The future of Toronto real estate?

From the April 28, 2008 issue of Canadian Business

Could it happen here? The U.S. housing market is bad and getting worse. Builders built too much through the boom, lured by skyrocketing prices that proved as unsustainable as the lending practices that fuelled them. As in any market, the emergence of a big supply/demand imbalance requires sellers to do two things: make less and discount more. So it’s been. Housing starts have dropped 54% from their peak. Home prices are falling in every one of America’s 20 largest cities, down by an average of 13% from their peak.

The scary thing is, though, that even these dramatic declines haven’t been nearly enough to stabilize the market. The supply of unsold new homes stood at 10 months’ worth of sales in February, up from less than four months at the height of the boom. That represents the most bloated inventory in 27 years. The American housing bust has yet a way to go.

Probably the most common question I get these days is, “Could this happen in Canada?” My answer is yes, it could happen here, not least because it has happened here. Canada’s housing busts have tended to be a bit more regionalized than what we’re seeing in the States, but no less profound. It took seven years for Calgary house prices to regain their 1981 peak. It took eight years for Vancouver house prices to regain their 1995 peak. It took 12 years for Toronto house prices to regain their 1989 peak.

See article by David Wolf in Canadian Business »

April 16, 2008 in Selling Toronto Real Estate | Permalink | Comments (6) | TrackBack

How long should it take to sell?

The time it takes to sell a home varies, but there are things within your control that will help it sell faster. Some homes take days to sell, while others take months. Generally, a desirable property priced in the "market zone" should sell within four weeks in a normal real estate market.

But don’t get discouraged if a sale takes longer. Instead, see if you can determine why it’s not selling and ask your listing agent what you can do to help speed things up.

Curb appeal

First impressions go a long way. Before you list your home, give it a quick face-lift. Take care of minor cosmetic repairs both inside and out. Wash your windows, weed the garden and trim back any overgrown shrubs or trees. Give your front hallway a fresh coat of paint, replace light bulbs and dust for cobwebs. All of these quick fixes can make a big impact on selling your home quicker.

The price is righteous

Listing your home at the right price is key when it comes to selling. It can be difficult for homeowners to determine their homes’ true worth because of emotional ties and lack of exposure to the market. So get your listing agent to do a competitive market analysis (CMA) to objectively pinpoint your home’s optimal price. You don’t want to scare off potential buyers with an unrealistically high price.

But often, the time it takes to sell your home will depend on factors that are beyond your control.

Market demand

If your neighbourhood is hot and there aren’t many homes for sale, you have what’s called a seller’s market. So if the demand for homes is greater than the supply, you should sell quickly and receive a good offer. On the flip-side, if you’re selling in a buyer’s market where supply exceeds demand, it will likely take longer to sell and you may have to accept less than you wanted.

Economic influences

The local business climate and fluctuating interest rates can also influence how long it takes to sell your home. For instance, if interest rates fall, people can afford to borrow more. However, if the area’s largest employer announces layoffs, very few people will be thinking about buying a new home. The best way to get a good understanding of the market conditions in your area is to monitor current property sales.

But as I have often told my clients, selling is like entering a lottery and you just have to wait until "your number comes up".

March 27, 2008 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

Preparing Your Home To Sell

When preparing your home to sell, it is imperative that you put yourself in the buyer's shoes. Look at your home through the buyer's eyes. You've grown accustomed to the way your home looks but they're seeing it for the first time and you only have one chance to make a good first impression.

Curb Appeal

When a buyer pulls up to your home it must invite them inside. Make sure the lawn is neatly mowed and edged. Trim trees and shrubs and weed the flower beds. Keep driveways and walkways free of snow and grass clippings. Touch up any chipped or peeling paint. Repair any damaged windows, screens or doors. Replace any burned out bulbs in exterior lighting. Pick up all toys and clean up clutter in the yard.

Welcome Home

As the potential buyer walks through the front door, does it whisper "Welcome Home." Make sure the front door is in tip top condition and free of any obstacles. When they step inside, be sure they're greeted with a fresh and pleasant aroma.

Interior

Once that potential buyer has crossed the threshhold, it's critical that you have decluttered and properly staged your home. Here is a checklist to help you out:

First Impression Checklist for Showings

So if you're planning to move this year, now is the time to begin preparing your home for sale.

March 26, 2008 in Selling Toronto Real Estate | Permalink | Comments (2) | TrackBack

Fluffing time for Toronto real estate

The future looks bright for the emerging home staging business

For the last several years selling real estate in Toronto has been easy. Just post the listing on the MLS, wait three days and then consider the offers — most higher than the asking price. But now that the market's changing, things aren't going to be so easy.

Enter home staging. I used to think it was just a fad that would soon die out because in the extreme seller's market that Toronto has been experiencing, fluffing was so unnecessary. But not now. As selling a home becomes harder — and harder — it may come to a point where staging a house is something that is required when it´s time to sell.

Look what happened with "home inspections". Most people today wouldn't think of buying a home without having it inspected first. They want to make sure that the roof doesn't leak, the foundation is solid, the furnace works, and so on. However, there was a time when home inspections were new to the real estate industry and few people took advantage of them when buying. However, as more buyers began to see the benefits of having a home inspection, the demand grew, and now it's become an accepted practice. That's where I see home staging going in the coming buyer's market.

In fact, Debra Gould, Toronto's "Staging Diva", is already seeing this trend in certain neighborhoods in Toronto which certainly wasn't the case five years ago. In neighborhoods like Leaside, Riverdale and the Beach, a good percentage of sellers always stage their homes when they put them on the market. It's something they know they have to do to stand out from the competition. It's become part of the process of selling a home. That will eventually be the case in most locations, especially in major cities such as Toronto.

As more informed homeowners hire Real Estate Stagers and more buyers have the chance to view homes that have been staged, other home sellers will realize they too have to follow the practice. Otherwise their un-staged homes will look even worse by comparison.

You only have to look at prime time television to see further evidence of the design/decorating trend. There was a time when HGTV didn't exist, and even when it first started, it was fringe programming. Only certain kinds of people watched decorating shows, but now everybody watches.

Oprah is always talking about decorating and design. There are home makeover shows on prime time networks and there are thousands of decorating and home improvement magazines. More and more people are becoming aware of the difference it makes when things look good, and they aspire to live the trendy lifestyle they see portrayed in the media.

What does this all mean for the future of home staging? Well, if it's become a sought out service in Toronto's extreme seller's market, it will become mandatory as we shift into a buyer's market.

March 10, 2008 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

Who pays real estate commissions?

A good question that's hard to answer. First, to determine who actually pays the real estate commissions -- whether it's sellers or buyers or both -- we must first take a look at how real estate agents are paid and how they share cooperating commissions under the MLS system.

It usually works like this:

Listing Agents' Fees

The most common type of listing agreement between sellers and their agent gives that agent's brokerage the right to exclusively market the home. In return for bringing a buyer to the table, the seller agrees to pay a commission to the broker. Typically, this fee is represented as a percentage of the sales price and is shared between the listing brokerage and the brokerage who brings the buyer.

Co-operating Splits

Divisions of fees among brokerages is not always equal. For example, a seller could sign a listing agreement for 6% that stipulates the listing broker will receive 2% and the selling broker will receive 4%. So it's not always a 50/50 split. In a buyer's market particularly, sellers might want to consider asking the brokerage to give a larger percentage to the buyer's agent. In a seller's market, the buyer's broker might receive less. There is no set formula.

Buyer Representation

Under a Buyer Representation arrangement, the named brokerage and agent represent the buyer. But fee paid to the brokerage is, most commonly, paid by the seller. Some buyer representation agreements contain clauses that will compensate the brokerage for the fee it is due less the amount paid by the seller. For example, a cooperating listing might offer to pay a broker 2.5% of the sales price, whereas the brokerage operates at fees of 3%. The difference of .5% could be paid by the buyer if the broker chooses not to waive that amount.

