boring front garden, while flowerpots, a new mailbox and a freshly painted front door send house hunters the right message.
Spend money to make money
Whether following these tips yourself or hiring a stager for a thorough makeover, prepare to spend money to make money.
Investing 1 percent of the asking price into fixing up a house is a general guide, says Paul, who charges anywhere from $150 for a consultation and five-page report to $3,000 to dress a house fully with furniture and accessories. (Painting and repairs done by a third-party contractor cost extra.)
While no one can guarantee a house will fetch a specific price or sell within a certain time frame, experts insist primping has a positive influence.
Paul cites a Victorian house in Toronto that sat on the market for six months at $569,000, but sold for $612,000 within a week of a detailed overhaul that included staging the dining room for an elegant (but imaginary) dinner party.
It goes back to encouraging house hunters to buy into a dream, and in the process, buy the house.
Michelle Warren is a writer in Toronto
by Michelle Warren, Bankrate.com
Thursday, December 10, 2009
Homeowners have two primary goals when selling a house: Do it quickly and for the highest amount possible. They are obvious objectives, but not always easy to achieve.
House hunters are increasingly savvy and, with the huge popularity of home makeover shows and decorating magazines, expectations are getting higher and higher when it comes to the design and maintenance of a prospective house. Does yours have what it takes to pique interest and spark a bidding war?
Not everyone is born with great taste or the vision to create a model home, but everyone wants to make top dollar when it's time to sell. That's where professional house dressing or staging comes in.
The practice — which involves everything from tweaking décor to completely reinventing a house with new furniture, paint and accessories — wasn't prevalent a decade ago, but today stagers, primpers or fluffers, as they're also known, are the demigods of real estate, as homeowners seek higher returns on their biggest investment.
Kathy Wardle, a realtor with Bosley Real Estate in Toronto, swears by house dressing. "Sometimes it's added up to $100,000 (to the closing price). For others, it just makes it sellable."
When clients haven't the time or inclination to ready their own houses for the market, she directs them to Jeffrey Trafford, owner of Toronto-based Dressed To Sell.
"People are putting more and more into selling their homes," says Trafford, who has charged anywhere from $1,000 to $18,000 for his services.
Not only does he advise on what needs to be done, but he also does the work, whether it's purging a cluttered interior or renovating a tired kitchen. "I've never had anyone say to me, 'I didn't get a return on my money.'"
Set the stage
"That first 15 seconds upon entering a home, people will form an impression," explains Brenda Paul, an agent with Irena Bell Real Estate in St. Catharines, Ont. "In a slower market, staging will help sell a home more quickly. In a busy market, it'll help sell for more money."
Paul knows of what she speaks. She also owns House Primping, a Niagara-area realtor-to-realtor staging company, and is writing a book, House Primping: The Art of the Real Estate Deal.
"You're selling more than a house and four walls," she says. "You're selling a dream and a perception of a lifestyle."
Using decorating techniques and a variety of tools, from stock furniture to experienced handy people, primpers bring the dream to life and set the stage for potential buyers to envision themselves and their belongings in a house.
However, ambitious sellers can adopt a variety of trade secrets to make their house more marketable on their own.
Prepare to purge
The objective is to neutralize the space in order to widen its appeal. House hunters are not interested in sellers' bowling trophies, family photos or antique teacup collections. Eliminating clutter is key to readying a house for the market.
"People can get distracted by who the owners are and not see the house," says Wardle. "It's not about dulling it down but giving it more of a universal appeal."
Sometimes preparation is as easy as cleaning up the basement or purging items long destined for the garbage. But often, family heirlooms, over-the-top art and that comfy, but rather shabby, couch are banished to a storage locker.
"You want a house to feel open," says Trafford, adding that storage is a primary concern for buyers and a cluttered house gives the impression that space is an issue.
10 easy and inexpensive projects
"There are certain things that potential buyers don't want to see," he stresses. When Trafford scrutinizes a house, he's on the lookout for scuffed walls, stained ceilings, chipped sinks — the little things he insists make a big difference.
"It's a lot of common sense stuff that people often don't see for themselves."
