Durham Region Real Estate Blog

With today’s interest rates at near record lows, many people are recognizing that a mortgage payment on a house can actually be comparable to what they would spend on renting an apartment or home.  Perhaps you’re one of them and are ready to take a step up the property ladder.

For most people, buying a home is the most significant financial investment they’ll ever make, and there’s a lot of planning that goes into a successful transition.  With that in mind, here are a few tips to help you navigate the home buying process:

Consider future needs. Look ahead and anticipate what your family may look like just a few years from now.  If you’re a single buyer, you may someday add a ‘significant other’ to your household.  If you’re a young couple, you may be planning on children.  Or you may already have children whose needs will change within just the next few years.  As they get older, perhaps your children will need a bedroom of their own, or some private play space.  Though additional space may not be needed immediately, it’s important to consider potential future plans for a home.  Keep in mind that there is no such thing as the “perfect” house. Instead, determine what’s essential for the near future – number of bedrooms, approximate square footage, community, etc.  But be cautious.  Look to future needs but don’t overextend yourself buying space you may not ever need.

Remember resale. Purchasing a home is a great long-term investment. However, there are many reasons home buyers may need to move again, such as relocating for a job or a major lifestyle change. Think about the length of time that the home may be owned and during your search, also consider the potential resale value of prospective properties you are viewing.  I can help by sharing such valuable information as the average price of resale homes in the area, how long each property has been on the market and what features increase – or detract – from a home’s value and appeal.

Plan for maintenance and repair costs. Owning a home is a rewarding experience. However, along with a set of house keys come certain responsibilities for upkeep.  A leaky faucet and unkempt lawn won’t take care of themselves, so be sure to include future repairs and maintenance in your household budget.  Keep in mind that certain properties such as condominiums and town homes require less exterior maintenance and might be a good option for those who find the idea of maintaining a yard a bit daunting.

Want to know more about the home buying and selling in the Durham Region?  Contact me so we can talk about the best options for you in today’s market.

Do you have high expectations of your real estate salesperson or are you just happy if they show up, fill in the paperwork and bring you an offer? Do you ask several questions or do you just answer some questions and hope the whole thing just goes away?

Sometimes I forget what it’s like not to know what is involved in the whole real estate process. Sure, for the first time homeowner it’s a whole new process, but it is also a confusing thing for many buyers and sellers. Most people who buy and sell a home haven’t done it in years so the things I consider routine are anything but normal. And forget about those strange circumstances that come up. You have no clue what to do about them!

So what should your REALTOR® bring to the table? A pleasant demeanor. You’re going to spend some time together during the process so you definitely want to work with someone you can get along with. Knowledgeable about the whole process. Does your REALTOR® have experience in dealing with many types of properties and buyers or sellers, or do they only know one market. Is that market a fit for your needs? Experienced. This can go a long way in getting you the results you want. An experienced REALTOR® can help you market your home in the best possible light so that you can get the most amount of money in the least amount of time. They also know how to find the house that’s going to be perfect for you. Trustworthy. The REALTOR® you choose to work with will know a lot about you and your finances, your bottom line, your motivation for selling or buying and any number of other personal details about you. Make sure you are working with someone under a contractual agreement (Buyer’s Agent or Seller’s Agent or both!). You want to make sure that your personal information is kept private so that it can’t be used against you in negotiations. And while I’m mentioning negotiations, you want to have a great negotiator on your side. Someone who can weave their way through the sales talk and fancy nonsense words to get you to the very best deal for you.

I really suggest that we sit down and have a relaxed conversation. What questions will you ask me? What do you expect from the whole experience? I’d love to hear from you!

It seems that life is adding more and more stress on our plates all the time. But how do we handle stress is what sets us apart from our neighbours. In your home stressful things are going to happen, but the place itself should be a source of great joy for you. Sure, a little face lift may be of value, but the building and the feeling you get when you walk into it should be perfect for you. If you feel stressed just pulling into the driveway, it may be time to make a move.

Just because you love where you live, or it was the perfect house when you originally purchased it, doesn’t mean the house is going to perfect forever. Life change, we get older, our families grow larger and smaller. Why shouldn’t our houses change with us? You’ll find that place that was once perfect is now stressing you out. A move to your new perfect place will help.

15 years ago Blair and I bought our perfect home. Blair called to let me know he had found a great house for sale that he thought we would love. As we drove closer to our ultimate destination in Oshawa, my mouth dropped. I knew there was no way we could afford a house in this neighbourhood. Well, afford it we did. Purchased for more than the asking price, firm, with a 20 day closing date. What were we thinking? It all worked out though and Blair could often be heard saying that he would never move from this house.

