Archive for the ‘Miscellaneous’ Category
Real estate set for rise ahead of new rules
But a buying frenzy may be around the corner as new borrowing rules and tax regimes re-energize sales
Steve Ladurantaye – Globe and Mail
A rush of home buyers trying to beat higher taxes and tighter mortgage regulations could pump up the real estate market just as it’s showing signs of cooling.
The real estate market pulled back slightly in January after its record run, although both sales and prices were up sharply from the depressed levels of a year ago.
Economists believe, however, that home buyers will push to beat new regulations, unveiled this week by Finance Minister Jim Flaherty, which come into effect April 19.
They also think that there will be a rush to beat the new harmonized sales tax in Ontario and British Columbia later this year.
That could lead to a spike in sales in the spring, followed by a sharp pullback and lower prices in the second half the year, but nothing that would crater the market.
An increase in supply as owners were enticed to list their homes by high prices, and a slight ebbing of demand as consumers realized things were getting a little too pricey, led to a decrease in month-over-month sales in January for the first time since December, 2008.
The 2.8% decline was small, but comes as market watchers anxiously track the market in search of an asset bubble.
The federal government moved this week to curtail speculation in what has been a red-hot market.
It also made it more difficult for home buyers to qualify for mortgages unless they can meet more stringent criteria such as down payments.
The Canadian Real Estate Association said Wednesday that while “one car doesn’t make a parade,” the market may have peaked in December as consumers took advantage of low rates and buyers who stayed out of the market during the depths of the recession finally closed deals on new homes.
————————————————————————————————————
Contact the Jeffrey Team for more information - 416-388-1960
————————————————————————————————————
Beware of promises that sound too good
Mark Weisleder – Toronto Star
“List with me and I guarantee to sell your home in 60 days or I will buy it myself.”
How many times have you seen advertisements like this from real estate salespeople? I have often been asked whether these guarantees are in fact legitimate. As with most advertising claims regarding guarantees, there are always terms and conditions that the guarantee is subject to, and these conditions must be immediately brought to the attention of any consumer at the time any inquiry is made about the guarantee.
In addition, the terms and conditions cannot contradict the main point in the advertising.
In a discipline case decided in March of 2008 by the Real Estate Council of Ontario, a real estate broker made a guarantee that if a buyer bought a home through the broker, then the broker would sell their home in 120 days or he would buy it himself. The buyer found a home to buy with this broker and then listed their home with the same broker. The home did not sell and then the broker refused to buy the seller’s home.
The reason given was that although the buyer did buy a home using the broker as a buyer representative, the buyer did not buy a home that was actually listed with this same broker. The broker was fined $10,000 for this misleading advertising.
Some terms and conditions may state that the salesperson will only pay 80 to 95% of the appraised value. But many other points are left vague. Is the real estate commission included or excluded? When is the appraisal to take place? Who conducts the appraisal? What if the property needs repairs? Who pays for this?
If you intend to rely on any guarantee, be sure to get all these terms and conditions in advance in writing, before signing anything.
Selling a home or condominium is complicated. There is a lot of money involved and potential liability if you are not honest with any buyer about the condition of your home.
That’s why it’s important sellers receive the highest quality of representation, to both make sure they obtain the best price for their property, but also to avoid any risk of being involved in any kind of legal proceedings.
In my opinion, you do not need any guarantee; you need the right salesperson to represent you.
To make sure you find the right real estate salesperson to sell your home, remember the following:Ask your friends, relatives and colleagues for references;
Drive around your area and look for signs that say “sold” on them;
Check the information on the salesperson’s website; the more helpful the information, the better;
Review examples of their marketing materials to see how professional they look;
Carefully review the salesperson’s sales history. Ask how many homes they listed last year and how many sold, as well as how long on average it took for each of their homes to sell as compared to the average on your local market.
The salesperson will prepare a comparative market analysis giving you an idea as to what your own home should sell for. Review this carefully.
Read the testimonials of previous clients of the salesperson and call them yourself to verify the information.
By doing your homework in advance of finding the right salesperson to sell your home, the greater your chances of being satisfied.
It is not about catchy advertising slogans or guarantees, it is about results.
————————————————————————————————————
Contact the Jeffrey Team for more information - 416-388-1960
————————————————————————————————————
The 10 must-have features in today’s new homes
A kitchen, with an island, is still a top priority for homebuyers.
Steve Kerch
Homebuyers want smaller houses and they are willing to strip some of yesterday’s most popular rooms – such as home theatres – from them in order to accommodate changing lifestyles, consumer experts told audiences at the International Builders Show here this week.
“This is a traumatic time in and the future isn’t something we’re 100% sure about now either. What’s left? The answer for most home buyers is authenticity,” said Heather McCune, director of marketing for Bassenian Lagoni Architects.
Buyers today want cost-effective architecture, plans that focus on spaces and not rooms and homes that are designed ‘green’ from the outset,” she said. The key for homebuilders is “finding the balance between what buyers want and the price point.”
For many buyers, their next house will be smaller than their current one, said Carol Lavender, president of the Lavender Design Group. Large kitchens that are open to the main family living area, old-fashioned bathrooms with claw foot tubs and small spaces such as wine grottos are design features that will resonate today, she said.
“What we’re hearing is ‘harvest’ as a home theme – the feeling of Thanksgiving. It’s all about family togetherness – casual living, entertaining and flexible spaces,” Lavender said.
Paul Cardis, CEO of AVID Ratings Co., which conducts an annual survey of homebuyer preferences, said there are 10 “must” features in new homes:
1. Large kitchens, with an island. “If you’re going to spend design dollars, spend them where people want them-spend them in the kitchen,” McCune said. Granite countertops are a must for move-up buyers and buyers of custom homes, but for others “they are on the bubble,” Cardis said.
2. Energy-efficient appliances, high-efficiency insulation and high window efficiency. Among the “green” features touted in homes, these are the ones buyers value most, he said. While large windows had been a major draw, energy concerns are giving customers pause on those, he said. The use of recycled or synthetic materials is only borderline desirable.
3. Home office/study. People would much rather have this space rather than, say, a formal dining room. “People are feeling like they can dine out again and so the dining room has become tradable,” Cardis said. And the home theatre may also be headed for the scrap heap, a casualty of the “shift from boom to correction,” Cardis said.
4. Main-floor master suite. This is a must feature for empty-nesters and certain other buyers, and appears to be getting more popular in general, he said. That could help explain why demand for upstairs laundries is declining after several years of popularity gains.
5. Outdoor living room. The popularity of outdoor spaces continues to grow, even in Canada, Cardis said. And the idea of an outdoor room is even more popular than an outdoor cooking area, meaning people are willing to spend more time outside.
6. Ceiling fans.
7. Master suite soaker tubs. Whirlpools are still desirable for many home buyers, Cardis said, but “they clearly went down a notch,” in the latest survey. Oversize showers with seating areas are also moving up in popularity.
8. Stone and brick exteriors. Stucco and vinyl don’t make the cut.
9. Community landscaping, with walking paths and playgrounds. Forget about golf courses, swimming pools and clubhouses. Buyers in large planned developments prefer hiking among lush greenery.
10. Two-car garages. A given at all levels; three-car garages, in which the third bay is more often than not used for additional storage and not automobiles, is desirable in the move-up and custom categories, Cardis said.
————————————————————————————————————
Contact the Jeffrey Team for more information - 416-388-1960
————————————————————————————————————