Here are 5 reasons why that's not a good idea.

1. Taking Time

Buyers like to take their time. When the seller is in the home, often a buyer will feel like they need to hurry and rush through the showing.

2. Privacy 

Buyers like privacy when looking over details. They like to open doors, windows, cupboards and it’s common they will test appliances. If the seller is home it makes it uncomfortable.

3. Chatter

Buyers like to ‘talk’ amongst themselves with their agent about the property. Sometimes picking the property apart and comparing different aspects of the home with other homes they have previously viewed.

4. Crossing paths

If the buyer and seller cross paths during the showing, There’s a chance amongst a casual conversation that one of the parties “shows their hand” unwillingly. An agent may ask the seller questions that could put the seller at a disadvantage if an offer is presented after the showing.

5. Nothing to worry about

The Real Estate agent showing the property is a licensed and insured professional who adheres to a code of conduct. They are responsible for the property during the showings and should always respect sellers wishes concerning security.

Written by Matt Mychajliv with 

TheCalgaryRealEstateTeam.com

matt@thecret.com

1. Get in good financial shape

Talk with a mortgage broker to get your pre approval before beginning your searches. Besides being prepared financially, you'll know exactly what type of property you can search for by having your budget in hand. If you do not have a mortgage broker. Visit our financing page to meet Tracy and Josh.

2. Know thy neighbour-hood 

Where you live matters. Why do we want to live in a specific community is a question we all should ask ourselves before moving. Buying your new home should match the lifestyle that you plan to have. Amenities, commutes and school districts are often overlooked. Something to always keep top of mind. 

3. Don't fall for love at first site

Tour a minimum of three homes and keep a list, make sure the home ticks off several boxes on your wish list. Don't let the aesthetics fool you. Get the home you need. 

4. Location location location

It's a common term in Real Estate and it's still the top criteria to keep in mind. Finding a home, condo or investment property in a desireable location will benefit you in the future, especially on the investment side. 

5. The Layout

When your searching for a home. The layout is next on the list after location. Most homes layouts cannot be changed and it's worth while to find a home that fits your lifestyle when it comes to finding the right layout for you. 

6. Home inspection?

Home inspections are a small cost when it comes to your peace of mind. Sellers are typically willing to help cover the cost of any repairs and at TheCRET, we always ensure that the offer is dependent upon inspection.

7. Proper representation

This might sound biased coming from a Realtor. Having proper representation is the key to ensuring you have a great experience with your home searches and the purchase. A knowledgeable Realtor to lean on for ideas and advice over the years, will add value to your real estate plans. Whether your buying, selling or investing. Make a plan and execute it with the right team. 

Written by Adam Sharek with

TheCalgaryRealEstateTeam.com 

(403)921-7111

adam@thecret.com

Homebuyers typically hire the best home inspectors in the area to find out the condition of the house before closing. However, if your home in Calgary is under the spotlight, a home inspection can be a nerve-racking experience. After all, based on the home inspection results, the buyer can renegotiate the house sale.

If you are selling your Calgary home, knowing what the inspector looks for can help get your house in order before the inspection. So, it’s vital to focus on the main areas that a professional home inspector will check the heating system, plumbing system, and electrical system. Additionally, the inspection includes the roof, attic, crawl space, basement, and structural components.

Let’s look in more detail at what home inspections include:

Home Inspections Include Roofs and Chimneys

The condition of the roof is one of the first things a professional home inspector notices. Broken shingles or damaged roof coverings usually mean that water gets into the property. This often leads to rotting wooden structures or damp.

The flashing around the chimney is also an essential part of a home inspection. Loose flashing usually means there will be problems with damp and mold in the building.

Plumbing Systems

A crucial part of a home inspection is the plumbing system. The inspector checks water pressure—so don’t be surprised if all the faucets, the washing machine, and dishwasher are all on at once.

What can you do to prepare for the home inspection? Check to ensure that there are no leaking pipes and that the faucets don’t drip.

Electrical Systems

Faults with the electrical system can be a significant issue in home inspections. The inspector will make sure that the electrical panel and circuit breakers are working as they should. Also, they will check to see that all wiring and electrical installations meet current safety codes for Alberta homes.

Basements and Crawlspaces

Basements are usually where home inspectors find most issues. Many homeowners don’t pay much attention to crawlspaces and basements. So, over time, problems can build up. The most common issues that Calgary home inspectors find are ones related to damp—mildew, mold, bad odors, or wood rot.

