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Sealing the Deal: The Surprising Key to Homebuying Success

While the art of negotiation is essential in any real estate transaction, some buyers tend to "nickel and dime" during the process. In this blog post, I'll explain why buyers should refrain from this approach and how it can impact their chances of securing their dream home.

Understanding "Nickel and Dime" Negotiations

"Nickel and diming" refers to the practice of excessively haggling over minor details during the offer negotiation stage. It involves requesting numerous small concessions from the seller, often with the intention of reducing the purchase price or gaining additional benefits at the seller's expense. While it's natural for buyers to want the best deal possible, pushing too far can have unintended consequences.

Building a Strong Relationship

In the world of real estate, a successful transaction is often built on trust and a positive relationship between the buyer and seller. When buyers approach negotiations with a "nickel and dime" mentality, it can create tension and strain the relationship with the seller. This, in turn, may lead the seller to favor other potential buyers who are more reasonable and cooperative.

Risking the Deal

Negotiation is a delicate dance, and overzealous demands can easily backfire. A seller who feels like they are being taken advantage of or pushed too hard may become disinterested in negotiating further. They may even reject the buyer's offer altogether, opting to work with another buyer who demonstrates more flexibility and understanding of fair market value.

Losing Out on Value-Adding Opportunities

While focusing on price is important, buyers should also consider the overall value of the property and potential opportunities it presents. By solely concentrating on squeezing the price down, buyers may miss out on potential value-add opportunities, such as including specific items of personal property in the sale, negotiating favorable closing timelines, or getting some repairs covered by the seller.

Reputation Matters

Real estate is a small world, and industry professionals often interact with each other on multiple occasions. Pushing too hard during negotiations can earn a buyer a reputation for being difficult to work with. This could make other agents less enthusiastic about showing them properties or working on their behalf in the future.

Appraisal Complications

Nickel and diming can lead to an offer price that is well below the property's market value. While this may seem advantageous to the buyer, it can backfire during the appraisal process. Appraisers consider recent comparable sales to determine a property's value, and if the offer price is significantly lower than those comparables, it may lead to challenges in securing financing.

Effective Negotiation Strategies

Instead of focusing on nickel and diming, buyers can adopt more effective negotiation strategies:

1. Do Your Research: Understand the local market and recent comparable sales to make a reasonable and competitive offer.

2. Identify Other Negotiation Points: Negotiation is more than just about price. Consider other factors like contingencies, closing dates, and inclusions to create a win-win situation.

3. Be Respectful and Courteous: Maintain a positive and respectful relationship with the seller and their agent throughout the negotiation process.

4. Work with a Skilled Real Estate Agent: Enlist the expertise of an experienced real estate agent who can guide you through negotiations and advocate for your interests professionally.

In conclusion, while negotiation is an essential aspect of buying a home, adopting a "nickel and dime" approach can be counterproductive. By focusing on building positive relationships, recognizing the value of the property, and employing effective negotiation strategies, buyers can increase their chances of securing their dream home without alienating the seller in the process.


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Regina Real Estate: A Snapshot of the Queen City's Property Market in June

In June, the real estate landscape of Regina painted an interesting picture. While the market witnessed a modest deceleration in sales compared to the same month last year, it remained a robust arena for property transactions, well above the ten-year average trends.

Regina reported 367 property sales this June, reflecting a near 10 per cent year-over-year decline. However, it's noteworthy that, despite this marginal dip, the sales volume still hovered over 11 per cent above the long-term decadal trends. This underlines the continued vitality and resilience of Regina's real estate sector, even amid shifting market dynamics.

The month of June also observed a simultaneous contraction in sales and new listings, resulting in inventory levels that mirrored the preceding month's statistics. The inventory in Regina's property market is nearly 30 per cent lower than long-term trends, hitting its lowest level for June since 2014.

With a scant 2.8 months of supply available, the Queen City's current market conditions are the tightest they've been in any June over the past decade. This squeeze in supply is a major contributing factor to escalating property prices. The benchmark property price in Regina reached $318,700 in June, seeing a modest rise from $316,100 in May.

However, when we turn our gaze to the overall average price, the upswing appears to be more noticeable. The average price across the city nudged up to $334,893 in June this year, reflecting an appreciable ascent from $320,084 in June of the previous year.

In summary, despite a minor slowdown in sales, Regina's property market remains active with prices on an upward trajectory. As inventory levels continue to lag behind the long-term trends, buyers and investors should anticipate a further tightening of market conditions and potentially higher prices in the coming months. This underscores the importance of savvy decision-making and strategic planning for those wishing to navigate Regina's real estate landscape successfully.

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Regina Real Estate: Exploring Steady Growth and Affordable Housing Opportunities

Hi, Martin here! In this post, I'll explore the current trends in the Regina housing market, focusing on its steady growth and the availability of affordable housing options. Whether you're a potential buyer or an investor looking for opportunities, Regina offers an attractive market worth considering.

Steady Price Appreciation:
Regina's real estate market has experienced consistent price appreciation over the years. While the rate may vary across different property types and neighborhoods, the overall trend has been positive. This steady growth makes Regina an appealing destination for buyers seeking long-term investment opportunities.

Balanced Market Conditions:
One of the key strengths of Regina's real estate market is its balance between buyers and sellers. This equilibrium creates favorable conditions for both parties, with reasonable time on the market for properties and a fair negotiation environment. The balanced market fosters stability and minimizes price volatility, providing a reliable foundation for investment decisions.

Development and Expansion:
Regina is a city in motion, with ongoing development and expansion projects. This growth not only enhances the city's infrastructure but also creates new opportunities in the real estate market. New residential and commercial projects contribute to the supply of housing options, attracting buyers and investors alike. As the city continues to evolve, it presents a promising landscape for future growth.

Affordable Housing Options:
Regina's real estate market is particularly appealing for buyers seeking affordable housing options. The city has a range of properties that offer excellent value for investment. First-time homeowners, in particular, find Regina an attractive destination due to the availability of affordable housing. With favorable financing conditions and competitive prices, Regina stands out as an ideal place to enter the housing market or expand your investment portfolio.

Conclusion:
Regina's real estate market showcases steady growth, balanced conditions, and affordable housing options. The city's consistent price appreciation, along with its ongoing development and expansion, make it an exciting market to explore. Whether you're a buyer or an investor, Regina offers a range of opportunities worth considering. Stay tuned for more updates on Regina's real estate market, and don't hesitate to contact me or a member of our expert team for personalized guidance on your real estate journey.

Cheers!

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5 Reasons Why High Interest Rates are Your Ticket to Real Estate Investment Success

I know that many people are hesitant to invest in real estate right now, as interest rates are high. However, I believe that this is actually an excellent time to invest in real estate. 

First and foremost, high interest rates can actually be beneficial for real estate investors. When interest rates are high, it means that borrowing money is more expensive. This may seem like a disadvantage, but it actually creates an opportunity for investors to negotiate lower prices on properties. Sellers may be more willing to accept lower offers when interest rates are high, as they may have trouble finding buyers who are willing to pay the higher prices that were more common when interest rates were low.

Additionally, high interest rates can be advantageous for real estate investors because they tend to result in higher rental rates. When borrowing money is more expensive, it means that fewer people are able to purchase homes, which means that more people are likely to rent. This can and has driven up rental rates, which can be very profitable for real estate investors.

Another advantage of investing in real estate right now is that it is a tangible asset that can provide a hedge against inflation. When inflation is high, the value of money decreases, which means that the purchasing power of your cash and other investments may be reduced. However, real estate is a physical asset that can hold its value during times of inflation. Additionally, rental rates tend to increase during times of inflation, which means that real estate can be a good investment to protect against the effects of inflation.

Finally, investing in real estate can provide steady cash flow over time and properties tend to appreciate in value over time, which can provide long-term growth potential. By investing in real estate now, while interest rates are high, you may be able to lock in a lower purchase price and benefit from potential appreciation in the future. Remember, the property is long term, but the rate is not!

In conclusion, while it may seem counterintuitive, investing in real estate right now, while interest rates are high can actually be an advantageous decision. With the potential for lower purchase prices, higher rental rates, protection against inflation, and long-term growth potential, real estate can be an excellent investment opportunity for those willing to take the plunge. 

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Urgent Real Estate News: Why You Need to Buy Now Before it's Too Late!

Dear potential homebuyers,

I have some important news to share with you. As a real estate agent in Saskatchewan, I'm seeing a growing housing shortage that's starting to cause real problems for homebuyers. What does this mean? It means that you need to act fast if you're thinking about buying a home.

Inventory is getting low, and as a result, we're starting to see some pretty steep increases in home prices. Multiple offer situations are becoming more common, and people are getting desperate to find a home they love. It's a tough market out there, and if you don't act soon, you could be left behind.

I'm not trying to scare you, but I do want you to understand the urgency of the situation. The demand for homes is just skyrocketing right now, and there aren't enough good homes to go around. Plus, with interest rates plateauing, more and more people are jumping into the market, driving prices even higher.

The thing is, I don't want you to miss out on your dream home because you waited too long. There's nothing worse than seeing a home you love slip away because someone else put in a higher offer. Trust me, I've seen it happen time and time again.

So, I urge you to take action now. If you're thinking about buying, don't wait any longer. Get in touch with me today and let's start working on finding you the perfect home. I can help you navigate the market, and I promise I'll do everything I can to make the process as easy and stress-free as possible.

This is a challenging market, but don't let that stop you from achieving your dream of homeownership. You deserve a home that you love, and I'm here to help you find it. Let's make this happen together!

Warmest regards,


Martin Blonski

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Higher Rates and Short Supply: The State of Real Estate in 2022

Canada's housing market hit a boiling point last year as homebuyers clambered for real estate in regions with significantly more demand than supply. But now that homeowners and buyers alike are feeling the pinch of rising interest rates and record inflation, the market appears to finally be simmering down.


That, in turn, could create a welcome opening for shoppers to be more selective with their searches. However, buyers hoping for a major downturn in prices may be left disappointed. Although home values in some segments are beginning to sag under the weight of higher borrowing costs, a persistent housing shortage is expected to keep prices high.


Read on for a closer look at some of the top factors impacting Canada's real estate market and how they could affect you. 



RISING MORTGAGE RATES ARE COOLING AN OVERHEATED MARKET

Over the past couple of years, homebuyers have faced record-high price appreciation and intense competition—in part due to historically low mortgage rates that were a result of the Bank of Canada’s efforts to keep the economy afloat during the COVID-19 pandemic.1 


According to the Canadian Real Estate Association (CREA), in 2021, both the number of sales and average home price hit at an all-time high, with demand for new homes far exceeding supply.2 This trend continued through early 2022, despite widespread predictions that the Bank of Canada was gearing up to increase interest rates.3 


But now that the central bank has officially begun pushing its key interest rate back up from emergency levels, the housing market is responding, with the pace of home sales cooling in March and April.4 The Canada Mortgage and Housing Corporation (CMHC) predicts that the housing market will continue to moderate in the coming year.5


The feds plan to keep raising interest rates as necessary to fight inflation, which means target rates could rise by another 1 to 2% or more over the next year.6 That, in turn, will cause both fixed and variable mortgage rates to rise.


As Senior Deputy Governor Carolyn Rogers noted in May: “We need higher rates to moderate demand, including demand in the housing market. Housing price growth is unsustainably strong in Canada.”7


What does it mean for you?

If you’re shopping for a new home, expect mortgage rates to keep rising into 2024.8 So, you’ll need to act fast if you want to get in at a lower rate. However, the cooling effect should make for a less competitive market. We can help you chart the best path.


If you’ve been thinking about selling, higher mortgage rates may shrink your pool of potential buyers, so don’t wait too long to list. And if you are up for a renewal, you should also act quickly or risk paying a higher rate. Contact us to discuss your options.



DEMAND AND PRICES ARE STARTING TO SOFTEN IN SOME SEGMENTS

Nationally, home prices soared a record 26.6% last year, an unsustainable rate of appreciation by any measure.9 But now that the Bank of Canada has put rock-bottom rates in the rear view window, sales have begun to slow.


Soon after the Bank of Canada began raising interest rates in early March, the real estate market responded. According to the CREA, in March, home sales fell by 5.4% on a month-over-month basis and the Aggregate Composite MLS® Home Price Index (HPI) ticked up just 1%, “a marked slowdown from the record 3.5% increase in February.”10  


By April, home sales dropped by another 12.6% over the previous month as homeowners and buyers continued adjusting to higher rates.. “Following a record-breaking couple of years, housing markets in many parts of Canada have cooled off pretty sharply over the last two months, in line with a jump in interest rates and buyer fatigue,” said CREA Chair Jill Oudil. Meanwhile, prices are still rising in some markets, but are sagging in others, causing the HPI to dip in April for the first time since 2020.11


As the Bank of Canada continues pushing up rates, more buyers may give up on their homeownership dreams if they feel too squeezed by the combination of high rates and high prices. Still, many experts say a major downturn in prices is unlikely. That's in part due to the fact that there still aren't enough homes available to meet the demands of a growing population, says CREA CEO Michael Bourque. “The supply of new homes is not even close to keeping up with demographic changes and population growth.”12 As long as housing remains a scarce asset, prices will remain relatively elevated. 


What does it mean for you?

If you’ve been waiting to buy a home, now may be the perfect time to jump in the market. There are deals to be found if you know where to look. But don’t wait too long, or higher mortgage rates will erode any cost savings. We can help you find the best opportunities in today’s market.


For homeowners, the outlook is still bright. Governmental interventions are being put in place to stabilize the market–not crash it. And demand for housing and a strong job market should help protect your investment. 



