HOW TO CHOOSE YOUR REALTOR

Selecting an agent to represent you in making real estate decisions is an important task. Be sure you know all the facts! Here is a list of questions to help you make an informed choice!!

GENERAL QUESTIONS:

  • Are you a full time real estate agent?
  • How many years of experience do you have in this marketplace?
  • What area do you specialize in?
  • Would you provide me with a list of homes you have sold in the last year?
  • Do you have a personal real estate web site?
  • Do you consistently attend Okotoks realtor open house tours to ensure you are knowledgeable about all MLS homes for sale?
  • Do your clients recommend you to their family and friends?
  • Do your clients choose to do repeat business with you?
  • Will you provide references from previous clients?
  • Do you have someone you trust to look after your clients when you are away?
  • Does your company have a national referral network?
 

QUESTIONS SPECIFICALLY FOR SELLERS:

  • Do you do local advertising?
  • Do you have a  local location to display listings and photos?
  • Do you consistently provide feedback to vendors on showings?
  • Do you offer a personal services guarantee on your listings?
  • Does your office use teamwork to assist in getting listings sold?
  • What is your list price to sale price ratio?
  • What percentage of your listings sell?
  • How many listings do you have right now?

QUESTIONS TO ASK YOURSELF:

  • Does this agent make me feel comfortable and confident, not anxious or pressured?
  • Does this agent return calls promptly and answer questions readily?
  • Does this agent demonstrate a solid knowledge of the Okotoks marketplace?
  • Did a friend recommend this agent to me?
  • Have I noticed this realtor’s signs or advertising?
  • Do I trust this agent to give me honest guidance and advice?

 

BUYING A HOME

Determining What You can Afford

The best way to do this is to talk with a mortgage specialist personally, they will do the calculations for you and ask all of the pertinent questions. Phone inquiries are only as accurate as the person on the other end of the line.

This will avoid disappointment later when all of the specific questions are answered. If they do not offer written pre-approval and interest rate guarantee try another institution. If they do not offer at least .5% off the posted rates without being asked try another institution. If they do not offer to pay for the appraisal and waive your bank application fee and annual renewal fees, Call Me and I will put you in contact with the right people.

Understanding Market Conditions

The Real Estate Market is always changing. Don't rely on dated information, Call Ryck for an up to date explanation of market conditions.

Market Conditions

Characteristics

Implications

Buyers Market:

The supply of homes on the market exceeds demand.

High inventory of homes. Few buyers compared to availability. Homes on the market longer. Prices tend to drop

More time to look for a home. More negotiating leverage.

Seller's Market:

The number of buyers wanting homes exceeds the supply or number of homes on the market.

Smaller inventory of homes. Many buyers. Homes sell quickly. Prices usually increase.

May have to pay more. Make decisions quickly. Conditional offers may be rejected.

Balanced Market:

The number of homes on the market is equal to the demand or number of buyers.

Demand equals supply. Sellers accept reasonable offers. Homes sell within an acceptable time period. Prices generally stable.

More relaxed atmosphere. Reasonable number of homes to choose from.

 

The Major Elements of an Offer

1. Price

    Depending on local market conditions, your opinion of value and market information provided by your Century 21 Real Estate Professional, the price you offer may be different from the seller's asking price. A well priced home should sell within 2% of list price.

2. Deposit

    The deposits shows your good faith and will be applied against the purchase of the home when the sale closes. Your Century 21 Real Estate Professional can advise you on an appropriate amount for your area.

3. Terms

    Includes the total price offered and the financing details. You may arrange your own financing or ask to assume the seller's mortgage, especially if it has an attractive interest rate.

4. Conditions

These might include "subject to home inspection", "subject to you obtaining financing" or "subject to you selling your property".

5. Inclusions and Exclusions

    These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors.

6. Closing or Possession Date

Generally, the day the title of the property is legally transferred and the transaction of funds finalized unless otherwise specified.

 

Making an Offer

When the time is right your Century 21 professional can supply current market information to assist you in deciding on a price.

Most purchasers do not make their best offer first, but caution must be exercised to insure the seller is not insulted, or you may never achieve a happy medium. Remember these sellers are in your future home, they will be maintaining and cleaning it and deciding what to leave behind or take with them. Little items like touch-up paint, perennials in the flowerbeds and storage shelving are usually very handy.

Your realtor will discuss the ramifications of deposits, terms, conditions, inclusions and possession to insure a smooth negotiation.

All offers must be communicated in writing to be taken seriously. Also you want it to be firm and binding without the help of a court of law.

