Durham Region Real Estate Blog

George & Ethel sunning on the ice.

Sometimes you get what you need, not what you want.

As I awake on a spring morning I’m always filled with anticipation of who has moved into the pond today. This morning bought a little suprise. It was so cold overnight that the part of the pond that had thawed was frozen again, but for a 3ft opening. Surely there wouldn’t be any visitors today. So imagine how happy I was to find one very sweet, Mallard couple had moved in. I wondered what they thought when they decided to leave their winter home and return for our wonderful, Ontario summer. “Ethel, spruce up your feathers, I’d like to head out now and beat the traffic home. We want to make sure the prime, summer real estate isn’t taken!”  Does Ethel wonder if her chosen mate is daft? Doesn’t he know that Ontario weather in March is unpredictable? Well, she need not have worried. Sure the weather turned bitterly cold, but her loved one provided. Maybe this small,open water isn’t the place they wanted, but it is all they needed…for now.

Home buying is just about the same thing. Some buyers are out there early, searching for the perfect place to call home. Others wait a little longer into the traditionally busy spring season to start their search. All buyers will find eventually find the right place. Maybe it’s not exactly what they pictured when they started out, but it is what they need for their family. And in the end, even if they think they have settled, it usually works out to be the perfect place. And once it’s no longer perfect they move on.

Which brings me back to the ducks. Ethel and George stayed for the better part of the day. Ate their fill, sunned themselves on the ice, cleaned and fluffed their feathers and then moved on. I’ve no doubt that their next home, no matter how long they live there, will be exactly what they need.

If you are thinking about buying a house in the near future, and if you are going to need a mortgage, you might want to call up your neighbourhood mortgage broker and have a mortgage approval done for you. You can then be locked in to the best rates they have available for today, before they go up tomorrow! The nice thing about pre-qualifying is that you aren’t completely committed and don’t have to purchase a home right away, but if you do find the place of your dreams, you will be able to get the best mortgage rate possible. If you lock in today at 3.69% or 3.84% and tomorrow the best available rate is 4.01% or 4.54%, you’ll get that great rate as long as you close on a house in the next 30 or 60 or 90 days (depending on the length of the rate hold you are given).

The second reason to discuss your options with a mortgage broker is so that you know, really know, what you can afford to purchase right now. If you allow them to pull a credit history on you and you provide all your current income information, they can tell you exactly what you can spend on your perfect home. When you are out shopping you’ll know that the house priced at $100,000 or $300,000 is within your budget and you won’t be looking at homes you can’t afford.  And there are great homes available for sale in every price range. So find out what works for you and then go out and have a look at what is available in your area.

If you have questions about qualifying or who to call or how to go about buying a home, why not give me a call or send me an email. I would love the opportunity to help you find the place you’ll love to call home!

A brand new home. Not just new to you, but one that is built just for you. How exciting and nerve racking all at once! You step into the sales office of the new home site and begin the journey that will hopefully lead to a fantastic home in the neighbourhood that fits you perfectly. But how do you decide with so many choices offered?

I can help. I’ve been selling new homes for over 10 years now so I have extensive knowledge on how a new home builder thinks and how their offers work. Did you know that many of the sales representatives work for the builder and as such, they represent his interests in the new home sale? There are often sales reps who are unable to represent your interests due to contractual obligations. How do you know that you are being protected? I don’t think many buyers think of enlisting the aid of a REALTOR® when they look at new home purchases, but maybe it is a step you should consider.

Here’s the best part – it won’t cost you a dime. Most new home builder’s pay a referral fee to a Buyer’s REALTOR® so you don’t have to worry about inconveniencing your salesperson. They’ll get paid for the job they do. Your agent can look over the contract for you (though it is wise to also have a lawyer read the contract – the contract is written by a lawyer paid for by the builder, so it is definitely written in the builder’s best interest), and help you negotiate the best possible deal based on recent sales and market value. Your agent can also research the surrounding vacant lands to see what the municipalities have planned for that land. Sure it’s a lovely green space now, but did you know that there are plans to install a nuclear power plant or garbage incinerator there in the near future? Do you think the builder’s sales person will tell you the plans? They’ll be quick to mention plans of parks and walking trails, but not so quick to mention schools, gas stations and night clubs!

When you look at the model homes, do you see the upgrades the builder has installed? Are you sure you will get the same windows and doors, trim, flooring and kitchen cabinets? Builders were the first to use stagers. Sure they called them decorators and interior designers, but it’s the same thing. Staging to make the house show as a dream house (and not the reality, builder basic house you are buying). I worked for a builder years ago who had a great designer/interior decorator. She was so well known in the area that when a new model home opened, people flocked to it just to see what she did! And several houses were sold to people who “just popped by to see what Sharon did here”.

