Tips & Insights for Buying a Home:
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Listing or buying What comes first?

Right now, much of Canada is in a red-hot real estate market, and we're seeing the characteristic patterns that go with it. The inventory of attractive listings in many markets is lower than we've seen in some time. Buyers are aggressively going after properties, sometimes paying record prices for the few attractive, well priced homes on the market. This kind of hot market is good news for the seller, while buyers often find their choices are limited. Homeowners who want to sell their existing home and buy a new one are asking what they should do first in a hot real estate market.

Unfortunately, there's no one right answer to that question. However, while each situation is different, there are some common factors to consider that may help you make the right decision. When demand is higher than the supply of housing, the resulting seller's market often brings buyers who are quick to make an offer when they see something they like. Also, their first offers are often quite good ones, since they don't want negotiations to drag on until another prospective buyer enters the picture. Your Coldwell Banker real estate professional can help you price your home smartly to take advantage of this market and ideally, your home will sell at a good price within a short window of time.

However, if your home does sell quickly, it doesn't necessarily mean that you have to leave it quickly. Your agreement of purchase and sale will specify your transaction closing date. While this date is typically sixty or ninety days from acceptance of the offer, you are free to choose a closing date that's much later. Again, since it's a seller's market, your buyers will likely be agreeable to your timing, since their primary objective is to get the house. That gives you additional time to find a house that's right for you, and you'll now be going into that process knowing exactly what proceeds you'll net from the sale of your existing home.

Selling your existing home first helps keep your offer to purchase your next home as clean, simple and attractive as possible. By eliminating the need for a condition to allow for the sale your existing property, you've removed any fear the seller may have about holding up the sale for a prolonged period of time, or the very real chance that the condition may never be fulfilled. Going in with a firm offer puts you in a much better position to negotiate the sale of your next home than you would with a conditional offer.

Your Coldwell Banker real estate professional can counsel you on the pros and cons of buying or selling first, and can help you to make an informed decision.

When do I make a conditional offer?

In today's hot real estate market, many prospective buyers are questioning whether a conditional offer can impact the potential success of their home purchase. While there's no one right answer to this question, it generally depends on what specific conditions are contained in the offer. Some conditions may be simple or short-term, such as requiring a home inspection or the approval of financing. Since these conditions are commonplace and shouldn't tie up the property for long, they normally don't have a major impact on the negotiating process. An exception to that rule would be when you're competing against another bid in a multiple offer situation. Then, every detail can make a difference.

In a hot market, you want to make your offer as attractive as possible and you can do this by minimizing the number of conditions present. One of easiest ways to do this is by pre-qualifying yourself for a mortgage, thus eliminating the need for a condition to allow time to arrange for appropriate financing. You're already going into negotiations knowing exactly what amount of mortgage you qualify for.

If you're thinking of making an offer conditional upon the sale of your current home, that can be a challenge. Even in a good market, this condition could easily be in effect for a long period of time. If you don't price your home smartly, there's even a real chance that your present house won't sell, so the condition won't be fulfilled. In a hot market, a seller normally won't be eager to agree to a condition that holds their house at an agreed upon price and terms, for a specified period of time. If the condition isn't fulfilled by the end of that time frame, the offer expires and the buyer is under no further obligation. Offers conditional on the sale of an existing property solely benefit the buyer and can be a tough sell in a good market. You'll require a very effective salesperson to help you negotiate such an offer successfully.

If you do decide on a conditional offer, and it's accepted, remember that the homeowners are still free to continue marketing their property to other buyers. While the homeowners cannot accept another conditional offer, most agreements have an escape clause that allows the homeowner to accept a firm offer, unless you firm up your offer first. This means you remove all conditions and agree to be bound by the terms of your agreement. The original selling price and terms of the offer stay in effect, regardless of what the homeowner may have been offered by another party. The escape clause keeps the heat on you to make every effort to sell your home and fulfill the condition in the shortest possible time.

An alternative would be to list your existing home for sale first. Then you know what the proceeds from that sale are and what funds you can commit towards the purchase of your next home. Your Coldwell Banker sales professional can help you weigh the options to decide on the approach that's right for you.

Carrying costs vs. closing costs -- what homebuyers need to know

When looking to buy a new home, there are many costs to consider -- moving costs, legal fees, and even re-decorating expenses. There may also be additional costs associated with leaving your existing residence, such as lease penalties,
or mortgage discharge fees.

One of the areas where homebuyers most frequently run into problems is with closing costs. Homebuyers often do not properly anticipate the costs associated with closing a real estate transaction, and the resulting cash crunch can add stress at a time when you need it least.

