Calgary Real Estate Blog

Spring is traditionally the time to clean out your house, and for good reason: after a long, cold Calgary winter, you’ve built up a fair amount of clutter from simply being forced indoors for months on end. But what if you were to take some time to organize and clean out your home before the snow flies, making the winter seclusion a little more enjoyable?

Now’s the time to do it, as relatively warm temperatures and (hopefully) dry weather means you can use your lawn as a staging ground. In my experience, the ‘clean sweep’ method is the most effective in getting rid of all that stuff collecting, untouched, in the corners of rooms and basements. Go one room at a time, pulling absolutely everything out and sorting into three piles outside: keep, trash, and sell (or give away). Then, look at your empty room and decide what activities you’d like to see go on there. Write these down, then look at your keep pile and decide what items would be used for those activities; return just the appropriate items to the room. Carry on with the same method throughout the rest of the house, giving due consideration to the purpose of each room. At the end of the process, whatever’s left in the keep pile is stuff you don’t really need or use, so give it away too. At the end of all this admittedly hard work, you’ll have a home made for living, and you’ll be no longer using square footage for which you pay a mortgage to store things you don’t use.

Easier said than done, I know, especially in a big house. The satisfaction when it’s done, though, is unbelievable. Even if it’s just for a couple rooms, consider clean sweeping before the winter and you may just find -30 a little more bearable.

Thinking a move might be the solution?  Contact me today!

If you’ve seen anything in the news about residential real estate lately, it’s probably been doom-and-gloom talk about how sales in January were down nearly 40 percent from January 2014 – you know, the year of record sales when I barely had time to grab a coffee between appointments many days. That kind of talk sells newspapers (at least, as much as newspapers sell these days) and plays nicely into the narrative that Alberta’s on the cusp of an economic apocalypse, but the truth is, the market’s doing just fine, and should continue to do so throughout the year.

We’ll likely continue to see lower year-over-year sales and price increases in residential homes over the next few months, which is to be expected: not only is the lower oil price slowing our economy, but Calgary went from a red hot sellers’ market early last year to a more balanced and sustainable one in the latter half. That balance – having the right number of properties for sale in relation to the number looking to buy – is ideal, and healthy. Without needing to rush buying decisions, but still having plenty of selection from which to choose, Realtors like myself can better help home buyers find homes that meet their needs and satisfy their wants. (For more on buyers’ vs sellers’ markets, and some consideration on when is the right time to sell your home, visit here.)

Despite the actual number of sales going down in January, there was both an increase in the number of properties listed and a healthy 7.7 percent increase in the year-over-year benchmark selling price. Nothing to worry about on that front.

Could the market slow down significantly? Sure, it’s possible, especially with the talk of major cuts across the board in the next provincial budget. People who were on the fence about selling and are now afraid prices are going to crater will go ahead and list their homes to beat the rush, while others may decide to downsize as their personal financial situation changes. And without a doubt, this year’s market won’t be nearly as hot as 2014’s. Still, as you’re reading or watching news stories about the dire future of Calgary real estate, take a moment to remember the solid fundamentals on which our housing market is based; there’s no bubble to be found here, which means there may be a slowdown, but there won’t be a crash.

Questions about the right time to buy and sell in our current economy? Contact me!

Also: the Calgary Home + Garden Show is quickly approaching, and organizers have sent out a Valentine’s Day promotion. To buy tickets for the event (taking place February 26-March 1 at the BMO Centre) and save $5 in the process, click here and use the promo code LOVE. Offer is valid until February 18.

Here we are starting off a new year and, as is often the case in Alberta where unpredictable resource revenues can drive the economy like a 14 year-old with his learner’s permit, markets and fortunes are highly unpredictable. Unpredictability can lead to fear, and fear can lead to bad choices.

So, I encourage you, as much as is possible, to take a breath and not get too wrapped up in the apocalyptic talk of bargain basement oil prices and an exodus of producers from our province.

Yes, the global oil market is somewhat flooded right now, and that’s not good in the immediate term for companies operating in this province, especially smaller operations with thin margins and little cushion. Businesses will inevitably pull out or cut back, and that means lost jobs, and that’s always tragic.

