Posts Tagged ‘mortgage’

R.E.S.T. Series – Early Birds, Worms and Real Estate

Hey Everyone and welcome to our series where we talk about the career that we love… real estate.

What does R.E.S.T. stand for? real estate straight talk – where we give you the heads up, the real deal, real scenarios, myths and myth busting, the rules, the ethics, the process, the expectations – what you really need to know. Let’s dive in to today’s episode.

WHEN SHOULD YOU FIRST GET IN TOUCH?

We’ve run into more than a few occasions when clients will call us and say “Hey! We’re ready to list our house – can you have it on the market tomorrow/ in a couple of days?”

We could certainly make it happen, and we have, but there are a few KEY points we want to make about when to actually get in touch with a REALTOR® in order to put your home on the market – it’s often the difference between more money in your pocket and a faster sale! – Yep, you heard it right….getting in touch last minute can affect your bottom line.

RENOVATIONS

Before you even THINK about picking up that hammer…or calling a contractor that will…give your REALTOR® a call. Ultimately you are going to do what you want, but there are renovations that will bring you a return on the investment, and some that won’t. The basic rule of thumb for a renovation is that you “should” get a 40-50% return on the initial investment. Things like kitchens, bathrooms, flooring and lighting often get the highest return, followed by landscaping and additions. But the maximum return is often only offered when the renovation is functional appealing, and timeless.

We can’t tell you how many times we have been in trendy kitchens that one year got a 70% return on investment and only 20% the next because it was now out of style. Having been in thousands of homes, and seen thousands of renovations – a good REALTOR® can at least give you suggestions on the resale/investment value of what you are thinking.

Because you did hefty renovations may lead you to believe that you can get all your money back – so getting in touch with your REALTOR® before your reno, and well before you sell will help you understand the roll and price value your renovations will have on the market in your city…you don’t want your REALTOR® surprising you WHEN you are ready to go on the market – and we don’t like giving you that surprise!!

IMPROVEMENTS

Improvements to your home is kind of a sub-category to renovations. It can include flooring, light fixtures, a new roof, new windows, added insulation in the attic. Improvements follow the same rule as renovations, but with a slightly lower ROI. What is critical to know here is that Buyers won’t necessarily pay a higher dollar for a new roof, or improved attic insulation – it is just an improvement that makes them feel more solid in their purchase, knowing you as the owner has taken care of the home. Improvements usually have more weight in the time it will take to sell your home. Confident buyers tend to move more quickly on homes they feel have been well taken care of.

The other side to improvements is this – the nanosecond you are thinking of selling your home – get in touch with your chosen REALTOR® so you can have a discussion on improvements you have already made, or improvements that you SHOULD make in order to get top dollar for your home. Sometimes something as simple as a fresh coat of paint that would cost you your time and a few cans of paint ($500) can get you an extra $5,000!!

A professional REALTOR® will be honest and forthright with their list of items that would be best to tackle before going on the market – and will outline the cost differential of doing it or not doing it when you sell.

STAGING

Calling a professional REALTOR® early has other added bonuses. We know how a house should look for showings. We normally meet with you 3 or 4 times before we even decide on a time for the sale. We help you prepare lists of things to do, what to put away, what to keep out, paint colours, furniture placement etc. All this prep work usually makes for a much faster sale, closer to asking price as we help you keep the Buyers focus on the house and not the items in it.

YOUR PRIORITIES

Another reason to be an early bird with your REALTOR® – you have reasons for moving. Whether it is time to move to a bigger house, a smaller house, out of town, downsizing you will have priorities about your sale – when you want your closing or possession date to be, how long you are hoping to be on the market, what times you prefer your showings – the more you communicate your needs to your REALTOR® the less stressful the process becomes. If you call last minute, you and your REALTOR® may miss something critical to you – it helps your REALTOR® guide you, understand your needs and ultimately helps them negotiate much better on your behalf. The REALTOR® you pick should also be asking these questions no matter WHEN they meet you, if they aren’t concerned about your priorities, that’s a big ole red flag!! That worm is likely rotten 😉

TIMING – SEASONS

Being an early bird in your communication with your REALTOR® will also help in picking the best time to put your home on the market. Every town, city and province is different in their busy/slow seasons, so the more time you have to plan for “BEST” timing, the better!

