Preparing for your Home Search

Your Needs and Wants

A good place to start your search for a new home is to prepare a detailed 'wish list' -- and then make a comparison of your wants or wishes and your needs or what you must have. For example:

Needs
Wants

Include the type of housing - detached home or condominium, bungalow or two-story, and size - which best suits your needs. Consider location, transportation or commuting time, and new or resale.If you are handy with tools or a paint brush, you might consider a home with a great floor plan even though it’s in need of some repairs or updating. Otherwise, a home in a newer community might be more suitable.Make it a family decision—include the children and your spouse. Or, if you're buying on your own, talk to friends about their home buying experience.

Make the list

Record a list of your needs and wants. Do you need an extra bathroom, a garage, a fenced backyard, or lower utility bills? Do you want a fireplace, a short drive to work, or maybe minimal yard work? Once your list is complete, review it and decide what is most important to your lifestyle. Decide which items are “musts” and which you are willing to give up.

Location

Deciding where you want to live may be the single most important factor in choosing a home. Location affects your day-to-day living and is one of the most significant influences on value. Your choice of location may be limited somewhat by the price you can afford. Even so, make sure you consider such things as:

Type of home and lot

A single-family detached home is attractive to many people because it typically provides more living space and land area than other types of living units. Typically the detached structure permits you greater freedom (less restrictions) on remodeling, expanding, painting, and altering the appearances of the structure. On the other hand, a condominium may be a more appropriate choice for you, with an emphasis on maintenance-free living.

Size and style

Consider size and style. You may already have in mind a contemporary home with a sun deck or a two-storey Victorian-style with a cozy study. Or maybe you won't know what you want or like until you see it. Whatever the case, your realtor should listen to your preferences and help find the right home for you.

May 13, 2008 in Buying Toronto Real Estate | Permalink | Comments (2) | TrackBack

First-time buyers remain challenged

While higher housing values and tight inventory levels have hampered home-buying activity so far this year, longer amortization periods and alternative housing types have offset the impact on most major Canadian markets, according to a report released by RE/MAX.

Despite a higher degree of frustration in the marketplace than in previous years, the RE/MAX Affordability Report found that first-time buyers, in particular, remain steadfast in their determination to purchase a home. In fact, entry-level purchasers are adjusting their expectations by sacrificing size, location, and even long-term financial freedom, to overcome challenges such as rising prices and serious supply issues. Innovative financing has become key to homeownership in today’s environment – with longer amortization periods gaining favour in 62 per cent of the major centres surveyed. Low or no down payments were popular with first-time buyers in 38 per cent of markets.

“Doom and gloom reports coming from south of the border have yet to hinder overall momentum,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “First-time buyers are still leading the charge, taking advantage of every resource available to achieve homeownership. They’re determined to get into the market sooner rather than later. If suburban locations, smaller condominiums and town homes, or a little sweat equity is what it takes to get into the market, these purchasers are game.” Inventory levels, however, remain one of the foremost concerns facing purchasers across the country. A shortage of available entry-level product was identified as a major obstacle impeding buyer intentions in three-quarters of markets surveyed in the report, including St. John’s, Moncton, Fredericton, Halifax-Dartmouth, Ottawa, Greater Toronto Area, Hamilton-Burlington, Niagara Falls, Winnipeg, Regina, Saskatoon, Greater Vancouver, Victoria and Kelowna. “First-time purchasers continue to play a pivotal role at both a local and national level,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The impact they have on the housing market is significant, as they are the impetus for sales in the mid-to-upper price ranges. As long as this segment of the market remains healthy, the real estate outlook will continue to be favourable.”

Although average price is the barometer for housing values in most major centres, first-time buyers looking to achieve homeownership consider starting prices a more meaningful gauge of affordability. Starting prices can be substantially lower than the market average. For example, average price now approaches $400,000 in the Greater Toronto Area, while the starting price for a detached home can be as low as $300,000 in areas east and west of the city.

