Pricing Strategies When Selling Your Home

When you decide to sell your home, setting your asking price is one of the most important decisions you will ever make. Depending on how a buyer is made aware of your home, price is often the first thing he or she sees. Many homes are discarded by prospective buyers as not being in the appropriate price range before they even have a chance of a showing.

Your asking price is often your home's "first impression", and if you want to receive the most money you can for your home, it's imperative that you make a good first impression.

Setting the asking price of your property is as much about knowing how buyers think as it is about how much the property is worth.

1. Price it right
In order to set the right price, check out your competition first. A little real-estate research can be handy. Take a look at homes sold in your neighbourhood. Ask yourself: what are they selling for? How long have they been on the market? Study the supply and demand within your neighbourhood to consider whether to price your home above or below the market value.

Pricing your home lower than your competitors can essentially generate more offers, thereby driving the price higher. On the other hand, if the price is too high and you risk the buyers going into “sticker shock”.

2. The missing penny trick
To grab the attention of potential buyers, Take a pricing tip from discount retailers like Wal-Mart. Take, for example, $19.99 vs. $20.00. While it is only a penny difference between the two, the $19.99 price just seems like a better deal! Why? Because when people see a price, they make judgements in a fraction of a second whether it is a good or bad deal. And, since we read from left to right, the first number receives the most focus. Therefore, a home listing for $199,999 will generate more attention than $200,000 because people will perceive $199,999 to be a better deal. Retailers have been using this proven strategy for a long time, make it work for you.

3. Raise the reference point
You can raise people’s reference point by asking for a high price, people use that information in setting their reference price. In addition, you can affect the reference price of buyers by telling them the price of competing properties in the neighbourhood. However, pass along this information only if the comparisons are in your favour.

On the other hand, if you set a price that is implausibly high, the impact will be less than if you set a price that's more reasonable.

4. Send the right message
People associate precise numbers with bargains. If a house should sell for around $300,000, then offering a round number like $295,000 will convey quality and willingness to negotiate, and choosing a higher but precise number like $295,485 would indicate a bargain.

A precise number may also signal that you have given careful consideration to the price and you aren't inclined to negotiate. So you may want to use this trick with caution.

Trying to settle on an asking price for your home? If it's a new development and wants to give the impression of prestige, go for the nicely rounded (up) price. But if you're going for the quick sale and you want to give the impression of a bargain, you would want to go for the precise number.

5. Make the price cuts easy-to-understand
We perceive easily computable discounts as better than larger discounts. A discount from $395,485 to $385,485 might seem better than from $395,485 to $378,495.

When a home has been on the market too long and very few offers have been made, the logical option is to reduce the asking price. But by how much? The trick here is to reduce the price by a nice, easy-to-calculate number, so buyers can easily calculate their savings.


The longer your house sits on the market, the less cash it commands, use these expert tricks to sell your house fast and maximize your profit

Buying A Condo as an Investment

Not too many years ago, buying a condo was considered a compromise move. Condos are more affordable, particularly for first-time buyers who have a tough time breaking into the housing market. Until recently the cheap entry fee entitled you to apartment-style living, no yard to call your own, and lusterless appreciation—not an attractive package to most home buyers.

This may be changing. The latest statistics from Canadian Mortgage and Housing Corporation (CMHC) show condos make sense for investment or ownership. Apart from the effects of Covid-19, rentals are increasing every year according to recent market statistics.  

New construction favouring condos
Recent statistics show that the construction of condos is actually increasing. New construction of singles and semis have fallen steadily since 2002. Young people seeking a downtown lifestyle, empty nesters downsizing, and people tired of commuting, all make condos extremely popular and support a robust market.

Hi-rise sales stable
Condo sales have had some ups and downs, but sales volume by year has been quite steady. The rental market for condos is improving as potential first-time buyers postpone home purchases in favour of renting. Renters are less inclined to leave their apartments and pursue homeownership.

