Interview Questions To Ask Your Next Realtor

Although there are many other selling options, the majority of Canadians choose to use a real estate agent to sell their home. Most Realtors are qualified, educated, and well versed in contract law. They can also have localized expertise in your neighbourhood or market. It is absolutely critical that the Realtor you choose has the skills to get the job done. Selling a home is not luck. There is a reason why 20% of the Realtor do 80% of the work. There is also a reason why year after year the same Realtors are consistent Top Producers. When interviewing your next Realtor to sell your home here are some questions for you to ask him or her;

* How long have you been selling real estate?

* How many homes did you sell last year?

* Are you a full-time agent?

* Is it the right time to sell?

* Do you work solo or as part of a team?

* How do you price a home?

* For the homes you listed in the past year, what was the average number of days they spent on the market?

* For the just mentioned list of homes, what was the average difference between the listing price and the selling price?

* How do you market the homes you list?

* Do you do any social media marketing?

* How do you use the Internet?

* Do you offer virtual tours of listed homes?

* What websites will you use to advertise the home?

* Do you have a website?

* Do you have a feedback system for potential buyers and their Realtors?

* Before you list a house, do you give clients ideas on how to make their home more marketable?

* When you’ve listed a home, how do you report back to your sellers regarding activity on the property?

* Do you have access to other professionals that clients need during the selling process?

* How do you handle negotiations?

* Do you attend inspections and appraisals after an offer is in place?

* How much do you charge?

* Will I have to pay any hidden costs?

* How accessible are you?

* How does it benefit a client if he uses you to sell?

* Why should someone list with you over other Realtors in the area?

* How much professional training do you get every year?

* If a client is unhappy with your service, can he terminate your contract and the listing?

* Do you have a list of references for potential clients?

* What are your thoughts on the real estate market today?

* What else should a client ask you that he hasn’t already asked?

This is just a start, but hopefully it will help you in interviewing Realtors better. Good luck,

Is buying a condo for your college student a good idea?

Sometimes a parent decides to buy a place for their children while they hit the books in university or college. It can be a good alternative to paying thousands of dollars toward residence fees or rent. Just look at the math:

Student rent of $500 a month = $6,000 a year = $24,000 over 4 years of school.

That money could go to your mortgage instead as an investment for you.

In Ottawa, for example, you can buy an older one-bedroom condo for about $195,000. Or, buy a 2-bedroom for $240,000 and let your child’s roommate help cover the mortgage by paying rent. Let’s assume you pay 20 per cent down. Here’s an example of what your monthly costs could total when morgage rates are low:

Cost	1 Bedroom	2 Bedroom
Mortgage payment	$800	$1,000
Condo fees	$350	$450
Property taxes, maintenance	$300	$400
Total	$1,450	$1,850

Think about it: if your child rents a place, your money is helping the landlord pay his or her mortgage and other costs. If you buy a place instead and rent it to them, you have a real estate investment with a guaranteed tenant: your child. If the investment goes up in value, you will make money. Just remember that those gains will be taxed.

Also remember, mortgage rates and other costs change, and these changes will impact the numbers and your decision.

Things to consider before you decide:

You can buy the property in your name, in your child’s name, or both. If you buy the property in your name, you should consider:

• The rental income you charge can pay a lot of your costs. Just remember you have to declare that income on your tax return.
• As a landlord, you can also claim many of your expenses, including mortgage interest. Assess your costs carefully before you buy. They will vary with the local real estate market, mortgage rates and other factors.
• Plan for some vacancies. Your child (or their roommate) may not stay in the condo over the summer break. Are you really going to ask them to pay rent if they are living somewhere else for a few months?
• Remember that you will own a greater share of the equity as you pay off the mortgage. And, the value of the condo may rise over time. This can offset your costs. But whether you do more than break even depends on what happens to housing prices in the area.

There are other benefits, too. Your child won't need to look for a different place to live each year. They also won’t have to worry about subletting every summer. And their furniture won’t be coming back with them if they live at home over the summer break. Not a bad deal.

Remember: you may not make money if you buy a student condo.

