MORE DETAILS AT WWW.YANGURU.COM/132REGENT

Sold 103% of Asing Price. In Mill Pond Richmond Hill Heritage Estates

After selling her home in just 3 days, Anna decided to sit on her front porch and sip what may be her last ice tea at this old house.  As she settled into her Adirondack chair, she watched the Realtor selling the neighbor’s house across the street orchestrate stagers, cleaners and videographer. 

As Anna took her first sip, “seller’s remorse” started creeping in.  “My realtor didn’t fuss that much”, she thought, “and still we sold quickly. But what if my Realtor had done some of the neat stuff the neighbor’s agent is doing?  Could I have gotten more for my home?  Did I sell too quickly?”

Anna, don’t stress.  Even great preparation may not always yield the greatest results.  Each property and agent, as well as seller combination, has its own unique blend that results in a very specific outcome.

But since most of us would rather make sure no stone was left unturned when dealing with our high-priced asset, here are 7 things as a seller you must know about your listing agent, so you can inspire them to sell your property quickly, and at the highest price possible.

1.  Busy agent: A good agent should be busy, but they also cannot physically handle, at times, the steps you deserve … from preparing you property, to marketing and selling it.  Some Realtors have been known to cut their listing commission to attract more seller business.  But that has its pros and cons.  Realtors flock to larger paychecks, like bees to honey.  Want the busy agent to pay more attention to your listing than one of their others’?  An agent is likely to pay greater attention to your deal, if they are offered a full commission, where a higher selling price for your property can more significantly impact their paycheck.  They are also more likely to invest into marketing your property if their payoff is greater in the end.

2.  Hold your realtor to their word.  When signing a listing agreement, prepare a schedule of tasks that your realtor commits to and will be held accountable for at each stage, so that once the deal is done, you can feel confident that both of you have done all you planned, and thought was necessary to get you the best deal.

3.  Teams.  Is your agent working by themselves or as part of a team?  Remember that your Listing agreement is not with the agent, but their Real Estate office.  Will your agent be willing to tap into the great resources of personnel and advice of their brokerage, especially when your busy agent gets too busy?

4.  Online or Get off the deal:  It is no longer a myth, but a proven fact that a growing number of buyers and their agents find properties they want to buy online.  An even growing number of buyers research in greater depth a property they found on MLS via search engines or websites of the listing agents.  MLS is just one destination for most buyers.  But even that information is limited to a few sentences and 9 photographs.  Want to help potential buyers bond with your property and neighborhood?  Make sure your agent is willing to make it easier for them to find all they need to make their decision.  Today additional detailed photos, video and audio online tours and even live one-on-one video walk through are becoming more fashionable with travelling or out of town buyers. 

5.  Drive traffic:  Traffic is not only about Open Houses anymore.  It is not enough to put up a sign and an MLS listing and expect to find a buyer in this very competitive busy market.  To reach the highest price, you must “Chum the waters…” Let all the big buyer fish and their agents know that your property will be coming on the market imminently and offer some key morsels of information to build interest before the property hits the market.   Like a Hollywood Blockbuster, your property deserves a great trailer.  In fact, a photo or video presentation is one of the proven ways to attract the real buyer.  And finally, you must have a great opening weekend.  Like a Hollywood Hit, the first and second weekend must be huge, or the property stands the risk of ending up in discount theatres, great, but doing poorly on the bottom line.

6.  Negotiate.  If your agent is motivated to do the first 5 things in this list correctly, there is a much greater chance that you will have more than one interested party to buy your property in the right price range.  Already, the risk of you having “Seller’s Remorse”, is just a faint memory.   Other agents and neighbors are starting to take notes from your experience.  Motivate your agent to tread carefully not to chase the big fish away.  Make sure that price is not the only motivating factor, or risk turning away a great buyer over petty issues.

7.  Close well.  The ink isn’t dry yet, and your agent isn’t around anymore to make sure all the waivers have been promptly completed, that your moving plans go without a hitch and that there are no delays at the lawyer’s office.  Keep contact with your agent throughout this process and make sure to point out the milestones you both marked down in your schedules, post-conditions, so that this great full-fee you agreed to pay them, is well deserved. 

