Paying to Buy a House - What is your best offer?

Ottawa is experiencing a real estate sales rush.  Many houses are on the market for as little as a few hours to a few days.  Many are set up for bidding wars.  Buyers, afraid to never find a house, are entering into this market with some anxiety.  In a bidding war there are a few ways in increase your chances of getting the house:

Finally, decide on what you want to offer for the house.  Ask your agent for information on comparable sales.  Think that you may have to pay above the most recent sales in the area.  Ask yourself the key question - “What is my highest and best offer.  If I have to go $100 above that price I will not want to pay that price to own the house.”  If you love the house, your best offer will be higher than if you like the house and it “will do”.  The right price is what an informed Buyer is willing to pay.  If you are willing to pay above recent sales and you have comparison shopped, then you are setting the new market price.

 

Sometimes it is necessary to hold your breathe and dive in to a bidding war.

Photo credit:  Dive @ http://www.flickr.com/photos/joeshlabotnik/516341295/

It is Impossible to Erase all Trace of Visitors When Your House is For Sale

No matter how hard they try not to disrupt a house, people coming into your home, to view it or inspect it for purchase, will leave some evidence that they have been there. 

I recently accompanied a Buyer on his home inspection.  The inspection went very well.  This was his first home and he brought 4 other people to walk through the inspection with him.  Imagine - an inspector, the Buyer, 4 friends/relatives and the real estate agent!!!  Too many.  Everyone was careful to remove their shoes.  I watched to ensure that the Sellers’ things were respected.  The inspector put everything back where it belonged (such as the cover on the electrical box) and tried to put ornaments back in their right location when he had to move the to get access at doors, cranks, tapes, pipes, etc. 

Before leaving the house, I did one final tour to ensure that all doors were closed and locked and that all lights were turned off.  I left and was not more that 15 minutes away when I realized that I had forgotten my binder.  I returned within the 1/2 hour to get my binder. 

Imagine my surprise to find a very distressed homeowner, vacuum in hand and tension emanating from every pore.  I assumed that she was worried about the results of the inspection so I mentioned that it had gone very well and that the she would soon be hearing from her real estate agent about the inspection and any other conditions.  Her distress, and it was significant, was related to the table in the kitchen being moved (the inspector had opened the windows to ensure that the cranks were functioning) and that three dining room chairs and her plant had been moved in the dining room - where the inspector, Buyer and I had sat discussing the inspection and getting the final written report. 

I felt badly for her.  It was obvious that any unknown visitors were an intrusion and that the selling process had been very difficult.  Although her house was only 5 days on the market, every day must have been torture.  I apologized for moving the furniture and left. 

If you are selling, remember that It is impossible for people to spend 3 hours on an inspection in your house and not leave some trace of being there.  If you are a Buyer, keep in mind, the motto - “Touch with your eyes.” unless you are with a home inspector. 

Photo credit:  footprint.JPG@ http://www.flickr.com/photos/greencolander/1413601855/

Home Buying in Ottawa - Buyers Use Their Senses

Most Buyers start out thinking that they are going to “see” several homes before making a purchasing decision.  In fact, we all use our 5 senses.  As Buyers walk through a home the senses are alert and, over time, trained to notice things.

Sight - It seems to be all about the way a house looks, colours, furniture placement, order of the rooms, size of the rooms, etc.  While primary, the other senses should be kicking into alert.

Hearing- Can the Buyer hear the furnace clunks every time it kicks in or that the pipes rattle when the taps are turned?  Is the house on a flight path or near a transit way?  Noise can be all around the house.

Taste - While a seemingly unimportant sense when buying a house, if this is a rural or cottage property, the taste of the water is important.  

Touch - Every Buyer touches things in the house.  Is the counter smooth?  What does the floor feel like?  Is there a slope? Is the hot water tank too hot?  What fabric has been used in the window treatments?  Buyers cannot keep their hands (and feet) to themselves.   

Finally, Smell - Fridges will be opened, garbage cans may be full and food may be cooking in the oven.  Sometimes cats and other pets leave a very strong smell that the Seller no longer notices but that will put off a Buyer. 

Often Buyers will describe a house they have seen be the smell or sound and not by other features.  Be aware of everything that can assault the senses - good and bad.

Photo credit:  A glass of water @ http://www.flickr.com/photos/gromgull/4258976764/

Things Ottawa Buyers May Notice #32 - A Crawl Space in Need of Insulation

 While not the most common foundation type in Ottawa, there are homes with crawl spaces in lieu of full basements.  At a recent showing, the Buyer and I noticed that the living room and kitchen floors were really cold, even though the heat was on in the house.  This was an indication to take a good look in the basement.  After opening the trap door and crawling in, it was apparent that

  1. the crawl space had a dirt floor,
  2. the walls were not insulated and that,
  3. while there was some attempt several years earlier to put a little pink insulation between the joists, it was inadequate. 

All of this contributed to the cold in the house.  In addition, the heating ducts were not fully wrapped in insulation and they crossed the area.  When it is below zero outside, it is very cold in this type of uninsulated basement.  On the positive side, there was only a little indication of damp (some efflorescence) and the dirt was dry. The picture in this blog is not the exact basement but very close to what we saw. 

Structurally the house seemed solid.  For the comfort of the new owner and to reduce energy consumption (to heat the very cold rooms), I advise that additional insulation be added plus vapour barriers where possible.  At a minimum, the duct work needed to be protected from the cold. 

Photo credit:  Darwin repeater work 8-30-2008 @ http://www.flickr.com/photos/davef3138/2811740417/

Don’t be cheap - Making Offers on a House

Who does not want a bargain?  Also, who wants people to think that you paid too much for anything, including your house?  There is going to be a fine balance between paying the “right” amount for a house and paying too much.  Where is that point?

