6 Best ways to Spend your Renovation $$$

Resale value is now always considered when a potential buyer is deciding upon a home to purchase. The ongoing debate is always - where is one’s money best spent to increase the value of the home? Budgets play a big part in a renovation and I see too many “all-in” renovations... In other words, homeowners blow their entire budget on one room and neglect the rest of the home. At “for sale” time this can leave a bad taste in a purchaser’s mouth, mainly due to the renovation of the one room having dated the rest of the home even more so. Unless you have an unlimited budget, here are some helpful do’s and don’ts that should assist you when coming to the renovation decision.

Kitchens are often a main selling point, but can be quite costly.

1. Never...ever...proceed with a cosmetic renovation when there are structural or plumbing/electrical issues with the home. I know these aren’t sexy fixes but they should always be a priority when doing renovations. Let’s face it, there is nothing worse than redoing your master en suite and then having a roof failure and water damage to the ceiling etc. I’m sure you have heard of the expression “good bones”...make sure you start any renovation with a solid foundation/structure.
2. The biggest mistake I see in renovations are the disconnects, an example being granite counter tops installed on 40 year old bathroom cabinets. You may consider this an upgrade but to a potential buyer they see this as putting “lipstick on a pig”. If you are trying to sell the bathroom as updated, good luck, no buyer will pay for poor renovations, especially when they have to be completely redone.
3. On a limited budget? Be smart! – consistent renovations are by far the best bang for your buck. In other words, do some mild updating in all of the rooms. You would be surprised how fresh a home looks with new paint, light fixtures/switches and modern baseboards. In most cases, for the average size home this will cost under 10K but it will most certainly add value when it comes time to re-sell.
4. Changing a traditional floor plan of a home and creating a more functional one is great for resale. Tearing a wall out can create that “open concept layout” one desires and it doesn’t have to be expensive.
5. Timeless design – when renovating, choose styles and fixtures that will remain current, what you like may not be appealing to the masses.
6. The kitchen is always the most expensive room in the house to renovate, so proceed cautiously! It can make or break the resale of the home so choose your layout, design and fixtures with care and hiring a designer for input, wouldn’t be the worst decision one could make.

So remember to always have a plan before starting a renovation. There is nothing worse than a half finished kitchen and no money left in the budget to finish it!

www.hgtv.ca

www.realestate-hamilton.ca

10 tips when Downsizing your Home

Whether you're an empty nester moving from a house into a condo, or a renter trading in a two-bedroom for a studio, you'll have to say sayonara to some of your stuff. Stressed out by the prospect? Don't be. Sarah Moyse and Jennie Davidson, Toronto-based moving planners and owners of Wren Designs, offer 10 tips designed to make downsizing a snap!

1. Write a list of all the items you love and can't live without; it will help you bid adieu to things that didn't make the list. “It's hard to persuade people they can't take everything with them,” Sarah says. “But by keeping what's on your wish list, you won't be upset about the things you can't keep.”

2. Start thinning out your belongings at least three months before the move. Take some time each day, or one morning each week, to go through that jammed coat closet or overflowing filing cabinet. "Paper is the real killer," Jennie says, so tackle it one box at a time. The same goes for photos, which require a lot of attention.

3. Get a feel for the size of your new rooms by comparing them to rooms of similar dimensions in your present home. For instance, your living-room-to-be might be roughly the same size as your current bedroom. You may think you can squeeze in two sofas, but this kind of reality check could help you realize that only one will fit comfortably.

4. Heavily edit areas with items that don't have as much sentimental value. Take the kitchen, for example; most people don't need 10 mixing bowls and won't get teary-eyed over losing a second spatula. If you're downsizing from a house to a condo, target the garage. Snow shovels, the lawn mower, ladders - you won't need any of them.

5. Don't throw anything in the garbage. Recycle, reuse, sell and donate instead. As tempting and easy as it is to pitch wire hangers, musty clothes and shabby furnishings, be environmentally responsible and find a home for everything. A can of Comet with a few shakes of powder left could make someone else's sink sparkle if you don't want it; consider giving supplies to a shelter, neighbour or cleaning lady.

6. Label three bins To Keep, To Sell and Charity (bins should be manageable when full). For the average downsize, keep only one-third to one-half of your belongings, say Sarah and Jennie.

7. Get an objective opinion. If you can't decide whether to keep or kiss that dusty '70s-era sewing machine goodbye, Sarah says, "It's good to have someone who'll say, ‘Oh, please, you never use that!'" It might just be the kick you need.

8. When selling your goods, try an auction for high-end items. Then look for reputable antique and secondhand dealers. Often, they can buy all of your wares or put you in touch with booksellers and other specialty dealers. "Some dealers will come to your home, take what you don't want and even drop off the charity stuff," Sarah says. "That way you won't be trudging all over town." If you can't sell an item, donate it to a shelter.

