Thinking about Buying or Selling a Home without a Realtor®?

Here are a few Realtor Myths – Busted!

1.) Realtors make a lot of commission.

Sometimes it seems like those who are not involved day-to-day in the real estate industry perceive a Realtor’s job to be pretty easy. Some would say that the amount of commission we charge is too high compared to what we do to earn the commission. Opinions are subjective but I believe that many people really don’t know what a Realtor must do to maintain the high degree of expertise necessary to best represent our clients and to maintain a successful business.

Let’s start with the hard costs of signs, lock boxes, stationary, business cards, computers, tablets, cell phones, applications and programs, web sites, courier costs and in the case of higher producing Realtors, staff.

In addition to advertising on multiple web sites, property advertising costs could also include professional photographers, professional printers, professional measurement companies, videographers and advertising in print publications and social media.

Then there’s the costs of running a business. There are licensing fees, real estate board fees, real estate association fees, errors and omissions insurance, franchise fees, and the fees a Realtor must pay to their agency. On the low end these fees are approximately $12,000.00 per year. A premium real estate office will charge their Realtors higher fees which could be closer to $20,000.00 per year or more!

Of course all Realtors must maintain a reliable vehicle with business insurance.

A highly skilled Realtor has learned from the experience of being involved in hundreds or in some cases thousands of real estate transactions. These experiences create market knowledge and negotiating skills which benefit their clients.

To cover all of the above expenses a Realtor relies only on commission income and we do not get paid in advance. We are compensated after the transaction has completed, which can be months after we have performed our duties. Sometimes we will have performed all of our duties and we don’t get paid at all. This would be if the market conditions prevented a listed property from selling or if the seller changed their mind about selling or if a buyer client decided not to buy or bought through another Realtor.

2.) If I work with a Realtor to buy a home it will be too expensive.

The Realtor representing the buyer almost always receives their fee from the agency representing the seller, not directly from the buyer.

3.) A Realtor can work part time.

In addition to the duties required to market and sell a home and the duties required to locate the right home for a buyer client, a Realtor’s working hours must include continuing education, researching new and innovative marketing methods, maintaining data bases, web sites and social media, updating processes, following up with prospects, prospecting for new clients and in the case of higher producing Realtors, training staff and/or team members.

Being a professional Realtor is really being a small business owner and is definitely more than a full time job.

In my opinion our profession requires a passion for helping people and the best Realtors use their expertise and skills to not only create monetary value for their clients but also to help ease their clients through what can be a stressful and emotional time.

City of Calgary, July 4, 2016 – Calgary home prices continue to slide in most areas of the market, but not at the rate that many might expect. This is partly due to June’s resiliency in the detached and semi-detached sectors of the market, where sales compared to new listings and standing inventory started returning to more balanced levels.

“The detached market has been gradually moving towards more balanced conditions, helping to prevent price levels from declining at the faster rates we saw in the previous two quarters,” said CREB® chief economist Ann-Marie Lurie. “While this is welcomed news for sellers, it’s very likely that pricing challenges will persist in the housing market until economic conditions start to improve.”

Detached benchmark prices totaled $502,400, which is 0.4 per cent higher than last month, but 3.4 per cent lower than last year’s levels. This is the first time in eight months that detached prices recorded a monthly gain, helping ease the quarterly decline from 2.2 per cent in the first quarter to 0.7 per cent in the second quarter.

Overall sales activity remained relatively weak in June, falling by seven per cent to 2,028 units. Inventory levels went in the other direction and continued to climb in June to 5,973 units, 16 per cent higher than last year. Both the attached and apartment segments of the market have recorded inventory gains around 30 per cent, far greater than the year over-year increase of five per cent in the detached sector.

Higher inventories and weaker demand continue to have a larger impact on pricing in the apartment and row sectors. June apartment prices slid by another 0.1 per cent over last month, pushing the average year-to-date benchmark price down 5.3 per cent below last year. Attached product experienced a monthly slide of 0.3 per cent, mostly due to steeper price declines in row style product.

