Over the long term, residential real estate is one of the best investments you can make, while providing you and your family with shelter and a place to accumulate fond memories. But there are cycles in the market that may affect your decision regarding when to sell. These cycles can create a shortage of homes (which will usually push up prices) or a surplus of homes (which can result in a slowdown of rising prices or even price reductions).
What drives these cycles? The overall economy is most obvious answer. In periods of economic growth when employment is strong and people have confidence about their futures, demand for housing is high.
When there is a downturn in the economy however, unemployment increases and more home are put up for sale - at the same time potential buyers are waiting for things to improve.
These economic fluctuations can be national in scope or affect only certain pockets of the country. For example, local events can drive a real estate market too, like the closing of a large factory can have a tremendous impact on the economy and housing prices.
Changing interest rates also influence real estate market cycles. When interest rates rise, fewer people can qualify for any given mortgage amount and demand drops - make it tougher to sell your home or obtain the price you want.
Does all this mean you have to be an economist to determine when to sell? Not at all. But staying aware of the things that influence the cycles in real estate will help you decide when to place your home on the market and how to price it realistically. If you don't have time to follow the market, a Realtor can always give you up-to-date information and advice.
The “Seasonality” of Home Sales
In Ontario, seasons and the weather can affect buyer demand and in turn, how long it will take to sell your home or the price you can obtain. For example, fewer buyers may be willing to trod through snow drifts to look at homes for sale during the winter months but you will also be competing with fewer houses on the market.
Conversely, spring tends to be an active time for real estate sales. Homes and gardens start looking good again and buyers come out of hibernation. Parents with school-aged children particularly like to buy in spring, so they can move into their new home during the summer and settle in before the next school year begins.
Homes are sold throughout the year, so think of the season as only on factor in determining when you will put your home on the market.


Buy first or Sell first?
This is a one of the trickiest questions to answer when you're selling one home to buy another. If you purchase a new home before you reach an agreement to sell your current home, and the sale falls through, you may find yourself owning two homes at the same time. On the other hand, if you wait until you receive an acceptable Offer on your present home before committing to your next purchase, you may suffer the inconvenience and expense of living in a motel and storing your furniture while you await possession of your new home. It may also mean incurring the cost of moving your furniture twice.
Many people are able to time their sale and purchase so that they both have the same `closing date'. Your Realtor and lawyer may be able to accomplish this.
As a measure of safety, you can make your offer to purchase your next home `conditional' on the sale of your present home within a specific time frame. If you current home doesn't sell within that period, you are not obligated to completed your next purchase.
Alternatively, when you receive an offer, you can negotiate for a longer `closing period' to complete the sale of your home, giving you more time to find and purchase your next property.

Bridge Financing:
What if you put your property up for sale and then you find your `dream home' the next day? You can, as we already discussed, make an offer which is conditional on you selling your current home, however if the seller receives another offer, you may be forced to commit to your purchase within a few days or watch your dream home slip away.
One way to avoid this is to arrange “bridge financing” through your lending institution. If your lender is confident your home will sell in a reasonable period of time, they may advance you the money to make a down payment of your dream home, using the equity in your current home as security.

Occasionally, one can see "For Sale By Owner" signs, and some owners think that selling their own home will not only save them money, but believe they have an advantage over the sellers that have their home listed by a reputable Real Estate sales professional. Before you decide to take on this very important and legally complicated process…remember not even most Real Estate Lawyer's recommend selling your own home yourself in today's market. Here are a few of the reasons why:

1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take ten to fifteen times longer to sell on the market.

2. The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long... there must be something wrong with the home.

3. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor... and the offer automatically will follow. Remember that the buying process begins after they leave your home. If a real estate sales representative does not represent the buyer, and they are looking on their own…they usually leave the home and start to talk themselves out of the buying process. Real estate professionals are trained on how to overcome buyers remorse--a very common occurrence.

4. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.

5. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.

6. Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.

7. The majority of qualified buyers are working with experienced real estate professionals.

8. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.

9. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.

10. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate sales representatives to bring potential buyers.

11. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer's fees will be considerably higher.

12. Only real estate sales representatives have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to real estate sales people. Further, real estate sales representatives are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.

13. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.

14. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer's to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced real estate professional, can be the most important. Your Real Estate professional can act as a great mediator. Lawyers MUST act only on their client's instructions and are not paid to negotiate.

What should you look for in a Realtor?

Reputation:

If you've lived in your community for several years, you may already be aware of the real estate brokerages and representatives with the best reputation. If not, ask around to see what other people think about the Realtor you are considering. You should have little trouble discovering who has earned a strong reputation for service excellence and professionalism.

