Will Selling Your Home Privately Save You Money???

It's a question many homeowners often ask themselves: could I save myself thousands of dollars by bypassing the real estate agent and selling my home myself? After all, the Internet has made private home sales much more accessible with numerous For Sale By Owner websites that allow sellers to market their homes to a wide audience without the use of an agent. How hard can it be?

An interesting article in the Financial Post this week takes a look at the pros and cons of the private sale. A bit of math shows that a 5% commission paid to an agent on the average home price of $331,171 would save you a whopping $16,558. Or would it? As with most things, nothing is ever that black and white.

Whether or not a private home sale actually puts more cash in the vendor's pocket is a tough call. The seller might save by not having to pay a 5% commission, but others argue that an agent brings greater exposure, more competition and therefore a better chance you will be offered a higher price for your home. And then there's the time and effort put in on behalf of the seller, often eating up weekends and disrupting office hours. So deciding on whether a private sale is for you really comes down to how much time you have to research the market, talk to buyers and how confident you are in your ability to negotiate the sale.

The article makes a few interesting points:

• Private home sales are generally more successful in a hot real estate market
  


• Many private sellers often end up paying a commission to buyers' agents, usually about 2.5%
  


• Buyers usually expect a discount on private sales because they know the seller is saving on commission
  


• Private sellers do not have the same safety net that is in place through the official system if something is to go wrong with the sale
  
  Source: Wallet Pop Canada

Ottawa Housing Market Soars Into Spring!

Looks like spring is off to a fabulous start Ottawa!

Members of the Ottawa Real Estate Board sold 1,499 residential properties in March through the Board’s Multiple Listing Service® system compared with 1,161 in March 2009, an increase of 29.1 per cent.

Of those sales, 327 were in the condominium property class, while 1,172 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.) which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“The spring market kicked off early and strong this year, possibly boosted by the unseasonably warm weather and absence of snow in March,” said Board President Pierre de Varennes. “Inventory is still lower than at this time in 2009, but has begun to increase slightly in recent months,” he added.

The average sale price of residential properties, including condominiums, sold in March in the Ottawa area was $329,767, an increase of 15 per cent over March 2009. The average sale price for a condominium-class property was $240,409, an increase of 15.1 per cent over March 2009. The average sale price of a residential-class property was $354,698, an increase of 15.1 per cent over March 2009. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

This is an amazing start for the 2010 Spring/Summer market. Sales will continue to grow in the next few months!

NOW is the time to buy or sell..

Your Real Estate Professional,

Mary-Anne

Source: The Ottawa Real Estate Board

Make the Most of Green Upgrades

As energy conservation becomes more of a concern for both government and consumers, REALTORS can better serve their clients by knowing more about heating system upgrades and government grant programs for them.

Clients who are interested in upgrading their heating systems can take advantage of the Ontario Home Energy Savings Program and the federal ecoEnergy Retrofit program which provide grants for retrofitting their homes. Homeowners can receive up to a combined maximum of $10,000 from both the provincial and federal government in grant money.

Only homes that have undergone a residential energy efficiency audit by an energy advisor certified by Natural Resources Canada will be eligible for grants under the ecoEnergy Retrofit program. So what’s involved?

Check for Leaks and Drafts: To qualify for federal grants and provincial rebates, homeowners must complete two home energy assessments: one pre-renovation and one post-renovation. Only renovations that begin after the initial assessment qualify. Renovations need to be completed by the earlier of either 18 months of receiving the pre-retrofit evaluation report or by March 31, 2011.

A typical energy audit consists of a walk-through to assess the home’s insulation, heating and cooling systems and other energy uses. The home’s ventilation, leaks and drafts are then identified using a “blower door” depressurization test. An evaluation report is produced and the advisor provides an EnerGuide rating label for the home. The energy advisor will submit the file to NRCan, who will then transfer the file to Ontario to process the audit grant cheque.
Once the audit is completed, the homeowner can choose which (or all) of the recommendations he or she wishes to implement. On completing the renovations, the homeowner should contact the energy advisor to perform the post-retrofit evaluation, and then submit the grant application. The homeowner should receive a grant cheque within 90 days of the post-retrofit evaluation.

All renovations, whether completely by the homeowner or a contractor, should be documented with receipts, photos and product literature to ensure full credit is received. After participating and completing the program, homeowners can register for another eligibility period in the program and continue with additional renovations.

Only energy advisors certified by NRCan and employed by licensed service organizations can conduct energy audits under both programs. Licensed organization can be found on the NRCan website at www.nrcan-rncan.gc.ca

Grants Available: For a list of grants available check www.nrcan.gc.ca

Aside from the rebates (up to a maximum of $10,000), the actual savings from participating in the program depend on the home’s condition and the type of upgrades chosen. Participants typically reduce their energy use by up to 30 percent. This translates into a savings of $450 on a $1500 annual heating bill.

If you ever have any questions feel free to email me at mgillespie@kwottawa.ca

Your Real Estate Professional,
Mary-Anne

Source: Ontario Real Estate College