INVENTORY REMAINS TIGHT 

According to the CMHC, housing starts trended higher in April after a small downturn in March. Overall, new homes are still being built at a faster clip today than in the past, but at a slower pace than we saw in 2021, noted CMHC Chief Economist Bob Dugan.13 Homebuilders are facing a wide range of challenges, including persistent inflation, rising rates, and ongoing labour shortages. 


Increased federal investment could help counteract at least some of those challenges. The federal government recently announced plans to help double the pace of housing construction over the next decade by funding significantly more new and affordable housing. It also announced additional relief measures, including a temporary ban on foreign investment, doubling first-time buyers' tax credit, and halting blind bidding wars.14 


In addition to fewer homes being built, new listings are also down, according to the CREA’s sales report. But a decrease in demand is offsetting the impact in some areas. “A little more than half of local markets were balanced markets…a little less than half were in seller's market territory.”11


What does it mean for you?

While supply remains at historically low levels, even a modest bump in inventory can help take pressure off of buyers. If you’ve had trouble finding a home in the past, give us a call to discuss what we’re currently seeing in your target neighbourhood and price range.


If you’re a homeowner, it’s still a great time to sell and cash out those big equity gains. Contact us to find out how much your home is worth in today’s market.



WE’RE HERE TO GUIDE YOU

While national real estate trends can provide a “big picture” outlook, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighbourhood.


If you’re considering buying or selling a home, contact us now to schedule a free consultation. We can help you assess your options and make the most of this unique real estate landscape.


Sources:

  1. Bank of Canada -
    https://www.bankofcanada.ca/2020/03/press-release-2020-03-27/ 
  2. Global News -
    https://globalnews.ca/news/8516543/canada-home-sales-record-crea/
  3. CBC -
    https://www.cbc.ca/news/business/crea-housing-february-1.6385274 
  4. Canadian Real Estate Association -
    https://www.crea.ca/housing-market-stats/stats/
  5. Canada Mortgage and Housing Corporation - https://www.cmhc-schl.gc.ca/en/media-newsroom/news-releases/2022/housing-markets-moderate-historic-2021-levels 
  6. Bank of Canada -
    https://www.bankofcanada.ca/press/press-releases/ 
  7. Reuters - https://www.reuters.com/world/americas/bank-canada-says-strong-demand-risks-higher-inflation-2022-05-03/ 
  8. Better Dwelling - https://betterdwelling.com/canadian-mortgage-rates-to-surge-demand-will-be-slowest-in-recent-history-moodys/ 
  9. CBC -
    https://www.cbc.ca/news/business/crea-housing-december-1.6317503#
  10. Canadian Real Estate Association - https://www.crea.ca/news/march-home-sales-and-new-listings-ease-back-following-surge-in-february/
  11. Canadian Real Estate Association - https://www.crea.ca/news/home-sales-drop-in-april-as-mortgage-rates-shoot-higher/  
  12. Global News -
    https://globalnews.ca/news/8716412/canada-housing-market-cooling-bubble-interest-rate/
  13. Canada Mortgage and Housing Corporation - https://www.cmhc-schl.gc.ca/en/media-newsroom/news-releases/2022/canadian-housing-starts-trend-higher-april 
  14. Office of the Prime Minister of Canada, Justin Trudeau - https://pm.gc.ca/en/news/news-releases/2022/04/13/helping-young-people-get-housing-market 
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5 Ways to Write a Winning Offer in Today’s Real Estate Market

Our nation is in the midst of a shifting real estate market. But even as the buying frenzy begins to slow, many properties are still receiving multiple offers.1


So what’s the best way to compete as a buyer–especially if you’re wary about overpaying?


While a high offer price gets attention, most sellers consider a variety of factors when evaluating an offer. With that in mind, here are five tactics you can utilize to sweeten your proposal and outshine your competition.


We can help you weigh the risks and benefits of each tactic and craft a compelling offer designed to get you your dream home—without giving away the farm.


1. Demonstrate Solid Financing

The reality is, no one gets paid if a home sale falls through. That’s why sellers (and their listing agents) favour offers with a high probability of closing. 


Sellers particularly love all-cash offers because there’s no chance of financing issues cropping up at the last moment. But all-cash offers are rare, and if sellers are assured that financing will come through, buying with a mortgage doesn’t have to be a disadvantage. 


The most important step you can take as a buyer is to get preapproved before you start looking for homes. A preapproval letter shows sellers that you are serious about buying and that you will be able to make good on your offer.2 


It’s also important to consider the reputation of your lender. While sellers may not know or care about a lender’s reputation, their agents often do. Some lenders are much easier to work with than others. If you’re unsure who to choose, we are happy to refer you to reputable lenders known for their ease of doing business. 


2. Put Down a Sizeable Deposit

Buyers can show sellers that they’re serious about their offer and have “skin in the game” by putting down a large deposit. This, however, is not the same as a down payment. 


The deposit is typically held in a trust account by the seller’s brokerage or lawyer.3 If the purchase goes through, it is applied to the down payment and closing costs. If the sale falls through, however, the buyer could lose some or all of that deposit, depending on the contract terms.


Deposit amounts vary, but offering a higher deposit can help demonstrate to the buyer that you are serious about the property. We can help you determine an appropriate deposit to offer based on your specific circumstances.


3. Ask for Few (or No) Conditions

Most real estate offers include conditions, which are clauses that allow one or both parties to back out of the agreement if certain requirements are not met. These conditions appear in the purchase agreement and must be accepted by both the buyer and seller to be legally binding.


Two of the most common conditions are:4

Financing: A financing condition gives the buyer a window of time in which to secure a mortgage. If they are unable to do so, they can withdraw from the purchase and the seller can move on to other buyers.

Inspection: An inspection condition gives the buyer the opportunity to have the home professionally inspected for issues with the structure, wiring, plumbing, etc. Typically, the seller may choose whether or not to remediate those issues; if they do not, the buyer may withdraw from the contract.


Since conditions reduce the likelihood that a sale will go through, they generally make an offer less desirable to the seller. The more conditions that are included, the weaker the offer becomes. Therefore, buyers in a competitive market often volunteer to waive or exclude certain conditions.


However, it’s very important to make this decision carefully and recognize the risks of doing so. For example, a buyer who chooses to waive a home inspection condition may find out too late that the home requires extensive renovations. If you back out of a home purchase without the protection of a condition, you could lose your deposit.5 We can help you assess the risks and benefits involved.


4. Offer a Flexible Closing Date

When it comes to selling a house, money isn’t everything. People sell their homes for a wide variety of reasons, and flexible terms that work with their personal situations can sometimes make all the difference. For example, if a seller is in the process of planning a significant move, they may appreciate an option to advance or postpone their closing date.


This flexibility can provide a powerful advantage for first-time homebuyers. If you have a month-to-month or easily transferable lease, for example, you may be able to offer a more flexible timeline than a buyer who is simultaneously selling their existing home.


Of course, the value of these terms depends on the seller’s situation. We can reach out to the listing agent to find out the seller’s preferred terms, and then collaborate with you to write a compelling offer that works for both parties. 


5. Work With a Skilled Buyer’s Agent

In this real estate market, one of the greatest advantages you can give yourself is to work with a skilled and trustworthy real estate professional. We will make sure you fully understand the process and help you submit an appealing offer without taking on too much risk. 


Plus, we know how to write offers that are designed to win over both the seller and their listing agent. The truth is, listing agents play a huge role in helping sellers evaluate offers, and they want to work with skilled buyer’s agents who are professional, communicative, and courteous. 


Once your offer is accepted, we’ll also handle any further negotiations and coordinate all the paperwork and other details involved in your home purchase. The best part is, you’ll have a knowledgeable, licensed advocate on your side who is watching out for your best interests every step of the way.


Helping You Get to the Right Offer

In many cases, a competitive offer doesn’t need to be condition-free or significantly above asking price. But if you’re serious about buying a home in today’s market, it’s important to consider what you can do to sweeten the deal. 


If you’re a buyer, we can help you compete in today’s market without getting steamrolled. And if you’re a seller, we can help you evaluate offers by taking all the relevant factors into account. Contact us today to schedule a free consultation.


Sources:

  1. Bloomberg - https://www.bloomberg.com/news/articles/2022-04-12/home-prices-could-start-to-cool-in-canada-s-hot-housing-market
  2. NerdWallet -
    https://www.nerdwallet.com/ca/mortgages/what-is-mortgage-pre-approval
  3. Nesto -
    https://www.nesto.ca/mortgage-basics/house-deposit-vs-down-payment/ 
  4. Real Estate Council Alberta -
    https://www.reca.ca/2020/02/05/conditional-sales/ 
  5. Loans Canada -
    https://loanscanada.ca/mortgage/what-happens-when-you-walk-away-from-your-offer-on-a-house/ 
Read


Below is a list of incredible professional REALTORS® from all across Canada that I know share similar values and business procedures to me. If you are in need of someone great to either help you buy or sell a home, please be sure to contact me and I can get you introduced to one of my trusted partners below. 


Alberta

Leduc Real Estate Specialist | AB

Jolene Langelle | jolenelangelle@hotmail.com | ph: (780) 910-1317

Home Values in North Ridge | St Albert AB

Kevin Machado | kevin@kevinmachado.ca | ph: (780) 935-5762

You Local Red Deer REALTOR® | AB

Andrew Russell | andrew.russell@remaxreddeer.com | ph: (403) 350-4134

Southwest Calgary Relocation Experts! | AB

Marnie Campbell | marnie@marniecampbell.ca | ph: (403) 479-8619

Buy your next home in Airdrie! | AB

Jenna Drummond | jenna@ripco.ca | ph: (403) 589-7423

Selling Sherwood Park - Local Realtor® | AB

Michael Waddell | info@michaelwaddell.ca | ph: (780) 906-5634

Sell Your Erin Ridge Home with Local Experts! | St Albert AB

Corinne O’Neil | homes4u@corinneoneil.com | ph: (780) 995-7653

Home Values Edmonton River Valley | AB

Michael Draper | michael@edmontonhq.com | ph: (780) 652-1630

Your Windermere Specialist | Edmonton AB

Brad Richardson | brad@edmontonhq.com | ph: (780) 666-2340

Buy Your Next Home in Tuscany | Calgary AB

Stacey Kelley | staceykelley@royallepage.ca | ph: (403) 827-9076


British Columbia (BC)

Sell your home for top dollar with the Germyn Group | Surrey BC

Darin Germyn | homes@germyn.ca | ph: 604-542-2444

Home Values in Kitsilano | Vancouver BC

Michael Tudorie | michael@michaeltudorie.com | ph: (604) 910-7777

West Kelowna Real Estate | BC

Jody Miller | jody@jodymiller.com | ph: (250) 469-4639

Home Values in East Vancouver | BC

Keith Roy | homes@keithroy.com | ph: (604) 454-4219

Langley Real Estate | BC

Kim Beck | kim@kimbeck.ca | ph: (604) 312-8369

REALTOR® | Vernon BC

Cari Rochford | carirochford@royallepage.ca | ph: (250) 308-9245

Salmon Arm Home Selling Expert | BC

Tina Cosman | tina@tinacosman.com | ph: (250) 804-6765

Homes Values in Richmond | BC

Valerie Laurendeau | valeriel@remax.net | ph: (604) 603-7333

Tsawwassen Real Estate Specialists | BC

Leanne Lionello | leanne@leannelionello.com | ph: (604) 209-5294

Coquitlam Home Values | BC

Greg Axford | greg@theaxfords.com | ph: (778) 829-3224

Fort St John Real Estate | BC

Elizabeth Chi | eli@elichi.ca | ph: (778) 256-2888

North Nanaimo Real Estate | BC

Rosanna Duffy | rosanna@vancouverislandlifestyle.ca | ph: (250) 816-4663

South Nanaimo Real Estate | BC

Dan Morris | Dan@danmorris.ca | ph: 250-667-4585

Home Values on Main | Vancouver BC

Robert Britch | rob@robbritch.com | ph: (604) 240-5813


Manitoba

 Winnipeg Relocation Experts! | MB

Stephen Olyniuk | stephen@teamolyniuk.com | ph: (204) 981-2009

Saskatchewan


Regina Real Estate | SK

Martin Blonski | martin@reginaexperts.ca | ph: (306) 527-0500


Ontario

Scarborough Real Estate Agent | Toronto ON

Tom Joseph | tom@tjandteam.com | ph: (416) 931-0534

Luxury Real Estate | Windsor ON

Teresa Neusch | teresa@teresaneusch.com | ph: (519) 791-8258

Real Estate Specialist | London ON

Shawna Bradshaw | 4redheadrealtor@gmail.com | ph: 5198707736

Moving to Markham? Contact Ralph Ciancio | ON

Ralph Ciancio | Ralph@RalphCiancioHomes.com | ph: 416-839-9253

Sell Your Home | Belleville ON

Tara Lyons | tara@taralyons.com | ph: (613) 922-3200

What’s my castle worth? | Richmond Hill ON

Michael Maniaci | michael.maniaci@evrealestate.com | ph: (416) 896-4663

Milton Area Specialist | Missaugua ON

Sam Najjar | sam.najjar@royallepage.ca | ph: (416) 560-0874

Oakville Area Specialist | Missaugua ON

Paul Lisanti | paul@legacyrealty.ca | ph: (289) 813-3773

Lorne Park Area Specialist | Missaugua ON

Stephanie Hebb | stephanie.hebb@royallepage.ca | ph: (416) 802-8032

Hamilton Real Estate | ON

Rachelle Aurini | RAurini@royallepage.ca | ph: (905) 870-7468

Mister SOLD | Brampton ON

Kapil Marwaha | kapil.marwaha@rogers.com | ph: (416) 388-7766

REALTOR® selling your Burlington home | ON

Philip Hollett | philip@philiphollett.com | ph: (289) 259-7795

Find your next home in Waterloo | ON

Michael Hewitson | mike@mynextkwhome.com | ph: (519) 635-1774

Real Estate | St Thomas ON

Sheri Lawrence | sherilawrence@royallepage.ca | ph: (519) 317-8463

The Glebe Area Specialist | Ottawa ON

Dominique Milne | dominique@dominiquemilne.com | ph: (613) 864-5566

Streetsville Area Specialist | Missaugua ON

Heidi Brown | heidi@heidibrownhomes.ca | ph: (416) 898-4565

Westboro Area Specialist | Ottawa ON

Daria Kark | Daria@dariakark.com | ph: (613) 513-5997

Clarington Real Estate | Durham ON

Stefan Melnychuk | stefan@stefanmelnychuk.com | ph: (905) 809-3612

Simcoe County Real Estate | ON

Matt Stuart | Mattstuart@ronanrealty.com | ph: (905) 801-5469

Whitby REALTOR® | Durham ON

Kyle Barriage | kyle@buywithky.ca | ph: (416) 557-8430

Pickering Area Real Estate Specialist | Durham ON

Majid Lodhi | majidlodhi14@gmal.com | ph: (647) 470-7554

Orleans Area Specialist | Ottawa ON

Steve Wellwood | swellwood@sutton.com | ph: (613) 323-7796


Quebec

Montreal Real Estate | QB

Vale´rie Fillion | vfillion@hotmail.com | ph: (514) 212-1655


Nova Scotia

Real Estate | Bedford NS

Adam Berry | adam@royallepage.ca | ph: (902) 880-3582

Read

Seller’s Checklist: A Timeline to Prep Your Home for Sale

We’re still in a seller’s market, but that doesn’t mean your home is guaranteed to easily sell.1 If you want to maximize your sale price, it’s still important to prepare your home before putting it on the market.


