Red Flags for Buying a House

f every transaction and home was squeaky clean, then we really wouldn’t need lawyers, home inspectors, REALTOR®’s and other professionals to assist and protect us throughout the process. There are hundreds of things that can be problems in a house or with the deal itself. Below are a few red flags that should pique your attention when buying a home..

PLEASE NOTE: These items are only red flags. They are not necessarily problems in their own right, but should trigger a little more research.

• Current Owner Assumed Their Mortgage – Assumable mortgages have been an easy way for unscrupulous people to purchase homes without using a bank.
• Low Down Assumable Offered – The terms of the mortgage may be horrible, or the house may be over priced
• Stained Basement Items – Water stains on any item in the basement should be questioned.
• Newly Finished Basement – This is a common way to hide past problems, especially concerning water penetration.
• Odd Smell – Could be mold, mildew or caused by water issues or a past drug operation.
• Exterior Cracking– Any unsealed opening on the exterior can cause water entry.
• Slope Toward the House – The grade of the yard should move water away and not toward the house.
• Attached Homes Without Condo Fees – If something happens to the roof or another shared item, who is responsible for the cost? Does your neighbor even have the money for half of the expense? Can they paint their half of the home pink?
• Hot Water Tank Damage – Any sign of wear and tear on a hot water tank should be addressed very quickly.
• Dirty Furnace Filter – The furnace is likely working overtime, and what else haven’t they fixed/maintained?
• Cold Spots – This can be poor insulation or improper construction.
• Swellings Around Windows and Wall Seams – Possible water entry.
• Water Staining – Uhhhh…probably water.
• Restrictive Covenants on Title – This could restrict the ways you can use the property, or what you can build in the future.
• No RPR or Survey – This is the only protection you have to ensure that the house is built in the proper location on the lot and that you are getting the amount of useable land you paid for.
• Newly Built Deck or Fence – Is it in a legal location and does it have a permit?
• Soft Shower Walls – Could be rotten (mold issues) from long term water leaks.
• House Feels Small – The square footage listed may not be accurate.
• One Agent Represents Both the Seller and the Buyer – It is impossible for a single agent to get the seller the highest price possible, and the buyer the lowest price possible. This is a conflict of interest. (Transaction Brokerage).

Ask lots of questions and be sure to get accurate information from trusted professionals. Your team of pros is your best protection here.

The Lowdown on Down Payments

Another REALTOR® Says They'll Buy My House. Should I Be Wary?

Wary might not be the best word, but you do need to make sure you understand the details of the offer. This type of offer is a guaranteed sales agreement, and while there is nothing illegal or wrong with a real estate company offering this kind of arrangement, it is rarely the best option for consumers.

In a guaranteed sales agreement, a real estate brokerage agrees to buy a piece of real estate from a seller at a previously agreed upon price, if it hasn’t sold to someone else before a certain date. Only real estate brokerages can offer these agreements, not individual real estate professionals.

What sellers need to keep in mind in these arrangements is that the real estate brokerage wants to minimize its risk.

For example, it’s rare that a guaranteed purchase price will be based on the property’s listing price or the property’s market value. In most cases, the brokerage calculates the guaranteed purchase price using a formula where legal fees, carrying cost, and commission on the resale are subtracted from the purchase price. This minimizes the brokerage’s risk, but it can also greatly reduce how much that seller receives for their home.

Brokerages that offer guaranteed sales programs are required to have policies for those programs. Those policies should include how the brokerage sets the guaranteed sales price and who is in control of the property’s listing price during the listing period; it may not be the seller. It’s not unusual for a guaranteed sales agreement to include a clause that requires a seller to lower their listing price during the term of the listing. Remember, your real estate brokerage wants to minimize its risk. It prefers to sell your property to a buyer rather than to use the guaranteed sales agreement, and lowering the listing price can sometimes help that happen.

