Timing Is Everything by Darrin DeRoches August 8 - 14, 2013 In real estate timing may be the most important factor in a successful sale. Most people think you just list a house and it sells but there is a lot more too just throwing it up on the market. A good agent understands timing and it can make all the difference. A client just contacted me about selling her home and wants it on the market ASAP. She has been going through a long and drawn out separation and after a year of trying to make her partner realize the relationship is over it is time to sell the matrimonial home. She wants me to list it now while the iron is hot. Problem is it is August. This is the slowest time of the year and timing can make a huge difference on the bottom line.     You only get to enter the market once and the timing of this can make or break a sale. The first week on the market is crucial and you want to make a great first impression. The month of August is so busy for families with all the vacations and getting ready for the start of school — real estate is the last thing on their minds. Once everyone is settled in school and all the summer activities are over everyone starts to look towards the end of the year. This is when the market is hot and the perfect time to list your home. August is the slowest time of the year but September is then the hottest time of the year. I can easily list the property today as it is in a great area and it will sell but why not wait a month and list it in the hottest market. They will get top dollar in September and then she can find a property to downsize into once the market cools into October. The good old sell high and buy low scheme.     Timing also comes into play when selling your home in a hot market. Picking the right offer to work with can make or break your sale. In a typical sale the buyers will take five business days to do home inspections and get bank financing. These five days can be an eternity in a hot market. If they do not remove clauses and your property is forced to sit off the market you can lose your momentum. A good broker will know how to handle this type of situation and use it to their advantage. Your home can be the perfect property but if it goes on then off the market — potential buyers have moved on to the next one and it can very difficult to attract their attention again. If you are considering on buying or selling soon take the time to meet with a broker now. You should have a game plan in place, pictures taken; brochures printed and are prepared to list your property the right way at the right time. Need help figuring it out just give me a call or email. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca.

Fix Your Issues

by Darrin DeRoches August 1 - 7, 2013

If you are trying to sell your house and you keep hearing the same complaint – do something about it. Every home has something that does not work for potential buyers. It could be parking, paint color, price, carpets etc. Every home has some drawback to potential buyers and if you hear it more than once it is an issue.     I have a listing which has a cat smell and mold. The property is listed as a fixer upper and even priced accordingly but all the feedback comes back to two issues. An offer fell apart due to these issues and now showings are going well but the smell and mold are hurting the potential sale. I had a conversation with the sellers and they are starting to realize that with a little work and money they can easily fix these simple issues which will bring them a sale. The problem is that they are divorcing and neither party will take the initiative – yet.     The husband is starting to realize that he should take on the two issues and help me sell his house but time and money are an issue.  As a real estate broker you can only work with the hand that is dealt to you. So what can we do to get a deal done? I have to think outside of the box and adjust our marketing. I called in a favour and obtained a home inspection which clearly lays out all of the faults, mold, smells and defects of the property. I will send this report to all interested parties to ease their “what if” concerns and show them exactly the scope of the issues. Information can make or break a deal even if it is bad information. Full disclosure shows everyone what they are dealing with and we will also send them all the comparables in the neighbourhood to prove the true value of the home. We could go one step further and get quotes to fix all the problems but sometimes too much information can be detrimental. You have to let the buyer come to their own conclusions and if you lay it all out they may start to smell something is fishy (but really it is the cats).     People are constantly asking me to call them with a “fixer upper” and when you have such a “diamond in the rough” everyone starts making excuses. They try to find a reason why they are not willing to do the work. We tell them it will only cost 10 grand to fix everything then they say 20 grand is the price. You have to let the buyer believe they know best and if they fix the property they will be 10 grand ahead of the game. In time with an open and honest marketing plan the house will sell. Someone can finish the upgrades and have a great home in a great neighbourhood if they can just get over the smell – damn cats! V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca.

