Welcome to the RE/MAX Waters Advantage! Orangeville Real Estate Blog

Value

Let's think about value for a second.

If I sell you a house for $300,000...

How much is it worth to YOU?

How much is it worth to ME?

Most people would say it's worth $300,000 to both of us.  But is that really true?

If it was, then I would probably hold on to the house, and you probably would not buy it.

The real answer is that the house is worth less than $300,000 to me, and it's worth MORE than that to you.

That's the only way value is exchanged - when the perception of value is different to both sides.

I'm reading a fascinating book called "Killing Sacred Cows" by Garrett Gunderson, and some of the concepts are nothing short of life-changing.  You can read the first two chapters by clicking the link below:

Read Chapters 1 and 2 of "Killing Sacred Cows"

More about the book and Garrett:  KillingSacredCows.com

If I sell you a house for $300,000...

How much is it worth to YOU?

How much is it worth to ME?

Most people would say it's worth $300,000 to both of us.  But is that really true?

If it was, then I would probably hold on to the house, and you probably would not buy it.

The real answer is that the house is worth less than $300,000 to me, and it's worth MORE than that to you.

That's the only way value is exchanged - when the perception of value is different to both sides.

I'm reading a fascinating book called "Killing Sacred Cows" by Garrett Gunderson, and some of the concepts are nothing short of life-changing.  You can read the first two chapters by clicking the link below:

Read Chapters 1 and 2 of "Killing Sacred Cows"

More about the book and Garrett:  KillingSacredCows.com

Are Open Houses an Effective Marketing Tool?

As I was driving home last weekend, I noticed there were a ton of open houses in Orangeville.  Most weekends, there are at least 10-15.

The question I am often asked by my clients is: are open houses effective and will it help sell my house?

The answer is yes and no. Having an open house will create awareness about your property with neighbours and passers by.

Most people don't realize that neighbours can really help you.  The statistics say that 18% of all home sales are the direct or indirect result of a neighbour referring a friend or family member to a house for sale on their street.

The odds are very low that any potential buyers are ready to buy, and secondly the house probably isn't exactly what they're looking for.  The price may not be within their budget and all the terms and conditions being asked by the seller may not be acceptable to them.

So why do some many agents still hold open houses?  Truthfully, in the majority of cases having an open house is of greatest benefit to your agent, not to you.

Your agent gets to meet potential buyers for other homes. Your agent also talks to neighbours who visit your open house who are there to get an idea of what is being offered, since they are also planning to sell their home.

Consider also the risk of having total strangers walk through every room in your house. If more than one person walks in your agent can only keep an eye on one or two visitors. The others are completely out of sight and thefts of personal belongings do happen.

If your home is located on an interior street away from traffic, having an open house may help give it some exposure. The National Association of Realtors has been conducting surveys of buyers and sellers for more than 40 years. Their statistics over the years show that less than 3 percent of buyers find the home they buy through an open house.

Some food for thought!

The question I am often asked by my clients is: are open houses effective and will it help sell my house?

The answer is yes and no. Having an open house will create awareness about your property with neighbours and passers by.

Most people don't realize that neighbours can really help you.  The statistics say that 18% of all home sales are the direct or indirect result of a neighbour referring a friend or family member to a house for sale on their street.

The odds are very low that any potential buyers are ready to buy, and secondly the house probably isn't exactly what they're looking for.  The price may not be within their budget and all the terms and conditions being asked by the seller may not be acceptable to them.

So why do some many agents still hold open houses?  Truthfully, in the majority of cases having an open house is of greatest benefit to your agent, not to you.

Your agent gets to meet potential buyers for other homes. Your agent also talks to neighbours who visit your open house who are there to get an idea of what is being offered, since they are also planning to sell their home.

Consider also the risk of having total strangers walk through every room in your house. If more than one person walks in your agent can only keep an eye on one or two visitors. The others are completely out of sight and thefts of personal belongings do happen.

