(May 20, 2018) In this episode we talk with John Darel of Maxwell Canyon Creek Calgary on the various factors involved in determining a homes list price. We also touch on importance of hosting open houses. To end off the segment we discuss home staging strategies and tips with Elysse Bulloch of Simply Stylish Staging.
Podcast Notes:
SEGMENT 1: Interview with John Darel and Elysse Bulloch
Guest #1: John Darel
DETERMINING YOUR LIST PRICE
- historic property info, current market for comparable properties, sales history, features/conditions of property, sales and listing market, customer motivation
- good data analysis = accurate list price, optimum positioning of your property
- property tax assessments are not a reliable tool when determining your list price
OPEN HOUSES
- timing, presentation and delivery
- instantaneous feedback
- magnet for intel about your property and potential buyers
- encounter advocates for your property (neighbours, other realtors)
- the effect of being a tangible commodity
Guest #2: Elysse Bulloch
- selling a lifestyle to a buyer
- staging is equally popular with empty or occupied homes
- budgets for staging can vary from $250 to $3,000
- staging focus is on “impact spaces” of your home (i.e. kitchens, living room, dining room, master bedroom)
- staging services are often included in realtor services and offerings (part of their overall package offering to clients)
- 3 musts for homeowners about to sell their homes: (i) updated paint (ii) updated flooring (iii) STORAGE
SEGMENT 2: Mortgage Minute | Rising Interest Rates and Diminishing Purchase Power
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In recent months mortgage qualification has risen to a new standard that for the most part has had drastic repercussions to many existing home owners and a countless number of potential home buyers
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But adding to the mix in recent weeks, we’ve quietly seen the rise of another standard…one that is occurring with little or no fanfare at all – rising interest rates
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Existing home owners and potential home buyers are affected by rising interest rates, but each in a slightly different way:
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If you are a home owner with an existing mortgage, be aware of your options to extend the term you currently have (assuming it is a favourable interest rate) by considering an early renewal. Alternatively, if your mortgage is up for renewal in the next 6 to 12 months, consult with a mortgage broker and discuss current market rates and the feasibility of restructuring your mortgage to position your self for stability in uncertain times. The window of opportunity to do so still exists, but be aware that (literally) thousands of dollars in potential savings disappear as every interest rate hike occurs
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The second group affected by rising interest rates, the potential home buyers, are impacted slightly more than existing home owners. Not only are they faced with rising interest payments on their eventual mortgage, but with each and every rate hike, their purchasing power is diminishing thanks to the 2% stress test for mortgage pre-approvals
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- Regardless of whether you are an existing home owner, or a potential home buyer…the ruthless behaviour of interest rates have now entered the field of play
- Whatever you do, don’t lose the initiative and let the opponent (in this case, rising interest rates) dictate your destiny. Be proactive and take full control of your financing, it’s in YOUR best interest
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