The best value for the dollar continues to be found in the suburbs. For those unwilling to sacrifice on location, small condominium units in new developments and condominium conversions of rental buildings offer up the next best alternative. Condominium conversions in some of the country’s major centres can be picked up as low as $150,000 to $175,000.

See the RE/MAX Affordability Report

April 24, 2008 in Buying Toronto Real Estate | Permalink | Comments (8) | TrackBack

Tips for First-time Toronto buyers

If you’ve ever thought about owning your own home, now may be the time to take action. Lower interest rates combined with a growing inventory of homes for sale in the Toronto market may translate into a good opportunity for buyers in negotiating the terms of a sale with a seller.

The home buying process may seem daunting to someone who has never purchased a home before. But, through home buying educational seminars offered in your community, and with the assistance of an experienced loan officer, a first-time home buyer can obtain a better understanding of their financing options, leading to a more positive home buying experience.

Whether you’ve been dreaming of owning a home for years or you’ve just decided it would be a smart financial move to make, your first home buying experience will be a memorable one. It’s important to learn about your financing options in order to find the mortgage that’s right for you.

Here are some suggestions for first-time home buyers:

1. Educate Yourself About the Mortgage Process – By taking the initiative and learning about the mortgage process, you can be more confident in the financial decisions you are making. It’s important to learn about different types of mortgages, how much you can afford, how your credit impacts your interest rate, and the benefits of home ownership.

2. Save Just a Little Bit More – It’s not only important to save money for the down payment and closing costs, but it’s important to factor in some of the other costs of home ownership such as decorating, repairs and maintenance. Many mortgage lenders recommend that first-time home buyers have at least three to six months of additional savings in their possession in anticipation of these additional expenses.

3. Check Your Credit – An individual’s credit score will have a significant impact on his or her mortgage loan approval and interest rate. A good first step in financing a home purchase is to check your credit history. You can request a credit report from credit reporting bureaus such as Equifax. Carefully review your report and contact the credit reporting bureaus to correct any inaccuracies.

4. Shop Around for a Mortgage Lender – As you start thinking and preparing for the home buying process, start shopping for the mortgage lender from whom you would like to obtain a mortgage for your new home. Because this process is new, it's easy to go with the first lender, loan officer or mortgage broker you meet. Instead, take your time and shop around. Start by asking friends, co-workers and family members for recommendations. When you’ve identified two or three loan officers or mortgage brokers, ask for references. In addition to pricing (interest rate and closing costs), focus on customer service as well as other services and tools that a mortgage lender may be able to offer you.

5. Get Pre-approved – Before you start working with a real estate agent, consider contacting a mortgage lender to obtain a pre-approval credit decision. A loan officer will review your financial status, including your income, cash flow and credit score, to help you determine the maximum monthly housing payment for which you may be able to qualify, and, if qualified, "pre-approve" your mortgage before you've found a home. Armed with a mortgage pre-approval, you can start searching for homes with a much better idea of your price range, and in turn save time as you will know the right homes to focus on. Obtaining a pre-approval may offer more confidence and certainty to home sellers in your ability to purchase the home.

6. Don’t Be Afraid to Ask Questions – Once you’ve found your new home, the mortgage lender will help you through the details of the loan process. From application to closing, your loan officer will work through the financing process with you, just as your real estate professional should do in the home buying process. Throughout the process, read all loan documents carefully, and involve an attorney, if necessary.

7. Inspect – Before you commit to purchasing a home, don't forget to hire a professional home inspector to conduct a thorough assessment of the property. An inspector can alert you to any major problems with the home, and/or help you understand potential short-term and long-term home maintenance issues.

May your journey on the road to home ownership be a happy and successful one.

March 24, 2008 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

Is your home inspector qualified?

Anyone can say he or she is a home inspector, but consumers have the option of hiring one who has been trained and tested.

Alan Carson says, "We believe you need a good, diverse broad background to be a home inspector." Carson is vice-president of Carson Dunlop Inspections. "It's like a doctor who's a general practitioner. You have to know all about the body. And when you see a problem you recommend a specialist. In home inspection, if someone works in one trade how will they know about others?"

