People looking to sell real estate will often host an open house. This means that prospective buyers are welcome to explore the property. This is different from private viewing appointments, as people are welcome to come and go as they please to view the home. Often a realtor or the homeowner will discuss the home’s attributes and price point during these events.

Hosting an open house is important to increase the visibility of the property. Anyone can go online to look up photos of the property, however, being able to experience it themselves can help potential buyers get a sense of how it would feel to live in the property.

Since they do not have to book an appointment, more people can view the home in a shorter amount of time. This leads to an increase in buyer interest, receiving more offers and shortening a home’s time on the market. In turn, this will aid in lower marketing costs. 

Aside from the property itself, it allows people to explore the neighborhood to see if it is a good fit for them and perhaps their families as well. When buying a home, getting to know the surrounding community is a great way to connect with the space.

Buying a home can be a stressful time, so being able to see the property and location to its fullest extent can relieve some of this stress. While the seller hosting an open house is given an opportunity to show off the advantages of the property and help find its next owners.

If you are thinking about selling your home, hiring a real estate agent instead of trying to do it yourself can be beneficial in many ways. They can help you receive a better offer and have your property on the market for a shorter time.

Real estate agents can properly price the listing through comparative market analysis and expertly handle any price negotiation with their years of experience. They also have marketing resources so the property can be exposed to many potential buyers.

Selling a home can also be a very time-consuming process. From hosting open houses and in-person viewing appointments to the extensive amount of paperwork involved. Having an agent take on this responsibility can help you have your property on the market for a shorter amount of time.

Not to mention, every transaction is nuanced. Even if you train yourself on the steps of how to sell a home, the crucial experience is not there. Real estate agents have learned experience from various transactions so they are the most qualified at handling negotiations. 

Essentially, real estate agents have the time, resources, and expertise to help you effectively sell your home. If you are considering hiring an agent, check out more information on our home page.

Staging is an important part of selling a home. It allows potential buyers to visualize themselves living in that home before they move in. There are some steps that you can follow in order to effectively stage your home and prepare it for viewing.

First, it is important to declutter the space. Moving items into storage and keeping a clean space will allow potential buyers to see the full potential of the property. It is also important to remove any personal items. One tip is to think of the space as a hotel room.

The furniture and lighting are essential as well for a properly staged home. The area should be bright so having the windows and doors open during an open house is crucial. The furniture should be placed in a way that allows for open space.

Of course, hiring a professional home stager can greatly help with their experience in interior design and knowledge of home buyers. Home stagers can bring in new decor and furniture to create an aesthetic that suits the target audience. 

Overall, it is important that buyers can connect with the space and staging is a great way to achieve this. Make sure to follow these steps to help sell your home!

Congratulations to Associate Broker Kamil Lalji for being rated the #3 agent in all of Calgary by RateMyAgent.com, the international real estate agent review site. After almost two decades in the real estate industry and being a local to Calgary, Kamil has shown his passion and knowledge for his work.

When representing any Buyers or Sellers, Kamil aims for client trust and satisfaction. He has strong negotiation skills and ethics and always keeps the client’s best interest in mind. He is a proven professional who has helped many find the perfect homes.

Although Kamil was rated #3 overall, which includes solo agents and teams, he was rated the #1 solo agent.

Tom notes that:

“Kamil went over and above in selling my condo, he developed high quality marketing material (pamphlets, advertisements etc) and was able to get above my expected sale price during the depressed real estate market over COVID. He was fantastic to work with, responsive and a great negotiator. I have recommended him to all of my friends and will rely on his services for future real estate investments.”

As many of you may be aware, the Bank of Canada increased the prime rate from 5.95% to 6.45% on Wednesday December 7, 2022. A move widely expected by economists, inflation remains prevalent on the global horizon, slowing economic growth in all hemispheres of the world. This increase will impact all debtholders, which includes those with mortgages to pay off – that is, those paying a variable rate mortgage. 