MARKET CONDITIONS

Our last point is that early communication will allow you and your REALTOR® to examine market conditions, both current and past – likely over the course of the last 6 months to a year. This strategy session gets you up to speed on what the market is doing. Is it a Seller’s market where properties are selling quickly and for more money? Is it a Buyer’s market where prices are lower and properties take longer to sell? Knowledge is power – but it takes some time to absorb it – so the earlier you contact a REALTOR® the faster they can help you read the market and know what to expect.

Personally, we love it when folks call us 6 months early so we can provide them with real time data all the way up to the time they go on the market – that way, they have watched the market with us and know what is likely to happen.

So if you have just started talking to your spouse, partner or friends about moving – IT’S ALREADY TOO LATE…just kidding – add your REALTOR® to the conversation, or start interviewing REALTORS® so you know what to expect from the process.

Real Life Real Estate Minute – Small 3 bedroom condo townhouse. I had sold it to them. They got in touch 6 months before they wanted to sell.  Tenanted – components sound, paint awful, bathroom dated, floors scratched.  Market value with no work – $195,000. Market value with $5,000 of work (paint, refinish wood floors, re-fresh bathroom (new vanity/sink/tub surround) got a sale price of $220,000 – $20,000 profit.

As always – if you liked what you heard, saw or read subscribe to our podcast, YouTube channel or Like our Facebook page to be notified of the next time we have some straight talk. Thanks for listening…and REST easy!

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Fantastic 3 bedroom split level on corner lot in Rockland

 Rockland, Ontario

3 Beds 2.5 Baths Irregular lot Sq. Ft.

Looking for a private, detached 3 bedroom home on a large lot with a double car garage? This 3 bedroom home is filled with sunlight. Large country kitchen is great for entertaining and the dining area is open to the living room with large picture window. Spacious master bedroom has a large closet. 2 good sized bedrooms and an update...

View Property Details

Filed under: Recent Sales by bgmteam
Comments Off on Rockland Homes – SOLD!!

Hey Everyone and welcome to our 2nd in a series we are producing around the career that we love… real estate.

This is going to be your source for some real estate straight talk – the real deal, real scenarios, myths and myth busting, the rules, the ethics, the process, the expectations – what you really need to know. So here we go!

WHY DO REAL ESTATE AGENTS ASK IF YOU ARE PRE-APPROVED?

 Have you ever walked into an open house, or called a realtor about a listing, and within minutes, they’re asking you if you are “pre-approved” for a mortgage?

If you haven’t, then you have never met a REALTOR®. Or at least enough of them…

Just wait. It’ll happen.

And you’re going to feel like it’s pretty pushy for them to ask that.

You think….you’re joking….right?

You would think its none of their business if you’re pre-approved or not!  You just want them to show you the house and you’ll get the pre-approval if you like it.

But it’s no joking matter.

You will find it depends on the REALTOR®. We all have different personalities. We all come across in different ways. We all handle how we meet, greet, and chat with consumers in different ways. There’s no one way to “be”, as a REALTOR®.

But every single REALTOR® should be asking you if you’re pre-approved. Many do not because they feel like it is a bit pushy and forward. Because he or she worries about offending you. But they should ask…

…because it’s entirely relevant for them to know.

…because it’s entirely important for you to be pre-approved.

It might come across as a pushy, or invasive question. Maybe that is because of how a REALTOR® asks the question. Or when the REALTOR® asks the question. Or, simply because you don’t know that it’s a question that should be asked.

But it is not a joking matter.

And you should expect the question, be prepared to say that you are pre-approved, and…you should actually WANT the REALTOR® to ask you that question.

