Get the Good Moves

There is a strong bond between a home and its owners and it is sometime very difficult for someone selling to see any of the changes or decor choice as anything less than fantastic. In fact they sometimes are baffled by the fact that others don’t see it exactly the same way. Often the house is associated with memories and letting go can be not so easy. The first step is to stop seeing your house as your home and to start to think of it as simply a product on the market.

Start with the front of the house-­‐ “curb appeal.” It is the first impression that people get when they arrive at the house. Ensure that the house is well painted, gardens look manicured and lawns are cut and neat. It is a smart idea to paint the front door a stronger colour (red, yellow, orange, black, blue) as it helps people remember your house in the myriad of houses they will have seen. It is also nice to have urns that clarify the walk way and the front door. I think it is best to have flowers that are in bloom in the urns and gardens as they instantly give people a positive feeling about the house. Remember that houses are usually bought and sold on emotion. It is a big purchase for most people and they want to feel happy about the choice, like it is the beginning of a new life!

Inside the house the first step is to make sure that everything is incredibly clean and in good repair. You want the house to seem very well cared for. Clean all of the windows inside and out as light is important to most buyers. Make sure that you have vacuumed and dusted every day as they house is being shown and that you remove all the tell tale signs of your life. No notes on the fridge, no kid’s dental appointments and sports schedules, no pile of mail or that cup filled with pens on the counter. Also remove any collection of family photos that adorn table tops or are taped to cupboards. Buyers want to feel as though they are seeing their new home, not intruding on yours. Make the space neutral. Next clean out the closets and the drawers in the kitchen. People will want to see how much space is available for them to store their things so drawers filled with junk or over flowing closets leave the impression that the house lacks decent storage. Clean and organized closets are everyone’s fantasy home, so give them that impression! Now make sure that everything in the house is in good repair. If they lock on the front door doesn’t work well or the door sticks, repair it. If there are holes in a wall from a kids wrestling session, repair it. Make sure that every light bulb that is burnt out is replaced as people don’t know the difference between bad bulbs and bad electrical work. If the paint in the house needs to be touched up or if the interior needs to be repainted, then do it. Use neutral colours like off whites, grays and beiges to make sure that you won’t offend the taste of any potential buyer. It can seem like a big expense however it is worth the effort and the return on investment is great. The paint on the walls is far more valuable to the sale than it is in the can.

Next, any piece of furniture that has fallen into disrepair has to be either repaired, recovered or replaced. We are trying to create the “model” home experience so even if you have to borrow or rent a sofa for the time of the sale, we want to make sure the shopping experience is perfect for the buyer. Next make sure that you use every room as it is intended. Bedrooms, used as a storage room give the impression that the house is one bedroom short of what the listing says. In fact make sure that every space in the house is used for some purpose. If you don’t know what to do with a space the buyer will also be confused about how to use it. If you are truly confused, hire someone to figure it out for you.

Now find places in the house for fresh cut flowers. I think it is best to use more exotic flowers where possible as they attract attention and give the house a ‘special’ feel. Not only can they smell great but they also bring a natural element into the house and the beauty of flowers makes an impression on everyone regardless of who you are. Find ways of making the house smell pleasant. When you are selling is not the time to try out that new baked fish recipe you have been thinking about. Sometimes a combination of cloves and orange peels in a pan of water and boiled slowly on the stove can give the house the smell of fresh baking or essentially a sense of ‘home’. I also think it is smart to have soft music playing while people are viewing your space. Easy jazz or classical music gives the impression of value and class to the house. Never forget that it is an emotional experience for the buyer so creating a positive experience for sight sound and smell can only serve you well as the seller.

Selling your house is unsettling and is a bit of an interruption to your own life, not to mention a major change for you. If you prepare the house well before you hit the market, will get you the best possible price and it will only interrupt for a short time while you are having showings. Then you can go back to living and planning your own move.

Good luck with it all!!

Article courtesy of Glen Peloso of Glen Peloso Interiors
http://www.glenpelosointeriors.com
Twitter: @Peloso1

YOUR TIME TO JUMP INTO THE MARKET

by Paul Golini Jr.

