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Kat’s Blog
HOW TO AVOID A STALE LISTING

By Kat Anderson

Recently I got a call from one of my relatives asking me for advise on their friend’s home sale. The home in question has been on the market in a great neighbourhood for over two weeks with no offers. After checking on their listing, I’ve decided to share some insights on how to prevent a listing from going stale.

In today’s Toronto market, most of the average priced listings sell within two to three weeks time. If your home has been on the market for over three weeks with no offer, you should ask yourself what’s gone wrong and what can be done?

Timing is always of the essence in real estate, so if your listing is becoming stale, don’t delay to remedy the situation. The general rule is, the longer your home is on the market, the less return you will get.

Also, the longer your home is on the market, the more challenging it will be to overcome the buyers’ perception that there is something wrong with your house.

There are number of things you can do to minimize the chances of your listing becoming stale:

• Discuss what happens if your home doesn’t sell in the expected time frame with your realtor BEFORE signing a listing.

• Your listing needs to make the most impact within the first week, so your realtor should have a great marketing plan for the sale of your property. All of the marketing materials, such as photographs, virtual tour, feature sheets, web ads, etc. must be of the top quality.

• Pricing your home right is the most crucial point of the listing process that will ensure a timely sale. Overpriced properties serve as a great backdrop for reasonably priced competition. You don’t want to have people dropping in just to compare your home to the listing around the corner that they are planning to offer on. Discuss the conditions of the current market with your realtor before the release of your listing. That includes examining the most comparable sales from your area as well as the current competition.

• Monitor the market conditions with the help of your realtor everyday to make sure your price is aligned with your home’s market value.

• Cancelling your listing is a good strategy if your home doesn’t sell within a reasonable timeframe. Buyers, as well as their realtors hunt for new listings with great enthusiasm, and they quite frequently forego checking on the history. Renewing your listing will also eliminate the “days on the market” data that makes the listing look old.

Please feel free to contact me with any concerns for an honest, no obligation opinion. The correct price of your home is the highest price the market will bear, and I’m always ready to deliver a quick, flawless sale.

Kat Anderson

www.katadnerson.ca

Leslieville real estate market

By Kat Anderson

I’ve been a resident of Leslieville for over 10 years. When I moved to the area in 2003, the New York Times named Leslieville the “new Queen West”. Back then it was hard to believe looking at the old mom-and pop stores, pawn shops, and seedy bars. The transition process took a few years to make a visible difference.

In the past 7 years, the property values in Leslieville have spiked. The average price for a detached home is over  $690,000 and prices for semi-detached homes are not far away at $670,000 average. Check out the chart below that demonstrates the steady climb in prices from 2006 to this year.

Leslieville-Home-Prices

Condo developments have been making their way in along Carlaw, Gerrard and Queen St. The latest and most exciting news is the sale of the old Broadview hotel to the Streetcar Developments. The long-running Jilly’s strip club will be closing and vacating the premises by August.

Broadvie Hotel

Hip urbanites are moving in and spurring the demand for trendy commercial establishments, such as yoga studios, cafes, gourmet/health food stores, flower shops as well as bars, chic restaurants and art galleries.

I’m proud of my vibrant neighbourhood, and I’d be thrilled to introduce you to the ever changing Leslieville real estate market.

Leslieville02

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Financing Your Home Purchase

Before you start shopping for a home, you should meet with your mortgage advisor or a banker to find out how much financing you qualify for.

The deposit amount that you saved to make your home purchase might differ from the amount of down payment required by your financial institution to secure your mortgage.

Once you know how much you can afford, it is a good idea to shop around to secure the best rate and terms of the mortgage.

Before getting into a binding contract of Purchase and Sale and submitting your hard earned deposit, make sure you have a letter of pre-approval from your financial institution.

The Agreement of Purchase and Sale is a binding contract. Once you sign into it, you can be liable to the other party for either specific performance or damages.