All offers must be accompanied by a deposit as a sign of good faith to be cashed and deposited into a trust account and held until possession date.

The balance of the deposit (cash to close) will be due and payable to your lawyer just prior to possession date.

Your Century 21 Realtor will communicate your offer to the seller's agent on your behalf and advise you of their response.

The seller may accept the offer, reject it or submit a counter offer in reference to the price, closing date or any number of variables. By presenting a counter they have nullified your initial offer and you are not bound to any of the terms or conditions. You may respond as you see fit.

The offers may go back and forth until both parties agree or one ends the negotiations.

The sale will probably contain conditions to protect you, the sale will remain conditional until you are satisfied with everything from mortgage approval to home inspection. If a condition is not fulfilled, you are eligible to receive your deposit back in full. Once you have removed all of the conditions it becomes a firm sale and you are legally bound to proceed with the purchase.

A legal professional should be chosen to represent your interests and to process the legal documentation. You may wish to have them review the documents as a condition of the sale or involve them once the sale is firm and binding.

A professional home inspection by a qualified inspector can often prove very helpful in determining the condition of the home and if there are any major expenditures required in the immediate future. They may also help you identify maintenance that may be due to prolong the life of your new home.

 

Glossary of Terms
AMORTIZATION PERIOD:
The actual number of years it will take to pay back your mortgage loan.
 
APPRAISED VALUE:
An estimate of the value of the property. Conducted for the purpose of mortgage lending by a certified appraiser. This appraisal is not to be confused with a building inspection.
 
ASSUMABILITY:
Allows the buyer to take over the seller's mortgage on the property if they have the cash difference between sale price and existing mortgage amount.
 
CLOSED MORTGAGE:
A mortgage that locks you into a specific payment schedule. A penalty usually applies if you repay the loan in full before the end of a closed term.
 
CONDOMINIUM:
The owner has title to a single unit, as well as a share in the common elements such as elevators or surrounding land.
 
CONDOMINIUM FEE:
A common payment among owners which is allocated to pay expenses. Varies greatly with  what is included.
 
CONVENTIONAL MORTGAGE:
A mortgage loan issued for up to 75% of the property's appraised value or purchase price, whichever is less.
 
DOWN PAYMENT:
The buyer's cash payment toward the property. The difference between the purchase price and the amount of the mortgage loan.
 
EQUITY:
The difference between the home's selling value and the debts against it.
 
HIGH-RATIO MORTGAGE:
A mortgage that exceeds 75% of the home's appraised value. These mortgages must be insured for payment by CMHC.
 
INTEREST RATE:
The value charged by the lender for the use of the lender's money. Expressed as a percentage.
 
MATURITY DATE:
The end of the term, at which time you can pay off the mortgage or renew it.
 
MORTGAGEE:
The person or financial institution that lends the money.
 
MORTGAGOR:
The borrower.
 
MORTGAGE INSURANCE:
Applies to high-ratio mortgages. It protects the lender against loss if the borrower is unable to repay the mortgage (CMHC).
 
MORTGAGE LIFE INSURANCE:
Pays off the mortgage if the borrower dies.
 
OPEN MORTGAGE:
Allows partial or full payment of the principal at any time, without penalty.
 
PORTABILITY:
A mortgage option that enables borrowers to take their current mortgage with them to another property, without penalty.
 
PRE-APPROVED MORTGAGE:
Qualifies you for a mortgage before you start shopping. You know exactly how much you can spend and are free to make a "firm" offer when you find the right home.
 
PREPAYMENT PRIVILEGES:
Voluntary payments in addition to regular mortgage payments.
 
PRINCIPAL:
The amount borrowed or still owing on a mortgage loan. Interest is paid on the principal amount.
 
REFINANCING:
Paying off the existing mortgage and arranging a new one or re-negotiating the terms and conditions of an existing mortgage.
 
RENEWAL:
Re-negotiation of a mortgage loan at the end of a term for a new term.
 
SECOND MORTGAGE:
Additional financing. Usually has a shorter term and higher interest rate than the first mortgage.
 
TERM:
The length of time the interest rate is fixed. It also indicates when the principal balance becomes due and payable to the lender.
 
TITLE:
Legal ownership in a property.
 
VARIABLE-RATE MORTGAGE:
A mortgage with fixed payments, but fluctuates with interest rates. The changing interest rate determines how much of the payment goes towards the principal.
 
VENDOR TAKE-BACK MORTGAGE:
When the seller provides some or all of the mortgage financing in order to sell their property.

