04 Jan 2017

ALL ABOUT OPEN HOUSE IN REAL ESTATE

Open house in Abbotsford by pervinder khangura realtor is Abbotsford city of BC , Canada

What is an Open House?

An open house is just as it sounds. In the real estate world, it’s an open invitation to potential buyers to come and have a look at the house for sale without making any appointment on the scheduled day.

The realtor puts an open house sign in front of the house for sale so people walking or driving by can come in and make an offer on the house on the spot if they like the house. An open house is not an auction but potential buyers can bid on the house and if the seller likes any one of the offers, he/she may accept it.

Abbotsford real estate agent pervinder khangura

 

Who can do an open house?

A realtor or the owner can do an open house by advertising it in the local newspaper, radio or by distributing flyers in the neighborhood. A realtor may be better in doing an open house than the owner as he/she is a professional, and he/she has better access to real estate marketing tools than the owner. Anyway, there is no rule in who can do an open house as long as the goal is achieved by getting the house sold.

( Advice: Hire a local realtor. Trust me, you will save in the long term by paying him commission )

 

open house in city of abbotsford by pervinder khangura real estate agent

 

How is an open house done?

Real estate agent or the owner will advertise the day and time when potential buyers can come and walk freely in the house. Potential buyers may bring their own realtor with them, who can advise them on pricing the house. A real estate agent may have an advantage over an average homeowner in advertising open house as he/she has access to MLS®, which gives them the ability to reach a higher number of potential buyers. There are some free sites like homeZfinder.com and Zillow which give people access to advertising their open house free of charge. On the scheduled day of the open house, the realtor will install open house arrow signs at the intersections of the main roads close to the house and put an open house sign in the front of the house with balloons to attract potential buyers driving or walking by.

Some real estate agents do a Mega open house by delivering open house flyers door to door and talking to people in the neighborhood by telling them amenities of the house. They will also advertise aggressively on local radio, TV, and the newspaper about the time and attraction of the open house beforehand and create a buzz in the city about the house. Flyer distribution in the neighbourhood gives a great advantage as a local resident may know someone, like their friend or a relative interested in buying in the area.

Abbotsford real estate agent pervinder khangura

 

What is there for a realtor in open house?

First off, The realtor makes a commission if he/she sells the house. Secondly, the more important thing is he/she may get a future client by collecting his/her information by asking them questions about the open house and requesting them to give feedback about the house thus knowing about their taste, the kind of house they are looking for?

If the realtor happens to know the kind of house they are looking for he/she may sell them the house they like.Third, the realtor will get the phone number or email of the clients in the open house to market his/her services to them.

Abbotsford real estate agent pervinder khangura

 

What are the benefits of an open house?

The biggest benefit of doing an open house is the ability to show the house to a large number of potential clients together. Open house is an invitation for potential buyers to walk in the house without an appointment.

Open house makes showings easy instead of booking a showing individually. In case the house is a rental there can be a problem showing because of a bylaw, the tenant has to be notified 24 hours before booking a showing. In some cases, tenants make it difficult to show the house as they are worried about moving out after the sale of the house.

Home showings by appointments are difficult during the holiday season or on a weekend. Weekends are when everybody wants to book appointments as they are off work. Weekends are also the days when kids might want to wake up late, or guest visits, or various other reasons.

The most difficult part for an individual showing is the need to clean the house before the showing. It’s cumbersome especially if the seller has smaller children. Open house is the day when you only clean the house once and show it to the larger crowd.

The open house gives an opportunity to the seller to sell a home at a higher price as there might possibly be multiple offers on the house as an open house has a tendency to create a bidding war situation when the market is going up or it’s a seller’s market. The bidding situation can arise because potential buyers at the open house don’t want to lose the house at any cost.

abbotsford real estate agent

What is the best day to do an open house?

