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.

There are a lot of misconceptions about buying or selling a home today, making it challenging to know exactly how to navigate the current real estate landscape.

Here's a little clarity when it comes to 5 common myths about the 2021 housing market.

With these busted myths in hand, be sure to also work with a trusted real estate advisor so you can decipher local facts from fiction along the way.

One of the hot topics in real estate right now is -- if I sell my home where am I going to go? What if I can’t find a new home? And what happens if I need to sell before I can buy a new home?

Our team has some great tips for helping solve these big dilemmas:
• We can write an offer on a new home contingent upon you selling your home but in this hot market this is our least competitive option.
• Sell your home to the buyers then rent back your home for a couple of months from the new buyers until you find your next home.
• Sell your home with a reverse contingency -- your sale would be contingent upon you finding your next home within a reasonable time period.
• Sell your home then move to a short-term rental like an Airbnb, VRBO, or extended stay hotel until you find your next home.
• Sell your home and move in with family or friends short-term.
• Take out a bridge loan on your current home to have a downpayment for your new home

We want to assure you that you have options and selling for top dollar, with terms that are in your favor, and buying while interest rates are at an all-time low are great ways to take advantage of this amazing real estate market we are currently in.

March 10, 2021 – REBGV Government Relations

The BC government recently introduced Bill 7 - Tenancy Statutes Amendment Act to extend the current residential rent freeze to December 31, 2021, create regulations to prevent renovictions, and improve dispute resolution.  These changes, if passed, will come into effect on July 1, 2021.

Rent freeze

The current rent freeze was initially set to run to July 10, 2021 and the maximum rent increase had previously been set at 1.4 per cent for 2021.

The new rent freeze means all renters who have received a rent increase notice that would have taken effect after March 30, 2020, and before Jan. 1, 2022, can disregard those notices.  Starting in 2022, rent increases will be capped at the rate of inflation.

Renovictions

Landlords will be required to apply to the Residential Tenancy Branch (RTB) before terminating a tenancy agreement if they’re renovating.

Landlords won’t be able to end tenancies for renovations that aren’t substantial or don’t require the rental unit to be vacant.

Dispute Resolution

Proposed changes will improve the residential tenancy dispute resolution process by expanding grounds for the RTB to review arbitrator decisions, including formally reviewing a decision where it’s clear an error has been made. The goal is to divert cases from the judicial review process to the RTB’s internal review process, reducing costs to tenants and landlords, the courts, and government. All of these changes fulfil recommendations of the government’s Rental Housing Task Force. (Opens 72-page pdf)

The industry perspective

David Hutniak, the CEO of LandlordBC, says his members of organization aren’t happy the rent freeze has been extended throughout 2021.  “Many landlords haven’t been able to, and now won’t be able to compensate for inflationary increases to for their businesses for two years. Property taxes are up, insurance costs are up,” Hutniak said, noting landlords and tenants have been helped by the government’s structured rent repayment plan.  As for the renoviction regulations, Hutniak explains that landlords can still make investments. “If the scope of the renovations requires ending tenancies and vacating the building, we can still do this. We just have to go through a RTB arbitrator. Overall, this will increase transparency and end conflict.”

Learn more.

• When you’re thinking about buying a home, there are a few key steps to take before you even start to look at houses.
• From saving for your down payment to getting pre-approved for a mortgage, you’ll want to make sure you keep your financial plan on track from the beginning.
• Reach out to a local real estate professional and a trusted lender today to make sure you have the best possible guidance as you begin your homebuying process.

A strata depreciation report is a thorough written, and sometimes illustrated, physical assessment of the condition of a strata property that identifies current and future issues that need to be addressed with associated cost estimates. According to provincial regulations, a depreciation report must include an inventory and evaluation of a building’s:

* Structure,

* Exterior (such as roofs, roof decks, doors, windows and skylights),

* Systems (such as electrical, heating, plumbing, fire protection and security); and

* Common amenities (such as fitness room, pool, bike lockers etc).

* Collectively, the items listed above are known as "common property" as they are elements that are shared by all owners of individual units within the building.

Why is a Strata Depreciation Report important?

It helps strata corporations plan for the repair, replacement and renewal of common property and assets, especially those that require considerable outlay of money, such as roofs, windows, elevators, roads or utilities.

They are also an important part of a Buyer’s due diligence as they provide insight into future repair and maintenance needs and their associated costs.  It is in your best interest as a Buyer to thoroughly review strata depreciation reports and seek legal or other expert advice before making a buying decision. 

Buyers should also understand that a depreciation report covers common property as part of a strata building and not individual units within that building. As such, be sure to get an independent inspection for the specific unit you are considering purchasing.

What isn’t covered in a Strata Depreciation Report?

Depreciation reports don’t normally cover every item in the common property or routine repairs and maintenance.  Buyers should still do their own due diligence in having the property inspected as well as obtaining other strata documents, including but not limited to bylaws, rules, regulations, meeting minutes, strata plans, summary of insurance coverages etc. To obtain additional information, Realtors will typically request other strata documents in addition to the depreciation report.

Are Strata Depreciation Reports mandatory in BC?

In most cases, yes.

Under B.C.’s Strata Property Act and Regulations, strata corporations must obtain a depreciation report unless the strata consists of fewer than 5 strata lots. The Regulations also require the report to be updated every three years.

Yet - Strata Corporations can opt out …

­­Strata corporations in BC can waive their requirement to obtain a depreciation report, or defer the renewal of one, if 75% of the owners pass an annual vote in favour. Voting to waive a depreciation report can backfire however, with the long-term costs of unanticipated repairs and maintenance needs often far outweighing any short-term savings gained from opting out. In addition, prospective buyers are sometimes reluctant to invest in stratas that don’t have a long-range maintenance plan in place and as important - lenders and insurers may consider stratas without depreciation reports greater risks.

Information above - Courtesy of BCREA

Choosing the right real estate professional to work with is one of the most important decisions you can make in your homebuying or selling process.

The right agent can explain current market conditions and break down exactly what they mean for you.

If you’re considering buying or selling a home this year, make sure to work with someone who has the experience to answer all of your questions about pricing, contracts, negotiations, and more.