I’ve written before about the potential downsides for buyers when it comes to the purchase of a private sale. A recent example highlighted this for me, yet again. Let’s call this one A Tale of Two Townhomes.

So, on this particular street [...]]]>

I’ve written before about the potential downsides for buyers when it comes to the purchase of a private sale. A recent example highlighted this for me, yet again. Let’s call this one A Tale of Two Townhomes.

So, on this particular street was the subject property along with two recently-sold units. One sold for $309,000 and was an identical layout; however, it had a finished basement with a second bathroom, den, and fourth bedroom. From a market value perspective, that adds significant value. Another unit a few doors down was an even closer comparable because, like the subject property, it had an unfinished basement. It sold for $289,900. The units were almost mirror images, with one exception: the subject property was an end unit.

Well, here’s the thing about end units. People tend to make blanket statements about how being an end unit equates to added value. Possibly. But for starters, it depends on the way the townhouse complex is designed. Sometimes an end unit means added privacy and extra square footage. Other times, the end unit is actually smaller, could be closer to a busy street or even the complex dumpsters. I’ve seen it all. And while one buyer appreciates a few extra windows on that outside wall, another more practical person worries about higher utility bills. Love a side yard? Great! Some buyers see it as wasted space to maintain (and pay taxes on.)

But back to the math.

In the end, the subject property sold privately for $302,000. On the surface, that falls between the two comparables on the street. Except that it doesn’t. The two comparables sold on the MLS and their sale price reflects fees to Realtors that represented both buyers and sellers. Assuming that the private sellers paid out 2.5 per cent of the purchase price to that buyer’s agent, the other 2.5 per cent remains in the hands of the private sellers. Are they happy? Of course they are! But, in my opinion, the buyer overpaid, and here’s why.

When you factor in fees at an average of 2.5 per cent, this buyer effectively paid $550 more than the house down the street with the finished basement – and over $20,000 more than the unit a few doors down with the unfinished basement. Did the Realtor representing the buyer explain all of this in detail? I certainly hope so. I hope that buyer went into the deal with eyes wide open, because more than likely in a few years’ time he’ll be looking to sell that investment. I’d sure hate for him to be surprised to hear that his only chance of getting a return on that investment will be to find someone who, like him, is willing to overpay for property. Who knows what their discussions were or what his expectations or plans down the road will be.

The only thing I know for certain is that any future ill-informed future buyer won’t be my client. I’m not in the business of helping people lose money in real estate. 

My advice is always this. If your kids are old enough to have an opinion about the sale of your house, or to get ‘in the way’ of your efforts, [...]]]> Sometimes sellers express a concern about how the process of listing and selling is going to work if there are kids in the house.

My advice is always this. If your kids are old enough to have an opinion about the sale of your house, or to get ‘in the way’ of your efforts, it’s an opportunity – because it means they are likely at an age where they can be active participants in the process. Rather than work around your kids, make them a part of your efforts to get your home in show-ready condition.

Kids of most ages can help when it comes to pre-listing activities, such as de-cluttering, boosting curb appeal, and even Staging efforts.

Get your kids interested in the de-cluttering process. Preparing for a move down the road give you an opportunity to pare down. Kids can determine which of their favourite toys they’ll keep out, which they can pack away for a few months, and which can be donated to charity for other kids to use.

Kids are also creative, so why not enlist their help in any of the design-related decisions you need to make? Choosing paint colours? Get the kids to weigh in on neutral shades that will appeal to buyers. And if your kids’ rooms have too-bright hues that need to be toned down before your home goes on the market, work with them to identify a more neutral shade in the same colour family.

As you take steps to boost your home’s curb appeal, bring the kids outside and get their help to get the yard in shape. Depending upon the time of year that you’re selling, their participation could range from cutting the grass, keeping gardens watered, planting a few seasonal plants, shoveling the walkway…  all are elements of the curb appeal mix, and your kids can help. 

Once your Guelph home is for sale, enlist your kids’ help in keeping the home in show-ready condition. Hopefully, having been involved in your plans, they’ll understand why it’s important to put things away and keep things even tidier than normal.

Kids are great. Think of them as a help, not a hindrance, when you’re preparing to sell your Guelph home.

Here’s what you’ll need to gather, in order to make the meeting [...]]]> I’ve already written about the importance of getting a mortgage pre-approval when you are in the market to buy a home in Guelph. Now… how to prepare for that first meeting with a Mortgage Agent?

Here’s what you’ll need to gather, in order to make the meeting as productive as possible:

• Income statements and tax returns for the last two years;
• Bank statements for the last three months; 
• Recent pay stubs (and, if you can get one fairly easily, an employment letter can’t hurt;)
• Proof of any other income you will be using as a basis for your pre-approval; and
• Information related to your down payment.