Anna, hope you had the best of experiences, even if your agent didn’t have to do all the things your neighbor is asking their agent to do.  But for your friends and family, who may someday go through the experience of selling their home, keep these 7 motivational factors handy. 

Read other Blog posts or Articles by Yan as seen in “Resale Home and Condo Guide” HERE!

Before other bidders got wind of the deal, Joseph made a bold offer to buy the property.  The Listing Agent preferred to wait until the home was ready to be shown to all prospective buyers, and that meant no “Back Room Deals”.

Frustrated, Joseph decided to take this time to analyze the present and future value of this gem.  His Realtor’s advice: “figure out what you are prepared to pay and to spend on renovations… and, when the seller is ready to take offers, pounce on the property before others bid up the price”.

Getting and then restoring Victorian Semis in Trinity Bellwoods to their past glory is as much luck, as it is an artform.

The subject property is a Semi-Detached Single family 100+ year old downtown dwelling in a very desirable upscale pocket of the city.  Realtor knows that the property will fetch well over 1.1 Million dollars, even in its current rough state.  By the time Joseph buys and renovates, he may be into it for $1.4 Million.  The Realtor pulled up comparables for the area, and that seemed in line with the market.  To make sure he wasn’t way off, Joseph called 3 of his friends in the renovation business.  He also called 2 real estate appraisers to get their opinion on value.

Speak to 4 appraisers about the value of any property and you will get 5 opinions.  Investment properties must be appraised as current and future value (post-renovation).  You should complete any renovation quickly, as any delay keeps your property off the re-sale market and makes your future valuations less certain.

Estimating value is as much art as it is math.  Investors must see the potential in a property and what its future cash flow may yield.  Rentals are attractive to some.  Single family “Flip” projects have a different buyer.  Make sure you know what buyer is best to target.  That will change from project, to location, to allowed uses, zoning, and market rents.

Joseph is considering converting the property into rental units.  Although currently owner-occupied, the rooms on the second and third floor had been rented before.  Joseph can consider finishing the basement, re-opening a separate back entrance for a tenant, and installing an additional bathroom on main floor.  The fire department must approve the retrofit.

Joseph must allow time for permits, and comply with zoning and city regulations.  If this home was in a forested area or park, other city departments may need to be consulted.  There was also the advantage of long private drive, and a double detached garage which adds greater value to a home where parking is at a premium.

Confusion set in, when Joseph considered the street’s demographics.  Wealthier families have moved back into this neighborhood.  The proximity to the park, local schools and new community centre suited younger families with kids.  A larger modern kitchen and additional bathrooms could attract a different kind of buyer with dreams of staying long-term in this neighborhood.

First things first, Joseph would have to get his finances, trades and plans in order, then beat out the other buyers.

For the curious mind, I will continue covering the preparation of this property particular real property for sale, then request that the actual buyer allows me to document their renovation progress and eventual re-sale.  See what happens next at www.214crawford.com starting November 30, 2012

Renovation or Infill Construction? Either way, Be Realistic about End Price, Stay on Budget, and make your Team out of Superstars.

A prominent Hollywood writer once described herself as the instigator of human condition.   She said her screenplays, when transformed into films, evoked a predetermined response from an audience in a movie theatre, on cue.

Building and renovating is very much like being a Hollywood writer.  A great home begins as a draft plan – similar to a movie script, and within months it is converted into a structure, which can induce similar and perhaps more potent emotions.

Unlike many Hollywood productions, however, a properly planned real estate project can assure you of at least some profit.

What steps can you take with renovation or infill construction projects to achieve both profit and a Hollywood ending?  Acquisition strategies, financing options, and potential sale price upon completion, along with your management skills will dictate you level of success.

THE PREMISE:  Compared to a renovation and flip, a tear-down is a longer project, involves several transactions, complex permit process, longer timeline to completion, and generally requires more experience.  WARNING: Though a new build could seem like a saga, a poorly planned modest reno can also turn into a nightmare trilogy.  You can learn a lot from a renovation, risking less, and still profit.

THE STAR PROPERTY:  The property you want is a wounded animal.  They give off signals to a trained eye.  Your Realtor can search on MLS for the following terms:  “As Is”, “Vacant”, Properties with more than 120 days on the market.  These could be an indication of an owner in trouble.