The best day to do an open house is on weekends because people are off work and gone shopping and they may then see an open house sign and may possibly be interested to see the house. There appear to be some investors who watch the market and attend each open house on the weekend as they’re off work. Some people want to see the house to compare it with their own house and get a good idea of decorating their home.

expert real estate agent abbotsford bc canada

 

Preparation to do an open house?

Preparing your house for an open house is important to make it attractive to potential buyers so they make an offer. On the day of the open house make sure everything is tidy and clean. Put stuff away, clean the yard and if needed spend money on house stagers. They may cost you a few thousand dollars, but it’s worth it. Home stagers can make your house look perfect as they are professionals and know all the latest trends in home decoration.

Sometimes the realtor or homeowner may offer snacks and coffee to the buyers to get their attention on the amenities of the house.

Another important step is that sellers must keep all their valuables locked up in a safe or somewhere secret as the realtor may not be able to watch all of the clients attending the open house. Although it’s very unlikely for someone to steal something, you never know who is visiting because everyone is welcome to the house.

abbotsford real estate agent pervinder khangura

 

Buyer comes with an own realtor or not?

Some clients come to an open house without their own realtor. This is a big disadvantage for them as dealing directly with a listing agent may not give them any agency so they are not protected in case something happens during or after the deal.

At the end, the open house has more benefits than the drawbacks.

02 Jan 2017

home evaluation abbotsford

How to do CMA of a house?

Comparative analysis is a method used by realtors and homeowners who want to sell or buy a property by comparing it with other properties in the area. The method used for comparative analysis is to check the active or recently sold listings in the area, which are much like their own.

What is CMA?

Comparative Market Analysis or CMA in short, is used by real estate experts. As mentioned above, it’s an estimated value of your home. Remember, it’s not an appraisal rather a calculated estimated value with realtor tools by providing you a detailed report comparing your property with other properties in the area. This may include Sold listings, Active listings, Pending sales and Expired listings.

What this report contains is the list of Active listings, Recently sold and expired listings within your area. A realtor will try to find a property identical to yours or as close as possible, but sometimes it’s difficult to find an identical property in the area. CMA is purely an estimated value based on the comparables, but it can give you a close idea of the listing or property which you want to buy(in case of a buyer).

home evaluation in abbotsford bc

How is CMA done?

CMA is a subjective way to find the value of your property. It may be limited by comparing properties in your own area but sometimes your realtor may have to go a few miles away to find comparables as he may not find them in your area.

If you or your realtor find a satisfactory home or property compared to your home in your area it’s good! But if not then you might want to search comparables in other areas. The factors to compare are:

Square footage

Number of bedrooms/bathrooms

Type of construction

Age

Style

Neighbourhood

Type of landscape

Lot/Land size

Amenities (Swimming pool / Workshop/ Big garage)

home valuation service abbotsford

Example (comparable)

 House 2 floor 3000 sqft on 6000 sqft lot sold recently for $500,000. This house had 4 bedrooms, 4 Bathrooms, workshop 400 sqft, No garage, Swimming pool, 10 years old, No renovation needed, Good landscape with a vegetable garden in the back. Hardiplank with stones in the front.

(House being compared)

Your house 2 floor 2900 sqft with 3 bedrooms, 3 bathrooms, no workshop, Huge garage, no swimming pool, 10 years old, Renovation needed minor (basement bathroom needs new cupboard) Good landscape, 10000 sqft lot (not sub-dividable) Hardiplank without stones in the front.

CMA

Comparable Compared

$500000 ÷ 3000 = $167/sqft                                                             2900 x $167 = $484300

4 Bedroom                                                                                             3 bedroom    =     -8000

4 Bathroom                                                                                            3 bathroom   =     -6000

Workshop                                                                                               No workshop =    -8000

No garage                                                                                              Huge garage =   +5000

Swimming pool                                                                       No swimming pool =    -10000

No renovation                                                                             Renovation needed=      -500

Lot is 6000 sqft                                                                        Lot is 10000 sqft    =   +25000

Stone in front                                                                            No stone in front   =    -2500

Good landscape                                                                        Good landscape  =        0