9. Use floor plans to prearrange your furniture before the move. This is another useful reality check. To start, draw plans if you don't have any, and sketch in a furniture layout. Then look at the plans realistically; if you've crammed in side tables, armoires and chairs, you need to edit more. Don't wait until after you move to contend with furniture you'll just end up tripping over.

10. Once you get to the packing stage, use a colour-coded system to organize all of your boxes.Choose a colour for each room and mark the boxes destined for that room with a coordinating colour sticker. You can also do the same thing numerically; for example, if room No. 1 is the kitchen, then all boxes marked No. 1 will go there. A simple and efficient organizing idea to make the move that much easier!
www.styleathome.com

www.realestate-hamilton.ca
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6 Ways to Earn Money in Real Estate

We are in a great market to buy real estate, and mortgage rates are at an all-time low. You might be thinking about stepping into the real estate market in Hamilton, or maybe you already own a piece of real estate. Wondering how you can get the most of it? Here are some unexpected ways you can use real estate to boost your investments.

Home Business

Real estate can open doors if you're interested in running your own business. Auto mechanics, hair dressers and even those with a green thumb growing produce in the backyard can use their home as a place of business. Just be sure to check any zoning laws before hanging out your shingles.

If you're working in an office, owning real estate can give you a chance to work from home, and even take a tax deduction. Talk to your boss; you may find telecommuting some or all of the time is your way to get the most out of your real estate dollar.

Multi-Family Dwelling

When you think of a roommate, you're probably having flashbacks to your college days - but think again. Renting a portion of your home can bring in big bucks, and may even allow you to live in your home for free once you factor in your rental income. Retirees and single professionals could benefit in a big way by splitting housing costs, but even families with unused rooms or basements could profit from having a tenant.

If you're buying a home, look for properties with finished basements, mother-in-law suites or two master baths, a common feature in many newer homes. Consider adding a kitchenette and a private entrance, which can be done with a small investment, to give your tenant their own space.

When is the best time to sell?

Talk to any real estate agent, and they will tell you that there are certain seasons that are more favorable to sell your home than others. Often, the best time to list and sell a single family detached home is in the spring, followed by early to mid fall. 

Most families want to make the purchase of their home and complete the transaction before the summer months, when the kids and family are on summer vacation. Parents are keenly aware that school registrations need to be dealt with -- and who wants to be loading a moving truck in the middle of August? 

Sensibly, spring also offers the best time of year to showcase your home. After a long winter, the first hints of cherry blossoms and crocuses seem to trigger the “moving bug” in many people. Gardens tend to look their best in fresh bloom, when the leaves are on the trees. Homes appear more appealing when the weather is warming up and buyers tend to be in high spirits. 

It’s also usually easier to get your home ready for sale at this time of year -- from painting inside or out, to the simple ability to keep the house cleaner without the winter muck being traipsed throughout every time someone walks through the front door. Just remember, when you sell at the busiest time of the year you will face more competition, so make sure your home shows at its best! 

If you’re selling anything over a certain price (and that depends on where you live -- but we’ll say anything in the top 20% price range of your community), expect the summer months to be particularly slow. Expensive homes require buyers with big pockets -- and where are they in the summer? Most likely away on vacation, not looking for a home….so that’s where the early to mid fall selling season comes in. 

Fall is considered the next best time to list your home on the market– especially if it's a nice long Indian summer. Linked to the “back to school” mentality, with the leaves turning fabulous colors and nice cool crisp temperatures, you’ll have another good shot at selling a family home -- often to someone who’s already in your neighbourhood. That being said, be prepared to keep up that curbside appeal as the weather changes. 

Some properties will sell at any time of year -- such as those aimed at first time home owners, especially condominiums and town homes. Often these buyers are not faced with the constraints of school catchments, and are much more interested in amenities like underground parking, recreation facilities and the nearest coffee shop. These buyers are happy to shop at any time of year, so sales will often be a bit steadier throughout. 

Vacation properties always do their best in the spring and summer months, because that is when buyers visit these destinations. They benefit from the fact that vacationers will actually be where these listings are, and not just looking at pictures online or in a brochure. It’s also hard to imagine water skiing when the temperature is hovering at zero and the cottage for sale has had the water and power shut off for the season. 

Having said this, there really is no wrong time to list your home, because if you price your home right, and make every effort to present it in a superior way, chances are you will sell your property in a timely manner. However, if you find that you have to list in December because of a change in career or what have you, remember to be realistic. The holidays in particular can be the hardest time to sell, when everyone’s minds are on other things. Don’t be frustrated though -- you never know. After all, one of my listings sold last year on Christmas Eve.
www.hgtv.ca

www.realestate-hamilton.ca

5 Ways to Make a Smart Real Estate Purchase

It's in a great location!