Is a condo a good investment?
As with any real estate, a condo could be a good or bad investment. It all depends on the building and the market. There are some great condo investments in many areas around the country and there are also some bad investments.

The condo situation looks promising. The percentage of total sales is expected to continue rising from 25% of all sales in 2010 to 35% this year. Condos are selling well and renting well, making them a good investment whether you're planning on moving in or leasing out.

Condo buying tips:
Look for a condo that's in a development that has a high ratio of owner-occupants to renters. Some lenders won't lend on condos that have a high rate of absentee ownership. Also, owner-occupants tend to be more concerned about keeping things going well in the development.

Find out what the condo fees are and what is covered by this fee and include it in your costing. Some condos prohibit pets, and some have parking, storage, and renting restrictions. Read and understand the Covenants, Conditions, and Restrictions (CC&Rs) and any other pertinent governing documents before you complete a purchase.

It's usually best to avoid buying into a condo complex where the homeowner's association is involved in litigation. To find out if there are any other associated issues that you might want to avoid, read copies of the minutes from recent homeowner's association meetings. One of the best ways to get the straight scoop on a condo project is to talk with some of the current residents. Find out what they like and what they don't like about living there before you decide to buy.

What are the tax, legal, and financing considerations?
If you decide to invest in a condominium rental property, many of your personal expenses may be deducted from income in addition to the normal tax deductions such as a mortgage, interest, depreciation, and other condominium-related expenses. For example, you would normally be entitled to set up a small office in your current residence for managing your investments, which would include keeping your records. You could deduct a percentage of all your home-related expenses. The normal formula is to take the square footage of the office area that you are using relative to the total square footage in your home. In general terms, 10% to 15% or more is usually deducted for that portion.

In addition, you would be entitled to deduct a part of the car-related expenses involved in managing your investment portfolio, whether it is one rental property or more than one. The percentage of all your car-related expenses can vary, obviously depending on the usage of the car relating to your investment.

If you are seriously contemplating investing in a condominium, it is important to consult your real estate agent and seek the advice of a competent tax and accounting professional, and legal advice from a lawyer specializing in condominium law.

Don't forget to claim your home-buyer's tax credit this tax season!

The Home Buyers’ Amount (HBA) is a non-refundable credit that allows first-time purchasers of homes, and purchasers with disabilities, to claim up to $5,000 in the year when they purchase a home.

The non-refundable tax credit rate of 15% means the actual reduction of your taxes will be $750. If your federal taxes are less than $750, your credit will be reduced accordingly since it is a non-refundable credit.

You can divide the credit between your return and your spouse or common-law partner’s return, but the combined total claimed cannot be greater than $5,000.

Who is Eligible for the First-Time Home Buyers Tax Credit?
You, and anyone you purchase the home with, must be considered a first time home buyer to be eligible for the tax credit. The home must be used as your principal residence, and if you purchase with your spouse, common-law partner, or even a friend, then either one of you can claim the credit (or share it). However, the combined total cannot exceed $750.

What is a qualifying home?
To qualify for the HBTC, a home must be a housing unit located in Canada, including mobile homes, condominiums, and apartments. A share in a co-operative housing corporation that entitles you to possess, and gives you an equity interest in, a housing unit located in Canada also qualifies.  However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

Also, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence no later than one year after it is acquired.

How to Claim the First-Time Home Buyers Tax Credit?
You claim the HBTC On Schedule 1 when you file your Canadian income tax return. For more details. see Home Buyers’ Amount from the Canada Revenue Agency.

The home must be registered in your or your spouse's or common-law partner's name in accordance with the applicable land registration system. Claimants should ensure that documentation supporting the purchase transaction is available if requested by the Canada Revenue Agency. Claimants are also responsible for making sure that all applicable eligibility conditions are met.

Keep the HBTC in mind when you consider buying a Canadian home. It’s just another great reason to take the final step of real estate homeownership.

