Finding a realtor that meets your needs can be quite a task. In fact, about a month and a half ago, we tackled the issue briefly when we offered 3 Helpful Hints for Dealing with Realtors. But many people still wonder - How can I really get to know potential agents and see if I want to trust them with my home? 

For that purpose, we've put together a 5-Question Quiz that you should ask any potential realtor before signing any papers. 

1) Tell Me A Bit About Yourself

This may sound like the opening gambit of a job interview, but then, well, that's exactly what this is, isn't it? Asking an open-ended question allows the realtor express to you what he or she thinks is his or her greatest assets. See if you agree.

2) What Is Your Specialty?

You don't want to hire a condo expert to sell your turn-of-the-century home, or vice versa. Ask this question to see what types of homes they are most familiar with. And by the way, don't accept "I sell everything" as an answer... everyone has a specialty (or should.)

The same goes for regions within a city. Ideally, you want a realtor who is familiar with the very area where your home is located.

3) Do You Belong to Any Organizations?

There are many organizations and certifications that realtors can belong to and or hold in Canada and the US. The answer to this question will give you an idea how well-connected your potential realtor is, as well as how committed they are to the profession.

4) Do You Work Full Time as a Realtor?

Speaking of commitment to the profession, you would be surprised to know how many realtors do their gig as a part-time affair. If you want full-time attention (hint: You do), this is a good question to ask point blank.

 

5) What Are Your Numbers?

As we mentioned before on this blog, a realtor with good sales numbers is a realtor you probably want on your team. Asking potential agents flat out how many homes they have sold in the past year will give you an idea of their talent (and or commitment, see above.) Also, watch out for shifty eyes and other telltale signs of lying on this one to be sure you're getting the straight goods.

There are obviously many other things you may want to ask any potential realtor, but there 5 questions will provide a solid base to decide whether someone is a good fit to sell your home or not. So go ahead, administer the quiz and see who passes with flying colours!  

 

SELL THAT HOUSE

In this installment of Sell That House, we're going to look at one of the importance but often-overlooked aspects of the home-selling process, the staging. For those who haven't heard of the practice, home staging is the art of making a home look... well... buyable, for lack of a better term to those you are showing it for. 

Some people will hire a professional stager to come in and take care of their home before having an open house, and many real estate agents recommend going this route. It especially makes sense to do this if you've already moved out and the house is empty; a stager can and does usually provide his or her own furniture to make the rooms look luxurious and comfortable. 

But if you don't have the budget to hire a pro, or just feel like tackling the challenge yourself, we're here to help. Here are our top 5 ways to start staging your home like a trained professional. Follow these guidelines, and you'll have your home off your hands in no time!

The Hit List:

1) Just Because It's Called a Fixture...

One of the biggest mistakes made by DIY home stagers is to skimp out on replacing outdated fixtures before showing the home. In the grand scheme of things, spending a few dollars to replace your door hardware, faucets and 70s-era light fixtures will be  well worth it.  Skipping this step altogether will leave prospective buyers thinking you and your place are dowdy and out of touch with current trends. 

2) Clean Means Cared For

When prospective buyers enter your home, you better believe that they are going to notice every dust bunny on the floor and scuff mark on the wall... and worse, they'll extrapolate from every imperfection and assume your home is in much worse condition than it is if it isn't spic-and-span.

Bottom line: When your home is on the market, it must be spotless at all times and ready for a showing. If you have to pay a cleaner for that period to keep it that way, do so - it will be worth it when your home sells that much faster!   

3) Less is More

A common mistake made by homeowners, when they are trying to make their home look good, is to clutter every room with oversized furniture, knickknacks and decorative pieces. When you're trying to sell, try to remember the popular adage: K.I.S.S, Keep It Simple Stupid!

The more things you stack into every room, the smaller and less homey the room, and the house as a whole, will look.

4) Fur Better or Worse

You might think that your little Muffy or Fido is God's gift to humanity, and that all prospective homebuyers will share your love of pets. They won't. 

If you have pets, make sure to vacuum up fur ardently and erase all evidence of pets living in the home before showing it, so as not to defer potential buyers who aren't fond of animals, have allergies, etc.

5) Taste is Personal

By far the most common and largest error made by homeowners when trying to ready their home to be shown is to allow themselves to be blinded by personal taste.