Aerotropolis

by Darrin DeRoches July 11 - 17, 2013

The biggest ruling in Hamilton’s history on boundary expansion happened this week and the Ontario Municipal Board has ruled for a 555 hectare expansion around the airport. This ruling allows the expansion up until 2031. This will open the doors for companies to create an estimated 80,000 related jobs and bring in a huge amount of new tax revenue – $70 million. It has taken 10 years for this ruling and the airport is going to become a huge asset to the city. Opening up this land is opening up our city to huge opportunities not only around the airport but within the city itself.     The government recently opens the doors for another regional airport in the Pickering area and this development could stall the growth of our airport and city. The recent ruling allowing the land to be developed will give us a fast start to grow our airport before the Pickering airport gets off the ground. We have had recent success with our business parks with huge national companies moving out of the congested – and flooding – city of Toronto. These moves are only the beginning. Major companies can now set up in Hamilton and by–pass the high costs and congestion of Toronto. Our rail, ports, highways are a great link to millions of potential customers and these companies can just build new headquarters right beside an international airport.     This will create amazing developments and the city will continue to grow. The real estate market is strong in the city but this influx of development will only create an even stronger market. You will not only see the increase in Ancaster but also downtown, east and west. Our city is very accessible, where you can get anywhere within 15 minutes, so everyone will feel the positive impact of this huge change in our airport and the lands around it. More investments and more jobs will only increase the values of your homes. The fact there will not be any increase in residential land around the airport will help the whole city to fight urban sprawl and force us to expand our downtown and underdeveloped areas.     I do not think we understand how important this ruling really is. If we just announced that we were getting a NHL team the city would be dancing in the streets. The fact the lands around the airport are now prime and ready to be developed has more impact to the city bottom line and standing in the golden horseshoe. Huge companies will be setting up shop in our city and this alone may help us one day land the NHL team will have always long for. The corporate money is what the NHL is looking for – not the rabid hockey culture we can provide. Major companies setting up shop around our jewel of an airport may be the missing link we need to lure the team we deserve. If not I am happy to welcome the investment in our city and help us become the city we deserve to be. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca.

Buyers With Cold Feet

by Darrin DeRoches June 27 - July 3, 2013

The first time buyer has a lot going on when making the hundreds of decisions on buying their first property. They have to work up all their nerve to take the plunge and sign on the dotted line. Finding the right property is the easy part when working with first time buyers. The hard part is managing all of the opinions of the friends and family. Buying any property is a huge decision and a big financial move so most first time buyers will look to family and friends for advice. The only problem with this is most of these friends give advice and opinions without knowing anything about the property.     A recent deal fell apart in the last seconds on the advice of a friend. The buyer was so excited about buying his first home and was moving pretty fast. We showed him eight properties and he picked his favorite. We signed a deal for a great price and he was pre–approved for a mortgage and was ready to finalize the deal. We put in the clauses of financing and home inspection. At first he was not interested in doing a home inspection so we sent the deal off to his bank to get the mortgage and waited for the answer. A day later the buyer called me and wanted to set up a home inspection. We had a discussion about the house and he spoke to a friend and they strongly suggested he do a home inspection. Not a problem, so I sent him three home inspectors and he picked the one he wanted and set up the inspection. The inspector did the inspection and sent the buyer a 96 page detailed inspection via email and then the phone started ringing.     The buyer was milling over the very detailed inspection and had a few concerns. I explained the problems and had him call the inspector to get more information. After a couple of days of explaining the inspection, everything seemed fine and the bank had approved him for the mortgage so we just had to remove clauses.  We set a time to remove the clauses and firm up the deal. We meet and the buyer starts to change his tune. The buyer and his friend had gone over the inspection and could not get over one major issue. I understood his concerns, called the sellers agent and expressed our concerns and they agreed to have the issue resolved at their expense. Sounds great. Issue resolved – let’s buy this house. Cold feet!     The buyer and his friend could not get over all the minor issues with the house and did not feel comfortable buying the property. The sellers were willing to fix all issues, the inspector explained these were minor things and the house was in great overall shape but the wisdom of a friend and cold feet prevailed. No deal. One word of advice — listen to the professionals and your gut — not a friend. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca.

Look Back To See The Future

by Darrin DeRoches June 20 - 26, 2013

We are breaking records in sales and everyone is jumping on the bandwagon that the bleak outlook for the real estate market in 2013 was completely unfounded. Sounds like the same old broken record if you ask me. At the beginning of the year they always forecast the “big doom and gloom”. Now that we are in the middle of the year, and hitting above average in sales and listings with an increase in values, well let’s all agree it will not be that bad. At the end of the year we will beat all expectations but next year will be a “huge bubble burst!” again, which never happened.     Let’s be realistic about the real estate market and realize that it has to level out and maybe even dip in the near future. The best way to predict the future is to look into the past and see that the market always corrects itself. The mortgage rates are staying low and the rules have been tightened but people are finding a way to still buy more and more expensive homes.  I can hit you with all the statistics but when you read them it is a bit confusing. Sales are literally about one or two homes higher than last year but the average sale price has increased and that is the real news. Get used to the fact that Hamilton is not a second class city and people are investing in our real estate and companies are moving from Toronto and Burlington and new companies are sprouting up. Why?     Hamilton is the only real city next to Toronto and you can get so much more for your money in Hamilton. Whether it is commercial, land or residential, our values are holding strong. Barton Street just had a successful “open house” on their street and people are taking notice. Sure the street is a little rough but one by one it will become better and better. I had a past client contact me yesterday to look at properties in Hamilton and his big question was where to buy? He is not ready to buy until next year and by that time prices will still be rising and he will be priced out of certain areas. Look at James Street. There are properties listed for over a 1.2 million dollars and quite frankly it seems a little high. Five years ago those same properties would be crazy to ask for half of that price and no one would even think about buying them. Barton Street has a long way to go as does the rest of James Street but the new Go station and new football stadium will help tie these areas together and you will see a big difference.     Five years from now the waterfront, James Street and Barton Street will be drastically different and if you buy into it now you will be able to double your investment. Quality real estate will always sell or rent for a high price so buy low today and sell high in five years. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca.