Trafford has 10 tips for do-it-yourself primpers:
1. Touch up scuffed or chipped walls and staircases.
2. Ensure windows are spotless.
3. Shampoo all carpets.
4. Make sure every light switch has a matching plate.
5. Cover outdated kitchen and bathroom floors with peel-and-stick tiles.
6. Update kitchen cabinets with new handles.
7. Re-caulk around tubs and sinks.
8. Give old tiles a facelift by scrubbing grout.
9. Invest in a new shower curtain.
10. Paint, paint and then paint some more.
Handy hints
"Paint is the No. 1 thing to improve the look of a property, inside and out," seconds Paul.
Warm, neutral walls have wide appeal, but why stop there? Give a concrete basement floor new life and update kitchen or bathroom cupboards without the expense of new cabinetry.
"Dated for a home buyer spells work and it spells money," warns Paul.
Trafford also recommends replacing stained countertops and worn broadloom, while Wardle advises returning a converted room to its expected use. The third bedroom may function as an office, but buyers want to see a bedroom — oust the computer in favour of a bed and night table.
Finishing touches — such as new towels in the bathroom, a mirror strategically placed to open up a narrow hallway or fresh flowers in a drab room — all play a role in selling a house.
Consider the curb appeal
Pay equal attention to a home's exterior. Keep it tidy (i.e., don't clutter the front porch with garbage and recycling bins) and take on simple projects to set the house apart.
Red cedar chips transform a boring front garden, while flowerpots, a new mailbox and a freshly painted front door send house hunters the right message.
Spend money to make money
Whether following these tips yourself or hiring a stager for a thorough makeover, prepare to spend money to make money.
Investing 1 percent of the asking price into fixing up a house is a general guide, says Paul, who charges anywhere from $150 for a consultation and five-page report to $3,000 to dress a house fully with furniture and accessories. (Painting and repairs done by a third-party contractor cost extra.)
While no one can guarantee a house will fetch a specific price or sell within a certain time frame, experts insist primping has a positive influence.
Paul cites a Victorian house in Toronto that sat on the market for six months at $569,000, but sold for $612,000 within a week of a detailed overhaul that included staging the dining room for an elegant (but imaginary) dinner party.
It goes back to encouraging house hunters to buy into a dream, and in the process, buy the house.
Michelle Warren is a writer in Toronto
Thursday, December 10, 2009
Changing the way people buy homes
Changing the Way People Buy Homes: Using the 203k Program to Purchase ‘Dream Homes’
By Stephanie Andre
RISMEDIA, December 9, 2009—Driving to work one morning earlier this summer, home buyer Lori Kramer was thinking about the homes she and her husband had looked at the day before. Then, she had a thought that would eventually change the direction of her home search completely.
“My home at the time was listed for less than what we were approved for and it needed some work. So I wondered if we could use that remaining money to upgrade a home we were considering and make it our own,” says Kramer of Jacksonville, Florida.
From there, Kramer called her Wells Fargo mortgage consultant, Diana Diallo, who told her about the 203k program. The FHA Section 203k program is specifically designed to rehabilitate and repair single-family homes. The 203k is a single mortgage loan that provides funds to purchase a home and make repairs and improvements.
“As the market turned and we began to see more and more distressed properties, Wells Fargo, as a company, has focused its efforts on developing a more streamlined version of the typical 203k loan,” explains Diallo.
After Kramer received preapproval from Wells Fargo, she consulted with her Realtor, Shawn Norton of Keller Williams Realty, about revisiting a home she and her husband had considered earlier; it needed a lot of work, but Kramer saw the home’s possibilities and later bought it. From there, Diallo worked with Kramer on choosing a home improvement vendor. She selected Lowe’s, a decision Kramer calls “one of the best decisions we made.”
“After comparing service and cost, Lowe’s out-delivered the other vendors,” explains Diallo. “Thus, Lori chose Lowe’s to complete her remodel repairs.” And the renovations were quite extensive.
With their 203k approval, the Kramers completely renovated the kitchen, replacing all cabinets and countertops. They also revamped two bathrooms and added new carpet and fencing to the home.
“Lowe’s was fantastic and they truly deserve some spotlight for their service,” lauds Kramer. “The Lowe’s team and their contractors helped with design, offered us some great tips and helped us with materials and product selection; they did all of this and offered us the selection we wanted for an affordable price—and within 45 days from closing.” The Kramers closed on their home on August 18 and the work was completed by October 1.
