Chances are, you’ve heard the expression, “Your home is your biggest investment.” For most homeowners, that’s true. So, when you’re shopping for a new home, it’s important to consider the financial ramifications of any purchase. Ideally, you want a home that is likely to increase in value over time.

In other words, you want a home with a strong potential return on investment.

But dollars aren’t the only type of return you should look for in a new home. Real estate is unique in that the “emotional” return is just as important as the financial return — and, in some cases, even more so.

Say, for example, you’re thinking of moving to a neighbourhood that is closer to work. In fact, you’ll cut your commuting time by an hour each day. Financially, that return on investment means little beyond some savings on gas. However, the emotional payoff can be very high, especially when you consider what you can do with that extra hour each day. Imagine what it would mean to spend more time with your kids or workout out at the gym more often.

So, considering the emotional return on investment when you’re moving is essential. It has a huge impact on your lifestyle and your enjoyment of the property.

How do you factor that in when selling your property and searching for your next dream home?

When you see a listed home you like, make a list of all the emotional benefits of living there. That list might include having a park nearby, living closer to friends or family, having a home office that isn’t the kitchen table, having more space to accommodate a growing family, and so forth.

Then, factor that list into your decision of whether or not to buy.

Daydreaming about owning something you can’t afford can be fun. Whether it’s a diamond-encrusted watch from Tiffany & Co., or the latest Lamborghini, even the thought of trying one on or going for a test drive can be exciting.

The problem with daydreaming, however, is that it’s all-too-easy to dismiss it as just that – a dream.

But, what if you daydream about owning a beautiful home in a desirable neighbourhood? Before you dismiss that as just fanciful thinking, it’s worth finding out if that dream could actually be achievable.

You might discover that you do qualify to get into the home of your dreams.

It’s relatively easy to figure it out.

First, you need to learn what homes are currently selling for in the neighbourhood you’re targeting. If you’ve been through that exercise already, keep in mind that the market might have changed substantially in the past few months.

The next thing you need to determine is approximately how much you can expect to get for your current property. That’s a fairly easy calculation and is based on what “comparable” homes in your neighbourhood have sold for recently.

Finally, you need to find out how much of a mortgage you may need and what your payments will likely be.

Once you have those numbers, you’ll know if you can afford the home of your dreams in the neighbourhood you’d love to get into.

Then you can stop daydreaming and make it happen!

When you set a budget for a new home, you’re obviously hoping — maybe even expecting — to find the ideal property within that price range.

But, it doesn’t always work out that way.

In fact, there are many circumstances in which you might have to rethink your budget and possibly even increase it, to get the home you want.

For example, you might find that properties in neighbourhoods you’re targeting are selling for more than you expected. In that circumstance, you might have to look for a home in a different area, or see if you can bump up your budget.

Another scenario that often comes up is changing wish lists. You may view a few homes for sale and realize that a particular feature is more important to you than you initially thought. For example, you might have budgeted for a three-bedroom home, but once you’ve seen a few properties with four, you think, “Okay, we definitely want four bedrooms!” That might result in a budget bump.

Finally, you might find that you view a property and fall in love with the place. It’s perfect. It has everything you need. You’ve got to have that home! But, its price is outside your budget.

In that case, you’ll need to weigh paying a bit more against getting a home that will have a significant and positive impact on your lifestyle and happiness.

As you can see, there’s a lot to consider when shopping for a home and trying to stay within a budget.

When searching for a new home, many buyers will focus only on the list price and what they may need to offer to get the property. For example, a buyer might think, “We can get this house for $XX. That’s within our price range!”

Of course, the selling price plays the pivotal role in whether or not you can afford a particular home. But, carrying costs should also be considered.

Carrying costs include any regular expenses related to the property. The obvious ones are gas, hydro, water, garbage, and taxes. But there may be others. For example, a home may also have a subscription-based alarm system, high-speed internet, and hot water tank rental.

If there are common elements, such as a private street or some other neighbourhood feature, there may be an annual maintenance fee.

It’s also smart to factor in predicted maintenance and repair costs, especially when buying an older home. A property that hasn’t had its asphalt roof shingles replaced in 20 years may be due soon.

So, when shopping for a new home, consider what the carrying costs will be. That will help you make a more informed decision.

That being said, having to pay a little more in monthly costs may be worth it if you love the place and it (as well as the neighbourhood) has everything you want.

Imagine if, for whatever reason, you suddenly needed to find and buy a new home in a hurry. What if you had just a few weeks?

If you’re like most people, your first instinct might be to panic. Well, there’s nothing wrong with having some apprehension about having to find a new home quickly. But, there are steps you can take that will make the process a lot less stressful and, ultimately, make it more likely that you’ll find a great property you’ll love.