Carson has written home inspection books for people who want to learn about the nuts and bolts of a house. He has also helped develop the home inspector course at Seneca College of Applied Arts and Technology that's also offered at 15 other Ontario Community Colleges.

Guy Battaglini, co-ordinator of Humber College's home inspectors course, says within the past 10 years a lot of people have discovered they have purchased homes based on unqualified people calling themselves home inspectors. He adds that they likely had no formal education or training to understand the different systems that comprise a home.

"In some cases, it might have resulted in buyers being upset because it cost them an additional $20,000 or $30,000 in further repairs," he says.

Many people get inspections done when they buy older homes, but having new homes inspected is increasingly common. Another growing trend among sellers is having an inspection done before putting the house on the market.

"We've seen that trend over the past five years and roughly 25 per cent of our inspection work is for sellers," Carson says. "We call them pre-listing inspections."

There are many advantages to this, he adds, for the buyer and the seller.

See story in the Toronto Star »

March 8, 2008 in Buying Toronto Real Estate | Permalink | Comments (2) | TrackBack

First-time home buying 101

Buying Real Estate in Toronto — Made Simple

Once you have decided it is time to purchase your first home, you should decide what you can afford. Getting pre-qualified for a loan is the best way to determine this. To get pre-qualified, you should work with a lender that you have a good relationship with, or you can search for banks, mortgage lenders or mortgage brokers online.

Ideally, your total monthly mortgage payment should be less than a third of your monthly gross income. There are many special options available for first-time buyers, such as mortgage programs that require low or even no down payments and no closing costs. You should try to make your down payment as big as possible, because this means you will be borrowing less money and your mortgage insurance costs less, making your mortgage less expensive in the long run. Also, remember that you can usually negotiate your mortgage rate 0.5 to 1 percent lower than the posted rate.

Next it is time to decide what you want in a home and neighborhood. Consider the wide range of options from condos to large houses. If you have a hobby, work from home, or are starting a family, you should consider the extra space requirements. Ask yourself if certain features like large front and back yards, parking, garages, or energy efficiency are important to you. If you would like to rent out part of your house to help with the mortgage, you should look for a home with separate entrances or a finished basement. Once you have determined what type of home you are looking for, find an agent that you feel comfortable working with and who listens to you.

When choosing a neighborhood, consider your needs and wants. Research every aspect of a neighborhood. Find out the proximity of hospitals, emergency services and schools. If you have children, you will want to know about the quality of the schools in the area. Consider your transportation needs. Think about how long a commute is acceptable to you. Are there nearby highways, or public transit that would make your commute easier?

If religious institutions, shopping, dining and entertainment are important to you, get to know the area well, and figure out if it offers what you are looking for. Spend some time in the area at night to find out if you feel safe, and how noisy it is. Also consider property values and property taxes in the neighborhood. Can you afford it? A good real estate agent will be able to provide all this information and more about the neighborhood you are interested in.

Even if certain amenities such as quality schools are not important to you, you should still consider them in your purchase, as they will affect the price you get when you are ready to sell your home. When choosing a home, don’t buy the most expensive home on the street. You are much better off buying the least expensive home in a more expensive neighborhood. If you have narrowed down your search to particular homes, try to observe the neighbours. Do they have frequent loud parties late at night? Do they blast the music on weekends? Do they keep their front yards presentable and clean?

Before you put in an offer on a home, be sure to have it inspected by a qualified home inspector, regardless of the age of the home. A thorough inspection should uncover any safety issues, water infiltration, electrical problems, plumbing problems, roofing problems or structural problems. If problems are found, you may want to ask for a reduced price, or continue your search. A good real estate agent will often recommend a trustworthy home inspector.

When you get your mortgage, you will require homeowners insurance. Shop around to find a policy that meets your needs while being affordable. It is definitely worth spending some time researching different policies to find the right one for you.

When you are ready to put in an offer on a home, it should be lower than the seller’s asking price, but within reason. Too low an offer will be insulting to the seller and they will respond with a less favorable counter-offer. A good real estate agent will no what comparable homes in the area have recently sold for, and help you determine what the fair value of the home is. If the asking price seems reasonable, make your sure your offer is within the "market zone" for that type of property. The seller will then be likely make a more reasonable counter-offer.