Start by connecting with your real estate agent as soon as possible. Having the eyes and ears of an insightful real estate professional on your side can help you boost your home’s appeal to buyers. What’s more, beginning the preparation process early allows you to tackle repairs and upgrades that can increase your property’s value. 


Use the checklist below to figure out what other tasks you should complete in the months leading up to listing your home. While everyone’s situation is unique, these guidelines will help you make sure you’re ready to sell when the time is right. Of course, you can always call us if you’re not sure where to start or what to tackle first. We can help customize a plan that works for you.



AS SOON AS YOU THINK OF SELLING


Some home sellers want to plan their future move far in advance, while others will be required to pack up on very short notice. Whatever your circumstances, these first steps will help assure you’ll be ahead of the listing game.


Contact Your Real Estate Agent

We go the extra mile when it comes to servicing our clients, and that includes a series of complimentary, pre-listing consultations to help you prepare your home for the market.


Some sellers make the mistake of waiting until they are ready to list their home to contact a real estate agent. But we’ve found that the earlier we’re brought into the process, the better the result. That often means a faster sale—and more money in your pocket after closing.


We know what buyers want in today’s market, and we can help devise a plan to maximize your property’s appeal. We can also connect you with our trusted network of contractors, vendors, and service professionals, so you’ll be sure to get the VIP treatment. This network of support can alleviate stress and help ensure you get everything done in the weeks or months leading up to listing.


Address Major Issues And Upgrades

In most cases, you won’t need to make any major renovations before you list. But if you’re selling an older home, or if you have any doubt about its condition, it’s best to get us involved as soon as possible so we can help you assess any necessary repairs.


In some instances, we may recommend a pre-listing inspection. Although it's less common in a seller's market, a pre-listing inspection can help you avoid potential surprises down the road. We can discuss the pros and cons during our initial meeting. 


This is the time to address major structural, systems, or cosmetic issues that could hurt the sale of your home down the line. For example, problems with the frame, foundation, or roof are likely to be flagged on an inspection report. Issues with the HVAC system, electrical wiring, or plumbing may cause the home to be unsafe. And sometimes outdated or unpopular design features can limit a home’s sales potential. 


Remember, when you’re dealing with major repairs or renovations, it’s best to give yourself as much time as possible. Given rampant labour and material shortages, starting right away can help you avoid costly delays.2 Contact us so we can guide you on the updates that are worth your time and investment. 



1 MONTH (OR MORE) BEFORE YOU LIST


Once any large-scale renovations have been addressed, you can turn your attention to the more minor updates that still play a major role in how buyers perceive your home.


Make Minor Repairs

Look for any unaddressed maintenance or repair issues, such as water spots, pest activity, and rotten siding. This is the time to take care of those small annoyances like squeaky hinges, sticking doors, and leaky faucets, too.


Many of these issues can be handled by going the DIY route and using a few simple tools. Tackle the ones you can and be sure to call a professional for the ones you’re not comfortable doing yourself. We can refer you to local service providers who can help.


Remember that it’s easy to overlook these small issues because you live with them. When you work with us, you get a fresh set of eyes on your home—so you don’t miss any important repairs that could make a big difference to buyers.


Refresh Your Design

This is a great time to think about some simple design updates that can make a significant impression on buyers. For example, a fresh coat of paint is an easy and affordable way to spruce up your home. A recent survey of Canadian agents found that paint and landscaping were two upgrades that offered the highest return on investment.3 


HGTV landscape designer Carson Arthur agrees. According to Arthur, landscaping is the best place to invest your money and has the potential to increase your home’s value by up to 7%.4 If weather permits, lay fresh sod where needed, plant colourful flowers, and add some new mulch to your beds.


Even just repositioning your furniture can make a huge difference to buyers. A survey published by the International Association of Staging Professionals found that staged homes often sell faster and for more than their list price.5 We can refer you to a local stager or offer our insights and suggestions if you prefer the DIY route.


Declutter and Depersonalize

Doing a little bit of decluttering every day is a lot easier than trying to take care of it all at once right before your home hits the market. A simple strategy is to do this one room at a time, working your way through each space whenever you have a bit of free time. 


Start by donating or discarding items that you no longer want or need. Then pack up any seasonal items, family photos, and personal collections you can live without for the next few weeks. Bonus: This will give you a head start on packing for your move!



1 WEEK BEFORE YOU GO TO MARKET


With just one week before your home is available for sale, all major items should be crossed off your to-do list. Now it’s time to focus on the small details that will really make your home shine. Here are a few key areas to focus on during this last week. 


Check-In With Your Agent

We’ll connect again to make sure we’re aligned on the listing price, marketing plan, and any remaining prep. We will be there every step of the way, ensuring you’re fully prepared to maximize the sale of your home.


Tidy Your Exterior

You’ve already done the major landscaping—now it’s time to tackle the last few details. Make sure your lawn is freshly mowed, hedges are trimmed, and flower beds are weeded.


In addition, now is the time to clean your home’s exterior if you haven’t already. Power wash your siding, empty the gutters, and wash all your windows and screens.


Deep Clean Your Interior

Your house should be deep cleaned before listing, including a thorough deodorizing of the home’s interior and steam cleaning for all carpets. Consider hiring a professional cleaning company to ensure the space smells and looks as fresh as possible. 


In addition to cleaning, take some time to tidy up. Buyers will look inside your closets, pantries, and cabinets, so make sure they are neat and organized. Small appliances and toiletries should be cleared off the countertops.



DAY OF SHOWING


Now you’re all set to go and there are just a few small things you need to handle on the day of showings or open houses. Do a final walk-through and take care of these finishing touches to give potential buyers the best possible impression.


Pre-Showing Prep

Happy and comfortable buyers are more likely to submit offers! Make them feel at home by adjusting the thermostat to a comfortable temperature. Open any blinds and curtains throughout the house, and turn on all lights so buyers can see all the potential in your home.


Then tidy up by vacuuming and sweeping floors, emptying (or hiding) trash cans, and wiping down countertops. In the bathrooms, close toilet lids and hang clean hand towels. 


Don’t forget to secure jewelry, sensitive documents, prescription medications, and any other items of value in a safe or store them off-site.


Finally, it’s best to have pets out of the house during showings. If possible, you should also remove evidence of pets (litter box, dog beds, etc.), which can be a turn-off for some buyers.



DON’T WAIT TO PREP YOUR HOME FOR SELLING


If you want to get top dollar for your home, don’t put it on the market before it’s ready. The right preparation can make all the difference when it comes to maximizing the offers you get. The upgrades and changes you need to make will depend upon your home’s condition, so don’t wait to speak with an agent.


Call our team if you’re thinking about selling your home, even if you’re not sure when. It’s never too early to seek the guidance of your real estate agent and start preparing your home to sell.


Sources:


  1. RBC - https://thoughtleadership.rbc.com/a-turning-point-more-sellers-enter-canadas-housing-market-in-february/ 
  2. ConstructConnect - https://canada.constructconnect.com/canadata/forecaster/economic/2021/07/labour-shortages-high-material-costs-strong-demand-more-pressure-on-house-prices 
  3. RE/MAX - https://blog.remax.ca/canadian-real-estate-renovation-trends/
  4. National Post - https://nationalpost.com/life/homes/curb-appeal-in-the-business-of-home-ownership-a-little-landscaping-can-go-a-long-way 
  5. International Association of Staging Professionals - https://d3oaxt0bwkjnjn.cloudfront.net/documents/home-staging-industry-statistics-2020-min.pdf
Read

Hedge Against Inflation With These 3 Real Estate Investment Types

The annual inflation rate in Canada is currently around 5.1%—the highest it’s been in 30 years.1 It doesn’t matter if you’re a cashier, lawyer, plumber, or retiree; if you spend Canadian dollars, inflation impacts you. 


Economists expect the effects of inflation, like a higher cost of goods, to continue.2 Luckily, an investment in real estate can ease some of the financial strain. 


Here’s what you need to know about inflation, how it impacts you, and how an investment in real estate can help.

WHAT IS INFLATION AND HOW DOES IT IMPACT ME?
Inflation is a decline in the value of money. When the rate of inflation rises, prices for goods and services go up. Therefore, a dollar buys you a little bit less with every passing day. The consumer price index, or CPI, is a standard measure of inflation. Based on the latest CPI data, prices increased 5.1% from January 2021 to January 2022. In comparison, the CPI increased 1.0% from January 2020 to January 2021.3 


How does inflation affect your life? Here are a few of the negative impacts:

Decreased Purchasing Power:
We touched on this already, but as prices rise, your dollar won’t stretch as far as it used to. That means you’ll be able to purchase fewer goods and services with a limited budget.

Increased Borrowing Costs:
In an effort to curb inflation, the Bank of Canada is expected to raise interest rates.4 Therefore, consumers are likely to pay more to borrow money for things like mortgages and credit cards.

Lower Standard of Living:
Wage growth tends to lag behind price increases. Even as labour shortages persist in Canada—which would typically trigger pay raises—wages are not increasing at the same pace of inflation.5 As such, life is becoming less affordable for everyone. For example, inflation can force those on a fixed income, like retirees, to make lifestyle changes and prioritize essentials.

Eroded Savings:
If you store all your savings in a bank account, inflation is even more damaging. As of February, the national average deposit interest rate for a savings account was around 0.067%, not nearly enough to keep up with inflation.6 


One of the best ways to mitigate these effects is to find a place to invest your money other than the bank. Even though interest rates are expected to rise, they’re unlikely to get high enough to beat inflation. If you hoard cash, the value of your money will decrease every year and more rapidly in years with elevated inflation.



REAL ESTATE: A PROVEN HEDGE AGAINST INFLATION
So where is a good place to invest your money to protect (hedge) against the impacts of inflation? There are several investment vehicles that financial advisors traditionally recommend, including:

Stocks:
Some people invest in stocks as their primary inflation hedge. However, the stock market can become volatile during inflationary times, as we’ve seen in recent months.7

Commodities:
Commodities are tangible assets, like gold, oil, and livestock. The theory is that the price of commodities should climb alongside inflation. But studies show that this correlation doesn’t always occur.

Inflation-Protected Bonds:
Real Return Bonds (RRBs) are inflation-protected bonds issued by the Canadian government that are indexed to the inflation rate. Bonds are considered low risk, but returns have not been rising at the same rate of inflation, making them suboptimal investments.9

Real Estate:
Real estate prices across the board tend to rise along with inflation, which is why so much Canadian capital is flowing into real estate right now.10 We believe real estate is the best hedge against inflation. Owning real estate does more than protect your wealth—it can actually make you money. For example, home prices rose 20% from 2021 to 2022, nearly 15% ahead of the 5.1% inflation that occurred in the same timeframe.11 Plus, certain types of real estate investments can help you generate a stream of passive income. In the past year, property owners didn’t just avoid the erosion of purchasing power caused by inflation; they got ahead. 



TYPES OF REAL ESTATE INVESTMENTS
Though there are a myriad of ways to invest in real estate, there are three basic investment types that we recommend for beginner and intermediate investors. Remember that we can help you determine which options are best for your financial goals and budget. 

Primary Residence:
If you own your home, you’re already ahead. The advantages of homeownership become even more apparent in inflationary times. As inflation raises prices throughout the economy, the value of your home is likely to go up concurrently.


If you don’t already own your primary residence, homeownership is a worthwhile goal to pursue. Though the task of saving enough for a down payment may seem daunting, there are several strategies that can make homeownership easier to achieve. If you’re not sure how to get started with the home buying process, contact us. Our team can help you find the strategy and property that fits your needs and budget.


Whether you already own a primary residence or are still renting, now is a good time to also start thinking about an investment property. The types of investment properties you’ll buy as a solo investor generally fall into two categories: long-term rentals and short-term rentals. 

Long-Term (Traditional) Rentals:
A long-term or traditional rental is a dwelling that’s leased out for an extended period. An example of this is a single-family home where a tenant signs a one-year lease and brings all their own furniture.


