McClelland Minute - January 03, 2010

Helping with 2010 New Year Resolutions

Initiate a home improvement project.  Get written estimates from at least 3 contractors. Check references, preferably by viewing actual jobs they have done before.  Have a contract clearly stating what is to be done, by what date, and how change orders will be handled.  Ensure materials and fixtures to be used meet your specifications. Make progressive, not advance payments.  Make sure necessary permits are in place before starting.  Bring in an independent inspector to review work completion quality before making any payment and don’t make the final settlement until you are satisfied with the results.

Complete a home improvement project.  Unfinished renovations probably are one of the biggest sources of domestic unhappiness we see.  Just what are you waiting for?  Don’t have time? Lost interest? In over your head?  See above.  As Larry the Cable Guy would say: “Get R’ Done!”

Buy that first home.  Plan the work, and work the plan.  Find out how much you will need for a down payment.  Clean up outstanding consumer debt and fix your credit rating.  Sit down with a good mortgage officer.  When the time is right, recruit a Realtor who has a good track record with first time home buyers – he or she will be worth their weight in gold.  This is not the time to use your hair dresser’s first cousin’s boyfriend who just started in the business.  Interview two or three agents to see which one makes you the most comfortable.

Trade up to a larger home.  First, get yours ready to sell.  Remember value in the eyes of the buyer comes down to four key points – price, condition, location, and presentation.  Engage your Realtor early in the process.  His/Her advice can help you prioritize on what is important to do first, second, third; often we can save you money and time just by bringing focus to the situation.  With him/her, view several homes for sale in the price range and neighbourhood you think will meet your needs to get a sense of the next level of the market.  From my perspective, it is advisable to not make an offer on the property you are going to until you have an offer on yours.

Invest in real estate.  First ask yourself if you are you cut out to be a landlord?  Maybe farmland or a commercial building would be a better fit.

Buy a piece of recreation property.  Create a gathering place to have fun with family and friends.  There is a great selection right now but once the economy gets rolling again, the opportunities may diminish and prices will inevitably firm up.

Sell the large home you raised your family in, and downsize to something that is simpler to maintain and fits your current lifestyle.  There are lots of good condos on the market that would make an excellent home base, and a whole world out there to explore.  Time waits for no one; if you have good health and a few coins in your pocket, try out Victoria, Arizona, California, Mexico, Hawaii, or wherever that gypsy in your soul leads you. 

Wherever you find yourself in the real estate market, all indications point to 2010 being a pivotal year; one where there is more balance than we have seen for some time in the Midwest.

Vern McClelland is associate broker with RE/MAX of Lloydminster.  If you have questions or comments on this article or other real estate matters, he can be reached at 780.808.2700 or through the McClelland Group website www.mcclelland.ca

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