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Thursday, February 23, 2012

The Pros and Cons of Open Houses


Pros and Cons of the Open House

Open houses have been traditionally held to introduce a home listing to buyers and gain exposure. The open house allows many people to view the home in one afternoon. Realtors do not like to hold open houses because they are tied down on a weekend afternoon, prime selling time, and open houses often do not result in sales. The thing is that sellers ask for open houses. They think it is a sign that the realtor is working for them so they demand it. Here's a list of the pros and cons to holding an open house.

PROS
• An open house attracts buyer’s attention.
• A person walking or driving by may become a potential buyer.
• A neighbour considering moving to a larger or smaller home, may prefer to stay in their neighbourhood. An open house gives them an opportunity to visit without any pressure.
• Open houses are often advertised in a local newspaper or online. This brings potential buyers.
• Some buyers prefer to visit a number of open houses on a weekend, instead of having their agent make appointments.
• A potential buyer, who hasn’t yet decided to contact an agent, may be swayed by the opportunity of an open house.
• An open house can give the agent and buyer an indication of the market in the neighbourhood and let them know if the house is priced right.

CONS

• Most homes are not sold through open houses.Only 1-3% are sold as a result of an open house.
• Curious neighbours and other people who are not serious buyers will waste your agent’s time. Nosy neighbours poke around your house because they want to see your décor, compare your house to theirs, or learn your selling price.

• Buyers want personal service and don’t want to share the agent’s attention with other people.
• Safety can be a concern if an open house is busy and the realtor is unable to keep an eye on everyone. Thefts have occurred in some instances.
• An open house can last for an afternoon. Sellers who wish to relax at home on a weekend, will have to leave and take any pets with them.
• Groups of people traipsing in and out can track mud into the house.
• Some people treat open houses as a form of recreation, bringing the family and eating the real estate agent’s cookies.
• The weather may not cooperate. People will not show up for an open house if there is inclement weather. In winter, this can be a real problem in Calgary.
• If there are no visitors, a seller can become worried or stressed.
Open houses are something that everyone needs to talk to their realtor about. If you need information on mortgages or lines of credit contact me. As a Calgary mortgage broker, I have the answers to the questions you have.

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Thursday, February 9, 2012

Canada Census 2011: Calgary was the country’s fastest-growing city – Calgary Mortgage Broker


Census highlights

Canada’s population as of May 2011 was 33,476,688.
Population grew by 5.9% between 2006 and May 2011.
The greatest growth rate among all provinces/territories was Saskatchewan
For the first time Saskatchewan’s population exceeded 1 million.
Between 2006 and 2011 every province experienced positive growth.
The country’s fastest-growing city was Calgary, Edmonton, Saskatoon and Kelowna, B.C. since 2006.
Population decline was Windsor and Thunder Bay, both in Ontario.
10 of the fastest growing census agglomerations (communities or groups of communities between 50,000 and 100,000 people) were in Alberta.
The largest decrease in population was Thunder Bay, Ont. losing 10.3 per cent.
Urban centres grew to more than 10,000 people and became census agglomerations was: Steinbach, Manitoba, High River, Strathmore and Sylvan Lake and Lacombe — all in Alberta.

15 fastest growing metropolitan areas

Calgary: 1,214,839, 12.6% increase
Edmonton: 1,159,869, a 12.1% increase
Saskatoon: 260,600, an 11.4% increase
Kelowna, B.C.: 179,839, a 10.8% increase
Moncton, N.B.: 138,644, a 9.7% increase
Vancouver: 2,313,328, a 9.3% increase
Toronto: 5,580,064, a 9.2% increase
Ottawa-Gatineau: 1,236,324, a 9.1% increase
St. John’s: 196,966, an 8.8% increase
Brantford, Ont.: 135,501, an 8.7% increase
Regina: 210,556, an 8.0% increase
Oshawa, Ont.: 356,177, a 7.7% increase
Abbotsford-Mission, B.C.: 170,191, a 7.0% increase
Quebec City: 765,706, a 6.5% increase
Kitchener-Cambridge-Waterloo, Ont.: 477,160, a 5.7% increase

Source: National Post

With 42-45,000 more people expected to move to Alberta , most of them coming to Calgary, you can expect housing prices to rise above the 2% forecast last month.
If you want to be preapproved for a mortgage Contact me here
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Tuesday, February 7, 2012

RBC Cancels 4-year Promo Early


RBC’s 2.99% four-year fixed promotion was intended to last until February 29. RBC is instead cancelling it early, effective Wednesday February 8.

