Courtesy of the Real Estate Weekly - May 4th, 2012

With close to 25,000 homes on the market between Chilliwack and Vancouver, how do you make YOUR home stand-out?  Try some decorative urethane millwork pieces on for size.  Okay, not real wood, but they look like it without spending a lot of money.  

Project 1: Surround the interior of an entryway door with pilasters and a crosshead to maximize the look of your main door's interior.

Project 2: Install curved brackets under kitchen countertops and shelves to add dimension and visual appeal to the room.

Project 3: Add a 2 piece ceiling medallion around the top of a light fixture or ceiling fan in less than 10 minutes.  Interlocking pieces snap together for fast results.

Project 4: Use painted or stained mouldings to surround bath or bedroom mirrors.  Make sure the mouldings are moisture resistant.

Project 5:  Install a set of pallisters on both sides of the shower stall and a door crosshead overhead to upgrade the look of your kitchen or bathroom. 

Project 6:  To upgrade the look of a boring kitchen island add decorative brackets or corbels as accent pieces.  Just be mindful of where the knees go!

Project 7: Top of a standard bookshelf with an iimpressive combination acorn pediment to add style to any room.

Project 8: Arrange a collage of ceiling medallions on a wall for a decorative feature.  Faux finish, paint and stain in a variety of unique colours.  You can get small sampler paint colours from Benjamin Moore.

Project 9: Use a one-peice square or cathedral louver trim piece to frame a favorite poster or painting.  Finish with paint or stain to accent the image inside.

Project 10: Add a large sunburst window pediment half round above a bed to serve as a decorative headboard.

The solid urethane pieces, such as from Fypon, come preprimed and ready for installation.  All products need to be glued and then nailed or screwed to the wall, then painted.

So, have fun and get to work making YOUR home stand out above the rest and sell quicker.

The Best Asking Price for your Home

Setting a realistic price for your home that reflects current market values will help sell your home quickly and for top dollar.  When you price your home properly, you increase the chances that the offer you receive will nearly match your asking price, and that there will be competing offers—which may net you even more in the long run. 

Your property has the best chance of selling within its first seven weeks on the market.  And, studies indicate that the longer a property stays on the market, the less it will ultimately sell for.  A property priced 10 % more than its market value is significantly less likely to sell within this window than a property priced close to its actual market value.  About three-quarters of homes on the market today are 5-10 % overpriced.  Sellers will usually over-price their homes by this margin if, either, they firmly believe the home is worth more than what the market indicates, or if they want to leave room for negotiation.  Either way, if you choose to over-price your home by this amount, you run the risk of increasing the amount of time your home spends on the market, and decreasing the amount of money you’ll ultimately receive. 

At the other end of the selling spectrum are houses that are priced below a fair market value.  Under-pricing often occurs when the owner is interested in a quick sell.  You can bargain on these homes attracting multiple offers and ultimately selling quickly at—or above—the asking price.

The knowledge and skills of an experienced Realtor will be invaluable when determining an appropriate asking price.  It is the job of your Realtor to know the current market and market trends inside and out, to be closely connected to the real estate market at large, and to be aware of other properties currently for sale in your particular area.  Based on this range of connections and knowledge, your Realtor should counsel you on how to price your home properly in order to attract the highest price possible, in the shortest period of time.

Before approaching this process, you should first do some homework yourself.  You’ll need to know the workings of the current market before you even begin to think about setting an asking price.  The market will always influence a property’s value, regardless of the state of a home, or its desirability.  Here are the types of market conditions and how they may affect you:

1. Seller’s Market:

A Seller’s market is considered a “hot” market.  This type of market is created when demand is greater than supply—that is, when the number of Buyers exceeds the number of homes on the market.  As a result, these homes usually sell very quickly, and there are often multiple offers.  Many homes will sell above the asking price.