With interest rates increasing, now is a great time to understand what a trigger rate is. A trigger rate is the rate at which your mortgage payment will only be covering the interest. Since your mortgage payments are often fixed in a variable rate plan, this means none of the payment will go towards paying the principal. This is a worse case scenario you should avoid at all costs – as you will essentially never be able to reduce the debt to your lender. The issue is that you will have stopped paying off your loan – this can also be called negative amortization. It is highly recommended that with this increase in interest that mortgagees figure out what their trigger rate is. This can be easily determined by reviewing your agreement, or contacting your financial institution and lender. 

Example

Let’s say someone recently obtained a mortgage for $1,000,000 with an Amortization period of 25 years. If this loan was taken out in January 2022, the prime rate would have been 2.45% and let’s assume their interest rate was the same. The monthly payments would be $4,454.80. However, if this mortgage was acquired in December 2022 the borrower would then be paying $6,667.96 each month, this is assuming their interest rate equals the current prime rate of 6.45%. This goes to show the extremely large impact the rising interest rate has had on debtholders throughout the year 2022. Assuming this interest rate were fixed for the next 25 years as compared to a 2.45% interest rate, a borrower would end up paying $663,945.99 more in interest payments.

Suggestions

As a mortgagee, rising interest rates are something you never look forward to. However, they are inevitable and are vital to the stability of the national economy. What can you do to make sure you don’t break the bank with monthly mortgage payments? There are a few viable options. Firstly, you can also ask your lender if they offer an interest rate cap – this is the maximum interest rate your lender can charge on a mortgage. This means you never have to pay more towards your interest than the cap rate, even if interest rates continue to rise. 

Another option worth considering is making additional payments, which can be done two ways – increasing your monthly payment amount or making additional monthly payments . The key to saving money on your mortgage is to pay off your principal as quickly as possible. Your lender uses your mortgage payment to cover the interest first, before allocating it to your principal, and then your taxes and insurance in some cases. It’s important to note here that towards the beginning of your amortization period, only a small proportion of your mortgage payment goes towards your principal, though this gradually increases until your principal is paid off. 

These complications make it more tricky to pay off your principal quickly, especially in times where interest rates are rising. Making extra and/or additional payments, if it is an affordable option for you, is a great way to combat this. Your lender will apply any extra payments under the terms of your mortgage towards the principal – reducing this amount can save you up to tens of thousands of interest dollars. However, this option is not advisable if you are racking up debts with higher interest rates – you should work towards paying those off before making additional mortgage payments. On that same note, it’s a good idea to adjust your budget if you decide to make additional monthly payments to balance out our other expenses. Ideally, you want to avoid resolving financial issues in one area of your life at the detriment of another. 

The strategies discussed above also work well in the context of situations in which you reach your trigger rate. Though these are perfectly reasonable steps to take in these cases, we hope none of you get to this point – treating these solutions as preventative measures to avoid reaching your trigger rate is a best practice. 

Conclusion 

According to the 2016 Census, nearly 22% of all Calgarians live in a condo. This is quite higher than the overall Canadian statistic of 13.3%. Condos are becoming more and more popular as more people move into high density housing locations. 

With warm weather around the corner it’s a great time to find out of the box outdoor activities to try out. Horseback riding is a great way to relax, reconnect with yourself and nature, and try something new and exciting. Many people find horseback riding therapeutic, which is a perfect change for most peoples hectic lives. We have put together a list of Tripadvisor’s Top 10 Trail Riding Tours in the Calgary Area. This list will show the company’s rank, location, as well as a blurb the company has written about themselves.

The commercial real estate and housing markets move in a four-phase wave pattern known as the real estate cycle. Recovery, expansion, hyper-supply, and recession are the 4 phases of the real estate cycle. Whether you're a homeowner, renter, real estate investor, landlord, or real estate agent, knowing the real estate cycle will help you forecast future trends and make wise financial decisions.

The Origin

The term initially appeared when experts started researching housing market movements about a century ago. The federal government's regulation of national policy over the past few decades has led to a gradual evolution of the real estate cycle into the four stages we now know. Different real estate experts can utilize this cycle to forecast the ideal moment to buy, hold, or sell. Investors frequently use the real estate cycle, but it may also be helpful to agents, buyers, tenants, and others in the industry.