I read an article on the weekend that was written by a lawyer, who has worked in the real estate industry for 28 years, and in his first line he said he believes there has never been a better time to buy a home.

That sure got my attention.

And I agreed with all of his points: low mortgage rates have opened the door for many first-time and single homebuyers to take the plunge; in Canada, the banks have our backs, not lending homeowners more than they can handle; and evidently, the GTA condo boom has provided an affordable choice for homeownership.

This really is a great time to buy, and it’s a great time to buy a new home, whether it’s a condominium suite, a townhome or a single-detached house.

In addition to the above reasons, a new home also comes with the ability to personalize and choose the features in your space.

My favourite is the natural light and comfort you get thanks to larger energy efficient windows, but with the design and construction of new homes today, you’re bound to reap the benefits of a number of energy efficient features.

A new home also comes with consumer protection packaged in a comprehensive mandatory new home warranty, which covers everything from your deposit to delayed closings to workmanship and major structural defects. To find out more visit tarion.com

Advocating for future home buyers is a huge part of what we do at BILD. We are not only the voice of the building and land development industry, but of our consumers as well.

We have been at the table as changes to the Ontario Building Code, with respect to energy efficiency, were being hammered out, and we are at many different tables discussing affordable housing with our municipal and provincial partners, as well as with sister agencies and association.

We want you to have confidence in our industry whenever you’re ready to jump into the market.

• Paul Golini Jr. is Chair of the Building Industry and Land Development Association (BILD) and can be found on Twitter (twitter.com/bildgta), Facebook (facebook.com/bildgta), Youtube (youtube.com/bildgta) and BILD’s  online blog (bildblogs.ca).

REMAX 2000 ANNUAL GENERAL MEETING – MONDAY FEBRUARY 13th, 2012

RE/MAX 2000 Toronto proudly presents its Annual General Meeting on Monday February 13th, 2012

at Montecassino Hotel and Venue

3710 Chesswood Drive, Toronto Ontario

9:30am-1:00pm

Guest Speaker includes Mark Weisleder as well as, presentations on Re/Max tools and digital marketing updates.

Please RSVP with Diana by January 23rd, 2012 at diana@remax2000.ca

**For RE/MAX 2000 Toronto Agents and Staff Only!

RE/MAX: Fit To Sell – Flooring

Will an open house help sell your home?

I am often asked whether a seller should agree to open houses when they put their home up for sale. Some say it helps the agent find new clients and does nothing to sell the home. Others say it is necessary to find the largest number of potential buyers. Which is correct?

In practice, there are two kinds of open houses. One is limited to real estate agents, so they can conduct research in the area and be able to recommend the right homes to their buyer clients. The second is open to the general public. This can include nosy neighbours who just want to see your home, buyers who don’t have nearly enough money to consider putting in an offer and even criminals who are there to either steal something from the home during the open house or check out the security system so they can come back later.

Open houses will lead to more exposure for your home and more feedback from potential buyers. On the other hand, since we have so much information available to buyers on the Internet, such as video tours of the entire home, wouldn’t it make more sense to wait for a truly interested buyer to schedule a private appointment to see your home? That shows more commitment.

Still, in a seller’s market, where there are more buyers than available properties, open houses are a good idea so the maximum number of buyers can see the property in a very short time period.

If you do agree to conduct an open house, here are some tips:

• Make sure proper home staging is done in advance so your home appeals to the maximum number of potential buyers.

Shutterstock

• Do not stay in the house during the open house. You are more than likely to volunteer too much information, including why you are selling. This will hurt your negotiating position later.

• Make sure your agent will be there the entire time.

• It is not against the law to ask for identification in order to allow someone to enter your home. If they refuse to provide it, tell your agent to refuse them entry.

• Sometimes criminals will come in pairs; while one distracts the salesperson, the other is going through drawers. If a lot of people are expected make sure your agent brings an assistant.

• Ask your agent to check all windows and doors before they leave your home to make sure everything is properly secured.

• Remove all valuables or store them in a safe, if you have one in the home. This includes your laptop and any discs that may have your personal information on them.

• Keep all of your bank and credit card statements out of view, as this could lead to identity theft if someone takes them.

