Here’s a true story that occured back in 2006 which illustrates what can happen when you sell yourself or use the services of a “Home Advertising Company” to sell your home. Back then, I get a call from a lady I will call Doreen. She wanted a quick sale and was offered 185,000.00 for her small home in the West End.

The reason she called me was that she was curious about a home I had sold several blocks away from hers and she wanted to know if it would be worth the cost of a Realtor to sell her home.  Upon viewing her home, I told her that the home was worth  $ 220,000.00. She was totally shocked! After reassuring her that I was right, she wanted to list immediately.

I suggested that before we list her property on MLS, I show her property to a young man I had in mind. She agreed and on the weekend I showed the property to my prospect and sold it the same day for $ 220,000.00!

 Even after the commission, Doreen’s net sale was over $ 209,000.00! That means that she realized over $ 24,000.00 in extra cash by using my services. Not every case will be like this true story, however it illustrates the dangers of not knowing what your property is worth and not using the services of a professional who is in the business of selling homes and knows the market..

Let’s say that your present mortgage is about $ 70,000.00 and let’s say that you have about $ 70,000.00 in a savings account or GIC.  Now let’s assume that you would like to raise about $ 100,000.00 for investment purposes. It could be to buy more Real Estate or other type of investment. Here’s what you do, pay off the existing mortgage with your savings or GIC, place a new mortgage of $ 100,000.00 and invest the proceeds of the new mortgage. Now you have a mortgage that is tax deductible.

You can see that had you borrowed the difference of $ 30,000.00, your deductible amount would be $ 70,000.00 less and the $ 70,000.00 that you paid off on the old mortgage is reinvested so you’re not losing by using this strategy. Something to think about! 

With the advent of the Internet, the dynamics of Real Estate has changed significantly and so has the marketing to get the home Sold. Presentation and Market Position will determine whether the home will sell or not! A listing and a sign is no longer sufficient. The first showing is not an Open House; the first showing is on the “Internet”. Any second showing will be determined by how well the home is presented on the Net.  The second showing is when they actually come through the home to verify what they have seen on the Net.  Why is this important? It is estimated that 90% of homes now have computers so the shopping starts on the Net and the home has to make the first cut in order to get to the second physical showing.

The Net has given buyers the ability to shop a much wider distance from a preferred area and they can do it in a much shorter time than doing it physically, therefore presentation and market position are critical. For more on this subject, please contact me through my website contact page.