Pricing Your Home for Top Dollar

Finding the List Price “Tipping Points”

Setting the right list price for a home is a mystery for many sellers. How do you begin to determine what buyers are likely to pay for your property? After all, no two homes are exactly alike.

Yet, setting the right price is crucial. You need to avoid the two price “tipping points” that, if crossed, can cause you a lot of problems.

The first tipping point is a price that’s low enough for buyers to begin thinking something is wrong. They wonder, “Why is your price so low? What are you not telling us about your property?” But that’s not even the worst problem with this tipping point. If you do get offers at that low price, you’ll have a bigger issue – leaving thousands of dollars on the table.

The other tipping point is setting your price so high it discourages buyers from giving your listing a second look. When your price is that high, you’ll get few enquiries and even fewer people coming to see your property. Of course, you can lower your price later, if necessary. But experience shows that reduced prices make potential buyers skeptical. Most sellers who price high in the hopes of getting a windfall, actually end up selling for much less than they would have had they priced their properties correctly in the first place.

So, what’s the right price to list your property? The answer is somewhere in-between those two tipping points.

Call today for help determining the right price for your property.

~ Anita Lamarche, CIR Realty

403.818.9623

Want top dollar for your home? Start with a deep cleaning and a little staging.

If you want top dollar for your home, you need to make a great first impression on buyers – making your home most appealing, setting a stage of serenity and order and de-personalizing some of your décor. Clean, open and inviting should be the impression you are after – both for viewings as well as your home’s online presence.

Staging is much more than just placement of furnishings and décor to create a nice impression and help the buyer see themselves in your space. A deep clean goes hand-in-hand to ensuring buyers feel comfortable from the moment they enter and get an impression of your pride of ownership.

Entering a home that is dirty, has unpleasant odors and/or is cluttered and disorganized is an almost instant turn-off for most buyers (apart from bargain hunting investors looking for an “ugly duckling” they can buy at a reduced price and improve to flip or resell).

To stage your rooms for appearance and flow, begin by looking at your entrances and each room with “buyers’ eyes” and start by doing the following:

• Remove personal/family photos and art; add pieces that complement your colours or even mirrors to reflect more natural light; look at greenery/plants for accents
• Remove excess furniture and clutter; ensure space feels open; move furniture away from walls; open blinds and window coverings; purge or donate unwanted items
• Replace worn floor mats or take out of hallways/entrances; buy fresh white towels and use white shower curtains (unless you have a glass enclosure) in baths
• Minimize toiletries and clutter in bathrooms; declutter kitchen counters and have a minimum of appliances and miscellaneous cleaning/cooking things
• Declutter closets and pantries; help create a feeling of order and spaciousness by removing excess items from floors and using fabric bins to store loose items and clothing on closet shelves; remove excess/unseasonal clothing, if necessary, to create space
• Consider a pre-listing staging consultation to get specific tips for your home including even essential small repairs, paint colour suggestions and – to make your home more photogenic and most appealing at viewings (I offer this service to my clients as part of my Marketing package covered within my fees)

Now let’s get down to the nitty gritty – or the grit – and focus on what a deep clean should ideally entail to make your home shine in its best light.

How to Clean Your Home – Inside/Out

Let’s Start Outside

Again – look at your home with “buyers’ eyes”. Is your siding or entry dirty? How about the light fixtures, bulbs and entry mats? Chances are your home exterior could use a little love, starting with a good pressure wash. Ensure you use eye protection and concentrate on the entrance and sides of the home too. To remove any dirt on siding, you can start with a hand-pump sprayer containing diluted oxygen bleach. It may be costly but it’s one of the best ways to clean your exterior. Also thoroughly wipe your entry door, ensure all bulbs are working and windows are cleaned too.

A fresh welcome mat and possibly flower planters or a wreath on your door can add warmth and cheer for a great first impression. (And don’t forget to tend to your lawn, flowers and shrubs to create a weed-free, manicured exterior.)

