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

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 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.

I was speaking with a neighbor the other day, who related that her Realtor® advised her to paint her whole house cream, and replace all of her carpets with hardwood. And then sell. And then sell???

Why would a homeowner want to put all of that time and money into doing some fairly expensive renovations just to sell? Having done renovations myself, and moved into homes that had been renovated, I do not give my sellers that advice at all.

Here’s my point of view from a purchaser’s stand point. My husband and I moved into a house that had just been painted and re-carpeted. Seven years on, the carpet looked like it had been down since the house was built in 1984 because the individual purchased the cheapest builder-grade carpet she could. It didn’t last, and both my husband and I hated it. Additionally, the whole house had been painted masking-tape yellow. Blech! I would have preferred to pay less for the house (and there’s the rub…) and put my own decorating taste and renovation dollars into it. We would have purchased a higher quality of carpeting that would have lasted longer, been a better colour for us (NOT an insanely light cream!) and not ended up in the landfill after such a short time. The former owner only applied the lipstick in order to get the date! Of course, you could ask why we purchased…well, at the end of 2006 in Calgary the market was hot, and houses didn’t last long. There were, and are, an awful lot of awful houses on the market that are not cared for, not clean, and don’t show well, so when we found a nice house, we had to move on it. We waited for as long as we could and put up with frayed and pulled carpet that we couldn’t keep clean because we couldn’t justify changing something that we knew was, well, new!

As a seller who has done renovations and then ended up selling, and then found out that the new carpet I had installed had been removed for hardwood flooring, I felt bad that those resources were just thrown away, both monetarily and physically. The carpet was perhaps 2 years old when I sold, and it was decent and clean carpeting and underlay. So, essentially, the money I spent ended up in the landfill. I had also moved the washer and dryer out of the garage, and joined a small bathroom with another separate small room to make a decent-sized laundry room/bathroom combination. This was all undone too, and a shower put in. Well, ok. Previously, the house only had 1 bathroom with bathing and showing capabilities, so that makes sense.

What advice would I give to my neighbor then? I would advise her to paint. Good quality paint is still a bargain, especially if you can do the painting yourself (and do a good job). Even hiring a painter is not a huge expense. A couple of coats of paint go incredibly far to making your home look spruced up and cared for. Tired and dinged walls get fixed, and the marks get covered over. Suddenly, the home looks sparkling clean. I also would say to this individual to not just go white or cream on the walls. Pick a neutral, certainly, and something not too dark, but something that has a bit of life in it and that works with the other colours. If there is tired old wallpaper, remove it and paint! Chicken-themed wallpaper in the kitchen is not going to appeal to anyone.

She should also do some repairs to things like sagging screen doors, doors that don’t work properly. Don’t defer the maintenance, because that gives the impression that nothing in the place is cared for. She could also de-clutter. She’s moving anyway, right? So why not get some boxes and do some packing. Less stuff will make the place look more open, hence larger, and the depersonalization will allow the new purchasers to envision themselves there.

If the carpet is old, but still in decent condition, I’d suggest this neighbor get it cleaned, and that’s it. I would suggest she NOT remove it only to put hardwood in. Who knows what the next buyer is going to like, or be like? If they have allergies, they’re likely to remove the carpet, but then look for a product that won’t react with their allergies. Is a seller likely to do that? Nope. Whatever is cheap and adds the lipstick is likely to be the choice, and then those products end up in the landfill prior to their life cycle just because they don’t work for the new owner.

I would also advise her to clean, clean, and then clean again. Clean behind the fridge, under the stove, the hood fan, get the cobwebs out of the top corners of the rooms – dig deep! If it’s sparkling clean, it shows well.

A seller can price her home accordingly, so less than others that have had expensive and extensive renovations, but then put the renovation money into the home she is going to be in for a while. She will get to enjoy the renovations herself, rather than just renovating for somebody else.

It’s been all over the media, the Calgary Real Estate Market is currently in a “Seller’s Market” pattern.

What does this mean for Buyers?

Well, it depends on which of the following categories the Buyer is in;

1.Wants to buy. This category represents a Buyer who will buy if the right property comes along but they are not in a hurry. Perhaps they are currently renting or they currently own a home but can afford to buy their next home without having to sell the home they are in.

2.Needs to buy. This category represents a Buyer moving to Calgary from somewhere else who has a limited time in which to find their home in Calgary. Also included in this category is a Buyer who has already sold their home, or a renter whose lease is up and must vacate their rental property.

If a Buyer is in the needs to buy category, this market can represent a lot of frustration. The properties that come on the market that represent good value do not stay on the market long and are often sold for over the asking price with multiple offers.