Long-term rentals are a form of housing. For most tenants, the rental serves as their primary residence, which means it’s a necessary expense. This unique quality of long-term rentals can help to provide stable returns in uncertain times, especially when we have high inflation.


To invest in a long-term rental, you’ll need to budget for maintenance, repairs, property taxes, and insurance. You’ll also need to have a plan for managing the property. But a well-chosen investment property should pay for itself through rental income, and you’ll benefit from appreciation as the property rises in value.


We can help you find an ideal long-term rental property to suit your budget and investment goals. Reach out to talk about your needs and our local market opportunities.

Short-Term (Vacation) Rentals:
Short-term or vacation rentals function more like hotels in that they offer temporary accommodations. A short-term rental is defined as a residential dwelling that is rented for 30 days or less. The furniture and other amenities are provided by the property owner, and today many short-term rentals are listed on websites like Airbnb and Vrbo.


A short-term rental can potentially earn you a higher return than a long-term rental, but this comes at the cost of daily, hands-on management. With a short-term rental, you’re not just entering the real estate business; you’re entering the hospitality business, too. 


Done right, short-term rentals can be both a hedge against inflation and a profitable source of income. As a bonus, when the home isn’t being rented you have an affordable vacation spot for yourself and your family!
Contact us today if you’re interested in exploring options in either the long-term or short-term rental market. Since mortgage rates are expected to rise, you’ll want to act fast to maximize your investment return.



WE’RE INVESTED IN HELPING YOU
Inflation is a fact of life in the Canadian economy. Luckily, you can prepare for inflation with a carefully managed investment portfolio that includes real estate. Owning a primary residence or investing in a short-term or long-term rental will help you both mitigate the effects of inflation and grow your net worth, which makes it a strategic move in our current financial environment.


If you’re ready to invest in real estate to build wealth and protect yourself from rising inflation, contact us. Our team can help you find a primary residence or investment property that meets your financial goals. 


The above references an opinion and is for informational purposes only.  It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

  1. Reuters - https://www.reuters.com/world/americas/canadas-annual-inflation-rate-hits-51-january-2022-02-16/ 
  2. MacLeans - https://www.macleans.ca/economy/inflation-worsening-2022-canada/ 
  3. Statistics Canada - https://www150.statcan.gc.ca/n1/daily-quotidien/220216/dq220216a-eng.htm 
  4. Bloomberg - https://www.bloomberg.com/news/articles/2022-01-25/canada-set-to-raise-rates-in-inflation-fight-decision-guide 
  5. The Globe & Mail - https://www.theglobeandmail.com/business/article-the-stealth-pay-cut-wages-arent-keeping-up-with-inflation/ 
  6. Trading Economics - https://tradingeconomics.com/canada/deposit-interest-rate 
  7. Reuters - https://www.nasdaq.com/articles/canada-stocks-tsx-down-after-hot-inflation-data-dismal-shopify-forecast 
  8. Research Gate - https://www.researchgate.net/publication/350016324_Gold_and_Inflation_in_Canada_A_Time-Varying_Perspective 
  9. Maple Money - https://maplemoney.com/inflation-protection-are-real-return-bonds-or-tips-the-answer/ 
  10. Storeys - https://storeys.com/canadians-using-real-estate-outrun-inflation/ 
  11. WOWA - https://wowa.ca/reports/canada-housing-market
Read

Hedge Against Inflation With These 3 Real Estate Investment Types

The annual inflation rate in Canada is currently around 5.1%—the highest it’s been in 30 years.1 It doesn’t matter if you’re a cashier, lawyer, plumber, or retiree; if you spend Canadian dollars, inflation impacts you. 


Economists expect the effects of inflation, like a higher cost of goods, to continue.2 Luckily, an investment in real estate can ease some of the financial strain. 


Here’s what you need to know about inflation, how it impacts you, and how an investment in real estate can help.



WHAT IS INFLATION AND HOW DOES IT IMPACT ME?

Inflation is a decline in the value of money. When the rate of inflation rises, prices for goods and services go up. Therefore, a dollar buys you a little bit less with every passing day.


The consumer price index, or CPI, is a standard measure of inflation. Based on the latest CPI data, prices increased 5.1% from January 2021 to January 2022. In comparison, the CPI increased 1.0% from January 2020 to January 2021.3 


How does inflation affect your life? Here are a few of the negative impacts:


Decreased Purchasing Power:

We touched on this already, but as prices rise, your dollar won’t stretch as far as it used to. That means you’ll be able to purchase fewer goods and services with a limited budget.


Increased Borrowing Costs:

In an effort to curb inflation, the Bank of Canada is expected to raise interest rates.4 Therefore, consumers are likely to pay more to borrow money for things like mortgages and credit cards.


Lower Standard of Living:

Wage growth tends to lag behind price increases. Even as labour shortages persist in Canada—which would typically trigger pay raises—wages are not increasing at the same pace of inflation.5 As such, life is becoming less affordable for everyone. For example, inflation can force those on a fixed income, like retirees, to make lifestyle changes and prioritize essentials.


Eroded Savings:

If you store all your savings in a bank account, inflation is even more damaging. As of February, the national average deposit interest rate for a savings account was around 0.067%, not nearly enough to keep up with inflation.6 


One of the best ways to mitigate these effects is to find a place to invest your money other than the bank. Even though interest rates are expected to rise, they’re unlikely to get high enough to beat inflation. If you hoard cash, the value of your money will decrease every year and more rapidly in years with elevated inflation.



REAL ESTATE: A PROVEN HEDGE AGAINST INFLATION

So where is a good place to invest your money to protect (hedge) against the impacts of inflation? There are several investment vehicles that financial advisors traditionally recommend, including:


Stocks

Some people invest in stocks as their primary inflation hedge. However, the stock market can become volatile during inflationary times, as we’ve seen in recent months.7


Commodities

Commodities are tangible assets, like gold, oil, and livestock. The theory is that the price of commodities should climb alongside inflation. But studies show that this correlation doesn’t always occur.


Inflation-Protected Bonds

Real Return Bonds (RRBs) are inflation-protected bonds issued by the Canadian government that are indexed to the inflation rate. Bonds are considered low risk, but returns have not been rising at the same rate of inflation, making them suboptimal investments.9


Real Estate

Real estate prices across the board tend to rise along with inflation, which is why so much Canadian capital is flowing into real estate right now.10


We believe real estate is the best hedge against inflation. Owning real estate does more than protect your wealth—it can actually make you money. For example, home prices rose 20% from 2021 to 2022, nearly 15% ahead of the 5.1% inflation that occurred in the same timeframe.11 


Plus, certain types of real estate investments can help you generate a stream of passive income. In the past year, property owners didn’t just avoid the erosion of purchasing power caused by inflation; they got ahead. 



TYPES OF REAL ESTATE INVESTMENTS

Though there are a myriad of ways to invest in real estate, there are three basic investment types that we recommend for beginner and intermediate investors. Remember that we can help you determine which options are best for your financial goals and budget. 


Primary Residence:

If you own your home, you’re already ahead. The advantages of homeownership become even more apparent in inflationary times. As inflation raises prices throughout the economy, the value of your home is likely to go up concurrently. 


If you don’t already own your primary residence, homeownership is a worthwhile goal to pursue.

Though the task of saving enough for a down payment may seem daunting, there are several strategies that can make homeownership easier to achieve. If you’re not sure how to get started with the home buying process, contact us. Our team can help you find the strategy and property that fits your needs and budget.


Whether you already own a primary residence or are still renting, now is a good time to also start thinking about an investment property. The types of investment properties you’ll buy as a solo investor generally fall into two categories: long-term rentals and short-term rentals. 


Long-Term (Traditional) Rentals:

A long-term or traditional rental is a dwelling that’s leased out for an extended period. An example of this is a single-family home where a tenant signs a one-year lease and brings all their own furniture.


Long-term rentals are a form of housing. For most tenants, the rental serves as their primary residence, which means it’s a necessary expense. This unique quality of long-term rentals can help to provide stable returns in uncertain times, especially when we have high inflation.


To invest in a long-term rental, you’ll need to budget for maintenance, repairs, property taxes, and insurance. You’ll also need to have a plan for managing the property. But a well-chosen investment property should pay for itself through rental income, and you’ll benefit from appreciation as the property rises in value.


We can help you find an ideal long-term rental property to suit your budget and investment goals. Reach out to talk about your needs and our local market opportunities.


Short-Term (Vacation) Rentals:

Short-term or vacation rentals function more like hotels in that they offer temporary accommodations. A short-term rental is defined as a residential dwelling that is rented for 30 days or less. The furniture and other amenities are provided by the property owner, and today many short-term rentals are listed on websites like Airbnb and Vrbo.


A short-term rental can potentially earn you a higher return than a long-term rental, but this comes at the cost of daily, hands-on management. With a short-term rental, you’re not just entering the real estate business; you’re entering the hospitality business, too. 


Done right, short-term rentals can be both a hedge against inflation and a profitable source of income. As a bonus, when the home isn’t being rented you have an affordable vacation spot for yourself and your family!


Contact us today if you’re interested in exploring options in either the long-term or short-term rental market. Since mortgage rates are expected to rise, you’ll want to act fast to maximize your investment return.



WE’RE INVESTED IN HELPING YOU

Inflation is a fact of life in the Canadian economy. Luckily, you can prepare for inflation with a carefully managed investment portfolio that includes real estate. Owning a primary residence or investing in a short-term or long-term rental will help you both mitigate the effects of inflation and grow your net worth, which makes it a strategic move in our current financial environment.


If you’re ready to invest in real estate to build wealth and protect yourself from rising inflation, contact us. Our team can help you find a primary residence or investment property that meets your financial goals. 



The above references an opinion and is for informational purposes only.  It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.



Sources:

  1. Reuters - https://www.reuters.com/world/americas/canadas-annual-inflation-rate-hits-51-january-2022-02-16/ 
  2. MacLeans - https://www.macleans.ca/economy/inflation-worsening-2022-canada/ 
  3. Statistics Canada - https://www150.statcan.gc.ca/n1/daily-quotidien/220216/dq220216a-eng.htm 
  4. Bloomberg - https://www.bloomberg.com/news/articles/2022-01-25/canada-set-to-raise-rates-in-inflation-fight-decision-guide 
  5. The Globe & Mail - https://www.theglobeandmail.com/business/article-the-stealth-pay-cut-wages-arent-keeping-up-with-inflation/ 
  6. Trading Economics - https://tradingeconomics.com/canada/deposit-interest-rate 
  7. Reuters - https://www.nasdaq.com/articles/canada-stocks-tsx-down-after-hot-inflation-data-dismal-shopify-forecast 
  8. Research Gate - https://www.researchgate.net/publication/350016324_Gold_and_Inflation_in_Canada_A_Time-Varying_Perspective 
  9. Maple Money - https://maplemoney.com/inflation-protection-are-real-return-bonds-or-tips-the-answer/ 
  10. Storeys - https://storeys.com/canadians-using-real-estate-outrun-inflation/ 
  11. WOWA - https://wowa.ca/reports/canada-housing-market
Read

8 Popular Home Design Features for 2022


There’s a lot to consider when selling your home, from market conditions and appraisals to where you’ll go next. Don’t forget, however, the importance of design. It’s often one of the first things buyers notice when they walk into a home, and it’s also a detail that you, as a seller, can easily control.


According to Realtor.ca’s 2022 housing market forecast, October of 2021 saw record home sales.1 Even with the pandemic igniting new restrictions in some provinces, the Canadian housing market is expected to remain hot. This means, if you’re looking to sell in the near future, now is the time to consider how you can stand out.


Updating your home design is one way to do that. Changes like eco-friendly fixtures or upgraded siding can add value to your home now and be highlighted when you market it for sale later. To get the most out of your updates, focus on these popular home design features that will wow buyers in 2022.


Keep in mind, not all of these will work well in every house. If you plan to buy, list, or renovate a property, give us a call. We can help you realize your vision and maximize the impact of your investment.


Eco-Friendly Fixtures


Canada’s largest demographic, millennials, has been a driving force in the country’s real estate market for the past few years. One thing that remains top of mind for this cohort is sustainable living features. A recent Deloitte survey found that one-third of millennials initiate or deepen their consumer investment in products or services that help the environment—this also includes the houses they choose to live in.2


Here are a few eco-friendly design features that will be attractive to these millennial buyers in 2022. Bonus: they can net a significant return on investment (ROI) for you, as a seller, too.

  • Energy-Efficient Windows: Windows and doors account for up to 25 percent of home heat loss, according to nrcan.gc.ca.3 Therefore, upgrading to energy-efficient windows can help homeowners save money. 
  • Low-Flow Water Fixtures: National Resources Canada also recommends replacing your water-consuming fixtures like showerheads, toilets, and faucets with ones that have flow rates of about 7.6 L/minute, 4.8L/flush, and 4L/minute, respectively.4 If you want to take it a step further, ENERGY STAR® certified appliances like dishwashers and washing machines will also make a dramatic difference in water bill savings. 
  • Native Landscaping: Perhaps unexpectedly, another eco-friendly ‘fixture’ is native flora. Local greenery helps combat biodiversity loss, creates a better habitat for wildlife, and has a greater resistance to pests, according to HGTV.5 These benefits of native plants add to the eco-friendly appeal of your home. 

Wellness Retreat Nooks


As many of our homes became “all-purpose” territory for the entire family, interior zoning efforts were in full effect. From designated offices to closed-door playrooms, everyone needed their own space. Add in mental health concerns, competing schedules, and reduced access to health and wellness facilities, and the result is a huge prioritization of personal care spaces.  


