Tips and Suggestions
#1 Hot Market Buying
Multiple Offers – how would you handle one?
At times, the Edmonton and surrounding areas can experience extremely hot markets at different price points. 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 Realty 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 Market Crash Warnings
5 Critical Indicators to Observe in Recognizing a Real Estate Market Correction
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 keeps track of this information, 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 Realty Group has been graphing real estate cycles for over ten years. This information is available for Edmonton, Sherwood Park & Surrounding Communities. Call us if you would like to discuss local trends in our Real Estate market.
#3 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. While there are some obvious advantages to purchasing a new home, 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.? 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 will remain as parks and school zoning will not change to a shopping center.You know what you’re getting while a new subdivision could keep you guessing.
- 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.
- Seller’s Motivation
While Builders are motivated by profits and govern their decisions based on their margins, the motivations of resale properties can vary. A seller that is being relocated for work or is experiencing significant life changes may be more motivated – thus prepared to accept a lower price.
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 Realty Group has experience in selling New Homes and Re-Sales 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!
#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.
All these 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. Since then, we’ve seen a number of cycles, often differing btwn townhouse condos and apartments. The building boom from 2006-2008 has led to an oversupply of apartments that are still impacting prices, while townhouses have, at times, outpaced 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(by way of condo fee), 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 buying a condo?? The LorenzTeam Realty Group has extensive experience working with Buyers, Sellers and Developers. We stay informed on the new developments and have insights into the older ones. Call us if 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 more money to maintain your little estate.
- A Long driveway–may need more gravel and a tractor to move snow
- Additional Maintenance – for things like wells, cisterns and septic systems
- 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 may not run to the corner store on a whim. Planning your trips to town can save you time and money.
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 Realty Group be your ‘keys to success’!! We have extensive experience selling acreages in Sherwood Park and surrounding areas.
Call us when you are ready to either sell or buy!!!
Call Us Today!
The LorenzTeam Realty Group are long time residents of Sherwood Park and have experience selling Real Estate since 1976. Please contact us if you are planning to buy or sell your property.