Be sure to go to the meeting with as much clarity as possible on what you intend to buy – and for what purpose. Are you looking only at freehold homes in Guelph – or could a condo be an option? Will this be a family home for you, or are you buying this Guelph home as an investment for someone else to reside in? These distinctions matter, when it comes to mortgages. 

Lastly, go to the meeting with questions. Take time to educate yourself during the process. Ask questions about anything you aren’t sure of, including fees, terms, etc. You are there to provide information, but you’re also there to gather information!

A final word of advice: Give serious consideration to talking to a few Mortgage Agents. Many home buyers head to their bank of choice and stop there. I say shop around. Talk to at least two if not three mortgage professionals to find someone who you really connect with, who offers good products and services, and who you feel is trustworthy. Don’t be afraid to ask for references. And by the way, all of that advice applies to searching for a Guelph real estate agent, too! You really owe it to yourself to take the time to interview a few industry professionals, rather than just settle on the first person you talk to.

Please feel free to contact me if you need a referral to a Guelph Mortgage Agent.

The trend of raising urban chickens has grown significantly. In fact, backyard chickens are downright, dare I say it, trendy in some parts. Well, you can’t raise backyard chickens in every town in Ontario, but as it happens, Guelph’s bylaws allow you to do so.

It’s not for everyone, but enthusiasts cite a [...]]]>

The trend of raising urban chickens has grown significantly. In fact, backyard chickens are downright, dare I say it, trendy in some parts. Well, you can’t raise backyard chickens in every town in Ontario, but as it happens, Guelph’s bylaws allow you to do so.

It’s not for everyone, but enthusiasts cite a variety of benefits, starting with the obvious: A regular stream of healthy, fresh eggs that most swear are superior in taste (and health benefits) to their supermarket counterparts. It’s safe to say that the life of a backyard chicken is exponentially more satisfying and humane than “life” in a big factory farm. And backyard chickens contribute to both pest control and weeding in the yard. What’s not to love?

Well, needless to say, there are some considerations. So first things first: Do your research. It’s very important to understand all of Guelph’s rules and regulations when it comes to  raising backyard chickens, and yes there are plenty of rules to adhere to. 

Take the time to educate yourself on the proper housing set-up as well as how to care for the chickens. These animals will become your responsibility and that should be taken seriously. Please be prepared to give them a good life, or don’t undertake this venture. 

Last, be a good neighbour and be sensitive to the fact that the folks next door might not be enthusiastic about your new venture. Your neighbour might have concerns about things like noise or odour, but with a little education, you should be able to assure them that your flock of backyard chickens will be stellar neighbours.

For more information, visit the Facebook Page for the Guelph Chicken Keepers Association or contact the City of Guelph.

If you’re buying a home in Guelph, talk to your Realtor and be clear on whether or not the issue affects you. There are three termite [...]]]>

No, we don’t have a termite invasion in Guelph. It was this photo or one of a nasty-looking termite. You should thank me!

The mere mention of termites is enough to scare people away from buying homes in certain parts of Guelph. But in actuality, termites in Guelph are very well managed.

If you’re buying a home in Guelph, talk to your Realtor and be clear on whether or not the issue affects you. There are three termite management areas in Guelph and all three are located in the north part of town.

If you are selling a Guelph home within the termite management area, you (or your real estate agent) are required to disclose that information. You’ll need to obtain a termite inspection report from Guelph’s Termite Control Officer. The inspection is conducted very quickly, typically within a day, and there is no cost to you. You’ll receive a termite inspection report, a copy of which you can give to prospective buyers.

Within the termite zone, there are certain limitations in place for homeowners regarding landscaping, renovations, storage of wood, etc. For more information, see the City of Guelph’s Termite Page. If you live in the termite zone, as I do, you’ll receive notices from the City of Guelph periodically that update you on how termite control efforts are progressing.

Here’s why:

If you’re a buyer or a seller, I [...]]]> Have you ever heard the term functional obsolescence? In real estate, the term refers to features that are impractical or undesirable. For example, lack of closets, outdated wiring or plumbing, even an architecturally ‘out of place’ style within a neighbourhood can all be examples of functional obsolescence.

If you’re a buyer or a seller, I hope you’re working with an experienced Realtor. But regardless, I believe consumers should be informed. It’s important to have a basic understanding of functional obsolescence – and here’s why.

For Buyers 

Functional obsolescence can affect your investment in two ways:

1. Value. You certainly don’t want to pay extra for a feature that isn’t really a bonus, or might even need to be remedied. Case in point, I took a buyer through a home that had a newly-renovated bathroom on the main floor, complete with soaker tub, shower, and lots of bells and whistles. It was fantastic! The problem? All of the bedrooms were upstairs. It was impractical, to say the least. The list price reflected the value of the renovations, but failed to acknowledge it was a case of functional obsolescence – i.e. poor planning. In another case, I took a client through a home that was being sold with all appliances – including the dishwasher that was located in a separate room off of the kitchen. My client and I scratched our heads as we tried to imagine how, day in /day out, you’d unload a dishwasher, then travel back to the kitchen cupboards. All the awkward arrangement served to do was to point out that the kitchen was going to need a reno. 
2. Resale. As a buyer, you may appreciate a property’s other attributes enough to overlook aspects of functional obsolescence, but down the road others may not. Don’t forget that, at some point, you’ll likely sell that property. Functional obsolescence in a home can affect both resale value and time on market.

For Sellers

If you’re a homeowner, you should be able to recognize functional obsolescence in your own property. You have two options. First, live with the issue and price your home accordingly when the time comes to sell. Or, take steps over time to remedy the problems. 

When I bought my 1860s-built home, it had one tiny closet. I hired a contractor to build closets in two of the bedrooms. I lost a bit of square footage in the rooms, but I didn’t lose any of the charm of my historic home, and I added a practical element that most buyers today consider a necessity. Over time, I’ve also taken steps to upgrade other aspects of my home to try to bring it to a more modern standard of insulation, plumbing, electrical, and other not-very-fun ways to spend money. 

Speaking of fun, this really isn’t the fun stuff of real estate. The fun stuff is looking at houses, falling in love with a neighbourhood, decorating, etc. But this is the business of real estate – the dollars and cents – and understanding functional obsolescence can help you avoid the least fun thing of all: losing money on a real estate investment. 

In some cases, the issue is paint or decor. Most often, the house has adequate light; the seller just hasn’t showcased it properly.

When you’re selling your Guelph home, basic Staging strategies should [...]]]> Some things almost universally deter potential buyers when they’re house-hunting. Here’s one for the list: A home that just feels dark. 

In some cases, the issue is paint or decor. Most often, the house has adequate light; the seller just hasn’t showcased it properly.

When you’re selling your Guelph home, basic Staging strategies should come into play. Putting your home on the market is like heading out on a first date or a job interview. You take a bit of extra care and you do your best to impress. In the case of home Staging, a simple and low cost way to do that is to let in the light. 

Before you list your home, start by doing an inventory of lighting fixtures. Consider replacing any that are in disrepair or otherwise unappealing. Make sure they are clean and that all bulbs are working. Aim for a consistent bright wattage throughout your home. And, prior to open houses or private viewings, open up curtains or blinds and turn on the lights. If you are really counting your pennies, don’t forget to budget for a temporary increase in your hydro bill. 

Does it work? I think so. Buyers will take notice of the lighting in your house – so why not ensure that what they’re noticing is a plus and not a deterrent.

But it happens. We get married, things fall apart, and one day we find ourselves saying goodbye to someone we once loved – and wondering how it all went [...]]]> Even in the best of circumstances, selling a home can be very stressful. Factor in a divorce and the process can be all but unbearable.

But it happens. We get married, things fall apart, and one day we find ourselves saying goodbye to someone we once loved – and wondering how it all went so wrong. It’s stressful, it’s incredibly sad, and it’s very costly. Having been through it, I wouldn’t wish it on a soul.

If you’re selling your Guelph home in the midst of a divorce or separation, this is my advice:

1. Work with Sensitive People. There are plenty of Guelph Real Estate Agents, Mortgage Professionals, and Stagers to choose from. Right from the gate, choose to work with people who are professional and successful – but also those who are empathetic. If they don’t understand the unique stress of a separation or divorce, move on. In times like these, you need to surround yourself with people who are patient and understanding – period. 
2. Work Together, if Possible. You and your spouse are separating and emotions are likely to run high. But your home is likely your most valuable investment. Can you agree to work together when it comes to Staging, showing, and selling your home? Failing to do so is likely to cost you on many levels.
3. Stage Carefully. It may be that one of you has moved out (or will move out,) prior to listing the home for sale. But think carefully before you remove half of the furniture and start leaving walls bare prior to selling your home. Buyers are inherently curious about why people are selling. A half-empty house, empty closets, or bare walls are all strong indicators of a separation. Some will sense that and assume that you’re desperate to sell. Well, maybe you are – but they don’t need to know that. Consider keeping the basics in your home while you’re selling. Your separation agreement can stipulate very clearly that specific items are to be divided and removed from the home upon an accepted offer to purchase. 
4. Ambience and Energy. If you are the sort of person who believes that homes contain a certain kind of energy, and if you feel that yours is negative, take steps to resolve it prior to listing your home for sale. Brighten up some rooms with fresh paint, bring in some flowers, keep soft music playing in the background, etc. If you are a spiritual person, ask your pastor to bless your home. In short, do whatever it takes to make you feel happier in the space. Rest assured, it will translate to others.

Finally, remember when you are going through a divorce to be kind to yourself and to surround yourself with people who will support you through the process.