Where do buyers come from?

There's an old saying that says there's a perfect match out there for everyone - and that goes for home buyers and sellers too! The right buyer is out there, but it takes time, expertise and resources to put them together with the right seller to make the sale.

Real estate professionals know that there's a lot more to selling a home than just putting a sign on the lawn and waiting for nature to take its course. There are many other sources of buyers, and a good real estate salesperson will utilize several different marketing approaches to find potential buyers. According to the National Association of Realtors (NAR), a US-based trade organization, agents used the following methods to attract buyers to their listings last year:

That's where your real estate representative finds buyers, and it's interesting to note that the picture is changing. Over the last few years, the Internet has become an increasingly important tool used by home buyers in their home search. In fact, a 2003 NAR survey of home buyers showed that 71% of buyers used the Internet at some point in their search for homes, compared to only 41% in 2001. Those buyers who used the Internet were generally younger and earned more (38 years old, household income $70,700) than their non-Internet using counterparts (47 years old, $56,300). Internet searchers were more likely to have at least two earners in the household and have children residing in the home.

However, perhaps the most interesting statistic of all was that 89% of Internet searchers used a real estate agent. Also of note was that despite the fact that most started their search on the internet, 41% of homebuyers first found out about the home they actually purchased through an agent. So what does all this mean to you? Simply that, although more and more people are using the internet in the early stages of their property search - particularly affluent, younger buyers -- buyers still need the help of an experienced and knowledgeable real estate professional to help them evaluate the wealth of information that's available, and to guide them throughout the complex real estate transaction process.

You see, the more information that's available, the more you need a skilled Coldwell Banker real estate professional to help you interpret that information, and help make your home ownership dreams a reality.

A Good Salesperson is a Good Listener

Whenever you want to buy or sell real estate, your first step is usually to seek out the assistance of a salesperson. A good one can produce success and a positive experience. A bad one... well, let's not even go there. So, what are we looking for in trying to find the perfect salesperson? The first step is to realize that he or she does not exist! Granted, there are many excellent salespeople out there, but perfection is only in the eyes of the beholder - and each client wants something different. What suited your Uncle Fred may not necessarily be the best fit for you and your individual needs. When it comes to finding the right salesperson one size definitely does not fit all. But, don't despair. There are lots of excellent salespeople out there and while they may look different, they have some surprisingly common characteristics or habits.

Not so long ago, anyone who was a fast talker or a great real estate conversationalist was assumed to be a born salesperson . Today, salespeople must also be good listeners . That doesn't mean that they can't hold their own in a conversation. It's just that they recognize there are two sides to being an effective communicator. For instance, does your salesperson ask you, the customer questions? Only by asking can they find out what you want, when you want it, and where. You see, all of us have slightly different needs. Listening uncovers those needs. Hence, listening is the most important attribute and often the most overlooked attribute of a good salesperson. Coldwell Banker real estate professionals have developed listening skills into a fine art. It's the pivotal element in a unique marketing system called Ultimate Service®.

Of course, besides listening, salespeople have to be able to perform once the client's needs have been uncovered. That's where drive', discipline, and expertise come into play. When you find all those good things, you have an excellent salesperson. And, when you find someone who has that extra empathy or chemistry with you, then you have found your perfect salesperson, not the perfect salesperson, which really does not exist.

Good Service Changes With The Times

When it comes to providing good service to homebuyers and sellers, there are some proven constants that will never change. Good service is all about listening to your customers. That's the first step in understanding their individual needs and customizing a real estate service offering that's designed to meet those needs. It's about consistently satisfying customer after customer, and building a proven track record of success that assures even your newest customer that they can trust you to keep your promises. That's the kind of outstanding customer service that never goes out of style. In fact, here at Coldwell Banker Canada, we have a name for that kind of service - we call it Ultimate Service®.

Yet, while caring, personal service will never go out of style, the ways in which a real estate company delivers that service need to change with the times. There's an old saying that says "Nothing is permanent except change." This is especially true of today's real estate profession. Today, new developments in user-friendly technology and value-added services that extend beyond the transaction have combined to offer new service options never before available to customers.