2. Buyer’s Market:

A Buyer’s market is a slower market.  This type of market occurs when supply is greater than demand, the number of homes exceeding the number of Buyers.  Properties are more likely to stay on the market for a longer period of time.  Fewer offers will come in, and with less frequency.  Prices may even decline during this period.  Buyers will have more selection and flexibility in terms of negotiating toward a lower price.  Even if your initial offered price is too low, Sellers will be more likely to come back with a counter-offer. 

3. Balanced Market:

In a balanced market, supply equals demand, the number of homes on the market roughly equal to the number of Buyers.  When a market is balanced there aren’t any concrete rules guiding whether a Buyer should make an offer at the higher end of his/her range, or the lower end.  Prices will be stable, and homes will sell within a reasonable period of time.  Buyers will have a decent number of homes to choose from, so Sellers may encounter some competition for offers on their home, or none at all.

Remember, a Realtor is trained to provide clients with this information about the market, helping you make the most informed decision possible.  The right Realtor will guide you through the ups and downs of the market and keep you up-to-date with the types of changes you might expect. 

Evaluate your house in the other main areas that affect market value:

1. Location:

The proximity of your home to amenities, such as schools, parks, public transportation, and stores will affect its status on the market.  Also, the quality of neighbourhood planning, and future plans for development and zoning will influence a home’s current market value, as well as the ways in which this value might change. 

2. Property:

The age, size, layout, style, and quality of construction of your house will all affect the property’s market value, as well as the size, shape, seclusion and landscaping of the yard.

3. Condition of the Home:

This includes the general condition of your home’s main systems, such as the furnace, central air, electrical system, etc., as well as the appearance and condition of the fixtures, the floor plan of the house, and its first appearances.

4. Comparable Properties:

Ask your Realtor to prepare you a general market analysis of your neighbourhood, so you can determine a range of value for your property.  A market analysis will provide you with a market overview and give you a glimpse at what other similar properties have been selling for in the area.

5. Market Conditions/ Economy:

The market value of your home is additionally affected by the number of homes currently on the market, the number of people looking to buy property, current mortgage rates, and the condition of the national and local economy.

If you're wondering about renting vs buying and what to do some scenarios, take a look at this link

http://www.canadamortgage.com/calculators/rentvsown.cgi   and do some playing around.

I did a calculation of a $300,000.00 purchase, with $60,000.00 down (20%), 5yr, 30yr amortization at 4.05% term, fees of $250 per month and taxes at $200.00 per month (no other costs for my sample), and came out with the following scenario.

Now, I know that there are extra costs involved with both renting and owning a house, but this will give you a rough idea of what your money can do for you.  Have fun, play around, and you may be surprised.

