While we expect the Bank of Canada to maintain their commitment and do not expect any rate changes by the end of 2021, some lenders have recently increased their long-term rates.  And so, serious buyers are more motivated than ever to find a home before the end of the year.

But the sense of urgency they feel is complicated by the lack of homes for sale in today’s market. According to the latest statistics from the Real Estate Board of Greater Vancouver: From one year ago, the inventory of active homes has decreased by 47%.

What Does This Mean for Sellers Today?

With buyers eager to purchase but so few homes available, sellers who list their houses this fall & winter have a tremendous advantage – also known as leverage – when negotiating with buyers. That’s because, in today’s market, buyers want three things:

• To be the winning bid on their dream home.
• To buy before rates rise
• To buy before prices go even higher.

Your Leverage Can Help You Negotiate Your Best Terms

These three buyer needs give homeowners a leg up when selling their house. You might already realize this leverage enables you to sell at a good price, but it also means you can negotiate the best terms to suit your needs.

And since buyer demand is still high, there’s a good chance you’ll get offers from multiple buyers who are willing to compete for your house. When you do, look closely at the terms of each offer to find out which one has the best perks for you.

If you have questions about what’s best for your situation, your trusted real estate advisor can help. They have the expertise and are skilled negotiators in all stages of the sales process.

Bottom Line: 

Today’s buyers are motivated to purchase a home this year, and that’s great news if you’re thinking of selling. Connect with your real estate professional today to discuss how much leverage you have as a seller in today’s market.

Does Your House Have What Buyers Want?

The rise in remote work is changing what many Canadians want in their homes. Many companies are choosing to delay reopening or go remote full-time, and today’s buyers are looking for homes with more space to support their work needs.

As a seller, if you no longer need the extra room you have in your home, rest assured there are buyers who do.

Remote Work Is Here To Stay

Remote work remains a reality for many of us.  A recent article from CBC reveals what Canada’s business leaders think about heading back to the office:

https://www.cbc.ca/news/business/back-to-the-office-video-1.6122783

And it’s not just companies that are choosing to remain remote for the time being – workers are seeking more flexibility. According to research from PricewaterhouseCoopers, nearly one-fifth of employees want to be fully remote in the future. The study also finds that many people are leaving jobs to seek out remote work opportunities:

“Among employees looking for new jobs, almost one in ten say it’s because they moved away from the office while working remotely and don’t want to go back on-site.”

More Remote Work Means a Greater Need for Home Offices

That’s leading today’s buyers to prioritize finding homes with more space so they can comfortably work from home. The 2021 Home Design Trends Survey from the American Institute of Architects finds that 69% of surveyed individuals still want at least one office at home. However, it also shows that more people are looking for multiple spaces in their home for remote work and virtual meetings.

What Does This Mean for You?

If your house has extra space that you no longer need, buyers are interested, and now may be the perfect time to sell.

Your trusted real estate advisor can help you highlight many of the most sought-after features in your listing, including home offices. On the other hand, if you have extra room without a purpose, consider staging it as an area where remote work can happen. Your agent can help you with this as well by evaluating and preparing your space for potential buyers. They’ll make recommendations for how to stage the room, where to draw the eye, and what other sellers are doing to make their houses stand out.

Bottom Line

With the continued rise in remote work, more buyers are looking for homes that can support multiple home offices. If you have extra room you’re no longer using, consider selling. Connect with a trusted real estate advisor to discuss the unique features in your house and how you can capitalize on any extra space to appeal to today’s buyers.

For generations, Canadians have been asking themselves this important question: ‘Is it better to buy a home or rent?’ On the one hand, owning comes with more responsibility and higher monthly expenses, but offers more stability and a long-term investment. On the other hand, the money spent on renting will never be recuperated, however, it can offer some flexibility if you’re not sure how long you will live in one place.

According to a recent Royal LePage-sponsored study by economist Will Dunning, it is more financially beneficial to purchase a home than to rent in Canada, more than nine times out of ten. The study uses price data for 278 scenarios (broken out by city and housing type) across the country and assumes the owner is able to provide a 20% down payment. In 91% of scenarios, the monthly cost of owning a home is less than renting an equivalent dwelling, when considering the net ownership costs (total cost of ownership minus the portion of mortgage payment that goes toward principal). This is called the ‘ownership advantage’. 