On the technology front, the Internet has revolutionized how homebuyers search for homes. With Coldwell Banker Canada, an international database of thousands of homes can be accessed by visiting our award-winning website www.coldwellbanker.ca. Homebuyers can use our online property search engine, "Personal Retriever" to get your home search on the fast track. Personal Retriever lets you enter your personal "wish list" of home features, then instantly reviews it against thousands of listings as they come online, and emails you every time it finds a match - complete with pictures.

Homebuyers can also take advantage of Ultimate Tours. Previewing homes for sale has never been so easy, with 360° room-by-room views available online, at your fingertips. You do the preview online, and visit only those homes that merit a closer look. The Ultimate Tour technology also benefits home sellers, since it exposes your property to thousands of potential buyers, and helps to qualify prospective buyers in advance. If they've seen your home online and want a closer look, you know that your visitors are serious buyers.

Today's sophisticated consumer not only wants convenience, they want value. Coldwell Banker Concierge"! is a special customer program that offers a hassle-free way to handle all your home-related needs. This program can help relieve the stress of buying and selling a home, with one-stop-shopping and special offers from a broad range of proven, trusted suppliers. A complete listing of Coldwell Banker Concierge service providers is posted at www.coldwellbanker.ca

Call us today and find out how timeless service still changes with the times.

Home Insurance - Know What You Are Buying

When you're buying a home it can be a hectic time, full of details that need attending in a short period of time. One of those details is arranging for the insurance on your new home and its contents. It's a necessity to have home insurance in place on the day you take ownership, to ensure that your investment is protected.

Start out by checking with your lawyer about the existing home insurance on the property. In the adjustments at closing, it's typical that the home insurance on the property will be cancelled, and it's your responsibility to arrange for new insurance with the carrier of your choice. Your lawyer can confirm whether this is the case, and that no insurance benefit is transferring to you upon closing and therefore no expenses are being incurred by you.

Surprisingly, a good starting point in looking for your new home insurance can be your real estate company. Some of the more progressive real estate companies, such as Coldwell Banker, have forged alliances with other national companies to offer special benefits to their customers. With these programs, your status as a real estate customer entitles you to special discounted or group rates on home- related services, such as insurance. However, all programs are not alike, so weigh the features carefully. The better homeowner insurance programs will also offer additional customer perks such as a customer assist Helpline that can also provide you with quotes over the phone or online in a very short matter of time, so comparison shopping is easy and convenient.

Every homeowner wants to enjoy the peace of mind that home insurance offers. How to be sure that you're getting good value for your money is another question especially when it's hard to find the time to investigate different alternatives. When comparing one company's quote against another, make sure that you are comparing apples to apples , i.e. that all the variables are comparable. For instance, what is the deductible amount that you must pay before the insurance kicks in? What is the maximum value the company has allowed for the replacement of the house, the garage, and the home's contents? How much is allowed for living expenses if you have to live outside the home while repairs are being made? What are the policy's exclusions? Read the fine print first.

Some people are surprised to learn that simply by choosing to work with one real estate company over another, they can qualify for special customer services or discounts. When money is tight and time is at a premium, why not take advantage of proven performers that can save you time and money on a variety of moving related expenses? If you'd like to know more about Coldwell Banker Canada's alliance programs, ask your real estate professional, or visit our website at www.coldwellbanker.ca and click on "Coldwell Banker Concierge" for a complete listing of partner company programs.

Carrying Costs vs. Closing Costs - What Homebuyers Need To Know

When looking to buy a new home, there are many costs to consider -- moving costs, legal fees, and even re-decorating expenses. There may also be additional costs associated with leaving your existing residence, such as lease penalties,
or mortgage discharge fees.

One of the areas where homebuyers most frequently run into problems is with closing costs. Homebuyers often do not properly anticipate the costs associated with closing a real estate transaction, and the resulting cash crunch can add stress at a time when you need it least.