We’ve all heard the horror stories – people paying way too much for a house, not getting an inspection and then finding a million (expensive) problems with the place. I’ve seen it countless time with homeowners on and from talking to eager real estate investors.

Here are my top five tips for making a smart real estate purchase so you don’t get burned!

1. Stick to Your Budget
   It’s easy to get carried away here, especially if you make the mistake of looking at houses outside your price range. The important part is to have a plan. Don’t just think about your mortgage payments every month; also think about your monthly carrying cost and be honest about your lifestyle. Consider how much you spend every month on eating out, clothing, etc. There’s nothing worse than being house poor because you weren’t honest about your spending habits.
2. Don’t be Afraid to Walk Away
   A house is an emotional purchase, since it’s where you’ll be living, raising your children and making a home for yourself. But it’s crucial to keep emotions out of the equation as much as possible. You should love your house, but you should love it because it’s in good condition and because the numbers work. Always get a home inspection and if you can’t afford it (or the work it requires), walk away!
3. Give Every House a Chance
   I do most of my real estate browsing online, as do most people now, but you can’t always judge a house by the virtual tour – good or bad. If you see something online and it has bad pictures (or no pictures) but it’s in the right neighbourhood or in your price range, go look at it! Chances are you can get a good deal because so many people will skip it without photos online.
4. Think Long-Term
   Before you jump into a real estate purchase, ask yourself: “What is the purpose of this property for the next 5-10 years?” Depending on your mortgage, you may have to lock in for a certain number of years, and if you think you’ll be moving in less than 5 years, I’d suggest looking at alternatives. You never want to be forced into selling your house.
5. Have a Support System
   Having a real estate agent who understands your financial and personal situation is key, and great advice from a mortgage specialist and lawyer can be invaluable to the home-buyingprocess. But what many people forget is to have a personal support system in place when they go house hunting. Advice from those close to you – family members, a partner, friends– is just as important to help keep you on track and avoid getting carried away. It’s easy to get caught up in the excitement of buying a house, so having the personal support will keep you grounded.
   hgtv.ca
   
   www.realestate-hamilton.ca

Mortgage Rate Update

Mortgage rates trending up, be sure to lock in now to hold these historically low rates!

Today's Best Rates!
5 Year Closed Mortgage	As low as   3.29%
Variable Rate Special	As Low as Prime -0.50%
Home Equity Line of Credit	As Low at Prime +.50%
10 Year Rate Special	As low as 3.99%
5 Year Cash Back for Down Payment	As low 4.85%

www.realestate-hamilton.ca

Listings, Sales, Average Sales All Up

The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1367 properties sold through the RAHB Multiple Listing Service® (MLS®) in June.  This represents a 2.7 per cent increase in the number of sales over June of last year.

There were 1980 properties listed in June, an increase of 2.5 per cent over June of last year.   The average sale price of $397,374 was an increase of 8.5 per cent over the previous June.

“After a record-breaking month for sales in May, June settled into more of a normal pattern,” said RAHB CEO Ross Godsoe.  “While June sales were higher than last year at this time, they fell a little below the 10-year average for the month.”

Seasonally adjusted* sales of residential properties were 4.4 per cent higher than the same month last year, with the average sale price up 8.8 per cent for the month.  Seasonally adjusted numbers of new listings were 2.2 per cent higher than the same month last year.

Seasonally adjusted data for residential properties for the month of June, 2013:

Actual overall residential sales were 1.9 per cent higher than the previous year at the same time.  Residential freehold sales were 2.6 per cent higher than last year while the condominium market saw a decrease in sales of 1.3 per cent.  The average sale price of freehold properties showed an increase of 6.8 per cent over the same month last year; the condominium market saw an increase of 10.1 per cent when compared to the same period last year.

The average sale price is based on the total dollar volume of all residential properties sold.  Average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value.

The average days on market decreased from 38 days to 37 days in the freehold market and increased from 40 days to 46 days for condominiums.

Year to date, listings are down 1.1 per cent compared to the same period last year, while sales are 3.3 per cent lower.  The average sale price for the first half of the year is 7.7 per cent higher than the same period last year.

“We are still a little behind where we were last year in numbers of sales and listings for the first half of the year, but the gap is decreasing as the year progresses,” added Godsoe.  “Our average sale price continues to be higher than it was the first six months of last year.  How recent announcements of increases in some mortgage rates will affect the rest of the year is still to be seen.”

Every community in RAHB’s market area has their own localized residential market.  Please refer to the accompanying chart for residential market activities in select areas of RAHB’s jurisdiction.

*Seasonal adjustment removes normal seasonal variations, enabling analysis of monthly changes and fundamental trends in the data.

www.realestate-hamilton.ca