10 years old                                                                               10 years old        =        0

—————————————————————————————————————————

$500000 sold price                                                                      CMA                  = $479300

—————————————————————————————————————————

We have taken:

$8000 to build a bedroom

$6000 to build a bathroom

$8000 to build workshop

$5000 to build garage

$10000 to build swimming pool

$500 to put cupboard

$2500 to install stone

$25000 for extra 4000 sqft lot

(illustration only info here can’t be relied upon)

Now from above example, we saw things to consider doing CMA are as follows:

  1. Age and Square footage of the house

  2. Size of Lot/Land

  3. Number of stories of the home

  4. Extra features swimming pool, Fireplaces etc

  5. Location and Landscape

  6. Style and construction of the house

  7. Renovations needed or not

cma free in abbotsford

Now let’s get into details of CMA:

Sold listingsYour realtor may look at the listings sold similar to your house. He will search local MLS© and get all the listings sold within the last six months in your area, but if there is nothing sold in the last six months in your area he may go back one year to find a sold listings or he may go within a few miles around your location to find the sold listings. Then he will sort them out and try to find homes similar to yours. What this does is give the realtor a general idea about the market and what price the homes selling similar to your house are.

Active listingsNumber of active listings are also important but can’t be entirely relied upon. A desperate seller may list their house for less than the actual price for a quick sale as compared to other active listings in the area whose seller wants a higher price thus willing to wait. Market conditions are the main factors deciding the value of your house depending on if it’s a buyer’s market or a seller’s market.

The best way is to compare it with the most recent sale of homes in your area going back weeks or months as similar to your own house.

Pending sales: These are the ones sold but still waiting for subjects to be removed or waiting to clear some other hurdles (like in the case of rental waiting for the tenants to move out, or financing, etc.) before it can be transferred to the new owner.

It’s all confidential information, so only the agent which is buying or selling will know about it. It will become public once the sale is finalized after removing the subjects.

Local realtors are knowledgeable and may have idea about the price of these pending sales, so it’s always a good idea to get a local realtor for buying and selling.

Expired listings: These are important in CMA as it gives you an exact idea why a listing of a particular house was expired. For example, maybe it was listed for a higher price than the market value, or the condition of the property itself.

You may find an expired listing and compare it to your house as it may give you a clear idea about the price of your house and what you may want to list it at.

abbotsford real estate agent free market evaluation service

Gathering data from local MLS:

As an average homeowner, it may be difficult for you to find all the data and try to understand it. You definitely need a professional realtor to explain what it means and where the market is going.

There are also a few real estate websites (Zillow.com, Rew.ca, Trulia.com, homeZfinder.com) which makes your homework easy to get an idea about the value (CMA) of your home. Some of these sites have online tools to do an automatic CMA which makes your life easy.

After gathering all the data, it’s you or your realtor’s choice to dig deep and find your home value as close as possible. It’s not easy work and may take a few hours to a full day to get a good idea about the value of a house.

For a homeowner, it’s a good idea to drive around to look at the house which he is comparing his house with. For a local realtor, it’s easy because he knows the local market and he may have done a showing of that particular house. It’s always a wise decision to let a professional local realtor do CMA.

Many realtors offer free CMA reports.

real estate agents in abbotsford free cma

Age of Construction:

Age is one of the biggest factors in determining the value of your home. Older homes may require renovations and newer homes may be built with new technology with high efficient equipment, energy star rating windows with good insulation, etc.

Older homes may be historic and may have more privacy with a big private backyard, which may contribute to their high value.

Square Feet:

Square feet of the house is important as the cost of building a bigger house is more, but there is a limit to it. The cost doesn’t increase after a certain size. This may be due to a limited number of buyers for huge houses than average homes. The average house between 2100 to 2600 sqft 2 story houses with basement is always in demand and retain its value.

