Category: Calgary homes (5)

Hot-Real-Estate-Market
Wondering what YYC real estate is doing in 2013? We checked out the latest trends and  hot spots to keep you riding the wave.

  1. Tighter Inventory and a faster moving market: While the rest of the world took a real estate holiday the Calgary real estate market has been chugging along quite well (thank you very much) and steadily chewing up any over supply of  inventory left over from the 07 bump. Inventory has been steadily dropping across all categories but most noticeably in the single family mid-range market.
  2. Gentrification is the new normal: Mature, inner- city communities and those with plenty of walkable amenities are blushing with all the attention they’re getting. Buyers are not shy about knocking down modest homes on good lots or renovating homes that have the bones and adequate floor plate.
  3. Mortgage rates will remain low: However, banks have not opened up the taps to ease the flow of cash to new buyers. This is keeping the brakes on the market nationally and puts a squeeze on first time buyers or those who need to refinance. This keeps a lid on the entry level market but upper end buyers have capital so expect some cautious expansion in the premium and luxury arenas.
  4. An ample supply of starter homes and apartments: Condo prices rose the least over any other sector this past year due to a fairly competitive market and a good supply of new developments. Developers are upbeat and many national developers are focusing their effort in Calgary bringing some fresh products and new innovation to this market.
  5. Price Increases will be moderate for Condos: The condo markets experienced a 3% increase last year. Expect that this steady price increase will continue and likely accelerate this year. Rising construction costs and the depletion of cheaper land will bear on the prices as developers have nowhere to go except pass on these increases to buyers.
  6. Rental Boom: There, we said the B word, and it applies right now to the rental market. A tighter mortgage market lends to a better rental market. It also appears that many of the new local hires are provided a leased property to supplement their 2 or 3 year employment contracts. As a result, the market for both bare and furnished rentals has boomed over the past couple years. This had the positive effect of absorbing some excess inventory that Buyers purchased in 07, and keeping many properties off the market that otherwise would be currently available for sale. Be cautious to purchase investment property based on inflated rental rates unless you have good reason to believe they are  sustainable. Keep an eye on this trend, as it will be interesting to see what our real estate market will look like in 2015-16 when many of these rentals come back to market.
  7. Bedroom Communities are wide awake: Developers have discovered that it’s cheaper and easier to develop in neighboring communities than more expensive and onerous Calgary subdivisions. With City Hall levying higher taxes on suburban builders to more reflect the real cost of services they tap into, Developers are voting with their feet and developing where they can get the best leverage. This means more focus on these bedroom communities outside the City and that’s where we saw much of the action this past year. Expect this to continue in the short term until these bedroom communities start to realize they face the same challenges as Calgary (and implement similar solutions to pay for infrastructure).
  8. Infills get better: Attached is the new normal and three storey infills become more common. Accompanying this trend, look for builders to provide (roughed in) elevators as a new standard to accommodate a broader demographic of Buyer. Cottage homes above garages will receive more attention, as well as underground basement access from the home to the detached garage. These tunnels can be used for additional space, storage, wine rooms and such and don’t add to your development footprint.

For more insights into the Calgary real estate market or your Calgary neighborhood contact us

calgary-sunsetCalgary real estate resembled a more vibrant market in 2012 with a good kick start in the early months of spring and finished the year with strong, yet cautious momentum. This sales trend was most noticed in the Luxury home category which picked up dramatically in the spring and has recently coasted into a bit of a lull. The mid and lower end home market gained traction and has calmed in recent months but remains the bread winner. A drop in the number of available MLS listings in this low/mid category has kept the supply in check and prices relatively firm. Condo apartment prices crept up 3% year to date and the recent influx of new condo builds is maintaining a good supply of product and holding the prices competitive. Continue reading ..

 

multiple offer

How to win a multiple offer

While most Buyers dread being in a multiple-offer situation, with a little preparation Home Buyers can win a multiple offer situation without necessarily paying more money. To win that house you’ve been pining for, you’ll need a battle plan. Here are eight key steps to craft a winning scenario:

1. Address the  potential for a multiple-offer strategy right from the start   When you initially meet with your Realtor, address the  possibility of a multiple offer scenario on any property that you discover and understand your options. Here’s what you need to know:

First, you can enter the negotiation as if you are not competing. Second, if you really want the house and the value is apparent, you can offer close to list price with enticing terms. If you can’t live without this house and the list price is reasonable, then it’s smart to offer full price or somewhat above the asking price. The final option is to simply walk  away if a competitive offer scenario ensues. Run through and discuss these scenario’s and determine how you will handle them if it were to occur without the pressure and emotion of the actual moment upon you. This will provide you a solid framework to reflect on in the heat of the moment, if and when it does occur.