I also recommend properties with expired, terminated or suspended listings.  Check that each time they return to market, there is a large price reduction.  These are the Monsters that keep coming back.   Each resurrection brings more screams in the theatre. Find these properties by searching for listing that include: “Reduced Price”, “Power of Sale”, “Motivated Seller”.

Pay close attention to properties with more than one such category.

BUDGET:  Before you call “Action!”, know your financial snapshot.  Cash and lines of credit are a preferred, cheaper way to finance projects.  Mortgage Brokers specializing in construction financing should be part of your team, even if you think you can finance the project on your own.  Think safety net.

“STAY ON TARGET”:  I always work from a very detailed budget spreadsheet which I make available to my clients online.  Budgets are never arbitrary.  If you don’t know what something costs, get on the horn.  A budget goes hand in hand with your draft plans.

CAST AND CREW:  Start with an Architect and a Project manager/Contractor.  They will help make your project viable, get approvals from the city, and stick to your budget.  Some Architects can help with the permit process.  Others mostly work with experienced builders and only focus on plans.

NO “CLIFF HANGER”:  Sale price of your completed project should not come to you as a surprise.  Start with the “Best Educated Valuation” first, then get into acquisition, drafting and planning.

CAUTION:  Do not rely on currently listed prices of properties that seem similar to what you are planning.  A professional constantly reviews the most recent sales and adjusts the target Sale Price, if necessary.  Place little value on the highest sales.  Avoid being the most outrageous project on the street.

NEW BUILDS:  As in a renovation, working backwards from a well estimated sale price is the right approach to New Construction.  Lenders use that value to prevent overleveraging in your project.  Shouldn’t you?  For a proper Valuation, I direct my clients to a highly competent list of Appraisers that most construction financiers accept.

Take the appraised value, subtract the cost of Architecture, permits, city levies, construction, financing and mortgage broker fees, real estate fees, and 10% of budget for contingency, then see if you would be left with a sufficient profit to go ahead with the project.

Yan Gurevich.

NOTE: I LOVE INFILL CONSTRUCTION PROJECTS. I spent years financing and handholding builders through a variety of homes. For more details on how you should approach your project, please contact me.

This Article ran in Resale Home and Condo Guide — November 3-December 1 In parts of GTA Click RENO VS INFILL to read the edited version.

Fall of 2012 may be the cusp of “The Stall” if not “The Fall” of High-End condo market in Canada.

How will you sell your Sky High Retreat in this unforgiving Air War?

Developers, high flying marketing plans, buyer incentives, killer pricing strategies, well-pressed Real Estate Agents.  They won’t stop until all their many units have been sold.  They compete with each other, and you: the same client that bought from these people.  Welcome to survival of the financially fittest.

Mortal Combat?  Or an Extreme Sport?

Outspend them?  Not realistic.  But while they must focus on marketing an entire tower, you only need to sell one unit.  So on a per unit cost basis, you can probably outspend your competition.  Your team consists of a Great Realtor and his team, family and friends.  No one gets paid unless the property sells.  Your marketing and online costs are minimal compared to the big shots.  You operate like a mosquito, and nail just one buyer.  They need to pay a swarm of specialists, even before they start selling.

Out-web them!  Create unique and exclusive content that can be regularly updated, repositioned, continuously e-mailed out, and duplicated.  Make personal connections with your readers and humanize your property with unique benefits you discovered by living there.  Your friends and family have vested interest in your success. They help making your message viral.  Your competition does not have true advocates for their success, like you do.

Out- Like them – the love affair with some of the developers may have waned as they look to fire sale some of the units, upset the neighbors and you in the process.  Likeability and price can go hand in hand.  If your property is priced to market and you are a more personable, accessible, and willing to negotiate than the cold builder rep, you will have an edge.

Out-last them – you can use sales, pricing, and marketing strategies your competition may not. Take your property off the market, just to re-position it with a new price, new paint, new staging, new energy.  Time off the market can be a month, or a week.  Up to you.  But when you do come back on the market, don’t just change the price… (and if price does change, make it a dramatic one) … but make more adjustments all at once.  “Wow” the person who has seen your listing before.  Attract new prospects, who may not have seen this property yet.