So who Really Pays the Commission?

It can be argued, rightfully so, that the buyer always pays the commission. Why? Because it's typically part of the sales price. If the seller did not sign an agreement to pay a commission, the sales price might have been lowered. And therein lies the appeal of buying homes through unrepresented sellers because, given the same logic, those prices should reflect a net sales price without a commission. But those sellers haven't quite figured this out yet which causes potential buyers of those listings to be consistently disappointed.

To help alleviate much of this confusion, don't be astonished if over the next few years sellers and buyers each retain their own representation and pay separately for said representation.

December 15, 2007 in Selling Toronto Real Estate | Permalink | Comments (4) | TrackBack

Tips for improving curb appeal

When selling your home, the goal is to sell it quickly at the highest price while investing as little as possible in renovations. With a limited budget and a little effort, you can greatly increase your home's appeal by focusing on what buyers will see on the first visit. 

If they don't like what they see outside, they'll never walk inside. Curb appeal can often mean the difference between a house sitting for months or selling in the first week.

The view from the street can net you more traffic than you might think. Eighty-four percent of all home buyers use the Internet to shop for a new home, according to 2006 figures from the National Association of Realtors.

First impression is key. People shopping on the Internet give it one look. If they don't like what they see, that's it.

Here are a few tips to help you prepare your house for sale:

Tip #1: Refresh the Exterior

First impressions count when it comes to selling a home. A majority of buyers will not even get out of their car if they do not find the exterior appealing. The best way to improve your exterior includes:

Tip #2: Tidy Lawn and Landscape

Home buyers associate the condition of your lawn and landscape with the condition of your home interior. The best way to enhance the yard includes:

Tip #3: Create An Inviting Entrance

The front door to your home should invite buyers to enter. The best way to improve this includes:

Tip #4: Reduce Clutter and Furniture

A buyer cannot envision living in your home if they cannot see your house. A home filled with clutter or even too much furniture distracts buyers from seeing how they can utilize the space your home offers. If you have limited storage space, you may want to consider renting a temporary storage unit to place items you wish to keep. The best way to improve your home includes:

Tip #5: Clean, Clean, Clean

The cleanliness of your home also influences a buyer's perception of it's condition. The appearance of the kitchen and bathrooms will play a considerable role in a buyer's decision process, so pay particular attention to these areas. The best way to improve this includes:

Tip #6: Make Minor Repairs

The small stuff does count, especially with first time home buyers. Without dismissing the importance of repairing major items such as a leaking roof or plumbing, you do not need to spend money on replacing these items. Instead, focus on the minor repairs that make your home visually appealing. The best way to improve your home includes:

Tip #7: Showcase the Kitchen

The heart of any home is the kitchen. If you are going to spend any money on renovations, this is the one area where you will see the greatest return. Even with a modest budget, focusing on a few key areas can make a great difference in getting the asking price for your property. The best way to showcase the kitchen includes:

Tip #8: Stage Furniture

Furniture placement can enhance the space of your home while giving buyers an idea of how to best utilize the space with their own belongings. Take some time out to rethink how different areas in your house could be used. Some ideas to think about includes:

Tip #9: Light Up The House

Create a sense of openness and cheerfulness in your home through lighting. To improve the lighting try:

Tip #10: Freshen up the Garage or Workshop
Tip #11: Add Natural Touches

You can easily add color and style to your home by placing fresh flowers and fruit bowls throughout it. Some ideas to consider includes:

Tip #12:  De-personalize.

Remove objects that your potential buyers won't be able to identify with. For example, political and religious items may turn off whole groups of buyers, because they cannot "imagine" your home as their home. Buying a home is an emotional decision, and you want potential buyers to make an emotional connection with your home by being able to "see" themselves in it.

Tip #13:  keep your pets under control

Always keep your pets under control. Try confining them to a specific area. Although you may love your pets, they can be off-putting to other people, and smells can be offensive, so make sure there are no lingering odours in furniture or flooring, and if there is, get them cleaned before you sell.

Tip #14: Fit into the community.

If there are tons of kids in the neighborhood, it's OK to have a bike in the yard. Not so if your neighborhood is mostly retirees. Keep your audience in mind as you show your house.

Tip #15: Don't Forget the Rear View

Buyers doing a drive by will try their best to see your back yard. If it's visible from another street or from someone's driveway, include it in your curb appeal efforts.

Tip #16: Evening Curb Appeal

Do your curb appeal exercise again at dusk, because it isn't unusual for potential buyers to drive by houses in the evening. One quick way to improve evening curb appeal is with lighting:

Cosmetic changes do not have to be expensive. In fact, costly home improvements do not necessarily offer a good return on your investment when you sell. It’s attention to the basic, anything that says “this home has been carefully maintained”, that will help you get the price you want.

September 13, 2007 in Selling Toronto Real Estate | Permalink | Comments (0) | TrackBack

Selling your Toronto home

Listing your property for sale on the MLS®

Now that you've found the perfect agent, you will need to complete a Listing Agreement to include your home for sale on the Multiple Listing Service. The TorontoMLS is a co-operative marketing system used by all members of the Toronto Real Estate Board to match their buyers with the properties listed for sale.

The Listing Contract will include:

A Realtor generally works on a commission basis and only receives payment upon the sale of your home. The commission can be a percentage of the total sale or a flat rate—this is entirely negotiable between you and your Realtor. The commission is not set by law or by local real estate boards.

Besides covering the costs of marketing your home, your Realtor must share the commission fee with the real estate agency for which he or she works as well as the buyer's Realtor, if there is one.

June 28, 2007 in Selling Toronto Real Estate | Permalink | Comments (0) | TrackBack

A gnome-free zone

Curb appeal is key in the real estate game. Now, home stagers are taking their act to your tacky front yard and turning it into a temporary oasis that's prepped to sell

So, you think you're ready to sell your house. You've stored away all the personal knick-knacks, scrubbed the counters until they sparkle and arranged the furniture to maximize the open space. But before you hang that "for sale" sign, take a look out the window. Are weeds poking through the cracks between your cobblestones? Is the paint on your front door chipped and gloomy? Was Paul Martin prime minister the last time you pruned your shrubs?

You may just need a garden fluffer. This new breed of real estate professional will banish your tacky backyard gnomes and make your lawn look like Eden - at least for the open house. Now that home staging has become standard practice for selling a house, the industry is branching out into gardens, front porches and decks.

Lack of curb appeal is deadly in real estate, stagers warn. First impressions start outside, and those weekends you spent drywalling the basement won't pay off if potential buyers don't make it past the ugly planters on your front porch.

"I've seen people who have spent hundreds of thousands of dollars improving the inside, and you wouldn't know it walking up to their home," says Luanne Kanerva, principal designer at Katu Design in Toronto. "People will drive by, so you want to make sure you get them in."

Ms. Kanerva and others say the demand for garden fluffing is steadily growing; many home stagers include curb appeal in their standard service, which can cost anywhere from a few hundred dollars to several thousand. Ms. Kanerva recommends spending about 1 per cent of the sale price on staging, inside and out.

A small investment can pay off big time, says Michelle Brennan, a garden stager based in St. Catharines, Ont. She recalls one home in Burlington, Ont., that languished on the market for three months. Ms. Brennan replaced an old concrete walkway with a curved interlock path, flanked it with flower beds and planted lavender on a bare side patio to give visitors a fresh scent when they walked by. The owners followed her recommendations to repaint the tired green front door a more modern-looking charcoal and added flower boxes on the windows. The home went back on the market and sold in weeks.

