Here’s our little treat to all our beloved readers and clients. Start the year right with this STARTER PACK. Learn the basics of selling your Edmonton home this 2015.
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Also, check out our newest Edmonton MLS page for best homes for sale.
Since its Christmas, we thought of posting a light hearted article for a change. This piece from Rochester’s Real Estate Blog caught our attention.
The listed Real Estate myths persist not only in Edmonton, but also all around the world. Check it out if you have also heard of them.
Oh, by the way, remember to check out our new Edmonton MLS Listings when you’re done for the latest and most up-to-date listings of homes for sale in Edmonton. Enjoy!
All Real Estate Agents Are The Same
One of the most common real estate myths is that all real estate agents are the same. This myth can lead to buyers and sellers making big mistakes when selecting a real estate agent to represent their interests. Every agent has different skills, different experience levels, and different traits.
For example, a real estate agent who has been selling real estate for two years and primarily works as a buyers agent is not going to have the same skill set as a real estate agent who has 20 years of experience selling waterfront property.
There is a significant difference between real estate agents who work with sellers and real estate agents who work with buyers. The saying, “All men are created equal,” is the complete opposite when it comes to real estate agents.
All Real Estate Agents Make Boatloads of Money
Successful real estate agents certainly can make a very nice income. The amount of time, effort, and money that top producing real estate agents need to put forth is significant. A common real estate myth is that all real estate agents make boatloads of money.
The general consensus is that real estate agents earn 6% of the sale price of a home, no matter what. This is not true. There are many things that effect the percentage of commission earned by real estate agents. First and foremost is the fact that commission is negotiable. Any real estate agent who says otherwise is likely violating rules and regulations.
Let’s assume that a seller is willing to pay 6% of the sale price of their home. The 6% commission is normally divided between the listing and selling brokers. The real estate brokers then take a “cut” of their respective commissions before distributing to the real estate agents involved in the transaction. In addition to their company taking their “cut,” there are many expenses that real estate agents incur that most don’t realize. Items such as health insurance, fuel, car maintenance, and advertising expenses are just a handful of the expenses that real estate professionals are responsible for.
Obtaining a real estate license is not difficult. Many people get their license thinking it’s an easy way to make boatloads of money. There are many considerations that should be made before getting a real estate license.
When Selling a Home, Price It To Leave Room For Negotiations
Correctly pricing a home is one of the top 3 important things when selling a home. Incorrectly pricing a home can be the “kiss of death.” There are several real estate pricing mistakes that sellers commonly make. One of these common pricing mistakes also happens to be a very common real estate myth as well.
Pricing a home higher so that there is room for negotiations with a potential buyer. This real estate myth, if believed by a seller, can lead to tons of frustration and potentially to a home that sits on the market for a long time. If you are selling your home, you need to understand who today’s buyers are and what they are all about. The internet has greatly impacted the real estate industry. Buyers are more savvy and educated than ever before, due to the amount of information available through the internet.
A buyer will not waste their time looking at a home that is overpriced by thousands of dollars. So before you list your home $25,000 higher than a top producing real estate agent suggests to leave room for “negotiating,” you need to understand that most buyers will know it’s over priced and may pass on looking at your home.
Using the listing agent to buy a home doesn’t always mean a better deal
Using the listing agent to buy a home doesn’t always mean a better deal
You Get A Better Deal When Buying a Home Through The Listing Agent
Buying a home can be a complicated process, especially for a first time home buyer. It’s imperative that when buying a home, you have a great real estate agent representing your best interests. A common real estate myth is that when buying a home, using the listing agent will result in a better deal on the home. The thought process behind this myth is the listing agent will cut their commission percentage because they are receiving both “sides” of the transaction.
Sounds like an ideal scenario for a buyer, right? Wrong. What a buyer may not understand is that the listing agent is also still representing the seller. While they do need to be honest, fair, and ethical to all parties and certainly there are real estate professionals out there who can be trusted to represent both parties, it needs to be understood that the listing agent still has to represent the sellers best interest as well.
