Archive for February, 2009

By now, most of us have probably seen enough HGTV to realize that preparing your home for sale or “home staging” is a critical part of the home selling process.  While most buyers tell me they can see beyond cosmetic issues such as paint colours, decor and furniture placement, the reality is that homes that look good, inevitably sell faster and for top dollar.  When you remove the emotional attachment to your home by decluttering, depersonalizing, and neutralizing, you are left with a space that buyers instantly connect with.  All of a sudden a buyer starts mentally moving their own things in.

Hiring home staging consultants has always been part of the services I provide to my clients.  I’ve seen the benefits first hand and can’t stress its importance enough.  Many people gloss over the work involved prior to listing your home but if you want to maximize your return on investment it is absolutely critical that you spend the time and energy preparing your home BEFORE you list it.  Remember that the selling process begins long before the “For Sale” sign hits your front lawn.

RE/MAX recently came out with an exciting new program called FIT TO SELL.  This is a great tool that homeowners can use at their leisure to help them prepare their own home for sale.  To learn more about the program visit the Fit to Sell website at www.fittosell.ca.  I am also including the latest Fit to Sell press release below for more details.

All the best!

Lindsay

Press Release: February 19, 2009

New RE/MAX Program Helps Canadian Homeowners Secure the Value of their Biggest Investment

As home sellers across the country adjust to new market realities, RE/MAX is set to launch Fit to Sell, an innovative new program designed to secure home equity in uncertain times.

“The stark reality is that more than 2,000 properties are listed for sale every day in Canada,” explains Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada, “yet only a quarter of them will be sold. With the creation of Fit to Sell, RE/MAX is intent on helping Canadians get the most out of their biggest investment – their home.”

RE/MAX has enlisted the help of popular staging expert Carla Woolnough, host of the DVD series ‘How to Stage your own Home’ and owner of Nex-Step Design, to develop Fit to Sell. The program encourages existing homeowners to increase their stake in the home-selling process by working with their real estate professional to bring their home to the market. Fit to Sell ultimately rewards their participation by maximizing sale price and minimizing on-market time.

“Sellers are no longer in the driver’s seat but there’s also no reason for them to take a back seat,” explains Polzler. “We know that location, price, and condition are the three major factors that come into play when selling a home – and while location and price are clearly choices made by the buyer at the onset, condition is the one factor that a seller can influence. Sellers who make the right moves in preparing their home for sale can maximize their housing potential and ultimately improve their bottom line. After all, there are still buyers in the market and they are looking for quality product.”

RE/MAX and Carla Woolnough, the national spokesperson for RE/MAX Fit to Sell, have created a checklist of the top 10 priorities for preparing a property for sale, ranging from air quality to furniture placement and lighting. The checklist and tips can also be found on www.fittosell.ca

“By following these simple and inexpensive tips, homeowners across the country can secure top dollar for their properties,’ says Carla. “All it takes is a little upfront planning and some advice from your RE/MAX sales professional.”

The official launch of RE/MAX Fit to Sell will co-incide with the opening of the National Home Show, presented by RE/MAX, at the Direct Energy Centre on February 20 through to March 1. RE/MAX will be presenting tips for consumers, with four scheduled appearances by Carla during the 10-day event.

RE/MAX is Canada’s leading real estate organization with over 18,000 sales associates situated throughout its more than 670 independently-owned and operated offices across the country. The RE/MAX franchise network, now in its 36th year, is a global real estate system operating in more than 70 countries. Over 7,000 independently-owned offices engage more than 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in resident, commercial, referral, and asset management. For more information, visit: www.remax.ca

Home renovations can influence the resale value of your home

As the residential housing market becomes increasingly competitive, more and more homeowners are investing in renovation before listing their home for sale.

The recent introduction of the Federal Government’s new $2.5 billion Home Renovation Tax Credit (HRTC) program will now provide Canadians with added incentive. The program allows for a 15 per cent tax credit on eligible renovation expenditures such as work performed or goods purchased between January 27, 2009 and February 1, 2010. A credit of up to $1,350 per household can be claimed for the 2009 tax year on renovations including upgrades to bathrooms and kitchens, the installation of new flooring or carpeting, and replacing a furnace.

By utilizing the new program to make necessary upgrades, homeowners can maximize the value of their properties. A recent RE/MAX survey found that the most value-added upgrades for today’s purchasers include:

• Updated kitchen cabinetry
• Hardwood flooring
• New windows
• An open-concept living area
• A finished basement

After location and price, condition is one of the most important factors in the sale of a home. Many buyers are willing to pay more for a home that does not require major upgrades. To determine if you are Fit to Sell, consult your RE/MAX realtor or visit www.fittosell.ca.