The rental altern   Rent vs. Own Calculator   Use this calculator to compare options for renting or buying a home. Shows the Break-Even annual increase in a home value. The Rent vs. Own Calculator determines how much a property must increase in value each year to perform as well as the rental option. Fill in all the fields below and click the "Calculate" button to view the results. Purchase : Monthly : OWN Monthly : RENT Price : Taxes : Rent : Down Pmt : Other : Incr %/yr : Rate : % Condo Fee : Other : Mtg. Type: Cdn US   OTHER Rates :       Term: 0 yr1 yr2 yr3 yr4 yr5 yr6 yr7 yr8 yr9 yr10 yr11 yr12 yr13 yr14 yr15 yr16 yr17 yr18 yr19 yr20 yr21 yr22 yr23 yr24 yr25 yr26 yr27 yr28 yr29 yr30 yr     Amort. 1 yr2 yr3 yr4 yr5 yr6 yr7 yr8 yr9 yr10 yr11 yr12 yr13 yr14 yr15 yr16 yr17 yr18 yr19 yr20 yr21 yr22 yr23 yr24 yr25 yr26 yr27 yr28 yr29 yr30 yr Savings %: Insur. Fee: Yes No     Marg. Tax %: Home Sales Fee : %         ative will allow you to save and invest both the downpayment of $ 60,000 and the monthly rental savings, initially at $ 398. At the end of the 60 month term your before-tax investment will have grown to $ 90,405, assuming the savings rate of 2 % per annum. After paying annual income taxes at 0 % on the investment interest gain, the investment will have grown to $ 90,405. In order for the home purchase alternative with a mortgage interest rate of 4.05 % to perform as well as the rental option, the annual rate of property appreciation must be at least 1.11 % . Total property appreciation of 5.7 % together with principal repayment would result in homeowner's equity of $ 99,917 in 60 months, less the 3 % cost to market the home of $ 9,512, for a net gain of $ 90,405. If the home value increased by more than $ 17,050 ( 5.7 % ) in 60 months, purchasing would be a better financial option than renting. Canadian Calculation - Compounding Semi-Annually NOTE: High Ratio mortgage required (down payment less than 25%. Insurance fees should apply. Insurance fees calculated are as set out by Canada Mortgage & Housing Corporation - CMHC).   RENT OWN Down Payment (20 %)   $ 60,000 First Mortgage Amount (Includes Ins. Fee of $ 0) $ 240,000 TOTAL PRICE   $ 300,000   Monthly Costs       Mortgage Payment   $ 1,148   Property Taxes   $ 200   Condo Fees   $ 250   Other Costs $ 0 $ 0   Rent Payments ($ 1,200 Month 1 to $ 1,200 Last Month) $ 1,200   Total Monthly Payment  $ 1,200  $ 1,598 Monthly Cash Savings  $ 398     RENTAL cost always lower than Monthly OWNERSHIP cost in example. Future Value at Term ( 60 months)       Down Payment Saved (@ 2 %) $ 66,305     Monthly Cash Savings (@ 2 %) $ 24,100     Taxes assumed to be paid annually (12th period) on interest.       Required Home Price at Term End   $ 317,050   Less : Mortgage Balance   ( $ 217,134 )   Less : Sales Commission (@ 3 %)   ( $ 9,512 ) Equity at Term  $ 90,405  $ 90,405   Less Income Taxes on gain (@ 0% )  ( $ 0 )  $ 0 NET After Taxes  $ 90,405  $ 90,405   Required ANNUAL Home Price Increase Rate 1.11 % Required TOTAL Home Price Increase % (60 months) 5.7 % Required TOTAL Home Price Increase (60 months) $ 17,050 It is always difficult to forecast home price increases, but if the likely Annual Increase is higher than 5.7 %, then buying a home would be the better option. If home prices do not rise by 5.7 %, then renting would be a better option. Note that other factors with home ownership may impact the financial decision including the potential to borrow funds at lower rates if you own a home. Input a 0% commission rate if a sales commission is not payable. The savings rate is the percentage return on funds saved. The Mortgage Insurance Fee (Insur. Fee - ie. CMHC) is usually required for down payments less than 25%. Other factors to consider include heating costs - are they included in rent ? Home Insurance costs may also be factored in as another cost. Additionally, maintenance costs should be considered as part of home ownership and may be added to "other costs".	COMPARE RATES TERM OURS BANKS 6.mo 1yr. 3yr. 5yr.   4.45% 3.50% 4.05% 5.29% Quick Calculator
Back to Top     Figures are rounded to nearest dollar. The above information is for illustrative purposes only. We cannot guarantee its accuracy. Please contact your financial advisor for more specific information. Calculator powered by CanadaMortgage.com	Legal Information Privacy Policy

• Sheryl King, an economist at Bank of America Merril Lynch, said in a note that the volatility hitting Europe and the risk of damage to the global economy means the Bank of Canada will move to cut its benchmark interest rate to ward off the risk of recession. Her prediction is the cut will be a whopping 0.75% decrease from the current rate of 1%.
• Ms. King forecasts that the cut would come in two phases, with a 0.50% trim being announced during the bank’s January 17 meeting, while the second and final 0.25% cut coming during the March 8 meeting.
• Also predicting a lower interest rate next year was David Madani, Canada economist at Capital Economics. He is forecasting a more mild cut of 50 basis points, however, saying he expects it to occur in April or June.

