As a Buyer in today’s active and inventory-starved market, it’s entirely possible you will find your offer is one of several, even if yours was written first. Keep in mind the Realtor working in the Seller’s interest is duty bound to alert any and all prospective Buyers that an offer is forthcoming. It’s part of the Listing Realtor’s obligation to his or her principal.

So what can a Buyer do to help improve his/her chances? Consider making your first offer your best one, holding little or nothing in reserve. It should carry your best price as you likely won’t get another chance to improve it. Remember, other offerers will know they are competing as well. And make your offer as clean as possible. The fewer the terms and conditions you include, the more attractive it will be to the Seller.

And this I beg of you on bended knee — HAVE YOUR FINANCING IN PLACE . This is crucial. If a Seller has any reason to believe your offer may fail when you present yourself to the bank the next day you’ll likely lose, even if your offer carries the highest price. Shop for the money first, then the property. It’s the single best thing you can do to ensure your buying success in any market.

And be aware a Seller is under no obligation to counter your offer or to respond to it in any way. Yours may have been the first one written, but the Seller has the right to consider all others prior to responding to any of them – if at all.

Remember too, that if the Seller counters your offer it is at risk until you accept the counter. In the meantime, there is the possibility the Seller could rescind the counter to you and accept another before you have responded. With this in mind, you may want to accompany your Realtor and be on hand should some quick decisions need to be made.

If your offer is unsuccessful you may want to make a ‘back-up’ offer which, if accepted, would come into effect should the accepted offer fail for any reason.

Curb Appeal
Most motivated buyers will make a decision quickly. If your home doesn’t look good from the street, they may not even stop. Your trees, shrubs and lawn should always be in tip-top shape. Good landscaping is expected in this town, and will set the mood for purchasers before they get out of their car.

Overall Outside Appearance
Take a critical look at the exterior of your home - the purchasers certainly will. If it looks weathered or needs repair, take care of it. Don’t let the buyers be turned off by the outside before they can be turned on by the inside.

Paint the Front Door
Then brighten up the interior with a new coat of flat latex paint. Use an enamel for places that get a lot of wear such as the entry, bathroom and kitchen. These rooms warrant special attention and your efforts here will be rewarded.

Fix the Drips
Little things like a dripping tap can cause a buyer to worry about more serious problems. The concern is likely groundless, but once the impression is made the damage is done. Fix the little problems before they cost you a sale - squeaking doors, curling wallpaper, cracked glass and the like. You want the buyer to say: “Looks like an easy place to take care of - there’s nothing we have to do!”

Hide things that look like work
Put away - or at least neatly arrange - lawnmowers, hoses, vacuum cleaners, etc. and accent everything that looks like fun.

Harmonize the Elements
Dining room table set, music playing softly, drapes open, lights on. Lay the fireplace. An aroma of cinnamon or freshly baked bread adds ambiance - or try a drop of vanilla on a cold light bulb. If you smoke, an application of baking soda left on your carpets overnight and then vacuumed up is helpful. Remove anything of a political or religious nature that is in any way extreme.

De-clutter and clean
Remove unneeded items - they make your home look small. Sell, store or give them away. And clean..clean..clean! Put sparkle in; take silver out.

“Out, damned spot! Out, I say!”
Never stay in your home when buyers are passing judgment on it - please! Nothing personal, mind you - but they feel uncomfortable when you are around, and may not stay long enough for the mood to take. Like Dr. Seuss’ Marvin K. Mooney, Go, Go, Go - and take Rover with you. You’ll both enjoy the outing, and it’s much more likely I’ll be able to elicit a “Gee, it feels good here - like home!” kind of feeling from potential purchasers of your home. Remember, you never get a second chance to make a first impression. If you would like the benefit of a short video with further thoughts on how your home can make a good impression, just call or write and I’ll be happy to oblige without obligation.

Known as the ‘City of Gardens’, Victoria is also the provincial capital and offers all the amenities that a capital should – grand hotels, fine dining, shopping galore, top-notch sporting and cultural events, plus world famous attractions such as Butchart Gardens, the Empress Hotel, Royal BC Museum and Craigdarroch Castle. Whale watching and sightseeing are popular, and golf, tennis and sailing are year round pastimes!