The first thing you need to do is determine your budget. That will give you a price range you can confidently shop within. Your budget should take into account how much your current home will likely sell for, how much you qualify to receive on a new mortgage, as well as any other funds you can put into a new home.

Next, decide on areas or neighbourhoods that have listings within your budget to target in your search. Narrowing your scope will actually help you find the right home, sooner.

When viewing properties for sale, be as flexible as you can. You don’t necessarily need to compromise on what you want. However, if you need to buy in a hurry, it makes sense to consider listings that may be less than perfect, yet still check most of the boxes on your wish list.

Keep in mind that if you purchase a property that isn’t exactly what you want, a renovation or other improvement could potentially turn it into your dream home.

Having to find a new home quickly can be challenging. But if you get the right professionals working for you, it’s going to be a lot easier — and achievable.

Throughout the history of journalism, reporters would pride themselves on getting the “inside scoop” on a story. In fact, that’s where that expression came from.

So imagine you’re shopping for a new home and click on a listing online. Up comes all the property information. But, chances are, there is more to the story of that property than is presented in that listing. For example, you might want to know more about:

• The empty field behind the home.
• The addition that was added to the house. (Was it professionally done?)
• What the neighbourhood is really like.
• The age of the roof shingles. (Will they need to be replaced soon?)
• Noise levels on weekends.
• Upcoming new development that might change the character of the area.

Most property information listed on MLS and elsewhere is incomplete. There’s almost always more to the story of a listing than you can find online.And, even after viewing a listed property, you may still have lingering questions or concerns.

So, you’ll want to get the “inside scoop” and find out more.

But how?

To get the inside scoop on a listing, call me. I can get the additional information you need on a property so that you can make a more informed decision.

Walk-through videos are becoming increasingly popular. The seller’s agent simply arranges a filmed tour of a home, often including commentary, and then makes the video available to prospects.

When you’re shopping for a new home, you want to get the most out of watching this type of video, especially if you’re relying on it to help you decide whether or not to make a viewing appointment.

Consider these suggestions:

• Remember, it’s a video. So take advantage of the ability to pause, go back and forth, and take screenshots you can review later.
• When you’re watching, look for everyday items that can give you perspective, such as a lamp, sofa or chair. These items will help you gain a more accurate sense of room sizes.
• Although that previous tip will help, it’s still difficult to judge room size on a video. So, don’t be quick to dismiss a listing because you think the rooms might be too small.
• Pay attention to what is not shown. Did the agent leave the ensuite bathroom out of the video? That may indicate an issue.
• When viewing the main rooms, such as the living room and kitchen, try to get a sense of how your furniture will fit.
• Make a list of features and characteristics you want in your next home. Have that list handy as you watch the video. You can use it as a checklist.
• While you’re watching, jot down any questions you have about the property.

After watching the video, if you like what you see, take the next step. Schedule a viewing appointment.

Is there a neighbourhood you drive through occasionally and think, “Wow. I’d love to live here. What a fantastic area”?

Why don’t you take that thought any further? Maybe you think getting into that neighbourhood just isn’t doable – at least, not right now.

Perhaps you’re worried about the home prices or the current lack of homes forsale in that area. Maybe there’s some other reason, such as the possibility of higher mortgage payments.

Of course, those are all valid concerns. But why not find out whether or not they would genuinely hold you back?

For example, if you’re wondering whether you can afford a home in that neighbourhood, you can find that out with a reasonable degree of certainty. You can:

-  Get a current market value assessment so you know, approximately, what you’d likely get for your home.

-  Find out the average selling price of homes in the target neighbourhood.

-  Calculate what you’d be able to put down on a new home.

-  Find out how much mortgage you’ll need and what your payments would be.

Once you’ve taken a closer look at the actual numbers, you might discover that a nice home in your desired neighbourhood is within reach.

So, get the facts you need instead of assuming you can’t get into the neighbourhood you want.

The fact might be, you can!

Call today if you’d like to explore that possibility. I can help you get the facts you need.

When you’re shopping for a home, you may become interested in a property for sale that someone else is also considering. In fact, there may be several other buyers entertaining the idea of making an offer.

In such a competitive situation, what should you do if you really love that home?

Obviously, you’ll need to move quickly and make some fast decisions.

Start by making certain the property fits within your price range. The last thing you want is to have an offer accepted and find out it is beyond your budget. That’s why it’s a good idea to arrange for financing before you go home shopping.

Next, you want to make an offer that is so enticing to the sellers that they’ll put your offer at the top of the pile, if not close to it. So, what makes an offer enticing?

Obviously, price is a big factor. You want to go in at a price that’s attractive to the sellers, without overpaying. Imagine finding out later that the nearest offer to yours was $15,000 less. Ouch!