If you use a listing agent to buy a home, consider how hard the listing agent is going to negotiate the price with the seller, who also happens to be their client. Same goes for any negotiations from the home inspection findings. It’s possible by using the listing agent a better deal could be had, however, the biggest consideration that needs to be taken into account is the representation that will be received.
Getting Pre-Approved Is Done After Finding Your Perfect Home
One of the hardest myth to break for real estate agents relates to financing. Many home buyers believe that getting pre-approved doesn’t need to take place until they have found their perfect home. This is a huge mistake for many reasons.
A buyer should be and want to be pre-approved for a mortgage before they house hunt. House hunting can be time consuming, exciting, frustrating, and many other things. Before getting involved in a full out search for that perfect home, eliminate the chances of any disappointment down the road by getting a pre-approval from a mortgage lender. A buyer can be devastated if they find a home they love, write an offer, and have it accepted only to find out in the future they have been declined for a mortgage.
Another reasons why a buyer should get pre-approved for a mortgage before finding their perfect home is in the event their perfect home is receiving multiple offers. A multiple offer scenario is a dream for a seller and a nightmare for a buyer. A buyer who has been pre-approved has a significant advantage in a multiple offer scenario.
Open Houses Sell Houses
Many sellers love the idea of their home being open every Sunday. A common real estate myth is that an open house is a great way to sell a home. The fact is that according to the National Association of Realtors, 2% of homes are sold as a result of an open house. Can a sale result from an open house, YES. Is it likely, NO.
You’re probably asking yourself why many real estate agents push open houses. When interviewing potential Realtors to sell your home, ask them why they want to hold your home open every Sunday. If the answer is because it will sell your home, you may want to reconsider hiring that prospective Realtor.
The primary reason why a real estate agent would swear by open houses is because they see them as an opportunity to pick up new clients. It’s possible that a buyer walks through an open house and does not have a real estate agent they’re working with. This is a great opportunity for the real estate agent to convert the potential buyer into a client.
Before deciding whether an open house is something you would want to take part in when selling your home, consider all the possible drawbacks of an open house.
Selling For Sale By Owner Can End Up Costing a Seller Thousands of Dollars
Selling For Sale By Owner Can End Up Costing a Seller Thousands of Dollars
Selling A Home “For Sale By Owner” Saves Lots of Money
The main reason sellers believe that selling their home “for sale by owner” (FSBO) is a good idea is because it will save them lots of money. This is a common real estate myth. Many sellers who attempt to sell their home FSBO believe that selling homes is easy. It would be great if selling homes was as simple as putting a for-sale sign in the front yard of a home, input the home into the MLS, and watch it sell, but it is not.
FSBO’s often will end up losing money by not hiring a professional real estate agent. This could be due to several different reasons. Did the FSBO overprice their home and it didn’t sell for 6 months? Was the transaction mishandled ending up in a buyer being declined after 3 months under contract? Did the FSBO not know how to negotiate the best price and terms for their home?
Real Estate Agents Only Can Show Their Own Companies Listings
Real estate agents who belong to their local real estate board and MLS have access to any listing that is multiple listed. A common real estate myth is that real estate agents can only show their own listings or their own companies listings. This is false.
For example, if a real estate agent works for Nothnagle Realtors, my Rochester, NY real estate company, they also can show properties that are currently listed by other real estate companies, such as Re/Max or Hunt Real Estate.
Real Estate Agents Say And Do Anything To Make A Sale
Real estate agents are held to a very strict code of ethics and also many rules and regulations. Many believe, however, that real estate agents will say and do anything to make a sale, because they don’t get paid until a home closes. This real estate myth can certainly be possible as there are real estate professionals who will say and do anything to make a sale, however, the majority of real estate agents will not.
Most real estate agents business relies heavily on referral business, word of mouth business, and repeat business. A real estate agent who blatantly lies to clients just to make a sale, is unlikely to receive any of the above mentioned business. When buying or selling a home, it’s extremely important to select a very trustworthy real estate agent who you can trust and are comfortable with.
A Home Doesn’t Need To Be Prepared For Sale
The real estate myth that homes don’t need to be prepared for a sale can cost a seller thousands of dollars. Properly preparing a home for sale can be the difference between it selling in a relatively quick amount of time or it sitting on the market and developing a negative stigma. It’s very important that you don’t list your home before it’s ready.
Why is it important to prepare a home for sale? First and foremost, today’s buyers are more often than not looking for a home that is move-in condition. Additionally, the first 3-4 weeks on the market are the most critical. If a home is priced properly, prepared properly, and marketed correctly, it should be under contract in the 3-4 weeks on the market. Simple preparations, such as staging tips, general cleaning, minor improvements, and pre-listing inspections can all help minimize time on market while maximizing the sale price.
The above real estate myths are too commonly thought of by the general public. While it’s understanding why these real estate myths could be true, they certainly are not.
This article was originally published at Rochester’s Real Estate Blog.
Always, there’s that never dying question whether to keep your Edmonton house on the market or not this holiday season. The last thing on homebuyers’ mind and priority list is buying a new home, right? This is one of the main reason why most Edmontonians prefer to remove their home listings from the MLS temporarily and just wait it out until the New Year.
Before you jump into the bandwagon, here’s a few pointers that you might change just your mind.
First and foremost, the amount of listings on the market significantly drops, there are ever so few new homes for sale in this time of the year which means fewer competition on your side of the business. The fewer competition, the better chances your home will be sold faster.
Second, during the holiday season, home buyers are more motivated to spend. And these home buyers are typically the ones that are really serious about buying-they’re not the window shopping type. They would not waste your time.
Lastly, companies usually transfer employees in the first quarter of the New Year, these employees usually chose to buy homes right away because they can’t wait. Since Edmonton’s economy is on the rise, you’ll see more of this kind of transactions.
As a bonus, the winter months make homes better for open houses because the decorations pop-out, the fire place makes it warm and cozy (selling point right there) and the smell of cookies baking just make it irresistible!
If you’re ready to sell, call us at 780-634-8151. For a list of houses for sale right now, do check out our Edmonton MLS listings.
We discussed yesterday the Points To Ponder When Remodeling Your Edmonton Home, now the things you need to ponder when dealing with your Edmonton real estate agents, Team Leading Edge is no exemption. Exciting!
Okay, first and foremost, you have to understand that a triumphant real estate transaction depends not only with your agent but also with you… yes, it definitely takes two to tango.
Now, as one of the deal makers, your participation is very important but you have to do your homework as not to hinder the process in an unfavorable way.
There is a relative connection between the success of the transaction and the quality of your business relationship with the agent.
This may surprise you, but meeting the right real estate agent might mean more to you, yes! This person will do all the heavy lifting for you, be your adviser, be your expert, be your counselor, the list goes on.
Confidence, trust, faith and hope is solid foundation upon which your business relationship should be built on with. If from the very start you have that gut feeling that things would not work out with you and the real estate agent, then the relationship is not worth pursuing.
Here are a few points that you may need to ponder when you start working with that agent.
TRUST: This comes first, as with any type of relationship. You may never achieve anything with the other person if you do not have trust. Your agent, or in this case, Team Leading Edge Realtors, live and breathe real estate. They eat real estate transactions for breakfast, so you have to believe in them. The reason they are with you from the very start is to act as support and provide the best solution to your real estate endeavor.
RESPECT: This goes hand and hand with trust. If there is no respect, do not expect to have a successful business transaction.
GRATEFULNESS: Show your consideration and appreciation-that means a lot to all agents. Do not be afraid to show how grateful you are with the efforts that your agent makes. It is essential to have feedback in order to give your agent that much needed motivation. It’s free after all!
DO NOT BE PUSHY: Respect, remember? It is advisable to maintain close contact with your agent but do not be too pushy. Your real estate agent was trained to provide you with vital information of the transaction, being too pushy would just hinder his/her effort.
On the other hand, do not be hesitate to give your agent a call whenever you would like to clarify something.
LASTLY, OPEN-MINDEDNESS: It’s a whole new world, today’s real estate buyers all ways have too high of an expectation. Be the better person by seeing the broader picture. You need to listen intently with what your real estate agent would advise you. This agent knows the conditions and possibilities in today’s real estate market than you. Be flexible to demands, be open-minded.
Ready to start working with an agent? Great! Call us at 780-634-8151 and let’s get that transaction going! Team Leading Edge provides high-speed access to Edmonton’s real estate MLS listings, this will make sure you get the fastest turn-around time for your property.
Understanding the value of your Edmonton home is one of the hardest parts of being a Team Leading Edge Realtors®. As you might already know by now, sellers already have a predetermined amount in their minds on how much they want to sell their homes.
But, how do you really determine your Edmonton home’s value? Well, it basically depends on what kind of property you own. If for example, you own a condominium unit, checking out the recently sold units in the same condominium building could help provide a starting point for the price. While for properties located inside a subdivision, such as town houses and detached homes, determining the price starts by checking out similar properties sold within a one mile radius in the past 2-3 months.
Remember, this is best done by Realtors®, like our team, since we have access unhindered access to the local Edmonton MLS listings.
After the check-up is done, probing deeper is key. You must analyze if the properties sold were at a lower or higher price range. In a stable market like Edmonton, foreclosure or short sales at a lower price range may not be the best representative of the actual fair market value of the house. Regular sales within the higher price range on the other hand can be a good consideration for the price as it can be a reflection of an uptick in the neighborhood prices.
The time of year is also a big factor in knowing your home’s value. Typical prices usually drop or stay flat in the winter months, such as what we’re experiencing at this moment.
If you have read our previous posts, we emphasized that upgrades or renovations play a crucial role in improving a home’s value. Those homes with upgraded baths and kitchens always have a better (higher) value than those that doesn’t have one. If you own a condo unit, those on the higher floors with a balcony and view tend to have a premium over those in the lower floors.
After all these things have been factored in, that’s the only time a reasonable price could be determined for your home.
Get in touch with us at (780) 634-8151, we’d love to help you figure out the best value for your Edmonton home.
Risk management is all about controlling and minimizing your exposure to the negative impacts of forces beyond your control. We here at Team Leading Edge have gathered the top 5 things we consider a must-do to avoid all those unnecessary loses in your Edmonton real estate investments.
If you’re looking for new real estate investments, you’re in luck! We have one of the best real estate projects in town. A Team Leading Edge exclusive, newly built available for you. Check all of the out here.
In case you missed it, theglobeandmail.com published an interesting report last 11 November written by Michael Babad entitled “Why we shouldn’t fear a crash in Canada’s three hottest housing markets”.
Here’s the breakdown of it.
In the housing and demographics side, senior economist Robert Kavcic found in his research that while the residential construction starts are at record levels, still grew 4% year over year.
Toronto is experiencing a 4 1/2 –year low in constructions starts due to the cooling down of population growth.
Mr. Kavcic further said that there is no meltdown in the horizon since the constructions happening in Toronto were mostly started in 2012 and 2013, which means there is no real overbuilding.
As what we have discussed in our previous posts, housing starts have declined in October reaching a low of 183,600, surpassing projections by economists.
“The focus in Canada is on Vancouver, Calgary and Toronto, where prices are running hot. Most recently, the Bank of Canada has said other markets are showing signs of a soft landing.” the report said.