In addition to your down payment, there are many other expenses that must be paid on closing day before your home purchase can be completed. Closing costs are typically one-time-only charges that are required to complete -- or close -- the transaction. These costs may include inspection fees, appraisal fees, title search, lawyer's fees, and applicable taxes, such as GST. An important component of closing costs is your proportionate share of property taxes, utilities etc. that may have already been pre-paid by the vendor. You should expect to reimburse the vendor for those costs associated with the period following your closing date.

There may be other costs that will be necessary to complete your transaction, such as the cost of a property survey. Your Coldwell Banker sales professional can help you estimate closing costs before you commit to an offer to buy a home. In some circumstances, your real estate representative may even recommend spelling out the terms for some of the expenses to be incurred within your offer to purchase. Good preparation can help make your closing day trouble free.

Carrying costs, on the other hand, are those expenses that are routinely incurred for the ongoing operation and upkeep of your home. These costs include such items as your mortgage payment, property taxes, heating costs, home insurance, utilities, maintenance costs, etc. Your Coldwell Banker sales representative can help you estimate many of these costs from the information on the listing. Your mortgage payment is another cost that can be estimated prior to making an offer to purchase. Again, your Coldwell Banker professional can be a helpful source of creative financing information, and can even help you pre-qualify for the loan.

Coldwell Banker customers also qualify for a program that helps relieve the stress of buying a home with one-stop shopping for a full range of home-related services. The Coldwell Banker Concierge program puts you in touch with proven, trusted suppliers who can save you time or money and help you with your all home-related needs. It's just one more way that Coldwell Banker offers Ultimate Service to our customers.

When Do I Make A Conditional Offer?

In today's hot real estate market, many prospective buyers are questioning whether a conditional offer can impact the potential success of their home purchase. While there's no one right answer to this question, it generally depends on what specific conditions are contained in the offer. Some conditions may be simple or short-term, such as requiring a home inspection or the approval of financing. Since these conditions are commonplace and shouldn't tie up the property for long, they normally don't have a major impact on the negotiating process. An exception to that rule would be when you're competing against another bid in a multiple offer situation. Then, every detail can make a difference.

In a hot market, you want to make your offer as attractive as possible and you can do this by minimizing the number of conditions present. One of easiest ways to do this is by pre-qualifying yourself for a mortgage, thus eliminating the need for a condition to allow time to arrange for appropriate financing. You're already going into negotiations knowing exactly what amount of mortgage you qualify for.

If you're thinking of making an offer conditional upon the sale of your current home, that can be a challenge. Even in a good market, this condition could easily be in effect for a long period of time. If you don't price your home smartly, there's even a real chance that your present house won't sell, so the condition won't be fulfilled. In a hot market, a seller normally won't be eager to agree to a condition that holds their house at an agreed upon price and terms, for a specified period of time. If the condition isn't fulfilled by the end of that time frame, the offer expires and the buyer is under no further obligation. Offers conditional on the sale of an existing property solely benefit the buyer and can be a tough sell in a good market. You'll require a very effective salesperson to help you negotiate such an offer successfully.

If you do decide on a conditional offer, and it's accepted, remember that the homeowners are still free to continue marketing their property to other buyers. While the homeowners cannot accept another conditional offer, most agreements have an escape clause that allows the homeowner to accept a firm offer, unless you firm up your offer first. This means you remove all conditions and agree to be bound by the terms of your agreement. The original selling price and terms of the offer stay in effect, regardless of what the homeowner may have been offered by another party. The escape clause keeps the heat on you to make every effort to sell your home and fulfill the condition in the shortest possible time.

An alternative would be to list your existing home for sale first. Then you know what the proceeds from that sale are and what funds you can commit towards the purchase of your next home. Your Coldwell Banker sales professional can help you weigh the options to decide on the approach that's right for you.

Listing or Buying - What Comes First?

