Dennis Philps

Concerned about the mortgage crisis south of the border, the Canadian government is seriously considering implementing making more stringent qualification criteria. Two major changes are at the forefront: 1. Lowering the maximum time to pay out a mortgage [called the ‘amortization’ period] from 35 to 30 years. In practical terms, take a $200,000 mortgage at 4.2% interest. A 35 year amortization period would yield a principal plus interest payment of $905.30. Reduce the amortization period to 30 years and the monthly payment rises to $973.80–over $2.00 per day increased payment.

The second major change being considered is increasing the minimum 5% cash down-payment to $10%. On a $300,000 payment, a qualified buyer would have to have at least $15,000 of cash to put towards a mortgage. In the new scenario, that minimum cash downpayment would increase to $30,000. For many buyers, getting in to their new home would either become impossible or much delayed as they set about to save up an additional 5%.

If you are considering buying a home in Edmonton this year, sooner is better than later given these changes and the possibility of a 4-5% increase in home prices in 2010.

I would be happy to assist you in getting you safely and satisfactorily into your new home!

On April 21, 2011 in Edmonton proper, there were 4,421 single family homes and condos for sale in Edmonton proper; if the surrounding satellite towns are factored in, the number rises to 6,278.  In the last 30 days, 994 properties have sold in Edmonton and a further 463 in the satellite towns.  Why is it that some properties are selling quickly and others are on the market for an extended period of time in spite of some price adjustments.

The answer to this important question is a key to selling your home.  There are a few factors to grasp.  First and foremost, the real estate market is extremely price-sensitive.  With so many homes for sale, buyers have the luxury to look at many homes before they make a final decision.  After viewing a handful of homes, most buyers conclude that there are some inferior homes that are over-priced for the marketplace.  Their opinion is based on location [quiet or noisy, commercial properties or major roadways nearby, etc],  general appearance of the exterior and interior of the home [“This home has great potential but will require a lot of work to restore it to its potential‘], and the price.  Many buyers are prepared to pay top dollar for a home that presents itself as ‘a cut above the rest.’  That being said, there are another whole group of people who are looking for ‘fixer-uppers’ so they can put in the sweat equity and then flip them for a profit.  However, these investor/buyers will only make an offer on such a home if ‘the price is right.’

Second, the marketing of that home is critical to its appeal to the buying public.  Perhaps a majority of qualified buyers view homes on the internet long before they ask a realtor to show them that property.  Therefore it is crucial that a seller ascertain the number of websites on which their property will receive worldwide attention.  My sellers will find their properties on at least four websites: www. realtor.ca [The national site of the Canadian Real Estate Association]; www.remax-western.ca; www.edmonton-homesearch.com and www.edmonton-real-estate-info.com. Buyers will often discard some properties just on the basis of the pictures and description they find on the internet.  Correct spelling and grammar, accurate information, quality pictures, justifiable descriptions all contribute to a probable showing.

However, I have had some buyers walk into a home that had excited them beforehand to experience major disappointment!  ’Am I in the right house?‘ they ask.  ‘The pictures and description paint a much different story than the home is prepared to offer!’ they groan.  I haven’t met a buyer yet who appreciates the ‘smoke and mirrors treatment‘.  If a home needs a lot of cosmetic repairs, it is grossly unfair to the incoming buyer to describe it as a home that shows ‘extremely well.’   Honesty up-front in pricing and description can off-set the negative reactions that can be so easily expressed.

Taking some time to unclutter [pre-pack!], paint, clean and repair the home prior to listing it can pay big dividends later on.  Remember, with so many competing listings trying to attract a qualified buyer, sellers must be realistic in pricing and expectations knowing full well that superior homes properly priced will attract immediate attention.  A ‘Sold!’ sign will be posted on the front lawn in a short time if the keys to selling a home in Edmonton are diligently applied!