Those who have been waiting for the bottom of the Calgary Detached market to buy should pay close attention to this news release from the Calgary Real Estate Board. Not only has the Benchmark Price mad a move in the positive direction but the absorption rate has increased as well.

If you are curious about the investment market or the current market value of your home, please feel free to contact us.

Hope this helps!

Susanita de Diego

If you are curious about the current market value of your home, please feel free to contact us.

Download Calgary and Area Real Estate Statistics – June 2016

Is buying a condominium very different from buying a single family home?

In a word – absolutely!

To help you to decide if condominium ownership is right for you, we have put together the following important considerations for you to review:

Play well with others – You are not only buying your exclusive use of your unit, you are also buying a shared ownership of the common areas. Because there is “Common Property”, co-operation is one of the keys to a happy ownership experience. An owner should always consider volunteering for a board position to have input in the management of the development.

It’s all about the money – The (usually) required monthly condo fee can be as low as $150.00, up to the sky’s the limit! The fee is used to pay for regular maintenance, like snow removal, lawn maintenance and cleaning of the common areas. Sometimes the condo fee pays for your heat. A portion is also held in reserve – the Reserve Fund – to be used for future larger maintenance items, such as roof or fence replacement. Occasionally if the condominium board has not assessed a high enough condo fee early in the life of the development to cover large future costs there can be a “Special Assessment”. This is why it is so important to review all of the condominium documents during the conditional period at the time of your purchase.

The name game – It could be a Bareland or a Conventional or a Barely Blended Condominium. How does this affect an owner? The type of condominium development is registered with Land Titles and dictates the registered size of your unit. In a Bareland Condominum, the lot itself is often the “Unit”, so you will need to review a Real Property Report or survey during the due diligence period. Sometimes the registered size includes a garage or parking stall.

Does size matter? Sometimes it does! The “Registered Size” according to the condominium plan is not necessarily the actual living area. There can also be different standards of measurement according to the local real estate board and/or the industry governing body. It’s important to always double check which measurement was used in establishing an advertised unit size.

Where do I park my ride?  Parking can be anything from an uncovered stall to an attached garage. It can be “Assigned”, “Leased” or “Titled”. Older apartment style condominiums often have “Assigned” parking. This means you are not guaranteed that the stall offered when you purchased your condo will always be your stall because it could be re-assigned. In most newer developments you will receive a separate “Title” for your parking stall.

Who makes the rules?  The “Bylaws” are the rules that the owners must follow. They cover everything from allowing pets to whether exterior door and window replacement is the responsibility of the owner or the condominium corporation. Bylaws can be changed from time to time but only if the majority of the owners agree to do so.

The benefits on the condominium lifestyle include little to no maintenance responsibility, and developments often include attractive lifestyle amenities. So for those who don’t want to mow the lawn or worry about replacing the roof, condominiums offer a terrific style of ownership.

Knowledge is power! Consider working with a condominium specialist who has the knowledge to help you navigate through all of the considerations so that you will know before you buy.

If you have any questions about purchasing a condominium, or any other kind of property, we’d love to help! Call us now at 403-686-1455 or email: info@cbcalgary.ca!

City of Calgary, June 1, 2016 – Calgary’s housing inventory was on the rise once again in May as new

When compiling this information every month I am sometimes surprised at how differently market segments perform. We have seen improvements in the absorption rates in all reported segments EXCEPT for Calgary Apartments and Cochrane Detached homes.

This data demonstrates why it is so important to look at all of the factors in your particular market segment when you are selling or buying.

Despite the super-heated markets in Vancouver and Toronto, interest rates continue to stay at historic lows, making this an ideal time to buy in any market segment.

If you are curious about the investment market or the current market value of your home, please feel free to contact us.

Hope this helps!

Susanita de Diego

If you are curious about the current market value of your home, please feel free to contact us.