To prevent problems with dampness, ensure that all gutters are cleaned regularly, drainage systems function as they should, and that water runs away from the house.

For more info on Odds On Home Inspection Services: Visit Odds On Here.

TheCalgaryRealEstateTeam.com

Buy. Sell. Invest. #askthecret

info@thecret.com

1. No Sign-Up Necessary

When using the TheCalgaryRealEstateTeam.com's website, you will "Not" be prompted for your personal information unless you decide to create a custom search. 

2. Create a Custom Search 

Know exactly what you are looking for? Create a custom search and save properties to your favorites list, refine your search as needed and also create multiple searches. You'll be updated every morning with new listing's that come onto the market so that you are on top of the market! 

3. Mobile Friendly

TheCalgaryRealEstateTeam.com's website was designed to be fast and effective for all mobile devices. Search for homes on the go!

4. Simplicity with the User in Mind

TheCalgaryRealEstateTeam.com's website has been designed to be highly responsive and effective. Navigate with ease and next to zero load times. 

5. Interactive Map Searches

One of the favorite features of TheCalgaryRealEstateTeam.com's website is that unlike many other Real Estate websites out there, our website allows you to view homes instantly on a map view. You can even draw an area(s) of exactly where you want view the active homes. Even if it's in Lethbridge or Red Deer. Map searching made easy.

We are local Calgarians and have worked with people from all over. Get in touch with us today. 

TheCalgaryRealEstateTeam.com

Buy. Sell. Invest. #askthecret

Greg Toews is the proud Father of 'Daylen' Toews. His inspiration behind the creation of "Daylens Place". Knowing the challenges that the come with Downs Syndrome, Greg set out to make a paradise for his son as well as others adults with "Downs".

Daylen's Place is a one-of-a-kind housing and living experience situated near Okotoks, AB. Nestled in the peaceful river valley by the Darcey Ranch golf course. The acreages include two 4,200 sq/f homes, one for the girls and one for the boys, each with seven master suites and state-of-the-art common areas. 

The Mission at Daylen's Place is to promote supervised, independent living and learning for adults with Downs Syndrome, in a safe environment, designed to maximize individual growth and life skills.

Being in the river valley, and so close to nature, Daylen's Place offers many advantages that city living cant provide. The properties have been well received by the community and are now ready for new residences.

Schedule your tour today.

In the apartment investing industry, our return on investment, assuming we purchase the building in full with cash, is known as a capitalization rate or, cap rate for short. 

Cap Rate Defined

A cap rate is a ratio that describes how long it will take to get back all your money in an investment. Pretty important, right? Let’s take a deeper dive and look at the various usages and reasons for why in some scenarios a low cap rate is good, and in others, one might prefer a higher cap rate.

In the apartment investing world, many would argue that the cap rate is just as important as the net operating income and even as important as the purchase price. In fact, that’s how you calculate it.

Understanding Cap Rates

A cap rate is simply the net operating income (NOI) of a property divided by its purchase price. For example, if the NOI of an apartment complex is $800,000 and the purchase price is $10 million, then the cap rate is $800,000/$10,000,000 which equals 8%.

Depending on your area, 8% could be good, but in other areas, it might be unrealistic. When analyzing an investment, the cap rate is a vital metric because it provides a portion of insight into the future. Cap rate is almost like an investor’s crystal ball to predict the upcoming years. Be mindful that this can deviate depending upon the economic cycle, fluctuations in NOI, property value, etc.

Another key concept to remember is that apartment complexes are not evaluated like houses. House values are based on “comps,” like-kind and quality nearby houses which have recently sold, whereas apartments are valued based on their profitability with respect to their investment (NOI divided by purchase price) — or in other words, the cap rate.

Finding Value Using Cap Rate

You can also use a building's cap rate to find the value of a building. A property value equal to the net operating income divided by the cap rate. For example, a small rental property in Calgary with a NOI of $100,000 and a cap rate of 7% is valued at $1,428,571. The same property with a 10% cap rate would have a value of $1 million.  

Cap Rate Comparison

The next most important analysis when looking at cap rates is knowing how to compare them and what gut instinct you should feel. A low cap rate (3%–5.5%) is likely to be found in a nicer area with better amenities, lower crime rates, better school systems, newer construction and typically A- or B-class properties. A medium cap rate (5.5%–8%) is usually found in a lower-income area with average amenities, slightly higher crime rates, average school systems, older construction and typically B- or C-class properties. A high cap rate (8% or higher) is usually found in a very low-income area with little to no amenities, high crime rates, poor school systems, outdated construction and typically C- or D-class properties.