In addition to your down payment, there are many other expenses that must be paid on closing day before your home purchase can be completed. Closing costs are typically one-time-only charges that are required to complete -- or close -- the transaction. These costs may include inspection fees, appraisal fees, title search, lawyer's fees, and applicable taxes, such as GST. An important component of closing costs is your proportionate share of property taxes, utilities etc. that may have already been pre-paid by the vendor. You should expect to reimburse the vendor for those costs associated with the period following your closing date.

There may be other costs that will be necessary to complete your transaction, such as the cost of a property survey. Your Coldwell Banker sales professional can help you estimate closing costs before you commit to an offer to buy a home. In some circumstances, your real estate representative may even recommend spelling out the terms for some of the expenses to be incurred within your offer to purchase. Good preparation can help make your closing day trouble free.

Carrying costs, on the other hand, are those expenses that are routinely incurred for the ongoing operation and upkeep of your home. These costs include such items as your mortgage payment, property taxes, heating costs, home insurance, utilities, maintenance costs, etc. Your Coldwell Banker sales representative can help you estimate many of these costs from the information on the listing. Your mortgage payment is another cost that can be estimated prior to making an offer to purchase. Again, your Coldwell Banker professional can be a helpful source of creative financing information, and can even help you pre-qualify for the loan.

Coldwell Banker customers also qualify for a program that helps relieve the stress of buying a home with one-stop shopping for a full range of home-related services. The Coldwell Banker Concierge program puts you in touch with proven, trusted suppliers who can save you time or money and help you with your all home-related needs. It's just one more way that Coldwell Banker offers Ultimate Service to our customers.

A Good Salesperson is a Good Listener

Whenever you want to buy or sell real estate, your first step is usually to seek out the assistance of a salesperson. A good one can produce success and a positive experience. A bad one.... well, let's not even go there. So, what are we looking for in trying to find the perfect salesperson? The first step is to realize that he or she does not exist! Granted, there are many excellent salespeople out there, but perfection is only in the eyes of the beholder - and each client wants something different. What suited your Uncle Fred may not necessarily be the best fit for you and your individual needs. When it comes to finding the right salesperson one size definitely does not fit all. But, don't despair. There are lots of excellent salespeople out there and while they may look different, they have some surprisingly common characteristics or habits.

Not so long ago, anyone who was a fast talker or a great real estate conversationalist was assumed to be a born salesperson . Today, salespeople must also be good listeners . That doesn't mean that they can't hold their own in a conversation. It's just that they recognize there are two sides to being an effective communicator. For instance, does your salesperson ask you, the customer questions? Only by asking can they find out what you want, when you want it, and where. You see, all of us have slightly different needs. Listening uncovers those needs. Hence, listening is the most important attribute and often the most overlooked attribute of a good salesperson. Coldwell Banker real estate professionals have developed listening skills into a fine art. It's the pivotal element in a unique marketing system called Ultimate Service®.

Of course, besides listening, salespeople have to be able to perform once the client's needs have been uncovered. That's where drive', discipline, and expertise come into play. When you find all those good things, you have an excellent salesperson. And, when you find someone who has that extra empathy or chemistry with you, then you have found your perfect salesperson, not the perfect salesperson, which really does not exist.

The Numbers Game choose quality over quantity

When choosing a real estate company, home buyers and sellers are often inundated with various advertising and performance claims from the companies and sales professionals competing for their business. Some of our competitors promote themselves by playing a numbers game. But the numbers they promote to the public often refer to how much volume they produce, or how many houses they sell in a given time. Such numbers speak all about quantity. Do these numbers really mean a lot to you -- the consumer? At Coldwell Banker, we play the right numbers game. Our numbers mean quality and satisfaction to the people who mean the most to us -- our customers.

Take a look at some Coldwell Banker numbers. Over the years, we've been repeatedly rated the #1 real estate franchise by such respected publications as Entrepreneur Magazine, Success Magazine, Franchise Times, and Income Opportunities Magazine. More importantly, here in Canada -- through our exclusive Ultimate Service® program -- we've achieved an overall customer satisfaction rating of 98% year after year. That satisfaction rating is the most important measurement of all, because it was assessed by our own customers. You don't have to take our word for it you can judge our performance by what over 20,000 satisfied Canadian home buyers and sellers had to say. And isn't that the measurement that matters most to you?

Since 1906, the Coldwell Banker® organization has been the premier provider of full-service real estate. In 2003, Franchise Times magazine's prestigious Top 200 issue ranked the organization number one in real estate and number eight overall. Additionally, the Coldwell Banker organization has the highest ranking in customer satisfaction from both first-time homebuyers and sellers who used national real estate firms, according to the J.D. Power and Associates 2003 Home Buyer/Seller Satisfaction StudySM.