Office location:

You may want to select a Realtor whose office is in or near your community. These are the people who know your real estate market thoroughly and understand the comparative values of the homes for sale there.

Interviewing individual candidates:

Since you will be working closely with a Realtor for weeks or perhaps months, it makes sense to choose one you feel comfortable with - someone who listens to what you have to say, asks intelligent questions and shows a genuine interest in helping you. You may want to interview one or two Realtors, preferably in your home, to make a comparison.

Try to identify Realtors who have built a track record of success selling your type of home in your community. Your main objective is to gain a clear understanding of each Realtor's strengths. What do they and their company have to offer you? What commitments are they prepared to make, particularly in reference to their plan for marketing your property? How did they establish their suggested selling price for your home?

Should you choose the realtor who suggests the highest asking price for your home?

You may be tempted to do so and sometimes that's appropriate. But, first find out how the proposed price was calculated. What methods were used to assess your home's potential value in the current market? How was your home compared to others that have sold recently and to those currently for sale? Does this suggested price match your selling objectives?

Making the right renovations and upgrades to your home improves its resale value. Deciding which renovation is best for your home can't be done simply by referring to a laundry list of the `latest' renovation trends. Discovering what renovations will provide you with the most value comes from analyzing a variety of factors, from the price and location of your home, to who is likely to buy it. Here is a list of the six smartest home renovations and the percentage of return they can bring on your investment.

The Six Smartest Home Renovations:

IT ALL STARTS AT THE CURB:

Everyone knows the value of a first impression. Landscaping the front and backyard of your home will give you a 7% better return on your renovating dollar over the average return on other popular renovations. Increasing your curb appeal can be as simple as adding containers of brightly coloured flowers. Another idea would be to add a low maintenance garden for blocks of colour and texture. Also consider a simple water fixture in the backyard to add ambience.

DISAPPEAR IN YOUR PERSONAL SPA
Today's stress filled world leaves us all crying out for rest and relaxation. The goal should be to create a spa-like environment in your bathroom by installing a soaker tub with relaxing jets, or perhaps a new steam shower stall. This type of reno could generate a 56% better return than the average popular reno.

THE KITCHEN IS THE HUB

Ever wonder why `kitchen parties' naturally occur every time you have a get-together? Well, its because the kitchen is the hub of every home. It's where we get nourishment and refreshment, where we gather and regroup after a busy day. Renovating your kitchen wisely is the smartest renovation you can do. Kitchen updates can deliver a 44% higher return on investment than the average return on other popular renos.

TRY A FRESH COAT OF PAINT

The dramatic effect paint can have on any living environment is often overlooked but believe it or not, that simple repainting of walls gives you a 29% better return than other popular renovs. Whether you go neutral with splashes of colour, or warm and dramatic, trends include mixing strong colours with nature-inspired neutral-energy colours like orange, aqua, sage and blue, along with neutral palates leaning toward bisque, fawn, grey and walnut.


GREAT IDEAS UNDERFOOT

Great-looking floors are a strong feature of any home. Start by ripping out that dated wall-to-wall carpet. Then sand your existing floors down and refinish them or choose one of the many easy-to-install affordable laminate flooring that are now available. A darker stain gives an elegant yet up-to-date look which can generate a 22% better return on investment.

REKINDLE YOUR PASSION FOR LIVING

Nothing beats the feeling of curling up around a fire on a cold winter's night. Not to mention the comforting feeling of hearth and home that a fireplace adds to a room. By installing or upgrading the fireplace in your home, an 11% greater return on investment can be expected.

The “Listing Agreement” is the contract between you and the real estate brokerage authorizing the brokerage (and its broker and salespersons) to market your property. This agreement:

- establishes the basis for the relationship between you and the real estate brokerage, setting well-defined limitations on the agent's authority

- provides detailed information about your home. This information is submitted to the Multiple Listing Service (unless you have opted for an Exclusive Listing) and also assists the Realtors in answering inquiries from prospective buyers who respond to ads or visit your home

- forms the basis for drafting an offer on your home and the negotiations involving the offer.

When you list your home with a Realtor, the Listing Agreement is used to spell out the details of the property and terms and conditions of the Agreement.

Here are some of the Sections on the Listing Agreement:

The Authority: This section establishes the legal relationship between you and the real estate broker, sets a time limit for that relationship and describes the obligations of each party.

Listing Broker's Name: The name of the real estate broker to whom you are giving exclusive authority to act as your agent in the sale of your home.

