Questions and Factors to Consider:
Early in the process of purchasing a new home the question arises – whether to build a new home or purchase a resale home already on the market. Here are some considerations that may help you make an informed decision.
Location, location, location. Are new homes being built in the area? Do you know the surrounding zoning and what will be constructed in the area? How far away are services (schools, stores, hospital, doctors, etc.) that you need? How long is your commute to work?
Investment. Typically, due to the continual addition of features, rising labor and material costs, new homes cost more than similar resale homes. Will you be reuqired to pay significant impact or lot levies or taxes and fees that are imposed on the builder? Are the taxes on the new home much higher than a comparable resale home? Will you be in the new home until the area is built out so you will not be competing with the builders should you need to sell the home? Is the home going to be high priced compared to other homes built (or scheduled to be built) in your area?
Features. Are the style and features that you desire only available in a new home? Can you find a resale home with most of the features and amenities you want? Can you add your preferred features to a resale home? Are newer resale homes available that meet your needs?
Risk. Is the new home builder or developer financially stable? Is the builder a large, well-known company with a good reputation? Is the builder asking for significant down payments or advance payments? Are there complaints lodged against the builder for shoddy work or not making repairs? Has the builder been delivering homes when promised? Check with your Better Business Bureau and talk to homeowners who have purchased a home from the builder.
In summary, a resale home can cost less, be more conveniently located, you know the area and amenities and have less risk involved. A new home can be constructed to have the exact style and features you desire, but usually with much higher costs, limited locations, and more risk.
Once you’ve evaluated the pros and cons of each alternative, you can make an educated decision as to which option is best suited for you. Ultimately, your decision should be based on your needs and wants, your family and/or children, your tolerance for risk and the unknown, and of course, your budget.
If you know of anyone thinking of buying or selling, please be sure to tell them about the Foley Homes Team.
New Homes vs. Resale (Part 3)
April 6, 2010New Homes vs. Resale (Part 2)
April 1, 2010Advantages of a Resale Home:
The major advantage of buying a resale home is that you are moving into an established neighborhood. The lawn is green, shrubs are growing, your driveway is paved and the trees are well enough established to give your street a feeling of permanence. Often, most extras are already present (i.e. appliances, curtains, drapes, central vacuum, humidifiers, decks, fencing, electric garage door openers, finished basement, walkways, outdoor lighting, indoor light fixtures, trees, shrubs, gardens and landscaping, children’s play sets, swimming pool, air conditioning, etc.)
In terms of investment, a resale home will often give you far more value than a brand new home. Many owners put tens of thousands of dollars into home improvements ranging from small projects such as landscaping to major projects, such as a finished basement or any of the items above. Although these improvements may make the home more attractive to potential buyers, they may not increase the market value of the home. A $35,000 swimming pool or a $15,000 finished basement or even $5,000 worth of landscaping may make the home very attractive. However these additional costs incurred may not necessarily increase the market value of a home, especially if you have to sell it at a time of year where these major items do not add appreciable perceived value. The buyer gets the home at its real fair market value, which is based on comparable homes for sale or sold in the neighborhood. All those expensive extras may be included in the home with benefit to the buyer at little or no extra cost. This can be a substantial savings over buying a new home.
With a resale home, the vendor’s asking price is almost always negotiable, whereas a builder’s list price is usually firm. Any extras or changes are added to the list price of a new home, and can add up quickly.
Disadvantages of a Resale Home:
A certain percentage of homes in the marketplace are not considered to be in ‘move-in condition.’ If both live-in purchasers are working at full time jobs, a move-in condition home is by far the best alternative. If the property has been rented for many years the home may require a lot of work, so if a buyer is not handy or does not have the additional up-front capital then buying a home in move-in condition (or a brand new home) is the best option. Additionally, as a home ages, certain systems such as heating, cooling, roofing, and/or windows will need to be upgraded.
While a home that requires some fixing up will require extra capital, it can in fact present some clear cost advantages. Usually, you can purchase these homes below the going market value, while at the same time providing an opportunity to decorated according to your specific preferences.
Buying a resale home presents the opportunity to find out a lot more about the property and the neighbourhood than if you buy a new home. If you are purchasing in a new-home development located on the outskirts of your community, be sure to ask about future access to public transit, entertainment activities, shopping centers, churches, and schools. Local zoning ordinances also should be reviewed. A rather remote area can turn into a fast-food-chain haven within a couple of years. Try to ensure that the neighbourhood, if not strictly residential, will not begin sprawling out of control.