To clarify, this largely varies when you change the geographic location. A 6% cap rate in Calgary is a completely different property than a 6% cap rate in a more rural town like Three Hills, Alberta. When comparing cap rates, be sure to only make parallels to the cap rates of surrounding areas, because every city is different.

Which Cap Rate Is Better: High Or Low?

First, you must decide which type of return on investment you are searching for. Would you prefer a high monthly cash flow or long-term appreciation? There is typically a trade-off here. Most properties with strong monthly cash flow do not appreciate much over time. On the other hand, most properties with strong appreciation do not cash flow as much monthly. What is considered a high cap rate for the area typically produces a large cash flow monthly, but doesn’t appreciate over time. Whereas, a low cap rate typically doesn’t gush cash flow but has very strong appreciation.

Think of a trailer park around Calgary as an example of a high cap rate. These will produce massive amounts of cash flow monthly, but unfortunately will not go up much in value over time. Now, think of a community like Mission as an example of a low cap rate. This area will not cash flow much after the very high expenses; however, it should appreciate many times over with long periods of time used to your advantage.

Other Key Terms Relating To Cap Rate

Now that you understand cap rates, there are some key related terms that you should be aware of:

• Cap rate compression: Geographical, economic and market factors may push the cap rate lower in what is known as cap rate compression. This is typically indicative of rising prices in the market and potentially a perception of lower risk for that asset class.

• Re-capitalizing a deal: A capital restructuring of a company’s mixture of debt and equity that is usually performed, in most scenarios, to make a company more stable.

• Reversion (or exit) cap rate: The expected/projected cap rate at the time of sale in the future, which helps with financial projections and analysis when buying the property.

ReCap On Cap Rates

Cap Rate is the ratio describing the net operating income with respect to its purchase price. Keep in mind, cap rates are strongly influenced based upon a property’s geographic location and the economic cycle. Use it as a quick snapshot to give you a pulse of the property before taking a deeper dive into the rent roll and the last 12 months of expenses. This will give you an overview of how the property performs and how long it will take to return the full investment when purchased in full with cash. Now go capitalize! 

Published by Adam Sharek

Due to the many questions around "how's the market" that we all receive on a daily basis, we thought it may be best to offer some of our thoughts on what is happening in today's markets, and what we may see in markets ahead. 

What is happening?

When looking at the market activity, and listening to the news reports, it's easy to throw our hands up in the air and say the markets are strange and we have no idea why they keep surging forward.  We wanted to take a step back to try to understand why.  With everything that has been going on in the world, what has changed. While there could be a variety of reasons for what is fueling the insurgency in sales, and we don't fully know how long it will last, here are a few thoughts to consider.

Savings are through the roof!

To start, let's take a look at household saving.  With less opportunities for consumer spending, there is a higher amount of saving that has been happening through the first half of 2020. According to Stats Canada, in the first quarter of 2020 Canadians saved 7.6% of their disposable income which is the highest level they have seen since 1996. This grew to 28.2% in the second quarter which was a huge spike, the highest savings rate since 1961!  To put this into context, the average rate of saving over the past five years preceding Covid was 3%.

Deferrals, are they good or are they bad?

Another aspect to household savings is tied to the mortgage deferral program that was put in place.  A very real concern was that the widespread income loss during the Pandemic would cause significant challenges for households that are highly indebted, and whether or not they would be able to keep up with their payments.  While many have compared the pandemic to recessions in the past, the Bank of Canada has found that there are more similarities to a natural disaster that has immediate and severe impacts that are much shorter lived than a recession.  According to the Bank of Canada, the households that are indebted can cope with temporary income losses and continue to make mortgage payments for a median of 9.6 months.  While the median seems to be quite high, they found that one in five homes could make two months payments using liquid assets while one third of households could make four months payments using liquid assets.  Keeping this in mind and taking a look at the projected results for the mortgage deferral program, they estimate to have pushed back the peak so mortgages that go into arrears by 6 months, as well as significantly lower that rate as well.  The simulation they did to estimate this went from the potential peak of mortgages in arrears hitting in November at a rate of 1.3% (an all time high) if nothing was done, to the peak hitting in May 2021 at a rate of 0.53% as a result of the mortgage deferrals.

Bank of Canada: Household indebtedness risks in the wake of COVID‑19

Mortgages in Arrears are at what rate?

