OVER 10 YEARS EXPERIENCE IN CALGARY

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Overview

Buying and selling in todays rapidly changing Calgary Real Estate Market can be risky, stressful and when done right, it can be rewarding and memorable.
Jesse Davies & Associates has over a decade of experience in helping Buyers and Sellers in Calgary. This page is meant to help answer questions we have encountered over the years of helping our clients. Let us help navigate you through the experience as well. We are here and happy to help!

BUY QUESTIONS

As a top producing real estate agent with over 10 years of experience, what is the best piece of advice you can give to first time home buyers!
I can remember purchasing my first home and I can also remember doing my first deal both of which came with a lot of nervousness, excitement and risk. This being my 11 year helping clients purchase their first homes the #1 thing I can recommend to them is to hire an experienced agent that can relate to them and wants to work with them. I see so many real estate agents that push lower budget or first time buyers to the way side, make sure you work with an agent that values your business can relate to your situation and can have fun doing it with. Remember buying your first condo or home will only happen once so make it a memorable one. If you thinking of purchase your first home or condo give me a shot I promise to make it a memorable one for you to remember for many years to come.
Is now the right time to buy?
Whenever my buyer clients ask me this, I normally need to assess a few things about their particular situation. First, have you been pre-approved for a mortgage? With the new mortgage rules, stress tests and interest rate increases, it is imperative to know what is the max purchase price that your mortgage broker has confirmed you at. Just because you are pre-approved at a certain price does not mean you need to buy a home at that price, if you are uncertain about the Calgary market and or your job, this can get you into trouble down the road if you were to buy a home at your max pre-approved price. With interest rates on an upward trend, home prices on a downward trend, there is no crystal ball as to what is going to happen to the Calgary economy, but I am a firm believer in the quote “buy real estate and wait - don’t wait to buy real estate”. History has proven time and time again that if you are holding a real estate asset for more than 5 years, your chances of the value going up are a lot greater than it going down, especially if you get the right advice from your realtor on location, functionality and re-sale value. The Calgary market has been in a lull the last few years and 2019 started off no different with the condo market really taking a beating, we are now seeing this downturn spread to the detached market with record levels of inventory and record low sales. If you’re a firm believer in how beautiful the city of Calgary is and the likelihood of migration from other countries and provinces, the market will come back as we adapt and ween ourselves off being so dependant on the oil and gas industry. Having said that if oil were to ever make a run back up I think the returns would be huge. Contact me today to discuss your particular situation and lets navigate our way through helping you make an informed decision if now is the time to buy.
When previewing a home in Calgary, what should I look for?

In addition to comparing the home to your minimum requirements and wish lists, consider the following:

  • Is there enough room for both the present and the future?
  • Are there enough bedrooms and bathrooms?
  • Is the yard large enough?
  • Do you like the floor plan?
  • Will your furniture fit in the space?
  • Is there enough storage space?
  • Imagine the house in good weather and bad, and in each season. Will you be happy living there year-round?
What is title insurance?
Title Insurance is similar to a standard insurance policy and serves many purposes, for example:
  • Protecting against title defects or encumbrances that were unknown and undiscovered at the time of closing
  • Reducing the risk of title fraud
  • Protection against identity theft and mortgage fraud

Title Insurance is available when purchasing a new home, a resale home or at any time during the ownership of a property to safeguard your home. The effects of title fraud are serious and long-lasting. The cost to correct or reclaim your title can amount to thousands of dollars in legal fees and can cause significant financial and emotional strain for many years.

Jesse Davies & Associates are here anytime should you have any questions regarding Title Insurance and all other real estate matters.

Here is an example of a situation that would warrant title insurance:

After moving into an existing home, Max receives a notice from the municipality requiring him to obtain a building permit for a family room addition the previous owner built without a permit. Max hires a contractor to inspect the addition. The inspection report recommends the demolition of the addition. Title insurance may cover the cost of demolition and the loss of property value or the cost of reconstruction
Should I get pre-approved before I begin my search for a home?

Yes, getting pre-approved for a mortgage is always the first step in the home buying process. This keeps you clear from searching for homes that you cannot afford or falling in love with a home that isn’t in your budget. It takes a mortgage specialist one to three days to let you know the estimated payment amount, so you can run your budget numbers to see what price you would be comfortable with. Mortgage brokers will also go over different types of payment plans, such as 25-year amortization versus 30-year along with the differences between a fixed rate and variable rate, so you can decide what works best for your particular situation. Jesse Davies & his team have a number of amazing mortgage brokers that they have been working with for years and would be happy to refer you one to help in your pre approval process.

SELL QUESTIONS

What is a Comparative Market Analysis (CMA)? 