To read more click here

A lot has changed over the past year. For many people, the rise in remote work influenced what they’re looking for in a home and created a greater appetite for a dedicated home office. Some professionals took advantage of the situation and purchased a bigger home. Other people thought working from home would be temporary, so they chose to get creative and make the space they already had work for them. But recent headlines indicate working from home isn’t a passing fad.

If you’re still longing for a dedicated home office, now may be the time to find the home that addresses your evolving needs. More and more companies are delaying their plans to return to the office – others are deciding to remain fully remote permanently. According to economists from Goldman Sachs in a recent article from CNN:

“Job ads increasingly offer remote work and surveys indicate that both workers and employers expect work from home to remain much more common than before the pandemic.”

Other experts agree. A survey conducted by Upwork of 1,000 hiring managers found that due to the pandemic, companies were planning more remote work now and in the years to come. Upwork elaborates (numbers from the USA):

“The number of remote workers in the next five years is expected to be nearly double what it was before COVID-19: By 2025, 36.2 million Americans will be remote, an increase of 16.8 million people from pre-pandemic rates.”

How Does This Impact Homeowners?

If you own your home, it’s important to realize that continued remote work may give you opportunities you didn’t realize you had. Since you don’t need to be tied to a specific area for your job, you have more flexibility when it comes to where you can live.

If you’re one of the nearly 23% of workers who will remain 100% remote:
You have the option to move to a lower cost-of-living area or to the location of your dreams. If you search for a home in a more affordable area, you’ll be able to get more home for your money, freeing up more options for your dedicated office space and additional breathing room.

You could also move to a location where you’ve always wanted to live – somewhere near the beach, the mountains, or simply a market that features the kind of weather and community amenities you’re looking for. Without your job tying you to a specific location, you’re bound to find your ideal spot.

If you’re one of the almost 15% of individuals who will have a partially remote or hybrid schedule:
Relocating within your local area to a home that’s further away from your office could be a great choice. Since you won’t be going in to work every day, a slightly longer commute from a more suburban or rural neighborhood may be a worthy trade-off for a home with more features, space, or comforts.

Bottom Line
If ongoing remote work is changing what you need in a home, work with a local real estate professional to find one that delivers on your new wish list.

Has summer clutter taken control of your home? Fall gives everyone the perfect reason to declutter from summer and prep for the rest of the year. If you have a cluttered home, here are a few tips to help you begin your fall cleaning.

Start with the Closets
Closets are the easiest place to begin. You and your kids should try on every piece of clothing. Get rid of anything too small or out of style. Next, move the summer clothes to the back and your fall and winter clothes to the front. Make sure those clothes still fit; if not, they must go!

Lose The Summer Garage Chaos
Do you have bikes, gardening supplies, summer sports equipment taking over your garage? Take a weekend and give your garage a fall makeover. Donate or sell old toys, bikes, and tools. Map out a storage plan to fit your summer stuff and make your winter tools accessible.

Freshen up The Kitchen
Whether it's for the big game or the upcoming holiday season, fall is the start of hosting season. Take time to declutter, organize and scrub your kitchen. Get rid of the extra little things you don't use. You might be surprised at the duplicate items you find. Trash, donate, or sell the items to make a little extra cash.

Get Rid of Old Toys
If you have kids, you most likely have old toys shoved into a closet, drawer, or corner. If they haven't seen the light of day in a while, it's time to pass them on.

If you're looking for a new home with more space, fall is a great time to buy and sell.  Call us for a 10-minute consultation.  604-984-7253.

Pricing your house right takes market experience and expertise.

To find the best list price, your agent balances current market demand, values of homes in your neighborhood, where prices are headed, and your home’s condition.

If you’re ready to sell, don’t guess on the price. Reach out to your local real estate advisor today to price your house to attract multiple offers and maximize your return on investment.

What Does Being in a Sellers’ Market Mean?

Even if you haven’t been following the real estate industry lately, there’s a good chance you’ve heard we’re in a serious sellers’ market. But what does that really mean? And why are conditions today so good for people who want to list their house?

It starts with the number of houses available for sale.