When it comes to staging your home, neutral is the word of the day. You may think that your 4-green motif in the dining room is the cat's meow. Others might not be so enthused. 

You might think that the faux Picasso prints on the hallway wall bring the space to life. Browsers with a realist penchant will be turned off. (Now if you've a genuine Picasso print, then you can probably leave that hanging...)

As much as it pains you, the less personal you make the space before showing it, the better. This allows each new visitor to better imagine how they could and would make each room their own. 

After all, the sooner you sell this house, the sooner you can buy a new home and start decorating the rooms in that one any way you like!

A couple months ago, we looked at simple ways to improve the curb appeal of a house you're trying to sell, and then we discussed some easy ways to spruce up the interior for sale as well. 

But we get a lot of questions from readers about whether there is a secret list of renovations that truly pay off when it comes to upping the resale value of your home. Well it's no secret, but there is definitely a list and though some of these will double up on my earlier advice, feel free to use this top ten list as a guide for future reno planning!

1) Painting

I've said it before, but it bears saying again: if there is one thing you do before putting your house on the market, do this. A new coat of paint does wonders for the look of your home and can increase your resale value by as much as 300%, according to realtors. Now that' return on investment.

2) Kitchen Renovations

Kitchens sell homes, so it makes sense that sprucing yours up will help you sell faster. Just remember to keep your budget in check, as kitchen renos can easily go sky-high price-wise. Also, remember to keep the price of the renovation comiserate with your asking price. There is no point in adding a 70 thousand dollar kitchen to a house worth only three times that amount, for example. Real estate agents say that a kitchen reno, done right, can add as much as 120% to the value of your home. 

3) Bathroom Additions

This one's easy: If your home only has one bath (or 1.5) and has more than one person, you can always benefit by adding a second full one. These renos can run up a tab as well, but you should see a payback of up to 130% when you sell.

4) Bathroom Remodeling

It's not so fun to think about, but the fact of the matter is that we spend a lot of time in the bathroom! It should come as no surprise, then, that making the room more comfortable and stylish can add appeal to your home. Realtors claim that a well-done reno of the main bathroom can increase your resale value by up to 120%.

5) Finishing the Basement or Attic

These are not projects for the lighthearted to take on, but they can be very rewarding if done properly. By finishing a basement or attic, you can add up to 30% more square footage of living space without having to build any extensions to the home. The downside is that these renovations are cumbersome, costly and only add 80 to 90% to the home's value on average.

6) Window and Door Replacement

Nothing scares prospective buyers away faster than old, ratty looking windows that are drafty and generally in disrepair. Putting in new windows and doors can give the whole house a facelift and convey to visitors that your home has been well cared for. Payback should range between 50 to 90% on this investment.

7) Deck Improvement or Addition

There is not much you can do outside renovations-wise to significantly improve the value of your home. Building or adding to your deck is the one exception, a project that can add up to 90% to your home's resale value.

8) Adding Rooms

Adding on to your house can be extremely difficult and expensive, but square footage is always king. You'll need to balance the cost of the reno versus the value that the extra space will bring. These projects can add as little as 30% to your home's value, or as high as 80 if they're done correctly.

9) Improving Home Office Space

With more and more people working from home, the home office has become a new home-selling space. A well-designed room with plenty of outlets, calm colours and other office-specific improvements can really help prospective buyers envision the space. Payback can be as high as 70% for this type of reno.

10) Energy Efficient Retrofits

When it comes to renovating to save money on power consumption, you should always be wary that you're not making all the capital outlay... only to save the next owner thousands of dollars on heat and hydro. Some improvements like quality insulation and energy efficient furnaces will add value right away. Others, like photovoltaics, take a long time to pay for themselves, and may not appeal to all homebuyers either. Tread this road with caution, unless the reasoning for your renovations is to be Green as in Earth-friendliness, not Green as in rich!

If you found this list helpful, why not email it to a friend, or save it to your browser's favourites so you can come back to it later? We hope to see you back here soon!

Whether you were trying to spruce up that old home of yours for resale, or looking to make your new house a little more homey and a little more personal, you've probably been bitten by the renovation bug at some point.

When the urge to revamp strikes, you could always call reliable contractors and get estimates to have them take care of the project (hopefully seamlessly.) 