At-home wellness amenities, which were once viewed as luxuries, are now on many homeowners’ must-have lists. Intrigue buyers and improve your quality of life in your home with reading nooks, spa-inspired bathrooms, and exercise or meditation spaces. Even if your house doesn’t have the square footage to section off an entire room for relaxation, making simple tweaks to natural light, air purifiers, and indoor plants can help you feel better in your home now, while enabling future buyers to see the opportunity for their own space.


Calming Paint Colours


Paint colors that produce a calming atmosphere will also be a key selling point in 2022. Soft earth tones and natural hues will prevail this year, including various shades of blue, green, brown, and beige. Recent research suggests steering clear of trendy paint colors in favor of a more classic palette to bring the feel of nature indoors in a subtle and soothing way.6 


A survey of American homebuyers found that a certain paint colour was able to increase a home’s value by 1.6%.6 If we Canadians see even a 1% increase, that’s $7,208 more for the average home, which is priced at $720,850, according to the Financial Post.7 


A crowd-pleasing hue to refresh the walls with is BEHR’s 2022 paint colour of the year, known as Breezeway.8 This shade of green with silver undertones was created to mimic sea glass. As the BEHR website describes it, Breezeway “evokes feelings of coolness and peace, while representing a desire to move forward and discover newfound passions.”  


Outdoor Living Updates


Don’t forget to think about your yard when considering design changes for your home. As interiors become more productive, many Canadians are looking to the outdoors for a break. HGTV predicts the “exterior living room” trend will continue in 2022, so making outdoor upgrades in the spring when the ground thaws could reap serious benefits.9 Whether your exterior square footage looks like a balcony, small patio, or expansive yard, it only takes some imagination and effort to turn it into a comforting oasis. 


Front porches, in particular, are seeing a big revival, says Greenhouse Canada.10 Power-washing your siding; adding a fresh coat of paint on the door, brick, or floorboards; and finishing it off with some exterior lighting will go a long way in upping the curb appeal.11 Don’t forget to add window boxes, big planters, and young trees that require minimal maintenance but add more life to the space. 


Finish off the space with some comfortable outdoor furniture to make the outdoors as well-designed as the indoors. If you need help deciding how to update your outdoor area, let us guide you.


Designated Work Spaces


It may come as no surprise that after the pandemic is over, 80 percent of new teleworkers want to continue to work at least half of their hours from home, according to Statistics Canada.12 However, this desire needs to be weighed against the availability of space in a home. 


If you can, try turning a bedroom or den into a work-from-home office. When designing the space, make it both functional and aesthetically pleasing. Position a desk near the window for natural light, install a bookshelf unit, arrange a few succulents on the work surface, and hang a few framed posters or a cork bulletin board on the wall. You want the space to foster productivity as well as be a place in your home you enjoy spending time.


When you get ready to sell, we can help you highlight your designated workspace. Given the high demand for this design feature, it can help you interest more buyers and attract more competitive offers—if marketed creatively. 


Plus, Canadians who transitioned to working from home because of the pandemic may be eligible to claim a $500 deduction for home office expenses—making this renovation that much more feasible.13


Luxury Kitchen Retouches


The kitchen has always been a main focal point of interior design, and that’s no different in 2022. Families will always need this space to come together in their own homes. 


This year’s buyers want a kitchen with new upgrades and retouches, but you don’t have to renovate the entire kitchen to make an impact. If you’re not sure where to start, here are a few tips on how to create a kitchen that buyers will love without spending too much money on renovations:

  • Repaint the kitchen, keeping the calm and nature-inspired colours in mind that are most popular right now. Taking a kitchen from dark to light by painting cabinets and walls can make all the difference.
  • Update the hardware. These kitchen “accessories” stand out and add personality to an otherwise standard kitchen. 
  • Update light fixtures to bring in more light while also adding a fresh look and feel in the space. 


Unique Accent Walls


An accent wall gives a home character while balancing it with the calming feel of natural- and neutral-coloured walls. But, we’ve seen accent walls before, so bolder moves are expected for 2022. Here are some on-trend options that go above and beyond a solid-colour accent wall:

  • Jewel or metallic tones
  • Textured wallpaper
  • Painted ceilings
  • Built-in shelves
  • Wood paneling14
  • Sprawling wall tiles 15


If you’re planning to sell in the next year, talk to us before adding an accent wall. Depending on your target buyer, it may be a design feature that actually hurts your home’s value. We can run a free Comparative Market Analysis on your home to help you understand what would resell best in your neighbourhood.


Exterior Siding Updates


An exterior siding refresh can make an old home feel entirely new and have a big impact on its resale value. This primarily affects curb appeal, but it’s also an important factor in keeping interiors warm and protected from Canada’s harsh winters. The average cost for new siding ranges from $4.80 - $51.60 per square foot.16 That variation depends on which of the many siding materials you choose, from fiber-cement to brick, wood, vinyl, metal, or stone. 


While all these options can infuse the exterior with character and curb appeal, there are a few other factors to consider before taking on this kind of project. While brick adds more sophistication, it is on the pricier end and is susceptible to salt erosion, making it a less enticing option for those on the coasts. On the other end of the cost spectrum, vinyl is a very popular option that does not fade, is easy to maintain, and comes in many colour options.17 However, vinyl will crack over time after facing harsh Canadian winters. 


Give your home this simple and attractive facelift before putting it on the market. If you’re not sure how to get started yourself, our team can connect you with a trusted vendor to guide you through the process. 


Keep These Home Design Features on Your Radar in 2022


These design features can infuse personality into your home while helping to close the deal if you plan to sell in 2022. The average buyer knows just what they’re looking for in a space they plan to call home, so with some investment and foresight, you can give your house an edge over the competition—and boost resale value in the process. 


However, you don’t need to make all these changes to attract more buyers. We can help you determine which design features you should add to your home by sharing insights and tips on how to maximize the return on your investment. We can also run a Comparative Market Analysis on your home to find out how it compares to others in the area, which will help us decide what changes need to be made. Contact us to schedule a free consultation!


Sources:
  1. Realtor.ca - https://www.realtor.ca/blog/what-2021s-housing-market-looked-like-and-whats-to-come/23723/1361 
  2. Deloitte - https://www2.deloitte.com/content/dam/Deloitte/global/Documents/2021-deloitte-global-millennial-survey-report.pdf
  3. NRCAN - https://www.nrcan.gc.ca/energy-efficiency/homes/make-your-home-more-energy-efficient/keeping-the-heat/section-8-upgrading-windows-and-exterior-doors/15643
  4. National Resources Canada - https://www.nrcan.gc.ca/energy-efficiency/homes/make-small-changes-add/21850  
  5. HGTV - https://www.hgtv.ca/green-living/photos/native-plants-in-canada-by-province-1938068/ 
  6. Zillow - http://zillow.mediaroom.com/2021-07-15-Homes-With-Light-Blue-Bathrooms,-Dark-Blue-Bedrooms-Could-Sell-for-Up-to-4,698-More-Than-Expected
  7. Financial Post - https://financialpost.com/real-estate/average-home-price-in-canada-hits-all-time-high-of-720850 
  8. Behr - https://www.behr.com/colorfullybehr/behr-announces-2022-color-of-the-year-and-trends-palette/
  9. HGTV - https://www.hgtv.ca/decorating/photos/biggest-home-decor-trends-2022-1952424/#currentSlide=4 
  10. Greenhouse Canada - https://www.greenhousecanada.com/garden-trends-report-sees-a-definite-shift-in-consumer-tastes/ 
  11. Toronto Sun - https://torontosun.com/life/homes/front-porches-make-a-comeback
  12. Statistics Canada - https://www150.statcan.gc.ca/n1/pub/45-28-0001/2021001/article/00012-eng.htm 
  13. Government of Canada - https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses.html 
  14. Accent Walls - https://www.homedepot.ca/en/home/ideas-how-to/decor/diy-wall-panelling.html 
  15. Accent walls  - https://www.homedepot.ca/en/home/ideas-how-to/decor/accent-wall-ideas.html 
  16. Reno Assistance - https://www.renoassistance.ca/en/siding/house-siding-costs/ 
  17. D’Angelo and Sons - https://dangeloandsons.com/best-exterior-siding-for-canadian-winter/
Read

A Return to ‘Normal’? The State of Real Estate in 2022

A Return to ‘Normal’? The State of Real Estate in 2022


Last year was one for the real estate history books. The pandemic helped usher in a buying frenzy that led to a record number of home sales and a historically-high rate of appreciation, as prices soared by a national average of 19.9% year over year, according to the Canadian Real Estate Association.1


There were signs in the second quarter that the red-hot housing market was beginning to simmer down. In June, the pace of sales slowed while the average sales price dipped 5.5% below the springtime peak.2


But just when the market seemed to be cooling, home prices and sales volume ticked up again in the fall, leading the Royal Bank of Canada to speculate: “Canada’s housing market run has more in the tank.”3


So what’s ahead for the Canadian real estate market in 2022? Here’s where industry experts predict the market is headed in the coming year.



MORTGAGE RATES WILL CREEP UP


The Bank of Canada has signalled that it plans to begin raising interest rates in the “middle quarters” of this year.4 What does that mean for mortgage rates?


Expect higher variable mortgage rates to come. In fact, according to industry trade blog Canadian Mortgage Trends, some lenders have already begun raising their variable rates in preparation. And according to the site, “Current market forecasts show the Bank of Canada on track for seven quarter-point (25 bps) rate hikes by the end of 2023, with Scotiabank expecting eight rate hikes.”5


Since September, fixed mortgage rates—which follow the 5-year Bank of Canada bond yield—have also been climbing.5 Fortunately, economists believe the housing sector is well-positioned to absorb these higher interest rates.


Derek Holt, Scotiabank vice president and head of capital markets economics, told Canadian Mortgage Professional magazine in November, “The large increase in cash balances that occurred over the pandemic combined with the record-high amount of home equity on Canadian balance sheets, to me, paints a picture of a household sector that can manage the rate shock we’re likely to get.”4


What does it mean for you? Low mortgage rates can reduce your monthly payment, make it easier to qualify for a mortgage, and make homeownership more affordable. Fortunately, there’s still time to take advantage of historically-low rates. We’d be happy to connect you with a trusted lending professional in our network.



VOLUME OF SALES WILL DECREASE


A record number of homes were sold in Canada last year. The Canadian Real Estate Association estimates that 656,300 home purchases took place, which is an 18.8% increase over 2020.6 So it’s no surprise that the pace of sales would eventually slow.


The association predicts that, nationally, the number of home sales will fall by 12.1% in 2022, which would still make 2022 the second-best year on record.1


It attributes this relative slowdown to affordability challenges and a lack of inventory but expects sales volume to remain high by historical standards. “Limited supply and higher prices are expected to tap the brakes on activity in 2022 compared to 2021, although increased churn in resale markets resulting from the COVID-related shake-up to so many people’s lives may continue to boost activity above what was normal before COVID-19.”6


What does it mean for you? The frenzied market we experienced last year required a drop-everything commitment from many of our clients, so a slower pace of sales should be a welcome relief. However, buyers should still be prepared to compete for the best properties. We can help you craft a compelling offer without compromising your best interests.



THE MARKET WILL BECOME MORE BALANCED


In 2021, we experienced one of the most competitive real estate markets ever. Fears about the virus, a shift to remote work, and economic stimulus triggered a huge uptick in demand. At the same time, many existing homeowners delayed their plans to sell, and supply and labour shortages hindered new construction. 


This led to an extreme market imbalance that benefitted sellers and frustrated buyers. According to Abhilasha Singh, an economist at Moody’s Analytics, “almost all indicators of housing market activity shot through the roof.” But, she continued, “The housing market is now showing signs of returning to earth.”7


The Royal Bank of Canada expects to see demand soften gradually as rising prices and interest rates push the cost of homeownership out of reach for many would-be buyers.3 And while the supply of available homes continues to remain low, according to Singh, “the pace of building in Canada remains elevated compared with historical averages thanks to low interest rates.”7


What does it mean for you? If you struggled to buy a home last year, there may be some relief on the horizon. Softening demand could make it easier to finally secure the home of your dreams. If you’re a seller, it’s still a great time to cash out your big equity gains! And with less competition and a slower pace of sales, you’ll have an easier time finding your next home. Reach out for a free consultation so we can discuss your specific needs and goals.



HOME PRICES LIKELY TO KEEP CLIMBING, BUT AT A SLOWER PACE


Nationwide, home prices rose an average of 19.9% in 2021. But the rate of appreciation is expected to slow down in 2022. The Canadian Real Estate Association forecasts that the national average home price will increase by 5.6% to $718,000 in 2022.6 


Singh of Moody’s Analytics agrees that price growth will slow this year and could “reach a near standstill in late 2022 but avoid any significant contractions.”7


However, some experts caution against a “wait and see” mentality for buyers. “Affordability is unlikely to improve [this] year as prices should march higher, even as interest rates creep upwards as well,” Rishi Sondhi, an economist at TD Economics, told Reuters. “We think rate hikes will weigh on, but not upend, demand, as the macro backdrop should remain supportive for sales.”8


What does it mean for you? If you’re a buyer who has been waiting on the sidelines for home prices to drop, you may be out of luck. Even if home prices dip slightly (and most economists expect them to rise) any savings are likely to be offset by higher mortgage rates. The good news is that decreased competition means more choice and less likelihood of a bidding war. We can help you get the most for your money in today’s market.



WE’RE HERE TO GUIDE YOU


While national real estate numbers and predictions can provide a “big picture” outlook for the year, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighbourhood. 


If you’re considering buying or selling a home in 2022, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals this year.