The nation’s biggest bank is raising its:

4-year fixed “special offer” by 40 bps to 3.39%
5-year fixed “special offer” by 10 bps to 4.04%
5-year fixed posted rate by 10 bps to 5.24%

Some quick points on these changes:

Other major banks are expected to match some or all of RBC’s rate increases, but that's far from guaranteed.
Some lenders and brokers may continue offering 4-year fixed terms at 2.99% (or less), at least for the time being
For just 10-20 bps more (i.e., 3.09-3.19%) you can find several brokers offering 5-year fixed mortgages. That’s a reasonable premium for one extra year of rate protection.
RBC’s 4.04% five-year “special offer” is almost a full point above 5-year fixed rates on the street. No one other than the most novice mortgage shoppers take this rate seriously.
RBC spokesman Matt Gierasimczuk attributed today’s rate increases to this:

“Our long-term funding costs have gone up considerably due to global economic concerns and, while we have held off in passing on these rate changes to our clients, it is now necessary for us to increase this mortgage rate.” (Source: Bloomberg)

interest-ratesWe can find nothing to suggest RBC’s 4-year fixed funding cost rose 40 basis points since mid-January. It has among the lowest cost of capital in Canada and other lenders have recently launched new 2.99% four-year specials of their own (one of them today).
The Globe and Mail quotes sources who say that regulators were unhappy with the “price war” that followed BMO’s 2.99% five-year special. That may be somewhat linked to this announcement, hints the article. The government is clearly worried that low rates may incite borrowing and inflate the debt balloon further.
If you want to lock in a rate now so that you can shop for a home over the next 3 months Contact me today.

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Wednesday, February 1, 2012

The Pros and Cons of an Open House


Pros and Cons of the Open House

Open houses have been traditionally held to introduce a home listing to buyers and gain exposure. The open house allows many people to view the home in one afternoon. Realtors do not like to hold open houses because they are tied down on a weekend afternoon, prime selling time, and open houses often do not result in sales. The thing is that sellers ask for open houses. They think it is a sign that the realtor is working for them so they demand it. Here's a list of the pros and cons to holding an open house.

PROS
• An open house attracts buyer’s attention.
• A person walking or driving by may become a potential buyer.
• A neighbour considering moving to a larger or smaller home, may prefer to stay in their neighbourhood. An open house gives them an opportunity to visit without any pressure.
• Open houses are often advertised in a local newspaper or online. This brings potential buyers.
• Some buyers prefer to visit a number of open houses on a weekend, instead of having their agent make appointments.
• A potential buyer, who hasn’t yet decided to contact an agent, may be swayed by the opportunity of an open house.
• An open house can give the agent and buyer an indication of the market in the neighbourhood and let them know if the house is priced right.

CONS

• Most homes are not sold through open houses.Only 1-3% are sold as a result of an open house.
• Curious neighbours and other people who are not serious buyers will waste your agent’s time. Nosy neighbours poke around your house because they want to see your décor, compare your house to theirs, or learn your selling price.

• Buyers want personal service and don’t want to share the agent’s attention with other people.
• Safety can be a concern if an open house is busy and the realtor is unable to keep an eye on everyone. Thefts have occurred in some instances.
• An open house can last for an afternoon. Sellers who wish to relax at home on a weekend, will have to leave and take any pets with them.
• Groups of people traipsing in and out can track mud into the house.
• Some people treat open houses as a form of recreation, bringing the family and eating the real estate agent’s cookies.
• The weather may not cooperate. People will not show up for an open house if there is inclement weather. In winter, this can be a real problem in Calgary.
• If there are no visitors, a seller can become worried or stressed.
Open houses are something that everyone needs to talk to their realtor about. If you need information on mortgages or lines of credit contact me. As a Calgary mortgage broker, I have the answers to the questions you have.

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