If your home is located on an interior street away from traffic, having an open house may help give it some exposure. The National Association of Realtors has been conducting surveys of buyers and sellers for more than 40 years. Their statistics over the years show that less than 3 percent of buyers find the home they buy through an open house.

Some food for thought!

The Law of Contrast... and How It Can Affect Your Home Buying Choices

When people visit a home they immediately do three things. They look, compare and contrast.

In other words, they look to understand what is offered... they compare to make sure what they see satisfies their buying criteria... and thirdly, they contrast what they see against what they presently have or other homes they may have just seen.

The law of contrast states that when two items are different, a person will see them as more diverse if they are placed close together.

The use of contrast is based on a person's perception of things that happens one right after the other. For example, if you've had a rotten day because you found out the government was auditing your tax return and you go to the parking lot and find a big scratch on your car, you will have a different reaction to the scratch, if you were having a great day because you won the lottery and then found the scratch.

It's the same scratch, but you will have a different reaction to it depending on what you're personally experiencing at the time.

What I'm talking about is perception. The human mind has to find a benchmark of comparison to make judgments. This happens when a buyer is considering different homes, communities and locations.

The law of contrast applies to many situations in the home buying and selling experience. Here are just a few:

• Contrasting homes;
• Contrast communities;
• Contrast locations;
• Contrast financing programs;
• Contrast amenities;
• Contrast available services.

To experience the law of contrast try this experiment: Fill three buckets with water, one with hot water, another with cold water, and the third with tepid water. Place one hand in the hot bucket and the other one in the cold bucket for thirty seconds. Now place both hands in the tepid bucket and you will feel the law of contrast. The water in the third bucket is considered warm, but to the hot hand it feels cold and to the cold hand it feels warm. It is the same water but two completely different reactions. This is the law of contrast.

Any home, community, location and amenity can be contrasted to appear different from what a buyer has seen by using the law of contrast.  It's important to be aware of this effect when shopping for a home.

In other words, they look to understand what is offered... they compare to make sure what they see satisfies their buying criteria... and thirdly, they contrast what they see against what they presently have or other homes they may have just seen.

The law of contrast states that when two items are different, a person will see them as more diverse if they are placed close together.

The use of contrast is based on a person's perception of things that happens one right after the other. For example, if you've had a rotten day because you found out the government was auditing your tax return and you go to the parking lot and find a big scratch on your car, you will have a different reaction to the scratch, if you were having a great day because you won the lottery and then found the scratch.

It's the same scratch, but you will have a different reaction to it depending on what you're personally experiencing at the time.

What I'm talking about is perception. The human mind has to find a benchmark of comparison to make judgments. This happens when a buyer is considering different homes, communities and locations.

The law of contrast applies to many situations in the home buying and selling experience. Here are just a few:

• Contrasting homes;
• Contrast communities;
• Contrast locations;
• Contrast financing programs;
• Contrast amenities;
• Contrast available services.

To experience the law of contrast try this experiment: Fill three buckets with water, one with hot water, another with cold water, and the third with tepid water. Place one hand in the hot bucket and the other one in the cold bucket for thirty seconds. Now place both hands in the tepid bucket and you will feel the law of contrast. The water in the third bucket is considered warm, but to the hot hand it feels cold and to the cold hand it feels warm. It is the same water but two completely different reactions. This is the law of contrast.

Any home, community, location and amenity can be contrasted to appear different from what a buyer has seen by using the law of contrast.  It's important to be aware of this effect when shopping for a home.

Buying Power of Sales, Bank Sales, Distressed Properties and Foreclosures in Orangeville, Toronto or Anywhere in Ontario...

In Ontario, evicting a residential property owner for defaulting on their mortgage is a legal process known as Power of Sale.

If there is a leasing tenant in a defaulted property, Power of Sales can get complicated. 

Unlike the U.S., Ontario’s laws governing landlord/tenant relationships heavily favour tenants.  If a leasing tenant resides in a mortgage defaulted property, Ontario’s Residential Tenancies Act supercedes other applicable Federal and Provincial property laws.