Even picture-perfect gardens can use a little fluff. Karen Cole, an interior decorator, has an English garden to swoon over and an immaculate deck overlooking Wellesley Park in Toronto's Cabbagetown neighbourhood. But as she prepared to put her house up for sale this week, she took some tips from Ms. Kanerva. On the stager's advice, Ms. Cole rearranged the outdoor chairs and tables into smaller, conversation-friendly groups, power-washed the deck and added some bright pink petunias in the back.

Not every fluff job is as easy as Ms. Cole's, of course. A home stager's role is part designer, part diplomat. They must persuade sellers to adopt a look that appeals to the majority of buyers without saying flat out that their rusty porch swing will send prospects running back to the MLS.

"You have to be very careful," Ms. Kanerva says. "You might say, 'This chair on the front porch has seen better days, can we take it away?' and they'll say, 'Oh, that's my father's chair, all my memories are of him sitting in this chair.' "

In a case like that, she says, she'd gently explain that perhaps they could find a better (less conspicuous) place for dear daddy's chair; in a pinch, she may suggest the sellers remove a sentimental family heirloom so that the buyers aren't so taken by its beauty that they want to include it in the sale.

"People have to let go of their homes in order to sell them," Ms. Kanerva says.

Garden fluffing isn't just for homes with big yards or, indeed, with any yard at all.

Designer Lisa Aiken has staged several terraces and balconies, and says making the most of small outdoor spaces can help sell condominiums. "It really does make a difference," says Ms. Aiken, owner of Terra Firma Home and Terrace Design in Toronto. "Savvy homeowners are catching on to the fact that outside sells just as much as inside."

While some garden stagers will plant flowers, most use box planters, fancy patio furniture, potted flowers, stylish umbrellas and even mirrors to create a temporary garden paradise that can be packed up and moved out when the house sells.

"Landscaping is long term, staging is instant," Ms. Aiken explains. "I don't plant, I just make it look like I have."

That doesn't mean garden staging is all trickery, though. Ms. Kanerva often defends herself to friends who accuse her of pulling the lavender-scented wool over buyers' eyes. Staging, she says, is all about creating a sense of possibility: See what you can do with this fabulous yard?

"They think it really only benefits the seller, but it also benefits the buyer, because buyers see potential in a house they might otherwise have not considered," Ms. Kanerva says.

Turn your pad into a palace

Professional garden fluffers offer these tips for improving your home's curb appeal:

On that note, send the garden gnomes into storage. Sorry guys, but your gnarled little faces just don't sell real estate.

June 26, 2007 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

Real Estate Agent Needed

At some point during the process of buying or selling real estate, you will need the services of a real estate agent. Selecting an agent can be confusing. Is there a way to determine who is most likely to succeed in helping you get your price and terms when selling, or finding the perfect house when buying?

Questions to Ask a Prospective Realtor.

  1. Do you work as a full time agent?
  2. How do you market your property?
  3. How do buyers contact you?
  4. Are you marketing real estate on the internet?
  5. In what ways will you encourage other real estate agents to sell my home?
  6. Do you have a system to provide feedback on showings?
  7. How many properties have you sold within the past 30 days? 90 days? 6 months?
  8. Do you have a list of references that I may check?
  9. Are you on the internet exposing my property to millions of buyers instantly?
  10. What is my property worth? What listing price do you recommend?
  11. How will you arrive at that price?
  12. How will you assist in my relocation plans?
  13. Are you affiliated with a mortgage lenders who can help facilitate the purchase?
  14. Will you offer 24 hour marketing on my property, for any prospective buyer who drives by?
  15. Do you guarantee my satisfaction by allowing me to exit the listing agreement at any time, if I am not happy?
  16. Do you have administrative support to see that no details are overlooked?

If the agent you are interviewing does not answer the above questions to your satisfaction, you should probably find another who does!

Setting the Price on your Home

The three major factors to consider in selling your home:

1 - Location
2 - Condition
3 - Price.

Location

Your home's location and setting influences its value. A home inside a quiet subdivision sells for more that the identical home on a busy street. Remote areas typically sell for less than close-in areas. Views, streams and trees usually enhance value. You obviously have no control over location.

Condition

New homes enjoy a marketing edge over resale homes because they are shiny and clean. Builders enhance their appeal by offering model homes (clean, bright, decorated in current colors and amenities) for buyers to examine. Homesellers should do the same

Pricing

If IBM stock is trading between 110 and 120, it does no good to insist on selling at 150. Likewise, your home must be priced within the appropriate range. You must actually "sell" your property twice: first to a buyer and then to an appraiser. The buyer is more subjective and compares the amenities of your home to those of other homes in the same price range. The appraiser is more objective and compares age, size, and cost-identifiable features in your home against other properties that have sold. Your agent must use his experience and expertise to fine-tune the price by taking into consideration all of these variables.

Prequalification

Most homebuyers go about the process completely backwards! That is they spend several weeks, months and sometimes years, looking at Real Estate ads, driving neighborhoods and attending open houses looking for the perfect home. Once they've found the house of their dreams, they place an offer to purchase it subject to obtaining financing. Then they shop for a loan. More often than not, it is above their means and they lose the sale because they can't finance it. Not only are they frustrated but so is the inexperienced agent who chauffeured them around for a year.

The savvy buyer of today shops the mortgage first and then knowing exactly how much they can afford, will then seek only properties that are within their reach. There are two methods of doing this. The standard way is to call or meet with a loan officer, tell them their financial and credit history, have the agent "run the ratios" and then tell the borrowers about how much they will qualify for. The flaws in this scenario are that the borrowers often forget to tell about their 5 late credit card payments, their new boat payment or push their income figures beyond reality.

The preferred method is to complete an application, provide income and employment records, have the loan officer run a credit report then actually submit the file for underwriting then receive an approval and commitment for a loan.

This is also a powerful negotiating tool when presenting an offer to purchase. I don't know of a single seller who would prefer to accept an offer from a buyer subject to obtaining financing over the buyer who already has a loan commitment! This can and will save you money when negotiating the contract. As the bear hunter said, you don't go out looking for a bear, find him then go and get your bullets! Get a mortgage commitment first, then find your dream house.

May 23, 2007 in Selling Toronto Real Estate | Permalink | Comments (5) | TrackBack

Nothing says it like paint

A fresh coat of paint will improve your home's curb appeal

Spring weather and sprouting gardens can inspire an urge to spruce up the outside of the house — but don't rush it, says Debbie Zimmer, paint and colour expert with the Rohm and Haas Paint Quality Institute, an educational arm of paint-ingredient manufacturer Rohm and Haas.

Here are her four rules for doing a great paint job on your house:

  1. Prepare the surface properly. Before beginning to paint make sure the surface is clean and free of chalk and dirt. Remove any loose, flaking or peeling paint; spot-prime any bare wood.
  2. Latex paints are favoured nowadays over oil-based paints by many people for "green" reasons, Zimmer said. "Those labelled 100 per cent acrylic tend to be higher quality," she added. "Choose them for the outside of your house because they are very flexible in changing temperatures, and the colour doesn't fade as much." The no-fade factor is especially welcome now that so many people are opting for bolder, brighter shades of paint that they want to hold up, she said.
  3. Use the right tools and brushes for your paint. And don't hesitate to ask for guidance in the paint store when you buy your paint. "Paint manufacturers train the people who are selling the paint," Zimmer pointed out.
  4. Paint in suitable weather — best when it's mild but not too hot; when there is little or no wind; not in direct sunshine.

Zimmer said the institute focuses on studying paint, not selling it. "We do research here, we test paint for the paint-manufacturing community," she said. "Right now outside my window there are 30,000 painted panels on exposure — they'll stay up for about three years."

