Thursday, July 23, 2015

What is the TRUE value of your home?


A new study found that homeowners tend to overestimate the value of their properties.

Do you know what your house is worth? Would you concede that there’s a chance that your estimate of its value might be higher than what a buyer would pay?

A new statistical study, published in the Journal of Housing Economics, found that homeowners on average “overestimate the value of their properties by about 8 percent.” Tapping into federal databases, researchers concluded that overvaluations are probably tied to owners’ erroneous estimations of the capital gains they’ve accumulated in the house.

The study is in sync with a monthly survey conducted by Quicken Loans, which compares estimates provided by applicants for refinancings with results from appraisers. The latest Quicken study also found a gap between what owners think their homes are worth and actual market value. Compared with the Journal of Housing Economics findings, the divergence in the Quicken survey was narrow — just seven-tenths of 1 percent — though in 2008 it averaged around 7.5 percent.

Nobody can blame owners for thinking optimistically about their homes’ value, right? It’s human nature. But here’s a question recently put to real estate appraisers in different parts of the country: Other than the obvious emotional attachments that colour our perceptions of our homes, where do we tend to err when it comes to estimating value?

Top of the list: Unrealistic expectations about how much the improvements you’ve made to the house will add to its resale value. Because you’ve paid the bills, you know precisely how much you sank into the kitchen remodeling, bathroom upgrades, landscaping and the new roof.  Consumers may think they can get back what they put into the improvements they’ve made over the years. But it doesn’t work that way.
Annual real estate surveys consistently show that dollar-for-dollar returns are rarely the case. The 2015 “Cost-vs-Value” study by Remodeling magazine and members of the National Association of Realtors in 102 markets found that many high-ticket improvements don’t come close to paying off what they cost.

For example, based on national averages, a major kitchen remodeling costing nearly $57,000 would return just 67.8 percent — $38,485 — in resale value. A backup power generator returned just 59.9 percent and a home office remodeling less than half, 48.7 percent.

A closely related issue: Over-improvements of your home compared with the neighborhood norm.

Owners sink tens of thousands of dollars into a super-premium gourmet kitchen in a neighborhood where nobody else has installed such luxury. When you renovate a kitchen or other feature of your house to a level typically seen only in communities where homes cost double what they do in yours, you’re not going to recoup that extra expense.

Another example of where owners get off track, according to appraisers: They install highly personal but costly items — features they love passionately or need, but most potential buyers don’t.

Say you spend thousands of dollars to install an elaborate indoor lap pool or spa. It may be just what the doctor ordered for your health, but prospective buyers may not want it. They may even plan to remove it if they purchase, giving you zero in added value in their offer. Ditto for expensive, special-taste items such as all-glass conservatory rooms, over-the-top backyard “environments” and, in some northern markets, swimming pools.

Finally, appraisers say owners may not understand the valuation dynamics of their local market. Owners frequently estimate value based on the square footage of the house. Yet in some areas, land value is really high, so sales with larger lots have a higher price per square foot, which owners of below-average-size lots erroneously apply to their own home values.

Bottom line: Without access to key data — recent sales comparables, accurate information on appreciation rates over time — it’s tough to know exactly what your house is worth. If you really want to know, contact me today for a free Home Value Report!

Monday, July 20, 2015

Five Questions Sellers Should Ask When Choosing a Real Estate Representative

Selecting a real estate representative to assist in the largest financial transaction a person will likely ever make is a critical part of the home selling process. In a challenging economic environment where competition among real estate companies is on the rise, choosing the agent that’s right for you can be a confusing task. 

Home sellers should start by interviewing several real estate agents to find someone with whom they “connect.”  However, chemistry is not the only variable to consider. The length of time an agent has been in the business, his or her home sale success rate andknowledge of the local market can also play a significant role in the decision-making process


To jump-start the conversation, I suggest these five essential questions home sellers should ask before selecting a real estate representative. 

