1. Failure to effectively market the property

Good marketing distinguishes your home from hundreds of others on the market, selling its benefits not just its features. Open houses and print advertising (the most obvious) are only moderately effective. Only 1% of homes are sold at open houses, and just 3% of people purchased their homes after seeing a print ad! Your Realtor© should be using other methods as well to attract prospects. Ask your sales professional to provide a list of things they will do to market your home.

2. Basing your asking price on needs or emotion not market value.

Many sellers base their pricing on what is termed as Subjective Value. To an appraiser, subjective value is based on emotions. For example, how much a seller paid for their home, how much they love their home, and overall pride of ownership is considered subjective value. Objective Value, is what ALL appraisers base the true value of a property.

Setting the asking price of a property should always be based on Market Value. Appraisers call this objective value. Objective value looks at the condition of the property; it’s location, what properties with similar features in the same area are selling for, what other properties in the same area are listed for, and the overall condition of the economy and real estate market.

If your home is not priced competitively, homebuyers will prefer larger or better homes in the same price range, increasing your time-to-sell. When your price is later lowered, buyers may be wary because they suspect other reasons the house has remained unsold so long.

3. Failing to “present” the home

A property that is not clean or well maintained often suggests hidden defects that increase the total cost of ownership. Sellers should make necessary repairs, and spruce up the house inside and out, keep it clean and neat, or risk chasing away buyers brought in by realtors. Buyers will leave themselves a large margin for error for the cost of repairs, reducing their offer price. As a home sellers you may also take the services of Home Stager professionals.

4. Over-improving your home before you sell it

Most buyers will base their decision on purchasing a home based on how they feel about the kitchen and bathrooms. If these areas of the home meet both their emotional and physical needs it makes it easier to sell a home. It is a good idea to get a real estate professional to do a market assessment of what your home is worth BEFORE improvements. The next step would be to get a written estimate for improvement costs; then have your real estate professional give you an update on the market value to determine how much more money your home will sell for AFTER improvements are made. This will let you know whether it makes sense to upgrade your home first, then put it on the market, or to just put it on the market for sale the way it is.

Sellers may spend thousands of dollars doing the wrong upgrades to their home prior selling, expecting to recoup this cost. If you are thinking of selling, ask your Mississauga Remax real estate agent Gyanesh ‘Rana’ which upgrades are cost effective. Typically the most important and saleable areas of any home are the kitchen and bathrooms.

5. Choosing the wrong Realtor© or choosing for the wrong reasons

Many homeowners list with the agent who tells them the highest price, or a popular Real Estate company in the area. Remember it is NOT the sign that sells a home it is the real estate sales agent. Sellers should always choose the sales agent who will be most committed to you and the one the seller thinks has the best negotiating skills. More negotiating skills could mean a higher price at the negotiating table, selling in less time, and with less hassles along the way.

6. Failing to take the first offer seriously

Many sellers believe that the first offer received will be one of many to come, hoping to hold out for a higher price, especially if the offer comes in soon after the home is listed. Often the first offer ends up being the best buyer, and many sellers have had to accept far less money than the initial offer much later on in the selling process. The first 2 weeks of the listing term is critical. It is this time that the home will usually get MOST of its action. Do NOT let how quickly the offer came in determine your decision to accept it or not.

7. Using the “Hard Sell” during showings.

Buying a home is an emotional decision, and buyers are looking to see if a house is comfortable for them. Good Realtors© let the buyers discover the home’s features on their own, pointing out only features they are sure are important to them. Overselling your home during showings make buyers think they are paying for features that are not important to them and can lose the sale.

8. Not knowing your rights and obligations

The contract you sign to sell (The Listing Agreement) your property is a complex and a legally binding document. An improperly written contract can allow the purchaser to void the sale, or cost you thousands of unnecessary dollars. Have your Realtor© fully explain the contract or have your lawyer review it before acceptance.

BUYING A NEW HOME FOR THE FIRST TIME?

Being a first time home buyer doesn’t have to be hard.

Buying your first home can be a very exciting time! With tons of things to know and learn however, it can seem overwhelming. Which is why The RE/MAX Team at Real Value Home is doing our very best to simplify the whole process. What you want to know, what you need to know, and perhaps a few things you’ve never even considered. Browse through our simple step by step: 8 steps home buyers guide. In fact what you need is: face to face and Free consultation by experienced and professional real estate agents to understand the step by step process, different types homes and type of home options available to you within your price range. Fortunately world’s best known company and brand RE/MAX offers such totally FREE First Time Home Buyer Class from their Mississauga office for all areas of Greater Toronto area, Durham region, Halton and Hamilton region in Ontario Canada.

Neighborhood and Type of House?