But there are other reasons you may decide to go ahead. At the very least, you can provide your child with a nice place to live in a good neighbourhood while they go to school.

Calgary Housing Update

CALGARY’S HOUSING MARKET SET TO OUTPACE 2010

Several Calgary Communities Get a Boost in Sales and Price

Calgary, November 1, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), Calgary residential sales totaled 16,184 after the first 10 months of the year, an increase of eight per cent over last year.

Over 61 per cent of Calgary’s established communities saw increased sales levels compared to last year. Garrison Woods, Collingwood and Mahogany saw the largest sales increase at 170 per cent combined; nearly half of all Calgary communities recorded price increases, with Shaganappi, Chinook Park and Downtown leading the way with a combined average price increase of 55 per cent.

Top 10 Established Communities
Price Increases	%Change	Sale Increases	%Change
Shaganappi-025	139.58%	Collingwood-418	220.00%
Chinook Park-117	34.02%	Mahogany-375	150.00%
Downtown-001	33.63%	Mayfair-111	100.00%
Elboya-103	32.61%	Roxboro-100	100.00%
Scarboro-011	31.63%	Vista Heights-605	88.89%
Lower Mount Royal-010	28.00%	Hanson Ranch-517	85.00%
St Andrews Heights-413	23.22%	Sage Hill-526	84.00%
Lakeview Village-033	21.31%	Shawnee Slopes_Evergreen Est-151	79.59%
Windsor Park-107	21.14%	North Haven-500	78.57%
Rosedale-406	21.06%	Pump Hill-131	77.78%

“A boost in full time jobs throughout the year is gradually translating into improved sales in the real estate sector,” says Sano Stante, president of CREB®. “Consumers are taking advantage of price stability and a healthy variety of selection. While these gains are moderate, we are set to outpace 2010 sales.”

Single family home sales totaled 988 for the month of October 2011, an 11 per cent increase over October 2010, but continue to remain well below historical levels. Year-to-date sales totaled 11,503, a 10 per cent increase over last year.

October listings have edged upwards over last year’s levels, increasing by nearly two per cent, but year-to-date there are six per cent less listings than levels recorded last year.

“Consumers are feeling more confident about the local real estate market,” adds Stante.

The average price of single family homes for the month of October 2011 was $455,399, while the median price was $395,000, an increase of two per cent compared to last year. This is primarily due to the rise in the number of luxury homes sales. Despite the monthly price increase, however, year-to-date figures remained stable at levels comparable to the previous year.

Condominium sales for the first 10 months of the year totaled 4,681, a three per cent rise over the same period last year. Inventory levels remained at 1,935 units, resulting in months of supply pushing above five months.

“The condominium market has significantly tightened compared to last year, however, moving into winter, we expect to see a rise in months of supply,” Stante says.

Condominium year-to-date average and median prices in 2011 were $288,736 and $262,500, respectively, a slight decline over the first 10 months of 2010. The decline is mostly due to increased sales in units priced under $200,000.

“Overall, the resale housing market continues to show signs of improvement and, with no near term change in interest rates, we can expect the market will continue to see moderate and stable growth throughout the rest of the year,” Stante concludes.

INNER CITY HOUSING MARKET LEADS IN SALES

Calgary, June 1, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), year-to-date residential sales in the inner city grew nearly 4 per cent, outperforming the city wide average. City of Calgary residential sales totaled 1,816 in May 2011, a 2 per cent increase in volume over May 2010. However, slower early spring sales resulted in the overall year-to-date sales being 3 per cent lower than the 2010 spring market.

As the city grows, improvements in the inner city communities are consistent with changing preferences in lifestyle options.

“Consumers are looking for shorter commute times to work and easy access to a wider range of services provided by these inner city communities,” says Sano Stante, president of CREB®.

“Many of these communities are surrounded by abundant amenities such as parks, mature trees, diverse shopping and transit which appeals to a wide range of consumers; furthermore, inner city homes can be considered a stable real estate investment, as there is significant value in land located near the city’s core.”