Right now, much of Canada is in a red-hot real estate market, and we're seeing the characteristic patterns that go with it. The inventory of attractive listings in many markets is lower than we've seen in some time. Buyers are aggressively going after properties, sometimes paying record prices for the few attractive, well priced homes on the market. This kind of hot market is good news for the seller, while buyers often find their choices are limited. Homeowners who want to sell their existing home and buy a new one are asking what they should do first in a hot real estate market.

Unfortunately, there's no one right answer to that question. However, while each situation is different, there are some common factors to consider that may help you make the right decision. When demand is higher than the supply of housing, the resulting seller's market often brings buyers who are quick to make an offer when they see something they like. Also, their first offers are often quite good ones, since they don't want negotiations to drag on until another prospective buyer enters the picture. Your Coldwell Banker real estate professional can help you price your home smartly to take advantage of this market and ideally, your home will sell at a good price within a short window of time.

However, if your home does sell quickly, it doesn't necessarily mean that you have to leave it quickly. Your agreement of purchase and sale will specify your transaction closing date. While this date is typically sixty or ninety days from acceptance of the offer, you are free to choose a closing date that's much later. Again, since it's a seller's market, your buyers will likely be agreeable to your timing, since their primary objective is to get the house. That gives you additional time to find a house that's right for you, and you'll now be going into that process knowing exactly what proceeds you'll net from the sale of your existing home.

Selling your existing home first helps keep your offer to purchase your next home as clean, simple and attractive as possible. By eliminating the need for a condition to allow for the sale your existing property, you've removed any fear the seller may have about holding up the sale for a prolonged period of time, or the very real chance that the condition may never be fulfilled. Going in with a firm offer puts you in a much better position to negotiate the sale of your next home than you would with a conditional offer.

Your Coldwell Banker real estate professional can counsel you on the pros and cons of buying or selling first, and can help you to make an informed decision.

Let's Get Impersonal

When guests come to visit, most of us go to great effort to have our home looking its best. However, when you're showing your home to prospective buyers, many sellers forget that in this situation, you've got a totally different objective. You're not trying to create a personal impression, showing mementos of your life's experiences and a decor that's a reflection of your own personality. When selling your home, it's time to get impersonal! This time, your goal should be to create a blank canvas - a setting where potential buyers can easily visualize placing themselves into the picture you've created.

When setting the stage, you'll want to appeal to broadest possible audience, and that means making the choices that virtually everyone can live with. A fresh coat of paint may be in order. Consider light, neutral colours such as cream, taupe, sand or sage - to create an open airy feeling and help buyers visualize their own furnishings fitting in perfectly. Don't be insulted if they don't like your burnt orange carpet. It may look great with your brown leather chair, but they're probably picturing how it will look with their purple and pink couch. It's all a matter of taste, after all.

One of the simplest and easiest things to do to set the stage for selling is to reduce the clutter, particularly with very personal items. Pack up most of the family pictures, and such things as plaques, trophies, photo albums, the kid's artwork, treasures , etc. You've heard of turning a house into a home. Well, now it's time to reverse the process and turn the home back into a house. Take a look at furnished model homes for inspiration. You'll see the look is sleek, open, airy, uncluttered, and above all, impersonal. This look is your goal.

If the task of de-personalizing seems overwhelming, just think of it as the first step in the moving process. Start your packing now, and begin with those treasured family mementos that are most personal to you. Before you know it, you find that you've cleared out a lot of confusion, leaving just a few quality pieces, which will now be showcased to better advantage. Less is definitely more when it comes to home showings. If the task still seems too large, remember that there are many types of professional help you can call on now, including packers and home staging experts. You don't have to wait until moving day to call in reinforcements.

Your Coldwell Banker Sales Representative can also be a great source of information - with many successful sales to their credit, they know what buyers are looking for, and what sells.