“HOLD ON TIGHTLY/LET GO LIGHTLY”  Love your condo, but accept that it is a commodity.  Let go of the thing and of the emotion toward what was once a home.  Your willingness to part with it will not only encourage a buyer, but empower you to make a deal out of good business sense, and without ego or reservation.  Try thinking of what you may do in a month if your sale strategy does not work.  Knowing your potential next move alleviates anxiety and desperation.  It is a game.

Out-Incentivise them – offer better incentives to buyers – higher end finishes, furniture, appliances, electronics, window shades.  You may need to include some aspect of the property you were thinking of taking with you, just to make the price worth paying.  Offer to pick up and drop off potential qualified investors at their home, or airport.

Out-Qualify your Buyer – Make sure that the person considering your high end property is actually a strong potential candidate for buying your property.  There is an art to it.

I believe that Selling High End Condos is an extreme sport.  Try a few things you have not done before, and surprise yourself.

The remarks were as follows:

Location!!Location!! Very Solid Brick Home (I sure hope so) In Heart Of Richmond Hill, Walking Distance To All Amenities, Shopping Centers, Viva Bus And Transportation, Richmond Hill Theater (There are a number of Theatres in the area. I assume they mean RH Theatre for the Performing arts.) And Movies, Mill Pond, Demanding Schools In The Area (What is their problem?). Completely Top To Bottom Renovated (Is this Yoda writing? Does Completely not imply Top to Bottom? or vice versa?), Kitchen(2012), Hardwood(2012), Windows(2012), And More. Over 100K Spent On Renovation. Spiral Oak Stairs, Separate Entrance To 2Bedroom Basement Apartment With Ensuite Laundry (Legal? In Richmond Hill?). Separate Storage In Bsm

Am I being mean?

In fairness, this agent is cracking the market in my area – which I am applauding them for.  I have yet to start my own blitzkrieg.

In retrospect, I am less than appreciative of the last listing by this group that had a house listed over 150K over market for months (on a home that is worth less than a million, that is quite a leap), only to eventually sell it at market, something that my not yet teenaged son could have told them.

TTFN

Our friend at AC electrical posted this information on their site regarding Knob and Tube wiring.
“http://www.acelectrical.ca/service_description.php?serviceid=23”

From a mortgage financing perspective, when buying a home still wired with Knob and Tube, you have some major obstacles to overcome:
1. Will the Mortgage Insurer accept this property?
2. Will the lender request an inspection at your cost and require a hold back from the money they agree to advance equal to the amount required to pay for the retrofit of the wiring?
3. Will the house pass inspection?
4. Will you be able to get fire insurance on this property to comply with Mortgagee’s conditions?

Here are the “Knobs and Tubes” from the AC Electrical Blog about Knob and Rube wiring:

What is Knob and Tube?

Knob and tube wiring was the first standardized wiring method used in homes or buildings and was typically installed between 1880 and the 1940’s. Insulated copper wiring was run within walls or ceilings through support studs/joists and protected with porcelain tubes. The copper wire was passed through nailed down porcelain knobs and protected with cloth insulation (until rubber wire insulation came into use), and bent to enter electrical devices (light fixtures, electrical outlets etc.) where necessary.

Problems with knob and tube:

- old and outdated

- no ground protection

Knob and tube wiring was never installed with a grounding conductor which is legally required for electrical wiring installed by today’s standards. This means if your home has knob and tube wiring, and you have three pronged electrical plugs, the ground prong (most commonly with knob and tube) is unused and the outlet creates an incomplete circuit. In the event of an electrical ground fault there is no voltage path to ground, and the electrical current remains on the appliance itself.

In reference to a common household washing machine with no path for the electricity to ground, if the machine is improperly wired internally and the wiring touches the machine’s metal casing, the metal casing becomes energized with no voltage escape. Thereafter the member of your family to come in direct contact with the machine next is susceptible to a potentially fatal 120 volt shock.
- limited load capability
Homes with knob and tube may not have the electrical capacity to meet today’s needs, fuses consistently blow and wires can overheat from high current levels exceeding what the old and dated wires were planned to handle when they were installed. Power overload in old knob and tube wires can cause them to heat and potentially melt in electrical fire.

Insulation problems / renovation

Over sixty years ago the electrical wiring installed was less resistant to damage and less endurable than wire used today. Deterioration, abuse, rodents or renovations can render knob and tube unsafe over time. Due to the wire’s age, its rubber insulation becomes dried and brittle and when handled cracks posing serious risk of electrocution.