CMA is a document prepared by your REALTOR® to help determine the selling price of a home by comparing it to recently sold homes in the same area. In a CMA, Real estate professionals analyze the price of recently sold, actives, and expired listings that are similar (comparable) to the home they’re trying to sell. At Jesse Davies & Associates we try to use the most recent sales as comparables and make adjustments to our client's homes based on (but not limited to) square footage, basement development, lot size, number of bathrooms, upgrades, garage and lot location. Jesse Davies & Associates has a licensed Real Estate Appraiser on the team who helps the team with adjustment amounts and collaborates with us to confirm our valuations. It is important to note that active listings do not factor in the end value but all active properties are reviewed with our clients as it is important to know who your competition is when listing ensuring a buyer chooses your home over another.  All of our standards, guidelines, and adjustments are in accordance with the Appraisal Institute of Canada. This is a distinct competitive advantage we have over any other real estate agent in the city and our clients love the idea that they are getting more than just a Realtors opinion of the value of their home.

 

Should I sell my home first before I buy?

Most of the time the answer is yes. It is more beneficial to list your home for sale before you commit to purchase another home. Why we recommend this procedure is because you don’t want to get caught carrying two mortgages, should your first home not sell before you take possession of your second. Also if you purchase your new home, you may want to have a sale of home condition which may decrease your chances of getting a better deal on your new home because of this limiting condition which most home sellers are not excited to have to accept. Once we start marketing your property to the public, it’s also a great time to start researching what kind of home you want to purchase down the road. Once a final sale is agreed upon and your current home becomes under contract, that’s a great time to start viewing properties to buy! We pride ourselves on helping our clients make a smooth transition.

How effective is having an open house?

Great question! An open house benefits both the Sellers and the Buyers. In general, an open house is a critical part of marketing to drive activity and increase competition among potential buyers. Also, the level and degree of interest will tell the Seller if the price and promotions are reasonable. Lastly, an open house provides face-to-face feedback on the property which the Realtor can make suggestions on tune-ups back to the Sellers and address any questions arise by the Buyers on the spot.

Should I sell my home over the holidays?

A common question we get asked leading up to the holidays is should I wait to list my house until after the New Year. At Jesse Davies & Associates, we are of the mindset that December can be a great time to get your home on the market. There is certainly a pool of buyers who love to do their home shopping while they have some free time over the holidays. Historically, active listings in December compared to other months in the year will be lower so you will have less competition on the market to compete with. For example, November 2018, we had 6,501 active listings and as of December 12, 2018, we have 6,165 listings, a result of 5% decrease in active listings. Therefore, don’t let the holidays hold you back from selling your home.

 

Looking to sell your home over the holidays or in the New Year, we would love to sit down and talk about our marketing strategies which have achieved some amazing results in 2018. 

Should I rely on my city assessment?
The city of Calgary sent out over 500,000 property assessments out earlier in January. The property tax assessment is a value placed on a property for municipal and provincial taxation purposes. This is an estimated value of your property’s market value on July 1 of the previous year, and it is also adjusted for any changes in exterior physical condition and or upgrades submitted through the building permit process. For example, developed basement or addition of garage or square footage as of December 31 of the previous year. Many people would look at the assessed value assume that the number represents the current market value. While there are a few instances where the assessment might equal the current value, this would only be a coincidence.
 
The assessed value and market value are calculated differently and for different purposes at different time. Market value is a much more extensive and precise report which makes adjustments for features such as number of bathrooms, upgrades and basement developments. The market value uses the most recent comparable sales and thus is a much more accurate assessment of the value of your property.
 
If you are curious as to what the market value of your home or rental property might be, we would be happy to provide one for you; visit us at https://www.jdrealestatecalgary.ca/book-home-evaluation/
Should I Stage My Home for Sale?
When a seller is ready to list their home for sale, there are a lot of things to consider.   One of those things is staging, and sometimes, home sellers get confused with interior design or home decorating.  The sellers need to commit to transforming their home into a place that buyers can easily imagine themselves living there.  Staging draws out the best features in a house while hiding the impediments. Especially in a challenging market, we see more advantages in partnering up with a stager.
 
According to the National Association of Realtors’ (NAR) 2017 Profile of Home Staging, 39 percent of seller’s agents said staging a home “greatly” decreases the amount of time a home stays on the market, and 77 percent of buyer’s agents said a staged listing makes it easier for buyers “to visualize the property as their future home.”
 
My first advice to home sellers is to start with decluttering of the house and depersonalizing, remove personal photos and replace it with mirrors, and artwork. 
 
If you have other questions regarding real estate, we invite you to visit https://www.jdrealestatecalgary.ca/ask-jesse/
  
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