It is commonplace to have each party’s lawyer review offer documents to ensure that both the buyer's and the seller's best interests are legally protected. And it's always helpful to hire a real estate agent you can trust, so your home purchase will go smoothly and you can focus on enjoying life in your new home.

March 4, 2008 in Buying Toronto Real Estate | Permalink | Comments (4) | TrackBack

What is mls.ca?

It's not the MLS®

Q: What is the difference between the Multiple Listing Service® (MLS®) and the consumer website MLS.ca?

A: The Multiple Listing Service® is a cooperative system used only by REALTOR Members of Canada's real estate boards. It is accessible to any REALTOR Member who has agreed to represent your interests and share remuneration from the transaction with a cooperating REALTOR Member. The MLS contains detailed information and numerous search tools, all designed to match people with the properties that fit their exact requirements. MLS.ca is a website operated by the Canadian Real Estate Association (CREA) that displays an abbreviated version of most listings uploaded to the MLS system.

See Toronto MLS listings here »

February 20, 2008 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack

An Appreciation for Home Ownership

Let's put things in perspective: homeownership is a great achievement and a terrific investment. But make sure you can afford it before you take the plunge. Once you determine you have the ability to cover all your housing costs then it's time to go for it.

In most markets, homes appreciate at about 4 percent a year. Let's say you buy a home for $200,000 and put 10 percent down. That's a $20,000 outlay. If your house appreciates 4 percent, that's a gain of $8,000. So you just made $8,000 on a cash outlay of $20,000; that's a terrific 40 percent return on your investment. I don't think there's a better investment out there, and we haven't even factored in the priceless emotional gain you get from owning your own home.

When you leap Into home ownership make sure you will land with your feet on the ground.

A long time ago I learned a great piece of wisdom: The hardest thing to do in life is to jump a chasm in two leaps. My message to you is that before you take the leap from being a renter to an owner, please make sure your financial house is in order. Once you determine you can truly afford to be an owner, then you are ready to go and take the leap into home ownership. You've done your homework, which means it is highly unlikely you will ever regret making this big financial move.

February 17, 2008 in Buying Toronto Real Estate | Permalink | Comments (4) | TrackBack

Home Buying Advice from CMHC

Protect yourself with a team of real estate professionals.

Buying a home is one of the biggest decisions you'll ever make. So when it comes time to signing on the dotted line, make sure you don't make decision alone. To help you put together the right team of professionals, Canada Mortgage and Housing Corporation (CMHC) offers the following list of experts and what they should bring to the table:

Real estate agent.

Among other services, your real estate agent will help you find a home, write an Offer of Purchase, negotiate a purchase on your behalf and save you a considerable amount of time, trouble and headaches. When choosing the agent you want to work with, don't be afraid to ask questions or interview several before selecting the one that seems right for you.

Lender or mortgage broker

Many different institutions lend money for mortgages, including banks, trust companies, credit unions, pension funds, insurance companies and finance companies. It can be a good idea to shop around and speak with more than one lender before you make a choice. Many Canadians choose to work with a mortgage broker because mortgage brokers don't work for any specific lending institution, they can often help you find a mortgage with terms and rates that will suit your needs.

Lawyer

A lawyer will help protect your legal interests by ensuring the property is clear of liens, charges or clean-up orders and will review all contracts before you sign them and your Offer (or Agreement) to Purchase. Make sure your lawyer is a real estate professional who understands the local laws and regulations, has reasonable fees and can explain things to you in plain language.

Home inspector

When considering purchasing a home, you should hire a knowledgeable and professional home inspector. He or she will be able to tell you if something in the home is not functioning properly, what repairs need to be done and whether there may have been any problems in the past.

Insurance broker

An insurance broker will help you with property and mortgage life insurance. Your lender can also help you with mortgage life insurance.

Appraiser

An appraiser will assess your property's worth and help protect you from paying too much.