More advice on painting and colours is available at the Paint Quality Institute site Web site, www.paintquality.com. For the spring tips, click on press room.

April 23, 2007 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

April showers don’t dampen sales

The Toronto area resale housing market got off to a strong start in April, with mid-month sales coming in one per cent ahead of mid-April 2006, Toronto Real Estate Board President Dorothy Mason announced today.

The 4,175 transactions recorded in the first half of the month surpass the mid-April total of 4,140 sales recorded in 2006. Meanwhile, year-to-date figures for 2007 are nearly two per cent ahead of last year’s pace.

“We are very encouraged by the stability of the GTA market,” Mrs. Mason said. “Activity is strong yet controlled, and great economic fundamentals continue to keep things moving in the right direction.”

The average price of a home in the GTA reached $372,169 in the first half of April, up one per cent over the same timeframe in April 2006 when prices averaged $366,878. The median price rose three per cent to $315,000. Active listings were down five per cent from the same time in 2006, to 22,711.

Strong activity across all housing types in the Beach (E02) helped push overall sales up 44 per cent compared to mid-April of 2006.

The condo boom in Mississauga’s city centre (W15) was largely responsible for an overall sales increase of 41 per cent in the area, compared to mid-April of last year.

Toronto’s Forest Hill neighbourhood (C03) saw 54 per cent more overall transactions than to the same point a year ago, fueled mostly by detached home sales.

In Bayview Village / Hillcrest Village (C15), overall transactions increased by 36 per cent compared to the same timeframe in 2006.

“Consumers are showing a lot of confidence in this market,” Mrs. Mason said. “Their investments are showing steady returns, yet the market is still accessible to a variety of buyers.”

April 18, 2007 in Selling Toronto Real Estate | Permalink | Comments (3) | TrackBack

Harness the Power of the Internet

If you want to sell your home, make sure your real estate agent utilizes the Internet to market your home to potential home buyers. You cannot deny the power of the Internet today as it allows us to stay connected with distant family and friends, pay our bills and apply for jobs all from the comfort of our homes. But more importantly to those interested in the real estate industry, the Internet has made the home-selling process easier and more profitable.

The Internet is the fastest-growing venue for consumers to learn and gain information about the real estate industry, and the tech-savvy Generation X and Yers are leading the 87% of buyers who use the Internet to search for homes. With such a high percentage of the market surfing the Web for a new home, you want yours on there. So ask you real estate agent what marketing tools he or she will use to list your home and make sure the Internet is at the top of the list.

Stay tuned, as we’ll be discussing various virtual marketing tools and strategies real estate brokerages are using to get maximum exposure for their listings.

For an emerging example of online real estate excellence in the Toronto area, watch for: realestateplus.ca

April 15, 2007 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

The Price is Righteous

Poor pricing will negatively affect the selling price of a home

The rationale for pricing high is this: the buyers will always make a lower offer and you'll have 'room for negotiation'.  The problem with this methodology is that the seller signals the following points to prospective buyers, none of them good!

When sellers set the price too high, they signal to potential buyers one of five things:

1/  I'm greedy: I know you'll start negotiating by knocking 5% off my asking price so I'll raise the price we start from.

2/  I'm unreasonable: I want this amount of money no matter what the market dictates.

3/  I don't know the market: I really do think my house is worth that much more than the last few houses that sold.

4/  I'm delusional: My house is unique and you'll pay for the privilege of having it.

5/  I don't really want to sell: I set my wish list price and if I don't get it, so be it.

Good buyers' agents will alert their clients to these possibilities and find properties that are better priced for their value.

For both buyers and sellers, having an agent who can accurately judge the price homes is essential.

April 8, 2007 in Selling Toronto Real Estate | Permalink | Comments (2) | TrackBack

Why you need the MLS

The key to selling your property is held in the tool that real estate agents use, the MLS®. MLS or Multiple Listing Service is basically a database of properties for sale in any given area. The Greater Toronto Area is served by TorontoMLS .

When an agent has a buyer looking for a home, the agent searches the MLS to come up with a list of properties that fit the buyer's needs, such as price, size and amenities.

To sell your property quickly, you must have your property listed in the MLS database. The MLS exposes your property to thousands of local agents and millions of viewers on mls.ca . You cannot get listed on the MLS and mls.ca without hiring an agent.

But you don't have to pay the high fees »

March 17, 2007 in Selling Toronto Real Estate | Permalink | Comments (2) | TrackBack

Setting the stage to sell your home

The age-old observation that "you never get a second chance to make a first impression" certainly applies when it comes to attracting buyers to a for-sale home. Making a good first impression can mean the difference between receiving serious offers for your home or being subjected to months of lookie-loos dropping by but never buying.

How can you ensure that your home will make the best impression possible? Here are six tips for savvy home sellers:

1. Focus on curb appeal. The outside of your house can be the source of a very good first impression. Keep the grass well-watered and mowed. Have your trees trimmed. Cut back overgrowth. Plant some blooming flowers. Store toys, bicycles, roller-skates, gardening equipment and the like out of sight. Have at least the front of your house and the trim painted, if necessary. Sweep the porch and the front walkway. After dark, turn on your front porch light and any other exterior lighting.

2. Clear out the clutter. Real estate agents say buyers won't purchase a home they can't see. If your home has too much furniture, overflowing closets, crowded kitchen and bathroom countertops or lots of family photos or collectibles on display, potential buyers won't be able to see your home. Get rid of anything you don't need or use. Fill up your garage or rent some off-site storage space if that's what it takes to clear out your home.

3. Use your nose. Many people are oblivious to scents, but others are extremely sensitive to offensive odors. To eliminate bad smells, bathe your pets, freshen the cat litter box frequently, shampoo your carpets, dry clean your drapes, and empty trash cans, recycling bins and ash trays. Place open boxes of baking soda in smell-prone areas, and refrain from cooking fish or strong-smelling foods. Introduce pleasing smells by placing flowers or potpourri in your home and using air fresheners. Baking a fresh or frozen pie or some other fragrant treat is another common tactic.

4. Make all necessary repairs. Buyers expect everything in their new home to operate safely and properly. Picky buyers definitely will notice-and likely magnify -- minor maintenance problems you've ignored for months or even years. Leaky faucets, burned-out light bulbs, painted-shut or broken windows, inoperable appliances and the like should be fixed before you put your home on the market. These repairs may seem small, but left undone they can lead buyers to question whether you've taken good care of your home.

5. Introduce lifestyle accessories and make your home as comfortable and attractive as possible. Set the dining room table with your best dishes. Put out your only-for-company towels. Make up the spare bed. Hang some fresh curtains. Put some logs in the fireplace. Use your imagination.

6. Get a buyer's-eye view. Walk up to your home and pretend you've never seen it before. What do you notice? How do you feel about what you see? Does the home seem inviting? Well-maintained? Would you want to buy this home? Your answer should be an enthusiastic yes!

February 28, 2007 in Selling Toronto Real Estate | Permalink | Comments (0) | TrackBack

Blog if you love real estate

Bloggers are changing the equation for buying a home

Blogging has hit the real-estate industry...and it just may upend a marketplace known for inefficiency and restricted information. There are hundreds, perhaps thousands, of blogs covering real estate and they shine unfiltered lights on their subjects, reporting market gossip, innuendo, facts, opinion, virtually anything.

"Blogs are telling it like it is at the street level," said Brad Inman of Inman News, a large real-estate news service.

Insiders believe that blog sites empower consumers, enabling them to make better choices, obtain services at a better price, and find better brokers and other service providers. It may even help them cut in to that typical 6 percent broker's commission when they sell a property, by giving them the information and confidence to carve out better deals.