1. How long have you been in the real estate business and what has your success rate been in terms of home sales over the past 12 months? The length of time a real estate representative has been in the business and their home sale success rate demonstrates their knowledge and expertise in the industry. Ideally, a home seller will want to work with an agent who has a high percentage of completed transactions within your home’s price range.

2. What was the average amount of time it took to sell those listings? Comparing marketing times between the agents you are interviewing will provide you with an indication of how well that agent markets homes.
3. What was your list-price to sale-price ratio? Significant differences between original listing prices and ultimate sale prices can be an indication that the list prices quoted at the outset were unrealistic.

4. What is your online marketing plan to sell my property? In Canada, the vast majority of home buyers begin their home search on the Internet. Therefore, the real estate representative you select should have a strong online marketing presence as well as be visible through social media outlets in order to reach the widest possible audience.Websites such as Coldwell Banker On Locationa branded YouTube™ channel, allow real estate agents to showcase their listings and local knowledge by tapping into the power of video and offering consumers a new way to search for homes online.

5. Do you have references you can share from past clients? References allow you to gain additional insight into the day-to-day workings with the real estate agent. Gathering reputable references will help ensure that you select the best real estate representative for your needs. 

I'm willing to put my results and statistics up against anyone else's.  Contact me today to find out why I give you the BEST chance to sell your home.   

Friday, July 17, 2015

Best Canadian Cities to Live in

As many locals know, Waterloo is often considered where it's at.  With the diversity of cultures, varied employment including high-tech, insurance, financing and skilled manufacturing and, of course, world renowned Universities, it is a focal point in South Western Ontario.

Well, Money Sense Magazine confirms this - see where Waterloo ranks in the list of top 209 cities.

Check out the article here: http://www.moneysense.ca/canadas-best-places-to-live-2015-full-ranking/


For more local information or a free Home Value Report, contact me today!

Thursday, July 9, 2015

BUSY MONTH FOR HOME SALES IN JUNE for Waterloo Region



 It’s been a busy June with 626 home sales in Kitchener-Waterloo and area though the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR). This represents a 9.4% increase compared to June of 2014, and 15.8% above the 5 year average for the month June.

Residential sales in the first half of 2015 totalled 2,949, an 8.1% increase compared to the same time last year, and 2.7% above the 5-year average. This marks the highest number of homes sold in the first half of the year since 2010.

On a year-to-date basis, the average sale price of all residential sales (KW and area) increased 2.6% to $347,105 compared to 2014. Single detached homes sold for an average price of $396,191 an increase of 1.3% compared to last year. The average sale price for a condominium units sold in the first half of the year was $235,081, an increase of 5.3 per cent over 2014.

The housing market in Kitchener-Waterloo continues to show strength. Buyers have confidence in Waterloo Region, that combined with low mortgage and interest rates should continue to support home sales in 2015.

Sales for the month of June in KW and area included 407 single detached homes (up 7.1 %), 137 condominium units (up 24.5%), 42 semi-detached (up 7.7%) and 35 freehold townhouses (down 12.5%).

Across KW and area the average sale price of all residential sales through the KWAR’s MLS® System increased 0.2% to $351,259 compared with June 2014. Looking at transactions strictly in the cities of Kitchener-Waterloo residential sale prices increased 3.2 percent to $344,405 compared to the same time last year.

Single detached homes sold in June across KW and area had an average price of $408,569 an increase of 0.9% compared to last year. Condominium market prices were up 4.2%, with the average condo unit selling for $225,390.

For specific property and neighbourhood values, contact me today for Home Value Report.


Bathroom Remodelling Ideas - on Budgets from $1,000 to $10,000





Additional storage: Depending on the size of your bathroom, you might want to look at how you can optimize storage. Think about a new medicine cabinet, baskets or a standing shelf if your bathroom has the room. You could spend anywhere between $100 and $200 on storage depending on which kind you decide to install.

Regrouting: To make your bathtub or shower look fresher and cleaner, regrout the tile. Scrub with a brush and a bleach solution. If you can't get the debris off, think about removing the grout and reapplying a new layer. The cost of grout is about $20.

