What Should I Offer In a Bidding War?

 This is the question of the day in Southern Ontario.
What to offer when you are in competition for a property you really want.  questions answered image
REALTORS(r) sometimes have formulas that vary from market to market. For example,  X amount for every offer in the competition or a certain percentage for every offer in the mix.
It’s something but its not full proof by any means.  In a more normal balanced market we can look at the comparable properties that have recently sold but even that is not full proof in this type of market.
The lack of balance in the supply and demand is throwing all logic out the window.  The bidding war seems to be more impacted by where the other Buyers are coming from ( for example from a higher priced market so everything looks like a bargin).  Also on how many times the other Buyers have lost in competition.  Some get so fed up that they go all in on one they really want and often pay tens of thousands of dollars more than the next best bid.  All information you can not get beforehand.
My best advice is to put in an offer at a price that if you lose and are told it was close you will say “that’s okay, that’s what I was willing to pay” or if you win you don’t say, “oh no, I over paid”.  That is your sweet spot and one only you can determine.
If I figure out the formula, I’ll let you know.                                                                                                                                                                                                                    Wish I had a crystal ball! 
crystal_ball

When you only call the Listing Agent to view properties

There are some Buyers out there who will say they only call the listing agents to view properties they have found themselves online or by driving around looking for signs.  This makes no sense to me.  Real Estate services are the only services I can think of where the buyer gets “free” professional services and the someone else pays for them.  The fiduciary duties are owed to the buyer if he/she enters into a Buyer Representation Agreement (BRA) with an agent.  The agency relationship is with the Brokerage.  Without the Agency Agreement you are a CUSTOMER not a CLIENT.

How do you create this agency relationship you might be wondering.  What is the consideration you owe? You owe loyalty.  You pay nothing as long as you are not in breach of your agreement with the Brokerage.

There are three parameters to the agreement.

Time – length of the contract

Geography – the areas it includes

Type – What does it include? Residential, commercial etc.

Some Buyers believe they will get a better chance at “winning” the property in bidding war if they write an offer with the Listing agent, but that is very dollarsignrarely the case in spite of some of the talk out there.  The duty of the Listing Brokerage is to expose the property to the market and try to get the most favourable agreement for the Seller based on their wants and needs.buyer seller image

We can have a Multiple Representation situation where the Sellers REALTOR(r) represents both parties and that is disclosed to both the Seller and the Buyer.

There are specific guidelines we must follow in these cases.  Some Buyers think that the listing agent can then reduce their commission since they are getting “both ends” and make their offer more attractive.  Yes, that can be done but it must be disclosed to all other REALTORS(r) bringing an offer and in turn their Buyers.

The rules are in place to keep things fair and equitable.  night skyline

The best thing you can do is find a REALTOR(r) you connect with and trust and work as a team to find a home.  It is extremely difficult for us out there right now when dealing with a Buyer. It is almost impossible for a Buyer on their own.

 

Good luck and don’t get discouraged.  Just always take your best shot!

 

 

 

 

 

Free Solar Panels for Your Home, Good Idea or Bad?

I felt this Blog was worth repeating since I am still asked the question.

Question “what do you think about putting these free solar panels on my house?”.

It seems there is a program being offered to put “free” solar panels on homes and pay the homeowner a cash outlay of approximately $3000 or a monthly fee over 20 years.  After 20 years you own the panels. The solar panel provider sells the energy to the grid during the 20 year contract.

The problem as I see it is, you aren’t actually getting the benefit of the energy being sourced, just the cash or monthly payment. You own the solar panels after 20 years but is the technology now dated?

I called the one company to get more information. This is what I was told. If you need to replace your roof they will remove for a few days and re-instal after the roof is on.  However, if you put your home for sale and a buyer wants the panels removed it is NOT an option.  They must accept the solar panels along with the house for the duration of the 20 years.  If you took the initial cash outlay, the new owner would get a cash outlay of approximately $ 300.  If you are on the monthly plan, they new owner would now get those monthly payments.

In my opinion as a Realtor®, the lack of option to remove the panels if you sell makes this a bad idea. I’m all for green energy so if you are planning to be in your home for more than 20 years, go ahead and research it further.solar panels

I would think that a better option would be to purchase the solar panels yourself, use the energy and sell the surplus to the grid for a profit. Having said that, I have no idea of the cost of solar panels.

I would also advise that you research the impact on your roof shingles as well since I have heard some reports of problems in that regard.

Buyers who are not familiar with this program, as most of us are not, will be put off of your house. It is something they have no say over, and in my opinion it has very little benefit to them. It will affect the saleability of your home in my opinion.

Have any questions concerning your home’s value and the things you should and/or shouldn’t do to maintain and increase the value…. contact me.  Helping you is what I do!

Expect More, Get More!

www.HamiltonRealEstateSales.com

Hamilton is the Coolest!

“We’ve tipped” says successful award winning developer in Hamilton, Steve Kulakowsky from the Core Urban Inc. We are past the tipping point says Steve. I would agree.  It’s no longer “change is coming” or “we have loads of potential”. It is here!

Watch the tour video here.

Increase in house prices averaging 10% for 2015, driven primarily by the influx of “out of towners” loving the affordability. The in-filling and intercity development and promises of better public transit.  Initiatives like Sobi bike sharing. The increase in concepts like work space sharing in amazing spaces like The Cotton Factory. Offering event space rental as well.

The word is out and Hamilton is The Coolest!  Watch more  Hamilton video’s here.