Average Home Price in Kitchener - Waterloo Sets a New Record

KITCHENER-WATERLOO, ON (Feb 4, 2021) ––There were 351 residential homes sold through the Multiple Listing Service (MLS® System) of the Kitchener-Waterloo Association of REALTORS® in January, an increase of 24.9 per cent compared to January 2020, and an increase of 1.4 per cent compared to the previous month. The previous 10-year average number of residential sales for January is 286.

 

“January’s home sales were more active than what we typically see this time of year,” says Nicole Pohl, President of KWAR. “But nothing has been typical about our housing market.”

 

Total residential sales in January included 201 detached (up 31.3 per cent from January 2020), and 71 condominium units (up 97 per cent). Sales also included 21 semi-detached homes (unchanged) and 56 freehold townhouses (down 17.6 per cent).

 

In January, the average sale price of all residential properties sold in 2021 increased by 23.9 per cent to $695,582 compared to the same month last year. Meanwhile, the average price of a detached home hit a new milestone by exceeding 800-thousand-dollars for the first time, coming in at $853,945 an increase of 27.3 per cent. During this same period, the average sale price for an apartment-style condominium was $383,196 for a decrease of 1.4 per cent. Townhomes and semis sold for an average of $566,345 (up 29 per cent) and $626,512 (up 29.3 per cent) respectively.

 

The median price of all residential properties sold in January increased 25.9 per cent to $680,000 and the median price of a detached home during the same period increased 23.3 per cent to $801,500.

 

“With demand for homes unabated and consumer preferences leaning predominantly toward single detached homes, in January we saw buyers paying a premium for this property type,” says Pohl. “Conversely, even as condo sales were increasing in January, we saw prices for this style of housing soften by comparison.”

 

KWAR’s president points to supply not being able to keep up with continuing demand, much of it coming from the GTA, for the strong increases in home prices in Waterloo Region and in many other parts across the province. The number of months of inventory in Waterloo region has numbered less than 1 month since October. The number of months of inventory represents how long it would take to sell off current inventories at the current rate of sales.

 

There were 432 new listings added to the MLS® System in KW and area last month, a decrease of 7.4 per cent compared to January of last year, and 37.6 per cent decrease compared to the previous ten-year average for January.

 

The average number of days to sell in January was 16 days, compared to 22 days in January 2020 and a previous 5-year average of 30 days

 

Top Energy-Saving Tips for Your Home

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While we all use energy differently, in general, energy is mostly used for heating and cooling the home, with hot water coming in second.

Good energy habits help you save money and the way we use energy plays a big role in how much we’re paying for it. For example, if you leave the hot water running constantly while you’re shaving, you’re using a lot of hot water just to rinse the razor a few times.

Simple choices we make every day can go a long way to help us manage our energy use, cut costs, and protect the environment around the year. Here are a few tips to help you conserve energy in your home.

1- Choose off-peak hours
Take advantage of lower energy prices during off-peak hours. Consider running your dishwasher, clothes washer, and dryer early in the morning, in the evening, or on weekends when electricity rates are lowest.

2- Use the dishwasher and washer wisely
Try to cut down on power by air drying instead of using the heater. Try washing your clothes in cold water to save hot water costs.

3- Use a programmable thermostat to reduce energy use
Install a programmable thermostat to automate your heating and cooling. It makes it easier to reduce your energy use when you’re not home and when you’re sleeping.

4- Use your appliances properly
Did you know that an uncrowded fridge works more efficiently than a crowded one? However, a freezer works best when they are two-thirds full. When you’re using the dishwasher wait to do a full load. A half-empty dishwasher uses the same amount of energy as a full one.

5- Consider caulking and weather stripping
Plugging up air leaks is relatively inexpensive and delivers a great return in summer and winter. Look for cracks around windows and doorframes. Also check the sill plate, where your home’s foundation meets the frame. It could be a big source of air leaks.

6- Find your top 10 locations for compact fluorescent lamp (CFL) bulbs
It pays to replace your most frequently used incandescent bulbs with CFLs. They use 75% less power and last up to 10 times longer.