See article at CNNMoney.com »

February 14, 2007 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

What a Seller's Agent Does

Fact: 87% of resale homes are eventually sold by an agent*

Remember back when you bought your home? After weeks or months of looking, you came across a house you liked, made an offer, and soon found yourself signing the biggest stack of papers you’d ever seen. Afterwards, you took your new keys, unlocked the door, and, with a big sigh of relief, said to yourself, “we're home!”

And now, it’s time to sell. Maybe you’ve built up some equity and want to step up to someplace bigger. Or maybe you’d rather find someplace smaller, reduce your mortgage and maintenance costs, and put that money to other uses. In the end, the reason doesn’t really matter — why you’re selling is as individual as you are — but how you sell your home can have a huge effect on the outcome.

It can be a bit intimidating, especially since there seem to be more options all the time. There are full-service agents, FSBO (For Sale by Owner) programs, discount brokers and flat-fee services brokers. The fact is, four out of five home sellers will use a real estate agent at some point during the process, so it makes sense to understand exactly what real estate agents do.

One Agent, Many Hats

At the simplest level, a real estate agent represents buyers and sellers in the purchase and sale of "real property" (e.g., a house). When you were looking to buy, the agent you worked with probably spent most of his or her time showing you houses, which is probably why so many people think that’s primarily what agents do.

When you’re selling, though, showing your house is actually a very small part of an agent’s job. Assuming you’re working with a full-service agent and that they’re doing a good job, they’ll also be doing most or all of the following:

Help you price your house: A good real estate agent will understand the local market in general and complete a Comparative Market Analysis or CMA to help you set your price correctly. The trick is to pick the highest price you can without scaring off potential buyers.

Provide advice on how to present the house: from curb appeal to emptied closets, agents know how to highlight the amenities buyers want that you have. Market the house to buyers: For Sale signs, Internet advertising, direct-mail fliers, newspaper ads, and showings — they’re all tools to get buyers to take a closer look.

Market the house to other real estate agents: Truth be told, an agent’s most important target market is not home buyers, but rather other agents who have buyers for your home. And their most powerful weapon is the MLS® or Multiple Listing Service®, which, by the way, got its name from “listing” agents.

Provide you with feedback on showings so you can make good decisions. Over time, the market place of buyers gives you more information on what your home is worth and any changes that might make your home more appealing to your prospective buyer.

Represent you during negotiations: Once an offer is made, your agent becomes part messenger, part manager, handling counter offers and contingency issues and following the paper trail from initial offer to final agreement.

Needless to say, it can be a huge job. (Time-consuming, too, which, come to think of it, may be why you see those agents running around every weekend.) So, when it’s done well, it deserves decent compensation. The trick is determining what’s decent for you.

Commissions, Discounts, and a la Carte Services

Traditionally, the real estate industry has operated under a fairly standardized model: a seller would sign a contract with a real estate agent who would agree to market the seller’s home (using the above methods) in exchange for a percentage of the selling price when the deal closed. That commission — typically 5 percent — was split (typically 50/50) between the seller’s agent (the listing agent) and the agent who delivered the buyer (the selling agent).

Consider an example: Let’s say you sold your house for $250,000 with the help of an agent who charged a 5% commission. Of the proceeds, you’d owe the agent $12,500, who, in turn, would owe the buyer’s agent $6,250. And remember, the listing agent is responsible for their expenses (e.g., advertising, etc.).

Now, let’s say you were fortunate to sell in a sizzling-hot market and the sale price hit $500,000. The agents’ commission? A total of $25,000, or $12,500 for each agent.

Welcome to the new world of real estate, where that question has helped spawn an explosion of alternative approaches to the marketing and selling of homes. Each has its pros and cons; all have their proponents and detractors; and at least one will probably fit your style:

Traditional service: The standard-bearer of full-service realty, this refers to the one-agent-many-hats scenario described above. A real estate agent handles all aspects of the marketing and selling of your home in exchange for usually, a 5% percent commission. (Even though it may not feel that way, this commission percentage is negotiable. Discuss it with your agent.)

Discount commission: Similar to the traditional model, discount brokers offer some services, but for a lower commission (generally 3 to 4 percent). Proponents of discount realty say higher home prices (and other factors such as efficiencies created by the Internet) allow them to make good money on a lower commission; detractors suggest you get what you pay for.

Flat-fee service: As the name implies, these providers offer their services for one flat fee. That can mean anything from an MLS listing for a few hundred dollars to a comprehensive, full-service program for tens of thousands of dollars. The point is that the commission expense is a fixed amount regardless of the sale price. A la carte service: Like flat-fee service, this system charges set fees, with the option of choosing from a menu of services and providers. From yard signs to MLS® listings, to open houses etc, home sellers pay for the services they choose to use.

FSBO assistance: Once upon a time, FSBO (pronounced "fizz-bo") had a pretty strict definition: For Sale by Owner. The home seller did all the work (advertising, negotiating with buyers, managing the paper trail, etc.) and kept all the money. These days, however, all sorts of companies offer fee-based programs for FSBO sellers, which actually puts them in the a la carte category. Detractors suggest 9 times out of 10 FSBOs are not successful in selling their home.

If it sounds a bit confusing, just remember: Choice is a good thing, and more choices are even better. When you start talking to real estate agents, you’ll quickly discover that there are variations within each category and even multiple choices within individual companies. Explore the options, ask questions, and don’t be fooled by either empty boasts or insinuations about the other guys. Armed with the appropriate information, you’ll be well set to make the right choice.

Making Sense of the MLS

Typically operated by the local real estate board, the Multiple Listing Service® (MLS®) is a database that allows real estate agents to share information about property for sale. As originally configured, it was closed to the public with home buyers only seeing those listings their agents showed them.

Thanks to the Internet, though, that’s no longer the case, with the MLS available to anyone with an Internet connection through services such as mls.ca. That’s good news for sellers, who get great exposure whether their home is listed as part of a full-service, commission-based contract with an agent or via a flat-fee, MLS-listing-only arrangement.

Still, full disclosure, it’s not. For example, only licensed agents can see how commissions are split, which, it turns out, can have a major impact on your home’s marketability. Think about it: If your agent offers a split that buyers’ agents think is inequitable, they may not be so eager to show their clients your home. It’s something to consider when you’re ready to negotiate a sales contract.

And now the pitch:
Our company lists delightful homes on the MLS® system with a delightful fee arrangement.

* 2006 NAR report.

February 10, 2007 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

The Truth about Open Houses

Well, there are no truths, only opinions. And there are few real estate issues where opinions are more numerous and more nuanced than the open house. Some agents love them; some consider them a necessary evil or a service to keep clients happy, others outright despise them. Sellers might demand one or one every week or refuse to allow them at all. FSBOs seem to think they are the key to selling a house without an agent, and buyers generally love them.

You know .... they all have a point  »

January 29, 2007 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

The Price is Righteous

Setting an equitable yet compelling price is key to a successful sale. But its tough. Buyers are usually well informed about recent events in the marketplace. They select homes by comparison shopping and are keenly aware of subtle differences in features and value. In their eyes, your price must be justified in comparison to other available homes.

Obtaining the best return for your property requires competitive pricing from day-one. A home should be priced according to objective market data comparisons.

There are a number of factors that influence the value of your property:

Competitive Market Analysis (CMA)

Taking these factors into account, a real estate professional can prepare a competitive market analysis to reflect the current market value of your property. The analysis should include an examination of your property as well as a study of competitive properties currently on the market and those that have recently sold. This information helps you to price your property so that it is properly positioned in the marketplace.

No Realtor® can control market value. The selection of a listing agent should be based on their service, fees and reputation, not on their estimate of market value. It is the 'invisible hand' of the market that determines the sale price you will ultimately achieve.

