Why purchase during the cold winter months?

We have hit the first official day of winter. Some forecasters say that it is going to be a warm winter, while others say that it is going to be a long cold winter. I guess one of them will be right, or at least pretty close. So why would ANYONE consider purchasing a property during the winter? Or purchase while the market is so soft, period. Only crazy people with more money than brains, right? Well, let's look at what history shows us. More millionaires were created during the great depression than in any other period in history. I am not saying that you have to be millionaire to buy now. What I am saying is, those people bought while everyone else was holding back, or had no money at all. The people that came out on top bucked the trends and went ahead with investing, in such things as real estate, while there prices were low and there was very little competition, if any. Then, when the markets eventually turned around, these people who had made investments at such a low cost, saw their stock rise! Buy low, sell high - is that now what we have all heard about? Something to ponder. I have experienced this during a couple of cycles in the local market. Once, I timed it right and did very well. The second time, well, I got cocky and missed out. So why would anyone buy a property this time of year? Wide range of selection. Very little competition. Low prices. Or, you can wait until everyone else is looking and compete with them...and maybe kick yourself later for procrastinating!

Things to Avoid Before You Buy A Home

Okay, so you have been to the bank or mortgage lender and you have been pre-approved for a mortgage. Here is an excerpt from realtor.com about what NOT TO DO when looking for your next home: While most of your hard work of building a good credit profile and amassing savings for a down payment and closing costs is behind you, it’s important to remember that your lender will recheck your credit just prior to your settlement date and will also verify a few details such as your place of employment to make sure nothing has changed. That’s the key phrase—“nothing has changed.” You must take care to maintain the same credit profile that led to your loan approval until your mortgage paperwork is completely signed. Avoid the following actions to ensure a smooth settlement: 1. Don’t apply for new credit: It may seem natural to apply for a credit card at a home improvement store or a furniture store when you are about to become a homeowner, but applying for credit can lower your credit score. Not only will you lose a few points because of a credit inquiry, but if you are approved for new credit, a lender may worry that you will spend up to your new credit limit and then default on your loan. 2. Don’t close any credit accounts: You may be feeling that this is a good time to get your financial house in order by closing unused credit accounts or transferring your debt to a new credit card with a zero-interest balance transfer offer. While that’s a smart move financially, it’s a bad one for your credit score because you lose points when you have a higher usage of debt compared to your limit on one credit card and to your overall credit availability. Wait until your closing is complete before you make these changes. 3. Don’t move your money around without a paper trail: Your lender will need the most recent bank statements before you go to settlement, so if you have any unusual deposits you will need to provide complete documentation of where the money came from. If possible, it’s best to move the cash you will need for your home purchase into one account before you apply for a mortgage. If not, make sure you have complete and accurate records readily available. 4. Don’t increase your debts: In addition to your credit score, your debt-to-income ratio is extremely important to a loan approval. If you take on more debt you could be in danger of going above the maximum acceptable debt-to-income ratio. 5. Don’t skip a payment or make a late payment: One of the most important elements of your credit score is your history of on-time, in-full payments, so don’t get so caught up in your move that you forget to keep up with paying basic bills. 6. Don’t buy a car: You may be feeling that a new car would be a nice addition to the driveway of your new home. Resist that feeling. Even if you can easily afford a new car, the depletion of your savings or the addition of a new car loan could derail your mortgage application. Wait until after you have moved to switch to a new car. 7. Don’t change jobs if you can help it: While a job change could mean a raise or a path to a better future, it could also delay your settlement. Your lender needs to verify employment and will need paystubs to prove your new income before your loan can go to settlement. 8. Don’t spend your savings: You’ll need cash on hand at the settlement for your down payment and closing costs and your lender may even verify your cash reserves one more time, so make sure the funds stay in place. In other words, no matter how hard it is at this exciting time, it’s better to do nothing than to do anything.

'Tis the Season for the market to slow down

Over the past couple of weeks, the residential real estate market has slowed down. We have not had much for showings, and have had just a couple of new listings. This is not unfamiliar for this time of year. The cold weather has not helped, but also people do not tend to move around the Christmas season. Saying that, when we do get people looking at this time of year, they tend to be serious, as not everyone likes to move in the middle of winter.

Fall market

The last half of September has seen a slow down in showings. I would say a slow down in the market, but as soon as I tell someone that, it gets busy. There have been sales, but not as brisk as during the summer. All in all, I would say that it has been a good year for the local real estate market. We are even seeing a few residential lots sell that had been on the market for quite a while. When lots sell, hopefully this leads to new home construction. New home construction usually leads to activity, and a more positive outlook on the market. While there has not been much for building activity before this past season, there are two homes being built in the Whispering Creek area, and there have also been a few move-on houses set up in town. And with the construction of the new seniors housing project to start by spring, this could be the beginning of some busy times in the local construction business. Plus, with the new seniors facility, there will be 20 to 25 more jobs. If we think that the rental market is tight now, wait until those new workers start looking for a place to live! We need more rental units for these people and it will be upon us quicker than we think. With only 17 houses for sale on the MLS system today, plus a few for sale by owner places, I am thinking that the coming year is going to bring some challenges!