So if you are living or thinking of buying a home in the Durham Region and you’d like a new home, give me a call. We can get together to chat about the ups and downs of buying a new home. You don’t have to enlist my help, just pick my brain over a cup of coffee or glass of wine. If you think I can help you, we’ll go look at some great new homes. Happy house hunting!

If you’ve never purchased a home before or if you haven’t purchased in a long time, I’m sure you have many questions about the process. The news is filled with reports about up and down real estate markets, up and down mortgage rates and trouble with the Competition Bureau. So where does that leave you? Hopefully in the hands of a capable, reliable, trustworthy Real Estate Agent. Someone who will be looking out for you and your family.

I certainly remember my first purchase. 21 and completely naive, I didn’t have any idea how to buy a house, let alone how to search for the right one, qualify for a mortgage, do up a binding contract, check out the title, get a lawyer, etc.. My parents, who had taught me so much in life, weren’t really able to help out. They had moved into their house as a rental home. Another family had lived in the home and they were moving out. They knew my parents’ family was growing and this was a great house to grow in to, so they introduced Mom and Dad to the landlord and the lease was signed. Years later, the landlord wanted to increase the rent to a level above what my parents wanted to pay so the landlord decided to sell the house. Well, my parents bought the house on a handshake, with a mortgage provided by the landlord. Payments were based on what my parents felt they could afford (oddly enough, they settled on an amount that was higher than the rent!), not on what the amortization chart said they had to pay. And they were home owners! Can you imagine buying a house that way today?

You might need or want some assistance in your search for a new home. Someone to discuss your dreams and requirements for your perfect place. Help with the Agreement of Purchase and Sale, the conditions to the offer and the closing arrangements. A great negotiator who can get you the best possible deal on the home you finally decided is right for you. Do you know what a latent or patent defect is? Are you willing to purchase with a “buyer beware” attitude? Or would you like a little piece of mind and guidance through the process?

Call or email a great Realtor®. Interview them. Ask questions until you are comfortable that this person knows what they are doing and is able to take what you tell them and find you the house that even you didn’t know you were looking for! If you have questions, ask me. I’m here to help you!

As Realtors® we often forget how intimitating it can be to buy or sell a home. We do transactions and discuss the industry daily and forget that not everyone lives and breathes real estate. So this blog is hopefully a refresher course for those who need it and a few helpful tips for those new to the exciting world of home ownership.

It’s all over the papers that the market is cooling (and it is, but the sky is not falling….but that’s another blog!) and with a cooling  market it is that much more important to create a plan before jumping into the market.

Our neighbours to the south have experienced a housing burst but thankfully, we have not. More conservative regulations helped to prevent people from getting in over their heads. Yet another reason to be glad to be a Canadian!

But the market is different now than it was so anyone buying a house needs to be extra careful they have all their ducks in a row. Here are six things to remember to ensure you end up with the house of your dreams.

1. Build your team – You need a knowledgeable real estate agent, lawyer and mortgage broker. (Hopefully this is where you decide to call me! But really, just make sure you choose someone you can trust to help you make the decision that is right for you at this time in your life.)

2. Get a pre-approval – Having a great mortgage broker on your side can give you great peace of mind. They will lock in your mortgage rate for up to 120 days. Keep in mink that pre-approvals are almost always subject to certain conditions that you will need to meet before financing is confirmed. To protect and ensure that you can afford to buy the house of your dreams, it is a good idea to have a condition for financing on any offers to purchase a house.

3. Set a budget and stick to it – It’s hard not to let emotions take over during the home buying process. Your pre-approval amount is what the bank is willing to lend you and may not necessarily be an amount you can comfortably afford to pay, after taking into consideration your lifestyle needs. Do you have an active social life? Do you enjoy eating out? Are you planning on having kids? Are you saving for your RRSPs? When a bank provides an approval, they are based on CMHC guidelines, not the costs associated with your lifestyle.

For example, your financial institution will examine your gross debt servicing. Your monthly housing costs should not exceed 32% of your gross monthly household income. Housing costs include monthly mortgage payments, taxes, heating expenses and half of monthly condominium fees (if you are buying a condo). Your mortgage lender will also examine your total debt servicing ratio. This is your entire monthly debt load and it should not exceed 40% of your gross monthly income. This includes housing costs such as property taxes, heating costs and condo fees and other debts such as car payments, personal loans and credit card payments.