This brings us to the discussion of what Mortgages in arrears typically looks like in Canada, and Alberta.  The definition of arrears is three months without payments which would then lead to foreclosure proceedings.  The Canadian Bankers Association has tracked these numbers through the decades, and as of April 2020, the percentage of mortgages in arrears in Canada was at 0.25%, and in Alberta was at 0.52%.  If we look at Alberta specifically, these numbers have been rising since September of 2015 when it was at 0.27%.  The mortgages in arrears in Alberta has never exceeded 1%, which was in the early '80's. This suggests to us that through recessions and hard times, the banking institutions prefer to work with people to help them keep their homes. The deferral program should contribute to keeping these numbers low. 

Canadian Bankers Association: Read the latest statistics on mortgages in arrears in Canada

Is the Bank of Canada just printing money?

Next it is important to understand why interest rates are at a new all time low.  In order to keep the financial system working well, our households and businesses have access to credit as our economy relies on credit.  Here is a great resource that explains how the Bank of Canada has bought Canada Mortgage Bonds, commercial paper, bankers’ acceptances, corporate bonds, and federal and provincial government debt to help keep credit available for Canadian companies and households. They are using what is called settlement balances to purchase these, which act like loans from financial institutions to the Bank of Canada with an interest rate of 0.25%. As a result of these purchases, the financial markets can function properly to work with the Bank of Canada's record low interest rates to encourage spending and investment. This also will help companies borrow so they can invest in hiring or expanding business.  All of this has also led to the record low mortgage rates which is helping fuel the Real Estate market.

Rentals on fire!

Another piece to this puzzle is the Rental market, and how that has become much more competitive in Alberta.  For these numbers we will use the largest market in Calgary to give us an overview of what is happening. To look at other cities, feel free to use Rentfaster.ca for their stats. At the beginning of 2020, the average days on market for a rental was at 88 days, that has now dropped to 43 days which was 74 days at this time last year. The inventory has also been dropping, making it more difficult for renters to find properties.

There's no place like home!

It is also important to consider what appears to be a renewed appreciation for our homes. With the uncertainty in the world today, and people being forced to take a step out of our "busy" lives it has brought about a new appreciation for family time at home. This has also led to people making decisions about where they live and if it suits their needs. The opportunity for many to work from home has also opened up new opportunities for people to live outside of the larger City Centers.  The uncertainty has also led people to assess their financial situation, and in some cases has forced people to "right size" their homes due to their own situations.

Movin' on up...

All of this has contributed to the property ladder taking full effect. With the rental markets tightening, the savings increasing, the interest rates being rock bottom, and the importance of home increasing, it has led first time buyers into the market. One of the biggest challenges in recent markets has been that most buyers in the markets also had a home to sell in order to be able to make a move up. With the first time buyers market moving, this has allowed for movement in other areas of the markets as well.

Movin' on out...

The final piece to this is the people that have chosen to move out of Province as our Net Migration has been declining, and as of the end of the second quarter was down 1,836 across the Province.

Weathering the storm

With all of that said, this can all change on a dime as anything can and has happened in Real Estate. With so much uncertainty all we can do is look at the facts in front of us and adapt and adjust as we move forward. One of the biggest factors to watch that will determine how quickly we fully recover is going to be the labour market. With unemployment improving each month as people get back to work, this will be a key indicator for us to watch closely.

Hopefully this offers some insight and information that you will find useful in your "how's the market" conversations.

A home is a place of comfort and serenity. It is where an individual feels relaxed and secured. Home has memories of both laughter and tears – where family love is the cornerstone. A clean house depicts well-mannered homeowners, as much as it reflects the owner’s personalities and characters. Hence, a cleaner house illustrates a cleaner disposition. When selling your house with your memories in it, it is also important to sell it as clean as possible. As a seller, it is not rare to aim for a higher selling price and there are numerous ways on how to increase your house’s market price. We will show you how cleaning increases your home value during an open house.

An open house is where potential investors of a real estate property come to look around your home. This is a time where buyers evaluate how good or bad a property is, and if it is valuable enough for investment. Buyers have their own set of standards and evaluation. However, if you are the seller, you have the entire responsibility, as well as the endless opportunities to let them see how perfect your house is. As such, you have the full range of capability to enhance your home. You can also increase its value through cleaning. But how does cleaning increase your home value during an open house?

How Cleaning Increases your Home Value?

Since we focus on cleaning, you might ask how cleaning increases your home value during an open house. For those who are on a tight budget to renovate their house to increase its value, then cleaning is a good choice. In this article, we will discuss how cleaning increases your home value during an open house. You get to have an idea just how important cleaning is when selling your home for the price that you want.