What neighborhood you’re interested in? Single detached or townhome? Square footage and upgrade packages? If you’ve never purchased a home before these are things you may never even know you had to think about.

Where do you want to live?

It may sound like a simple question but it seems to be the most obvious: where do you want to live? Consider the city’s convenience versus more relaxed rural settings. Suburbs versus downtown. As a rule, considering the needs of your family is the best way to decide where to live. In fact, a recent study by found that 90% of first-time buyers settled on the neighborhood where they wanted to live before choosing the actual home they wanted to buy.

What type of home to buy?

Once you know where you want to live you need to decide what you want to live in. Detached, semi-detached, townhome, condo? Semi-detached homes or townhomes are usually less expensive than comparably sized detached single family dwelling. If having neighbors close to you are OK then this is perfect. If you prefer a little more space to call your own however perhaps a detached home would be more to your liking. Condos are great if you’re looking for extensive fitness and social amenities but remember, you pay for them in the initial cost and in the monthly condo fees, whether you use them or not.

Figuring out what you can afford

The easiest way is to figure out what you can afford is by examining your income, expenses, investments, savings and debt. When you do that, try to keep in mind inevitable expenses such as a wedding, new car, etc., etc.) And always keep a little extra for items such as legal fees, real estate agent fees, land transfer fees, and mortgage insurance to name but a few.

A professional and experienced real estate agent may help you to calculate these numbers and connect you with suitable lenders and mortgage professionals to find out as how much mortgage / Loan you may get. That will finally determine you’re your home purchase price range.

May I withdraw money for down payment for my first home purchase in Canada from my Registered Retirement Savings Plan (RRSP) ?

Yes, This program simply allows prospective homebuyers to borrow money from their own RRSP’s to buy a home. Similar to a loan this money must be paid back within a specified time frame. You must be an RRSP holder, a resident of Canada and a first-time homebuyer to qualify. The plan allows you to withdraw up to $35,000.00 tax free from your RRSP to purchase your home, provided it is paid back within 15 years. If these funds are going to be used for a down payment they must have been deposited at least 90 days before you sign your agreement of purchase and sale.

If me and my spouse both qualify to participate or Withdraw under the HBP?

Yes, each of you may withdraw up to $35,000 from your own RRSPs for a combined maximum withdrawal of $70,000. You can make a single withdrawal or a series of withdrawals in the same calendar year.

Home Buyers’ Plan (HBP)

To help you come up with a down payment, you may be eligible for the HBP. The HBP allows you to withdraw up to $35,000, tax-free, from your Registered Retirement Savings Plan (RRSP). You must use this amount to buy or build a qualifying home. You have up to 15 years to repay the amounts you withdraw.

Find out if you’re eligible and how to participate in the HBP.

CMHC (mortgage insurance)

Many first-time buyers face unique financial challenges along the way. We know saving up for a down payment in these expensive times can be difficult, and every penny counts. Luckily there are a variety of programs available from both the provincial and federal governments to help simplify and make the process much easier.

If your down Payment is less then 20% you are required to pay for lender’s insurance offered by CMHC and other agencies. There are slab rates for such insurance that is if you are putting 5%, 10%, 15% or less then 20%. Such one time insurance fee will be added to your loan amount to be paid within the amortization period of 25 Years. Check this link for CMHC mortgage loan insurance premium calculator.

Home land transfer tax refund

This program applies to newly-built or Re sale (Old) homes and gives eligible purchasers a refund of their land transfer tax based on the purchase price of their home. To be eligible, you and your spouse must be first-time home buyers.

The Province of Ontario in Canada has doubled the maximum refund better known as rebate for first-time homebuyers from $2,000 to $4,000, effective January 1, 2017.

For more information, ask at your The Team at Real Value Home Sales Office or contact the Ontario Ministry of Finance 1-800-263-7965

WE AT REAL VALUE HOME ARE HERE TO HELP

Whatever home you choose, whichever route you take, buying a new home is one of the most exciting and dynamic experiences of your life. So have fun and remember if you have any questions, the experts Gyanesh and his team at Real Value Home are just a phone call away!

The renovation loan grant offers financial assistance to low-income households who own and occupy substandard housing to enable them to repair their dwellings to a minimum level of health and safety. It is called the Residential Rehabilitation Assistance Program (RRAP).

Who is eligible?

Homeowners may apply for renovation loan grants if, the value of their house is below a specified figure; and their household income is at or below established ceilings (limits) based on household size and area.

Properties must be lacking basic facilities or require major repair in one or more of five categories: structural; electrical; plumbing; heating; fire safety. Assistance may also be available to alleviate overcrowding. Other criteria may be applicable. Consult CMHC Canada Mortgage Housing Corporations.

Ask your Area CMHC Consultant what assistance is available for your situation?