Sources:

  1. Toronto Sun -
    https://torontosun.com/life/homes/real-estate-market-on-track-to-break-records
  2. National Post -
    https://nationalpost.com/life/homes/the-great-real-estate-cool-down-has-come
  3. Royal Bank of Canada -
    https://thoughtleadership.rbc.com/canadas-housing-market-run-has-more-in-the-tank/
  4. Canadian Mortgage Professional Magazine -
    https://www.mpamag.com/ca/mortgage-industry/industry-trends/how-likely-is-a-canada-housing-crash/315742
  5. Canadian Mortgage Trends -
    https://www.canadianmortgagetrends.com/2021/11/fixed-rate-increases-costing-todays-homebuyers-over-10000-more-in-interest/
  6. Canadian Real Estate Association -
    https://www.crea.ca/housing-market-stats/quarterly-forecasts/
  7. Moody's Analytics -
    https://www.moodysanalytics.com/-/media/article/2021/10-canada-housing-market-outlook.pdf
  8. Reuters -
    https://www.reuters.com/article/canada-property-poll-idCAKBN2IM06V
Read

20 Unique Home Gifts for Every Person on Your List

20 Unique Home Gifts for Every Person on Your List


Every year, it seems the holidays sneak up on us—and every year, that brings with it the dreaded last-minute gift panic. Finding a present that hits all the right notes can be surprisingly stressful, even when it comes to people you’ve known for years. 


But have no fear! We’ve lined up a list of gifts for every “type” on your list. And since we work in real estate, they’re all centred around home life. From the coffee snob to the sports enthusiast, these presents are the perfect way to bring beauty, function or a touch of whimsy to your loved one’s home this holiday season.



FOR THOSE WHO ARE ALWAYS IN THE KITCHEN


We all know someone whose kitchen is their happy place—but once all the basics are covered, it can be hard to find the perfect present. These gifts will be a treat for the chef, baker, or food lover on your list, no matter how well equipped they are.


1. The Coffee Snob

Glass Pour-Over Coffeemaker - $75

Have a java lover on your list who just can’t get their brew right at home? This high-end pour-over system makes a smooth brew that can even be refrigerated and reheated so your recipient can enjoy a perfect cup at any time. 


2. The Foodie

Pink Oyster Mushroom Growing Kit - $65

Help your favourite gourmand create restaurant-quality meals with this kit, which allows them to grow delicious mushrooms right in their cupboard. All they’ll need to do is soak the package and then mist it with water for a few days, and voila—delicious organic mushrooms! 


3. The Baker

Vintage Etched Cake Stand - $87

If you’re lucky enough to have a fabulous home baker on your list, give a gift that reflects the joy their treats bring to others. This lovely glass cake stand is the platform that a beautifully decorated dessert deserves.


4. The Tea Aficionado

Flowering Tea Set - $35

Your favourite tea lover may have tried all of the herbal blends out there, but we bet they haven’t seen tea like this. This set contains two “blossoms” of tea leaves hand-sewn around flowers that bloom when you place them in the included glass teapot and add hot water.



FOR THOSE WHO WOULD RATHER BE IN THE BACKYARD


For many of us, time outdoors is the ultimate source of rejuvenation. The nature-lover on your list is sure to appreciate these presents that help them maximize that joy in their daily lives. 


5. The Gardener

Large Garden Tote - $66

Dedicated gardeners all need a great bag to carry their gear. This tote is attractive and sturdy and will help them keep their home’s exterior beautiful and welcoming. 


6. The Flower Lover

Monthly Flower Subscription - starting at $60/month

If your loved one prefers to enjoy their flora without all the work, a delivery of farm-fresh flowers is sure to surprise and delight. And you can keep the joy blossoming year-round with a weekly, semi-monthly or monthly subscription.


7. The Environmentalist

Reusable Stainless Steel Straws - $14

Know someone who is trying to bring less plastic into their home? This set of reusable metal straws means they’ll never have to buy a box of plastic straws again. And the assortment of sizes ensures that they’ll work with anything from a tall glass of water to a to-go mug. 


8. The Outdoor Adventurer

Solar Phone Charger - $50

Have a camper or adventurer on your list? This solar-powered phone charger, which comes with a built-in flashlight and compass, is a must-have. It will also make a great addition to their home emergency kit.



FOR THOSE WITH THEIR NOSE TO THE GRINDSTONE


Like it or not, most of us spend a good chunk of our lives working—whether at a job or on projects and chores around the house. These gifts are designed to make that work a bit easier and more enjoyable. 


9. The Remote Worker

Home Office Lap Desk - $45

Working at home can be great—in part because you can work from anywhere in the house. The remote worker on your list will appreciate this lap desk with a built-in mouse pad and phone slot, which will allow them to work comfortably from the couch or the bed without overheating their computer.


10. The Back-to-The-Office Worker

Bento Lunch Box - $35

If your loved one is heading back to the office, it doesn’t mean they have to give up the healthy habit of a home-cooked meal. Send them to work with this stylish lunch box packed full of nutritious food.


11. The Do-It-Yourselfer

Laser Measure - $35

The handy person on your list can say goodbye to unwieldy tape measures with this nifty device. It’s perfect for DIY projects of any size.


12. The Clean Freak

UV Sanitizer and Charger - $70

In the COVID-19 era, we’ve all become a little germaphobic. This UV smartphone sanitizer kills bacteria while it charges. Plus, its clever design enables you to hear your phone notifications while the device is in use.



FOR THOSE MOST PASSIONATE ABOUT THEIR HOBBIES


Of course, there’s a lot more to life than work. If you’re gifting a friend or family member who really lights up when they talk about their hobbies, we’ve got you covered. 


13. The Sports Enthusiast

Hockey Stick BBQ Set - $61

Looking for a gift for the sports enthusiast in your life that isn’t another jersey? These BBQ tools made from repurposed hockey sticks are a great pick. Perfect for cooking up food to watch with the game!


14. The Bookworm

The Book Lover’s Journal - $19

Know someone who loves to curl up on the couch with a good book? This journal will help the book-lover on your list keep track of what they’ve read, as well as their ever-growing “to-read” list. 


15. The Runner

Marathon Map Hydration Bottle- $49

Help the runner you love to stay hydrated (and motivated) with a water bottle inscribed with their favourite race route. It’s perfect for runs around the neighbourhood or just toting around the house.


16. The Tourist

Travel Backpack - $120

Make it easy for the travel lover on your list to bring back souvenirs. This lightweight backpack folds flat so it’s easy to pack but sturdy enough to carry their new treasures all the way home. 



FOR THOSE WHO PUT FAMILY FIRST


For many of us, the greatest joy in life comes from our relationship with our family. Help your recipient strengthen and celebrate those all-important connections with these thoughtful gifts. 


17. The New Parent

4-in-1 Baby Food Maker - $230

It’s hard to know what to buy for new parents once their registry is cleared out, but if they’re interested in making baby food at home, this tool is a must-have. It makes the process, from steaming to mixing, fast and easy.


18. The Genealogy Fan

DNA Kit - $129

Know someone interested in reconnecting with their ancestral home? This DNA kit can help them trace their geographical heritage and uncover their family history.


19. The Dog Person

Custom Printed Socks - $28

Is your friend’s dog their favourite family member? These adorable socks are sure to put a smile on their face as they cozy up on the couch with their pup. And since you can feature up to two pets on each pair of socks, no one needs to feel left out.


20. The Documentarian

Mini Link Printer - $130

We all have that relative who snaps a million photos at every family event. Help them capture each precious moment with this unique gadget that essentially transforms a smartphone into a Polaroid camera. It makes it easy to customize and print out snapshots to display around the house or insert into a scrapbook for posterity.



READY TO GIVE YOURSELF THE ULTIMATE GIFT?


We want to be your real estate consultants through every season of life. So please don’t hesitate to reach out with questions or to ask for recommendations or referrals any time of year. And when you’re ready to give yourself the gift of a new home, contact us to talk about your options. From finding the right neighbourhood to identifying the amenities that will make the biggest difference to your quality of life, we’re always eager to help.

Read

20 Unique Home Gifts for Every Person on Your List

20 Unique Home Gifts for Every Person on Your List


Every year, it seems the holidays sneak up on us—and every year, that brings with it the dreaded last-minute gift panic. Finding a present that hits all the right notes can be surprisingly stressful, even when it comes to people you’ve known for years. 


But have no fear! We’ve lined up a list of gifts for every “type” on your list. And since we work in real estate, they’re all centred around home life. From the coffee snob to the sports enthusiast, these presents are the perfect way to bring beauty, function or a touch of whimsy to your loved one’s home this holiday season.



FOR THOSE WHO ARE ALWAYS IN THE KITCHEN


We all know someone whose kitchen is their happy place—but once all the basics are covered, it can be hard to find the perfect present. These gifts will be a treat for the chef, baker, or food lover on your list, no matter how well equipped they are. 

1. The Coffee Snob

Glass Pour-Over Coffeemaker - $75

Have a java lover on your list who just can’t get their brew right at home? This high-end pour-over system makes a smooth brew that can even be refrigerated and reheated so your recipient can enjoy a perfect cup at any time. 


2. The Foodie

Pink Oyster Mushroom Growing Kit - $65

Help your favourite gourmand create restaurant-quality meals with this kit, which allows them to grow delicious mushrooms right in their cupboard. All they’ll need to do is soak the package and then mist it with water for a few days, and voila—delicious organic mushrooms! 


3. The Baker

Vintage Etched Cake Stand - $87

If you’re lucky enough to have a fabulous home baker on your list, give a gift that reflects the joy their treats bring to others. This lovely glass cake stand is the platform that a beautifully decorated dessert deserves. 


4. The Tea Aficionado 

Flowering Tea Set - $35

Your favourite tea lover may have tried all of the herbal blends out there, but we bet they haven’t seen tea like this. This set contains two “blossoms” of tea leaves hand-sewn around flowers that bloom when you place them in the included glass teapot and add hot water.



FOR THOSE WHO WOULD RATHER BE IN THE BACKYARD


For many of us, time outdoors is the ultimate source of rejuvenation. The nature-lover on your list is sure to appreciate these presents that help them maximize that joy in their daily lives. 


5. The Gardener

Large Garden Tote - $66

Dedicated gardeners all need a great bag to carry their gear. This tote is attractive and sturdy and will help them keep their home’s exterior beautiful and welcoming. 


6. The Flower Lover

Monthly Flower Subscription - starting at $60/month

If your loved one prefers to enjoy their flora without all the work, a delivery of farm-fresh flowers is sure to surprise and delight. And you can keep the joy blossoming year-round with a weekly, semi-monthly or monthly subscription.


7. The Environmentalist

Reusable Stainless Steel Straws - $14

Know someone who is trying to bring less plastic into their home? This set of reusable metal straws means they’ll never have to buy a box of plastic straws again. And the assortment of sizes ensures that they’ll work with anything from a tall glass of water to a to-go mug. 


8. The Outdoor Adventurer

Solar Phone Charger - $50

Have a camper or adventurer on your list? This solar-powered phone charger, which comes with a built-in flashlight and compass, is a must-have. It will also make a great addition to their home emergency kit.



FOR THOSE WITH THEIR NOSE TO THE GRINDSTONE


Like it or not, most of us spend a good chunk of our lives working—whether at a job or on projects and chores around the house. These gifts are designed to make that work a bit easier and more enjoyable. 


9. The Remote Worker

Home Office Lap Desk - $45

Working at home can be great—in part because you can work from anywhere in the house. The remote worker on your list will appreciate this lap desk with a built-in mouse pad and phone slot, which will allow them to work comfortably from the couch or the bed without overheating their computer.


10. The Back-to-The-Office Worker

Bento Lunch Box - $35

If your loved one is heading back to the office, it doesn’t mean they have to give up the healthy habit of a home-cooked meal. Send them to work with this stylish lunch box packed full of nutritious food.


11. The Do-It-Yourselfer

Laser Measure - $35

The handy person on your list can say goodbye to unwieldy tape measures with this nifty device. It’s perfect for DIY projects of any size.


12. The Clean Freak

UV Sanitizer and Charger - $70

In the COVID-19 era, we’ve all become a little germaphobic. This UV smartphone sanitizer kills bacteria while it charges. Plus, its clever design enables you to hear your phone notifications while the device is in use.



FOR THOSE MOST PASSIONATE ABOUT THEIR HOBBIES


Of course, there’s a lot more to life than work. If you’re gifting a friend or family member who really lights up when they talk about their hobbies, we’ve got you covered. 


13. The Sports Enthusiast

Hockey Stick BBQ Set - $61

Looking for a gift for the sports enthusiast in your life that isn’t another jersey? These BBQ tools made from repurposed hockey sticks are a great pick. Perfect for cooking up food to watch with the game!


14. The Bookworm

The Book Lover’s Journal - $19

Know someone who loves to curl up on the couch with a good book? This journal will help the book-lover on your list keep track of what they’ve read, as well as their ever-growing “to-read” list. 


15. The Runner

Marathon Map Hydration Bottle- $49

Help the runner you love to stay hydrated (and motivated) with a water bottle inscribed with their favourite race route. It’s perfect for runs around the neighbourhood or just toting around the house.


16. The Tourist

Travel Backpack - $120

Make it easy for the travel lover on your list to bring back souvenirs. This lightweight backpack folds flat so it’s easy to pack but sturdy enough to carry their new treasures all the way home. 



FOR THOSE WHO PUT FAMILY FIRST


For many of us, the greatest joy in life comes from our relationship with our family. Help your recipient strengthen and celebrate those all-important connections with these thoughtful gifts. 


17. The New Parent

4-in-1 Baby Food Maker - $230

It’s hard to know what to buy for new parents once their registry is cleared out, but if they’re interested in making baby food at home, this tool is a must-have. It makes the process, from steaming to mixing, fast and easy.