The Chinese use two brush strokes to write the word ‘crisis’. One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger – but recognize the opportunity.
John F. Kennedy

For a few months now we’ve heard all about the economy. Opinions are being given everywhere we turn – on the radio, on our tv’s, in our living rooms, as we talk to our friends and family. There is no doubt that we are living in interesting economic times but as we hear more and more opinions on the subject, I’m starting to see a trend emerge with home buyers who are looking at the sluggish economy as a fantastic opportunity.

I continually meet first time home owners who are interested in understanding the market and all the incentives available to them. I am also meeting several buyers who are weighing the option of moving into something a little larger – an option not affordable to them until recently.

Quite simply, education is key when making wise investment decisions. For those thinking about making your first foray into real estate, or for those looking at using the softer market to move up, here is a list of incentives currently being offered:

1. Tax Credit for First Time Homebuyers
Benefit: The new federal budget proposed a $750 tax credit for first time home buyers to help with various closing costs (legal fees, disbursements, and land transfer tax)
How it works: The tax credit is based on an amount of $5,000 for first-time homebuyers who acquire a qualifying home after January 27, 2009. The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.

2. Home Buyers RSP plan withdrawal limit increased to $25,000
Benefit: In order to provide first-time home buyers with additional access to their RRSP savings to purchase or build a home, the 2009 Federal Budget proposes to increase the Home Buyers Plan withdrawal amount from $20,000 to $25,000. The RRSP funds deducted can be used for ANYTHING as long as you buy a home. Use the funds to cover your down payment, pay closing costs, reduce debt, buy a new car, buy furniture or apply against moving costs.
How it Works: Two first-time home buyers purchasing a home jointly (e.g. a married or common-law couple) with sufficient RRSP funds in each of their names may now together withdraw up to $50,000 ($25,000 each) from their RRSP funds toward the purchase of a home in Canada. Amounts withdrawn must be repaid over a 15-year period, starting the second year following the year of the withdrawal, or included in the individual’s income if not repaid.

3. Land Transfer Tax Credit
Benefit: First time home buyers are also eligible for a land transfer tax rebate of up to $2000, based on the purchase price of your new home.
How it works: The amount of the refund claimed will, if granted, offset the land transfer tax payable. For example, a home costing $300,000 carries a land transfer tax of $2,975. In this case, your tax refund will be $2,000 and your net tax payable is $975.

4. Home Renovation Tax Credit
Benefit: The new federal budget proposes a new tax credit for home renovations of up to $1,350. This credit applies to all home owners, not just first time buyers. Home owners can now claim a 15% credit on eligible expenditures between $1,000-$10,000, making a maximum tax credit of $1,350.
How it works: Renovation costs for projects such as finishing a basement, putting in new flooring, and re-modelling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals, painting and incidental expenses. Routine repairs and maintenance will not qualify for the credit. Nor will the cost of purchasing furniture, appliances, audio-visual electronics or construction equipment.

5. Low mortgage rates
Benefit: The big Canadian banks have recently lowered their prime lending rate (the rate that banks give to their best and most credit-worthy customers) to a low 3%. Obtaining a great interest rate on your mortgage can save you thousands of dollars over the long term.
How it works: There are currently a wide number of financing options available to qualified buyers at terrific rates. Lending rates vary widely by financial institution and personal credit history. All home buyers should visit a credible mortgage broker or lender for mortgage approval prior to placing an offer on a home. These professionals are skilled at helping you find the lending options best suited to your needs.

6. Shift to more balanced markets
Benefit: The local real estate market has enjoyed years of rising home prices and quick sales. For several years, local demand for housing has outpaced supply which is often referred to as a “sellers market”. This resulted in steadily rising home prices and quick sales. As the economy softens, so too has the general demand for housing. The opportunity now exists for buyers to seek homes at a lower price and for better terms than they could have at the height of the market.
How it works: Each home is unique. Buyers should expect that homes offering good value (great location, desired features, and reasonable asking prices) will sell quickly and sell at a fair price.

Ready to take advantage of today’s fantastic buying opportunities? I would love to hear from you. Contact me at 905.338.9000 or lindsay@remaxaboutowne.com for more information on the home buying process and find your dream home today!

Lindsay