So you’ve decided to sell your home or investment property and you’re looking at different options and their related expenses for your exit strategy. With closing costs, marketing the property and everything inbetween, the additional cost of hiring a professional realtor seems like an unnecessary expense. And, of course, you’ve likely had this question run through your mind: “How much is a realtor going to take out of my pocket?”

Not hiring a Realtor is one of the biggest mistakes people make when deciding to sell their property and often is a decision that COSTS money rather than saves it. If you have the right realtor on your side, the chance to attract buyers who are willing to pay more for your property is much higher than if you chose to sell/list the property yourself. You might be paying a commission to your realtor in the end but, what if that saves you an extra $10,000 overall? Seems like something for serious consideration.

Negotiation of the deal is inevitable in the process and most people think it goes like this: You say a number, the other party says a number and you come to a final agreement somewhere inbetween. Seems simple, right? A professional negotiator knows there is MUCH more to it than that and will ensure that maximum profit is made on your behalf.

If you’ve struggled with negotiations when you’ve bought or sold a car, you may want to reconsider negotiating the sale of a house by yourself. Multi-hundred thousand dollar deals aren’t for the faint of heart…if you struggled to sell your Honda, a professional might be the answer to sell your house. But if you feel comfortable going it alone then that decision is certainly yours to make.

Self-sellers must understand that when you list a property on the MLS, you are increasing the visibility of that property to more buyers. This is a good thing, but you must still remember that if those new buyers are currently working with a realtor (or a realtor sees your property and brings a buyer to you), you will still have to pay the buyers’ side of the sales commissions.

To get the most traffic to your listing (most demand), a great strategy is to state that you will pay the buyers’ commissions if a realtor brings a qualified buyer to you – this is an incentive that will make your property stand out among many others. While this may seem counter-intuitive, you will end up saving on the selling side of the deal which may be valuable to many self-sellers.

Marketing: Who is going to market the property if you decide to list it yourself? YOU ARE! This doesn’t mean sticking your property on the MLS and waiting for leads to pour in – this is an example of how NOT to sell a $300,000 asset. Get the word out and attract as many buyers as you can – this will take some elbow grease and hard work, but it is crucial to selling your property in a timely fashion at a price you are comfortable with.

You can enlist newspaper ads, online ads, physical flyers and posters and even host your own open house. Your ability as the chief marketer will make the difference between moving the property quickly or watching it go stale on the MLS – and nobody likes stale, whether we’re talking about bread or real estate.

LEGAL LESSON:

Having a lawyer on your team is critical in the buying and selling process, especially when it comes time to review documentation in advance of a final agreement (additional cost in many cases). One poorly-worded clause or misrepresentation by you in the advertising or declarations could be disastrous and lead to thousands of dollars in lawsuits and/or costs. Sadly, these mistakes are happening more frequently as buyers and sellers who aren’t aware of all legal requirements are writing deals at their own peril. A great way to get educated on the matter is to read and understand your local Real Estate Sale Contract. Make sure you understand every inch of that contract and be certain that the one you are reading/using is appropriate for your local and provincial laws.

The average price of a home in Calgary remained “generally flat” in the first quarter of 2012 due to a large supply, according to the Royal LePage House Price Survey. Average prices for detached bungalows increased 1.9 per cent year-over-year.

However, two-storey homes and standard condos saw decreases of 1.2 and 2.6 per cent as “demand was met with a sufficient amount of listings.”

In Canada, prices increased between 2.2 and 5 per cent in 2012 compared to 2011.

According to the report, standard two-storey homes rose 5.5 per cent year-over-year to $398,282. Detached bungalows increased 4.4 per cent to $356,306 and standard condos increased 2.2 per cent to an average of $243,153.

In Calgary, “Our housing market is being pulled in opposite directions by opposing economic forces,” said Phil Soper, President and Chief Executive of Royal LePage Real Estate Services, in a release. “On one hand, there is the rapidly strengthening U.S. economy, increasing Canadian consumer confidence and, what can only be called a national mortgage sale, encouraging activity and bidding up home prices. On the other, we have signs of over-shooting values and strained affordability in our largest cities. We are likely to see much more modest price appreciation as the year unfolds.”

SOURCE: CREB® real estate news

“First-time homebuyers are the engine that will drive the housing market in the next few years,” said Brian Hurley, Chairman and CEO of Genworth Canada in a release. “This survey helps us monitor Canadian’s attitudes on finances and home ownership so that we can continue to deliver the right tools and resources to educate homebuyers and promote responsible lending practices across the country.”*

*SOURCE: CREB® real estate news

Much of last month’s condo resales came from Zone C, which roughly corresponds to southwest Calgary. The zone outpaced the city in resale condo totals last month, with 269 units changing hands. At the same time, the zone led the city in average resale prices at $319,280.

Connaught had the most sales activity of all communities in Zone C with 35 units sold in February. Units in this community sold at an average price of $336,649.

The highest average resale price in Zone C last month came in Strathcona Park at $497,500.

Zone A, which roughly translate to northwest Calgary, saw the next highest condo resale activity with 100 units sold.

With only 32 transactions last month, Zone B, which roughly corresponds to the city’s northeast, had the lowest number of condo sales in the city. The zone also finished with the city’s lowest average resale price at $171,995.

Penbrooke’s average resale price of $105,500 was the lowest in the zone. One condo unit was sole in Penbrooke last month.

SOURCE: Josh Skapin, Calgary Herald

From mind-numbing acronyms and terminology that makes rookie investors feel like people are speaking in tongues, to advanced tactics that only make sense to high risk investors, Real Estate can be a minefield. Never mind all the information that only applies to the U.S. and doesn’t work in Canada! However, this is a minefield that can be easily traversed if you have the right information and a guiding hand to get you there.

If you are just getting started in Real Estate and want some friendly help to understand what everything from TDS to RPR stand for and how they affect you, you are in luck! Working in partnership with a seasoned investor friend of mine, Bill Biko, we are compiling a quick beginner’s guide that will answer many of the questions that arise for new investors.

Questions like…How do I determine what types of property to invest in? What areas should I consider? Whether variable rate or fixed rate is better for you? These questions will all be answered. We’re in the early stages of putting this together and are hoping to have this compiled for you in the next sixty days.

We’d love to hear your feedback – is this something that would be of interest to you? Do you have questions you want to send us immediately to ensure they get answered? Let us know by replying back to us via this email or visit us on our Facebook page and leave a comment!

Remember, I am here to help YOU. If you have questions about what is currently happening with the Calgary market, please contact me and let me help YOU! If you have friends or family thinking about buying in the near future, please make sure they get this update too!

Stef

Calgary is less affordable for new home buyers following the city’s levy rate increase that fully came into effect at the start of this year, says a Western Canadian developer.

The city and industry completed a five-year agreement that saw municipal levies boost lot prices by about $8,000 – double the previous rate.

“Everything has an effect,” says Jim Grandan, General Manager of Dundee Developments, an Alberta and Saskatchewan development firm. “It’s a substantial increase and it has to have an effect.”

The rate change was introduced in stages, with only half of the increase being charged for the first 400 hectares of development in 2011 – and the full price taking effect January 1, 2012.

This increase came following a 2009 city study that looked at costs related to growth, says Joel Armitage, City Manager of Urban Development and Building Approvals.

SOURCE: Josh Skapin, Calgary Herald