The average price for single family homes in May 2011 was $489,482 and the median price $423,000, comparable to levels recorded last year. Single family home sales were 1,313 in May 2011, a 5 per cent increase over last year, while 2,552 listings came to market, a 14 per cent decline over the same period last year.

The decline in listings has caused inventory levels to come down to 4,616 units, an 18 per cent decline from last year. Moderate sales and a reduction in inventory have resulted in a decline in months of supply compared to May 2010.

To date, the single family market has fared better than the condominium market, as prices have come down from peak levels recorded in 2007 providing individuals more options with regard to home ownership, noted Stante. After the first five months of the year, single family home sales were 5,835 units, consistent with sales levels during the same time frame last year.

“With just under four months supply, we expect single family home prices to remain stable in the coming months,” says Stante. “Provided that interest rates remain moderated, we are positive about the near term stability and recovery in the Calgary real estate market.”

“While condominiums continue to experience some decline in sales and prices, the rate of decline seems to be easing, indicating signs of improvement in this market” adds Stante.

The inventory of condominiums continues to remain higher than average, but has declined by 21 per cent from levels recorded in May 2010.

Condominium sales were 503 for May 2011, 3 per cent lower than last year’s figures. Year-to-date condominium sales are 11 per cent lower than last year’s levels, however, listings have declined by 19 per cent as well over the same time frame, placing downward pressure on inventories.

“Full time employment growth has been sluggish in Calgary, with only notable improvements occurring in April,” says Stante. “All indications point to the trend that as full-time employment growth takes hold in the later portion of the year, so too will improvements in migration, ultimately translating into improvements in the housing market.

Condition of Property at Possession

One of the most common and frustrating issues for both real estate industry members and lawyers in closing residential real estate transactions is a dispute over the condition of the property on Completion Day. Rarely are buyers entirely happy with the condition and cleanliness of the property when they take possession. While occasionally their concerns are valid, in most cases they are not. In any event, there is not much that lawyers can do to assist buyers in this regard. This column will explain why the Purchase Contract is worded the way it is and what buyers’ representatives can do to protect their clients where specific concerns are identified when writing up the offer.

The condition of the property is addressed in clause 4.2 of the Residential Real Estate Purchase Contract (the “Contract”) as follows;

“When the Buyer obtains possession, the Property will be in substantially the same condition as it was in when this Contract was accepted.”

In addition, clauses 6.1(b) and 6.2 of the Contract require that when possession is granted, all included Attached Goods (fixtures) and Unattached Goods (chattels) be “in normal working order”.

So what does this really mean?

In general, and unless additional terms are inserted in clause 7.6 of the Contract, it means that with the exception of appliances (which have to work), the seller doesn’t have to clean up or repair the property in any way for the buyer. In fact, the words “substantially same condition” imply that some deterioration resulting from normal wear and tear, and the scrapes and blemishes resulting from the moving out process, are acceptable. The seller is certainly not required to paint walls, clean carpets or fix small holes in walls where pictures have been removed.

Even if, contrary to the terms of the Contract, an appliance doesn’t work or more significant damage (such as a broken window) constituting a breach of the “substantially the same condition” obligation is discovered on possession day, the buyer’s lawyer may not be able to refuse to close or otherwise secure compensation for the buyer. In general, the buyer is only entitled to refuse to close if the damage to the property is so major that it would constitute a “material” breach of the agreement. In this case, it is important that the buyer or the buyer’s representative bring these issues to the attention of the buyer’s lawyer quickly. The buyer’s lawyer will communicate the matter to the seller’s lawyer, which will result in one of two possible outcomes:

1. The seller’s lawyer may be able to convince the seller to offer some compensation to the buyer, repair the problem or agree to a monetary holdback until the problem is resolved; or
2. The seller will refuse to take responsibility for the problem, but at least it will be documented that the problem existed at the time of possession which will help the buyers if they choose to prosecute a small claims action for recovery of damages.