The maximum renovation loan grants are available vary according to the three geographic zones. Additional assistance may be available in areas defined as remote. Maximum Total Loan Maximum Forgiveness

Zone 1:

Southern areas of Canada
Maximum Loan amount $18,000
Maximum Loan Forgiveness $12,000

Zone 2:

Northern areas of Canada $21,000
Maximum Loan Forgiveness $14,000

Zone 3:

Far northern areas, Northwest Territories, Yukon, Labrador and northern Quebec
Maximum Loan Amount $27,000
Maximum Loan Forgiveness $18,000

IMPORTANT:

Work carried out before the loan is approved in writing is not eligible for funding under this program.
Other CMHC programs are available to assist eligible Canadians with repairs to substandard housing, housing modifications and adaptions for persons with disabilities and seniors.

In some areas of Canada, the Government of Canada, and the provincial or territorial government provide funding for these or similar programs jointly. In these areas, the provincial or territorial housing agency may be responsible for delivery of the programs. Program variations may also exist in these areas.

Buyer Representation Agreement for Mississauga, Brampton, Greater Toronto Area Home Buyers

Thinking of buying a home or property in Brampton, Mississauga, Toronto area in Ontario, Canada ?

New or Resale…You need a Buyer’s Representative. A Real Estate Agent to represent you.

You as a Buyer should be aware of your options so that you are better able to protect your position in a Real Estate deal/transaction. The role of a Real Estate Agent has been undergoing tremendous change over the past several years. Prior to 1995, all Real Estate Agents worked for the Seller in a Real Estate transaction. A buyer can now choose to retain representation with a Licensed Real Estate Agent and receive the same legal relationship that Sellers have received for nearly 100 years. Buyers may sign an agreement with the Real Estate Agent known as“Buyer Representation Agreement”. This is basically an Authority for Purchase or Lease.

A buyer who understands their options will typically want to select their Real Estate representative EARLY in the transaction in order to avoid potential conflicts of interest should they be making many calls to various Realtors (typically listing sales representatives representing the Seller) or if shopping New Home sites (representatives are not necessarily licensed Real Estate Agents – thereby having no accountability to the Buyer through RECO* or REBBA**).

The careful selection of a committed Real Estate Agent to represent your interests in the acquisition of property may play a vital role in buying right property at right price. A skilled Buyers sales representative will add tremendous value to the buyer during Home, Property search, drafting of the contract, during negotiations, and overseeing the contract to completion.

Buying your dream home is an important decision. You must spend some time to find a smart and committed Real Estate Agent in Mississauga, Brampton, Toronto area to help make it all happen?

As a home / property buyer in Ontario, Canada we may explain you your rights.

While buying a home, anything you say while un-represented could be used against you during negotiations;

You have the legal right to be REPRESENTED.

If you choose NOT to be represented; Then all Realtors will work on behalf of the Seller during negotiations.

What is a “Buyer Representation Agreement”

Guaranteeing You the Very Best in Real Estate Service

When it comes to just about every kind of contract, signing on the dotted line makes us all a little bit nervous.
When selling a home, most people are aware they sign a Listing Agreement with a REALTOR®. There is, however, an agreement that REALTORS® are now asking their home-buying clients to sign. It’s an agreement that works in favour of buyers, guaranteeing the very best in real estate service.

The Real Estate Council of Ontario (RECO), a public agency formed to protect consumers and regulate the industry, introduced guiding principles mandating that REALTORS® ask their clients to sign a Written Representation Agreement at the earliest possible time.

When choosing representation, homebuyers have the option to sign either a Buyer Representation Agreement or a Buyer Customer Service Agreement.

The Buyer Representation Agreement signifies that for a designated period of time, the buyer has engaged a specific REALTOR® firm to work exclusively on his or her behalf at finding a property. The agreement confirms the REALTOR®’s commitment to make his or her best efforts for the buyer.

By comparision, signing the Buyer Customer Service Agreement the buyer acknowledges the Broker has provided him/her with written information explaining agency relationships including Seller Representation, Sub-Agency, Buyer Representation, Multiple Representation and Customer Service.

The term REALTOR® in Canada is designated to those who have chosen to belong to local, provincial and national real estate associations, agreeing to adhere to a strict code of professional standards that ensures the highest levels of service and integrity. In Toronto, local REALTORS® belong to the Toronto Real Estate Board, Canada’s largest real estate board, serving more than 24,000 Members.

Make the Right Move. Consult Gyanesh, REALTOR® of Toronto Real Estate Board.

To find out more, please feel free to contact me, or book a complimentary private consultation to discuss your Real Estate Goals.

My services are guaranteed to ensure your complete satisfaction!

RECO*      – Stands for Real Estate Council of Ontario.
REBBA**  – Stands for Real Estate Business Brokerage Act.