Tips and Suggestions
#1 Hot Market Buying
Multiple Offers – how would you handle one?
At present, Edmonton & surrounding areas are experiencing a hot market in the under $450,000 price range. Often, 2 or 3 offers come in on a well located, well maintained home. Sellers are expecting higher prices – so how can we buy the home that we really want, when there are two other offers on the property?
Here are a couple of points that you should consider:
- Sometimes, offering as little as $100 over the list price has been enough to win the bidding war. Typically you don’t get a second chance to improve on your original offer, so make it your best. What does the seller look at? Well, if it was your listing… the bottom line would likely be the price. Your REALTOR® needs to guide you through this ordeal.
- The amount of deposit will show the seller how serious you are. Putting a large deposit ($$$) up front shows the seller that you are serious about the transaction. The deposit should be made payable to the brokerage company that holds the listing, and it should be held in trust.
- If you require financing, then see your favorite bank to obtain pre-approval. Get your pre- approval in writing so that your REALTOR® can show this letter when presenting your offer. If you will be paying cash, then make your offer “subject to the home being appraised at the purchase price or higher”.
- Work with an Experienced REALTOR® who is well known to other agents. Your agent’s professionalism, or lack of it, may reflect on you or your offer. If your REALTOR® is very experienced in this type of situation, then listen to his/her advice and obtain all the information you can.
- The more contingencies you add to your offer, the less attractive your offer becomes. Making an offer “subject to Financing” and “subject to Building Inspection” are okay, but “subject to approval of a friend or family” is not advisable. Ask your REALTOR® to find out if the advertised possession date is still what the seller wants, since you want to make your offer as attractive as possible. Put yourself in the shoes of a seller – do you want more or fewer conditions?
The LorenzTeam Property Marketing Group has a wealth of knowledge in negotiating multiple offers as both a buyer or a seller. If you would like more information on negotiating multiple offers – please call!! We would be happy to discuss any of these points in more detail.
#2 New or Resale
Five Reasons a Resale is Better Than a Brand New Home
Many people still prefer buying a new car versus a used one, or buying a brand new home versus a pre-owned one. There are some real advantages to buying a pre-owned home. A consumer should investigate the potential benefits before deciding that only a NEW house will do.
- Getting Value For Your Money
Market Value and new construction costs are NOT synonymous. When your gorgeous new home is completed, and after you put more of your money into window coverings, appliances, landscaping, fencing, sidewalks and other completion items, you have probably spent up to 20% more than if you had purchased a pre-owned home. Hopefully you don’t have to sell right after it is built.
- Getting a Picturesque Setting
How many developers have you seen who leave mature trees standing when they prepare a new subdivision? Landscaping, like fine wine, improves with age. If you prefer more privacy, mature trees, sunshine and birds singing, then the lush natural setting of a resale is what you should be looking for.
- What You See Is What You Get
With new construction there are more unknowns, such as quality control – having a large 2-storey built beside you to shade your yard or block your view, or a less expensive house built next door to lower the appeal of your property, or heaven forbid, a builder getting into financial trouble and leaving a partially completed home for the bank to take back. An established neighborhood is exactly that – established parks, remain parks, school zoning does not change to a shopping center.
- Financing Is Easier To Obtain
It is important to check the rules regarding financing terms on new properties in your area. CMHC will not provide the insurance necessary to purchase a new home with 5% as a down payment, unless the builder is a member of the New Home Warranty Program.
- Greater Negotiating Power
When you buy a new home, you will normally pay the price the builder is asking. With a resale, depending on motivation, the odds are much better that you can negotiate a price and terms that more appropriate to meet your needs.
Please Note – this is not intended to infer that new homes are bad and re-sales are good. There are many benefits to owning a brand new home. The purpose is to encourage the consumer to evaluate as many alternatives as possible when making the important decision of buying a home.
The LorenzTeam Property Marketing Group has experience in selling New Homes and Re-Sales for since 1976…contact us if you would like more information on buying or building your next home!!!
We have also worked with several new builders… call us if you want help choosing one!
#3 Market Crash Warnings
5 Critical Indicators to Observe in Recognizing a Real Estate Market Crash
A real estate broker says he has cracked the code to knowing when to buy or sell a house. There are five common sense indicators that he says will tell consumers which way the market is going…
According to Robert Campbell, the five indicators are as follows:
- The direction of interest rates
- Number of local home sales
- Number of new home sales permits
- Number of loan defaults and bankruptcies
- Number of foreclosure sales
You have to know what is going on in your community to know which way the market is heading. So what’s happening now? You need to contact a REALTOR® who actually keeps track of this information in hard copy, not one who offers opinions without support.
Do you know the recent absorption rates or sales-listings ratios? The Edmonton Real Estate Market is experiencing unprecedented growth – but – will it last forever?