Thinking of selling?

If you are thinking of selling your home, it is best to plan ahead. Put yourself in the shoes of potential buyers. First of all, how does your place look from the street? Does it look inviting, well taken care of? Or does it look like a "fixer-upper", that has been neglected over the years? There is no time like the present to get the yard cleaned up, paint the fence, fix the fence, get rid of the weeds, paint some trim, fix broken windows, and clean up the junk in the yard. Now it's time to go inside - do the keys work? Just because you know how to hold your tongue just right and fiddle with the keys to get that stupid door knob to open, does not mean the people who are coming to view the property will. That can be a big turn off especially if the real estate agent is trying to open the door and has troubles, while the clients are getting soaked in the rain, or freezing in the cold. Now, step inside. One of the big senses we have is smell. Does your place smell like roses, or fresh baked bread or cinnamon buns? Or does it smell like the garage has not been taken out in weeks, or like there is a dirty cat little box smelling up the joint? This is where some fresh paint would not only help things look better, but also give a newer smell to your house. Cleaning is always a big thing. Make sure the house is clean. Always. You never know when you may get a phone call from someone who wants to look at your house on short notice. Talking about cleaning, DE-CLUTTER. You will be moving anyways, so just as well start to pack up the clutter and get it into storage, or your parents garage, or something. Clutter makes houses look small and not as desirable as when people walk into a large open area. We all like our space, so let's make things look big! Paint. This is your best return on your investment. Personally, I do not like painting, but once it is done, you might like it so much you may end up wanting to stay! So if you are even just thinking about selling, the time to start planning is now. Save some stress later on. If you end up deciding not to sell, well, you end up with a cleaner, nicer looking home anyways. What's wrong with that?

Tips for preparing for fall and winter

As the days start to get shorter, it is time to start thinking about the fall and winter seasons. Here are a few tips for life at the lake: start thinking about winterizing your RV or cottage. Get in contact with management about getting your water shut off if you are not going to be around for the winter. If you are not comfortable winterizing your RV, talk to a neighbour. There are people who have been out there for years who are more than willing to pass along a few helpful hints. If you are going to be away, let your neighbours know so that they can keep an eye on your place for you. Let management know too, so that they can also keep an eye on your place, and leave them contact information in case they need to get in touch with you. Hopefully all will be good but we should be prepared. Best to be safe than sorry.

A good summer for sales

The real estate market has been soft in Vulcan for several years. Last year, things started to pick up, I would say mainly due to the floods in High River and Hidden Valley Resort. This year, the momentum carried forward and we have seen a good spring and summer as far as real estate sales go. Even though activity seems to have slowed down a bit in the past week or so, there have still been many houses exchanging hands since the beginning of the year. I guess I should be more specific - there have been a good number of houses exchanging hands this year that are priced under the $250,000 mark. Houses priced higher than this are getting some showings, but not much for sales. Our local economy has not brought in new jobs, or new businesses, that can help potential buyers afford to make payments on the higher end houses. That is the way it is for the local people. As for those who are looking for housing in Vulcan and are from Calgary and area, they are still getting a lot for their investment here than they were getting back in the city. With the average house price in Calgary hovering around the half million dollar mark, purchasing a higher end home in Vulcan for much cheaper seems like a great deal. And it is a great deal for those who do not have to commute to the city everyday, or perhaps only a day or two a week. We just need to get more of those people down here to see what Vulcan has to offer!

Real Estate activity - year to date

Despite the cold, long winter, our office records show that we are 11 transactions ahead of this time last year. The overall inventory of houses available for sale within the Town of Vulcan is lower than last year. Through the Calgary Real Estate Board, we are at less than 20 houses currently for sale. Taking into account listings from other real estate boards, as well as private sales, the number is most likely closer to 30. There are a few higher end properties for sale, but the action on those is limited, mostly due to our local economy. We just do not have many higher paying jobs around for people to afford the higher priced homes. Basically, with supply and demand the way it is, one could assume that if you have a property priced under $200,000 that is in decent shape, you are going to see a lot more action than a higher end house. We have also seen a residential lot on Centre Street sell at $45,000, while there have been other residential lots sell close to the rodeo grounds under the $30,000 mark. We are seeing "move on" houses being set up, or in the process of being set up on these properties. There is one new house being built along the golf course on Whispering Drive. There is talk about some "spec" homes being built this year, but I have yet to see any evidence of that.

AREA Buyer Representation Agreement Video

Live long and prosper: A Vulcan County experience

Live long and prosper: A Vulcan County experience

Activity on the increase

The spring has seen an increase in activity in the local real estate market. The inventory has not picked up yet, but we are getting lots of people out looking at properties. Personally, I have seen many more people from Calgary coming down and checking out what they can buy here, and it is a fraction of what they could get in the city. Plus, for some people, the city is just getting too big for them and they want a less busy, less crowded lifestyle. It is kind of funny when you think about it - those of us who grew up with small town life thought that the city was the place to go to, to get jobs, to meet new friends, to party, where all of the action is. Then, when we get older, we figure out that the small town life is really what we were looking for all along...and we gravitate back to places like Vulcan.