Victoria Real Estate has proven to be an excellent investment over the years. Your choices range from affordable family housing and pastoral acreages, to condominiums and townhouses or stunning waterfront estates. It’s all here, and your dreams are limited only by your imagination and budget.

If you are considering a move to the Victoria area – or if you are lucky enough to reside here already – you will find this site will provide you with all the information you require. It has real estate listings and 360 degree tours for some properties. It features other resources as well, such as a currency converter, a mortgage calculator and the ability to paint a picture of your dream home. You’ll find helpful links to getting here, accommodation, education and local attractions. There’s even a little poetry for the lyrical. But if you don’t see what you are looking for, please contact me and I’ll work diligently for you – free of charge, of course – to help you find what’s right for you.

The whole question of multiple offers isn’t well understood, and consequently the public has lodged a significant number of complaints against Realtors of late as to the manner in which they have been handled. Let’s take a look at the issue from both sides — what happens when, as a Seller, you receive more than one offer on your property, or as a Buyer when you are on the other and less envious end of the stick and having to compete.

When representing you as a Seller, your Realtor’s job is to bring you not just an offer, but the best offer. Consequently, upon learning an offer is forthcoming on your property, he/she should contact everyone who has ever expressed an interest in it and invite them to compete. This might seem unfair to the first offeror, but a Realtor’s legal duty of loyalty to the principal — in this instance, the Seller — obliges him/her to do so as it is in the Seller’s best interest.

The offers will be presented to you by the Realtors acting for the potential Buyers in the order in which they were received. After each presentation the Realtor will be asked to wait outside until all offers have been put before you. After reviewing them with your Realtor you can decide whether you wish to accept any, or counter any. It’s important to know you are under no obligation to accept or counter any of them — although if one is full price or better and caries no conditions, it would be difficult not to.
If you find two offers appealing, you may wish to accept one and notify the second choice Realtor you would be prepared to accept a ‘back-up’ offer in the event the first collapses for any reason. It then becomes the standing offer should the first one fail.

It’s a double-edged sword however, and next time we’ll look at the same issue from the Buyer’s perspective.

Just what is Agency Disclosure and what are its implication for you as a Buyer or Seller of property?

In essence, it is a clarification of the different relationships between Buyers, Sellers and Realtors. It will eliminate the misconception that the Realtor you work with during the purchase of a property is ‘yours’, and looking after your best interest.

It will make clear just which party the Realtor is working for, followed by a written disclosure of that relationship. The Realtor’s role and responsibilities to all parties will now be set out and agreed to in advance of any transaction.

Why is it being done? Are Realtors being legislated into it?

No, it’s not law, but is being implemented as part of the Canadian Real Estate Association’s concern that the public doesn’t fully understand the Realtor’s relationship with Buyers and Sellers, and that it will be in the best interest of all to have a system of acknowledged disclosure in place which spells out the different relationship the Realtor has with all parties to a transaction.

In order that we better understand where things are going, let us briefly look at where they have been. Under the traditional ’sub agency’ system, when a Realtor lists a house for sale he/she becomes the agent of the Seller. Then, through the Multiple Listing System®, all other Realtors become the agent - actually sub agent - of the Seller. And under agency law they owe certain fiduciary duties to that Seller such as loyalty, disclosure and confidentiality. Note that as a Buyer, this puts ‘your Realtor’ on the Seller’s side of the fence. As such, you would not want to tell your real estate agent - or sub agent - anything that you would not tell the Seller - your motivations for buying, for example, or the maximum price you are willing to pay. If you do, the Realtor has a duty to relay that information to the Seller as he/she is legally obliged to represent the Seller’s best interests. Buyers have often misunderstood this agency relationship. They have often assumed they have had representation in a transaction and - understandably - were less than happy when they later discovered they did not.

Agency Disclosure brings things more closely in line with what the public has always supposed to be the case, for as a ‘Buyer’s Agent’ it is now possible for a Realtor to represent the Buyer’s interests exclusively. The ‘Buyer’s Agent’ is able to provide the Buyer with services that under traditional sub agency were not possible - advice and counsel on your bargaining position, pricing and competitive market information, for example - and generally work with the Buyer’s best interests in mind rather than those of the Seller.

Does this create an adversarial arrangement?