7- Buy ENERGY STAR® Appliances
Save energy and fight climate change with ENERGY STAR qualified products. They use less energy, save money, and help protect the environment. According to ENERGY STAR, if just one in 10 homes used ENERGY STAR-qualified appliances, the impact could be compared to planting 1.7 million new acres of trees. Switching to these appliances is not only good for the environment but is easy on your pocketbook. Although these appliances may cost more, you can reduce your energy bill by approximately $80 per year.

The age, condition, and efficiency of your appliances play a big role in how much energy you use, so it’s important to keep them in good working order, and at some point, consider upgrading to the most energy-efficient models.

Budget Friendly Home Improvements

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Renovating your home will increase its value and make it a nicer place for you to live. But many people don't have the money to spend on expensive housing upgrades. Here are a few budget-friendly projects to add beauty, value, and selling appeal to your home.

1.Give your kitchen a facelift 
The kitchen is the heart of any home, so spend a few hundred dollars to spice it up. You can replace the kitchen faucet set, add new cabinet door handles, and update old lighting fixtures. If you have a dark or small kitchen, make it look larger and brighter by using a lighter finish on the cabinets.

If the kitchen countertop is outdated, consider using a Laminate countertop. They are inexpensive and come in all types of colours and patterns, some of which resemble much more expensive solid surface materials, such as stone or tile.

2. Liven up the bathroom
Buy "expensive-looking" hardware for taps and showers and get a sophisticated new look without cleaning out your wallet. Like in the kitchen, soft lighting and warm colours here can go a long way in increasing home value. Add vases and plants as design elements and make sure vanity mirrors are at an accessible height for every member of the family.

If your bathroom requires any plumbing or electrical fixing, get a professional to do it.

3. Add a fresh coat of paint 
New paint makes everything look clean and bright, and you can do it yourself relatively inexpensively on interior walls.

Paint with a neutral colour such as beige. It will make the house seem larger, and it will be inoffensive to buyers. And don't forget the ceiling. Paint the trim a contrasting colour.

4. Add wood trim and cornicing
These are cheap and easy do it yourself, but can add tons of "WOW" factor to the look of your home. Simple ceiling trim and armchair railing are the easiest and most typical upgrades found in newer homes.

To make an even bolder statement, paint the walls a neutral, flat colour and paint the trim a high gloss white.

5. Consider your flooring options
If your home has hardwood floors covered with carpeting, consider restoring the original hardwood floors, particularly if the carpeting is old and worn.

If not, you can shampoo or steam clean your carpets, or use a dry cleaning system, which requires no water or steamer, and dries instantly while killing virtually all mold and bacteria. Apply according to the manufacturer’s instructions, and then vacuum. If all else fails, get a professional to do the carpets for you. You'd be surprised how much better your carpet will look after a good cleaning.

6. Enhance the lighting
Consider replacing the dining room lights with an eye-catching chandelier. Create a comfortable ambiance with recessed lighting that is controlled with dimmer switches to provide the appropriate amount of light for different activities.

Use indirect lighting focused away from television and computer screens to reduce eyestrain.

7. Install modern light switches and outlets
Some of the new style switches can be easily installed using the wires already running to the old switches. Turn off the power to the room or entire house before doing any work. The new outlets look nice and give the impression that the electrical wiring in the house is newer than it really is.

8. Create more storage
Extra storage is always a plus. You don't need to renovate to add more storage space, you can create more space for free and without remodeling your home! Revamping your existing closets can do the job.

Many old houses lack closet space. If you have cramped storage areas, add do-it-yourself wire and laminate closet systems to bedrooms.

Make your closets serve a variety of purposes. Try adding a shelving unit to a clothes closet where you can store pantry goods and other items.

9. Reframe your front entry
The front door is the statement that you make in your house, and a front door in need of work gives a wrong first impression.