Download Calgary and Area Real Estate Statistics – May 2016

I was at a business event discussing real estate marketing, and my discussion partner posed the question of the top few things someone should think about when they want to buy real estate. Here is what we came up with:

1) Rent or Buy?
First of all, I guess you should ask yourself if you really want to buy property or continue to rent. Consider that over time, real estate is typically a good investment—for the long term. Those individuals who purchased in 2006 or the first half of 2007 and had to sell a year or two down the road lost money. Conversely, those who purchased at the bottom of the cycle could potentially make their money back, but remember the closing costs when you sell. If you’re thinking that you only want a place for a couple of years, continuing to rent might be the best option. No, you’re not creating equity, but unless you plan to try to sell your home yourself, you save the money you would have spent to pay a Realtor to sell your home.

Also, home-ownership comes with other costs that you might not factor in, like home insurance (which increased quite a bit since the 2013 floods), taxes, repairs and ongoing maintenance, and utilities. Can you afford that $500 gas and electric bill in the winter months? What about the water and sewage costs in the summer when the sprinklers are going? What happens if your furnace breaks down—do you have the funds set aside to pay for repairs? Renting suddenly sounds easier and cheaper!

2) How Much Can You Afford?
Once you have decided that you do want to buy, go to your bank or mortgage broker and get pre-approved for a mortgage. Getting pre-approved is very different than being pre-qualified. Pre-qualifying really just tells you the amount you might expect to get IF you are approved for a mortgage, but in no way does it guarantee that you will actually be approved. Pre-approval means that the lender has done a credit analysis and verified your employment situation, and has given you a letter stating that you have a certain number of dollars guaranteed at a specific interest rate. However, this approval is often guaranteed for only a few months, so once you do have that pre-approval, your next step is to get shopping.

3) What Do You Need versus Want?
Define your NEEDS in a home versus your wants. Needs include type of home—do you want a condo because you live downtown, or do you have children and pets so perhaps NEED a yard? Do you have individuals in the family with special needs or mobility issues, so perhaps need wider doorways or ramps?  Do you need to be close to schools because transportation might be difficult? Do you have a home-office, so need that extra bedroom or main-floor den/office space? Most condos do not allow you to run a business, so a single-family home would be necessary. Do you play a musical instrument? Condos also have noise restrictions, and if you have frequent gatherings of individuals, the parking could be an issue, not to mention the noise impacting neighbours.

You need to decide what area of town you want to live in. If you work downtown (and we all know what a headache commuting is), and you don’t need a single-family home, there are many apartment-style and townhouse condominiums, and for first-time buyers, a condo is a great place to start because they are more affordable (providing the condo fees aren’t too high).

4) Explore!
You should go to a million open houses. Well…maybe a million is a slight exaggeration, but the more properties you can see, the better informed you become. You can go to a lot of weekend open houses (but don’t feel compelled to work with the agent there), and also drive, cycle, or walk around neighbourhoods that you think you might like so that you can explore them and discover their positives and also their draw-backs.

5) Choose a Realtor
Once you have this information, you’re armed with a lot of knowledge – we applaud your initiative! Now it’s time to work with a Coldwell Banker Realtor™ to seriously investigate some properties. (Check out How Do You Choose a Real Estate Agent for some tips!). We can set you up on a search from the MLS system so that you can see when properties are listed that conform to your needs list (so that you don’t waste a bunch of time looking at listings that just won’t work). We can return with you to some of the properties you saw at an open house, as well as visiting many more that you see in the MLS listings that we send you. When you decide on a home, we can help you craft a solid offer that makes sense.

Don’t delay – call Coldwell Banker Complete Real Estate at 403-686-1455.

I was at a networking and business mastery event, and the first person with whom I spoke asked “how do you choose an agent?” I thought, what an excellent topic for a blog post, so here we go.