Make sure you have a financing condition in your Agreement of Purchase and Sale that would allow you a few days to confirm your financing. Most financial institutions will confirm your mortgage only after you provide a copy of your Agreement of Purchase and Sale.

Pre-construction financing should be planned and confirmed in advance. Some of the banks will secure the rates and pre-approvals until your closing date, as long as there are no changes in your financial situation. Always have a good back-up plan for closing in case your financial position changes.

By Kat Anderson

Why use a realtor when buying a pre-construction unit?

• It doesn’t cost you anything. Your realtor will receive a commission from the builder, if you decide to purchase a unit.

• Your realtor will provide you with market research on comparable developments and resale/rent prices in the area you’re buying. That will help you to make and informative decision about your investment.

• Salespeople working at the pre-construction sales office are working for the builder, hence they represent builder’s interests, not yours. You should hire a realtor to represent your interests.

• Realtors usually get first access to builder’s sales before sales open to public. The best time to buy is during Platinum and VIP agents’ sales because they usually offer better pricing, incentives and fresh inventory.

• If you hire a realtor experienced in pre-construction sales, your agent can discover more information about the development by asking the right questions, such as assignment fees, caps on development charges, occupancy terms, taxes, rebates, etc.

• Although builders prices are non-negotiable, your realtor will be there to negotiate better terms and finalize the contract on your behalf.

• A realtor can help you find a buyer for your unit by way of an assignment if you need to sell before your new condo is registered to your name. They can also rent the unit for you, if you decide to keep it as an investment.

I’ve bought and sold a great number of pre-construction units in downtown Toronto. So if you’re considering a purchase, please give me a call.

By Kat Anderson

 

For Sale By Owner (FSBO) – What Are You Really Saving?

If you are considering selling your home yourself, your goal is to save yourself money.

However, it is important that you understand how real estate fees are calculated before you make the decision to proceed without an agent.

An agency listing representation commission consists of both a listing and a cooperating fee. So, even if you decide to go the For Sale By Owner (FSBO) route you will most likely still have to pay the cooperating fee (2.5% standard) to attract a potential buyer.

Most qualified buyers are under contract with a buying agent. These buyers have already agreed to pay their agent the cooperating fee. So by not offering the cooperating fee, you pass that cost to the buyer, which makes your home less attractive.

I would never advise to withhold the cooperating (buying agent) fee, because you might end up waiting for a buyer who is not represented by an agent — that might take sometime. Also without a cooperating fee, agents may ignore your listing.

If you wisely decide to offer a cooperating fee, the only part you will be saving is the listing fee. But, how much will you really save?

For instance, you will be taking on many jobs including: photography, videography, marketing, promotion, market research, hosting open houses, keeping track of your visitors and their feedback, reviewing and negotiating the contracts, dealing with home inspections, amendments and other possible offer conditions.

On top of all the work you still will have to pay additional fees to your lawyer to review your deal, make deposits to a trust account, and implement any changes to the contract. That might get costly, since the lawyers will charge for every amendment made to your deal.

However, if you hire a listing agent most of these transactions are completed by the agent, including changes to Agreement Of Purchase & Sale and executing amendments.

Also, for most homeowners it is a challenge to be impartial and emotionally detached during the sale of their home. A realtor is trained to handle the complicated negotiations and they know exactly how to close the deal.

In the end, considering that all realtor fees are negotiable, you might find it more economical and less stressful to hire a realtor. You will save time, money and effort, and you will get the best return for your home.

If you considering listing your home, please contact me for a free, non-obligation listing consultation. I would be happy to market and sell your home for a competitive listing fee.

By Kat Anderson

 

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HomeLife/Realty One Ltd.
Real Estate Brokerage*

501 Parliament St. Toronto, ON M4X 1P3

Mobile: 647.225.2426
Business: 416.922.5533
Fax: 416.922.5808
E-mail: kat@katanderson.ca


*Independently owned and operated, REALTOR®

DISCLAIMER: Not intended to solicit currently listed properties or buyers under contract.