Competitive Pricing vs. Overpricing

First impressions are lasting. A house realistically priced and properly presented from day-one offers the best opportunity for you to sell quickly and obtain the best price.

Qualified buyers and their agents have been looking in your area and waiting for a suitable house at an appropriate price to come on the market. If reasonably priced, it is possible your property will sell quickly to waiting buyers.

Competitively priced properties encourage reasonable offers, pleasant negotiations and a smooth closing.

Overpricing costs in terms of money, disappointment, and missed opportunities. If the price is too high, buyers may not even look at an otherwise attractive property.

An overpriced property can go stale after the important first few weeks when the home is new on the market and getting the most exposure. Then, when the price is adjusted at a later time, the house is often overlooked.

If you were able to arrange a sale for substantially more than comparable properties it may fail to close through difficulty securing an appraisal and mortgage financing.

The Paradox of Price: When the 'price is right' buyers get involved quickly and sellers gain a competitive advantage. Use the paradox of price to your benefit. If you have the will to set a compelling price, the reaction of the marketplace will benefit you.

January 16, 2007 in Selling Toronto Real Estate | Permalink | Comments (0) | TrackBack

Costly mistakes Seller's make

Selling your home can be an exhausting experience. Last minute walk throughs, inconvenient calls, price adjustment and the possibility of being stuck with two mortgages are real concerns. If you are not completely prepared you could end up losing hundreds, even thousands, of dollars in profit. The difference between a profitable smooth transaction and a break even, miserable experience is often a fine line. In the majority of cases it comes down to the subtle know how of your professional. By utilizing the knowledge of a well-trained real estate professional, you'll ensure the quick, profitable sale of your home.

Refusing to Make Profit Inducing Repairs

It always costs you more money to sell 'as is' than to make repairs that will increase the value of your home. Even minor improvements will often yield as much as three to five times the repair cost at the time of sale. Your agent will be able to point out what repairs will significantly increase the value of your home. Seemingly small fix up jobs can have quite an impact.

Provide Easy Access for Showings

Accessibility is a major key to profitability. Appointment-only showings are the most restrictive, while a lock box is the least. However there are certain considerations to take into account: your lifestyle, time frame for the desired sale and the relationship with the person representing your interests. The more accessible your home is, the better the odds of finding a person willing to pay your asking price. You never know if the one that couldn't get a viewing was the one that got away. By developing a trusting relationship with an investor, he or she will show the home with your best interests in mind.

Priced Too Low/Priced Too High

One critical reason to find an experienced professional real estate investment professional is to make sure the property is priced appropriately for a timely and profitable sale. If the property is priced too high it will sit and develop the identity of a problem property. If it's priced too low it could cost you considerable profits. The real estate market has subtle nuances and market changes that should be re-evaluated by your representaive every 10-14 days to help you maximize your return.

Relying Solely on Traditional Methods

The real estate professional who is innovative and willing to offer new strategies of attracting home buyers will always outperform those who rely on traditional methods. Demand around the clock advertising exposure, innovative lead generation methods and lead accountability. These services exist and should be offered on your home sale.

Market Timing/Seasonal Selling

Just as a broker who continually follows the trends of a stock, your real estate professional continually follows trends of your home market. They will know if the market cycle is poised to net you the most money. Property is always selling ... but there are seasonal advantages.

Refusing to Make Cosmetic Changes

The prospective home buyer's first impression is the most important. Sales are often lost to unkempt lawns, cluttered rooms, bad stains, unpleasant odors... all the seemingly little things. Imagine you were the home buyer and clean your place from top to bottom ...

Wasting Time With An Unqualified Prospect

Your representative's responsibility is to screen a prospect's qualifications before valuable time is lost. Be sure to align yourself with the right professional and eliminate negotiating with unqualified prospects.

Don't Test The Market

Never put your property on line to sell unless you are serious. The right professional will find you buyers and if you are harboring indecision... you will blow the sale.

Believing You are Powerless to Make a Difference

Be a part of the team! Take an active role with your real estate professional to see what you can do to facilitate your sale. Networking with professional peers and personal friends often results in the sale of a home. It's surprising how many homes are sold this way.

Believing All Realtors® are the Same

With all the intricate details and critical decisions to be made concerning your home sale, should you rely on anyone but an experienced real estate professional? Many friends and family members have been estranged as a result of failing to meet expectations. Your home sale is a time consuming, effort related, difficult task. Maximize your profit by utilizing a experienced real estate professional.

January 8, 2007 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

Locution, locution, locution

Real estate study reveals 'If you say it the wrong way, you can actually turn people right off.'

Nothing deters a house-hunter like the terms "must-see" or "motivated seller," suggests a new Canadian study on language and real estate. Paul Anglin, an economy professor at the University of Guelph, analyzed home sales in Windsor, Ontario, over a four-year period.

"There is a basic question about how house prices are determined," Anglin said. "I was building on earlier research that was looking into that question."

Anglin found that when realtors described houses as "beautiful" or "gorgeous" they sold 15 per cent faster and for as much as five per cent more than a comparable house. A house that was described as in "move-in condition" sold in 12 per cent less time, on average.

"I guess it makes sense that every house is beautiful to somebody," Anglin said. "I'm surprised that just attaching the label would make a difference."

Realtor Ian Shaw of Toronto said it's important to accentuate the positive aspects of a house but said the adjectives must be accurate. "If you say it the wrong way, you can actually turn people right off," he said. "I think language is quite important."

Anglin found that when houses used descriptors including "as is" or "must see" or promised a "motivated seller," the houses took longer to sell and often sold for less.

Homes described as “beautiful” moved 15 percent faster and for 5 percent more in price than the benchmark. “Good-value” homes sold for 5 percent less than average.

Another finding in Anglin’s study was that the plea of “must see!” was received about as enthusiastically as a dinner-time telemarketing call. Homes with listings using the words “must see” had a statistically insignificant effect on the number of days they took to sell.

Listings where the word “landscaping” was heralded sold 20 percent faster, and homes in “move-in condition” took 12 percent less time to sell than the benchmark, although the study showed “move-in condition” had an insignificant effect on the sales price.

Some words work better than others, Anglin’s study found. Listings in which the seller said he or she was “moving” sold for 1 percent less in price compared with 8 percent less when the seller was “motivated.”

Real estate listings, not unlike personal ads, are crafted to minimize blemishes and maximize perceived selling points. So if “enjoys moonlight walks on the beach and cooking together” means “I’m unemployed and am looking for someone who won’t always expect to eat out,” then “needs TLC” might mean “this house will have you on a first-name basis with the clerks at the local hardware store.”

Anglin’s study isn’t alone in efforts to determine what language moves the market. Last year, the effect of listing language was covered in a National Bureau of Economic Research study that looked at whether real estate agents selling their own homes hold out for a higher price. (They do; the study found they take longer to sell but fetch a higher price.)

Descriptions of houses that indicated an obvious problem – such as “foreclosure,” “as-is” and “handyman special” – drew substantially lower sales prices. Words that suggested desirable attributes – “granite,” “maple,” “gourmet” – translated into a higher sale price, the study found.

One problem discovered was that “superficially positive” words that, in effect, damn with faint praise – such as “clean” or “quiet” – had zero or even a negative correlation with prices.

Those findings echo those made in a 2000 paper called “Real Estate Agent Remarks: Help or Hype?” researched by University of Texas finance and real estate professor Ronald C. Rutherford.

Rutherford found, among other things, that buyers read between the lines. If you can’t find anything better to say than “new paint,” perhaps it’s best to say nothing at all.

Positive and factually verifiable comments such as “golf” or “lake” drew increased prices; other presumably positive comments regarding new paint or carpet brought lower ones.