Chances are your offer price will need to be at or slightly above asking. Find out what similar homes in the area recently sold for — what real estate agents call “comparables” — and use those as a guide.

It’s also important that your offer contains few, if any, issues that may be concerning to the sellers. The ideal offer will feature:

-  No conditions

-  A closing date that’s convenient for the seller.

-  A deposit amount that shows you’re a serious buyer.

-  Acceptance of any of the buyer’s “exclusions”. (For example, they want to take the fridge and stove with them.)

-  Evidence you can get financing. (Many lenders offer a “Mortgage Preapproval Certificate”.)

Although a “no conditions” offer is the most attractive, including a condition on passing a professional home inspection is usually not a problem, so long as the inspection is done quickly. Avoid adding other conditions, such as “subject to financing approval” or “subject to the sale of buyer’s existing property”.

If you want to increase the likelihood that you’ll find — and, more importantly, get — your next dream home, call today.

When you’re shopping for a new home, you probably want the property to be as “move in ready” as possible. That way, you can... well... just move in!

However, there are a lot of fantastic properties on the market that need some work. For example, you might see a home that has everything you need, but the kitchen is long overdue for a renovation. Or, you might view a property that requires a lot of repairs and painting — tasks that, at first glance, seem overwhelming.

You don’t want to just pass on a property that might be a great buy. On the other hand, you don’t want to purchase a home, only to end up with more renovations, repairs and expenses than you anticipated.

What’s the solution? Here’s an idea.

When you view a home that needs work, make a note of exactly what needs to be done. Stick to the important “must have” improvements and leave “nice to have” improvements for a later time. Chances are, you’ll identify just one or two projects — such as “paint all the walls” or “replace the countertops in the kitchen”.

Once you have that list, you’ll be in a better position to determine how long the work will likely take and the approximate cost. This will give you some needed perspective on whether or not to buy the home.

If a home you’re considering needs $15,000 in work that can probably be completed within two months, that might make the property worth buying. In fact, it probably would!

So, when you see an otherwise ideal home that needs some work, don’t let your imagination make that work into more than it is. Take notes and get estimates.

In the business world, a phrase that’s often used is ROI or Return On Investment. It refers to the regular gain (or loss) you’re getting from a particular asset relative to its cost.

When it comes to your home, the gain may be more than financial. It may include the benefit of the lifestyle it gives you. For example, a spacious backyard deck pays off in countless pleasant Saturdays with friends and family. A home’s location near convenient commuting routes means less stress getting to and from work.

Lifestyle factors are important, not only when considering where you’re living now, but also when considering where you think you’d like to live in the future.

That’s why it’s a good idea to do a Lifestyle Assessment regularly. The exercise is simple. Make a list of all the lifestyle characteristics you want in a home, as well as a neighbourhood. Think about how much room you need, the kind of neighbourhood you want to live in, your hobbies and interests, what’s important to have nearby (such as schools), and so forth.

The next step is to prioritize. Move items on your list around so that the most important lifestyle factors are at the top.

Finally, review the list and check off those lifestyle factors your home is currently providing.

If you’re able to check off most (ideally, all) of the items at the top of your list, you’re in pretty good shape. Your current home is probably giving you the lifestyle you want.

But if some important lifestyle factors are unchecked, it might be worth considering whether buying a new home will give you a better “Lifestyle ROI”.

If, after doing this exercise, you’re curious about how to get into your ideal home, call me.

How do you find the home of your dreams within a price range you can afford? Most buyers start by making a “wish list”. But, it’s easy to get frustrated when you have a long wish list and expect you’ll be able to find a home with every one of those features. You might, for example, have “mature backyard tree” as number 23 on your list, and become disappointed when an otherwise ideal property doesn’t have one.

But when you really think about it, your ideal home probably comes down to just three or four core characteristics. For example:

1. Nice, safe, family-oriented neighbourhood.

2. Good-sized backyard.

3. Four bedrooms and two baths.

Sure, there might be other features you were hoping for, such as “move in ready”, or that big tree, but your “big three” are the ones you really can’t do without.

So, when you’re shopping for a new home, yes, definitely make a long list of features and characteristics you desire. After all, there might be properties available on the market that check off most, if not all, of those boxes.

But also circle those three or four characteristics that are at the core of what you want. That will help make your property search much more focused and you’ll be more likely to find your next dream home.

Another advantage of coming up with your big three (or four) is that you’ll be able to quickly discover how much homes with those characteristics are selling for on today’s market. Once you know that price range, you’ll be able to talk with a mortgage advisor to pre-arrange financing. That will make your offer on that dream home even stronger.

Whatever you choose for your “big three”, I can help you find and buy that home. Call me.