Selling your home? Should you price low or high: what’s at risk?

If you’ve determined that now is the right time to sell your home, congratulations!

You are entering into a ‘seller’s market’— this means that there are more buyers in the marketplace than sellers and it’s a great time to sell.  One of the most crucial keys to selling quickly with a maximum return is to establish the RIGHT price. You want to maximize your return but set a price from the start to position your home to sell in a reasonable timeframe and let you get on with your next adventure.

WHAT HAPPENS IF YOU PRICE TOO HIGH?

There are several major risks if you price your home too high.  First, your target buyer may not find your home online or see your property because the price is out of their price range.  In addition, buyers who are shopping in a higher price range will be comparing your home with others and priced too high, you will not compete, actually making the competition look like a better buy.  Homes priced just 10% high reduce the number of buyers by 30%.  The end result is that your home could sit on the market for a longer period of time which means your ownership costs continue and most importantly you can’t “move on.”

HOW CAN WE SELL YOUR HOME AT THE RIGHT PRICE?

Call me! I will do research on what the market conditions are in your neighborhood, taking into consideration your home’s features, age, location, and updates/remodeling you have done.   Then we’ll sit down and talk about your specific goals and needs, then set a price and terms of sale that fit those goals and needs.  We’ll develop a marketing plan specific for your house and price range that targets the right kind of buyers.  During the time you are FOR SALE, I’ll be sure we get input from buyers and their agents to make sure we know how they see our condition and price.  This allows us to make sure we do what we can to make your property more attractive to buyers.  All the while, we will keep aware of things happening in the local market and that might affect how your home sells.

Each home and each client has a unique story.  Whether you’re moving from a condo to a house, moving from acreage to the downtown core, I can work with you in that journey.

Posted on June 26, 2017 at 5:01 pm
Nancy Johns | Category: Selling Your Home | Tagged , , , , , , , , , , , , , , ,

When should you refinance?

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If you have lived in your home for a while and you’re considering completing a refinance, you likely have some questions as to when or if it’s the right time to do so. Refinancing is a big decision, as it requires a lot of details and time, but it can have some great benefits to it once it’s all said and done. When deciding whether or not you want to refinance, one of the key questions is to ask yourself how long you plan on being in the home. If you intend on staying in the home for several years, a refinance could be a great choice, as you’ll likely recoup the closing costs over your time spent there. For those that are looking to move in a couple of years, refinancing might not make as much sense.

Aaron Hicks, Mortgage Consultant at HomeStreet Bank in Vancouver provides some great reasons to take into consideration on when a refinance might make sense for you.

Reason#1: Reduction in interest rate
Refinancing to lower your interest rate and payment is one of the main reasons why people choose to refinance. Hicks says, “There are still many people out there that have a much higher interest rate on their home loan than they should considering the current market. Refinancing could very well favor a lower interest rate or reduced monthly payment that reduces a person’s overall outgoing monthly debt.”

Reason #2: Reduction in loan term
If you want to pay off your loan faster, refinancing to significantly lower your loan term could be a fantastic idea. In most situations for example, if a borrower wants to refinance from a 30-year fixed mortgage to a 15-year fixed, the borrower will save a substantial amount of money in interest every year.

Reason #3: Cashout.
If you have been in your home for a while and it has gained significant equity, many homeowners choose to refinance and take cash out of the equity. Hicks says, “Some people do this to consolidate liabilities, make home improvements, or use the cash to invest in additional real estate. The ultimate goal here is to have the cash you are taking out work toward future financial freedom.”

Reason #4: Change loan programs.
If you have an adjustable rate mortgage (ARM), it can be very helpful to refinance to a fixed rate loan. Hicks shares, “ARMs carry the risk of having their interest rate increase significantly. When this happens, this can cause severe financial burden on a person’s finances.”

There are many reasons to consider a refinance, but each homeowner’s situation is different. What may work for one, may not work for another. Sit down and look closely at your home loan and what is left to be paid back and consider whether a refinance is right for you.

Posted on December 12, 2016 at 10:32 pm
Nancy Johns | Category: Home Buying Tips, Selling Your Home | Tagged , , , , , , , , , , , , , , ,

Benefits of a home inspection


Well, after hours of searching and a lot of different house showings, you’ve finally found the home you want.  With a home sale, there are a lot of different things that need to happen. Paperwork needs to be signed, loans need to be cleared, and a home inspection needs to be done. You might have wondered why you need a home inspection. Even though the house might appear to be perfect, there are often hidden problems that can be diagnosed when a reputable home inspector comes to take a thorough look at the property.

Benefit #1: Peace of mind.
Buying a home is arguably one of the largest and most important purchases that you will ever make in your lifetime. Because of this, you should make sure that there aren’t any hidden issues that could have been spotted with a home inspection.  When it comes to buying a home, you need peace of mind, knowing that you’re getting a fair price for the home. 

Benefit #2: Hidden problems can be discovered.
A home inspection will include a full report of the condition of the home, both interior and exterior, as well as those harder to see areas such as the crawlspace, chimney, or attic. The report is designed to point out any major problems as well as some minor ones that can be fixed with simple improvements. No one likes surprises when it comes to home repairs, so knowing what you are getting into before you move in is important.

Benefit #3: Saves you money in the long run.
If you don’t have a home inspection and you decide to go ahead with the purchase of the home, there may be costly issues that pop up after you move in. This could be avoided by simply having a home inspection done during the purchasing process. It’s very common that the seller will fix issues before the sale goes through. This means the seller is responsible and you’re off the hook for those repairs – that can save you big bucks down the road!

Your home is a big investment and in order to be protected and know the exact condition of the home, a home inspection is a definite must-have.

Posted on September 9, 2014 at 2:45 am
Nancy Johns | Category: Uncategorized | Tagged , , , , , , , , , , , ,