This Act allows tenants to stay in the property for the remainder of their lease.  There may even be multiple tenants in the property!  If any tenant refuses to leave, a court order is required to force them to leave. 

Investors assessing Power of Sale properties must ascertain if the property currently has tenants or not as part of their due diligence.  It could make a big difference in the amount of hassle and turbulence required to buy the property.

If there is a leasing tenant in a defaulted property, Power of Sales can get complicated. 

Unlike the U.S., Ontario’s laws governing landlord/tenant relationships heavily favour tenants.  If a leasing tenant resides in a mortgage defaulted property, Ontario’s Residential Tenancies Act supercedes other applicable Federal and Provincial property laws.

This Act allows tenants to stay in the property for the remainder of their lease.  There may even be multiple tenants in the property!  If any tenant refuses to leave, a court order is required to force them to leave. 

Investors assessing Power of Sale properties must ascertain if the property currently has tenants or not as part of their due diligence.  It could make a big difference in the amount of hassle and turbulence required to buy the property.

Five Ways to Wow Buyers!

1. Go green. Energy efficient products and household goods are attractive to buyers. Renovations or replacements that help make the house more energy efficient are popular. Things such as better insulation, replacing old windows, caulking, and adding skylights can increase value.

2. Crown molding and wider baseboards. Some homeowners are shy to experiment with this, especially if they live in a small home, but it can be very attractive in any size home. Wider baseboard. The measly baseboard that builders often use doesn’t draw attention. Adding a wider baseboard and a fresh coat of paint makes the room come to life. Also, framing windows and doors helps complete the look of a room.

3. Paint. Faux finishes, accented walls, or even just a little fresh paint on them makes a lasting impression. Choose colours and textures wisely. Don’t get carried away with a colour you love (e.g. purple walls—I’ve seen it in a home for sale). Remember, that you want your home to appeal to the masses. You can always paint your new home purple—and then change it when it comes time to sell it!

4. Improved flooring. Wood, tile, and new carpet can be a showstopper. But if the flooring is chipped, torn, or dirty, you’ll get the opposite reaction from buyers. They’ll think your home hasn’t been cared for properly which could result in a lower offer -- or no sale at all.

5. Add a deck. Adding a deck can add value to your home, especially as we're moving towards the warm summer months. It’s a nice feature in a yard and many buyers are happy to purchase a home that already has a deck so that they don’t have to take on that home improvement project. Going bananas with your deck probably won't realize a great return... but a modest and functional deck can be a big positive for buyers in this season.

1. Go green. Energy efficient products and household goods are attractive to buyers. Renovations or replacements that help make the house more energy efficient are popular. Things such as better insulation, replacing old windows, caulking, and adding skylights can increase value.

2. Crown molding and wider baseboards. Some homeowners are shy to experiment with this, especially if they live in a small home, but it can be very attractive in any size home. Wider baseboard. The measly baseboard that builders often use doesn’t draw attention. Adding a wider baseboard and a fresh coat of paint makes the room come to life. Also, framing windows and doors helps complete the look of a room.

3. Paint. Faux finishes, accented walls, or even just a little fresh paint on them makes a lasting impression. Choose colours and textures wisely. Don’t get carried away with a colour you love (e.g. purple walls—I’ve seen it in a home for sale). Remember, that you want your home to appeal to the masses. You can always paint your new home purple—and then change it when it comes time to sell it!

4. Improved flooring. Wood, tile, and new carpet can be a showstopper. But if the flooring is chipped, torn, or dirty, you’ll get the opposite reaction from buyers. They’ll think your home hasn’t been cared for properly which could result in a lower offer -- or no sale at all.

5. Add a deck. Adding a deck can add value to your home, especially as we're moving towards the warm summer months. It’s a nice feature in a yard and many buyers are happy to purchase a home that already has a deck so that they don’t have to take on that home improvement project. Going bananas with your deck probably won't realize a great return... but a modest and functional deck can be a big positive for buyers in this season.