Covering knob and tube wiring with insulation is unsafe and illegal, as the wiring was designed to allow heat dissipation into its surrounding area, insulation surrounding any knob and tube wiring prevents exactly that. Where old wires were placed in un-insulated walls, energy inefficiency levels from heat loss and cold entering your home can become a significant problem. Upgrading from knob and tube will allow you to conserve substantial amount of energy, the positive results of which will be realized directly on your electrical bill.

Fragile wires

Old and fragile wires are commonly damaged by rodents or carelessness (ex: hanging objects off wiring running in accessible areas like basements) which results in potential fire hazard.

Insurance Problems

Old and unsafe knob and tube may become a problem if you’re thinking of renovating or selling your home.

For renovations:

Knob and tube is not legally permitted to remain in place if any additional outlets or lighting/receptacles are added or will be added to a home. This puts strain on, and can overload old circuitry, causing wires to overheat, melt and cause fires. However the average increase to Canadian home value directly accredited to upgrading from knob and tube ranges from $10 000 to $20 000 before any benefits from your other planned renovation can take effect.

Insurance underwriters aware of the risks of knob and tube wiring increasingly cancel or refuse home insurance policies or to authorize home renovations until old wiring is replaced. After upgrading from knob and tube however, the increase on average to Canadian home values ranges from at least $10 000 to above $20 000, before the benefits from future renovations to your home can be realized.

Here’s an example:

I am watching a Dog Food commercial, and the Ad tells me that the food contains Chicken as its first ingredient. It also says that is contains a supplement that is supposed to make your dog’s eyesight better.

Now, is that the best information for the human? For the dog? Or for the Label to sell? What about the other 4 first ingredients that make up the bulk of the total ingredients in a lengthy list?

Is this formula really satisfying to you because it is priced right or for your dog? Am I supposed to get excited over any of this?

I can tell now that the other 4 top ingredients, would not make my personal diet list. Certainly my dog or a farm animal couldn’t get excited over them either. I would also say that the fillers of this food are by all accounts unhealthy, full of products that fill the dog’s belly, but offer no value. Is that good for anyone?

Ok, I know, this is a long stretch to compare dog food to mortgages. But does the bank or the broker know what is truly important to the consumer? Is Rate the only ingredient? THE RATE? Are all other aspects of your mortgage just fillers?

Timely service, varied levels of advice and product offerings, actual mortgage options the consumer will ever have a chance to take advantage of, personal attention – day, night and weekend – commitment to searching for all options prior to offering the right ones. Now, if that is not an attractive list of ingredients for you…?

I know for a fact that I do not want to deal with a consumer who will never be my client. You know who that is? The one who doesn’t even want to know my name when they call. Who doesn’t care if they even reached the right company. The one who doesn;t even say hello. It happens all the time. The first words out of their mouth when they call is: “What is your rate?”

RATE FOR WHAT???? What should my answer be? “Well, since you don’t even say “High”, or want to know my name, Yeah, I got your rate, but it tastes like Sh..t!?” Maybe I should ask him to read this blog first?

There is a dog food on the market that comes from Alberta. When you read the first four ingredients on the list, it reads as follows:

Fresh deboned wild boar*, fresh deboned lamb*, fresh beef liver*, fresh deboned pork*.

For real? Anyone getting hungry?

When was the last time a Mortgage got you this excited?

For the client who doesn’t know the difference between dog food and mortgages: our current Mortgage rates As of April 22, 2012 are as follows:

Closed Mortgage:
3-year 3.19
5-year 3.19 Could be less as we may have a rate special from one of our lenders.
2.85% Variable 5-year rate
Our 5 in 1 product: first year at 1.79

Now, if this rate summary makes you hungry or excited, you really should expect more from your mortgage broker. You may also want to rethink what you feed your pets.

However, if you want me to tell you the name of the dog food I had described earlier, then you’re also the right mortgage client for me.

Your mortgage shopping spree should leave you almost as happy as my dog feels when I feed Her that premium brand.

Great things about mortgages is that premium brands in mortgages don’t necessarily mean they are more expensive. Unlike Dog Food, you should Just Expect More.

Still with me? Then I have a cat food story that will have you in stitches…