Part Time Real Estate Agents, they exist in our industry but how do we define them? Most people think that part-time real estate agents are those with a second job. Not me, I judge an agent on their production and time commitments. I expect someone to invest at least 40 hours a week in the business. We have agents who have another job but still spend 40 hours a week on real estate. Then, there are agents who do not have another job but only spend about 20 hours a week on real estate, and they only do a few deals each year. Those are the agents I would call part-time agents.You can tell who they are because they have a spouse who makes a lot of money, they inherited family money, or they retired with a big pension. In most jobs you retire and leave. In real estate ...
Part-Time Real Estate Agents
May 2, 2016
Married VS Common Law in Real Estate
April 21, 2016
Everyone thinks that married legal spouses and common law spouses have the same rights. Not so in real estate. If you are married you automatically have rights to the matrimonial home and both spouses have to sign off on any sale. However, common law spouses will not be a party to any real estate sale of the matrimonial home, no signature, nothing. After the fact, the common law spouse can argue in court that they have contributed to the household operation and are entitled to some of the sale proceeds. A better way is for the common law spouse to get their name added to the title of the property at the time of purchase. Much safer, and you avoid any legal fights when the property is sold later. We are not marriage councillors, just realtors, but that is what we explain to all young couples buying their first property ...
Market Report April-May 2016
April 19, 2016
Sales Commentary The spring market is well under way. Sales for March and the First Quarter on the Toronto Real Estate Board were an all-time record. Sales in March were up by 16% over March of 2015. For those wondering if these sales numbers are sustainable, just look back nine years ago to the previous peak and you can see that sales per 100,000 population are LOWER today than in 2007. However we do preach a word of caution. There is some ‘froth’ to this market and it is not related to the condo segment. Instead we would be concerned with the sale of houses in the two million dollar range in the 905 and areas beyond. Many baby boomers are buying, as they have seen prices increase in this segment by hundreds of thousands of dollars in the last few years. Their expectations are to resell in a few ...
Average Price: The Worst Statistic in Real Estate
April 5, 2016
The worst statistic most often quoted in Real Estate is the average sale price. Did you know that the average sale price of an area can change when there are no actual changes in prices of any real estate? This is because the mix of sales always changes over time. For Example, one month you can have one $1,000,000 property sale and nine $100,000 sales, the average price works out to be $190,000. Next month, 10 more sales of similar $100,000 properties will give you an average price of $100,000. The newspapers will report a 47% drop in average prices. If you look at the Toronto Real Estate Board, the average sale price in May is always higher than the average sale price in October, every year! Do you think sale prices fall every year throughout the year? No, it’s just the mix of sales that changes. There are fewer ...
Market Report March-April 2016
March 23, 2016
Sales Commentary The Toronto real estate market continued to outperform what most experts were predicting. TREB sales in February were up by 21% over February of last year. The mild weather certainly played a part. But ask those in the market and they will tell you that more and more buyers want to live downtown and yet available product is limited. It use to be that one sold their property first and then bought. Not today, as people will only list their property for sale when they have purchased first. This has created a log jam of potential buyers with prices rising too fast and with a market that will run well into the summer. The condo market was intended to be the safety value – supposed overbuilding would result in vacancies and falling prices. But condo sales overall are ahead by 26%. Downtown the increase is closer to 40 ...
How Do You Know When the Market Has Peaked?
March 15, 2016
How do you know when the market has peaked? That is the magic question that everyone wants the answer to. A great deal of experts or bears (a person who believes the market will drop) put too much emphasis on historical statistics like Property Price-to-Rent and Price-to-Average Income Ratios. This may shed some insight on the market but will never accurately predict a peak. The reality is that no one ever knows the peak of the market until after we have passed that peak. It’s only then that everyone has great rear view vision. The smart people realize the downturn first and they react first. In order for the Toronto Real Estate Market to take a turn , there has be a fundamental shift in the driving forces of demand (buyers) and supply (sellers) for anything to happen. Currently, even with Toronto’s construction boom, we have barely kept up to ...
Pricing Your Property Part 2: Pricing Low
March 2, 2016
This is Part two in the strategy of setting the right list price for your property. In Part one we talked about the problems of listing the property too high. This week we’ll be discussing pricing your property low to receive multiple offers. When the market is hot (more buyers than listings) then everyone would love to receive multiple offers. How do you create that frenzy? List the property juts below its market price. The lower the price below market, the more offers you hope to get and the higher the sale price will eventually be, just like a sling shot. The advantages to this approach are that it should sell quickly. That’s ideal for clients with kids. Hopefully you will also get an unconditional offer. However, there are risks. What happens if the best or only offer you get is just at your list price? Do you have to ...
Pricing Your Property Part 1: Pricing Too High
February 26, 2016
This week Inside the Real Estate Market we want to talk about the strategy in setting the right list price for your property. Most sellers set a price too high or above the market value. The rational is that they can just reduce it over time and maybe they can get lucky. The truth is most properties sell in the first 30 days. Most showings are in the first week. When your property is overpriced you miss all that activity and you follow the market down. In most instances you end up with a lower sale price then if you started at market value. The other problem is that the property will be on the market for weeks. If you are staging it, that can cost a lot of money. Also, you have to keep the property not just clean, but in show time condition at all times, and with ...
February-March 2016 Market Report
February 18, 2016
Sales Commentary The new year started the way that 2015 ended: with strong sales and price growth. That is what we called for in our 2016 Forecast. There seems no reason to change unless one foresees some significant shocks to the Toronto economy and we don’t. We realize that our Commentary may be of the ‘same old…same old’ stuff but we are more interested in being right than in being boring. In January, Toronto Real Estate Board sales were ahead by 8% over January of last year (and we will admit that weather had some impact). TREB’s own Home Price Index (not average price) was ahead by 11% from January of last year. Breaking these price increases down by area and property type produced a range of increases from a high of 16% for detached housing to a low of less than 5% for condos in Toronto itself! In the ...
February 11, 2016
It’s not uncommon for a Listing Agent in this Toronto real estate market to list a property at a lower price to get multiple offers. The Listing will usually include a notice that all offers will be presented at a set time 4 or 5 days hence. Then one buyer, through their Agent, decides to jump the Que. They offer well above the list price but make the offer irrevocable for only 24 hours. That is a Bully Offer. Now the Listing Agent must, by law, present this offer to the Seller for consideration. What else should the Listing Agent do? First, they should advise the Seller that they can accept the offer or reject the offer and wait for the presentation period for all offers at the agreed date. They should also do nothing until the end of the irrevocable period. Second, the Listing Agent must phone all Buyer ...