Making the Inside Sparkle

Deep cleaning your house starts at the entrance or foyer. It marks the visitors’ or buyers’ first impression. First, tidy and clean the entrance area, decorating your foyer with welcoming displays – possibly a bench/mirror/pillows and/or greenery. A thorough dusting and washing of floor mats, baseboards and any marks on the walls is a must.

Appliances should also be cleaned outside and inside. People might actually look inside your fridge too to see the condition, space and shelving — appliances are usually included in most home sales, so don’t forget to keep on top of cleaning the inside of your fridge.

Kitchens and bathrooms take a bit of extra care – you may overlook some grease and food splatters around the stove and prep areas. Use a deep cleaning detergent or degreaser on all surfaces and remember to wipe and polish cupboard doors and handles. Don’t neglect areas under the sink – and same with in bathroom cupboards and around/behind toilets. Ensure you leave a sparkling bathroom for your showings – ideally with toilet lids down and unused, new towels put out.

If you have any wall-to-wall carpet, consider a professional cleaning ahead of photos and showings or, if carpets are heavily soiled, consider replacement. Ensure spots on walls are wiped (Magic Erasers work excellent on scuffs); touch up paint if/where needed; dust and wipe baseboards and remember to wipe and sanitize all light switches.

Oftentimes, light fixtures are overlooked. Ensure they are clean and glass shades are free of bugs/dust. All light bulbs ideally should be in the same spectrum (i.e. daylight, warm white or cool white) – and of course, replace any burnt out bulbs. Bathroom fan vents should also be dusted and wiped. Photos/videos and showings usually require all lights turned on so these small efforts will make a big difference!

Clean the Mechanical Room

The mechanical room is not where you spend much time, but your astute buyers will certainly have a look! You might be surprised with the accumulation of dust on floors and surfaces. It may not be possible to do a deep cleaning of the utility room but a thorough sweeping of the floor and wiping of the water tank, furnace and surfaces will make it appear more presentable and give an impression of a well-maintained home. And while you’re at it, change the furnace filter (they should be changed with each season – some buyers may check and a home inspector will most certainly look!)

Other considerations: Pets and Odors

Many homeowners have cherished pets – you might be one of them. However, not all buyers are pet lovers and some buyers have pet allergies. With this in mind, do your best to reduce or eliminate pet odors and reduce pet dander.

There are many ways to remove pet odors. You can use baking soda and sprinkle it on your furniture or carpets. Let it stay overnight. This is a natural odor eliminator and neutralizer of pet odors. You can also use an odor-removing spray or air purifier to remove the smell. Other more costly options such as Ozonation can also be very effective for eliminating tougher odors including pet, smoke and aromatic foods/spices.

Feel Overwhelmed? We can help.

Time constraints and energy may prevent you from being able to do everything yourself. First off, I can help with a Free Home Evaluation, tips to stage your home, including offering a professional Staging Consultation as part of my marketing package when listing your home. I can also recommend professionals who can help organize and declutter.

If you need extra help and elbow grease with cleaning, the team at Homespritz is ready to serve. Homespritz offers intensive cleaning from exterior to the interior of your home. They’ll pressure wash away any unsightly dirt or cobwebs on your siding and entrances and make your doors and windows shine.

Their professional staff will take care to make your whole home sparkle – from your baseboards to your windows, lights, blinds, carpets and more! They are a bonded, reliable cleaning company utilizing environment-friendly products instead of harsh chemicals. You can even request specific cleaning products be used and they will accommodate.

Homespritz will ensure your freshly cleaned home will be camera-ready and impressive for your first showings, plus it will be disinfected and Covid-free. Your clean home will be perceived as a well - maintained home – helping to hold the interest of buyers and usually capturing a higher selling price. A bit of time and money upfront should pay off handsomely. Godliness” is true now more than ever.

Anita Lamarche

REALTOR®, CIR Realty

403.818.9623