Renos that don't pay

HGTV - Channel 17 in Fernie. A television network dedicated to home renovations and improvements. There is no question of its popularity (#7 in specialty channels); it seems all Canadian homeowners are “reno crazy”.

Here are a few things to consider before you begin your next reno project:

1. Overbuilding for the neighbourhood. It seems impossible to build much smaller than some of the houses in Fernie, but try and keep in mind resale when undertaking a major reno or new build.



Homebuyers, and some more learned REALTORs(r), establish the value of a home based on the comparables in the neighbourhood. In general, homebuyers do not want to pay $450,000 for a house that sits in a neighborhood with an average sale price of $350,000; the house will seem overpriced even if it is more desirable than the surrounding properties. The buyer will instead look to spend the $450,000 in a $450,000 neighborhood. The house might be beautiful, but any money spent on overbuilding might be difficult to recover unless the other homes in the neighborhood follow suit.

Have a drive through the Annex, Downtown or West Fernie to see what I mean - try not to be the best house on the worst street.

2. Hot Tub/Swimming Pool

A hot tub will not always increase the value of your home. This depends dramatically on the buyer and what his or her preferences are. If this potential buyer has always wanted a hot tub, then it is a great investment. If the potential buyer does not care for hot tubs, then he or she is not very likely to pay extra for the accessory. Many people do not see hot tubs, saunas, swimming pools, etc. as being great additions to a home and/or see them as increasing the value of the home.

In addition, young families don't want to worry about their small children around an open body of water. Spend your hard earned money in other ways to increase the value of your property.

3. Extensive Landscaping



Homebuyers may appreciate well-maintained or mature landscaping, but don't expect the home's value to increase because of it. A beautiful yard may encourage potential buyers to take a closer look at the property, but will probably not add to the selling price. If a buyer is unable or unwilling to put in the effort to maintain a garden, it will quickly become an eyesore, or the new homeowner might need to pay a qualified gardener to take charge. Either way, many buyers view elaborate landscaping as a burden (even though it might be attractive) and, as a result, are not likely to consider it when placing value on the home.


4. High-End Upgrades

Putting stainless steel appliances in your kitchen or imported tiles in your entryway may do little to increase the value of your home if the bathrooms are still vinyl-floored and the shag carpeting in the bedrooms is leftover from the 60’s. Upgrades should be consistent to maintain a similar style and quality throughout the home. A home that has a beautifully remodeled and modern kitchen can be viewed as a work in progress if the bathrooms remain functionally obsolete. The remodel, therefore, might not fetch as high a return as if the rest of the home were brought up to the same level. High-quality upgrades generally increase the value of high-end homes, but not necessarily mid-range houses where the upgrade may be inconsistent with the rest of the home.

In addition, specific high-end features such as media rooms with specialized audio, visual or gaming equipment may be appealing to a few prospective buyers, but many potential homebuyers would not consider paying more for the home simply because of this additional feature. Chances are that the room would be re-tasked to a more generic living space.

5. Invisible Improvements

Invisible improvements are those costly projects that you know make your house a better place to live in, but that nobody else would notice -- or likely care about. A new plumbing system or HVAC unit (heating, venting and air conditioning) might be necessary, but don't expect it to recover these costs when it comes time to sell. Many homebuyers simply expect these systems to be in good working order and will not pay extra just because you recently installed a new heater. It may be better to think of these improvements in terms of regular maintenance, and not an investment in your home's value.

6. Big Box Renos

Be very mindful in the choice of materials for your renovation. In general a more neutral color pallet will appeal to more buyers but you also don't want it to look to bland and institutional. Avoid buying all of your material off the shelf simply because it is affordable. Invest some time generating creative ideas before you start buying your materials.





Please post you comments below

Thanks

New Listing - 4600 Timberline - Fernie Alpine Resort

This classic 2500 sq ft chalet has more than enough space for your friends and family. Located steps from Fernie Alpine Resort this home features 5 spacious bedrooms with 4 full bathrooms (3 en-suites), a large great room with wood burning stove and vaulted ceilings, elavated back patio with hot tub, and private waterfront access.




These properties are rarely
available for sale, don't miss your opportunity to own a piece of Fernie.



Check out the link to see more information about the property.

www.skihillhomefernie.com

New Listing - 3251 Anderson Road

3251 Anderson Road

3 bedroom home on acreage



Come and view for yourself. Five acres of pristine wilderness, five minutes from town, a network of trails to the Provincial Park from the property. A home full of warmth for the whole family. Plenty of space for toys & tools with a double garage and carport.




Check out the photo slideshow here:
www.century21.ca/ryan.frazer/Property/BC/V0B_1M0/Fernie/Anderson_Road/3251

Open House Sunday 5th, 2010
1 pm - 5 pm




Thanks

Ryan
ryan@c21maximum.ca

The Landlords Guide to the Galaxy

It’s that time of year again in ski towns all over North America... rental season. Fernie will feel less redneck and more culturally diverse for the next 5 months as a hodgepodge of ski bums roll into town by any means necessary. For local residents, it allows us to catch a glimpse of this year’s fashions and assortment of flat-soled shoes. As November rolls along, vacancies will become less and less, as all types of housing are rented.