Adds More Space

How cleaning increases your home value during an open house? First, it adds more space to your home. It’s a fact that you can sell a bigger home for a bigger price. Aside from that, the more spacious and clean your home is, the more livable it is. Thus, you can de-clutter the unneeded things or those that are not included in the house sale. When you do this, you’ll be surprised to see how spacious your home really is.

Increase Curb Appeal

Curb appeal is not limited to landscaping only. It also includes the appearance of your house externally. It could be with the foyer, the windows, the terrace, etc. The curb appeal increases your home value. Of course, cleaning and de-cluttering must not only be done inside the house. You should also give time to clean the facade. Buyers will appreciate and enjoy the cleanliness of your house’s exterior as much as they like neat interior.

Moreover, outside cleaning will help invite more potential buyers during an open house. A house will look more valuable when it already has an appeal from the outside. House appeal is almost everything when it comes to buying. Thus, curb appeal validates how cleaning increases your home value during an open house.

Increases Aesthetic Value

Cleaning does increase the house’s value because it removes the grime, dust, mud, or any dirt in it. With this, you will polish your old and unclean house and make it look like new as much as possible. Certainly, this will increase your house’s aesthetic value. Your house will become more appealing to prospective buyers and attract them to purchase your house.

Furthermore, the house inspector can give you a better price just by looking at how your house can please potential buyers. The more visually attractive it is, the greater the price you can sell it for. An increase in aesthetic value, which is a direct effect of cleaning, does show how cleaning increases your home value during an open house. However, the visual appeal shouldn’t be the only thing to consider. As a seller, you should also consider its natural appeal and how livable it will be during the open house.

Invites More Buyers to Come In

Cleaning does invite more buyers to check your house. You might see cleaning as only a part of your usual house maintenance. However, this also gives buyers an idea how well-maintained the residence is. Not just in its visual appeal, but also all its existing systems and materials. Cleaning lessens or removes any possible problems that might exist in the future. All of these will be judged during an open house. Thus, this invites them more to purchase the house and imagine themselves living in it. Or better yet, it will entice them to buy the house even at the highest value you offer.

It Brags About Your House

Another good purpose of cleaning is how you can brag about the cleanliness and neatness that your house has to offer to potential buyers. Cleaning does not only improve the livability of your house, but it also shows its biggest potential. It can showcase its beauty, comfort, vibe, and appeal. Thus, if you cleaned your house’s externals, especially your windows, before an open house, it will give buyers a good peek inside. Surely, potential buyers will not miss this out during an open house.

Your buyers will also see it as a good investment if they see that your house is well-maintained. With this, you could sell it at a good price. Thus, if you are a seller who aims to spend a small amount but expects a good home value increase, you need to get your house cleaned!

How Can We Help You?

Do you still question as to how cleaning increases your home value during an open house despite all of our stated reasons above? Or perhaps we have already convinced you of how important cleaning is, but you do not have the time to clean the house yourself?

If this is your issue, then you are on the right track. At Home Spritz, we offer you cleaning services according to what your house needs. We get the right materials and well-experienced cleaners to cater to your inquiries, needs, and problems.

There are many unclean portions of the house that most people are not experienced to clean such as appliances and large fixtures. Hence, it requires proper professional

procedures and advanced equipment specially made for cleaning. Cleaning an entire house is a rigorous challenge. From the amount of time, effort, and resources that you need to the exhausting process of cleaning - it has never been so easy.

Thus, Home Spritz is here to help you prepare and raise the value of your home. We will make it more aesthetically appealing and attention-getting for an open house.

Get To Know Us

Home Spritz is a Calgary-based cleaning company launched in 2019.

We provide satisfying services to great customers. Our company uses a vetted marketplace to help you find the best cleaners for your house. We also support local and professional cleaners and offer a living wage that helps the community thrive, especially in this time of the pandemic when our economy is down.

Home Spritz exists to help build the profession of house cleaning by creating training, skills, opportunities, and reputation throughout North America. We operate in Lethbridge, Edmonton, Calgary, and surrounding areas. Also, we allow customers to talk directly with our house cleaners and we support this relationship.

We only bring the top 2-3% of cleaners to give you a fantastic cleaning! We offer not just service, but also relationship and comfort. You’ll never find a cleaning service that gives you a personal touch as much as Home Spritz does!

HomeSpritz.ca