The latest REBGV Home Sales Report for July 2021 shows the Sales-to-Active listing ratio is still astonishingly high. Today, we have a 2-month supply of homes at the current sales pace. Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers.

When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. That creates increased competition among purchasers which leads to more bidding wars. And if buyers know they may be entering a bidding war, they’re going to do their best to submit a very attractive offer. As this happens, home prices rise, and sellers are in the best position to negotiate deals that meet their ideal terms.

Right now, there are many buyers who are ready, willing, and able to purchase a home. Low mortgage rates and the ongoing rise in remote work have prompted buyers to think differently about where they live – and they’re taking action. If you put your house on the market while supply is still low, it will likely get a lot of attention from competitive buyers.

Bottom Line

Today’s ultimate sellers’ market holds great opportunities for homeowners ready to make a move. Listing your house now will maximize your exposure to serious buyers who will actively compete against each other to purchase it. Connect with a local real estate professional to jumpstart the selling process.

The Best Use of Time (and Money) When It Comes to Renovations

In the current sellers’ market, many homeowners wonder what, if anything, needs to be remodeled before they list their house. That’s where a trusted real estate professional comes in. They can help you think through today’s market conditions and how they impact what you should – and shouldn’t – renovate before selling.

Here are some considerations a professional will guide you through:

1. With current supply challenges, buyers may be willing to take on projects of their own.

A more balanced market typically sees a 6-month supply of homes for sale. Above that, and we’re in a buyers’ market. Below that, and we’re in a sellers’ market. According to a recent report by the Real Estate Board of Greater Vancouver, our current supply of homes for sale still remains solidly in sellers’ market territory:

“Low housing supply remains a fundamental factor in Metro Vancouver’s housing market,” Stewart said. "Home sales remain above average and we’re starting to see price increases relent as well. Going forward, the supply of homes for sale will be among the most critical factors to watch. This will determine the next direction for house price trends."

So, what does that mean for you? If you’re a seller trying to decide whether or not to renovate, this is especially important because it’s indicative of buyer behavior. When there aren’t enough homes for sale, buyers may be more willing to purchase a home that doesn’t meet all their needs and renovate it themselves later.

2. Not all renovation projects are equal.

You don’t want to spend time and money on a project that isn’t worth the cost or is too niche design-wise for some homebuyers. According to an article by Renofi.com, basing home updates on what’s trendy right now can be a costly mistake:

“The last thing you as a homeowner want to do is center your home design around a passing fad – even worse, one that’s design quality won’t last a good while.”

Before making any decisions, talk to your real estate advisor. They have insight into what other sellers are doing before listing their homes and how buyers are reacting to those upgrades. Don’t spend the time and money to be trendy – if your buyer wants to upgrade to the newest fad later, they can.

3. If you’ve already made upgrades this past year, your agent can help spotlight them.

If you have already completed some renovations on your house, you’re not alone. The pandemic kept people at home last year, and during that time, many homeowners completed some home improvement projects.  A recent Scotiabank Report found:

“After a year of the pandemic, Canadian homeowners are more likely to plan renovations than buy and sell their current property or purchase an investment home, despite an active housing market, a Scotiabank poll revealed. Six in ten Canadian homeowners are planning to renovate in the next 2 years, with backyards, kitchens and bathrooms topping the list.”

Let your real estate professional know if you fall in this category. They can highlight any recent upgrades you’ve made in your house’s listing.

Bottom Line

When it comes to renovations, your return-on-investment should be top of mind. Talk with your local real estate professional to find out what projects you should prioritize before you sell and how to highlight your upgrades to maximize your house’s potential.

Action Plan for an Easy Move

The key to an easy move is careful planning. There are many action items that need to be taken prior to the move all the way up to the actual day the first box is loaded on the moving truck. Take time to write down and organize the decisions and activities that will need to be accomplished prior to the move such as securing a mover and changing your address. Ideally, you should try to break up the tasks over a two-month period. By doing so, you won’t overload your schedule, plus it can save you time and money. To get you started, consider using the checklist below as a guide.

Eight Weeks Prior:

Get estimates from at least 3 professional movers. If you are going to do it yourself, get estimates on rental trucks.

Decide which furniture and household goods you’ll be taking, which need to be disposed of and which need to be replaced.

If you will be moving to a new city, contact the Chamber of Commerce of that town for a new residence packet. Your sales professional may also have information.