But if that's not in the budget, or you prefer to do things yourself, you might find yourself in need of guidance on how to make your vision come alive. (Or else you might end up with a scene like the one depicted in that "unmotivation" poster above!)

In this post, we're going to provide you with five of the best resources we've found online for teaching you how to do almost any renovation or repair project on your home. So get out your pen and paper and write these sites down, so you'll know where to find them later when you just can't wait to start knocking down walls!

1) The DIY Network: 

This comprehensive site, which is run by popular home improvement network HGTV, is completely dedicated to providing easy-to-follow video guides for any do-it-yourself project you can think of, including home renovations. From Installing Cabinets to tricky Plumbing and Electrical jobs, this site has videos to tackle whatever you're trying to do.   

2) The Green Home Guide:

As concern for the environment grows (as well it should), it is becoming more and more common for homeowners to be worried about the green-ness of their renovations. If you fall into the eco-conscious renovator category, you won't want to miss this excellent site. 

It is provided as a free resource centre by the US Green Building Council (Creators of the LEED standards for green homes that is also promoted by the Canada Green Building council north of the 49th, and has been mentioned on this blog before.) It is all about ways to make your home renovations as green as possible.

3) CMHC Renovation Planner:

I'm sure you've heard old adages like "measure twice, cut once" and "an ounce of preparation is worth a pound of cure." (And then there's "don't use too many cliches in your writing in order to keep it fresh", but I digress.) The point is, with a renovation, like any other endeavour, it can really pay of to plan carefully before you start tearing down walls and replacing fixtures. 

Luckily, the Canada Mortgage and Housing Commission (CMHC) provides the most in-depth guide I've seen online for choosing and executing renovations based on need, cost and return on investment. Definitely worth a read.

4) eHow Building and Remodeling How-Tos

In this age of web 2.0 collaboration and wikization of the web, I would be remiss if I didn't include the foremost for-the-people-by-the-people how-to resource online, eHow. This site is a sort of grassroots organization similar to wikipedia, where anyone who signs up can write or edit articles on myriad different subjects. The only difference is that on eHow, articles must be guides for completion of specific projects, and members can vote these up or down so that, in theory, the cream rises to the top. These are also supplemented by a number of expert-written guides. 

The site features nearly half a million different articles, nearly 5000 of which are on the top of home remodeling and repairs (the section linked to above.) There is also a burgeoning how-to videos section of the site as well, the Home and Garden section of which can be found here. Between this site and the DIY network, you should be able to find step-by-step instructions for completing whatever project you have in mind.

5) BEHR ColorSmart Color Chooser

As the former owner of a professional painting company, I may sound biased in saying this, but we all know that every reno ends with a paint job. And whether you tackle it yourself or pay a pro to take care of it, at some point you're going to run up against the age old question: "What colours should we choose?" 

Of course, if you're priming your home for sale (no pun intended), I had some advice on choosing appropriately neutral paint colours in a previous article about prepping the interior of your home for sale. But if you're renovating and choosing paint colours just for you and yours, then the sky is the limit. The problem with deciding on colours, however, can often be that it is difficult to visualize them in your home from those small swatches. 

Enter BEHR's excellent ColorSmart tool. With this utility, you can choose a model of room that is similar to the one you'll be painting, and then simply point and click to see how different colour combinations will look together. The site also makes suggestions for complimentary colours and the like. All in all, well worth checking out for anyone struggling with visualizing that final touch.

 

There is also a paid service offered on the same site that allows you to upload actual photos of your home and colour them using the ColorSmart system, instead of using computer models. I'm not sure this is really necessary for most people, but if it interests you, it's only 5 bucks a year for unlimited use.

Of course, this list could go on, there are hundreds of thousands of sites on home improvement on the web, but these are the five that we've found to be the most thorough and comprehensive of the bunch. 

What do you think, do you find them helpful? Are there any resources you would add to the list? Let me know in the comments, and I maybe lengthen the list to 10 at a later date. 

An attractive entryway. (Creepy head statue optional.)

SELL THAT HOUSE: It's What's Inside That Counts

Two weeks ago, we looked at 3 Ways to Give Your Home Killer Curb Appeal and promised that we would follow up soon with a guide for how to spice up the inside of your home for selling as well. Here it is.