Here are some tips to help make your job as a landlord easier:

1. Get it in writing. Create a contract, read the contract, explain the contract and make sure that you tenants understand the contract. Make an itemized list of all contents of the house and an addendum to the contract which stipulates what the tenants are permitted to do. If it is not in writing it is not part of the deal. www.rto.gov.bc.ca/documents/RTB-1.pdf

2. Screen the tenants and check references. Protect your investment and know who will be occupying your home. If you have a bad feeling about someone, trust your instincts.

3. Collect post-dated cheques or set-up email money transfers for rent. I personally prefer the email money transfers as they are instant.

4. Collect a deposit the day the tenants move in. DO NOT ALLOW TENANTS TO USE THE DAMAGE DEPOSIT AS THEIR LAST MONTHS RENT!! When it comes time to return the deposit, have your itemized list of the contents of the house available.

5. Keep emotions out of your business decisions. If a tenant is late in paying rent every month, it might be time to consider replacing the tenant. If you do decide to evict the tenant, make sure that you understand their rights and yours. www.rto.gov.bc.ca/content/rightsResponsibilities/ending.aspx

6. Try and rent the whole house/apartment out at the same time. Avoid putting yourself in the situation of acting as a rooming house manager. Remember that if two tenants both sign a lease agreement and one of them moves out, it is their problem to pay the rent, not yours.

7. If possible, have the tenants pay their own bills. This will teach them how to sit on hold with the phone, gas and cable company for hours at a time. As a landlord, you don't want to be chasing your tenants for bill payments, or be paying for the grow show in the basement.

8. Perform routine maintenance on the property and try and do a walk through once a month. Fix leaky faucets, replace furnace filters and tighten loose railings regularly. The more you are able to stay on top of the maintenance of your property, the better you will be able to sleep at night... literally.

9. Respect your neighbours; they can make your life easier for you. If your rental property is in a primarily family residential area ensure that your tenants respect local noise bylaws. In addition, keep the yard tidy and not looking like the local hell angels hideout.

10. Don't be greedy on your rent. Charge an amount that is reasonable to what you are providing. Fernie has a long history of slumlords over-charging for rent. In my experience, if you gouge the tenants for rent they are more likely to be disrespectful to you and your property.

Please post your comments below.

Thanks for reading

Ryan

Price reduction 1252 6th Avenue

The most affordable detached home in Fernie.

Excellent investment opportunity or great family home centrally located in the downtown area of Fernie. 3 bedrooms,hardwood floors and large backyard to enjoy. this home had been nicely renovated with new windows, new bathroom with water saving fixtures, stainless steel fridge and new insulation(spray foam insulation). Don't miss this opportunity to own in Fernie.

www.century21.ca/ryan.frazer/Property/BC/V0B_1M0/Fernie/6th_Ave/1252

$269,995 reduced to $259,995

Thanks

Ryan

Buyers Market?? Do they have those in Fernie??

Shopping for Real Estate in Fernie about 5 years ago was a much simpler undertaking. A small selection of homes to choose from, almost no negotiating leverage due to stiff competition; more often than not, your choice of home was based on availability. The situation was similar to going to a restaurant with only one menu item which is already in short supply, with a line-up of hungry customers waiting outside. This was the height of the seller’s market that has existed in Fernie for the past 10 years, until now.

Prices are continuing to drop, with no end in sight. 35% of all homes listed on the MLS in Fernie have experienced a price reduction in the past several months. Real Estate signs are popping up on lawns all over town like some sort of invasive plant species. 115 condo listings in Fernie, 84 house listings, there is no shortage of selection. We haven’t seen this in the valley for as long as I have lived here (11 years). It appears to be a buyer’s market, so why so few sold signs?

Back to our simple economics lesson from a couple of months ago: supply vs. demand. Supply is way up and demand is way down. There are many options for all buyers in all price categories. Buyers can afford to be choosy and sellers have reason to be nervous.

Before you add your home to the glut of listings already on the market consider the following:

1.What is your bottom line and is it realistic?

2.If you purchased your property in the past 3 years are you prepared to break even? Perhaps even take a loss?

3.Real Estate is a commodity not unlike a stock or bond… prices go up and down.

4.The world housing economy is in the toilet, why would Fernie be insulated from that?

There are a number of reasons for the sluggish market right now, the least of which being the bad snow year last year. Locally, I feel that there is a false sense of value placed on many of the properties for sale coupled with a hope that things will improve by morning. There is evidence to suggest that things are going to get worse before they get better.

The key to a successful sale right now is the right price and the proper exposure to the marketplace. Make your decision to sell based on hard facts, not on emotion. Have your REALTOR(r) show the comparables in your neighbourhood and more importantly what has sold. Remember, people can list their house for whatever amount they want - it doesn’t mean that it will sell. The numbers simply do not lie.

Please post your comments and feel free to email me if you would like any additional information.

Thanks for reading.

Ryan

New Listing - Unit 6 492 10th Avenue

Nicely renovated one bedroom condo located steps from the Elk River in the Annex area of Fernie. 4 Ensuite bathroom has been fully renovated with a new tile floor and tub surround.


Private, south facing balcony with separate entrance, covered parking, and new exterior windows and doors. These units are rarely avaliable for sale, don't miss your chance to own an affordable condo in one of the best areas of town.

$174,921








Thanks for reading

Ryan.
ryan@c21maximum.ca
(250) 531 0303
www.century21.ca/ryan.frazer