For Sale By Owner

Although the vast majority of real estate that's traded in Canada is done through organized real estate boards, there are still some cases where the homeowner tries to take on the complex task of selling their home by themselves. This scenario is called a For Sale By Owner, or FSBO (fiz-bo) as it's known in the trade. The homeowner focuses solely on the idea of saving what they perceive to be a large commission, making the assumption that this approach will help them come out ahead on the transaction. They lose sight of the many ways that it pays to use a professional sales representative. In actual fact, this tunnel vision approach can end up costing the seller far more than any commission they save.

A real estate professional can market your home to a vast number of potential buyers in a variety of ways. There's a lot more to marketing a home than simply placing a sign on your lawn or an ad in the paper. Targeted direct mail, posting on board listings, internet promotion, referral networks, newsletters, community events, and open houses are just some of the elements your Coldwell Banker real estate salesperson may use in developing a customized marketing plan that's right for you. And by showcasing your property to a far greater number of prospective buyers, you stand a far greater chance of selling your property at a price and terms that are better for you. Cutting yourself off from these prospects simply cuts down your chances of getting the best possible price for your home.

Have you ever stopped to consider why a homebuyer might be motivated to purchase a home that isn't marketed through a professional real estate broker? After all, the property isn't being marketed by a company that's well versed in the process and is fully aware of the rights and obligations due to the buyer. Instead, it's being marketed directly by the homeowner, an individual who due to their own personal interests or their lack of experience may not represent the property accurately. So why then would a homebuyer want to deal with a FSBO? Simple! They are trying to save the commission too. So, if both the buyer and the seller of a FSBO are trying to save the same commission dollars, who really wins?

Remember, as a seller working with a real estate professional, you are in the driver's seat and you pay only for results. If your home does not sell at a price and terms that are agreeable to you, then you pay nothing. The real estate agent absorbs all the costs incurred while marketing your home, including advertising, signage, posting on the Internet, MLS® fees and more, regardless of the outcome. All things considered, it's not what you pay in commission that really matters, it's what you come away with as your net profit after the sale is complete.

Setting The Right Closing Period

You've decided to sell your house, and you're attending to all the many details necessary to make your home appealing to prospective buyers. Most home sellers pay a lot of attention to their home's appearance so that it will yield the best price possible. Then, when it comes time to prepare the listing, deciding on the list price is certainly one of the most critical decisions that you can make. With some expert counseling from your Coldwell Banker sales professional, you want to choose a list price that is appropriate to today's market, consistent with your financial goal, yet at the same time is competitive enough to attract many prospective buyers to view the property, and ultimately make you an offer. Yet while a home's location, appearance and list price are key factors in your home's buyer appeal, there are other factors in your listing that can also have value including the closing date.

As with most things in real estate, there isn't just one right answer as to what is the right closing period. This question will first come up when you prepare the listing agreement with your sales professional. As with all the other aspects of your listing, you want to choose a time frame that will have the most appeal for the greatest number of potential buyers. A ninety-day closing period is typical for resale homes, although sixty days is not uncommon. A ninety-day closing period provides ample time for your buyer to arrange financing, for the necessary legal searches and other requirements to be met, and for you to arrange for your next move as well.

Even if your situation will allow for it, you should be cautious of specifying a closing period for an unusually short period of time. Listings that offer a 30-day closing may have some extra appeal for a few buyers, but they also telegraph a message to all prospects that you are most likely anxious to be out of the home quickly. That could lead buyers to make the assumption that you've already bought another property, and have been unable to sell your present home for the price you were asking. Whether that's the case or not, when a buyer believes that they're in a stronger negotiating position, it may ultimately result in a less attractive offer than you might receive if they believed your home is in demand. If you're hopeful for a short closing period, it can often be more effective to have the listing specify that the closing period is negotiable . That way, a prospective buyer making an offer will typically add the closing date that's most convenient for them, and that makes your property all the more attractive. Leave it to your sales professional to try to steer the offer the way you want it behind the scenes.

A final word about the closing period specified on the offer make sure that before you sign your name to any offer that you've discussed the closing period with your lawyer first. Remember, it's not just a matter of how much time you'll need to pack up and move your lawyer needs time to complete tasks too!