As with the exterior of your house, the first impression that any prospective buyers will have when they enter your home is always the most important thing to consider when trying to sell. So here are The Best 2 Ways to Make Your Home Interior Irresistible.    

The Grand Entrance

When a prospective buyer walks into your home, what is the first thing they will notice? Will it be scuff marks on the floors and baseboards and nicks and stains on the walls? Or will it be a pristine entryway that shows everyone just how well you take care of your home.

This is one of the easiest, but most effective things you can do to up the resale value of your home. Those nicks, scratches and holes in the walls? A little putty and patience will make quick work of those. This helpful guide can help you with smaller repairs, and this nifty trick is great for larger holes.  

Once the repairs have been done, a couple quick coats of a neutral colour like a light beige or off-white will give the room a certain newness that will speak volumes to anyone thinking about buying your home. (More on paint colours in the next section.) 

If the thought of repairing drywall and spending two days painting gives you the willies, it may be worth looking at hiring a professional to do the work. You can often find some reliable contractors to provide estimates on sites such as Craigslist.org and Kijiji.

Or, if you are located here in the Ottawa area, drop me a line here and I'll be happy to put you in touch with some reliable local painting companies -- I owned a painting company here myself for four years and know the industry well.

As for the floors, most stains on ceramic and hardwood or laminate can be removed with a little soap and elbow grease. (Be careful not to use abrasive cleaners on hardwood, however, as they may damage the veneer.) For really weathered hardwood, hiring a contractor to sandblast them can be a great option to renew the look. 

If you're working with old linoleum, you might consider putting down ceramic tile or laminate, as the cost can be quite affordable considering the improvement that such a makeover will make.  

Neutralize, Neutralize, Neutralize

While painting the entryway may be one of the most important things to do, there are probably some other walls in the house that could use the touch of a brush and roller, too.

Ask any realtor or home renovations expert and they will tell you that applying a fresh coat of paint to the interior of your home is one of the best bang-for-your-buck ways to increase its appeal to potential buyers. 

Your main concern here, if the header above didn't give it away, should be to keep a consistent, neutral tone to the colours on the walls. 

I know, I know, you thought that eggplant and khaki green motif in the living room was positively to die for, but, well, taste is a funny thing, isn't it? 

It's best to stick with colours that have some life, but don't detract attention from the home itself and the furniture. For this reason, I usually recommend going with a warm beige like the one in the picture at the top of this post, rather than a muted off-white, but both are preferable to vibrant primary colours and the like.

By the way, this goes for kids' rooms too. You know Little Joey's childhood refuge, with a jungle motif plastered on all four walls? Well some prospective buyers may have wanted that room for an office. Or to house a child who has outgrown that particular safari obsession. 

As much as it hurts, it's best to cover any elaborate motifs and kid-friendly colours with neutrals as well. 

(Hint: If you're covering a mural or bright vibrant colour, use a solid white primer before painting. You'll thank me later. By the way, aside from the use of tinted primers as bases when painting rich colours, the former is the only time you need to do a full prime indoors. Don't let anybody tell you otherwise.)

While we're on the topics, I'd like to warn you against some common shortcuts people will take, or ask their painting contractors to take when doing a "freshen-up" paint job on a to-be-sold home. 

• Doing, or asking a contractor to do only one coat. On anything. A proper paint job always requires two coats and it will only look streaky if you skimp. Yes, this includes painting white over white walls, because your old walls are no longer white but actually yellowed.
• Painting the baseboards and trim the same colour as the walls. The amount you'll save on paint and labour doing this is not worth it for how stupid it will look when finished. Trim is meant to frame the room, and can only do so when it is white or off-white (or in some cases varnished natural wood) that contrasts with the wall colour.
• Worse still, painting doors the same colour as the walls. Again, this will not save you enough money to justify the tackiness of the end product. Also, as an aside, intelligent people will still be able to find the door, so even the camouflage argument does not hold up here.

If you are planning to do the job yourself, this guide can be helpful to get you started. If you see the value in paying someone else to do the work, see my notes above for help in finding a reliable contractor.

Next Stop: SOLD!

Once you've applied a nice neutral colour to all the walls, and really taken the time to make the entryway pop, you'll be well on your way to wowing potential buyers right off the bat, and putting them in the right mood to see your home in the positive light it deserves. 

