More and more young people cannot afford or qualify to buy a home today, and it's not because of real estate prices. Thanks to new policies by the Federal Government, mortgage costs are way higher than they need to be. First the Government set a qualifying rate of 4.8% for mortgages. Did you know that you can get a 5 year fixed rate mortgage for under 3%? Think about it, we don't have qualifying rates for credit cards or car loans, maybe we should. Next the Government introduced new rules for insuring mortgages that eliminated many lenders for borrowers. Only the banks were able to do these types of mortgages. The end result has been that banks have increased both their market share and the interest spreads on mortgage rates this year. With less competition, consumers get to pay way more. So interfering with the market is never a good ...
Why Millennials Can't Afford to Buy Real Estate
September 7, 2017
Purchasing a Condo with Kitec Plumbing
August 2, 2017
Kitec is a brand of plastic piping used in residential construction between 1995 to 2007. That means most condo buildings built during that time frame have used it. Kitec is vulnerable to premature failure and many buildings and condo owners have elected to replace it before it causes severe water damage. So what should you do? When you discover the existence in a status certificate, I would not reject buying the condo outright. You may never find the right property for you. If it is just in the condo unit, the cost to replace it is between $5,000-$10,000. So why not do an amendment to reduce the purchase price by that amount. If Kitec is in the common condo areas, to replace that would require a special assessment of each condo owner of about $3,000-$5,000. Again, why not do an amendment to reduce the purchase price by that amount ...
The Problem with Posted Listings
July 26, 2017
Today I want to talk about posted listings. Posted listings are those where a Seller wants to list their property on MLS. They pay a Broker a minimum fee to put it up then other brokers have to deal directly with the Seller. RECO says that this is all right. It used to be that when you listed a property, a REALTOR® had numerous obligations to the Seller and was liable for the information posted on MLS. Not anymore with posted listings. It's the wild, wild west! Deal with the Seller direct and try and figure out what they're selling. Many agents avoid posted listings altogether. It's too much work trying to educate the Seller. Those agents who attempt it, have to do both sides of the transaction. Represent your Buyer then do all the paperwork for a non-existent listing Brokerage i.e.: double the work for half the commission. ...
Can 'Coming Soon' Signs Hurt Sellers?
April 11, 2017
"Coming soon", what is that suppose to mean?! I've heard of "for sale" and "sold" and even "sold conditionally", but "coming soon"? Coming Soon means a listing has been signed, it's coming to MLS, but no one can do anything but look at the sign. Does this work for the Listing Agent? Absolutely, they're hoping for sign calls. The Agent wants to line up potential buyers, maybe even take them through the property when no one else can. Does this help the Seller; after all, this is what it's all about? Not really. Do you think potential Buyers will see the "coming soon" sign and stop looking at other properties? Not likely. If I was a Seller, I would get it on the market right away, or I would get my ducks in a row and make a big splash putting my property on MLS. "Coming soon" sounds like you're ...
How to Compete and Win in a Bidding War
February 27, 2017
Today's market is dominated with multiple offer sales. Many people have to make 6-8 offers to finally land that property. So, how do you compete and win in this market. Here are 5 easy steps to follow. 1.Market Analysis First, realize that many properties are under priced to attract multiple offers. You should first do a market analysis to determine the market price of the property. 2. No Conditions Secondly, you need to go in with no conditions. Get a home inspection or status certificate ahead of time. Make sure you have financing for the price you want to pay. 3. Big Deposit Come in with a big deposit. The norm is 5% so come with 10%. 4. Save Some for Round Two Usually there will be two rounds of bidding. Save something for the second round. 5. Pick a Maximum Number Pick a maximum number you will pay for ...
Can You Believe How Few Sales Most Agents Do?
January 30, 2017
When the public tries to negotiate the commission down or tries to get a buyer rebate, their assumption is that all agents are the same. If all Agents were the same, then picking the agent who agreed to your request would net you the most money, but they are not! Did you know in 2016, there were 48,000 agents in the Toronto Real Estate Board? Did you know almost 13,000 agents did not do even a single sales end? And, there are two sales ends to ever sale, a list end and a buyer end. Did you know 25,000 agents, or over half the members of the Toronto Real Estate Board, did two sale ends or less in 2016? These are the agents that will offer you the type of deals you're looking for. Who do you want to represent your interests when buying or selling a property in Toronto ...
Renting in Toronto: A Word of Advice
August 23, 2016
It's rental season in Toronto so it seems fitting to bring it up in this weeks video. 15 years ago leasing was just a small part of the overall market. Today, the market for renting condos is two times bigger than for condo sales. Now, that is good for young people who want to live downtown, but it 's bad for our industry when it is only inexperienced or new agents who represent tenants. In the past week, for example, we have had two REALTORS® drop off deposits on a rental condo before the offer was even accepted. So what do we do with a cheque that we receive? We deposit it of course because we are responsible for the money. 24 hours later, when the offer isn't accepted, the potential tenant or the newbie agent wants the cheque back, but guess what, there is afive-dayy hold. That's the bank's ...
Buying a Condo: The Three Biggest Questions to Consider.
August 17, 2016
Buying a condo, or any property, is a big decision. Especially if you are a first-time buyer about to make the plunge into the real estate world. Yes, there are plenty of things to consider before you even make the decision to buy, but when you're ready to go out and choose your new home, here are the three questions you should make sure to ask yourself first. Space How Much Space Do You Need? In the Toronto market, you can get a giant detached home or an itty bitty condo. Before you start looking make sure you have an idea of what you're looking for. How many bedrooms do you need? Do you require a certain amount of square footage? Your budget may have a big influence on the amount of space you can get but the last thing you want is to purchase a small space when ...
The Cost of Flipping Properties
August 5, 2016
Flipping properties is becoming a hobby for more and more people and that is a scary thought. So what do we mean by flipping? You buy a property, do some minor or major renovations and sell it 6-12 months later. Sounds simple enough, but here is the reality, flipping properties only works in a rising real estate market. When prices cease to increase by 10% per year, it will end and fail badly for the inexperienced. Here is why; A flipper has to buy first, there are legal and land transfer costs. Next, they have to carry a property at a cost of 1% per month. Then, when they sell it at the end, they have more closing costs and commissions. Now let's say you spent $50,000 in renovations. Do you really think someone is going to pay you $100,000 for the same renovations? No! You would be happy ...
What You Should Know about Witnessing a Signature
June 29, 2016
Witnessing a signature can sometimes be a problem with newer agents and first time buyers who don't understand the significance. Every contract and amendment provides for a witness signature. What happens if there is no witness? Only a person present to see the signing can witness. You cannot witness after the fact. Does not having a witness invalidate a contract? No, it is still valid. If you have no witness a signee may argue that they never signed a document, this is rare and usually someone will compare all the signatures. So don't worry about a witness signature. It is nice to have but not necessary. Just think about electronic signatures, the wave of the future. There is no witness there, just computer proof through an IP address. Want to stay up to date on our monthly market reports? Subscribe