Break That Mortgage!

by Darrin DeRoches May 30 - June 5, 2013

I may not be a mathematician but I do understand when it is a good time to make a move and make money. I have spoken with several mortgage brokers about current rates and where they are going. They are all saying the same thing. If you have a current mortgage over 4 per cent, then it is the time to break it open and re–mortgage. At this point I could pull out some charts or graphs to explain the savings but let me put it in simple terms.     Today’s mortgage rate is as low as 2.79 per cent for a 5 year term so if you are paying over 4 per cent then it is worth it to make the change. Yes there is a cost to break a mortgage but it usually cost about .05 per cent which is nominal. Take this half of one percent and the 1.2 per cent difference it can really make a difference. I renewed my mortgage last year since it was up for renewal and it saved me almost $250 a month. Back then I wrote about it and suggested everyone should take a look at their mortgages and do the same. A year later mortgage companies are now advertising for you to break your mortgage and realize the savings. The reasoning is pretty simple – competition.     The mortgage game is starting to get more and more competition and that is good for the consumer. Some companies will even cover the costs of breaking a mortgage and switching over to them. Some offer free gifts but the best way to go is look for the best deal. The rates are supposed to hold until at least next year but they have to rise sometime and if your mortgage is over 4 per cent you will be renewing when the rates are rising and this is the real problem. You break your mortgage today and take the longest term with the lowest rate. It is generally a 5 year but some companies are pushing the 4 year since they know the rates will be higher then and why give you another year at these ridiculously low rates.     So where do you start? Take a look at your mortgage rate and if it is over 4 per cent then send me an email. I can recommend you to several different banks or brokers who will help you make the best decision and show you not only the savings but the peace of mind that knowing that you will have the best rate possible for the next five years. These brokers will shop your mortgage around and find you the best deal out there. If you are comfortable at your bank then just email me which bank you would like to be at and I can refer you to the best mortgage agent in that bank. I stayed with my bank by simply “negotiating the rate” and by doing this we have a great low rate and they paid all costs. Break that mortgage! V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca.

Don't Believe The Hype

by Darrin DeRoches June 6 - 12, 2013

This past weekend there was an article written about Hamilton Real Estate Market called Housing Gone Crazy: Bidding Wars and I am a huge supporter of the city but don’t believe the hype. In any market, there are always bidding wars and houses going over asking but you have to look at the other side of the story to really understand what is going on in our housing market. The article is not wrong in its reporting of these situations, the fact that listings are way down, and it is a seller’s market, but let’s not get excited that the market is becoming unaffordable and that all these deep pocketed Toronto buyers are running into town and buying anything they can find.     The situation where a home went $170,000 over asking is a reflection of the situation and not of the market itself. The agent “purposefully” listed it $70,000 under their perceived selling price, which is a risky way to sell a home. This is done to create interest and create the “bidding war”. In this case the home sold $170,000 over asking and in reality $100,000 more than the agent expected. Who cares what they did? It worked this time, but this type of “salesmenship” does not always work and what if the home is priced way under asking and no one offers that price? The house sits and does not sell and when remarketed it is a real hard sale since you have to explain the huge rise in price.     Pricing a home under or over the “real” market price can really mess up a sale and then bring bad press to the market. If this house was priced accordingly and then sold for a great price fast, the owners would still have the sale and money in their pockets but no headlines or story to tell “$170,000 over asking.” You do not read about the houses that sell for the right price and fast. Which is the real story in today’s market. The home that is priced right is getting a lot of attention, maybe multiple offers but most importantly – they are selling quickly. A fast sale is the best indicator of the market. Most agents do not price homes way under value to create headlines but rather price them right and sell them quickly at top dollar. This is what is happening in our market today and that’s what makes it a strong, vibrant market.     The market has not “Gone crazy” but rather it is strong and powerful like the city it is in. I feel bad for all the agents who had calls this week from their sellers quoting the article that the market has gone crazy and asking why their property is not selling. The indicators are showing faster sales and an increase in selling prices, but don’t get caught up in the hype and list your house too high because it will just sit on the market. For every pseudo success story there are five homes sitting on the market priced wrong. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca.