Real Estate Talk:
Prep in August, sell in September
Preparing your property now to sell in September
By Joseph Marovitch
Updated July 31, 2019
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: Client/broker protocol when visiting a property
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Have a great week!
State of the market
According to the Canadian Real Estate Association, new home sales across Canada are slowing down and the market appears to be stabilizing with modest increases in pricing.
This does not appear to be the case in Montreal where the economy is doing well due to low interest rates and low unemployment. The other factor is that there is a shortage of inventory. Our demand remains high while our supply is dwindling. All indications are that real estate prices will continue to increase. This appears to be the case across the board with detached homes, condos and commercial/industrial space.
‘… this is an opportunity to purchase property, whether it creates current income or not, and simply hold the property until there is no more space to build and prices skyrocket, then invest off-island.’
With a growing economy there are more business start-ups and expansion for growing companies. The problem is a lack of industrial space. This means sale prices will rise and rents for commercial industrial space rise as well. Once again, Montreal is running out of space while its economy is attracting investors. Low supply and increasing demand equals rising real estate prices. Do not be surprised if Montreal becomes a re-seller market only in five to ten years.
For a savvy long-term investor, this is an opportunity to purchase property, whether it creates current income or not, and simply hold the property until there is no more space to build and prices skyrocket, then invest off-island.
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 firstname.lastname@example.org