Buying into a new-home community may seem riskier than purchasing a house in an established locale, but any increase in home value depends upon the same factors: quality of the neighbourhood, growth in the local housing market and the state of the overall economy.
This Month in Real Estate (Canada)
March 16, 2010Check this video out — This Month in Real Estate (Canada) : March 2010 http://www.youtube.com/watch?v=FIRGQMZ8Ddo&feature=youtu.be
Brisk February sales keep Ottawa in seller’s market – OREB Market Update
March 9, 2010Members of the Ottawa Real Estate Board sold 1,118 residential properties in February through the Board’s Multiple Listing Service(R) system compared with 787 in February 2009, an increase of 42.1 per cent.
Of those sales, 323 were in the condominium property class, while 795 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.
“Last month’s sales were near the top of the usual range for this time of year, as opposed to February of 2009, which was the end of the brief slowdown we saw in Ottawa’s resale housing market due to global economic conditions,” said Board President Pierre de Varennes. “So far in 2010, OREB Members have sold 1,838 properties, putting us well ahead of the 1,316 properties sold in the first two months of 2009. Inventory remains low and the homes that are listed are selling quickly, keeping Ottawa in a seller’s market for the moment,” he added.
The average sale price of residential properties, including condominiums, sold in February in the Ottawa area was $317,030, an increase of 15.8 per cent over February 2009. The average sale price for a condominium-class property was $265,938, an increase of 30.3 per cent over February 2009. The average sale price of a residential-class property was $337,788, an increase of 15.6 per cent over February 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.
Please don’t hesitate to call Shane to see what he can do for you and your home!
Shane Foley (613) 788-2550
Keller Williams Ottawa Realty, Brokerage
Independently Owned and Operated
Getting a jump start on Spring Cleaning with some indoor Maintenance
March 2, 2010For maximum enjoyment of your home (and greatest resale value) it’s important to keep your dwelling in good repair. Here are some suggested home maintenance tasks you may want to consider adding to or undertaking before your upcoming spring cleaning:
- Remove the drain traps under your sinks and clean them thoroughly. Clean pop-up drain plugs. Inspect the linkage for pop-up drains to make sure they are set properly. To adjust the linkage, squeeze the finger-operated pressure lock to release it and slide it up or down as necessary.
- Inspect grout and caulk around tubs, sinks and showers. Chip out cracked grout and replace missing areas. Stained, discolored and mildewed caulk should be cleaned with TSP (trisodium phosphate) or other household cleaner. If the caulk remains discolored, remove it and replace it with fresh, mildew-resistant caulk.
- Musty closet odors can be reduced or eliminated by removing the closet’s contents and washing walls with a diluted solution of chlorine bleach. In addition, try replacing solid doors with louvered doors. Note: If the mustiness is the result of moisture, find the source and correct it; otherwise the problem will be ongoing.
- To keep valves from sticking and check for leaks, turn all water valves off and on. This includes outdoor faucets and valves to toilets, bathroom and kitchen sinks, laundry, bar, etc.
OPEN HOUSE Sunday FEB 28th 2-4
February 24, 2010All-brick 3 bdrm bungalow on a magnificent 191 ft deep lot in mature neighbourhood of Cardinal Heights. $319,000
34 Seguin Street – off Blair at Montreal Rd.
See Listing Details and Virtual Tour:
http://www.shanefoley.ca/Listings/Listing_Details.asp?ID=100154
SHANE FOLEY
Sales Representative
Direct: 613-788-2550
shane@shanefoley.ca
Home Renovation Tax Credit – Get Yours by February 1st!
January 18, 2010The Home Renovation Tax Credit (HRTC) will provide $3 billion of much-needed fiscal stimulus and encourage investments in Canada’s housing stock – but only until February 1st, 2010!
For a limited time, the Home Renovation Tax Credit (HRTC) will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009, and before February 1, 2010. Properties eligible for the HRTC include houses, cottages and condominium units that are owned for personal use.
Renovation costs for projects such as finishing a basement or remodelling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses. The 15-per-cent credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350.
Examples of Home Renovation Tax Credit eligible expenses include renovating a kitchen, bathroom, or basement; new carpet or hardwood floors; building an addition, deck, fence or retaining wall; a new furnace or water heater; painting the interior or exterior of a house; resurfacing a driveway; and laying new sod. Home renovations are smart investments in the value of a home and can also reduce energy consumption and long-term home-ownership costs.