Not only does the Buyer need to view the property almost as soon as it hits the market, they then have to make what feels like an incredibly quick decision about making an offer, and to make matters even more stressful, they have to decide the maximum amount that they would pay for that property without regretting that price one way or another down the road. Some Buyers will even decide not to include important conditions in order to improve the odds of getting their offer accepted by the Seller.

So what is the best strategy if you are in the need to buy category? First and foremost know your position. Have you been pre-approved? Do you know how long your lender needs for the financing condition? Do you need a subject to financing clause? Based on the condition of the property do you want to have an inspection as a condition or can you include the inspection as a term, which would allow you to have an inspection but you would make any necessary repairs after you take possession. Are you qualified to make that kind of decision? If you are planning to live in the property for a long period of time, how much over perceived “market value” are you willing to pay if you are in competition with another Buyer or Buyers? Try to align your offer with the Seller’s inclusions and possession date. And last but not least, if you are in competition, make sure you are with your Realtor at the time they are presenting your offer. Your presence allows you to make quicker changes if necessary.

If you are in the wants to buy category, and you do not want to utilize any of the above strategies, you might want to consider holding off your purchase until the market has changed. No one can definitively tell you when this change will occur, and the prices will likely have gone up, but the process will be less stressful.

Hope this helps,

Susanita de Diego

When you’re selling your home, you’re in competition with every other listing in your area to attract potential buyers. One of the more popular ways to do this is by holding an Open House. Of course, if you want to maximize your results, there’s a lot more you can do besides just crossing your fingers and hoping for good weather! The first step is to talk to your Coldwell Banker® real estate professional to find out how to showcase your home to its best advantage. You’ll learn that a great Open House appeals to all the senses. While a listing photo only offers a limited visual, an Open House allows you to present your home using an effective combination of sights, sounds and smells.

•Turn the lights on.  This will make your home look bright and spacious.  A crackling fire burning in the fireplace offers a pleasing sight and sound.

•Play soft music.  Background music adds to a room’s ambience and can actually promote a relaxed conversation.  Just choose something soothing and keep the volume low so your salesperson can be easily heard.

•Fresh scents only.  The best scent to present is the fresh smell of…clean!  Make sure problem areas like ashtrays, shoe trays and litter boxes are kept pristine.  Open the windows and let fresh air circulate through your home.

•Go the extra mile.  You might even decide to have cookies baking or coffee brewing.  These delightful, homey smells will make a welcoming impression.

•De-clutter.  When it comes to showing appeal, less is more. Create a feeling of spaciousness by getting rid of the clutter!  Have a garage sale, empty the closets and give unused items to charity.

•Give your pets the day off.  While they may feel like part of the family to you, pets can be a major distraction to potential buyers.  Consider taking your dog for a walk or leaving the cat with friends for a few hours.

•Protect your valuables.  While your salesperson will take utmost care during showings, it’s best not to risk your more fragile or sentimental treasures to loss or breakage.  Pack them safely away.

•Let your salesperson do the talking.   One of the best things you can do to make your Open House a success is to get out and stay out!  You’ll get better results when visitors feel free to linger and ask very direct questions of your sales representative.  If you’re nearby, buyers feel more constrained and your salesperson may not even get an opportunity to listen to their concerns and offer solutions.  So pack up the dog and the kids and enjoy your day away from home. Trust your Real Estate professional to do their job right.  You’ve set the stage; now leave the selling to the expert!

Of course, these are just general guidelines for a great Open House. Coldwell Banker Complete Real Estate Team members know what homebuyers are looking for, and will be happy to do a walk-through of your home and offer suggestions on how to maximize your home’s buyer appeal.

You have probably heard how important first impressions can be. But did you know that within 15 seconds a buyer has developed an opinion of your property? This is why establishing the right first impression is critical to achieving a successful sale.

In addition to the items below, think about how you may have personalized your home over the years and if your presonal touches may have a negative impression on a potential buyer. A buyer must be able to visualize themselves living in your home – too many personal statements throughout your home may not allow a potential buyer to see how their family will settle in.

A little preparation may bring you a higher sale price and a quicker sale! Is your home ready? Use this handy checklist to make sure your home is ready to show!

Clean and Store

Store all bikes, toys and equipment out of sight.
Get rid of unnecessary furniture.
Clean closets and clear off countertops.
Scrub all tile floors.
Clean all carpets.
Clean all windows and mirrors.
Clean stains in all sinks and tubs.