Not at all. It simply clarifies which side of the fence the Realtor is on, and to whom his/her fiduciary duties are owed. And either way, the obligation still exists to treat all parties professionally and honestly.

And does it mean the Realtor can no longer represent both Buyer and Seller in the same transaction?

Again, not at all - if both parties give consent. This is called ‘Limited Dual Agency’ and under this relationship the Realtor is ‘limited’ in several respects, such as not divulging the price the Seller is willing to accept or the Buyer is willing to pay, the motivation of either party to buy or sell, or personal information about the other - unless, of course, authorized to do so by the other party. Under Limited Dual Agency the Realtor is essentially a conduit between the two parties. As with Buyer Agency, you will be asked to consent in writing to this new arrangement prior to entering into any transaction.

Will it work?

It has so far. It has been practiced in Alberta for some time, with good reception from the public and little change in practice.

It was also tested in a pilot project in Maple Ridge, BC consisting of some 470 real estate transactions. At its conclusion both public and Realtors were almost unanimous in their preference for this new system.

If you would like the benefit of a short video further explaining Agency Disclosure, just call or write and I’ll be happy to oblige without obligation.

Lloyd Barnes and his wife Kathleen operate Penny-Farthing Antiques and Collectibles in Victoria, BC. Telephone: 250-658-4746

You have finished your spring cleaning and have found that you have a collection of unwanted articles. A good way to dispose of these items and also to earn a little money is to hold a garage sale. Here are a few tips which may help to make your sale a success.

Planning is important - answer the questions “When”, “What” and “How.”

WHEN
Chose a day convenient to most customers. Weekdays are obviously out as most people are at work. Sunday is Flea Market day, and many of your prospective customers will be at these markets. This leaves Saturday which, as it happens, is the most popular day. Start your sale at 8 or 9 AM and stay open until about 2 PM.

WHAT
The adage “What is one person’s junk is another person’s treasure” certainly applies to garage sales. You can sell just about anything - furniture, pictures, tools, glassware, china, silverware, linen, clothing, appliances, toys, books, magazines and even old paint. A word of caution - beware of selling potentially valuable items at bargain prices. If you have any doubt about the value of an object, don’t sell it at your garage sale. Take it to an auctioneer or antique dealer for appraisal and advice on the best way to dispose of it.

HOW
Advertise your event giving the time and place of your sale and some indication what you are selling. Place ads in local papers - some give cheap three day rates and supply “Garage Sale” kits. You can also put notices on local community bulletin boards for free.

Direction signs are very important as many customers cruise the area looking for sales. These signs should have your address and the time of your sale printed clearly in large letters. Place the signs at key intersections and along the routes leading right to your home.

Prepare your articles for sale. Clean items will sell better and will bring you more money. Price your stock fairly knowing that your customers will expect bargains and will barter. Remember, your aim is to get rid of unwanted articles and at the same time, make some money. Finally, a very important point - mark the price clearly on everything.

Ensure that you have enough tables. Card tables, TV tables, picnic/patio tables are very useful. If you need more table space, improvise using plywood sheets on boxes.

You are going to need some miscellaneous items such as change, wrapping paper and packing bags/boxes. You will require at least $30.00 in coins and low denomination bills. Newspapers will suffice as wrapping paper. Plastic bags are readily available from the recycle boxes at most supermarkets. The liquor store will give you some boxes - those with dividers are particularly useful for packing glasses.

Display your stock attractively on your tables, and put similar items together. Old sheets serve nicely as table cloths. Make sure you are ready for business by your advertised opening time.

Offer free refreshments such as coffee and, in summer, lemonade. This will get customers to stay, chat and most importantly, buy.

Some people known as “early birds” will arrive before your advertised start time, sometimes coming around the day before your sale. They could be your best customers, so if you have your stock ready, sell to them. However, if you do not want to deal with these people, stipulate “no early birds” in your newspaper ad.

You may be asked if you have anything else for sale. Beware of these queries as you could be persuaded to sell valuable items for next to nothing. In any case, for security reasons, never allow anyone to come into your home to view your possessions.

You will find that you are very busy at the start of your sale. If possible, have someone helping you at that time. Business will then drop off, and one person can usually handle the workload. When your sale is over, retrieve all of the signs which you posted.

