Lori Patrick

Is it a buyer’s or a seller’s market?

When there are lots of people looking for homes but not many for sale, this is called a ‘seller’s market’, because the seller has something everybody wants. When there are more homes for sale and not many people buying them, this is called a “buyer’s market” because buyers have more power of choice. A REALTOR® is the best person to consult about this.

How quickly do you need to sell your home?

In a seller’s market, top price and a fast sale can go hand-in-hand. In a buyer’s market, more sellers are competing for your potential buyer. If you have to sell right now, you may wish to lower your asking price a bit to speed up the sale. REALTORS® are masters at figuring the price-to-listing ratio and know how to attract offers without going unnecessarily low.

Seasonality – Do home sales get frostbite?

It’s true. Winter sales tend to be slower and spring sales are more brisk. Regardless, there are always people looking to buy and seasonality is only one of many factors to consider. If you’re also buying a home. In this case, you don’t really have to worry about playing the market. If you sell your existing home for a ‘low’ price, you’re probably also buying at a low price. If you are upgrading to a larger home, this actually works to your advantage. Imagine when your bigger home is on the upswing. If you’re downsizing from a bigger home to a smaller home or a condo, you need to pay a bit more attention to the market.

Buy first or sell first? The eternal question

Many people are able to time their sale and purchase so they happen on the same “closing date.” Buyers can make their offer “conditional’ on the sale of their existing home, to make sure they’re not left paying for the upkeep of two homes. When selling, you can try to extend the “closing period” to give yourself more time to find your next home. REALTORS® are very skilled at this sort of negotiation and can make your transitional life a lot easier.

If you find your new dream home before you’ve even started to sell your old one.

Talk to your existing mortgage lender. You may be able to arrange “Bridge Financing.” This is when your lender (the bank) is confident your existing home will sell quickly and they agree to lend you the down payment for your new dream home.

Find out more on this article by visiting www.ereb.com

Before you begin any value-increasing projects, remember not to raise the value of your property too far above others in the neighborhood. People who want expensive homes shop exclusively in pricier neighborhoods. A good rule of thumb: keep the value of your property within 15 to 20 percent of your neighbors’.

• Project (average cost recouped, national) according to Realtor Magazine:
• Minor kitchen remodel (88%)
• Bathroom remodel (85%)
• Major kitchen remodel (81%)
• Family room addition (80%)
• Deck addition (77%)
• Master suite (75%)
• Attic bedroom (74%)
• Siding replacement (73%)
• Window replacement (69%)
• Home office (55%)

Projects that may increase your home’s value include: Jacuzzi (4 jets or more); permanent hot tub; in-ground pool with nice deck area; security system; sprinkler system; substantial out buildings such as a two-car garage or finished workshop; and vaulted or trey ceilings. Think twice about the following projects however, as they may not add value to your house: above-ground pool; ceiling fans; garden pond; and light fixtures.
Some tips when attempting value-increasing remodeling:

• Remodel with mass appeal in mind. Potential buyers are usually attracted more to neutral, mainstream design.
• Don’t go cheap when it comes to construction. Use durable, quality materials. If you’re a do-it-yourselfer, honestly evaluate your ability to do it right.
• Don’t remodel in a different style from the rest of the house. Additions and improvements that look “tacked on” may detract from a home’s appeal.
• Turning a bedroom into a bathroom is a mistake – it reduces the number of bedrooms, a chief selling point.
• Don’t do a $30,000 kitchen remodel in a $100,000 house – unless you plan to continue living there. It is a waste of money.

Make sure the outside of your home is spic-and-span. Clean out the gutters. Wash the windows and remove cobwebs and bugs. Trim the hedges, cut and edge the lawn, sweep the sidewalks and driveway. Plant some colorful flowers out front.
You may want to add to or improve your landscaping while you’re at it. According to a study conducted by Money Magazine, landscaping may be the best investment to improve a home’s value. The study found that well-planned, attractive landscaping was estimated to have an actual recovery rate 100 to 200 percent higher than a kitchen or bathroom renovation.

Edmonton, January 6, 2014: Sales of residential property through the Edmonton Multiple Listing Service® (MLS®) System in 2013 in the Edmonton CMA were almost eight percent higher than in 2012. From 2011 to 2012 the number of sales increased 6.2%. There were 17,055 residential sales reported in 2013 as compared to just 15,812 in 2012.

Sales were up in all residential categories with 10,487 SFDs sold in 2013 (up 3.4%) along with 5,059 condominiums (up 14.7%) and 1,144 duplex/rowhouses (up 18.2%). First-time buyers accepted the condo lifestyle as a way to get into the housing market. Compared to 2012, the percentage of SFDs sold dropped from 64% to 61.5% of total sales while condo sales increased from 28% to 30%.

The higher sales numbers were driven by the strong local labour market, continuing low mortgage rates, and a stable pricing environment. The 12-month, all-residential average price in 2013 was $350,208, a modest 2.95% increase over the 2012 price of $341,891. Median prices increased from $331,000 from $323,000, only a 2.48% lift, indicating that there was increased activity at the mid-market price point this year.

“REALTORS® report that there has been a shortage of lower-priced homes all year which has pushed value conscious buyers up-market or into condos,” said REALTORS® Association of Edmonton, President Greg Steele. “New home builders are trying to fill the void by building more condos and single family homes at lower price points.”

The all-year sales-to-listing ratio was 69% with average day-on-market at 53 days. The active market was highlighted by a year-end inventory of just 3,049 properties: a drop of 1,000 from the month previous.

During the month of December, the price of a single family detached property rose 4.4% from $405,826 in November to $423,544 in December. Condo prices dropped 2.4% in December to $234,967 while duplex/row house prices shot up 9.8% to $358,978 (following a marginal uptick the month previous). Overall, the average all-residential prices was up just 1.1% to $350,208 when compared to the previous month. December sales (adjusted for late reported sales) were: SFD – 471, condo – 271, duplex/row house – 45, and total residential sales 805.

“Now that the hectic holiday season is over, listing and sales activity will pick up as it always does,” said Steele. “Buyers are urged to take advantage of the low mortgage rates while market conditions are favourable and to consult with their REALTOR® about the advantages of a resale home or condo in any of the communities in or around Edmonton.”

Real Estate Association of Edmonton: http://www.ereb.com/News&Events/LatestMarketStatistics.html