As you may know by now, in Alberta a buyer is now required to sign an agreement to work with a realtor to purchase property. Agreements have long been used when selling a property, but this is a new requirement for buyers, and, frankly, it’s scary for some. There is a lot of information in the blogosphere and real estate websites about Buyer Agreements, so I won’t go into it here, except to say that for whatever type of agreement you sign, you are entering into a trust relationship. You have to really feel, instinctively and intuitively, that the agent you sign the agreement with will work well with you, and for you. So, that’s one way – trust your gut. We tend not to these days, though, because we try to think and reason things through. We have forgotten how important our instincts and intuition are– we should be heeding them.

Your prospective Realtor should be asking you key questions so that she can locate the listings that best match your search criteria. Our database has excellent search capabilities so that you receive properties that are a good match for your requirements. We are here to help you and to save you time, and if we’re not doing that, we’re not doing our job.

From a practical and educational perspective, though, you want to know that your agent has not only the street-cred to help you, but that she also continues to hone her skills and augment her education. Calgary Real Estate Board, RECA, and AREA have many optional courses that we can, and should, take to supplement our knowledge and upgrade our skills, in addition to our yearly required course component. Take condos, for instance. This is not a purchase to take lightly because you are not just buying a home, but you’re buying into a corporation. You should be asking your prospective agent if she has her Condo Specialist Designation so that she knows some cost-saving methods for obtaining the condo documents (as a seller), and things to watch out for (as a buyer).

Before I became a Realtor, I used a couple of different associates for my purchases and sales, but neither of them took the time, I see now in hindsight, to really explain not only the contract, but things like the Real Property Report and neighbourhood statistics for recent sold properties. I never had a realtor actually go over the RPR with me, and never once did I receive a market analysis of the area I was buying into, or leaving, and that’s absurd. The statistics are easy to obtain and should be automatically provided to assist the client in her decision-making.

If we can help you with any of your Real Estate needs, please contact us at 403-686-1455 or email: info@cbcalgary.ca.

When you’re house hunting, it’s a great idea to know the amount of mortgage you qualify for, your monthly payments, and that your interest rate will be held for a specified period of time i.e. 120 days. This way you can shop within your price range, you don’t have to worry about rates rising, and both realtors and sellers will know you’re serious. Be realistic though and make sure you can afford that pre-approved amount.

Keep in mind that not all pre-approvals are the same, and that a pre-approval is not a mortgage approval. Some are just a simple rate guarantee subject to lots of conditions and a later approval. For a full pre-approval you need to submit your application and documentation so the lender can qualify you, and even then it’s a good idea to have a financing condition in your purchase offer because your property will need to be assessed by your lender. Be sure to not make significant changes after getting the pre-approval i.e. changing jobs, adding debt or missing payments, co-signing another loan, or using your down payment money.

Article courtesy of:

Cam Brown
Accredited Mortgage Professional
(403) 650-5509
INVIS “Canada’s Mortgage Experts”
www.mortgagealberta.ca
cambrown@invis.ca

What an exciting time to be involved in Real Estate in Calgary! As mentioned in our Calgary Real Estate Stats for April 2014 article earlier this week, there are homes in certain price points that are literally “flying off the shelves!”. Multiple offers are quite common and in fact, just this week, we had one situation where 9 offers were being considered for the same property!

As the buyer, one of the most exciting, yet stressful parts of the entire home buying process is negotiating an offer. Many of us have spent a fretful few hours, or even a sleepless night, while an endless series of questions filled our minds: Will the price be appealing? Will the offer be accepted? Can we come to terms about conditions? Will the deal go through?

While price is most certainly a major – if not the major – factor in whether or not an offer gets accepted, there are still a number of other considerations that all play a part in the decision-making process. This is particularly true in cases where multiple bids are being considered. Offers aren’t just about the price and how savvy a buyer is when putting one together can make all the difference.