New exhaust fan: The exhaust fan in your bathroom helps prevent mildew and mold growth. If the exhaust fan is worn down and not running properly anymore, it's time to replace it. The cost of a new bath fan averages at about $100, but it's a worthwhile investment to avoid mildew growth.

Green showerhead: How much money are you paying for water right now? Do you like long, luxurious showers? To avoid cutting down your time in the hot water, think about replacing your showerhead with its green alternative. Low-flow showerheads can cost as little as $50 and are easy to install. Plus, you can still get high water pressure.

New faucet: Another investment you can make in your bathroom is to replace your faucet. A new faucet can really change the look of your sink and cut down costs on your water bill as well, depending on which one you choose. Most faucets cost about $50 to start, though the best types will cost upwards of $100. If you want an efficient faucet, keep an eye out for the Watersense logo.


$10,000:

When you have a more sizeable budget, you don't have to rely so much on your two hands to do the work. You can hire local contractors for some of the projects in the bathroom, which saves you a lot of time and hassle. That doesn't mean you can have the bathroom gutted and completely remodeled, though. A project like that will cost upwards of $22,000. But at least you can make some more major changes to the room including:

Granite countertops: Granite countertops have always been a popular investment for kitchens and bathrooms. However, they can cost a lot of money -- about $3,100. So to save a few dollars, choose granite that has imperfections or countertops in neutral colors.

New accessories: Little accessories can make a big impact. Maybe it's the overhead lighting, towel racks or drawer handles in the vanity. While these seem insignificant, together they can drastically increase the appeal and atmosphere of the bathroom. Do not replace your lighting fixtures on your own, but changing out bulbs with their LED or CFL alternatives is okay -- and it cuts down on your electricity costs.

Refinishing fixtures: While you might think about replacing one or two of your bathroom fixtures, you shouldn't try to replace all of them. Instead, think about refinishing some of your fixtures like the sink, shower and bathtub. If they're made of cast iron, porcelain or fiberglass, this is a cheap investment with great results. Your fixtures will look almost brand new for a fraction of the cost to replace them. For example, the cost to refinish a bathtub is $300 on the low end and $1,000 on the high end, as compared to replacing it for $2,200 on average.

More green updates: There are a lot of green updates you can make around the bathroom to save money on your utility bill. As reiterated before, CFL and LED lighting helps, as do low-flow showerheads and Watersense faucets. In addition, you can invest in dual-flush or no-flush waterless toilets, also under the Watersense label.

Conclusion
Bathroom remodeling doesn't have to be an expensive investment. Despite your budget, there are always ways to save and still end up with a new, revitalized space. If you don't have the budget to do what you want in the bathroom, you can at least make a few adjustments until you're ready to gut the space for more major changes

Contact me today for a free Home Value Report!

Friday, July 3, 2015

Jazz Up Your Powder Room - Big Time!

More home owners are turning to the powder room to make a dramatic statement and packing in a lot of design into these often small spaces, according to the 2015 Houzz Bathroom Trends Study, a survey of more than 3,000 home owners about their bathroom remodeling plans.

Nearly two thirds of powder rooms are less than 40 square feet, but home owners are finding they can still make these spaces attention-getting, whether with a trendy sink or flashy wallpaper.
Home owners report that their powder room renovations are mostly driven by the desire to do cosmetic touches, and therefore, home owners are finding affordable, do-it-yourself upgrades to spice up the space.

Most home owners say they want to upgrade their powder room because they want the design to make a bolder statement – a more popular response among home owners than for any other bathroom in the house, the survey finds. The powder room is more likely to have personalized touches in the design, such as eclectic styles, signature sinks, hardwood floor, and wallpaper.
Just how bold are some home owners getting with their powder room?

Here are a few examples:

Flashy wallpaper
 
 

Dramatic tiled walls
 

 
 
Unusual mirrors and a chandelier
 

 Furniture-like vanities and signature sinks