Gluskin Sheff + Associates chief economist David Rosenberg suggests that the downside surprise in data is a welcoming point for policy makers, where homebuilding is staying consistent with the Canadian household formation trend.
This trend is well above the requirement to match the growth in population as noted by Brian DePratto, Toronto-Dominion Bank economist.
He further adds that “A gradual rise in interest rates, along with the moderate level of overbuilding will help moderate housing activity.”
All this point to a rosy real estate industry in Edmonton. The music still continue to play and so is the need to dance to it. Buy now. Check out the latest available homes for sale in Edmonton and nearby areas on our high-speed Edmonton MLS.
Read complete report here.
This past few weeks, we at Team Leading Edge have harping the good news about Edmonton’s real estate industry, today, we’ll try to touch base on the issue of declining oil prices and what it means to the real estate sector.
This topic strikes close to heart since one of Alberta’s main source of income is oil money.
In the past 4 months, oil prices have plunged to a low of 25%, although this is nothing compared to the 80% drop during the Great Recession, some business leaders still foresee a negative effect to the real estate side.
This is not to say that there is another major crisis. Canada’s southern neighbor is currently enjoying a faster than average economic growth.
The declining in oil prices might cost Alberta’s provincial treasury CDN $215 million, if oil prices drop down a notch below the $92 per barrel mark.
David Sanche, co-CEO of Westrich Pacific, said that if oil prices stay low until spring time, condominiums that are entering the pre-marketing phase might face delays, including their project at the Windemere area and corner of 102nd street and 102nd avenue.
On the other hand, the decline may prove to be a good thing for the construction industry as it might shift the demand for construction workers from the oilsands to Edmonton’s real estate.
Taxes aren’t the most pleasant of expenses to pay, but then again, in its essence, it’s necessary to keep things going especially in a prestigious place like Edmonton.
Last 31 October, CBC News published an article entitled “City admin says tax increase needed for growing population”. This apparently was not received well, with one reader commenting, “City council should get rid of the suits and go to their job in jeans and a T shirt for a while… Maybe it would help them come back to reality…”
According to the report, the 5.3% tax increase is for one, due to the rapidly growing population of the city. As of last Friday, the city administrators have released details of the 2015 proposed operating and capital budgets. This would mean an added $9.17/ month or $182 / year for a total of $2,184 to the ordinary Edmonton home.
Lorna Rosen, Edmonton’s Chief Financial Officer wrote in a release that “The proposed 2013 Operating Budget allows us to expand services to a population that has grown by 60,000 people in the last two years,”
Of the $2.3B operating budget, 15% would go to police services, 14% to the transit sector while the third largest expense would be towards parks and community services.
A small fraction of the billion dollar budget would be spent towards infrastructure projects.
“Council will hold a public hearing on the budget Nov 24. Councillors will then begin deliberations, where they will finalize the budget, on Nov. 26” the report said.
View complete report here.
Let us know what you think about this in our comment section below.
The shopping season is upon us and for this last week of October we at Team Leading Edge have decided to gather the best new tech toys you must have for your Edmonton home.
Since technology will now always be integrated with our modern homes it is best to know whats new in the market and how it could help us live more comfortably.
Below are the top 5 gadgets we handpicked just for you!
This one is pretty slick as it allows you to control the lighting ambiance of your home through your tablet or smartphone. You can create lighting scenes and other cool stuff with it! It has also garnered Forbes Product of the Year in 2012
As I have said before, automation is the key—for the lazy 😉
You can also monitor the status of your garage door (open/close) wherever you are in the world through an app in your smart phone. This comes pretty handy when you’re always away and fighting bad guys from the opposite side of the world.
The 10” goose-neck gives users the ability to position the iPad either in landscape or portrait mode!
For those people who snore (I don’t snore, I think), this bed would automatically raise the head of whoever is snoring. It also has a timer setting, in-bed massage and for aesthetic purposes, an under bed lighting. Tony Stark, anyone?
What we’re reading today