“What you say needs to be extravagant,” Rutherford said, “or the signal that is received by buyers is that it’s not worth talking about.”

But what do sellers know? “New paint” appeared on 15 percent of the listings and was the most commonly listed comment.

Rutherford said sellers would be best served by a listing with “just the facts, ma’am.” “In today’s market,” he said, “if it’s a good deal, you need to convey it with factually verifiable language.” An example: “Needs repairs,” he said.

December 23, 2006 in Selling Toronto Real Estate | Permalink | Comments (2) | TrackBack

Realtor folds in MLS turf war

One of Canada's largest discount real estate brokers suspended operations yesterday, saying it could no longer operate in the face of proposed changes to how homes are listed for sale on the Multiple Listing Service.

Toronto-based Realtysellers Ltd. announced it was shutting down "pending resolution of the Multiple Listing Service issues." The company also vowed legal action to block MLS system changes that are under consideration by the Canadian Real Estate Association, or CREA.

The 86,000-member association owns the MLS trademark and individual real estate boards operate the system in their areas. The association is reviewing several proposals that would tighten the rules governing how brokers list homes on the service.

"CREA has been working to implement rules that would restrict Realtysellers' access to the MLS systems of local member boards," the company said in a statement.

Katherine Kay, a Toronto lawyer representing CREA, said the association is still consulting members about the proposed changes and added that nothing will be decided on the issue until a convention in March.

"In CREA's view, there is simply no basis for an allegation that anything CREA has done has had any impact on any member company, whether it's Realtysellers or anyone else," she said. "The MLS rules have been in place for several years and there have not been any changes to that that would have an impact on any member company."

The MLS system is more than 50 years old and it has become a key resource for real estate agents. On average, the MLS website receives 2.8 million unique visitors each month, according to CREA.

Since launching in December, 2000, Realtysellers has become a leading online real estate service, offering clients low commissions and an opportunity to list homes on the MLS for a $695 fee. It was co-founded by Stephen Moranis, a former CREA director and former president of the Toronto Real Estate Board.

But the company has also raised the ire of many full-service brokers who complain that Realtysellers and other discount firms are misusing the MLS system and damaging its effectiveness. They argue these agents provide few client services and flood the system with homes.

The issue came to a head earlier this year when CREA's board announced a series of changes that it said were designed to protect the MLS trademark. The proposals included requirements that agents inspect homes before listing them on the MLS and work with other agents throughout the sale process.

The proposals infuriated many discount brokers who argued the changes would curtail their business and force them to increase fees. The Competition Bureau also expressed concerns, saying the proposals could be anti-competitive.

Delegates to a CREA meeting were supposed to vote on the changes in September. But they opted to seek more input from members and address the issue at the CREA convention in March.

Realtysellers has fought similar changes before. In 2002, it launched a lawsuit against the Toronto Real Estate Board over proposed changes to the MLS system it operates. The suit, which also named CREA, ended in a settlement that permitted Realtysellers to continue listing properties.

"Despite this earlier settlement, CREA is again attempting to restrict access to MLS," the company said in its statement yesterday.

Mr. Moranis was not available for comment yesterday. But a source close to the company said it couldn't carry on given the uncertainty over the pending changes. "How do you operate in a landscape where your means of production have said that they can put you out of business at any time?" the source said. Late yesterday, the company's website was no longer accessible.

Ms. Kay, representing CREA, said the association has received legal advice that it needs to protect its trademark. "There have been no changes to the rule," she said, "and there will be no changes to the rules until the members meet in March, 2007."

November 30, 2006 in Selling Toronto Real Estate | Permalink | Comments (2) | TrackBack

Ten questions to ask ...

when hiring a REALTOR®

Home owners should interview a few potential REALTORS® before deciding on one to sell their home. Here are some questions to ask:

1- How long have you been in the business?

A freshly-licensed REALTOR® can do a wonderful job and will have up-to-date training; those in the business longer bring more practical experience to the table.

2 - What is your average list-to-sales-price ratio?

A competent listing REALTOR® should hold a track record for negotiating sales prices that are very close to list prices.

3 - How will your marketing plan meet my needs?

Specifically, how will you sell my home? Where and how often do you advertise? How do you market online?

4 - Will you provide references?

Ask if any of the references are related to the REALTOR®. Ask if you can call their references with additional questions.

5 - What separates you from your competition?

Key phrases to listen for: assertive, available by phone or e-mail, analytical, able to maintain a good sense of humour under trying circumstances.

6 - May I review documents that I will be asked to sign?

A good REALTOR® makes forms available to you before you are required to sign them. Ask to see agency disclosure, listing agreement, seller disclosure.

7 - How will you help me find other professionals?

vAsk for a written list of referring vendors. Get an explanation if you see the term “affiliated.” It could mean the REALTOR® is getting compensation from vendors. 

8 - How much do you charge?

You don’t have to ask if the fee is negotiable, since all real estate fees are negotiated.

9 - What kind of guarantee do you offer?

If you sign a listing agreement with the REALTOR® and later find that you are unhappy with the arrangement, will the REALTOR® let you cancel the agreement?

10 - What haven’t I asked you that I need to know?

Pay close attention to how the REALTOR® answers this question, because there is always something more you need to know.

More about buying or selling a home:

November 9, 2006 in Selling Toronto Real Estate | Permalink | Comments (0) | TrackBack

The Listing Agreement

Your home is probably the largest asset you will ever sell and you want to be sure you do it right. Selling your home is a complicated transaction involving many legal forms and procedures. Having a REALTOR on your side will ensure the sale of your home goes smoothly.

When you decide to sell your home with a REALTOR, one of the most important forms you will encounter is the Listing Agreement. The Listing Agreement is the contract between you and the real estate brokerage authorizing the brokerage, including its brokers and salespeople, to market your property.

The agreement serves many important functions including establishing the basis for the relationship between you and the brokerage and sets well-defined limits on the agent’s authority. Detailed information about your home is spelled out in the listing agreement which helps other REALTORS respond to questions from potential buyers about your property. Finally, the Listing Agreement forms the basis for any offers drafted on your home as well as any resulting negotiations involving the offer.

There are two types of listings – an “Exclusive” listing and a “Multiple” listing. An exclusive listing gives the brokerage the sole right to find a buyer for your home during a specific time period. You agree to pay a pre-established real estate commission to the broker once the sale is completed. The commission is payable to the broker regardless of whether someone else sells your home -- including yourself during the set period or even if your home sells at a future date to someone the broker introduced to the property.

A multiple listing is also an exclusive listing between you and the broker, but includes your authorization to allow the broker to market your home on the Multiple Listing Service (MLS) and have other REALTORS help to find a buyer. In this case, you pay the agreed upon commission and it is shared between the listing broker and the REALTOR who found the buyer.

Most often, a REALTOR will recommend that you list your home through the MLS so that you receive maximum exposure in the shortest time possible. Many REALTORS in Ontario use a standard listing agreement form such as the one published by the Ontario Real Estate Association. 

Because the Listing Agreement is so vital to the whole real estate transaction, REALTORS are well-trained to carefully include every last required detail. The agreement is divided into two sections – authority and property details.

As mentioned earlier, the authority section establishes the legal relationship between you and the real estate broker, sets a time limit for that relationship, and describes the obligations of each party.

The detail section provides information about the property being offered for sale and the ideal terms the seller would like to see in an offer. Your property will be completely identified by its full legal description, including street and house number, as well as to lot and plan number if the property is in a registered plan or subdivision.

Your property size and location, floor area, room sizes, style and number of rooms, zoning, building age and type of construction will all be spelled out on the Listing Agreement. 

