Averbach Mortgages
June 2009
Averbach News
Mortgage Solutions Made Easy
In This Issue
Sold My House in a Week!
June Market Update
Refinancing in the Perfect Storm!
Summit Club

Five Year Anniversary

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Dear , 

Wow, has this ever been a busy couple of weeks for Lisa and I. In addition to doing all of my regular work, Lisa and I decided to sell our house. It was a whirlwind process.  We sold it in less than a week and completed all the paperwork on Monday. I wrote a short article about it, because in addition to selling the house FAST, we got multiple offers!

I have developed a great strategy for all my clients who are interested in refinancing and locking in the low interest rates. These rates WILL NOT be around forever, so it is worth taking the time to see if you can benefit. If you are interested in putting $10,000+ in your pocket, check out the refinancing article below.

As always, we are only a phone call away, so be sure to contact us if we have left any of your questions unanswered, or if we can help you in any way.


Sincerely,

Mike Averbach and Justin Blacklock

Sold My House in a Week!

Sold in a Week!My big news is that I Sold my house in less than a week, with multiple offers!


With all the gloom and doom reporting that we see on the news, the fact that people continue to buy and sell seems to have escaped the media attention!

Last week Lisa and I sold our house. We put it up for sale, and ended up accepting one of several offers to buy. From our decision to sell to the removal of all "subject to's" the process took less than 9 days.

When we tell people this, they are totally surprised.

Were we surprised?  Well, a little. We thought maybe it would take two weeks!  The fact is Averbach Mortgages has been setting up mortgages for our clients on an almost daily basis in spite of the economy so we knew the house would sell.

House Back Yard --- sold in a week!When I asked why the house was able to sell so quickly, our agent, Simon Clayton said "The market in Vancouver is hot. Real Estate markets are localized and while the world's economy does affect prices we are still living in the best city in Canada and have limited land to build on. We saw a drop in prices and sales in the last 6 months of 2008 which have now rebounded to record levels. Mike's house was top quality and one of the best houses I have ever seen built on a 33' lot in Vancouver! Quality always will retain its value and buyers who saw the house understood what made it stand out from other newly constructed homes."

While I had Simon on the spot, I asked him, "What can my clients do to sell their home faster?" Simon said, "Price the home correctly. Understand what is happening in the local market. And understand why your competition sold at one price while your home might be worth a different price. Help your agent by listening to tips and tricks on how to increase how many people will want your home. It isn't a bad idea to spend some money fixing up some parts of your house. You will see a return either financially or the benefits on your home selling quickly. Hire a good agent who knows the market and has proven success. Don't rely on thinking the house will sell itself. You need to have a marketing plan and an agent who knows how to handle the process."

In all, we received 2 offers after 1 open house. Simon listed our house on MLS; advertised in the Vancouver Sun; advertised on his website; had a professional video and photos done, as well as a full colour brochure for each buyer. The house effectively sold in 1 week.

Why did we sell?  Ask Lisa!


Contact us NOW to find out about obtaining the BEST mortgage at today's lower rates.

Mike Averbach 604-710-2550
Justin Blacklock 604-736-1855

June Market Update

Here's a market update from our friends at Macdonald Realty; Simon Clayton, Kristie Marsden, Jason Low, Sandra Ens, Jason Feinstadt and Jenny Stephanson.


Welcome to the Macdonald Realty Market Update

Each month, we provide you with valuable information to help you in your decisions related to real estate. It is my intention that armed with this knowledge, you will be able to make a more informed choice of whether to buy, sell, or hold.

Pricing it Right

Summer is underway and the housing market is showing surprising strength following a chilly Winter. For those of you thinking about selling, it is important to realize how vital the Art of Pricing is to the sale of your home.

All sellers want the highest price possible for their homes, but the strategies to get there are not always intuitive. In certain circumstances, pricing low can be more effective than pricing high, while in others, pricing above market value can be a winning strategy. In most cases, however, the optimum pricing strategy is to price within 10% of market value and let the market decide. After all, the 'list price' comes with a caveat: Or Best Offer.

Top Reasons for NOT Pricing High:

  • You lose out on potential buyers who put a price cap on their property searches.
  • Serious buyers question the motivation of a seller with an overpriced listing.
  • You provide a strong comparable for your neighbors who are properly priced. You are effectively selling other peoples' well-priced homes.
  • Buyers assume that properties which remain on the market for long periods of time have something inherently wrong with them.
  • Other agents will be more hesitant to show your home.

Many factors come into play when it comes to pricing your home and a professional can help you through that process. To find out more, please feel free to contact me at the address above.



Average Home Prices:

See the Average House Price comparison chart for Greater Vancouver, Victoria, Kelowna and Edmonton.

Visit our BLOG for more information and advice on dealing with Vancouver's current housing marketplace.  And for links to our friends at MacDonald Realty.
 
Refinancing in the Perfect Storm!
A Refinancing Strategy for today's volatile market


The Perfect StormWith the historic-low interest rates now available, many people are interested in refinancing to save money.  The problem is (with most mortgages) the penalties are too high to make this a financially viable move. 
 
In order for refinancing to make sense, you should end up with money in your pocket. The overall savings generated by a lower cost mortgage should be more than the refinancing penalties incurred.
 
 
As long as mortgage rates stay the same or get lower, it is highly unlikely that you will see any benefit to refinancing because of the high penalties ... although there is a further benefit of having a fresh 5 year term as we cannot know what the rates will be when your current term comes up. One thing we are sure of is that rates will be HIGHER.
 
As mortgage rates go UP, the refinancing penalties go down.
 
IF you take action now you could benefit greatly when mortgage rates start to go up again. Currently, some lenders still have their 5 year fixed rates in the 3.79 - 3.89 range (see our rates page). These rates have never before been offered and may never again...in our lifetime.
 
What we do is get you the BEST rate we can and lock in the offer. Depending on the mortgage company we can lock in for 3 to 4 months and can often renew for another 3 to 4 months at a time.   Then we wait.  At some point the mortgage rates are going to go up again. 
 
At the point where you are actually saving enough money to make the transaction worthwhile, we finalize your refinanced mortgage.
 
IN A NUTSHELL:
 
1. You lock in a rate-hold today via a pre-approval application while the interest is low.
2. You wait till the mortgage rates start to increase.
3. When the mortgage rates go UP, your penalty for refinancing goes DOWN. 
4. When the transaction generates a positive cash savings for you ... we refinance at the lower rate, with the lower penalty.
 
What do you need to do?  Call us. We'll let you know if this strategy makes sense for YOU!
 
Averbach Mortgages
604-710-2550

We save you time. We save you money. We get you the you the best mortgage terms at the best interest rates possible.

If you are:

  • purchasing your first home
  • refinancing
  • renewing an existing mortgage
  • investing in real estate
  • consolidating your debts
  • experiencing current or past credit issues

We have the solutions that work for you. 

 

Mike Averbach
Averbach Mortgages