For additional information, please visit:
Home Staging – What It Is & Why It’s Important
January 15, 2010Home Staging imaginatively transforms even small spaces into inventively attractive and productive areas to maximize your home’s worth. Home staging prepares your private residence for sale, with the goal of making your home appealing to the highest number of potential buyers and selling your property more swiftly.
Home staging techniques focus on improving a property’s appeal by transforming it into a welcoming, attractive space that anyone might want. Home staging can increase the value of a property by reducing the home’s flaws, depersonalizing, decluttering, cleaning, improving its general condition, and upgrading landscaping.
For vacant homes, prop or staging furniture is used to create a living space where the buyer can imagine themselves living. Well-executed staging leads the eye to attractive features while down-playing imperfections.
Although the marketplace determines the price range your house is in, staging your home allows you to determine where your house falls in that range. The most important timeframe for selling your home is the first 30 days, because the first two weeks on the market is when buyers curiosity is high, interest is generated, and brokers & agents tour the newly listed homes.
Staged homes sell faster, look better than other competing homes for sale, present better in print (and on the internet), and are appreciated by potential buyers as homes that have been well-maintained. As well, staged homes are listed and appraised higher in many cases, and often sell for more money!
Shane Foley’s personal recommendation for your home staging needs is Home Staging Specialist Kelly Howe, ASP, IASHP.
Visit her website at: http://www.howehomestaging.ca/
We Are Here For You with Social Media!
January 13, 20102010 has arrived and here at Foley Homes our Team is looking forward to serving you and help you with your real estate needs throughout Ottawa and surrounding areas!
We are pleased to announce our social media presence, which gives us another opportunity to connect and communicate with you!
Why Social Media, you ask? It provides us an additional way to work, play, and collaborate online.
Consider this: LinkedIn.com has 50 million users worldwide and they are growing that figure at roughly one new member per second. LinkedIn allows individuals to create and manage their professional identities online. They can reconnect with former colleagues and develop new relationships, enabling them to create and collaborate with a network of trusted individuals. When LinkedIn launched in 2003, it took 477 days (almost a year and four months) to reach their first million members; the last million took only 12 days. http://ca.linkedin.com/pub/shane-foley/16/244/89b
Twitter – 11% of online adults use Twitter or update their status online, and since Twitter users can be mobile, they are less tethered by technology. Twitter.com is a top 500 site that attracts new users at the rate of about 8 million new users per month, and as of September 1st, the actual number of live Twitter accounts was just above 50 million. http://twitter.com/shanefoley
These stats show that social media is a powerful vehicle for connection, and we invite you to link to us as part of the Social Media universe… here are my links again: http://ca.linkedin.com/pub/shane-foley/16/244/89b http://twitter.com/ShaneFoley
2009 a record year for resale home sales, despite slow start
January 11, 2010January 6, 2010 : 2009 a record year for resale home sales, despite slow start
Members of the Ottawa Real Estate Board sold 689 residential properties in December through the Board’s Multiple Listing Service® system compared with 467 in December 2008, an increase of 47.5 per cent. This brings the total number of residential properties sold through the Board’s Multiple Listing Service® system in 2009 to 14,742, up 7.4 per cent from 2008 and setting a new record. The previous record of 14,565 sales was set in 2007. The average price for all of 2009 was $303,888, an increase of 4.9 per cent over 2008.
Of December’s sales, 185 were in the condominium property class, while 504 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.
“Ottawa’s housing market felt the chill of the global financial crisis last winter, but sales warmed up even before the spring weather arrived, and over the course of the year Ottawa had five record-breaking months of sales. Listing inventory was at a low level throughout 2009, which led to many multiple-offer situations,” said Board President Pierre de Varennes. “Ottawa’s housing market bounced back very strongly from its brief downturn, and we ended the year ahead of the previous annual sales record, which certainly no one expected back in January,” he added.
The average sale price of residential properties, including condominiums, sold in December in the Ottawa area was $307,807, an increase of 13.1 per cent over December 2008. The average sale price for a condominium-class property was $246,062, an increase of 17.9 per cent over December 2008. The average sale price of a residential-class property was $330,471, an increase of 12.8 per cent over December 2008. 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.
Courtesy of the Ottawa Real Estate Board: http://orebweb1.oreb.ca/news_release.shtml