It’s not like a first date where if your date asks you – “How much do you make” in the first five minutes, you’d feel like that was pushy and weird…..

Creator:Jacom Stephens
Credit:Getty Images/Vetta

and likely that would be the end of the date.

Rightfully so.

Which is why it seems so invasive when a REALTOR® you’ve just met asks you if you’re pre-approved. It feels like they’re asking you some pretty private, intimate stuff that’s none of their business.

But asking for a pre-approval isn’t like going on a first date. It isn’t a marriage proposal. And it isn’t probing on the part of the REALTOR®.

It is a necessary question, and an important piece of information us to know. And for you!

So Why do we ask you if you’re pre-approved?

We aren’t asking you if you’re pre-approved because we’re looking to size up how much you can spend. (At least not most REALTORS®…)

We want and need to know that you are serious, and qualified to buy a house.

And we certainly have their reasons for wanting to know…

As Real estate salespeople we need to make sure we are working with someone who can actually buy a house. We are one of the only service industries that doesn’t get paid unless and until the person we’re working with buys a house. So, this is a matter of being careful about who we spend our time with. It might sound selfish…but you can’t fault us for that. We’re in business. Nobody cuts us a paycheck every second week. And showing people houses is not a public service or charity work. Even working with someone who is pre-approved doesn’t guarantee that we are going to make any money. But at least it’s an indication that the person we are working with can do something.

We also need to know how much you’re pre-approved for in order to advise you as well as possible. Picture us showing you houses for weeks, and months. You finally find “the one”! You get all excited about the house, and you want to make an offer, only to find out then that there’s no way you could afford the house. This leads to heartbreak and aggravation…for both of us. It doesn’t do either of us any good to go through all of that only to find out you can’t afford the houses you were looking at…or even buy one at all.

Caring professional REALTORS® also don’t want you spending your top dollar and putting you in a mortgage poor position. No one likes bologna or hot dog budgets that much.

And, to a degree, this is a safety precaution. You might not believe this, but we are in a pretty risky position. If we just say OK to every person who calls and asks to go see a house, with absolutely no proof or verification of who the person is, that puts us at risk. Sure, a pre-approval won’t necessarily stop an evil person from doing something, but this is a pretty basic precautionary request.

So Even if you have just started looking for a home and haven’t gotten pre-approved (yet)…at least expect the question. Don’t be offended when you’re asked if you are.

In fact, pay closer attention to the REALTORS® who do ask if you’re pre-approved! The ones who ask make it easy for you to find a great REALTOR® to work with.

Because if they’re asking that question, it’s a good sign that they are thorough and thoughtful about how they do their business. That’s the type of REALTOR® you want to have on your side when you’re buying a house — one who’s careful from the get-go. One who pays attention to the details. One who isn’t going to waste your time any more than their own. Or allow your heart to be broken when you fall in love with a house you can’t do anything about.

And if you want to get some really good attention and service from the best REALTORS® you come across, don’t even let them have to ask if you are pre-approved…

Get pre-approved before you even start looking. And let the REALTOR® know you’re pre-approved before they even ask. You’ll set yourself apart from almost every buyer the realtor has ever met.

Don’t know where to start to get pre-approved – some very quick points;

1. If you have a favourite bank, make a call and ask for their MOBILE mortgage specialist.
2. Call a mortgage broker – the advantage here is they only do one credit check and then shop around for you! You can get a couple of names just from REALTORS® websites – good ones have a dedicated page of referrals for professionals they know and trust.
3. Don’t go to more than 2 banks and one broker – it will start to affect your credit score!

Just another piece of advice so you can REST easy and know we’ve got you covered. As always – we are happy to answer any and all questions you may have on this, or any other topic – we are only an email or phone call away!

For more information you can;

Listen to our podcast – https://bgmteam.podbean.com

Watch us on YouTube – https://www.youtube.com/user/myottawateam

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