 

SELLING YOUR HOME

Understanding Market Conditions

The real estate market is always changing. It helps to understand how market conditions can affect your position as a seller.

Market Conditions

Characteristics

Implications

Buyers Market:

The supply of homes on the market exceeds demand.

High inventory of homes. Few buyers compared to availability. Homes on the market longer. Prices tend to drop in this type of market.

Your home may lake longer to sell. Less negotiating leverage in terms of selling price.

Seller's Market:

The number of buyers wanting homes exceeds the supply or number of homes on the market.

Smaller inventory of homes. Many buyers. Homes sell quickly. Prices usually increase.

You may have more negotiating leverage and obtain a higher selling price for your property.

Balanced Market:

The number of homes on the market is equal to the demand or number of buyers.

Demand equals supply. Homes sell within an acceptable time period. Prices generally stable.

More relaxed atmosphere. Buyers have a reasonable number of homes to choose from.

Your Century 21 Real Estate Professional can tell you the market conditions at the time you are considering selling your home.

 

Pricing Your Property

The single most important decision you will make with your Century 21 Real Estate Professional is determining the right asking price for your property.

Everyone has his or her own opinion, what you want is an honest opinion from a proven performer who will prepare a market evaluation you can trust. They must have viewed the comparables, preferably sold some of them too, to make sure they are comparing apples to apples, not lemons!

The right price will insure your property is shown only with similar quality homes not superior product. It should sell faster and for closer to your list price. If you price your home right it should sell within about 2% of list price.

Don't over-inflate the price to "leave room for negotiation". First you need to get an offer. If you're overpriced you may not get the opportunity to negotiate because you may experience low activity levels.

Remember the realtors showing your home are working for their buyers, they will not necessarily show overpriced listings without forewarning their clients or they may not show it at all. Your property may be competing with superior homes that are well priced.

Most buyers have a specific price range in mind. Potential buyers may miss seeing your home, while looking in a lower price range.

The initial few groups of purchasers through your home will be the pent up demand, those buyers who have seen everything else on the market and now shop just the new listings. They will be "educated" as to what market value is and they may refrain from making an offer because you are priced too high. In the initial stages of a listing the buyers will assume you are firm in your asking price. Remember these buyers are ready to act if they see what they want at the price they are willing to pay.

It is critical that your home looks its best every time you show it. In some cases that means extra cleaning, often on short notice, then vacating the home for potential buyers to have a thorough look around. No one wants to do this any more than necessary. Price it right and you eliminate the potential of extra time on the market. I promise the thrill of having a perfectly clean house wears off quickly as we fight with our children to keep it that way, week after week.

When showing your home always open the blinds and turn on all the lights, if it is convenient, so your home looks as bright as possible, then the realtor does not have to fumble looking for the light switches. Professional realtors are trained to shut the lights out for you on their way out.

First impressions are critical to the sale of your home. If their first impression is "the price is too high" that sticks with them. If they see items that require simple maintenance they may jump to the conclusion that many other items have been neglected too.

 

Preparing to Show Your Home to Potential Buyers

First impressions are lasting impressions. You will want to make sure that buyers looking at your home are left with the best possible impression. Your Century 21 Real Estate Professional can help you achieve that goal.

Exterior:

  • House exterior in good repair
  • House number easy to read
  • Eaves troughs, down spouts and soffits in good repair
  • Garage/car port clean and tidy
  • Litter picked up
  • Cracked or broken window panes replaced
  • Lawns and hedges cut and trimmed, garden weeded and edged
  • Walks shoveled and salted
  • Boot tray inside front door
  • Doorbell and door hardware in good repair
  • Porch and foyer clean and tidy

Interior:

  • Chipped plaster and paint touched-up and repaired
  • Doors and cupboards properly closed
  • Leaky taps and toilets repaired
  • Burned out light bulbs replaced
  • Squeaky doors oiled
  • Mirrors, fixtures and taps cleaned and polished
  • Seals around tubs and basins in good repair
  • Floors cleaned , garbage containers emptied
  • Inside of closets and cupboards neat and tidy
  • Appliances cleaned
  • Countertops neat and polished
  • All lights turned on
  • Air conditioner turned on in warm weather
  • Fresh air in house
  • Fireplace lit in cooler weather
  • Halls and stairs cleaned
  • Drapes opened during daylight
  • Carpets freshly vacuumed
  • Fresh flowers in various rooms
  • Jewelry and valuables locked safely away or taken with you
  • Valuable property, such as objects of art, vases and figurines out of reach, out of sight, or locked away
  • Pets absent, where possible, or contained during the showing, and litter boxes clean

 

The Major Elements of an Offer

1. Price

Depends on the market and the buyer, but generally, the price offered is different from the asking price.