The LorenzTeam Property Marketing Group has been graphing real estate cycles for over ten years. This information is available for Edmonton, Sherwood Park & Acreages etc. Call us if you would like to discuss local trends in our Real Estate market.
#4 Really want a condo?
Is Condo Convenience For You?
Back in the 1960’s condos were purchased primarily by people who could not afford single family dwellings. Putting up with noise and living in a communal type of accommodation was just part of life in a condominium.
Almost 50 years later, people with large bank accounts are opting to live in a condo instead of a large sprawling home on a landscaped yard. Some complexes have swimming pools or tennis courts, and some are located on golf courses or with special views. These have become an attractive lifestyle without home ownership maintenance.
As condo construction increased in the ’70s and ’80s, there were cycles where condos did not keep up to the inflation of single family dwellings. Part of the problem was over supply, and buyers were just not ready for this change of lifestyle.
Today, baby boomers are over 50 years of age, and are considering a change where there are more amenities but less maintenance. Now, in certain locations, inflation has kept up or even exceeded that of single family homes.
What are some questions to consider if you are thinking about buying a condo for full time residence?
Are you a quiet person? Do you respect other people’s right to quiet enjoyment of their property?
Are you willing to follow rules? There are thick legal documents that cover everything from parking to election of officers & use of recreational facilities.
Are you willing to do your share? Being part of the community means taking your turn at committee meetings, serving on the board, etc.
Are you okay with a joint financial responsibility? Maintenance, repairs & replacement is the responsibility of all dwellers. The condo association collects monthly for this purpose, but sometimes special assessments need to be collected for special emergency repairs.
This lifestyle may not be for everyone, but it is obvious that more and more are choosing this type of accommodation as a permanent residence.
Thinking of building a condo?? The LorenzTeam Realty Group is up to date on all the new developments, call us if you would like to know more!!
The LorenzTeam Property Marketing Group has been hired as the exclusive sales and marketing team for over 700 condo’s currently for sale in Strathcona County’s Centre in the Park. Our experience is unparalleled in Condo industry – call us whether you are thinking of buying or selling a condominium!!
#5 Lure of Acreages
In the past, the turnover in the acreage market was far greater than that in town. This was often due to the fact that acreage living was not suited to a new purchaser whose living experience had been limited to an urban setting. On the other hand, the “veteran” acreage/farm dweller often moves to another acreage and would never consider living in the city.
What are some of the factors that determine whether you are a candidate for country living and the call of the wild?
- Realize that it costs a lot more money to maintain your little estate.
- Long driveway–may need more gravel, and a tractor to move snow.
- Maintain well, cistern, septic
- Require acreage “toys” such as ride-on tractor and attachments
- Are you handy, energetic, and do you have time to look after the property? Consider things like landscaping, driveway, fences, extra fix-ups and the time to drive the family into town.
- How old are your children? Once they become teenagers, they may have friends who live in town, and town is where the “action” is. Are they involved in sports, music or other activities which will require driving?
- Are you organized? Acreage families don’t just run to the corner store on a whim. Planning your trips to town will save you time and money.
- When considering a move, are both husband and wife in favor of this change, or is one convincing the other that this lifestyle is what they need?
Many people are resourceful, energetic and have the money to pay for the tranquil lifestyle that they desire. Imagine sitting outdoors, listening to the birds, watching the sunset, enjoying an outdoor fire pit, experiencing the calm, the fresh smell, and then the gorgeous stars. What is it worth? That’s still your decision.
Let The LorenzTeam Property Marketing Group be your ‘keys to success’!! We have over 26 years experience selling acreages in the Sherwood Park and surrounding areas.
Call us when you are ready to either sell or buy!!!
#6 Cleaning the Closet
This information was obtained from P.J.Wade, a business strategist and author.
Residents in three of Canada’s largest cities (Vancouver, Montreal, and Toronto) revealed that they felt more satisfied after reorganizing their closet than after having…well, you know what I mean. The majority of those surveyed said they would choose more closet space (30%) over a bigger kitchen (17%)(who wants to cook?) or an extra bathroom (11%)(I can’t believe that).
36% of the people surveyed were looking for more living space as their prime objective and only 29% claimed to regularly and ruthlessly throw out things they didn’t need anymore. If you are selling your home, strive to present a spacious, organized property. Clutter reduces the buyer’s emotion and motivation to bid on your home, consequently reducing market value. Use your creativity to come up with innovative storage solutions-these need not be expensive. Your REALTOR® may be a source of ideas.
Incidentally, Montrealers of both genders were the most likely to say that they found sex more satisfying than organizing their closet.
The LorenzTeam Property Marketing Group are long time residents of Sherwood Park and have experience in Real Estate since 1976. Please contact us if you are planning to buy or sell your property.