Read the full article here - BoC could slash rates

Up until now the talk has been an increase in rates next year.  Just like the weather, everyone has their opinion and the fine print always states "subject to change".  Regardless of rates possibly being lower next near, chances are prices will be higher so from your buyers prespective, today is a good time to buy.   I am here to help so please call and get your buyers qualified!

Email me at darren@mortgagebydarren.com or call 604.818.9262 anytime. 

Only 40 sleeps until Christmas and it seems that the Bank of Canada celebrated by releasing plastic $100 bills into circulation yesterday. Banks would certainly prefer that we all use plastic for payments however, they were hoping it would be by way of debit and credit cards which they can charge user fees on.  The $100 bill is just the beginning, $50 bills will be released in May and $20, $10 and $5 bills are scheduled to be available in 2013. With the release of these new bills, the Bank of Canada is showing that it understands that cash is still king and respecting that Canadians need a currency they can count on.  The new polymer bill costs almost double what paper bills costs to produce at $0.19 however, they are also estimated to last 2.5 times longer.  Paper bills will be slowly removed from circulation, so be prepared to tell your kids that "once upon a time" money was made of paper. 

In mortgage news, interest rates are staying stable with only minor movements in fixed rates and variable discounts.  With prime expected to stay low until 2013, it is unlikely that deep discounts will return any time soon to variable products.

If you are looking to buy your first home, tomorrow is the last day to register for the First Time Home Buyers Seminar and Tour happening on Sunday, November 20 from 1pm - 4pm in Langley.  The tour will begin at the Sutton West Coast Realty office on Willowbrook drive where in a 45 minute seminar we will explain the ins and outs of buy a first home.  This will be followed by a tour of available properties in the Langley/Clayton area.  Please email me by Wednesday, November 16th at 9pm to register at jamiemoi@jamiemoi.com

All the best!

Jamie Moi, AMP
Dominion Lending Centres - West Coast Mortgages
Your mortgage consultants for life
604-534-6504
jamiemoi@jamiemoi.com  

And don't forget to check out our Facebook page at  

www.facebook.com/JamieMoiMortgageTeam.   

The following is a list of duties and services that I provide to you as either a seller or a buyer.
1. "As a licensed REALTOR® and member of the Fraser Valley Real Estate Board,I am legally obligated to protect and
promote the interests of my principals, as I would my own, and to abide by the by-laws, Standards of Business Practice
Code of Ethics as set by the Board".
2. Explain the Working with a REALTOR® brochure and agency obligations.
3. Provide undivided loyalty to the client.
4. Obey all lawful instructions of the client
5. Keep the confidences of the client
6. Exercise reasonable care and skill in performing duties
7. Account for all money and property while acting for the client
8. Cooperate with other Realtors
9. Explain real estate terms and practices
10. Provide and explain all forms
11. Communicate on a regular basis in a manner agreeable to you
12. Disclose in a timely manner all known facts affecting the transaction
13. Conduct market analysis and advise an appropriate listing price
14. Locate properties available to view and consider
15. Facilitate viewing properties and provide guidance
16. Advise regarding selection of the right property
17. Prepare and submit all necessary listing documentation
18. Advertise the listing on the MLS® and on REALTOR®.ca or ICX.ca
19. Assist in qualifying buyers
20. Arrange showings at times acceptable to the seller and, if any tenants, subject to tenant's rights
21. Discover facts pertaining to the properly
22. lnform of closing procedures and policies
23. Identify and estimate costs for closings
24. Advise on competitive offers, including appropriate conditions and subjects
25. Prepare offers at client's direction (buyer side)
26. Prepare a legally binding Contract of Purchase and Sale (buyer side)
27. Review Contracts of Purchase and Sale submitted for the seller's consideration
28. Present all offers promptly and objectively
29. Negotiate favourable terms and conditions
30. Assist in arranging suitable financing if necessary
31. Advise client to seek independent advice on matters outside the expertise of the licensee, such as property
inspections, legal, or other required services
32. Assist in removal of conditions, completion and possession process
33. Disclose all fees earned through the transaction
34. Marketing plan - page 2 (not included here ).