18. The Genealogy Fan

DNA Kit - $129

Know someone interested in reconnecting with their ancestral home? This DNA kit can help them trace their geographical heritage and uncover their family history.


19. The Dog Person

Custom Printed Socks - $28

Is your friend’s dog their favourite family member? These adorable socks are sure to put a smile on their face as they cozy up on the couch with their pup. And since you can feature up to two pets on each pair of socks, no one needs to feel left out.


20. The Documentarian

Mini Link Printer - $130

We all have that relative who snaps a million photos at every family event. Help them capture each precious moment with this unique gadget that essentially transforms a smartphone into a Polaroid camera. It makes it easy to customize and print out snapshots to display around the house or insert into a scrapbook for posterity.



READY TO GIVE YOURSELF THE ULTIMATE GIFT?


We want to be your real estate consultants through every season of life. So please don’t hesitate to reach out with questions or to ask for recommendations or referrals any time of year. And when you’re ready to give yourself the gift of a new home, contact us to talk about your options. From finding the right neighbourhood to identifying the amenities that will make the biggest difference to your quality of life, we’re always eager to help.

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Hello friends. There's been a lot of talk lately about interest rates and where they're headed. Of course, because they are historically low, that means they can only go in one direction, right?? Anyway, recently there's been news and speculation about the Bank of Canada raising its overnight rate as soon as this upcoming spring in order to help with inflation. Initially the plan was to start doing this in the fall of 2022. Of course this is just speculation, but its definitely something we need to keep an eye on. I hope you find this informative. Cheers!



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New Build or Existing Home: Which One Is Right for You?

New Build or Existing Home: Which One Is Right for You?  


Homebuyers today are facing a huge dilemma. There simply aren’t enough homes for sale.1


Nationwide, the number of newly listed homes dipped slightly in September, down 1.6% from August. According to the Canadian Real Estate Association, that’s only about 2.1 months of inventory, which is far less than the five to six months that is generally needed to strike a healthy balance between supply and demand.2


Given the limited number of available properties, if you’re a buyer in today’s market, you may need to expand your search to include both new construction and resale homes. But it can feel a little like comparing apples to oranges.


Let’s take a closer look at some of the factors you should take into account when choosing between a new build or an existing home. 



TIMEFRAME


How quickly do you want (or need) to move into your next home? Your timeframe can be a determining factor when it comes to choosing between a new build or resale.


New Build

If you opt for new construction, you may be surprised by how long you have to wait to get the keys to your new digs. Nationally, the average timeline has more than doubled over the past 20 years from 9 to 21 months.1 And according to a survey by the Canadian Home Builders’ Association, nearly 60% of builders are reporting delays—averaging six weeks—due to supply-chain disruptions brought on by the pandemic.3


These supply shortages have led to soaring prices, causing some builders to cancel contracts or demand more money from unsuspecting homebuyers long after agreements were signed.4 Unfortunately, this scenario can throw a major wrench in your moving plans and delay your timeline even further.


To minimize these types of surprises, it’s crucial to have a real estate agent represent you in a new home purchase. We can help negotiate contract terms and advise you about the potential risks involved.


Existing Home

If you're in a hurry to move into your next residence, then you may want to stick to shopping for an existing home. 


You can typically move into a resale home on your closing date.5 While closing on an existing home can take anywhere from a few weeks to a few months, it’s almost always faster than the time it would take to build a new one. 


If you need to move even sooner, it’s sometimes possible to close faster, especially if you’re a cash buyer. In fact, many sellers prefer a quick closing, so it can give you an advantage in a competitive market. 



LOCATION


From commute to construction to walkability, there’s a lot to consider when choosing your next neighbourhood.


New Build

Canada is currently undergoing a major residential construction boom, and rural and smaller urban communities have been the first to benefit—primarily because the single-detached homes located in those areas take less time to build.6 That means, if you opt for a new single-family home, you could be facing a longer commute and ongoing construction for some time.


If you prefer a multifamily unit, there should be an increased supply coming on the market soon. Over the past year, condos and apartments have accounted for 55% of the housing starts. A growing number of these are located in master-planned communities that combine residential, retail, restaurants, and office space—enabling residents to live, work, and play in a single space.7 


Existing Home

An existing home is more likely to be located in a neighbourhood with mature trees, established schools, and a deeply-rooted community. As a result, you may find the neighbourhood's trajectory to be more predictable than an up-and-coming area. 


But the amenities may be lacking and the infrastructure dated when compared to newer communities. And while some homebuyers love the charm and eclectic feel of an older neighbourhood, others prefer the sleek and cohesive look of a newer development.



MAINTENANCE


Are you a DIY enthusiast, or do you prefer a low-maintenance lifestyle? Set realistic expectations about how much time, effort, and money you want to devote to maintaining your next home.


New Build

When you build a home, everything is brand new. Therefore, in the first few years at least, you can expect less required maintenance and repairs. A 2019 survey found that millennials' homebuying regrets often came down to maintenance issues, rather than other concerns.8 So if you would rather spend your weekends exploring your new neighbourhood than fixing a leaky faucet, you may be happier buying a turnkey build. 


That doesn't mean, though, that a new home will be entirely maintenance-free. In fact, depending on the builder, you could find yourself repairing more than you expected. Some home builders have reputations for shoddy construction and subpar materials, so it's important to choose one with a solid reputation. We can help you identify the quality builders in our area.


Existing Home

No matter how good a deal you got when you purchased it, you could come to regret buying an older home if it later costs you heavily in unexpected maintenance and repairs. For example, according to the home service professional network HomeStars, the average price to replace an HVAC system is $4,995. And you can expect to pay a similar amount ($4,750) for a new asphalt shingle roof.9


Fortunately, there are ways to prepare for these large expenditures ahead of time. We always recommend that our buyers hire a certified home inspector, whether they buy a new or existing home. Once we have the inspector’s report, we can negotiate with the seller on your behalf for reasonable repairs or concessions.



ENVIRONMENTAL IMPACT


On a quest for greener living? If so, there are several factors to consider when deciding on your next home.


New Build

There’s a growing demand for energy-efficient housing, and many builders are rising to the challenge. Currently, more than one million homes in Canada have received an EnerGuide Rating, which measures a home’s energy performance against a benchmark.10 While all newly-constructed housing must meet the National Building Code requirements, there are a number of certifications that homes can earn if they receive an EnerGuide rating that exceeds these minimum standards.


Examples include the Net Zero label from the Canadian Home Builders’ Association, which is awarded to homes that are 80% more energy efficient than conventional homes and utilize a renewable energy system to fulfill their remaining energy needs. ENERGY STAR and R-2000 are other well-regarded certifications that can be earned by homes that meet certain performance standards. So if energy efficiency is a top priority, a new home with a low EnerGuide rating or recognized designation may be a good choice for you.10


Existing Home

Of course, a basic tenant of sustainable living is: reduce, reuse, recycle. And since a resale home already exists, it automatically comes with a lower carbon footprint. Research has also shown that remodelling or retrofitting an older home is often greener than building one from scratch.11 


With some energy-conservation effort and strategic upgrades, environmentally-conscious consumers can feel good about buying an existing home, as well.



DESIGN


Double vanity? Kitchen island? Whirlpool tub? Must-have design features could drive your decision to build or buy resale.


New Build

With a new home, you can bet that everything will look shiny and perfect when you move in. Builders tend to put a lot of emphasis on visual details and follow the latest design trends. For example, newly-built homes are likely to include features that the majority of today’s buyers want, such as double bathroom sinks, kitchen islands, and walk-in pantries. They’re also less likely to include home theatre rooms or whirlpool tubs, both of which have lost mass appeal.12 


However, some buyers complain of the cookie-cutter feel of new homes since they are often built with a similar aesthetic. That doesn't mean, though, that you can't incorporate your own style. We can help you negotiate custom features and upgrades to personalize the space and make it feel like your own.


Existing Home

In some of the most coveted neighbourhoods, an older home with classic styling and character can be highly sought after. But unless the previous homeowners have invested in tasteful updates, an existing home is also more likely to look dated. 


While some buyers prefer the traditional look and character of an older home, others prefer something more modern.  If that’s the case, we can help you find a resale home that leaves enough room in your budget to renovate it to your liking.



WHICHEVER PATH YOU CHOOSE, WE CAN HELP


When it comes to choosing between a new build or an existing home, there’s no one-size-fits-all answer. There are numerous factors to consider, and you may have to make some compromises along the way. But the homebuying process doesn’t have to feel overwhelming.


We’re here to help. And in many cases, our homebuyer guidance and expertise are available at no cost to you! That’s because the home seller or home builder may compensate us with a commission at closing.


Some new-construction homebuyers make the mistake of visiting a builder’s sales office or even purchasing a home without their own real estate representative. But keep in mind, the builder’s agent or “sales consultant” has their best interests in mind—not yours. 


We are knowledgeable about both the new construction and resale home options in our area, and we can help you make an informed decision, negotiate a fair price, and avoid mistakes that can cost you time and money. So give us a call today to schedule a free, no-obligation consultation—and let’s start searching for your next home!



Sources:

  1. RBC -
    https://thoughtleadership.rbc.com/home-builders-are-tackling-canadas-housing-supply-shortage/
  2. Canadian Real Estate Association -
    https://creastats.crea.ca/en-CA/
  3. Financial Post -
    https://financialpost.com/real-estate/homebuilders-have-been-busy-during-the-pandemic-but-canada-still-needs-more-housing
  4. Better Dwelling -
    https://betterdwelling.com/canadian-home-builders-are-asking-buyers-for-more-money-to-finish-building/#_
  5. Legal Line -
    https://www.legalline.ca/legal-answers/when-can-you-move-into-your-newly-purchased-home/ 
  6. Financial Post -
    https://financialpost.com/real-estate/there-has-never-been-more-housing-under-construction-in-canada-but-the-city-that-needs-it-the-most-is-missing-the-boom 
  7. BC Business - https://www.bcbusiness.ca/2021-Real-Estate-Report-With-a-push-from-COVID-the-BC-property-market-enters-new-territory
  8. Bankrate -
    https://www.bankrate.com/real-estate/homebuyer-regret-survey-may-2021/
  9. HomeStars -
    https://homestars.com/cost-guides/
  10. Canadian Home Builders’ Association -
    https://blog.chba.ca/2021/05/14/are-all-energy-efficient-homes-the-same/
  11. Advanced Materials Research - https://www.researchgate.net/publication/271358381_Comparative_Study_of_New_Construction_and_Renovation_Project_Based_on_Carbon_Emission 
  12. Canadian Home Builders’ Association -
    https://blog.chba.ca/2020/11/26/todays-new-home-buyers-preferences/
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Shut Down Home Intruders With These 7 Safety Strategies

Shut Down Home Intruders With These 7 Safety Strategies


A break and enter occurs every 90 seconds in Canada.1 Fortunately, there are some proven tactics you can use to decrease your likelihood of a home invasion.


Most burglars won’t go to extreme lengths to enter your home. They are looking for easy access with minimal risk. A monitored security system can be an effective deterrent—homes without one are 300% more likely to be burglarized—but it isn’t the only way to protect your property.2 The strategies below can help to maximize your home’s security and minimize your chances of being targeted by intruders.


Thinking about listing your home? We have some additional recommendations for you. Contact us to find out the procedures we use to keep our clients and their property safe and secure during the buying and selling process.


1. Check Your Doors and Windows


According to insurance company SGI Canada, the most common entry point for a burglar is through a basement or ground floor door or window.1 So securing these points of entry is essential.


  • Evaluate the condition of your doors and locks. 


A steel door is generally considered the strongest, but many homeowners prefer the look of wood. Whatever material you choose, make sure it has a solid core and pair it with a sturdy deadbolt lock that is a minimum of 2.5 cm long when thrown.3


  • Add window locks and security film.


Aftermarket window locks are an easy and inexpensive upgrade that can provide an additional layer of protection for your home. Choose a lock that is compatible with your window frame material and a style that is appropriate for the window type. And consider using a specialty film on windows that are adjacent to a door. Security film holds shattered glass in place, making the windows more difficult to penetrate.4


2. Landscape for Security


When it comes to outdoor landscaping, many of us think about maintenance and curb appeal. But the choices we make can impact our home’s security, as well. Thieves target homes that they can enter and exit without being detected. Here are a few tweaks that can make your property less appealing to potential intruders.


  • Increase visibility from the street.


A privacy hedge may keep out nosy neighbours, but it can also welcome thieves—so trim overgrown trees and shrubs that obstruct the view of your property. According to police officers, they offer an ideal environment for criminals to hide.5


  • Place thorny bushes and noisy gravel below windows.


Don’t eliminate shrubbery altogether, though. Certain hedges can actually offer a deterrent to robbers. Plant thorny rose bushes or sharp-leaved holly beneath your first-story windows for both beauty and protection. Add some loose gravel that crunches when disturbed.


3. Light Your Exterior


When it’s dark outside, criminals don’t need to rely on overgrown shrubbery to hide. Luckily, a well-designed outdoor lighting system can make your home both safer and more attractive.


  • Install landscape lighting.


Eliminate pockets of darkness around your yard and home’s perimeter with strategically placed outdoor lights. Use a combination of flood, spot, well, and pathway lights to add interest and highlight natural and architectural details. 


  • Use motion-activated security lights to startle intruders.


The soft glow of landscape lighting isn’t always enough to dissuade a determined intruder. But a motion-activated security light may stop him in his tracks. And if you choose a Wi-Fi connected smart version, you can receive notifications on your phone when there’s movement on your property.