 Six Weeks Prior:

Inventory your possessions besides furniture – Kitchenware, decorative items, electronics, apparel and so on.

Complete a change of address form with the post office. This can be easily done at www.canadapost.ca  Make sure you notify organizations, credit card companies, and publications to which you subscribe of your new address, too.

If children are changing schools, arrange for a transfer of educational records.

Itemize moving-related costs with the mover including, packing, loading, special charges and insurance.

Four Weeks Prior:

Make arrangements for packing your belongings. If you will be using professionals, schedule with the company for packing to take place a day or two before the move. If you will handle the packing on your own, purchase adequate boxes, packing materials and tape.  Arrange for short-term or long-term storage if needed.

Three Weeks Prior:

Begin packing items you won’t need immediately or that will go into storage.

Contact utilities on both ends of the move to order terminations or turn-on for occupancy date.   Confirm travel arrangements for family and pets.

Two Weeks Prior:

Terminate newspaper and other delivery services.   If necessary, arrange and confirm new bank accounts and local services in you new neighborhood.

One Week Prior:

Gather important papers, records, and valuables for protected shipment to new home or safe deposit box. Obtain any prescription medications needed for the next few weeks.

Day Before or Actual Moving Day:

Defrost refrigerator/freezer and give away all perishable food.

Keep a box marked “Last Box Packed/First Box Unpacked” for tools, flashlights, first aid kit, important documents and so on. On moving day this should be the last box placed on the truck.

Pack items to carry with you such as valuables, financial records, personal papers and so on;  give the movers a telephone number and address to reach you.

To be sure, a detailed action plan can get your move well down the road before you ever depart to your new destination.

5 Things Homebuyers Need to Know When Making an Offer

When it comes to buying a house, you’re looking for the perfect place to call home. The problem is, in today’s market there just aren’t that many homes available to purchase. With inventory hovering near record lows and sky-high buyer demand, a multi-offer scenario is the new normal. Here are five things to keep in mind when you’re ready to make an offer:

1. Know Your Numbers

Having a complete understanding of your budget and how much house you can afford is essential. That’s why you should connect with a lender to get pre-approved for a loan early in the homebuying process. Taking this step shows sellers you’re a serious, qualified buyer and can give you a competitive edge in a bidding war.

2. Brace for a Fast Pace

Today’s market is dynamic and fast-paced. According to the Real Estate Board of Greater Vancouver, the average North Vancouver home is on the market for just 7 days – and in West Vancouver, 9 days. A skilled agent will do everything they can to help you stay on top of every possible opportunity. And, as soon as you find the right home for your needs, that agent will help you draft and submit your best offer as quickly as possible.

3. Lean on a Real Estate Professional

While homebuying may seem like a whirlwind process to you, local real estate agents do this every day, and we know what works. That expertise can be used to give you a significant leg up on your competition. An agent can help you consider what levers you can pull that might be enticing to a seller, like:

Offering flexible rent-back options to give the seller more time to move out.

Your ability to do match their dates or make an offer that’s not contingent on the sale of your current home.

It may seem simple, but catering to what a seller may need can help your offer stand out.

4. Make a Strong, but Fair Offer

Let’s face it – we all love a good deal. In the past, offering at or near the asking price was enough to make your offer appealing to sellers. In today’s market, that’s often not the case.  From Spring 2021 Statistics courtesy of the REBGV, more than 60% of homes on the North Shore sold at or over their asking price.

In such a competitive market, emotions and prices can run high. Use an agent as your trusted advisor to make a strong, but fair offer based on market value, recent sales, and demand.

5. Be a Flexible Negotiator

If you followed tip #3, you drafted the offer with the seller’s needs in mind. That said, the seller may still counter with their own changes. Be prepared to amend your offer to include flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember, there are certain contingencies you don’t want to forego.  For example, resist the temptation to waive the inspection contingency.  Instead, consider doing a pre-offer inspection.  There are various levels of inspection that can be provided in this case.

Bottom Line

When it’s time to make an offer, it’s important to consider not just what you need, but what the seller may need too. Contact a local real estate professional for expert advice on this step in the homebuying process. Relying on an agent’s knowledge and guidance can help you put your best offer on the table.