Real Estate Talk:
Prep in August, sell in September
Preparing your property now to sell in September
By Joseph Marovitch
August is the perfect time to prepare a property to sell. Summer is still upon us and the colours of the property are bright and vivid for pictures. Preparation in August also allows for a beautiful showing with the fall changing of the leaves. However, the property must be checked for apparent issues and cleanliness. An attractive property will bring more buyers, sell quicker and bring a higher price.
When I say apparent issues, I mean issues that can be easily seen by buyers and easily repaired or upgraded by the seller. Major repairs and renovations are always performed after the property is purchased, not when selling. Upgrading or adding an additional bathroom to the house will not necessarily get the seller more money, neither will upgrading the kitchen when selling, unless the property sells quickly after the renovations are performed.
Major repairs and renovations are always performed after the property is purchased, not when selling.
If the seller purchases a new kitchen for $80,000 and the house does not sell for eight months, the seller has spent the money on the kitchen plus all the carrying costs of the house such as maintenance, taxes and insurance. The seller may have acquired more money on the sale but has spent almost as much in the time it took to sell. Major renovations should be the buyer’s responsibility.
Then there are cosmetic apparent renovations required and those are the ones a seller should address. If the banister on the front steps is made of rod iron and the paint is peeling, it should be stripped and painted. If the house is dull and can use an exterior coat of paint, do it. If the front and back yard require a grass cutting, do it. Whatever is outside the house and is not a big deal to upgrade or repair should be done. The first impression is either the last impression or the step to the next impression. Either the buyer will walk-in, or walk away.
‘Whatever is outside the house and is not a big deal to upgrade or repair should be done.’
The interior of the house should be as attractive as possible. Get rid of clutter. Rooms should be clean and as spacious as possible. If you have items that can be thrown away, throw them away. You Got Junk should be on speed dial. If your property is full of antiques that you don’t want to keep, call an antique dealer and sell them. Donate what you can.
If you still have stuff that you just cannot throw away, pick the least attractive room in the house and use it for storage. All other rooms should look clean and pristine, spacious and inviting. The house should look like someone lives in it and it is ready for guests.
‘The interior of the house should be as attractive as possible. Get rid of clutter. Rooms should be clean and as spacious as possible.’
Major issues such as foundation cracks, broken window seams, a bumpy cracked driveway or a broken lining in a fireplace, should be considered well in advance of placing a property on the market. The seller must consider if he want to go through the effort and expense of repairing the issue or simply declaring the issue in the listing and adjusting the price of the property accordingly.
Next topic: The importance of an accurate listing in residential and income property sales. How one inaccuracy can stop the sale and discredit the seller.
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Have a great week!
State of the market
Home sales in Montreal hit a record high in May while at the same time new construction has slowed down according to the CMHC. 5,303 homes sold in May, an increase of one percent according to the CMHC. Of the 5,303 homes that sold in Montreal, 367 sold over $1 million in the first five months of 2018. Montreal is catching up to Toronto, Calgary and Vancouver.
As I said previously, condo sales have also increased. Much of this increase can be due to the fact that many people believe Montreal to be a very stable and growing economy compared to the rest of the world. It is a seller’s market both in condos and semi-detached homes and detached homes. The market is an opportunity for downsizers to cash out and condo owners to make money.
It is also a time for those interested in income property to invest. For those who cannot or do not wish to purchase a house or condo due to low supply and increased pricing, they must live somewhere. Therefore, income properties are in demand and the new trend is high-end income property. Buy, renovate and rent is the key.
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Read also: Real Estate Talk: Back to sales in September
Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible to, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or email@example.com