Remember that while you are calling the shots in the negotiation (ie: it will be your house and it’s your decision as to how the offer should be negotiated) you can benefit a tremendous amount from the experience and advice of your Agent who has experienced this event numerous times.

2. Be readily available to view properties and react  This point really attempts to preclude a multiple offer situation, but it is so important that it’s worth mentioning. Make sure you are flexible to view homes at odd times or earlier in the day than most people are able and this will give you an advantage in being the first to view new listings. If you do spot a great home that you know is right then do not delay in offering. You can always add a condition to ensure you haven’t overlooked something but acting quickly could get you the home you want before the competition sees it, and may preclude a multiple offer situation from the outset.

3. Insure a proper presentation   Find out which other Agents have written offers so you know what you are competing with. Your Agent should know the experience and track record of these other Agents. If the Listing Agent has written one of the competing offers then common protocol often requires that the office manager (or other third party representative) be present during the multiple-offer presentation, to ensure the Listing Agent does not unduly favor the presentation of his own offer.

4. Ensure you allow the right amount of time to keep the offers open    Prior to the time you present your offer, ensure that your Realtor enquires about the time parameters required to present the offers. You want to ensure that you have enough time to properly respond while not encouraging yet further offers to enter the competition allowing the negotiation to drag out over a long  period of time. Make sure that you are readily available to accept or counter the Sellers terms – this can make the difference and in some cases your Agent will ask you to wait in the car (or be nearby) while they are presenting your offer in case you need to make any last minute changes to get the deal.

5. Pre-Approval, not  just Pre-Qualification    A good way to be prepared for a multiple-offer situation is to obtain a pre-approval letter from their lender.  “Pre-approval” means that the lender has checked your credit and that you will be approved once the title work and the inspections are  complete. A pre-qualification letter means that the lender has looked at the  application but has not checked the borrowers’ credit. Consequently, you should try to obtain a  pre-approval, over a pre-qualification letter. Make sure that you have this in your file and include it when you present your offer. Better yet, eliminate the financing condition altogether if you are confident in obtaining your financing – first be sure to consult with you Realtor and Mortgage Broker/Banker on the risks associated with doing so.

6. Outflank the  competition    There are a number of ways that you can make your offer  stronger than your competitors’ offers. First, you can allow the seller to select the closing date.
Another approach is to shorten the due diligence periods.  In some circumstances, you may even eliminate the loan or inspection conditions entirely, (for example if you are tearing the home down) but be cautious in doing this and ensure that you consult with your Agent. Often Sellers will take an unconditional offer of less value than a higher offer that has conditions attached. Smart Sellers know that when the stars align and the have a multiple offer situation, this is the best situation they can expect and once everyone sober up from the party (and the property is longer on the market) they may not achieve nearly the same level of interest again

Also try to be flexible about any  special needs the seller may have, such as leasing back the property or taking  something such as the big-screen TV that is currently attached to the property.

7. Don’t be afraid to  ask    While there is no obligation for the Seller’s Agent to disclose what offers are on  the table, don’t be shy about asking. You could ask, “What has the seller turned down?” Whether or not you receive a response is debatable. Many times, especially  when their circumstances may have changed, sellers have ended up taking much less than what they turned down at an earlier date.

8. Be prepared not to get the property   No one likes losing a house that they want. In fact, some  people can become quite upset especially when emotions are involved or you have been looking for some time. Understand that there will always be another property around the corner that comes available and sometimes it’s even better than the one you lost.

Multiple offers can be challenging, but if you will follow  the simple guidelines above, you may be surprised how often you’re taking a closed transaction check to the bank. These suggestions just scrape the surface of the possibilities that multiple offer situations can offer. By far your best offense in these situations is to ensure that you have the best, most experienced Agent possible representing you. Since the markets which multiple offer situations flourish occur sporadically, having access to the broadest depth of experience possible will increase your opportunity for success. Sano Stante Real Estate group has over three decades of expert real estate marketing and negotiating skill that you can have on your side of the table. Call us today.

ScalePeople often overlook the important question of what is the proper progression when trading homes. The two options are to either buy first before selling your home or sell your home first before committing to another purchase.

There are several important factors to consider when making this choice.

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Selling a home in winter time in  Calgary, or any cold climate offers some unique challenges for homeowners and Real Estate Professionals alike. Here are a few tips to make the best of the chilly weather and cooler market:
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