If you have the time and the budget, other places worth sprucing up are the kitchen, the master bedroom and the master bathroom. Sometimes the smallest improvements can make a big difference in these hyper-important areas of the home. 

So, what do you think, have any tips and tricks to add? Have you had any experiences, good or bad, in making these types of changes? Did they help sell your home? Let us know your thoughts in the comments!

SELL THAT HOUSE

Good real estate agents are difficult to find, but they can be extremely helpful and can make the process of selling your current house and finding your dream home a lot less laborious. 

Here at NewHomeAssociation.ca we even offer some links on our Resources page to help you find a realtor you can trust in Ontario because we know how important that step is in any housing transition. (Similar sites exist for regions across North America, and look out for a post here soon rounding up many of these resources.)

But there's more to the story.

You see, we also know that real estate agents are human like everyone else and are driven by the same types of incentives as the rest of us, and we think these are facts that every homeowner should be well aware of when buying or selling a home. 

So What is Freakonomics and What Does It 

Have To Do With Selling My Home?

The "Commission Conundrum" referenced in the title refers to a dilemma outlined in the excellent book Freakonomics: a rogue economist explores the hidden side of everything, by economist Steven Levitt and author Stephen J. Dubner (they also have a great NYTimes blog by the same name here.) 

This book is a really great read, full of off-the-wall social and economic analyses of things like the correlations between race, child names and success and the statistical propensity of drug dealers to live with their moms. 

And among these nuggets is a full chapter on real estate agents and their motivations that I think should be required reading for every homeowner thinking of selling.

Of course, being the busy people you are, you might not all have the time to go out and read their book right away, so this post will describe the Steves' theories briefly and explain how they relate to you and your home sale.  

Different Paychecks, Different Pages

The main point to remember when you are selling your home is that you are selling your largest asset. Your realtor, regardless of their competency or integrity, is not. 

They may be guiding you and helping you along the way, but ultimately they are conducting a business transaction for an asset that has no bearing on their own net worth, and it is best not to forget that.  

So what does this mean?

Well, quite frankly, it means that in order to make sure you get the best possible 'buck for your bang' when you sell your home, it helps to understand your agent's own motivations so that you can guard against any rash decisions that may not be in your own best interest. 

'But my realtor is so nice... how could their motivations in selling my home be any different than mine?', you might ask. 

Good question. 

Well consider this example given by Levitt and Dubner in their book: If an agent holds out for an additional $10,000 on your $300,000 home, that's a big deal for you, right? There's a lot you could do with 10 grand, I'm sure. 

But when you consider that the realtor's 1.5% commission take (half of the 3% average commission, with the other half going to the real estate co) on that large sum is only $150, you begin to see how your motivations might be a ittle bit different than theirs. 

Just think- If you were a realtor and could seal the deal right now and forfeit just $150 out of over $4500 in commissions so you can move on to the next deal, or hold out an additional week to make sure your client gets full pop, what would you be inclined to do?

Steve and Stephen even take their observation one step further, pointing to a study that shows agents on average keep their own homes on the market 10 days longer than their clients' and sell them for 3% more as well. 

Interesting thought, isn't it?

So Now What?

Ok, so what does all this mean anyway? Does this mean all agents are selfish and untrustworthy? Hardly.

Should you swear off realtors and their poorly incentivized commission structure for good and go the for-sale-by-owner route? Well no, we don't think that either. 

Because as with hiring lawyers to navigate the law and accountants to do your taxes, competent, trustworthy professionals are usually worth their weight in gold. But it never hurts to understand the motivations of your business partners, and that's exactly how you should view your realtor.

You can minimize your exposure to this type of risk by a) finding a realtor with integrity (as money-hungry agents may be more likely to try and churn volume sales), b) stowing in the back of your mind your understanding of your agent's motivations throughout the process and c) holding your ground when you don't feel like you're getting the cash you expected for your most prized asset. 

By doing these three things, you are more likely to have a smooth home-selling experience thanks to your realtor's expert guidance, and one that doesn't leave you $10,000 poorer than you ought to be thanks to your understanding of the incentives involved in the sale. 

How about yourself - have you ever sold a home? If so, how did you find your experience working with a realtor? Have you ever encountered this disconnect of incentives first hand? Let us know in the comments!