Phase 1: Recovery

The real estate cycle is circular; hence the recovery phase comes after the recession, even though the recovery phase is frequently referred to as the first phase. Since the vast majority of the public will still suffer from the impacts of a recession and have a gloomy outlook, identifying the cycle's recovery phase can be complex. To determine when the recovery cycle has started, experts look at trends like steady occupancy rises or increased demand. Investors in real estate must pay close attention to this stage and take immediate action when signs of recovery appear.

During this phase, many property owners will suffer from economic distress and may decide to sell their assets at a bargain. In order to take advantage of this recovery phase, investors tend to acquire these bargain-priced assets and hold them for future capital gains after the recovery phase is over. This is a great time to seize properties listed below market value. 

Additionally, many investors implement the value-add approach to boost capital gain. The value-add strategy is when investors decide to renovate and upgrade their properties to add more value. Although risky, both methods can be advantageous, especially as market rent increases, which accelerates after the economy enters the expansion phase.

Phase 2: Expansion

The general public's confidence in the economy will start to recover during the expansion phase. As a result, there will be greater demand for homes and other spaces, rising occupancy rates and rental prices. Furthermore, there will be a steady increase in job growth and new real estate developments.

As prices and rents peak in this period, investors who purchased properties at a bargain during the recovery phase can collect their capital gains by selling those assets now. Interest rates will presumably be low, and funding will be easily accessible because of the positive economic sentiment. Strong leasing momentum can help investors achieve their targeted returns; therefore, many will take advantage of the low-cost financing and spend their time and energy constructing or renovating properties. Considering that there is a less perceived risk during the expansion phase, this is also a suitable period to obtain value-added investment properties.

Phase 3: Hyper Supply

The hyper-supply phase commences when demand and supply no longer are in equilibrium, and the supply exceeds demand. The enthusiasm to develop or redevelop properties has caused an oversupply in the market, and the prices gradually start to decrease due to insufficient demand. Strong economic factors may cause rental rates to remain high, but vacancy rates will increase. As long as market inventory is high, the growth in new developments will gradually decline. 

During this phase, some investors with short-term holding objectives may be eager to sell because they are worried about the approaching recessionary phase. To survive the following stage, one must adopt an opportunistic approach. Many investors implement the buy and hold approach. Locating properties that could withstand the impending storm, then selling them when the storm has passed, and the timing is appropriate, is a common and effective strategy. 

Before the economy eventually enters the recession phase, the hyper-supply period often lasts for a very long time.

Phase 4: Recession

The early 2000s severe financial crisis, followed by a protracted recession, left the entire country in chaos for several years. During a recession, the supply of available properties outweighs the demand, which causes a sharp decline in real estate prices. The majority of landlords will experience difficulties due to increased vacancy rates, decreased rents, and a decline in rental income. The economic downturn will also result in higher unemployment rates, and tenants may seek rent breaks or reductions to stay. Consequently, some landlords are obliged to offer lower rent in an attempt to attract or keep tenants who are also experiencing the effects of the recession. 

Investors can benefit from the low real estate prices during a recession and purchase homes at a bargain. Due to a lack of market liquidity and demand, investors should be aware that this phase is considered high-risk and will likely have to wait for a considerable and indefinite length of time until property values reach a peak. 

Once the downturn has passed, the real estate cycle circles back, and the market starts to recover and eventually expand.

Calgary-based YYC Real Estate Advisors (Re|Advisors) launched specialized advisory services for trading and managing properties around Calgary and neighboring areas. YYC Real Estate Advisors are full-service, boutique real estate advisors licensed with CIR Realty, specializing in buying and selling homes within Calgary and the area. YYC combines top agents, cutting-edge technology, and a better way of doing business to serve our clients. 

Why Should You Build a Fence on Your Property? 

Fencing can add a range of benefits to your property such as: 

• Aesthetic Value 
• Pet Protection
• Noise Barrier
• Home Protection 
• Privacy
• Ability to add a pool

Determining why you want to build a fence will help you decide on the size, materials, colours, and style of your fence. If you are trying to block out noise, then a high solid wood fence is best. To improve the aesthetic value of your property then a smaller fence would work well. If you would like to still see through the fence, but keep out unwanted guests (or pets inside the barrier), then a wrought iron fence may work well for you. 