4. Make It Look Like You’re Home


Motion-activated lights aren’t the only way to make an intruder think you’re at home. New technology has made it increasingly possible to monitor your home while you’re away. This is especially important since most burglaries take place between 10 am and 3 pm, when many of us are at work or school.


  • Turn on your TV and leave a car in the driveway.


A survey of convicted burglars revealed that the majority avoid breaking into homes if they can hear a television or if there’s a vehicle parked in the driveway.7 If you’re away from home, try connecting your TV to a timer or smart plug. And when you travel, leave your car out or ask a neighbour to park theirs in your driveway.


  • Install a video doorbell.


In that same survey, every respondent said they would knock or ring the doorbell before breaking into a home. A video doorbell not only alerts you to the presence of a visitor, it also enables you to see, hear, and talk with them remotely from your smartphone—so they’ll never know you’re gone.


5. Keep Valuables Out of Sight


Few home invasions are conducted by criminal masterminds. In fact, a survey of convicted offenders found that only 12% planned their robberies in advance, while the majority acted spontaneously.8 That’s one of the reasons security experts caution against placing valuables where they are visible from the outside.9


  • Check sightlines from your doors and windows.


Don’t tempt robbers with a clear view of the most commonly stolen items, which are cash (think purses and wallets), jewelry, electronics, firearms, and drugs (both illegal and prescription).5 Take a walk around your property to make sure none of these items are easily visible.


  • Secure valuables in a safe.


Consider the possessions that are on display inside your home, as well. It’s always a good idea to lock up firearms, sensitive documents, and expensive or irreplaceable items when you have housekeepers or other service providers on your property.


6. Highlight Your Security Measures


While it’s prudent to hide your valuables, it’s equally important to advertise your home’s security features. In surveys, convicted burglars admit to avoiding homes with obvious protective measures in place.7,8


  • Install outdoor cameras.


Security cameras are the most common home protection device and for good reason.10 Not only do they help prevent crime (burglars are known to avoid them11), they can offer peace of mind for homeowners who want to sneak a peek at their property while away. And if you do experience a break and enter, security camera footage can help police identify your intruder.


  • Post warning signs.


Security system placards and beware-of-dog signs are also shown to be effective deterrents.8 Of course, you should back up your threats with a noisy alarm and loud barking dog for maximum impact.


7. Limit What You Share on Social Media


Social media platforms can be a great way to stay connected with friends and family, but it’s easy to reveal more than you’ve intended. Be thoughtful about what you’re posting—and who has access.


  • Delay posting photos or travel updates.


It can be tempting to upload a concert selfie or pictures from your beach vacation. But these types of photos scream: “My house is unoccupied!” Try to wait until you’ve returned home to share the photos on social media. 


  • Set privacy restrictions on your accounts.


Think twice about connecting with strangers or casual acquaintances on social media. If you enjoy sharing family updates and personal photos, it’s safer to limit your followers to those you truly know and trust.



YOUR HOME IS SAFE WITH US


We take home security seriously. That’s why we have screening procedures in place to keep our clients and their homes safe when they are for sale. We also remind our buyers to change the locks before they move into their new homes and provide referrals to locksmiths and home security companies that can help. To learn more about our procedures and how you can stay safe during the buying and selling process, contact us to schedule a free consultation!




Sources:

  1. SGI Canada -
    https://www.sgicanada.ca/news?title=preventing-break-ins
  2. Bankrate -
    https://www.bankrate.com/insurance/homeowners-insurance/house-burglary-statistics/
  3. Square One -
    https://www.squareone.ca/resource-centres/home-personal-safety/preventing-break-ins
  4. SafeWise -
    https://www.safewise.com/blog/10-simple-ways-to-secure-your-new-home/
  5. Toronto Police Department -
    https://www.torontopolice.on.ca/crimeprevention/environmental.pdf
  6. Canadian Security Professionals -
    https://www.cspalarms.ca/blog/safety/home-robberies-by-the-numbers-when-you-should-be-the-most-alert/
  7. KGW News -
    https://www.kgw.com/article/news/investigations/86-burglars-say-how-they-break-into-homes/283-344213396
  8. Science Daily -
    https://www.sciencedaily.com/releases/2013/05/130516160916.htm 
  9. Security.org -
    https://www.security.org/home-security-systems/home-invasion-protection/
  10. SafeWise -
    https://www.safewise.com/resources/security-stats-facts/
  11. The Guardian -
    https://www.theguardian.com/business/2017/aug/18/former-burglars-barking-dogs-cctv-best-deterrent
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9 Tips for Buying and Selling Your Home at the Same Time


9 Tips for Buying and Selling Your Home at the Same Time


Selling your home when you still need to shop for a new one can feel daunting to even the most seasoned homeowner––especially when the demand for new homes keeps rising, but the supply feels like it's dwindling.¹ You're not alone either if you're already feeling drained by the complex logistics of trying to sell and buy a new home all at once. 


Searching for a new home can be exciting, but many homebuyers admit that it can also be stressful, especially if you live in an unpredictable market with plenty of competitors. Unfortunately, waiting out a competitive housing market isn’t always the best idea either since homes are in notoriously short supply across Canada, and listings are expected to remain limited in the most coveted neighbourhoods for some time.² 


That doesn't mean, though, that you should just throw up your hands and give up on moving altogether. In fact, as a current homeowner, you could be in a better position than most to capitalize on a seller’s market and make a smooth transition from your old home to a new one. 


We can help you prepare for the road ahead and answer any questions you have about the real estate market.  For example, here are some of the most frequent concerns we hear from clients who are trying to buy and sell at the same time.



“WHAT WILL I DO IF I SELL MY HOUSE BEFORE I CAN BUY A NEW ONE?”


This is an understandable concern for many sellers since the competitive real estate market makes it tough to plan ahead and predict when you'll be able to move into your next home. But chances are, you will still have plenty of options if you do sell your home quickly. It may just take some creativity and compromise. 


Here are some ideas to make sure you're in the best possible position when you decide to list your home:


Tip #1: Flex your muscles as a seller. 

In a competitive market, buyers may be willing to make significant concessions in order to get the home they want. In some cases, a buyer may agree to a sell and lease back agreement (also known as a "sell house and rent back" option) that allows the seller to continue living in the home after closing for a set period of time and negotiated fee. 


This can be a great option for sellers who need to tap into their home equity for a downpayment or who aren’t logistically ready to move into their next home. If you're dealing with an investor rather than a traditional buyer, you may even be able to negotiate a lengthy lease and lower rent payment than your current mortgage.³ 


However, leaseback agreements can be complex, with important legal, financial and tax issues to consider.⁴ At minimum, a carefully-worded contract and security deposit should be in place in case of any property damage or unexpected repairs that may be needed during the leaseback period. 


Tip #2: Open your mind to short-term housing options. 

While it can be a hassle to move out of your old home before you’re ready to move into your new one, it’s a common scenario. If you’re lucky enough to have family or generous friends who offer to take you in, that may be ideal. If not, you’ll need to find temporary housing. Check out furnished apartments, vacation rentals and month-to-month leases. If space is an issue, consider putting some of your furniture and possessions in storage. 


You may even find that a short-term rental arrangement can offer you an opportunity to get to know your new neighbourhood better—and lead to a more informed decision about your upcoming purchase.


Tip #3: Embrace the idea of selling now and buying later.

Instead of stressing about timing your home sale and purchase perfectly, consider making a plan to focus on one at a time. Selling before you’re ready to buy your next home can offer a lot of advantages. 


For one, you’ll have cash on hand from the sale of your current home. This will put you in a much better position when it comes to buying your next home. From budgeting to mortgage approval to submitting a competitive offer, cash is king. And by focusing on one step at a time, you can alleviate some of the pressure and uncertainty.



“WHAT IF I GET STUCK WITH TWO MORTGAGES AT THE SAME TIME?”


This is one of the most common concerns that we hear from buyers who are selling a home while shopping for a new one, and it’s realistic to expect at least some overlap in mortgage payments. But unless you have a large enough income to comfortably carry two mortgages, you may not pass Canada's beefed up mortgage stress test until you have a contract on your first home. (You can use the Financial Consumer Agency of Canada's Mortgage Qualifier Tool to check your odds.⁵)  


Assuming you can secure financing, however, it's still a good idea to examine your budget and calculate the maximum number of months you can afford to pay two mortgages before you jump on a new home. Potential stopgap solutions, such as bridge financing, can also help tide you over if you qualify. 


If you simply can’t afford to carry both mortgages for any amount of time, or if you are concerned about passing the mortgage stress test, then selling before you buy may be your best option. (See Tip #3 above.) But if you have some flexibility in your budget, it is possible to manage both a home sale and purchase simultaneously. Here are some steps you can take to help streamline the process:


Tip #4: As you get ready to sell, simplify. 

You can condense your sales timeline if you only focus on the home renovations and tasks that matter most for selling your home quickly. For example, clean and declutter all of your common areas, refresh your outdoor paint and curb appeal and fix any outstanding maintenance issues as quickly as possible. 


But don't drain unnecessary time and money into pricey renovations and major home projects that could quickly bog you down for an unpredictable amount of time. We can advise you on the repairs and upgrades that are worth your time and investment.


Tip #5: Prep your paperwork. 

You'll also save valuable time by filing as much paperwork as possible early in the process. For example, if you know you'll need a mortgage to buy your next home, get pre-approved right away so that you can shorten the amount of time it takes to process your loan.⁶


Similarly, set your home sale up for a fast and smooth transition by pulling together any relevant documentation about your current home, including appliance warranties, renovation permits, and repair records. That way, you're ready to provide quick answers to buyers' questions should they arise. 


Tip #6: Ask us about other conditions that can be included in your contracts. 

Part of our job as agents is to negotiate on your behalf and help you win favourable terms. For example, it’s possible to add a contract condition known as a "subject to sale" or "sale of property" (SOP) condition to your purchase offer that lets you cancel the contract if you haven't sold your previous home.⁷ This tactic could backfire, though, if you're competing with other buyers. We can discuss the pros and cons of these types of tactics and what’s realistic given the current market dynamics.



“WHAT IF I MESS UP MY TIMING OR BURN OUT FROM ALL THE STRESS?” 


When you're in the pressure cooker of a home sale or have been shopping for a home for a while in a competitive market, it's easy to get carried away by stress and emotions. To make sure you're in the right headspace for your homebuying and selling journey, take the time to slow down, breathe and delegate as much as possible. In addition:


Tip #7: Relax and accept that compromise is inevitable.

Rather than worry about getting every detail right with your housing search and home sale, trust that things will work out eventually––even if it doesn't look like your Plan A or even your Plan B or Plan C. Perfecting every detail with your home decor or timing your home sale perfectly isn't necessary for a successful home sale and compromise will almost always be necessary. Luckily, if you've got a good team of professionals, you can relax knowing that others have your back and are monitoring the details behind the scenes.


Tip #8: Don't worry too much if your path is straying from convention.

Remember that rules-of-thumb and home-buying trends are just that: they are estimates, not facts. So if your home search or sale isn't going exactly like your neighbours' experience, it doesn't mean that you are doomed to fail. 


It's possible, for example, that seasonality trends may affect sales in your neighbourhood. So a delayed sale in the summer or fall could affect your journey––but not necessarily. According to the Canadian Real Estate Association, the housing market used to be more competitive during the fall and spring and less competitive during the winter. But it's not a hard and fast rule and real estate markets across Canada have seen major shifts in recent years.⁸ Every real estate transaction is different. That's why it's important to talk to a local agent about your specific situation.


Tip #9: Enlist help early.

If possible, call us early in the process. We'll not only provide you with key guidance on what you should do ahead of time to prepare your current home for sale, we'll also help you narrow down your list of must-haves and wants for your next one. That way, you'll be prepared to act quickly and confidently when you spot a great house and are ready to make an offer. 


It's our job to guide you and advocate on your behalf. So don't be afraid to lean on us throughout the process. We’re here to ease your burden and make your move as seamless and stress-free as possible.



BOTTOMLINE: COLLABORATE WITH A REAL ESTATE PROFESSIONAL TO GET TAILORED ADVICE THAT WORKS FOR YOU


Buying and selling a home at the same time is challenging. But it doesn't have to be a nightmare, and it can even be fun. The key is to educate yourself about the market and prepare yourself for multiple scenarios. One of the best and easiest ways to do so is to partner with a knowledgeable and trustworthy agent.


A good agent will not only help you evaluate your situation, we will also provide you with honest and individually tailored advice that addresses your unique needs and challenges. Depending on your circumstances, now may be a great time to sell your home and buy a new one. But a thorough assessment may instead show you that you're better off pausing your search for a while longer. 


Contact us for a free consultation so that we can help you review your options and decide the best way forward.



Sources:

  1. Canadian Real Estate Association (CREA) National Statistics -
    https://creastats.crea.ca/en-CA/
  2. Scotiabank Global Economics Housing Note - https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.housing.housing-note.housing-note--may-12-2021-.html 
  3. CBC News -
    https://www.cbc.ca/news/canada/toronto/housing-real-estate-toronto-market-sell-stay-rent-1.4075093 
  4. Appraisal Institute of Canada - https://www.aicanada.ca/article/possible-valuation-issues-with-life-lease-housing/
  5. Financial Consumer Agency of Canada -
    https://itools-ioutils.fcac-acfc.gc.ca/MQ-HQ/MQ-EAPH-eng.aspx 
  6. Government of Canada - https://www.canada.ca/en/financial-consumer-agency/services/mortgages/preapproval-qualify-mortgage.htm
  7. RBC Bank -
    https://www.rbcroyalbank.com/mortgages/selling-buying-home.html 
  8. Canadian Real Estate Association -  https://www.realtor.ca/blog/are-spring-and-fall-housing-markets-a-thing-of-the-past/20405/1361 
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