Lower inventory

At one point this past week, there were only 23 residential properties with houses for sale through the MLS system, according the CREB stats. That is low. Mind you, traditionally, the level of inventory will pick up once spring rolls around. There is not much to choose from today for higher end type properties. Most of what is available is under the $200,000 mark. There are some buyers out looking around, but they do not have a whole lot to choose from. I am still hesitant to call it a Seller's market, because, on average, we have not seen a price increase. However, things could change if the inventory of properties does not pick up. This could lead to a very interesting spring in the Vulcan residential market.

Sales in the Town of Vulcan for 2013

I have compiled information from the Alberta Land Titles System to create a report for residential house sales in the Town of Vulcan for the year 2013. I alone gathered the information, and, being human, I may have made a mistake with some of the numbers. I do not guarantee the results. There, disclosure out of the way...here is what I found: Total house sales was 73 with an average sale price of $177,690. Fourty-five of those houses sold under the $200,000 mark. My "2 cents" says that we cut down on a lot of the lower end properties last year, and we are still seeing plenty of interest in the under $200,000 price tag.

"Well I am not going to GIVE it away..."

Markets go up and markets go down. It is a cycle. I hear this from economists, my university professors, and many other so called experts. It happens. So what do you do when you purchased an investment, such as real estate, when it was at its peak, and now the market is down...but you don't want to "give it away". That is certainly a question to ponder. Just because your neighbour sold a couple years ago for X amount of dollars, (and of course your place is much better than the neighbours) it does not mean that yours will sell for more than what he sold for, or even for an equivalent amount. The current market value is what a buyer will pay for a property today, without any outside interference (such as a bitter divorce, foreclosure, or something like that). Consider this example - say I purchased a cottage at the lake back in 2007 for the family. I paid $300,000 for a cottage, which was a heck of a deal at the time. Over the years, I have kept it up, fixed up a few things, and it looks just as good now, if not better, than when I purchased it. Now, though, my kids are past the stage of wanting to come to the lake with mom and dad, and we hardly ever go out there. Thus, I want to sell. I have heard that the market has been soft over the past couple of years, so I am prepared to not go overboard with the list price, but "I am not going to give it away either". What exactly does that mean??? Of course, I am not going to give it to the next buyer that comes out of the woodwork. "Giving" means you transfer possession without any compensation, at least in my opinion. (I am not sure what the dictionary says, and frankly, I am on too much of a roll to care) The question should be, "How much of a loss am I willing to absorb if I get a low offer?" Perhaps I have a mortgage to pay off, so I am limited that way, as to how much I can sell for. Or, perhaps I am just too pissed off to take that much of a loss on my investment. Welcome to the real world! If I am not ready to take a loss, then I should not be trying to sell my property in a soft market. However, if I really want to sell in a soft market (sales are slow, not much competition among buyers) I need to decide what my priorities are - am I ready to take a loss? how much? How long am I ready to sit on the property and pay taxes, utilities, and whatever other fees (condo?) that come along with it? Sitting on a property costs money too, unless say you have a vacant lot. No. wait. Property taxes. And then maybe there is the stress of maintaining a second property. How much is this all worth to me? To my family? Oh, and just because cousin Joe who lives at the other end of the country, who is in a different market, and different market cycle, is experiencing a hot marketplace and can't BELIEVE your place hasn't sold yet, doesn't necessarily mean that he had better luck, a better real estate agent, or better knowledge of the market. If he knows the market, he knows it cycles, and that just because the market is hot there, much like the weather, does not mean that it is hot here. Oh, how the experts come out from nowhere and can tell you what you have done wrong, what you should do, and "Boy, it that was me, I sure would have done things differently." Just smile and nod, and walk away. When you want to sell, check out the local market. Check with a LOCAL agent, who knows the market where your property is at. You will get all sorts of advice from everyone, but LISTEN to the local agents, local business owners, and consider what they have to say. Then, look at your own scenario. If the market is not in your favour, consider whether now is a good time to sell or not, and if you still want to sell, look carefully at your options. Of course you are not going to GIVE it away, but maybe, just maybe, the best thing to do would be to take your losses, and then be done with it. Finished. And then walk away and not worry about it anymore. I had that real life scenario happen to me. I listed my own place too high, letting it sit on the market with very little action, still paying taxes and utilities, and driving a couple hours each week to take care of a house I no longer lived in. I dropped the price. When I finally got an offer, I cringed. It was lower than what I wanted. However, it was an offer and it was in writing. I accepted it. Didn't like it, but I did. When the deal went through, my wallet was not as heavy as it should have been, but I was relieved that I no longer had to worry about this property anymore. I am not saying that my decision is right for everyone, but it worked for me. Just something to think about...