Sunday, January 21, 2007
Marketing Your Home
If you're thinking of selling your home, you need a marketing plan. Just like any other product people buy or sell, a home's value must be communicated to the proper audience to ensure the seller gets the best possible price.Marketing your home means more than putting up a lawn sign and sticking an ad in your local newspaper. You need to have a complete marketing plan that takes into account your home's unique qualities, your objectives and details the specific resources available to you.Your planning should begin as soon as you choose a Realtor, and often even before that. Part of your marketing plan will involve pricing your property, deciding when to list it and what features need to be cleaned or repaired. At this stage it is essential that you are completely honest with your Realtor about the condition of your home, your financial needs and any time constraints.Once you have the basic information established, you need to get to the "guts" of the marketing plan, or determine how best to let people know that your home is for sale and get them excited about it. You need to keep in mind when you are planning that there are two key target audiences: home buyers and other real estate agents. You will need different marketing vehicles and slightly different information to effectively reach each audience.There are a myriad marketing products and activities that can be utilized to help sell your home and your Realtor with the Multiple Listing Service (MLS), newspaper advertising, brochures, open houses, neighbourhood mailings, etc. In addition to the standard tools, Royal LePage Realtors have access to the industry's leading marketing tools and resources, including: -www.royallepage.ca: Your home will be featured on Royal LePage's web site which receives an average of more than 450,000 unique user sessions each month; -Virtual Reality Tours and Slide Shows: Available for many homes on the web site, giving prospective buyers a private tour of your home;-Online Feature Sheets: Providing pictures and greater detail for your home when people want to know a little more than the basics;-Referral Network: Your property's information will be available to nearly 11,000 Royal LePage Realtors coast-to-coast and 700 of the top real estate companies in the world through an exclusive affiliation;-Customized Just Listed Cards: Distributed to potential buyers with details of your home on it.Your Realtor can help you determine which tools will be most beneficial in your particular situation and market. Whatever the plan you decide on, make certain that you are an active part of it. Reviewing the plan's success on a regular basis should be a built-in part of any successful marketing plan. This article just gives a sampling of the many ways there are to market your home, to ensure the best price possible.To get more information on how Royal LePage and I can help you put one together, contact me directly!
Demystifying Mortgages - How Much Can You Borrow?
A home is typically the largest purchase you will make in your lifetime, and for most Canadians this means obtaining a mortgage. The amount of your mortgage will determine the size and location of your new home - not to mention the size of your payments. So how do lending institutions decide how large your mortgage loan can be?Lending institutions (such as banks, credit unions, trust companies and insurance companies) want to be certain that you are capable of repaying the money you borrow. Consequently, the loan application process is thorough. Lenders consider your income, credit history, debt load, employment history and collateral, including the value of the property you wish to buy.Although there is some discretion in determining the exact amount, the size of your loan is generally calculated using set formulas - Gross Debt Service Ratio (GDS) and Total Debt Service Ratio (TDS). GDS is the percentage of your gross monthly income (before taxes) required to cover monthly payments on mortgage principal, mortgage interest, property taxes and sometimes heating (often abbreviated as PITH). Your GDS should not exceed 30% to 32% to be eligible for most mortgages. Because many people also owe money to other lenders (car loan, student loan, credit cards, etc.), TDS offers a more accurate estimate of what you can afford. TDS is the percentage of your gross monthly income required to cover PITH plus any other debts. Your TDS should not exceed 40% of your gross monthly income.There are many other factors that will impact the final mortgage amount. A poor credit history or a spotty employment record, for example, can disqualify you altogether or significantly alter the total. Keep in mind that just because a lender is willing to approve a large mortgage it is no guarantee that you can, in reality, afford the monthly payments.To truly understand how much you can afford you must examine your other monthly expenses - those not accounted for in the lender's calculations (such as entertainment, charities, vacations, etc.). Remember that you will also need a lump sum down payment (at least 25% for conventional mortgages and as little as 5% for high-ratio mortgages) and money to cover closing costs. For more information on mortgages, calculators and online applications, visit http://www.royallepage.ca.