That was four houses ago. Surprised? Don’t be. The perfect house for you one day may not meet all your needs, or your lifestyle, in the future. Perhaps it is another persons perfect house. Again Blair and I find ourselves living in our perfect house. But for how long, I don’t know. What I do know is that if you find yourself stressed out by your house, forgive yourself for falling out of love with it. Clean it up, list and sell it so that you can get in to your next perfect house and let someone else form a love affair with your home.

Coldwell Banker has a great little tool called the Coldwell Banker Home Listing Report. Want to know how much your home would cost if it was in another market? Well, maybe not exactly what it would cost, but it’ll give you a good idea of values in other markets and is fun to use.

For instance, if your home in Oshawa is valued at $300,000 it can be expected to cost approximately $1,352,381 in Kelowna, BC, $385,714 in Rocky Mountain House, AB and $290,476 in New Glasgow, NS. Click on this link to check out values in other areas around the country.

Because Coldwell Banker is an international company, they put out great international statistics sometimes. Comparing similar four bedroom, two bath homes in 30 countries and more than 60 markets outside of Canada and the U.S..

If you’ve got some money to spare, why not move to Neuilly-sur-Seine, France. Located just 4 miles from the center of Paris and home to the current President of the French Republic and the headquarters for the global edition of The New York Times newspaper, The International Herald Tribune. In the opposite hemisphere, the tourist city of Salinas, Ecuador, is one of the many markets offering great affordability. It is also known for its proximity to the Pacific Ocean and year-round temperatures averaging 80 degrees Fahrenheit.

What do you think about Rome? It is the capital and most populated city of Italy and has been ranked as one of the world’s 15 most important cities. Or choose Amsterdam, the cultural and financial capital of the Netherlands and home to seven Fortune 500 companies including ING Group and Royal Philips electronics.

So, how much are the compared homes costing? Here is a small sample of the data released. That 4 bedroom, 2 bath home in Aruba will cost you $445,875 but in Sydney, Australia, look to be set back $1,047,250.  Rome’s prices are $1,777,750 while Amsterdam is a comparable bargain at $862,320.  Save big in Ecuador where for $75,000 you can have that 4 bedroom, 2 bath home. And if you are really good at saving your pennies, buy in Neuilly-sur-Seine for $4,204,000.

So where is your dream home located? Tell me and I’ll let you know what you can expect to pay for it.

Advice is to be saved for my clients. Those individuals who agree that the level of service I provide is the level of service they are looking for in their REALTOR®. However, I feel so strongly about this point that I have to give you all my priceless opinion on this topic. If you had any doubts about the risks to sellers and real estate agents for using the Seller Property Information Statement (SPIS), a decision of the Ontario Court of Appeal in  May, 2011 would seem to have put them to rest once and for all.

The case is Krawchuk v. Scherbak where the Ontario Court of Appeal reversed the trial decision and held the real estate agent, her employer and the sellers all liable for negligent misstatement in filling out the SPIS. Now this blog is not a note to other real estate agents to be careful with the use of the SPIS. They can use it or don’t use it, I don’t care. As big boys and girls and can make their own decisions. I’m writing this blog for all the sellers out there who are getting duped into filling out the forms.

In 2004 the Scherbaks listed their property in Sudbury with a REALTOR®. The REALTOR® helped them complete an SPIS. On the form, the question, “Are you aware of any structural problems?” was answered: “NW corner settled … to the best of our knowledge the house has settled. No further problems in 17 years.” Well, that’s where the problems started.

The listing agent also acted for the buyer (with the consent of all the parties), an agreement was reached and the house sold. After closing, the buyer discovered that the foundation walls were sinking into the ground below, resulting in the failure of proper support for the floor joists and building above. To correct the problem the buyer spent $197,000 – almost double the purchase price! $105,000 was recovered from the title insurance company and then, Krawchuk (the buyer) sued the sellers, the agent and the real estate brokerage.

The SPIS was intended to protect sellers by disclosing correct information about the property to buyers. It doesn’t always work. The trial judge found the Scherbaks liable for negligent misrepresentation and awarded Krawchuk damages of $110,000 in addition to the $105,000 she had recovered from her title insurer. He dismissed her claims against the real estate agent and broker. The Scherbaks appealed the judgment and Krawchuk cross-appealed the dismissal of her claim against the real estate agent.

A three judge panel of the court of appeal heard arguments last October and released its decision on May 6. The court awarded half of the $110,000 in damages against the sellers and half against the real estate agent. In addition, the buyer was awarded $25,000 in costs of the appeal against the sellers and a further $25,000 in costs against the real estate agent. Bad on all fronts.