• Take pictures of each room so you can check later if something is missing or damaged during the open house. Whatever you decide regarding an open house, make sure you are properly prepared in advance.

Author  Mark Weisleder is a lawyer, author and speaker to the real estate industry. Email him at mark@markweisleder.com

5 TOP REASONS TO HIRE A SELLING AGENT

20 Things to look for in a home inspection

I continue to receive complaints from readers about problems that they discover after closing their home purchase. Most complain about sellers who fail to disclose defects or home inspectors who fail to find them. The system is far from perfect. However, there are steps that buyers can take before and during a home inspection to protect their interests.

• Check all electrical outlets to make sure that they work.
• Open windows, even in the winter, to make sure they are not stuck or painted shut.
• Look under any area rug or bed and behind any picture to check for cracked tiles, stained carpets or walls. Lift anything on the kitchen counters to look for defects.
• Do any of the appliances show any rust? How old are they? If they are discontinued models, you will likely have to replace them if they break down because of the difficulty of finding replacement parts.
• Start the dishwasher at the beginning of any home inspection. By the end, it should have gone through its entire cycle, without leaking.
• Put a thermometer inside the oven and turn it on to 350 degrees. After 10 minutes, check the temperature. Test stove burners.
• Put a cup of water in the microwave for 45 seconds. Does it heat up? Flush every toilet and see whether it stops running after it is filled.
• Check sinks, tubs and showers in the house. Is there proper water flow from each faucet and does everything drain properly?

You may want to consider turning all the faucets on at the same time and then flushing a toilet upstairs to see whether the water pressure slows or stops in any sink. This could indicate a problem with the system.

In older homes, consider a separate sewage inspection. Stan Collini, the President of Roto-Rooter Plumbing and Drain Service in the GTA, tells me that for $295, you can do a video camera of a property’s sewer system to see if there are any problems that would not be visible on a typical home inspection.

Check under the water heater for leaks or stains on the floor. Ask how old the air conditioning unit is and when was it last serviced Is there sufficient hot or cold air reaching all of the rooms in the house? Does the owner have a plan with their gas company to inspect the furnace once a year? When was the last inspection conducted? If the house has an addition, ask whether any upgrade was done to the heating or cooling systems to account for the additional living area. Look for water stains in the ceiling which could indicate leaking from the roof or other problems with the plumbing system.

When your inspector is on the roof, ask them to check for broken or cracked shingles. If it is a flat roof, look for the low spots where water can collect for any evidence of a problem. Check the eaves to see if there is any rot or decay. If any concerns are noted, consider bringing in a roofing contractor for an additional opinion, especially if the home is 15-20 years old and it is still the original roof.

You may also want to consider a separate inspection for mould or termites, as these may not be visible on a home inspection but can result in significant costs to repair later. Check if this is a known problem in the area.

Always ask the seller and the seller’s agent if they know about any hidden defects that are not visible. They must answer truthfully if you ask them.

Consider looking into after-sale warranty protection. Many of these products on the market will generally cover problems with a home electrical, plumbing, heating and cooling system, as well as the major appliances. But like any warranty, ask about deductibles and what is excluded from coverage.

By being properly prepared and asking the right questions both before and during any home inspection, you will be better protected against costly surprises after closing.

Mark Weisleder  is a lawyer, author and speaker to the real estate industry.

THE CRITICAL ROLE OF AN AGENT

What does “upgraded wiring” really mean?

The subject of home inspections continues to matter to buyers and sellers.

John says that he would never listen to a home inspector recommendation by a real estate agent because they only refer inspectors who will likely approve the house.

My answer is that real estate agents will normally recommend three professionals. You should take the time to check references for any inspection company before deciding to hire them.

Jim, a seller, complains that buyers use the home inspection condition to come back and try to renegotiate the price. Paul, another seller, asks whether they should do their own home inspection before putting their house up for sale.

Because many sellers refuse to sign disclosure statements about the condition of their properties, there is a concern by buyers that the sellers may be hiding something. As a result, some sellers are having their home inspected before they offer it for sale. By having a home inspection done in advance by a reputable company and handing a summary to an interested buyer, you can give the buyer more peace of mind. The seller can also fix the problems noted on the inspection and show the buyer what was done. This should prevent buyers from coming back to try and re-negotiate the price after doing their own inspection.