4. Factor in closing costs -  Far too often people are surprised when they get the final statement of adjustments from their lawyers and are left scrambling to come up with thousands of dollars to cover the shortfall. On top of the purchase price, there are also land transfer tax and legal fees. For example you must pay the Provincial Land Transfer Tax (first time buyers are eligible for a rebate), lawyer fees, maybe land taxes and an oil tank fill up. If you are buying in a new development, you may also be responsible for development charges, such as education levies and fees for enrolment in Tarion Warranty Corporation and installation of hydro meters. My advice? When negotiating the purchase of a new home, you should put a cap on all these extra charges. For example, if you capped all your developments charges and levies at $3,000, this is the maximum the builder could charge you at closing time, regardless of what the actual fees should be.

5. Title Insuance – Title insurance and identity theft coverage offer peace o fmind and protection. Although real estate title fraud is far less frequent than other forms of identity theft, it is a violation that can have devastating and long lasting effect on its victims.

And finally, once you are happy and settled in your new home, the journey is not over, it is just beginning. The goal is to pay off your mortgage as soon as comfortably possible. Try this:

6.  Bump up frequency of your payments – To save substantially on your interest costs and pay off your mortgage faster, set your payments to rapid weekly or bi-weekly mortgage payments options instead of monthly. The total outlay is only slightly greater than if you coose to pay monthly, but the impact on the bottom line is amazing. For instance, if you started with a 25 year amortization, by making rapid bi-weekly payments you would pay off your mortgage in 21. 4 years instead of 25. This saves tens of thousands of dollars in interest costs!

Regardless of where we are in the economic cycle or how robust the real estate market is, we all need a home, Finding the right home to suit your budget, your lifestyle and your aspirations is always a challenge. But with the right team, the right tools, a little patience and a little luck, you may be moving into the house of your dreams sooner than you ever imagined!

Each season it is your well-maintained entryway that gracefully welcomes friends and family to your home. The fact that most passers by can see it readily provides plenty of incentive for homeowners to make this first impression a good one.

Clean and clear walkways, pretty landscaping and plenty of lighting will all enhance your home’s main feature, a gracious entrance. But here we will focus on the doorway itself.

Have you thought about replacing your front door? If is is poorly hung or has an improper fit, not only will you have a disappointing first impression, it could contribute to energy loss and security risks. In these cases, the door requires replacing. You may wish to consider a complete entry system, instead of just a door exchange. With the system, the door is pre-hung in its frame, with each of its components designed to work reliably together – your best bet when it comes to dependable energy efficiency and overall strength.

Your existing door may be in great shape, so a simple update may be all that is required. Painting will allow you to change the colour in the future, while staining a wood door will lend to a sophisticated, formal entrance.

In choosing a paint colour for the front door, it is important to decide on the overall look and feel you wish to achieve. Do you want to draw attention to the entrance as a bold focal point? Then choose a standout colour that contrasts (but is complimentary) to the exterior of the house.

If you prefer to have a discreet front door, then opt for a more subtle colour. Choose this option if your door is awkwardly placed so as to avoid disturbing the overall balance of your home.

Classic black makes a formal and grand statement. Navy blue and deep green work beautifully with terracotta brick exteriors, while stone or siding in grey looks best with a selection from the red family. Keep in mind that secondary doors and garages should not compete with the front door. For these areas, use an entirely different colour or one that blends closely with the exterior.

And don’t forget the hardware. As your top priority choose security over aesthetics. You want protection for any forced entry attacks. But there are several great options in the market today. Coordinate door knockers, kick-plates, house numbers, mail slots and light fixtures for a harmonious appearance.

An improved appearance pays dividends in enjoyments and will increase the resale value of your home. Buyers will spend some time waiting for their agent to open the lockbox to obtain the key for your home. You want them to be able to see a pretty door, that is well-maintained, giving them a preview of what to expect when they see the inside of your home. So go ahead and splurge a little. You never get a second chance to make a good first impression!

Have you been listening to the reports on the European economy? It appears that they have bought themselves some time from those vicious currency and bond speculators (for a small some of one trillion dollars!). And this has all reflected by making individuals a little more relieved about their finances. Investors were lulled into a false sense of security during April as volatility fell to the lowest level since July, 2007, and May brought a spike in volatility that really shocked most people.

For now, most are over the shock and are returning their interests to thier own pocketbooks and investments. What does the job and income situation look like? Are financial plans still intact? What about that mortgage coming due next month?

Do you dread your mortgage decision? Despite the signs of an impending rise in the general level of interest rates and warning from government officials, there still seem to be a lack of conviction among Canadians as to whether they should lock in their mortgages at prevailing rates, versus holding on to a floating rate mortgage.  So what are the facts?