The listing price is specified along with any other clauses regarding price or terms. There is a specific reference to the commission that will be paid upon a successful sale, trade or exchange of the property. The phrasing of the commission agreement makes it clear that the REALTOR has been hired to procure an offer acceptable to the seller. Once this is accomplished, the agent is entitled to claim commission.

Other details to be filled in on the Listing Agreement include mortgage information, how many days until closing after your home sells, and how your property will be shown. Your REALTOR will also discuss with you what items you are willing to sell along with the home. These items usually fall under one of two categories – fixtures or chattels. Fixtures are permanent improvements that normally stay with a property as part of the sale. Things like central air conditioning, built-in appliances and wall-to-wall carpeting are fixtures.

Chattels are usually movable pieces of personal property such as microwave ovens, blinds or washers and dryers. You may wish to include some of these “chattels” to sweeten the deal. These items will be clearly spelled out in the Listing Agreement.

The Listing Agreement is such an important part of your real estate transaction that you’ll want to be sure it is as comprehensive and accurate as possible. A REALTOR will work with you to fill in all the details and leave nothing to chance.

October 25, 2006 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

Help! Home for sale

Notes on the difficulties of selling real estate.

A

n article in CNNMoney.com is composed of emails from frustrated home sellers around the United States. Prices have stablized or reversed in many parts of the country and home sellers are now experiencing frustrations similar to buyers' frustrations of the not too distant past.

Home price increases have slowed nationwide and even reversed in many markets. Inventories are up and new home builders are cutting back. More and more sellers are having difficulty selling their properties.

Some are from homeowners who live in one-time red-hot markets who not too long ago watched their neighbors sell for huge gains. Sellers have reacted to the quickly changing market almost with disbelief.

We've profiled some of these sellers and that has produced a flood of reader emails from other troubled sellers.

See article:

October 19, 2006 in Selling Toronto Real Estate | Permalink | Comments (0) | TrackBack

Creating curb appeal

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hey say you can’t judge a book by its cover. But when it comes to houses, the exterior can be more important than the interior. When selling, it is the outside, or the home’s curb appeal that often determines whether the inside is ever seen. How a house 'shows’ from the street can tell a potential buyer a lot about what it may be like inside. Even if the inside is the sparkling, charming, structurally sound dream home they’ve been searching for, a buyer is not going to forget a cracked driveway, fallen shutters, overgrown grass and flower beds.

That’s why most REALTORS recommend a house not be seen for the first time at night. If you have no choice but to view homes at night, always be sure to drive past them during the daytime before making any final decisions.

For sellers, there are many ways to enhance the exterior of a home to achieve the curb appeal necessary to attract prospective buyers. Start by taking a close, objective look at your home from the curb. Be sure to view it from different angles. Ask friends and neighbors for their unbiased opinions. What are the appealing features? What’s not so appealing? What can you do to improve its appearance?

Are the shrubs untrimmed? Are there broken doors and windows, loose screens and railings? Does the exterior trim, or entire surface, need a paint job?

The interior may be clean, without a leaky faucet, cracked floor or loose door hinge in sight. But if the exterior roof, gutter, walls, driveway, garage and yard look dirty and untidy, chances are you’re not going to get a lot of potential buyers knocking at the door.

Creating curb appeal is making your home inviting from the outside -- where first impressions begin. This doesn’t mean spending a great deal of money remodeling and renovating. Adding a new front verandah might add a lot of curb appeal, but so will a couple of wicker chairs and potted flowers by the front door - at a lot less cost.

Here are some more tips for making the outside of your home attractive and inviting:

Clean up the yard

Mow the lawn, trim the hedges, weed the flower beds, get rid of dead trees and shrubs; get rid of any broken lawn furniture; shovel the walk and driveway in winter; rake the yard in the fall.

Repair any problems

If the roof is damaged, repair it. Also repair any doors and windows that have loose hinges or other damage; fix storm doors and window screens; caulk window exteriors; clean and repair sidings and other structural flaws.

Eliminate clutter

If you have yard and construction debris piled up along the side of the house, or elsewhere, get rid of it. The exterior of your home should be as uncluttered in appearance as the interior. This includes cleaning out the garage - a major breeder of clutter. Be ruthless. If you haven’t used something in a year, give it to charity or recycle it.

Give siding a fresh new look

Cleaning the exterior surface is all your home may need for a fresh new face. Before rushing to paint siding, try washing it. For painted wood siding and aluminum siding, use a solution of one cup strong detergent and one quart chlorine bleach in three gallons of water. Be sure to wear rubber gloves, goggles and other protective garments. Work from the bottom up and rinse thoroughly.

To spruce up vinyl siding, hose it down, sponge it with a mild liquid detergent and rinse.

Use paint to brighten, re-proportion exterior

A paint job can do wonders for the exterior of a home. A low house can look more graceful and tall from the curb by emphasizing its vertical features. Paint elements such as doors, shutters and corner trim in a color that contrasts with the siding material or color. On a high home, emphasize horizontal by using a contrasting paint color on window sills and fascia boards. You can also make a tall house look lower by painting it a dark color, provided that the roof is dark too. Conversely, a light color will make a home look larger.

Co-ordinate the exterior 'look’

The more co-ordinated your house looks from the outside, the more appealing it will be. Co-ordinate the 'look’ of your home by painting the garage, tool shed, playhouse and other outdoor structures with the same color schemes as the house. If your house is a mixture of conflicting textures - vertical siding, shingles and brick, for instance - try painting them all the same color, or in two related shades of the same color, to create a harmonious look. Dark tones work best when working with conflicting textures.

Use flower power

Well-placed flowers, trees and shrubs can really make the outside of a home look inviting. Not only does attractive landscaping invite buyers, it can increase the value of a home. Even without major landscaping, flowers can make a yard look colorful and pleasant. Plant them in garden beds, hang them from railings and porch ceilings, add flower boxes to window sills. There is no limit to the power of flowers.

At night, highlight garden features with spotlights and floodlights. Well-lit paths and entrances promote safety, discourage burglars and are an added feature to any home. A pretty wreath on the door and a welcome mat will finish things off.

October 16, 2006 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

List on the MLS for Less

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hy do Toronto area homeowners pay real estate agents 5% or 6% to list their homes on MLS?Because the system works! The Multiple Listing Service (MLS®) is the single most powerful marketing tool ever in place, to sell homes.

Most homes in Canada sell through the MLS® system. The power of MLS is based on co-operation and compensation. Most homes are not sold by the listing firms. In actuality, most sales involve two different offices, a listing office and a selling office.

This means that it is not so important which firm you choose to list your home with, as long as it is listed in the MLS® system.  See the listings on mls.ca

Can you pay less and still get MLS®?  Yes you can! Our Select Plan allows you enjoy the full power of MLS® for a listing fee of ½% of the selling price.

Here's how it works:

When you list with a traditional agent, they place your home on MLS system. The listing brokerage offers to share the commission - usually half what you're paying - with all of the other Realtors® participating in MLS system. This compensation is their incentive to sell your home.

We offer you the option of placing your home in the same Toronto MLS system at a much lower total commission.  Just like traditional brokerages, we share the commission with the co-operating MLS Realtors®, so they have the same incentive to sell your home as all the other homes on the MLS. In most cases, the cooperating agents earn the same selling commission (2.5%), they are accustomed to receiving and we absorb the "discounted" portion of the total commission.

How can we sell homes for lower commission? Volume. By charging a highly competitive, lower commission fee we attract more listings than most traditional agents. So can afford to make less on each sale when we sell more homes. And we wonder why more agents aren't willing do the same.

October 11, 2006 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

You are SERIOUS about selling?

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efore putting your home on the market think carefully about how motivated you are to sell. Think also about the true market value of your home rather than just what you may need (or want) to get from the sale. Some people will put their home on the market at a ridiculously high price without considering the true market value. Not because they e