2. Deposit

The deposit shows the buyer's good faith and will be applied against the purchase price of the home when the sale closes. Your Century 21 Real Estate Professional can advise you on the suitability of the amount of the deposit being offered.

3. Terms

Includes the total price the buyer is offering as well as the financing details. The buyer may be arranging his/her own financing or may ask to assume your existing mortgage if you have an attractive rate.

4. Conditions

These might include "subject to home inspection" "subject to the buyer obtaining financing" or "subject to the sale of the purchaser's property"

5. Inclusions and Exclusions

These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors. Never assume something is included with the home unless you list it as a chattel. 

6. Closing or Possession Date

Generally, the day the title of the property is transferred to the buyer and funds are received by the seller, unless otherwise specified.

KIDS AND MOVING

How to reduce the trauma of moving

Nothing is more frightening to a child than the unknown. That’s why "moving away" can be a scary thought. With your help, moving can be turned into an adventure. And if your child’s attitude is one of eager anticipation rather than fear, relocating will be much easier for you too.

  • Explain the ABC’s of moving. One of the best ways to overcome children’s fears of open communication from the start. Young children have no idea what it means to move. It’s helpful to take them on a visual tour of the new area. When you break the news, have on hand maps, brochures, and information about the new are. Tell them about recreation areas, places of interest, schools, etc. If possible bring children along on the house- hunting trip so they know what to expect.

  • Stay upbeat. Children tend to mirror their parent’s emotions. Make sure you schedule family time so that the kids don’t feel forgotten during this busy time. Listen carefully to their concerns and respond honestly.
  • Involve them in planning and packing their stuff. To a small child, the world is made up of possessions. Assure children that most of their world is moving, too. Have children pack as much of their own stuff as possible. Give them special boxes to pack favorite things in. Label the boxes, "Jamie’s stuff." Remind them: when the family gets to the new home, all their things in boxes will go right into their new rooms.
  • Saying Goodbye. Children, like adults, need closure. Help them prepare by creating a memory book. Take pictures of friends, favorite places and family members in favorite rooms of your home. Also, together plan a going away party. Make cards with the address of the new home to hand out to friends at the party. Invite them to visit when they can. Reassure your children they will be able to call write and e-mail their friends.
  • When you first get there. Set the children’s rooms up first. Make them feel at home with their "stuff". Try to keep their schedules as normal as possible for extra security. Help them find children in the neighborhood. Consider signing up for some activities to help them meet friends with common interests.
  • Relax!! Kids are fairly resilient, even if at first it seems they’ll never forgive you for moving. In time, they will, often sooner than you’d expect. It’s not always easy for parents, themselves under moving stress to respond with patience and warmth, but these efforts are rewarded.

TEENS UPROOTED

Here’s how to help your teenager survive a family move. 

What every parent needs to know about teens, moving and survival:
  • Recognize the hardship perceived by your teen. Realize the seriousness of your teen’s thoughts and feelings. Leaving friends may seem an unbearable tragedy. Moving may seem to take control of their lives out of their hands.

  • Listen and talk. Answer all the "why’s". Meet anger with as much calm understanding as possible – try some humor, despite the stress you’re under too. Emphasize "We’re in this together."
  • Include your teen in resettling plans. If possible, let your teen come with you on home finding expeditions. The house choice may focus in part on a school that best meets your teen’s interests. Tour schools, parks, social and athletic centers, shopping malls, and libraries. Turn the Great Unknown into the Great New Beginning.
  • Re-establish key connections before moving. Armed with information from brochures, newspapers, schools, etc. , encourage your teens to find new contacts for their interests before moving day. Help an ice skater find a new rink. Help a musician find a new teacher. Follow up leads to other young people who share your teen’s interest.
  • Make the school transition as smooth as possible. Before moving, contact the new school for accurate information on transfer of credits, timing of registration, deadlines for joining team sports or dramatic, music or dance groups.
  • Consider the timing of your move. There are pros and cons to both mid-school year moves and vacation moves. Moving during summer vacation is most common. It allows teens to finish the academic year without needing to adapt to a different curriculum mid-year. The downside of a summer is the summer itself-long, possibly lonely months spent missing friends and dreading the first day of school. School-year moving has special advantages. An early fall move allows teens to make new friends quickly, before solid cliques have formed. Experts find new kids are often a welcome "novelty" during the spring and friendships can grow. This may make summer holidays much more enjoyable.