Maybe you read this blog and think, “This could never happen to me. I would be totally truthful.” But how complete will your statements be? What if you interpret the form different than the courts do and therefore answer incorrectly? Do you want to be stuck in the middle of a lawsuit? Don’t fill out the form! Learn what you must disclose and protect yourself. Find great representation. And remember, if you are about to list your house and the REALTOR® of your choice pulls out the SPIS, run!

Today the Toronto Real Estate Board is changing the districts we use to search for houses in specific areas. Yesterday we could search in specific citys and towns, but in order to narrow a search you need to either use the map provided on line or use a printed may. And not just any printed map, but a specific one. Years ago it was a Pearly’s Map but more recently we had to have up to date versions of the Map Art maps. And not those little pocket ones that might be easy to carry around. Nope, we had to have the big one with the metal binding. We searched page 24, row 27, column R. Well, don’t quote me on those numbers, but you get the idea. So if I was away from my map and someone wanted a search for a specific area within the Durham Region, say the houses around Windfield Farms, I was a little stuck for my search.

But not anymore! Want to see what is for sale in Lynde Creek? How about Northwood or Stevenson? There are completely new districts for searching now that aim to move us to the 21st century. If you are interested in seeing a map of the new districts or would like me to send you some searches for homes in the areas you are considering moving into, please let me know. I’d be happy to help you find a great, new place to call home.

Now….I wonder how long it will take me to get used to the new districts!

We hope you enjoy this little newsletter!

Email newsletter – June 11 pdf

100th posts! I don’t know how I came up with 100 things to blog about, but obviously my gift of the gab has finally come in handy. If you had asked me a few years ago if I’d be writing, about anything, I’d have laughed. Not just a polite chuckle. No, a full on, can’t breathe, tears flowing, nose snorting laugh. Me? Write? And yet, I’m writing a milestone 100th blog! In honour of this achievement I think I’ll put down a few words about homeowner milestones.

Have you purchased your first home already? Was it years ago or just recently? I bought my first place about 20 years ago now and it was a doosey! Is that even a word? Maybe not, but it sure is fun to write it into a sentence.

My first house was a 1 1/2 storey home in Oshawa with an illegal basement apartment. A power of sale that Blair and I couldn’t afford, but since the third mortgagee was so desperate to unload the house, they allowed us to assume all the mortgages and it was ours! Yep, three mortgages, with an average interest rate of 14% and a monthly payment of $1,687.32. Blair and I ate a lot of white bread (whole wheat was too expensive), no name peanut butter and spaghetti, we never ate out and I walked to and from work. Recently, because that house came on the market, I was lucky enough to get back into it for another look . Everyone should be so lucky!

Blair and I hit another milestone three houses later. This was it. The house we never thought we could afford, in a neighbourhood that was well out of reach. If you have been a homeowner for a while you know this house. It’s the one you are never moving from. Might as well have the pine box addressed here because that’s how they are getting you out of it. This house was gorgeous and we fought to own it. The listing REALTOR® wouldn’t return our phone calls to allow us into the home. Thankfully we were REALTORS® and knew a few tricks so we got in to see the house, did an offer and bought it.

We have lived in three houses since the house we were never moving from. Each one a milestone in its own right. So how about you? Tell me about your personal milestones or let me know if I can help you reach a new one!

We are well established in a do-it-yourself era. There is software to do your taxes, online travel sites and even web based estate planing. One area that is getting plenty of press is selling your own home. But just because you can doesn’t necessarily mean you should.

More than just marketing and salesmanship, selling a home includes documentation, contracts, transferring of property and funds- all of which require singular interests to be sought out and protected. Typically, knowledge is power, but in this instance, is it really empowerment, or a dangerous case of a little bit of knowledge where a lot of expertise is ultimately required?

Like any major undertaking, perhaps the greatest risks are the ones you don’t know about. The business of selling and buying properties is no place to rush in blindly. Whether buying or selling, you need to recognize the limitations of going it completely alone. Though it is perceived to be a common transaction, there are many intricacies in each sale.

If you are going to go it alone, you need to pause and consider many things. Because this is one of the largest, and therefore riskiest, financial decisions many people will ever make, every buyer and seller should seek expert advice, early on in the process, in order to ensure that they have access to all the necessary information for a successful transaction. Although perceived to be a common transaction, real estate is a very involved, often problem-prone process. You should have all the information about the property and the real estate process before committing yourself. This becomes more crucial if someone is considering proceeding with a private sale.