Refinish the front door with a new coat of paint. Replace that worn, flimsy little knob on your main entry door with a more substantial-looking handle-and-lock set. A nice, big piece of hardware signals newcomers that this is a solid home.

While you are preparing the door for the finish coat, be sure to check the weather stripping for damage. With soaring energy costs, adding some new weather stripping can quickly pay you back in utility savings.
Placing planters on either side of the front door will also enhance the image of your entry.

10. Landscape the front yard
A nicely mowed lawn, a few well-placed shrubs, and a swept walkway make a great first impression. Get your green thumb on, install some new sod, plant a few evergreen shrubs, and give your front yard a good cleanup. This will draw attention to your home and change people's perception of your home.

Today, there are dozens of choices of plant materials that can add colour and style to your front yard. Stop by your local landscaping center — they'll have dozens of ideas for you.
Ready to renovate but on a tight budget? Spend money on what can be seen versus what can't be seen. Think new door handles, not new doors, and spiffed-up appliance fronts, not new appliances. Fix up the exterior first, then the interior.

If you put some of these tips in action, you will boost your home's value and live happily ever after in your dream home. Enjoy!

Design Trends as a Result of the Pandemic

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The pandemic has influenced many areas of our lives these past few months. It’s not surprising that it’s also affecting the design of our homes. We are adapting our personal spaces to reduce our exposure to the coronavirus.  

Let us look at some of the biggest home design trends influenced by the pandemic.

The growth of home offices
Home offices, once considered a luxury, are now becoming more popular. Requests for purpose-built offices with systems capable of handling remote work and a professional backdrop for video meetings have grown. If you don’t have the space for a dedicated office, consider turning small closets into an extra office nook or sectioning off corners of a room to add a workspace that blends in with the rest of the space.

No-touch tech
Smart homes are growing in popularity, especially no-touch technology. Controlling lights and appliances via voice-activation helps avoid touching surfaces, especially in the kitchen and bathroom. Sensor-controlled lights and taps, more commonly seen in public spaces before the pandemic, are now popular in homes. Smart systems with indoor air quality management are also increasingly popular.

Indoor air quality
The coronavirus and other germs can easily spread through the air. Spending more time at home in smaller spaces and with others has created more demand for air purifiers, ranging from stand-alone models to sophisticated smart systems. Open windows are an easy option in warmer months, but other air freshening methods are needed when the temperature drops outside. There’s a wide variety of air purifiers that may help. Many have specific designs to reduce airborne irritants like allergens, dust, and pet dander. 

Declining appeal of open floor plans
The open floor plan combines the kitchen and living space to form one big open room. Is not the best for privacy or concentration. As many people transitioned to remote work, a lack of barriers to buffer noise became a real problem. We may start to see more pocket doors used to close off open spaces, kitchens slightly angled off from the living room, and private nooks.

Bidet attachments
The bidet toilet attachment has made inroads in the North American market due to the pandemic. When toilet paper was scarce, these attachments gained popularity as a sanitary alternative. Using comparably less water than it takes to produce toilet paper, the bidet is also seen as environmentally friendly. Toilets with built-in bidets may be more affordable sooner than we think.

More storage especially in the kitchen.
During the pandemic, people rushed to stock up on food, toilet paper, and hand sanitizer. So, the need for storage became greater. Homeowners added extra shelving to pantries or overflow storage in laundry rooms and garages. We see more demand for kitchen island rolling carts that can double as extra storage and counter space.

Outdoor space is now more important
Homeowners are looking for ways to extend their indoor space to the outdoors. The front porch, for example, has become important as a place where you can be outside and connect with neighbours from afar. 

Connecting to the outdoors is important for our mental health. This is especially true for those living in apartments and townhouses. Demand for balconies, renovations opening rooms to the outside, and enlarging windows is increasing. Balconies and smaller spaces provide an important sense of calm when you add comfy chairs, plants, and water features. When temperatures drop, get a front seat to the outside and create a reading seat by framing a window with bookshelves on either side and adding a cushioned storage unit or bench in between.