You will undoubtedly have things left over at the end of your sale. You can still dispose of your unwanted articles in two useful ways. Either donate your goods to a local charity shop or sell them at an auction sale. Auctions of household goods are usually held weekly in most cities.

Your good planning will make your sale successful. As an added bonus, you will get to meet many of your neighbours. Have fun and enjoy spending your earnings.

With a Reverse Mortgage - as with a traditional mortgage - the homeowner borrows money with the property as collateral. Unlike a regular mortgage, however, the debt piles up instead of being paid down month by month.

The mortgage is paid off at a later date, usually when the house is sold. Meanwhile, the borrower gets some cash while retaining ownership of the house.

The money you actually receive can be taken as a lump sum and/or a regular series of payments called an annuity. The annuity can be for a set number of years - term annuity - or for life.

Typically you can borrow up to 40% of the value of your home. The older you are the more you’ll be able to borrow. The income you receive will be a factor of your age, current interest rates, and how big an annuity you buy.

The Reverse Mortgage, then, allows you to stay in your home rather than be forced to sell or rent. It can provide for an income supplement, travel, or home care expenses. It can also serve as an estate planning tool, allowing the passing on of money to children now - perhaps allowing them to buy their own home - rather than years later as an inheritance.

But are Reverse Mortgages for everybody? Almost certainly not. All other money alternatives should be investigated first, such as selling and moving to a less expensive property as you’ll face a substantial interest penalty if you want to pay the mortgage off early. And you may find that the compounding interest on your loan has quickly eaten up a surprisingly large chunk of your home’s worth, especially if the house hasn’t increased substantially in value.

The decision may hinge on how badly you want to stay in your home. If you love it and none other will do, the Reverse Mortgage may be a solution. If another home will do, a Reverse Mortgage probably isn’t appropriate.

Consider: will your home and neighbourhood remain suitable to you as you grow older? Are you comfortable with the debt? Can you afford the potential penalties? A life or term annuity? (Life annuities are best for those 70 and older; those closer to 60 might want to consider a term annuity as your longer life expectancy will greatly reduce the size of your payments.)

A Reverse Mortgage is definitely not a solution to a short-term cash crunch. And its major drawback is that it reduces the size of the estate you’ll leave for your children.

And they can be complicated, each with advantages and disadvantages, so be sure to have any contract reviewed by an independent lawyer with experience in this type of transaction.

This is a question often asked of Financial Planners and it’s a difficult one to answer! Let me begin with the following comment: It is always a good idea to pay down debt, because debt is paid with AFTER TAX dollars.

Having said this however, there are certain things that should be taken into account before making this important decision.

Suppose that, through saving or perhaps an inheritance, you have accumulated $50,000. The mortgage is $50,000 and so it seems an easy decision. Pay off the mortgage. Simple! Or is it? $50,000 placed in a solid income-producing mutual fund should average about 10% per year. In other words, the $50,000 should produce about $5,000 per annum before tax.

A $50,000 mortgage with the usual amortization and about 10% interest should cost about $500 per month or $6,000 per year. Why not invest the $50,000, and have the earnings pay the mortgage? O.K., I know that amounts to only $5,000 per year. What about the other $1,000, you ask? Well, can you afford about $100 per month in order to make up the difference?

Chances are you can, and if so you still have the $50,000 when your home is paid off because you have spent only the earnings. Had you paid off the mortgage in the first place, the $50,000 would now be gone.

On the other hand, it may be prudent for you to pay off the mortgage. Suppose you had contributed regularly into an RRSP, thus ensuring a financially secure retirement. In this case, paying down the debt might make good sense.

This might also free up more money per month to allow for higher RRSP contributions.

Other considerations are your age and that of your spouse and dependents. When do you want to retire and what kind of income will you need at that time? What is your present financial situation? The considerations are many and varied and a Financial Planner will ensure that you are aware of all the options. Probably the most important of all these considerations is what do you really want to do?

The bottom line here is that there are no hard and fast rules. Each situation is unique. A Financial Planner will not make up your mind for you. The Planner will be able to give you solid advice to enable you to make an informed decision. Once your are aware of all your options, the right decision will usually be obvious.

I would be pleased to answer this, or any other question, you may have regarding your investments.