Want to know more about opportunities in #Hamilton.  Contact me and get in on the action in #HamOnt.  Call or text 905-537-6005

 

 

 

Why Torontonians Are Moving to Hamilton

At first blush it is all about AFFORDABILITY but delve a little deeper and find out that the THE SECRET IS OUT. Hamilton, Ontario is an awesome place to live, learn, work and play.

Some of the reasons:

Nature and the privilege of being between a great lake and the Niagara Escarpment. Creating the Waterfall Capital of the World. Minutes from rich farm land and Wine Country boasting award winning wines and ice wines.2015-04-17 09.14.30

Communities with pride of ownership, tree lined streets and the sounds of children playing. Family friendly city with many activities, festivals, green-space and bike/walking trails.

Location, Location, Location. Check out this graph and page by Hamilton Economic Development.

Historic Neighbourhoods with a respect for architecture. Developers who have a respect for history.

Bike Sharing program, amazing farmer’s market and the Tiger Cats!

Strong, growing  Arts, Music and Theatre community. Including the renowned Theatre Aquarius.  An amazing entertainment venue that is praised by the artists appearing there for it’s acousti2014-08-08 22.04.12cs and layout – Hamilton Place. Check out the Trip Advisor reviews.2015-04-29 21.57.03

A growing and improving night life. Diverse culinary options – some truly fabulous restaurants . This list is from 2014.  I could add some to that list including Lake Road on James North. Full disclosure, my children work there.  Contact me and ask me about it. Food is wonderful.

2016-01-02 20.08.24

Number one employer is the Health Care including education, research and hospitals. Fabulous universities and colleges.  This  page listing the schools says it best.

Innovation and creativity. Known as The AMBITIOUS CITY.  A city of innovators.

I love my city and I would love to talk to you about making a move to Hamilton.

Check out these Hamilton videos, especially love the award winning video “The Ambitious City.  I believe it speaks well to Hamilton’s Heart and grit.

 

Contact me to find out more.  I’m here to help!

 

 

 

 

 

I Want To Buy a Home in the Hamilton area. Where Do I Begin?

You begin with financing. I work with a team of trusted professionals to assist and support my clients. So if you are in the Hamilton area, you should start with a call to me or your favourite REALTOR® who can provide you with the proper contacts. If you are not in the area, I have made many great Real Estate contacts outside of the GHA that I can recommend to you.

It is rather easy and efficient when you have guidance. I believe in being involved from A to Z . I can provide mortgage specialists, inspectors, lawyers and other contractors you may need.  I provide a professional photographer if you are selling a home and as well as my staging advice, and a professional if needed.

Once you’ve received the information from a mortgage person, the process can begin.  I would also provide a thorough evaluation on any existing owned home. Then set up a search of the entire MLS of properties that meet your needs and price range.  You would give me feedback on the properties sent. This is vital to get us on the same page. For me to get “inside your head” and figure out your “must have’s” and your ” I want’s”.

Then comes the Education Day home viewings. We aren’t necessarily expecting to find “the” house this visit especially since many of the properties will have been on the market for a while. So not necessarily the cream of the crop. A great day to get the conversation going. A great way to bring out important questions and to focus on what you are looking for.

Moving forward I am “on it” daily until that perfect home for you does come along. I’ll save the information on the offer process and after the offer for another time.

This is a method that has worked well for me and my clients. I find this step by step process can be completed for first time buyers often within 2 weeks depending on your availability. Longer if you have a home to sell of course. My goal is to save you time and aggravation while finding your perfect home at the best price and educating you on all aspects.

Trust a professional and take your first step by contacting me and let me guide you throughrealtors_know_real_estate_ this process of finding your dream home!

Expect More, Get More!

www.HamiltonRealEstateSales.com

Free Solar Panels for Your Home, Good Idea or Bad?

I have recently been asked this question by 2 clients so I think it’s time to blog about it.

Question “what do you think about putting these free solar panels on my house?”.

It seems there is a program being offered to put “free” solar panels on homes and pay the homeowner a cash outlay of approximately $3000 or a monthly fee over 20 years.  After 20 years you own the panels. The solar panel provider sells the energy to the grid during the 20 year contract.

The problem as I see it is, you aren’t actually getting the benefit of the energy being sourced, just the cash or monthly payment. You own the solar panels after 20 years but is the technology now dated?

I called the one company to get more information. This is what I was told. If you need to replace your roof they will remove for a few days and re-instal after the roof is on.  However, if you put your home for sale and a buyer wants the panels removed it is NOT an option.  They must accept the solar panels along with the house for the duration of the 20 years.  If you took the initial cash outlay, the new owner would get a cash outlay of approximately $ 300.  If you are on the monthly plan, they new owner would now get those monthly payments.

In my opinion as a Realtor®, the lack of option to remove the panels if you sell makes this a bad idea. I’m all for green energy so if you are planning to be in your home for more than 20 years, go ahead and research it further.solar panels

I would think that a better option would be to purchase the solar panels yourself, use the energy and sell the surplus to the grid for a profit. Having said that, I have no idea of the cost of solar panels.

I would also advise that you research the impact on your roof shingles as well since I have heard some reports of problems in that regard.

Buyers who are not familiar with this program, as most of us are not, will be put off of your house. It is something they have no say over, and in my opinion it has very little benefit to them. It will affect the saleability of your home in my opinion.

Have any questions concerning your home’s value and the things you should and/or shouldn’t do to maintain and increase the value…. contact me.  Helping you is what I do!

Expect More, Get More!

www.HamiltonRealEstateSales.com