Once you have decided on what type of fence you want, you can then lay out a budget and timeline. 

Common Challenged for Building New Fences

Here are some of the most common challenges people have faced when dealing with new fencing projects. 

Fencing Size

Knowing the fencing size will help determine your project’s timeline and budget. Larger fences will require more time and more materials while smaller fences require less time and materials. 

When deciding to build a fence, you should also keep your neighbours in mind as to not pose a potential hazard to their property. Depending on where your house was built, you may have neighbourhood regulations regarding the type of fence you are allowed to have. As well, many times the cost of fencing between two homes can be split between neighbours, and built between the property lines. This conserves the most amount of yard space for both sides of the fence. It is a good idea to check with your neighbours and see what their thoughts of building a new fence would be if this is applicable for your property.

Materials 

Choosing a material is one of the most important steps because you have to keep Calgay’s climate in mind to make sure it can fare well in our winters. The following are some common fencing materials: 

Wood is a popular fencing material and stands up well to Calgary’s climate. It also comes in a large variety of sizes and designs so it can be very customizable to match your properties aesthetic. To keep up its durability, make sure you use a waterproofing sealant. Without sealant the wood will rot and weaken faster. As well, depending on if the fence is painted or stained, it could require yearly maintenance to keep up its appearance. 

Vinyl, unlike wood, won’t fade or rot over time. It has great durability, very little maintenance, with no paint or stain required. Since it doesn’t hold paint very well, there are however a limited number of styles to choose from. Vinyl can also be more expensive than wood. 

Wrought Iron fencing is a great option if your main purpose is to improve the aesthetic appeal of your yard. It has high strength, durability, and good security with the iron points at the top. This material is more expensive than others, as it has to be custom made. This type of fencing also gives minimal privacy, and is not the greatest for keeping small pests like rabbits or foxes out of gardens as they can slip through the pickets. 

City of Calgary Bylaws

There are four steps laid out by the city for when you are planning on building a fence on your Calgary property: 

Step 1: Review the Rules for Your Fence

• Typically a permit is required if any of these conditions apply:
  • In the rear yard higher than 2 m 
  • In the front yard higher than 1.2 m 
  • Inside a corner visibility triangle and higher than 0.75 m
  • Gate higher than 2.5 m
• In most situations a fence doesn’t require a building safety approval (building permit). If your design or location does not meet land use bylaw specifications you will require planning approval (development permit) 
• Any new fence construction is not permitted to extend onto City property. 
• If you are planning to have a pool/spa/hot tub on your property additional features must be added in order to comply with the Alberta Building Code 
  • Height of fence should not be less than 1.8 m above the ground
  • Any opening to the fenced area must feature a gate that is the same height of the fence and has a self-closing, self-latching device and can be locked. 
  • The distance between fencing pickets is limited to 10 mm

Step 2: Prepare Your Application 

• Using this Fence Permit Checklist you can determine the requirements for your application 
• This checklist explains what needs to be written up on your site plan and elevation sketch which includes: address, property lines, location of fencing, fencing material, outline of any other structures on the property,etc

Step 3: Apply 

• You can apply online using this link: https://apply.calgary.ca/. 
• You can also apply in person by taking all your necessary documents to the Planning Services Centre. 

Step 4: Inspections and Managing Your Permit Application

• Your permit won’t be given until your project has passed all the required inspections which verify the building safety or approval standards 
• To book an inspection with the city visit Residential Inspections
• If you want to change or cancel your permit visit manage your permit application. 

Always make sure you plan well ahead. Building a new fence on your property requires certain steps which must be followed for your safety. It also may take longer than you expect, so if you are serious about this type of project take your time and make sure everything is in order.

If you’re a pro mountain biker or just love the thrill of adventures, Calgary is the city for you!

The trails in and around Calgary have some of the most amazing views that you can’t miss out on this summer.