Property Description: Your property is fully identified including a complete legal description. Be sure this information is accurate, since it will also be used by the buyer when submitting an offer.
Last day of the Agreement: You are granting authority to your broker for a specific period beginning on the date you sign the agreement and ending at 11:59 p.m. on the specific date.

Price: Specified in words and figures to avoid possible error.
Real Estate Commission: This is usually a percentage of the final sale price that you agree to pay to the listing broker in return for delivering an acceptable offer on your property. The wording also says that if your property is sold within a specified number of days after the last day of the agreement, and the buyer was introduced to your property while the agreement was still in effect, the commission will be payable to the listing real estate brokerage in accordance with the terms of the listing agreement.

Other Provisions: The language here covers other obligations you and listing broker have under this agreement such as: all inquiries that you receive about your property must be referred to the listing broker. The broker is permitted to place a For Sale sign on the property and to show prospects through your home during reasonable hours. If a second Realtor is involved in the final sales transaction, that Realtor's commission will be paid by the listing broker.

Detailed Particulars about your Property: Your home is described in detail, as are the terms you would ideally like to see in an offer to purchase it. In order to complete this section of the Listing Agreement, your Realtor will conduct a thorough physical examination of our property, as well as any legal documents you may have that relate to your home. These usually include the title deed, survey, mortgage documents and tax notices.

Your Realtor will fill in all the details:

Legal description. In addition to the street and house number, it's necessary to specify the lot and plan numbers if the property is in a registered subdivision. Otherwise, the lot and concession number should be listed, accompanied by a survey or sketch of the property showing location of all the buildings.

Size of the lot: Precision is essential here. The dimensions are usually taken from your title deed, mortgage documents or survey. If the lot is irregular in shape, a survey is very important.

Building age: Most buyers want to know when your home was built. If you're not sure about the home's age, your Realtor may be able capable of accurately estimating its age by the construction style or materials, or by checking local municipal records.

Type of Construction: This is whether your home is made of solid masonry or wood frame with brick or stone veneer. The type of siding (wood, aluminum, stucco etc) will also be listed

Style and number of rooms: The type of home you are selling is described here. In listing the number of rooms, bathrooms, hallways or finished space below ground level i.e. Recreation rooms are not included.

Zoning and District: It is important to specify the zoning code on the listing form because prospective buyers may be concerned about the legality of the present use of the property or may be considering changing its use.

Room Sizes: Even if you already have an old floor plan showing this information, your Realtor will want to measure again for your protection. Buyers care about these details since it often affects their use of certain pieces of their furniture in your home.

Features and Remarks: Here the Realtor will list features that may be important to prospective buyers, such as “backs onto a ravine” or “quiet, dead-end street”. Chattels included in the Sale: Chattels are moveable pieces of personal property, such as a portable dishwasher or microwave oven that may be included in the sale unless you specify otherwise.

Fixtures Excluded from Sale: Fixtures are permanent improvements to your property, such as built-in appliances or wall to wall carpeting that normally are included in the sale unless you specify otherwise.

Completion Date: Obviously, it's impossible to pre-determine the exact date your home will be sold. So the completion date, also known as the `Closing Date' usually represents the number of days you would ideally like to have, from the time you and the buyer sign the agreement to purchase, to move out of your home. Alternatively if you will need time to find another home once an offer on yours is accepted, the completion date might be listed for 60-90 days with an indication that you are somewhat flexible.

Once the Listing Agreement is completed, your Realtor may also ask you to sign a Seller Property Information Statement (S.P.I.S.). It itemizes the things to be reviewed when you list your property for sale. These include water and sewage systems, registered rights of way and other problems, as well as defects in any appliances or equipment included with the property. You have the opportunity to note each category, disclosing whether you are aware of any existing problems.

Also included on the form is a structural checklist asking if any recent renovations, additions or improvements have been made to the property, and whether you are aware of any problems with the heating system, air conditioning, plumbing, roof, etc. As well, the form has a section geared to environmental issues for use in dealing with rural property.

Many real estate boards are now requiring sellers to sign these forms and we recommend you do so to help protect yourself against possible liability.

In the summer months, municipal water use doubles. This is the season when people are outdoors watering lawns and gardens, filling swimming pools and washing cars. Summer peak demand places stress on municipal water systems and increases costs for tax payers and water users.

As water supplies diminish during periods of low rainfall, some municipalities must declare restrictions on lawn and garden watering. By applying some handy tips, your lawn and garden can cope with drought conditions and you can minimize water wastage.

