Vancouver-Condo Real Estate Newsletter 
May 2007
The spring selling season is in full swing. We are seeing a relatively fast turnaround on the majority of properties listed for sale. The increase in the number of new listings is giving buyers the opportunity to make that long awaited move into their new home. While the overall number of sales is down from this time last year, the selling prices continue to climb slightly. With the increase in the number of properties coming on the market, it is extremely important to list your home at an accurate price and a specified marketing plan.
Homebuyers get a break…a recent amendment to the Bank Act now allows borrowers to receive conventional financing with a 20 percent down payment, rather than the previously needed 25 percent. This change puts us in line with the U.S. where the cut off for conventional mortgages has long been 20 percent. This means that mortgage insurance will only be needed if the homebuyer has less than a 20 percent down payment.
To give an example, for a borrower with a $200,000 mortgage, this change would save them the 1% mortgage insurance premium, or $2,000, based on having an 80% LTV mortgage.
Seller Smart Tip
Should you renovate? If your condo or townhome needs some work, making smart renovations can yield a good return on investment and help you sell faster. If they fail to increase either the speed with which you’re home sells or the selling price, then it is not worthwhile.
Make sure that the results look professional. Painting your home can make it more saleable, but only if the finished product looks professional. If you are uncertain about the quality of your work then it might be better to get a professional or pass on the project entirely.
What to renovate: If there is a partial repair or renovation that you started but haven’t yet finished then this definitely needs to be addressed. Most buyers will not see value in a ¾ finished project. They will just see a big mess.
Few things turn off potential buyers more than the possibility of water damage. If you have marks from a minor issue that was addressed in the past then take the time to remove the signs of water damage.
Nothing will give you a better return on your investment then making sure your kitchens and bathrooms look sharp. Invest your time and effort in these rooms. Make sure all cupboard and closet doors open smoothly and the doorknobs are all tightened.
All faucets and light switches should be shiny clean or else replace them. Think about refinishing or replacing cabinet doors that look worn or dated, or swapping old, dated cupboard hinges and handles for more stylish ones.
Do not jump into big scale renovations without careful thought.
If you are thinking of making a move in the near future, or just want to know the value of your home, please give me a call. I will put my years of experience to work for you.
Sincerely,
Robert Valeriote |