Despite the recent jump in rates, we still look to be in the middle of a downward trend in mortgage rates since 1981. Do you remember that year and its five year term that was in excess of 22%? It came at the same time that North America fell victim to a painful double-dip recession. Inflation was sitting around 12% at the time. Many families lost their homes, but today we are in just as precarious a situation as households are holding a much higher debt ratio than we were in the past and that makes us more susceptible to disaster.

The prime rate hasn’t budged from 2.25%, set in April, 2009, so your variable rate mortgage is still an attractive option. Many lenders are offering a variable rate that is tied directly to the prime rate, thereby saving homeowners choosing this route to really take advantage and pay down their mortgages early. The five year rate, however, has been a different story. Conventional five-year rates (posted rate) fell to a low on 5.25% in April, 2009, only to increase to 5.85% throughout the summer, then we saw a reprieve in the early months of this year. That all changed toward the end of the first quarter as the economy was looking better and inflation fears began to creep back in to the market. The mortgage rates went from a low of 5.35% in March to a high of 6.25% by late April. There has now been a 15 basis point reprieve to 6.1%.

So what is the point of all this? Whether you choose a fixed or variable rate (or a combination of the two) mortgage, there are plenty of options out there for you. And with the real estate market in the Durham Region strong, very strong; 819 sales in February, 1,110 in March and 1,185 in April, you might want to consider a move, whether it be into your first home or into your perfect retirement place. I have access to mortgage rates much lower than the posted rates. The variable rate is 1.65% and the five year fixed rate is 4.25%. Very attractive considering the current posted and discounted rates! Contact me to find out more details.

So the real estate market is booming and it seems that not much else is! In 2009 there has been a 20% increase in the average purchase price of a home in Canada. There is excessive demand in the market and the government is starting to worry that home buyers are taking on too much debt.

The government says they are going to keep a close eye on the market and the debt load of Canadians to see if we are getting ourselves into too much trouble. There is talk they will change the laws and you’ll need to have  a larger downpayment before you can qualify for your mortgage. They may also reduce the maximum amortization period from the current 35 year maximum. A balance will need to be maintained to stop people from being overextended, while not increasing the rates for the rest of us.

So, what does all this mean for you? Well, don’t panic. You’ll be fine. If you have an existing mortgage, check on your interest rate. Are you locked in or do you have a variable rate mortgage? Perhaps you can refinance to lower your interest rate. If you can, then take advantage of the lower rate to shorten your amortization period. Maintain the same payments you are currently making and chip away at the principal owed. You could be mortgage free years sooner!

If you are thinking about buying your first house, make sure you don’t overextend yourself based on very low interest rates and long amortization periods. You don’t want to find yourself in a bind when it comes time to renew your mortgage and interest rates have increased. Ask your mortgage broker or financial adviser to educate you on what the difference in your payments would be if the interest rates were 1% or 2% higher than they are now. Could you still afford that mortgage?

Most mortgages are arranged using conservative numbers, so don’t worry. Just ask plenty of questions and do business with people you can trust. Email me with any questions you have and I’ll give you as much information as I can.

Staging is big business these days. Depersonalize. Pare down. Go neutral. Well I’m one real estate agent who thinks you should go against the grain. Put up the fake spider webs and get out the straw bales. Maybe you should even hang a flying witch on the front porch. Have some fun. In our desire to please all and show how in touch we are with the current decorating trends, we are missing out on us!  I personally don’t decorate for Halloween; it’s not really my time of year.  I cringe when the scary movie commercials come out and anticipate November 1, 2009, when it’ll all be over. But if you like Halloween and your house is on the market, then decorate.  Have fun and show that your house has some personality.  Besides, you’re still living in the house and a buyer will be able to appreciate that.  Just remember that you must be diligent and remove the decorations as soon as the day passes.  Make no plans for November 1.  You have some clean up to complete.

The Durham Region Association of REALTORS® (DRAR) reported 825 sales in September 2009, down .5% from August 09’s 875, but up 9% from the 752 recorded in September ‘08’.

 Average selling prices were up 1.4% ($282,308) in September, from August’s $278,400, and up 5.5% from the $267,478 reported in September ‘08’.

Durham’s fall market is starting stronger than ever. With the reported 825 sales this September, it is the best selling September on record!

 Total active listings are down 36% (1920) from September 08’s 2989, and up 2.9% from last months 1865.

 This year’s real estate market has been a rollercoaster ride. With a weakened economy Durham’s first quarter started off rocky. Government incentives kicked the second quarter into gear and into a buyers market. Now with listings well below the same time last year the market has spun into a sellers market. In the first quarter we never would’ve anticipated setting any records, but with both June and September in the record books, the first quarter pessimism has come and gone with the changing of seasons.

I can’t wait to see what the final quarter brings!