GENERAL TIPS:

Before watering, always take into account the amount of water Mother Nature has supplied to your lawn or garden in the preceding week. Leave a measuring container (empty it once per week) in the yard to help you monitor the amount of rainfall and follow the tips below to help determine how much water to add. Also bear in mind any watering restrictions that may apply in your municipality.

Water in the early morning, before 9 a.m. to reduce evaporation and scorching of leaves from the sun. Water on calm days to prevent wind drift and evaporation.

Set up your sprinkler or hose to avoid watering hard surfaces such as driveways, patios. If you're not careful, its water and money down the drain.

Water slowly to avoid run-off and to ensure the soil absorbs the water.

Regularly check your hose or irrigation equipment for leaks or blockages.

Collect rainwater from your roof in a rain barrel or other large container and keep it covered with an insect screen. Direct the downspout of your eavestroughs into the rain barrel.

Choose an efficient irrigation system. A soaker hose placed at the base of plants on the ground applies water to the soil where it is needed - rather than to the leaves - and reduces evaporation. Drip or trickle irrigation systems are highly efficient because they deliver water slowly and directly to the roots under the soil surface. This promotes deeper roots, which improve a plant's drought resiliency. If you use a sprinkler, choose one with a timer and that sprays close to the ground.

TIPS FOR YOUR LAWN:

Apply these tips to save water and money without compromising the health of your lawn:

Apply about 2.5 cm of water not more than once per week and skip a week after a good rain. The correct amount can be estimated by placing an empty tuna can on your lawn as you apply water evenly across the surface. When the water reaches the top of the can you've applied about 2.5 cm of water which is all your lawn needs. You can time how long it takes to reach this level then set the timer on your sprinkler.

Water thoroughly. Deep watering at this rate is better than frequent, shallow watering because it encourages deep roots.

Don't water your lawn excessively. When its waterlogged, it may turn yellow and develop fungus and diseases. Oxygen and mineral uptake may be restricted on heavy clay soils. Too much watering can also lead to thatch and fertilizer leaching.

Check your municipality to see if watering restrictions are in effect.

Avoid mowing and unnecessary traffic on your lawn when the lawn is dry or dormant.

Don't cut your lawn too short. Set the blade on your lawn mower to cut no lower than 6-8 cm so that the roots are shaded and better able to hold water.

Aerate your lawn once a year in the early spring or fall to improve water penetration. Afterwards, topdress by applying a thin layer (max. 15mm) of organic material and rake to distribute evenly. You can over-seed after this to help thicken the lawn.

A thick, vigorous lawn is the best prevention against weed invasion and can better withstand heat and dryness. A healthy lawn needs nutrients such as nitrogen. Application rates, sources and timing will depend on many factors including soil type. As a rule, a healthy lawn with good soil needs about 1 to 2 kg of nitrogen every year. Leave grass clippings on the lawn to return nitrogen to the lawn and reduce moisture loss.

TIPS FOR TREES, SHRUBS AND FLOWER GARDENS

Direct water to the root system. In the case of trees and shrubs, the roots that take up the most water are generally located within the top 30 cm of the soil and near and even beyond the drip line. This is the area directly below the outer tips of the branches.

Plants have different watering requirements at various stages of their growth. Keep soil moist in the first growing season. One rule of thumb is to water trees with a one-hour trickle using a soaker hose at least once per week, barring a good rainfall and more frequently during hot weather. Taper off watering in the fall. In the second growing season, water twice per month in late spring and summer. Once established, trees that are well-selected should require little or no watering other than that provided by rainfall, but ensure they get adequate watering during periods of low rainfall or drought. Actual water needs depend on factors like soil type and species.

Water perennials and vines well in the first growing season after planting. One rule of thumb is to water with a one-hour trickle at least once per week using a soaker hose for the first three weeks, barring a good rainfall, and subsequently during hot dry weather. Afterwards, perennials selected to match site conditions should need little or no supplemental watering. If you notice wilting or browning on your perennials, water to a depth of 10 - 20 cm to help restore the plants turgidity and vigour.

Apply a layer of mulch about 5 - 7.5 cm deep over the soil surface of the garden to retain moisture, moderate soil temperature, control erosion and suppress weeds. Wood chips, bark and crushed rock are just a few of the materials that can be used as mulch

Use a soaker hose placed at the base of plants, rather than using a sprinkler. This will help to apply water to the soil and roots, rather than the leaves and reduce evaporation.

Grass under your tree competes with the tree's roots for water. Apply mulch instead which helps to retain water. You can remove the lawn and replace it with mulch material.