Hiring a Contractor
Whether building a new home or renovating an old one, choose your contractor carefully. Start by writing your project down, including a floor-plan sketch. Ask friends, family and neighbours about good and bad contractors. Select several contractors and arrange to meet with them. During the meeting, ask each of them:- How long have they been in business- What experience have they with projects such as yours- Their registration numbers for trade associations, the Better Business Bureau, Workers' Compensation and private liability insuranceReputable contractors will gladly answer these questions. Avoid those who balk.Have the contractor supply at least three references. Ask these former clients about their experiences and, if possible, visit their projects for a first-hand look. Ask your local Better Business Bureau if there have been complaints and how the contractor handled them.A major project may require professionally drawn plans. Instead of hiring an expensive architect, pay one prospective contractor to draw them. Then you'll own the plans outright and can show them to other bidders. Welcome suggestions. An experienced contractor may have good ideas you never thought of.Each estimate should state prices for labour, materials (including brand and model names where applicable), and all other expenses. It should also describe the warranty. Don't necessarily choose the lowest bid. Ensure that yours includes:- The contractor's name, address and telephone number, along with registration numbers of the firm's operating licence, memberships in trade associations or the Better Business Bureau and Workers' Compensation. Also include details of private liability insurance coverage. You could be held liable if insurance doesn't cover an injured worker. If subcontractors are involved, the contract should list similar information for them.- A detailed listing of the work to be done and all products to be used. The contract could specify either a set price, to which the contractor is committed regardless of unforeseen complications, or a cost price, which allows the contractor to charge extra for such problems.- An hourly rate for labour. This is most important in a cost-price contract, but is also necessary in a set-price contract, in case you decide to change the plan after work has begun.- A schedule for payments. Pay only a nominal deposit before work has begun. Then, arrange for payments as work progresses. Avoid scheduling payments for predetermined calendar dates. Instead, pay as each stage is completed.Never sign a partial or blank contract. Any later changes should be added in writing and signed by both parties. During the project, deal directly with the contractor rather than the tradespeople. Handle problems as they arise and be reasonable. Be considerate of the contractor's needs, such as parking space for work vehicles.
Hot, Not Bothered: Inexpensive Home Heating Tips
The dramatically rising cost of home heating is a bothersome concern for most Canadians. Heating your home efficiently this winter will be the key to keeping your energy costs under control. Here are some quick, easy and, most importantly, inexpensive ways to maximize warmth and minimize impact to your pocketbook:· Adjust Your Personal Thermostat: Wear a sweater and dress warmly around the house. When you're stationary, watching television or reading, you're most susceptible to a chill, so toss a throw around you. Since hot air rises, resist the icy influence of cooler floors with thick socks or slippers.· Adjust Your Home Thermostat: It goes without saying that the less energy you use, the lower your heating bills will be. Set your thermostat at 21ºC when you're home awake, 18ºC when you're sleeping and 15ºC when you're out of the house. Purchase a programmable thermostat to reduce you heating bill by as much as 20 per cent.· Let the Sun Shine In: While up to 25 per cent of your home's heat is lost through its windows, they are also a source of solar warmth. During daylight hours, keep your drapes open and let the sun help heat your home. Insulate your windows with plastic film to reduce heat loss by 50 per cent. Insulating curtains are expensive, but pay for themselves within 7 years.· Seal the Leaks: Caulk, seal and weather strip around windows and doorframes, baseboards, ducting and electrical outlets to save up to 20 per cent on your heating bill. Remember to close your fireplace flue when you're not enjoying a fire. Install a door sweep to resist against under-the-door drafts. Turn off the heat supply and close the door to unused rooms, such as a guest bedroom. Close interior doors leading to hallways or stairways to keep the heat where it's needed most.
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