Free market evaluation of a home in abbotsford with swimming pool

Attractions of the house:

Swimming pool, Number of fireplaces, garage, and big workshop are also contributing factors to increasing value of the house.

free home evaluation report for a happy customer in abbotsford

Renovations:

New roof, Windows, Paint, Furnace, Water tank, Flooring are also big contributing factors to increasing value of an older home.

Pervinder khangura

Abbotsford realtor

31 Dec 2016

buy or build new home in abbotsford

Abbotsford is the city of mix types of homes from small Ranchers to huge 6000 sqft mansions. The big homes in Abbotsford are usually in farm area as there is no setback set by the city of Abbotsford. There are several rules have to be followed to build a home in the city of Abbotsford. Those rules are called setback for eq the house can’t go beyond a certain height, Leave certain ft space from the back line of your property and also from the side of the property line. The homes in Abbotsford are also allowed to cover an only certain percentage of the lot size. There are lot more municipal rules to build a home in Abbotsford. More information can be found in the city of Abbotsford website.

Pervinder Khangura Abbotsford realtor

6043001788

26 Dec 2016

abbotsford tdbank martgage

 

 

TD Canada trust bank is the first back announced to increase their mortgage prime rate to 2.85% that is .15 points increase.

Only the people with variable mortgage rates will be affected. Fixed term mortgage clients will remain unaffected. There is no change to Credit lines or any other product.

its hard to understand why TD Canada trust has done this where on the other hand some economists are predicting another rate cut by Bank of Canada. My personal thought on this is that all the Banks are afraid of losing money in the mortgage products as CMHC introduce these new rules for in mortgage business due to this all the banks has to put their own share of money as compared to previously all the risk was CMHC. Banks are not in the business to loose but to use your money and make huge profits.

 

22 Dec 2016

Abbotsford is beautiful city near vancouver

 

Abbotsford is one of the fastest growing city in Canada in Fraser valley region of British Columbia about 50 km from Vancouver with approx 133,000 people as of 2011 census. Abbotsford city comprises majority of English population of 86,660 about 65% followed by Punjabi 24,660 about 18.71% and various other mixed ethnicities.

Abbotsford connects well with Vancouver via road and through railway from city of Mission 15 mins drive from Abbotsford. Rail called West coast express connects to Vancouver. About 62% people living here work here. Most of the remaining 38% commute to Mission, Chilliwack or Vancouver and its suburbs Surrey and Langley. More than 25% of Abbotsford’s workforce commutes to Abbotsford from other municipalities.

Abbotsford city

 

 

Abbotsford has about 95 churches, 3 Sikh temples and a Hindu temple. Abbotsford has the oldest Gurudwara built in 1911 in north America and now it’s a national historic site aged over 100 years old.

Abbotsford is big on agriculture, surrounded by berry farms and one of the major employer here. Abbotsford supplies blueberry, strawberry and raspberry all over the world. There are few lumber mills, manufacturing accommodate large population for employment.
The city has international airport with easy check-ins, short lineups and affordable parking. There are flights going to all over Canada from Abbotsford international airport. The city has impressive sports facilities 4 huge ice rinks with phenomenal sports grounds with skateboard rinks.

 

Abbotsford is beautiful city near vancouver

 

 

There are 46 modern well equipped schools with high education standards with diverse educational programs. Good transportation facilities available for students. Abbotsford has a university offer many courses from bachelor to master’s degree programs and lot of trade programs. Ufv is one of the preferred university by international students.

Abbotsford has three major zones East Abbotsford, West Abbotsford and Central Abbotsford.
Central Abbotsford comprises mix type of accommodation with lot of condos and apartments with lot of single-family homes. There are churches, schools, Sevenoak mall and a beautiful Mill lake park with paved trail goes around two kilometers in the center of town.

The town is next to US border called Sumas-Huntingdon border. You can see mount baker which is 47 km from Abbotsford in US. Mt baker is an active volcano and a famous ski resort. People around the world visit Mt baker for skiing and other sports activities.

 

Farms for sale in Abbotsford

Homes for sale in Abbotsford