No other topic is seemingly so searched on google, as multiple offers on a home, these days.
Heres my take...for what its worth.
Dont let the stage production take you in. This is a chance for sellers and agents to get something going.
Act 1:
Listing appears and the (drum roll).."Offer Date" appears. Buyers get excited and nervous.
Act 2:
Sellers provide preinspection. "Hurry Up Offense".
Act 3:
Showings begin. Typical pattern begins. Agent open house followed by showings, a weekend of open houses and the offer date
Act 4:
Listing Agents update listing with a time for offers to be registered.
Act 5:
Offer day comes.
Act 6:
Buyer Agents call to find out how many offers are coming in and keep nervous buyers abreast.
Act 7:
Offer Time. Anxious buyers and their agents park in a row or line up at listing agents office
Act 8:
Agents present. Buyers wait to find out if they get to make it to second round.
Act 9:
Crown the king and queen. "We have a winner"
Act 10:
Most parties leave beaten up and their agents leave knowing their work is still cut out (some are okay with that, others are scarred!)
Heres the thing. This isnt new folks! When you were in school, you competed (well some of you) for the highest marks. On the soccer field you competed to win. This is a competition and the winner isnt always the winner because they played the game better or were better prepared. Sometimes somebody better suited to meet the mortgage payments, chose to stop short as they lost the idea of "value" on this particular property.
Dont let the production sweep you away. Study the market, understand value, offer what the house is worth (not to you but according to the comps); utilize the knowledge of your agent and understand that their are some benchmarking strategies.
And it wont be the last house...even in a market with seemingly not much inventory!
Good luck!!
Michael Gruenstein MBA CSC
Visit my website @ http://www.TheSmithsBuyAHouse.com
mgruenstein@trebnet.com
Sunday, May 29, 2011
Wednesday, May 25, 2011
Condo Investing Basics
Quick Condo Tutorial:
Theres been a lot of info of late around condos in the media
Why? Probably has to do with the fact that 6 of 10 solds are condos right now in GTA
The appetite for condos is huge!
And thats a good thing as theres no shortage of supply.
Who is buying? Investors are playing a big role.
Foreign investors to be clear.
Are condos a good investment?
The idea of buying a resale condo and renting it out often doesnt better your cash flow. It takes care of much of the expenses until you hopefully see capital appreciation and sell. But you need to hope that there arent too many like minded investors as youll lose some of your competitive advantage in a strong market should a number of units find their way to MLS.
New condos may be a better choice for an investor. Here you do need patience and the initial downpayment of 25 percent. All goes well if you buy off spec and the units appreciate yr over yr for the 3 yrs until the condo is registered then youre in a good position. Again, you wont be the only guy to have this idea so hopefully the mls isnt flooded with listings.
What some investors will do is beat the lunch crowd and look to sell paper before registration to lessen the competition.
Though theres no shortage of this manouver either. Have your realtor email you the supply in many new condos of those owners looking to assign their offers prior to closing.
Btw..a crude measure for rental rates can be 2.10-2.30 per sq ft depending on a number of factors.
So do your homework and understand the market and the workings of the deal. Nothing is a slam dunk but ______ and ______.
Cheers,
See my website @ http://www.TheSmithsBuyAHouse.com
Theres been a lot of info of late around condos in the media
Why? Probably has to do with the fact that 6 of 10 solds are condos right now in GTA
The appetite for condos is huge!
And thats a good thing as theres no shortage of supply.
Who is buying? Investors are playing a big role.
Foreign investors to be clear.
Are condos a good investment?
The idea of buying a resale condo and renting it out often doesnt better your cash flow. It takes care of much of the expenses until you hopefully see capital appreciation and sell. But you need to hope that there arent too many like minded investors as youll lose some of your competitive advantage in a strong market should a number of units find their way to MLS.
New condos may be a better choice for an investor. Here you do need patience and the initial downpayment of 25 percent. All goes well if you buy off spec and the units appreciate yr over yr for the 3 yrs until the condo is registered then youre in a good position. Again, you wont be the only guy to have this idea so hopefully the mls isnt flooded with listings.
What some investors will do is beat the lunch crowd and look to sell paper before registration to lessen the competition.
Though theres no shortage of this manouver either. Have your realtor email you the supply in many new condos of those owners looking to assign their offers prior to closing.