So while it's comforting to know that the Coldwell Banker system has about 3,600 residential and commercial real estate offices with 113,800 sales associates globally to service your real estate needs the measurement that really matters is that we're first in customer satisfaction. And discerning home buyers and sellers choose quality over quantity, every time.

Home Insurance Know what you're buying

When you're buying a home it can be a hectic time, full of details that need attending in a short period of time. One of those details is arranging for the insurance on your new home and its contents. It's a necessity to have home insurance in place on the day you take ownership, to ensure that your investment is protected.

Start out by checking with your lawyer about the existing home insurance on the property. In the adjustments at closing, it's typical that the home insurance on the property will be cancelled, and it's your responsibility to arrange for new insurance with the carrier of your choice. Your lawyer can confirm whether this is the case, and that no insurance benefit is transferring to you upon closing and therefore no expenses are being incurred by you.

Surprisingly, a good starting point in looking for your new home insurance can be your real estate company. Some of the more progressive real estate companies, such as Coldwell Banker, have forged alliances with other national companies to offer special benefits to their customers. With these programs, your status as a real estate customer entitles you to special discounted or group rates on home- related services, such as insurance. However, all programs are not alike, so weigh the features carefully. The better homeowner insurance programs will also offer additional customer perks such as a customer assist Helpline that can also provide you with quotes over the phone or online in a very short matter of time, so comparison shopping is easy and convenient.

Every homeowner wants to enjoy the peace of mind that home insurance offers. How to be sure that you're getting good value for your money is another question especially when it's hard to find the time to investigate different alternatives. When comparing one company's quote against another, make sure that you are comparing apples to apples , i.e. that all the variables are comparable. For instance, what is the deductible amount that you must pay before the insurance kicks in? What is the maximum value the company has allowed for the replacement of the house, the garage, and the home's contents? How much is allowed for living expenses if you have to live outside the home while repairs are being made? What are the policy's exclusions? Read the fine print first.

Some people are surprised to learn that simply by choosing to work with one real estate company over another, they can qualify for special customer services or discounts. When money is tight and time is at a premium, why not take advantage of proven performers that can save you time and money on a variety of moving related expenses? If you'd like to know more about Coldwell Banker Canada's alliance programs, ask your real estate professional, or visit our website at www.coldwellbanker.ca and click on Coldwell Banker Concierge" for a complete listing of partner company programs.

Good service changes with the times

When it comes to providing good service to homebuyers and sellers, there are some proven constants that will never change. Good service is all about listening to your customers. That's the first step in understanding their individual needs and customizing a real estate service offering that's designed to meet those needs. It's about consistently satisfying customer after customer, and building a proven track record of success that assures even your newest customer that they can trust you to keep your promises. That's the kind of outstanding customer service that never goes out of style. In fact, here at Coldwell Banker Canada, we have a name for that kind of service - we call it Ultimate Service®.

Yet, while caring, personal service will never go out of style, the ways in which a real estate company delivers that service need to change with the times. There's an old saying that says "Nothing is permanent except change." This is especially true of today's real estate profession. Today, new developments in user-friendly technology and value-added services that extend beyond the transaction have combined to offer new service options never before available to customers.

On the technology front, the Internet has revolutionized how homebuyers search for homes. With Coldwell Banker Canada, an international database of thousands of homes can be accessed by visiting our award-winning website www.coldwellbanker.ca. Homebuyers can use our online property search engine, Personal Retriever"! to get your home search on the fast track. Personal Retriever lets you enter your personal "wish list" of home features, then instantly reviews it against thousands of listings as they come online, and emails you every time it finds a match - complete with pictures.

Homebuyers can also take advantage of Ultimate Tours. Previewing homes for sale has never been so easy, with 360? room-by-room views available online, at your fingertips. You do the preview online, and visit only those homes that merit a closer look. The Ultimate Tour technology also benefits home sellers, since it exposes your property to thousands of potential buyers, and helps to qualify prospective buyers in advance. If they've seen your home online and want a closer look, you know that your visitors are serious buyers.

Today's sophisticated consumer not only wants convenience, they want value. Coldwell Banker Concierge"! is a special customer program that offers a hassle-free way to handle all your home-related needs. This program can help relieve the stress of buying and selling a home, with one-stop-shopping and special offers from a broad range of proven, trusted suppliers. A complete listing of Coldwell Banker Concierge service providers is posted at www.coldwellbanker.ca

Call today and find out how timeless service still changes with the times.