“We are extremely happy,” says Kramer. “This program changed the way we looked at buying a home. Thanks to Lowe’s, our home has turned out amazing. The before and after is unreal. My kitchen is particularly amazing.
“In this market, where so many homes have been vacant for so long or gutted in some cases, this program could really change the way people are buying real estate,” adds Kramer. “I would definitely do this again—and would work with Lowe’s to do it.”
Norton agrees.
“I learned so much from working on this with Lori and Diana,” says Norton. “This really opened all of our eyes to see that you can fix something if the structure’s good and you have the right people in place to do the work.”
In many cases, homes that would qualify for the 203k loan are in nice areas but have aesthetic problems. This program—because the home improvements are built into the loan—opens the whole market to the average home buyer. “I never would have bought this home without the program—and I could not be happier,” says Kramer.
“Lowe’s was just awesome,” she adds. “From the program manager and other managers to the contractors, everyone was just outstanding. Our cabinet installer was the best—he was on point and professional. All of our contractors were so good with us. Lowe’s was great to work with, and I would love for other people to experience working with them as well.”
By Stephanie Andre
RISMEDIA, December 9, 2009—Driving to work one morning earlier this summer, home buyer Lori Kramer was thinking about the homes she and her husband had looked at the day before. Then, she had a thought that would eventually change the direction of her home search completely.
“My home at the time was listed for less than what we were approved for and it needed some work. So I wondered if we could use that remaining money to upgrade a home we were considering and make it our own,” says Kramer of Jacksonville, Florida.
From there, Kramer called her Wells Fargo mortgage consultant, Diana Diallo, who told her about the 203k program. The FHA Section 203k program is specifically designed to rehabilitate and repair single-family homes. The 203k is a single mortgage loan that provides funds to purchase a home and make repairs and improvements.
“As the market turned and we began to see more and more distressed properties, Wells Fargo, as a company, has focused its efforts on developing a more streamlined version of the typical 203k loan,” explains Diallo.
After Kramer received preapproval from Wells Fargo, she consulted with her Realtor, Shawn Norton of Keller Williams Realty, about revisiting a home she and her husband had considered earlier; it needed a lot of work, but Kramer saw the home’s possibilities and later bought it. From there, Diallo worked with Kramer on choosing a home improvement vendor. She selected Lowe’s, a decision Kramer calls “one of the best decisions we made.”
“After comparing service and cost, Lowe’s out-delivered the other vendors,” explains Diallo. “Thus, Lori chose Lowe’s to complete her remodel repairs.” And the renovations were quite extensive.
With their 203k approval, the Kramers completely renovated the kitchen, replacing all cabinets and countertops. They also revamped two bathrooms and added new carpet and fencing to the home.
“Lowe’s was fantastic and they truly deserve some spotlight for their service,” lauds Kramer. “The Lowe’s team and their contractors helped with design, offered us some great tips and helped us with materials and product selection; they did all of this and offered us the selection we wanted for an affordable price—and within 45 days from closing.” The Kramers closed on their home on August 18 and the work was completed by October 1.
“We are extremely happy,” says Kramer. “This program changed the way we looked at buying a home. Thanks to Lowe’s, our home has turned out amazing. The before and after is unreal. My kitchen is particularly amazing.
“In this market, where so many homes have been vacant for so long or gutted in some cases, this program could really change the way people are buying real estate,” adds Kramer. “I would definitely do this again—and would work with Lowe’s to do it.”
Norton agrees.
“I learned so much from working on this with Lori and Diana,” says Norton. “This really opened all of our eyes to see that you can fix something if the structure’s good and you have the right people in place to do the work.”
In many cases, homes that would qualify for the 203k loan are in nice areas but have aesthetic problems. This program—because the home improvements are built into the loan—opens the whole market to the average home buyer. “I never would have bought this home without the program—and I could not be happier,” says Kramer.
“Lowe’s was just awesome,” she adds. “From the program manager and other managers to the contractors, everyone was just outstanding. Our cabinet installer was the best—he was on point and professional. All of our contractors were so good with us. Lowe’s was great to work with, and I would love for other people to experience working with them as well.”
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