Ask your real estate agent for comparable information in the market area.  Ask for information on similar style houses and those that have just recently sold.  Take note of houses that were or are on the market for long periods of time.  Think that one of the issues for these houses is the price. 

If you develop a long list of things that you would change in the house (kitchen counters, bathrooms, flooring), do not expect the seller to agree with you that these are needed or that they influence the negotiations.  Rather, if there are issues that the house inspector found that will cause major expense, you may want to either walk from the deal or re-negotiate on the basis of these issues - roof repairs that were not visible from the street, foundation issues, etc.  If the problem was readily apparent to you when you first saw the house, such as a falling apart garage and fence, the Seller will expect that you to have already taken these into account with your initial offer. 

When putting in your offer, don’t be so cautious with your price that the Seller will be insulted and reject the offer.  Try to find a balance between what you would like to pay and what the Seller would like to get.  Art and Science.

Both under and over paying may leave “egg on your face”.

 Photo credit:  Eggs in perspective @ http://www.flickr.com/photos/alancleaver/3319673607/in/set-72157606825074174/

Housewarming Gifts - For the new Ottawa Gardener

Young people moving from condos and apartments to a house with a yard are often at a loss about what do with their newly acquired yard space.  If they have lived in a condo, they may have gardening gloves and a pair of scissors but not much else.  You may want to help start the tool collection with some of the following ideas for housewarming gifts:

 

Wow your Buyer friend with a copy of the Lee Valley catalogue .

For the environmentalist think “Reduce, Reuse, Recycle” with a compost container and a list of upcoming Garage Sales where most of the equipment can be purchased in gently used condition.

 Photo credit:  Lawn Mower @ http://www.flickr.com/photos/halley/14825333/

Ottawa Homeowners Basic Tool Box - The 14 Basics

 

Sometimes having a list is easier to use than a long descriptive paragraph.  Here is a list of the things that could be in the new homeowner’s basic tool box:

 

 

Most of this list is from the TV Show Downright Domestic .

Photo credit:  Measuring Tape @ http://www.flickr.com/photos/23389883@N04/3878457176/

Housewarming Gift - 3 Ideas for Seniors

I am working with a client who is at the point of leaving her home in the suburbs and moving to a seniors’ residence.  She is going to have her own apartment with a tiny kitchenette, living area and bedroom.  There will be space but not what she now has in her three bedroom house. Instead of buying a lot of new things to fill her new home, we will have to find ways to sell or give her stuff away.  What could she possibly want as a housewarming gift?

1.  Check with the social convener at the residence and see if it is possible to host a coffee party in the afternoon on behalf of the client/family member.  If so, bring in a couple of cakes, some cookies and pay to have the residence provide the coffee, tea, cutlery, plates, etc.  Make sure that you make a little sign saying the person’s/ host’s name and the room number. 

2.  Have a bouquet of flowers delivered (first ensure that there is some space in the apartment ).  It is so difficult to move somewhere new.  Flowers should bring cheer.

3.  Find out what magazines he/she likes and then get a subscription.  Okay, the magazines may be available in the reading room/lobby but it is nice to get mail and nice to be the first person to open a new magazine.

 Photo credit:  German chocolate cake @ http://www.flickr.com/photos/stuart_spivack/2712235459/

Housewarming Gifts - 3 Ideas For the Newly Divorced Person

For the person setting up their new home after divorce, the choices are endless.  In most cases, the person only has a half a household so there will be a need for so much. 

1.  What person, having gone through divorce, is financially better off after the process. I suggest a pIggy bank and start the recipient off with enough money for a pizza and a pizza coupon.

2. For those hours that will now be available for the gym give a Nano ipod loaded with from a great list of music for divorces: 

3.  For those evenings when it would be nice to have a laugh or a tea give two or three romantic comedies (full of hope, I hope) When Harry Met Sally,Four Weddings and a Funeral, There’s Something About Mary, As Good As it Gets, A Fish Called Wanda , Moonstruck and Bridget Jones’s Diary .  If sad or sombre is better then give some divorce movies and a box of microwave popcorn.  Give The First Wives Club, Waiting to Exhale, Mrs. Doubtfire, Jerry Maquire and War of the Roses.  

Photo credit:  Piggy savings bank @ http://www.flickr.com/photos/alancleaver/2638883650/

Housewarming Gifts - 3 Ideas for Ottawa Friends with a New Baby

First - what is a baby if not new?  In any case, this is a common expression so…..

You may have friends moving because the baby needs to have a room and some toy space.  Have you ever seen how many things parents receive as gifts for their child?  How about their own personal temptation to buy out the toy department?  Giving them a gift is going to be a bit more of a challenge.

1.  A babysitting and restaurant gift certificate for an evening out without the baby.  You can swoop in, take care of the baby for 2 hours (hopefully between feedings and diaper changes) and give the stressed parents a120 minutes of relief.

2.  Assuming that this is a bigger house, with more electrical outlets and cupboard doors, then go to the safety gadgets section for door barriers, plastic plug protectors and door hinges that open only by adults.  I have also seen the doorknob covers that require pressure before a door can be opened.  (Hint:  When you are selling your house make sure that the real estate agents will be able to open all the cupboards and doors.)

3.  A couple of frozen casseroles that the parents can heat up and eat quickly while they are unpacking.  You may also want to include some wine, plastic plates and cutlery.  Tie it all up in a brown paper grocery bag and colourful ribbon.  If you cook the casserole and package it in tin foil containers, then you will not have worry about getting the containers back (or just give the containers as part of your gift).

Babysit, protect and feed.

 Photo credit:  Wine Bottle and Glasses @   http://www.flickr.com/photos/crouchy69/3753750409/

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