Of course, having the right real estate professional to negotiate on your behalf is another major factor that could mean a difference of thousands of dollars in your pocket, or even whether the offer is accepted at all. Here are a few points that may help to improve your negotiating position:

•Choose a sales professional with a proven track record of success. You’ll benefit from the experience of a representative who has already negotiated the sale of similar homes in the same area.

•Be open, direct and completely frank with your sales representative . After all, they’re representing your best interests! To do it well, they’ll need to clearly understand your needs, your goals and your limitations.

•Make your offer as free of conditions as possible. There are many conditions that can be eliminated with a little advance planning. For example, if you pre-qualify for a mortgage, you won’t have to include a condition that allows you time to set up financing. Your Coldwell Banker professional can counsel you about the many options available to you.

•Keep the terms of your offer as close to the listing as possible. Remember, all things in an offer have value. The closing date or certain exclusions may have tremendous importance to the seller, but not to you. The closer your offer ‘mirrors’ the listing, the more appealing it will be.

Hope this helps,

Susanita de Diego

Calgary is full of great communities and selecting which one to live in is not an easy task for Calgary home buyers!

When you are picking a community to live in, it largely depends on work and family. Where do you work? Downtown? Do you have a home office? If not, is a short commute important to you? Do you have children? What activities do you like to do in your spare time?

Living in a community which matches your lifestyle can make all the difference in how happy you are in your new home. If you are new to Calgary, the first tip you need to know is that Calgary is divided into four quadrants: NW, SW, SE, or NE. Here’s a quick look at the various areas and some of their characteristics:

The NW quadrant might be best for:
•Families with university-aged children since it includes the University of Calgary.
•Families that want access to Kensington which offers a great mix of cafes, pubs, bistros, and craft shops.
•People who love to escape to the foothills or the Rocky Mountains.
•People who want to live in a lake community and a family-oriented community.
•People who want lots of green space.

The SW quadrant might be best for:
•If families with university-aged children since it contains the Mount Royal University.
•If you are able and want to pay a higher price, which means dwellings that are worth more and are considered upscale.
•Singles and couples since it is close to the downtown core with bars, restaurants, and shops.
•People who want easy access to the Rockies.

The SE quadrant might be best for:
•Lower priced housing and newer suburbs.
•People who work in the industrial sector so they have easy access.
•Families who want to be near some of the best recreational parks and natural reserves.
•People who want to live in a lake community and a family-oriented community.

The NE quadrant might be best for:
•People who want to be centrally located in the city and have easy access to downtown.
•Lower prices for people just starting with their first home purchase.
•People who need access to the airport on a consistent basis for frequent trips out of town.
•People who want newer homes and many of the older homes are being replaced.
•People who have small children and want easy access to the zoo.

If you have questions about which community in Calgary might be the best fit for your family, please contact Coldwell Banker Complete Real Estate and let us help you find the perfect combination of home and community!

For many first-time homebuyers, saving the 5 per cent downpayment is one of the big obstacles to home ownership, especially if you’re paying rent, paying down student loans, and trying to live a life. Here are some programs and tips that can give your downpayment a boost – to get you into your home faster:

1.The federal Home Buyers’ Program (HBP) lets first-time homebuyers withdraw up to $25,000 each (or $50,000 for a couple) tax-free from their RRSPs. You’ll need to pay those funds back, of course, on repayment plan.

2.A financial gift from a parent or blood relative can be used as a downpayment. You’ll need to document in writing that the funds are a gift and that you are not required to pay the money back at any time.

3.A parent or grandparent could also provide a loan with a modest interest rate and reasonable expectations for loan repayment. Or you could look at borrowing the downpayment through a loan or unsecured line of credit.

If your dream home is out of reach, look for a starter home. Use today’s low interest rates to start hammering down your mortgage, then watch for the opportunity to get the home of your dreams – using the equity and credit rating you’ve been building!

Article courtesy of:

Cam Brown
Accredited Mortgage Professional
(403) 650-5509
INVIS “Canada’s Mortgage Experts”
www.mortgagealberta.ca
cambrown@invis.ca