If you’re going to go it alone, you need to get great advice and do your due diligence. Be educated about the process to better understand your options and the ramifications of choosing one route over the other.  Like so many things in Real Estate, it comes down to strategy. The success of a real estate transaction increases when it is well planned, the potential issues are identified and provided for and the proper parties are brought in when required.

As a REALTOR®, I don’t get paid until I am able to execute a successful sale. So I’m investing time and money into education, insurance, technology, security systems, marketing tools, relationships, meeting with buyers, pre qualifying buyers, educating buyers, showing properties, building relationships with other buyer REALTORS®, lawyers, moving services, home stagers, mortgage lenders, upgrading contract skills and resources, negotiating, advising, researching market trends and sales, and so much more, so I can provide valuable service  and protection to my clients, while seeing them through to the very end so they can realize a successful sale and purchase of their next home.

There are instances where sellers go it alone successfully, really successfully. But there is also the other side of this scenario. Cases where owners could have benefited from advice before, during and after the sale. A lot of do-it-yourself companies are great at convincing sellers to pay hundreds (sometimes thousands) of dollars up front with the lure that they will have a successful sale, and save thousands that would otherwise be paid to a REALTOR® after the sale is complete.

Best decisions are made by having all the facts in front of you. One perception is that listing with a REALTOR® is handing over control. But sometimes, you take control by handing the process over to someone else. Do you have the time to devote to adequately promoting your own home? The expertise and experience that a REALTOR® could provide in terms of comparable market values and pricing can be invaluable.”

Regardless what route buyers and sellers choose, it is essential to do the homework. Those who don’t make themselves aware of the implications of entering into the sales process alone, do so at possible peril. Things may work out- but they also may not- and without the advice of an expert, you are leaving the outcome largely to chance. It is important to have support throughout the process. There are fundamental legal, financial and practical implications for all parties involved. This is a legally binding contract once signed by the parties and before signing, everyone should understand what is being agreed to (does the written text reflect the intention) and does it address all the necessary issues.  Only then will surprises be avoided and the parties successfully accomplish what they set out to do.

Part of navigating a successful sale, no matter which road you choose, is to try and limit the amount of risk from unanticipated events.  Whether buying or selling, this risk can be neutralized and managed better through education and consultation at the beginning of the process- from an expert that meets the required need.

As a real estate agent I am constantly being told ask for the business, ask for the offer, ask for the referral. I’m not so great at the asking. Sure I’m out there and when I’m out on a listing interview or working with a buyer I always ask if they are ready to put something on paper, but I think I don’t put it out there enough. I love my job and have a real passion for helping my clients buy and sell houses at the time and in the price range that is right for them. But I need to keep asking. This isn’t my hobby, it’s my full time, all in, sink or swim job and I need your help.

As much as I am able to help you find a great place to live or to sell your existing home, regardless of the reason why, I need your help. If I did a good job and you have enjoyed working with me in the past, please pass my name and number along to your family, friends and neighbours who are looking to make a move. If I did a crappy job for you, please let me know so I can grow in my business and in my service to my clients.

Now that that’s out of the way, let’s talk a little about my shameless plug for new listings and how this is good news for those of you thinking about selling. There are buyers out there, searching for a home in the Durham Region, all over the Region! The problem for buyers is that there aren’t many listings on the market right now. Total active listings for the month of March, 2011 was 1,415, down 717 listings from March, 2010 and down over 1,000 listings from the 2006 to 2009 numbers. Is it any wonder why prices are increasing? Lack of competition is driving the price higher in most neighbourhoods with each passing month. It is fairly common now to see listings sell within three days of being listed, often in multiple offers and for 100% or more of the list price.  Buyers are discerning, but they have money, interest rates are low and they want to buy now, so if you’re thinking of selling, you might just want to get your house on the market sooner rather than later.

If you are going to sell, know that though there are plenty of buyers around, they are picky. Today’s buyer is used to having what they want right away. Gone are the days when you could leave in the green, shag carpet and orange and brown wallpaper. The buyer today is used to seeing great decorating, pared down furniture and clean homes. Your home needs to have its best foot forward or the buyer will walk in and out of your place without glancing to see if the house is actually perfect for them.  Call me and I’ll come by to talk to you about getting your home sold in today’s market – even if you’re just curious. It’s a good idea to know your home’s worth and what you can do to maximize your profits.

I expect that as the weather warms buyers will have more choices as new homes get listed. If a move is in your future this year, give me a call. We can discuss when it will be the right time for you to sell. And if you’re going to be selling soon, then let’s get your home listed while the competition is sleeping!