However, some economists are looking at the worldwide picture and Alberta’s history, and are taking an optimistic view. Three were asked by Maclean’s magazine to give an outlook on 2015 all suggested oil prices would be back up to the $75-$80 per barrel range by year’s end.

This isn’t a blog about oil, though; it’s about real estate. Calgary’s market no doubt had the best year in the country, and while things are inevitably going to slow down a bit, there’s nothing to suggest we won’t lead the pack again in 2015. From April 2013 to April 2014, nearly 40,000 people moved to our fair city, and they gotta live somewhere. Our red hot economy might experience a bit of a cool down, but I expect Calgary will continue to offer bountiful employment in a variety of industries, keeping the real estate market healthy. Interest rates aren’t expected to spike any time soon, and inventories should remain stable; you’re probably not going to see your property value go up 15 percent next year, but it will probably go up at least a bit.

My dad and I can count 2014 as a banner year for us, as we were steadily busy throughout, with periods of extreme activity keeping things interesting. A heartfelt thank you to all of my clients, both buyers and sellers, along with my trusted vendors, and of course my family who put up with an unpredictable schedule and obnoxious hours. I truly love what I do, but it wouldn’t be possible without the support of these people.

All the best to you and your family in 2015 – it’s going to be an exciting ride!

Looking for a dedicated Realtor? Contact us!

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.

As our market continues to favour sellers, there are more and more homes being sold for higher than asking, in remarkably short periods of time. In February, one out of every five properties sold in Calgary went for above list price, and buyers in March have been even more aggressive; I set up five showings for a condo last week on its first day on the market, and it sold within 24 hours.

This is the reality right now: supply is low, and demand is high, especially in attractive locations. But there are real downsides associated with getting caught up in a bidding war, of which I strongly caution you to be aware.

It’s easy to fall in love with a home when you tour it for the first time: if the seller’s done a good job presenting his property in its best possible light, it can look absolutely flawless. Stepping away for a couple of days, looking at other homes, then coming back to that first property can be a real eye opener, as the inevitable compromises and areas for improvement become more apparent. Unfortunately, when the market is as heated as it is right now, you simply don’t have the luxury of time to consider other options, since your offer will probably come in at the same time as several others. If you like a place, you’ll need to move fast, but be sure to keep your head on straight.

In the midst of a bidding war, logic can quickly go out the window, replaced by a desire to ‘win’ at all costs. That’s called game theory in economics; another name for it is the “winner’s curse.” Buying more home than you can afford, or removing important conditions like a home inspection, are actions that might secure your new property but be highly regrettable later. Even when time is a factor, it’s important to think hard before you act.

Your Realtor has his finger on the pulse of the market, and knows what sellers are expecting right now; he can help steer you to success without compromising your family’s financial well being. Listen to this expert, and heed his advice – make sure when a seller accepts your offer, it’s a reason for celebration and not a Pyrrhic victory.

It’s a (bidding) war zone out there right now. There are nearly twenty percent fewer homes on the market than there were a year ago, yet sales are up just over three percent; well-priced, attractively located homes are being snatched up as quickly as hours after hitting MLS, according to the Herald. While this doesn’t mean people should be overpricing their homes, it does mean that sales for above-asking price are possible for savvy sellers.

Before you list, make sure you discuss with your Realtor (hey, I’m available!) which features of your home are the most appealing, and maybe put a little money into enhancing those areas as applicable. Then, when your home hits the market, your Realtor can ensure the right people are coming to take a look.

For buyers, there’s never been a more important time than now to ensure you have all your proverbial ducks in a row before diving into the market. For the love of Pete, get pre-qualified on your mortgage before doing anything else. Discuss with your spouse and any other stakeholders what the absolute must-haves of your next home are, and decide what you might be willing to sacrifice to obtain those features. Research the neighbourhoods at the top of your list to find out what kind of home you can expect to find there in your price range. Then, when the time comes to go shopping, bear in mind that you may need to move quickly to get an offer in before another buyer.

While it’s not a market for the timid, the right Realtor can reassure and guide you throughout the process so that you can find the right home, at the right price, for you and your family without too many sleepless nights.