I have also noticed many ads out there describing properties for sale, with words like “New Roof, Upgraded Plumbing, Updated Wiring or “Totally Renovated.”

Buyers need to ask for proof as to what the seller means by any of these claims. New shingles on a roof is not the same as replacing the entire roof. Does upgraded plumbing refer only to some new bathroom fixtures, or does it include all new pipes throughout the house? Does upgraded wiring mean that you have installed modern light dimmers or does it mean that the old knob and tube wiring has been torn out and replaced. Total renovation can mean many different things. It is important that buyers ask sellers to produce proof, by way of contracts or invoices, to demonstrate exactly when and what work was done. Are there any warranties that were given with the work? Are these warranties transferrable to the new buyer?

By obtaining copies of any work that was done and providing this to your home inspector in advance, a more thorough inspection can be done to make sure that the work was done as advertised. The home inspector will have a better idea on what to focus on.

Bill, a buyer asks how he can protect himself about termites or mould in a house?

Sellers have an obligation to tell a buyer about serious hidden problems that an inspector may not see, such as foundation problems, roof or basement leaks, mould or termites.

While a home inspection company may be able to look for visible structural component evidence of termites, buyers will probably require a pest control specialist to inspect to see if there are any problems. Buyers need to check whether the area in general is known for termites before deciding if anything further is necessary.

Sellers, remember that more disclosure means more peace of mind. Buyers, asking the right questions in advance will make choosing a home inspector and conducting a thorough inspection easier.

By – Mark Weisleder is a lawyer, author and speaker to the real estate industry.

7 tips for successful real estate investing

Many people think being a landlord and investing in real estate is a way to make easy money. It can be financially rewarding if you do your homework and reduce your risks. But easy, it isn’t and it can lead to financial ruin if not done properly.

Moneyville columnist Alison Griffiths wrote about her adventure as a landlord

earlier this year. It’s a humorous look at what can go wrong and the lessons learned, but anybody thinking about an investment property might want to read: Why did I think being a landlord was easy money?

The trick is to end up with money in your pocket at the end of the month after paying your bills and collecting the rent as you slowly pay down the mortgage

and end up with a nest egg. Here are some tips:

• Research the area where you’d like to buy. Is it in decline or on the way up? A good indication is if chains like Wal-Mart, Tim Hortons and Home Depot are moving in. These companies do a lot of work on demographics and income before deciding where to locate. You can get a big picture look at vacancy rates at settlement.org, a federally funded site that helps immigrants with information and resources to settle in Canada.

• Use a real estate agent who also is an area investor. Ask them to show you their properties and the rents. Ask for the names of other investors they have helped. Call them. Make sure they have a team of professionals you can use, such as property managers, insurance advisers, mortgage brokers, home inspectors, accountants and lawyers.

• Once you own more than four rental units, find a reliable property manager. You don’t want to take a call in the middle of the night. A rule of thumb is that you should allocate up to 10 per cent of monthly rent to a property manager. They will make sure your building is properly maintained and can help find tenants.

• Do not be in a hurry to rent a vacant unit. Take your time to qualify any potential tenant, since it can take months to evict a problem tenant. Call all tenant references, ask for a current pay stub and speak to at least two prior landlords. Where possible, require the tenant to pay for utilities. The tenant will have to apply to the utility company for an account, which amounts to an extra credit check being done by the utility company.

• Be careful with basement apartments and homes rented to students. Although these units can provide additional income, you must make sure that they are legal, comply with the fire code and have any required licenses to operate.

• Buy and hold your property for the long term. This way, you have an income and slowly start to pay down your mortgage.

• If you are investing with others, have a partnership agreement. Problems may occur later if the friendship breaks down, especially if one partner loses their job and cannot pay their share of expenses, or if one partner wants to sell while the other does not. With a partnership agreement, you can provide what will happen in these situations in advance, without having to pay costly legal fees to figure it out later.

Investing in real estate is not easy. But by taking the proper precautions, it can be very rewarding.

 

Mark Weisleder  is a lawyer, author and speaker to the real estate industry.