The other day I wrote about the most expensive streets for residential property per sq footage in the White Rock South Surrey area, and promised to write about Vancouver's streets.

Well, what I found was this:

The most expensive street in Vancouver, according to the MLS listings, was Point Grey Rd., with 3 sales and an average of $2409.31 per sq ft.  Second on the list was Newton Wynd with 4 sales at $1915.52 per sq ft.  Laurier was 3rd with 3 sales averaging $1325.80, and Osler St., was fourth with 2 sales.

What you may find interesting is  Osler had the most expensive home sold - after 366 days on market.  It sold for $17,500,000.--October 2010.  

There were 25 sales in Greater Vancouver over the last 12months over $5m. with an average of $1497.59 and an average of 120 days on market.  

So, if you're an international buyer for residential properties Vancouver is still a bargain compared to the rest of the most expensive streets in the world.

Yesterday the Institute for Luxury Home Marketing put out a blog naming the priciest streets in the world for residential real estate, according to a post on the Overseas Property Mall Blog.

Here are the top 3.

1. Severn St., Hong Kong, China    a whopping $78,200.  PER SQUARE FOOT!

2. Kensington Palace Gardens, London, England  $76,600. sq ft

3. Avenue Princess Grace, Monte-Carlo, Monaco  $69,700. sq ft.

Now, compare that to our bargain basement price average per square foot here in sunny South Surrey for the past 12 months of sales.

1. Crescent Drive, Surrey, BC  at $599.41 sq ft

2. Marine Drive, White Rock/Surrey, BC  at  $563.95 sq ft

3. Crescent Road, Surrey, BC  at $436.17 sq ft

Now, Terry Rd., and Woodcrest came between Marine Drive and Crescent Rd., but they only had 1 sale per street over $1m  in the last 12 months and I didn't think that that was a fair comparison.  The other streets had a minimum of 6 sales over the past 12 months, a better indicator of price per square foot.

In relation to the most expensive streets in the world, our prices are at absolute give-aways.  Not saying that they're not expensive, don't get me wrong, but it's always good to have a global perspective when we're talking real estate and why people like to buy here.  

Watch for another blog for Vancouver prices per square foot later this week.

Thanks for reading!

Paint is the simplest and most economical way to make a small space appear larger.  So a can of paint and a little imagination will go a long way to making the most of your living area.

Hints:

Draw the line-paint a horizontal stripe around a small room to make it look deeper and wider. If the room is narrow, try thin vertical stripes in monochromatic tones.

Cool colours, such as soft blues, creams purples and greens will make any area feel open and airy.

Don't forget about lighting.  Good lighting makes a colour appear lighter, so rooms that have a lot of natural light could handle a warmer colour.

The secret to painting a small area, is to eliminate visual distractions.  Try painting the trim in the room a different shade of the main colour by adding black or white to the base.

Low ceiings? No problem.  Paint a one foot border around the edge of the ceiling in the same colour as the walls.  Or, paint the bottom half of a wall in a darker colour than the top.  Glossy paint will also make a ceiling look higher and rooms appear larger due to the reflection of light.

Above all, have fun, be brave and you'll be amazed at how quickly you can transform your home. You'll wonder why you took so long.

November 2010 vs. 2000 Real Estate Stats

November 2010 vs. 2000 Real Estate Stats

November 2000
1,730 detached, attached & apartment properties sold
$340,490 = Detached benchmark price
$218,520 = Attached benchmark price
$159,160 = Condo benchmark price

November 2010
2,509 detached, attached & apartment properties sold
$799,312 = Detached benchmark price
$488,733 = Attached benchmark price
$389,168 = Condo benchmark price

What does this mean?
145% increase on units sold in 2010 vs. 2000
235% increase in detached home value
224% increase in attached home value
245% increase in condo value