Btw..a crude measure for rental rates can be 2.10-2.30 per sq ft depending on a number of factors.
So do your homework and understand the market and the workings of the deal. Nothing is a slam dunk but ______ and ______.
Cheers,
See my website @ http://www.TheSmithsBuyAHouse.com
Thursday, May 12, 2011
Do we Buy first or Sell first? What does the Agent wasnt us to do?
This is naturally one of the first questions I get asked. And the truth is, I don't think there is a right answer. I believe you have to weigh your options depdening on your situation. Your situation depends on a few factors not least of which include 1) area of interest and turnover in that area,
2) will your bank assist you in bridging should you need to carry 2 mortgages even for a month or two
3) how quick do you think your house will sell--relative to your neighborhood and immediate comps
4) do you have a contingency plan as to where you could live in the event you sell first and can't buy in time
5) how long have you studied the market
6) what's your risk tolerance
Look, in a market like today's with seemingly not an abundance of supply in many pockets in TO, the arguement may be that your house, all things being equal should sell fairly quickly but the supply may not be great in the area of interest and result in high demand and multiple offers on the place you want to buy making the purchase end more complicated then the sell.
Alternatively, some banks will just about mandate these days that you sell first so you know what you're dealing with in terms of money to buy and they won't have to set up any extra financing for you or hold their breath that your current house doesn't sell quick enough
There are a few strategies that can help reduce the anxiety and put you in the driver's seat. If you sell first, try and ask for a long closing date to insulate yourself with time to purchase your new house. Of course, inventory narrows in the dead of the summer so keep that in mind as it does in the dead of the winter.
If you buy first, come up with a number (emergency number) that if you had to give away your house you could easily fetch. Of course, you'll get more then that number but insulate yourself so you don't buy too much and then put the pressure on to turnaround and get an unrealistic dollar on your current home.
The job of a good agent extends beyond listing and negotiating homes. It's helping you stay grounded and not getting overly emotional in a market like today's so one can make as informed a decision factoring in all costs involved as well as how the bankers are going to view the transaction.
Some believe that agents like when you buy first as it immediately puts pressure on you to sell your house quicker and gives the agent leverage on you. If that's the kind of agent you feel you have...yikes!
If you have further questions (and you really should) around this..please don't hesitate to call or email anytime.
Best-
Michael Gruenstein MBA CSC
Re/Max Realtron
http://www.TheSmithsBuyAHouse.com
mgruenstein@trebnet.com
2) will your bank assist you in bridging should you need to carry 2 mortgages even for a month or two
3) how quick do you think your house will sell--relative to your neighborhood and immediate comps
4) do you have a contingency plan as to where you could live in the event you sell first and can't buy in time
5) how long have you studied the market
6) what's your risk tolerance
Look, in a market like today's with seemingly not an abundance of supply in many pockets in TO, the arguement may be that your house, all things being equal should sell fairly quickly but the supply may not be great in the area of interest and result in high demand and multiple offers on the place you want to buy making the purchase end more complicated then the sell.
Alternatively, some banks will just about mandate these days that you sell first so you know what you're dealing with in terms of money to buy and they won't have to set up any extra financing for you or hold their breath that your current house doesn't sell quick enough
There are a few strategies that can help reduce the anxiety and put you in the driver's seat. If you sell first, try and ask for a long closing date to insulate yourself with time to purchase your new house. Of course, inventory narrows in the dead of the summer so keep that in mind as it does in the dead of the winter.
If you buy first, come up with a number (emergency number) that if you had to give away your house you could easily fetch. Of course, you'll get more then that number but insulate yourself so you don't buy too much and then put the pressure on to turnaround and get an unrealistic dollar on your current home.
The job of a good agent extends beyond listing and negotiating homes. It's helping you stay grounded and not getting overly emotional in a market like today's so one can make as informed a decision factoring in all costs involved as well as how the bankers are going to view the transaction.
Some believe that agents like when you buy first as it immediately puts pressure on you to sell your house quicker and gives the agent leverage on you. If that's the kind of agent you feel you have...yikes!
If you have further questions (and you really should) around this..please don't hesitate to call or email anytime.
Best-
Michael Gruenstein MBA CSC
Re/Max Realtron
http://www.TheSmithsBuyAHouse.com
mgruenstein@trebnet.com
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