Fix-It

Fix leaky faucets.
Replace missing door or cabinet handles.
Fix or replace broken appliances.
Replace broken tiles in bathroom or kitchen.
Paint if necessary.
Discuss major repairs with your Realtor®.

Freshen Up

Stop smoking in the house.
Bathe pets and clean out litter boxes.
Empty all trash, recycle bins, etc.
Dry-clean drapes and shampoo carpets.
Use baking soda boxes in smell-prone areas.
Place flowers, potpourri or air fresheners around the house.

Ask a “buyer”

Invite a friend to walk through your home like a buyer would. Get their opinion on whether or not it’s inviting, clean and well-maintained. Make any changes they suggest.

Who sells their home during the winter? The temperatures are freezing, so no buyer wants to shiver as they look for houses. The days are shorter, so there’s no time to view properties during daylight hours. And the weather is terrible, so nobody wants to deal with the ice and snow. No wonder sellers pull their offerings from the market…But you don’t have to be one of those people!

If you want to enjoy two advantages of selling your home during cold weather, read on:

First, you have almost no competition. Secondly, many  potential customers appear during the holiday season. These are the folks coming back to visit family and friends, or to attend school reunions. Maybe they long for a permanent return. Also many corporate relocation buyers appear at this time of year. You can fulfill your desires if your property is available for sale to them. Remember, most of the buyers searching for homes at this time of year are serious buyers.

Of course, you need to prepare your home differently for cold-weather selling. First, make sure the path to your front door is free of any weather-related obstructions, such as large mounds of snow or thick ice. You want potential buyers to be able to get inside. If you want them to visit special outdoor areas, such as decks or storage areas, make sure those places are clear as well.

Make sure that buyers cannot feel any drafts while inside. If you don’t weatherstrip sufficiently around doors, windows, or vents, any cold air will force visitors to wonder if your insulation is inadequate. Keep the interiors bright and cheery by turning on all the lights, getting a fire going, and setting out holiday decorations. Bake a pie, gingerbread cookies, or other treats to offer potential buyers.

For more ways to sell your house during cold weather, or if you want to put your house on the market, please contact us, we’re happy to answer any questions you may have!

I remember the first home I listed. I had 2 dogs and a Mazda hatchback. Last minute showings were a nightmare as we’d climb into the car and park down the road – while I prayed that I had managed to vacuum up all of the dog hair, put the toys away, and hide the dog bowls…and dang! I forgot to clean up the business taken care of in the backyard!

Meet KC and Charlie. You just have to look at them and they will magically shed all over you. While I did manage to sell my home quickly, there were definitely some tense moments as juggling work, family, home and dogs became a full time job!

If you are trying to sell your home, the goal each and every time a potential buyer comes through is for them to be able to imagine themselves living in your home. While the super-sized comfy dog bed laying on the floor in the living room is not offensive to you – a non-pet owner may be immediately turned off.

So what can you do if you are trying to keep your home in showing-ready form while living with pets?

Here are some ideas for you to try:
•Give Fido a vacation – see if a relative or friend is able to keep your pet(s) while your home is on the market.

Since this may not be an option for everyone, read on!

•Try your best to keep shedding pets off the furniture. Fabric covered furniture and bed spreads are often the first thing people see when entering a room. Try to keep them hair-free.
•Keep doors to rooms closed. Often pets will just wander in and out of rooms, for no real reason, leaving a trail of hair behind them.
•Keep a bin handy to toss toys, bones and dishes into for last minute showings.
•More walks = less backyard business! Try taking your dog for walks more often rather than given them the run of the back yard or dog run. Believe me – when you are in a hurry to get the inside of the home ready, the backyard will almost always slip your mind!
•Have the carpets professionally cleaned. This will give your home a fresh scent and get rid of stains on the carpet that you may have just gotten used to seeing, so they are not as obvious to you any longer.
•Keep your Realtor® in the loop. Let them know if the pets will be in the home or see if a neighbour can assist with letting them outside.
•Do your pets sleep on the bed with you? Consider using a flat sheet on top of your comforter to collect pet hair. In the morning, remove the flat sheet for a hair-free bed. (don’t forget to close the bedroom door now!)
•Keep lint brushes handy. Use them to remove hair on the bed or toss cushions – or anywhere you spot pet hair as you rush out the door!

Looking for more tips to prepare your home for sale? Check out 60 Cleaning And Organisation Tips to Prepare Your Home for Sale (By Cleaning Experts)

If you have a special circumstance with your pet, discuss this with your Realtor®. Chances are they may have a suggestion for you. As a professional, they have likely encountered many situations involving pets and showings and will be able to offer some great advice!

Good luck with showing your home!