Posts Tagged ‘calgary real estate agent’

Winter Furnace Maintenance

Tuesday, November 18th, 2014

Stay warm insdie

The white stuff has fallen again, this time in a much more seasonally appropriate manner than September’s snowpocalypse (I can’t believe spell check doesn’t have a problem with that word), and it’s time to double check your home is winterized if that hasn’t been done already. One key appliance for Calgarians over the next several months will be the furnace, and you want to make sure that puppy is running smoothly and reliably; a 10:00 pm emergency repair call in -30 degree weather could cost you a small fortune.

It’s a wise idea to contact your favourite trusted furnace specialist sometime in the fall for a tune up, just to ensure everything’s running as it should. There are a couple things you can take care of yourself as well, though.

Your furnace filter should be changed every one to three months, and some recommend that cheap fibreglass filters are actually better for your furnace than expensive high efficiency ones; check with a professional to be sure of what’s right for your system. Check your air return ducts for drafts, and seal with metallic tape any that you find. There are several more steps that more industrious homeowners can do, but unless you’re a confident do-it-yourselfer, call a pro.

Also consider creating setbacks on your digital thermostat, lowering the temperature when you’re away or asleep, and raising it back up again when you’re around. This can lead to some significant cost savings on your gas bill – up to 15 percent according to the Canadian Centre for Housing Technology – as long as you are prepared to find the right balance. Lowering the temperature by too much can lead to an uncomfortable house, high humidity, and reduced airflow, which may not be worth the money saved; a two degree change is the safest bet, offering some savings with little downside.

Have any other tips for keeping your house warm? Share them in the comments!

Looking for a new house to enjoy this winter? Contact me!

Renting or Owning: What’s Cheaper?

Sunday, October 19th, 2014

Owner vs Renter

If you’re strapped for cash, is it more cost-effective to rent or to buy your home? This is the eternal question, amongst those who like to debate real estate strategy anyway, and I doubt I’ll solve it with a definitive answer here, but there are plenty of factors to consider when figuring out which method of putting a roof over your head is easier on the wallet.

Let’s start with renting. When you rent your place, your landlord is responsible for pretty much all the maintenance and upkeep; unless you decide to do something cosmetic on your own dime – paint the bathroom pink, for example – your rent covers anything and everything. Furnace conks out? Not your problem (other than being cold until it’s fixed). Roof is due for repair? The owner’s gotta pony up. Freak hailstorm rips off your siding? You get the idea. Add to this absolution from financial obligation the fact that you need only purchase tenant’s insurance covering the cost of your belongings – and not homeowner’s insurance that includes the property itself – and renting can appear to be a real bargain.

Of course, rental rates in Calgary are famously high, and rising. Mayor Nenshi actually used the ‘g’ word in describing some landlords’ policies in recent years. You’ll almost always pay significantly more in rent than you would on a mortgage each month.

So let’s look at homeownership. First off, you’ve got to pull together a down payment of at least 5 percent of the property’s value. So buying a $300,000 home would necessitate at least a $15,000 deposit – a fair stretch more than the first and last months’ rent needed to secure a rental property. Once you’ve bought, though, your monthly mortgage payments can look pretty sweet compared to rent. With a 4 percent fixed interest rate and a 25 year amortization, that $285,000 mortgage would require about $1500 per month in payments (maybe a little more when factoring in CMHC insurance – we aren’t being exact here); the average rental rate for a two-bedroom home in Calgary is about $1600. Consider that every payment you make on your home is building equity, as opposed to disappearing into a black hole, and the value of ownership becomes clearer.

Of course, as an owner you take on the financial responsibilities renters get to ignore: home maintenance is perpetual, homeowners’ insurance is more expensive (although its still pretty cheap), and property tax bills show up each year. There’s no getting around the fact that if you’re living paycheque to paycheque, you may be better off renting, at least until you can build up a nest egg.

If you can swing it at all, though, maybe by cutting expenses somewhere or picking up some extra hours, long-term home ownership definitely provides the greatest financial security. Each month you own more of your property, giving you equity that can be leaned upon in tough times or built up as part of a retirement strategy. Mortgage payments are not just checking off shelter on your list of necessities, they are also improving your financial future. Don’t like maintenance or yard work? Consider a condo, which can give you the financial leg up without the hassle of owning a lawn mower.

The decision to rent or to buy is deeply personal, revolving around your own individual circumstances and financial goals. If you’re interested in talking about your options with a professional, contact me today with no obligation.

How do Realtors Get Paid?

Saturday, October 11th, 2014

Realtor Income

One question I get asked from time to time is, “How do you get paid?”, and its a pretty good query. Some misinformed folks think a brokerage house provides a monthly salary, while others believe Realtors are paid from both the buyer and the seller of a property. Here’s how it all really goes down, in simplified terms:

Realtors work strictly on commission, payable at the close of a deal. That means the real estate agent who works to sell a home for three months, spending time and incurring costs, gets no money in return if the property doesn’t end up selling. That’s just a cost of doing business. The commission amount is negotiable, both in the total percentage and in the split between the listing and the selling agent. Traditionally in Calgary, for an average house, the commission works out to about 4 percent (7% of the first $100,000 + 3% of the balance) with half going to the seller’s agent and half to the buyer’s agent.

Some agents must also share their commission with their broker, meaning that an individual Realtor could end up with as little as a quarter of the commission on the sale as gross pay, depending on their broker agreement.

As Realtors, we are running a small business and as such have a laundry list of expenses that must be paid from the commissions: office space, technology updates, photography, home staging, advertising, MLS fees, and so on.  To be successful, then, an agent must maintain a good number of listings and clients at all times, offer the absolute best possible customer service, give back to the community, and maintain a rainy day fund.

Hopefully this is illuminating to those thinking of buying or selling with a Realtor: know that the agent won’t get paid until they deliver a result, and a lot of that money is spoken for well in advance of the cheque being cashed. Not that one can’t make a very good living as an excellent Realtor, but you certainly earn your pay.

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Calgary Real Estate Board. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.