Because the problem of not being able to force the issue when the condition of the property is not “substantially the same”, industry members sometimes suggest that a default holdback provision be incorporated in the standard Contract to routinely allow buyers to withhold a predetermined sum (such as $1,000 for example) until the condition of the property is found to be satisfactory. This is not, unfortunately, possible on a practical level. The inevitable result of this provision would be that, rightly or wrongly, buyers would take advantage of the holdback entitlement in almost all cases. Sellers would then have to accept the loss or be forced to sue buyers to receive their full sale proceeds.

Building an early walkthrough or condition inspection provision into the contract is also not a practical solution to the problem. Since damage to the property is only likely to occur when the seller is moving out or only apparent after the furniture is removed from the premises, a walkthrough conducted prior to the seller’s move is virtually useless. It should be mentioned that unless it is specifically written into the Contract, the buyer is not entitled to insist on access to the property in the period between the removal of conditions and possession day.

Although the current Contract could, as a result, appear to be biased in favour of sellers receiving their money from the sale, I always point out to unhappy buyers that the same Contract will protect them for their sale proceeds when it comes time to sell their home in the future.

In cases where a buyer wants the seller to carry out a specific task prior to possession, such as the shampooing of carpets, the removal of car parts from the backyard, or a specific repair to the property, the buyer’s representative has to insert specific additional terms into the Contract in clause 7.6. To be effective, such terms should contain: a firm deadline; a monetary holdback provision if the work is to be completed post closing or an inspection provision if the work is to be done prior to closing; and a term setting out the consequences if the work is not carried out as required.

Courtesy of AREA

Big Ideas

Whether you are looking to sell right away or in a few years, there are several sound renovation investments that are worth the money, according to HGTV real estate expert Heather Unger, a Sales Associate with RE/MAX Central Realty in Lake Mary, Fla.

Here are some tips for potential sellers:

Rev up curb appeal – A green lawn and fresh exterior paint are sure ways to attract potential buyers. Plant colorful flowers or hang flower boxes from windows, repair cracked walkways and choose a neutral, pleasing exterior color to maximize your home’s appeal.

Upgrade the kitchen – This is where you’ll get the best return on your investment. Buyers want granite countertops, stainless steel appliances, modern cabinets and hardware, and updated light fixtures. Think IKEA kitchen: modern and functional. For the average kitchen in a 2,000-square-foot home, you’ll spend $8,000 or more for basic upgrades.

Redo the bathrooms – After kitchens, bathrooms are the next places to get the best bang for your buck. Granite countertops, modern faucets and light fixtures and tile floors are popular with buyers. The more you can do yourself, the more money you’ll save. Expect to spend about $3,000 or more. You can save even more by buying store floor models for sinks and vanities, or going to granite bone yards for materials.

Add space – If you have the money, consider adding square footage to your home by finishing your basement, expanding the master closet or knocking down some walls to create a more open floor plan.

Economical options

If you don’t have time or a ton of money for major renovations, don’t worry, says Laura Smith, a Sales Associate with RE/MAX First in Baton Rouge, La. A clean, clutter-free home goes a long way for many buyers, says Smith, who has appeared on HGTV’s "Bang for Your Buck."

Here are Smith’s tips:

Make your home smell incredible – Get your air-conditioning unit professionally serviced and cleaned. Most companies charge under $150, and it goes a long way in removing household odors and allergens. Also, use plug-in fresheners and fabric deodorizing sprays.

Steam-clean the carpets – Instead of replacing carpets, call a professional to have them steam-cleaned and watch the transformation! You will be delighted to see that steam cleaning the carpets (price depends on carpet area) is money well spent.

Remove clutter – Check your closets and donate old clothes, shoes or other items that you haven’t used in the past year. Buyers want to see storage space; this goes for the other closets in your home, as well as garages. If you’re having showings, remove all personal photos and clear off all appliances and knickknacks from countertops and display shelving.

Create an outdoor living space – Adding a sense of comfort to your patio, deck or backyard adds value to your home. Stage your patio or deck with a table and chairs, as well as an outdoor rug, lively plants, some colorful flowers or a small fountain. Get rid of unsightly weeds and keep the lawn mowed and presentable.

Good luck,