Land surveyor

You may need the services of a land surveyor if the seller does not have a current Survey or Certificate of Location.

CMHC is Canada's national housing agency and a source of objective, reliable housing expertise. See articles about buying a home on the CMHC website »

February 14, 2008 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

Meet Ted Truitt

Ted Truitt is "real estate's greatest sales legend," "the king of close," "the archduke of acreage," and "the dean of the deal." Now here's the real estate coach your agent needs.

Meet Ted and take his "tedst" »

February 13, 2008 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

First-time buyer expectations muted

Saving for the down payment on that detached house in downtown Toronto? Don't bother.

If recent surveys are correct, escalating housing prices are putting detached home ownership in areas like downtown Toronto out of reach for the first-time homebuyer. Don Lawby, president of Century 21 Canada, says first-timers should stop focusing on buying a dream home and concentrate on simply getting into the market. "I think that the reality is you can have your heart set and you can have a dream, but your dream can't be fulfilled as an entry-level buyer the first time."

Lawby is referring to a national survey conducted by Century 21 that finds Toronto to be one of the most expensive markets in the country.

An annual home ownership survey conducted by the Royal Bank found similar results. About 29 per cent of Canadians polled by RBC reported an intention to buy a home over the next two years. Most of those who will be buying (46 per cent) were aged 25-34, suggesting that for many it would be their first. In fact, 41 per cent of those who say they are "likely" to purchase within the next two years are currently renting.

And Statistics Canada data has found a national trend toward the purchase of condos, townhomes and other multi-family dwellings. The number of Canadian homeowners who own a detached single-family house is down 6 per cent from 1996. It all adds up to first-time-buyers having to be prepared to make significant trade-offs if they want to live in prime markets. "Escalating prices mean you're going to get less for your money," he points out.

"What you shouldn't do", Lawby says, "is keep saving in the hopes that the prices will fall any time soon."

There is another option: an advance on inheritance.

"In some cases parents are saying, I have extra money in my home– I'm going to give it to you and you can use it," says Lawby. "I'm going to help you out now but it really is your inheritance down the road.'"

Barring that, Lawby says young buyers should get over the idea that they'll get everything they want on the first go.

"I think we've become an instant gratification community," he says. "People feel more entitled, but the reality is you have a job, you have income and you need to get a mortgage you can service."

February 10, 2008 in Buying Toronto Real Estate | Permalink | Comments (4) | TrackBack

Toronto District School Board

The Toronto District School Board serves almost 1.4 million electors of the City of Toronto. It is the largest school Board in Canada and among the largest in North America. Public schools are funded through property taxes collected by the provincial government and sent back through specific funding formulas to school boards. The provincial funding formula establishes the total revenues available to school boards to provide education programs and services to their students.

Gerry Connelly is the Director of Education and is assisted by executive officers with responsibilities for instruction, reporting and improving academic performances, business services, human resources, the operation and maintenance of our buildings, and student and community services.

To learn about the educational system in Toronto, visit the Toronto District School Board's website »

January 28, 2008 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack

Condo-mania in Toronto

Toronto offers world-class condo living

The Toronto core boasts a growing abundance of gorgeous city condominiums that offer such features as fourteen foot ceilings and sunny south east exposures, some so open and spacious you feel like you are living in a house. Well-designed condos with contemporary comfort are providing ready access to a fantastic downtown lifestyle in the residential quadrants of the Toronto core.

Owning a condominium provides all of the benefits of owning a home without the responsibility of maintenance and repair such as snow shoveling, grass cutting and gardening. In many condominium complexes you will enjoy the added benefits of 24-hour security, fitness facilities, and recreation & entertainment centres.

Downtown Toronto features a large selection of residential options that offer accessibility to the many cultural, historic, educational, leisure, retail and employment opportunities that Toronto holds. The Bloor Yorkville area alone offers 700 designer boutiques, restaurants, hotels, and world-class galleries. Other well known districts offering compatible fare are The Annex, Cabbagetown, and Chinatown, to name a few.

Residing in the Kensington Market area and the closely located Little Italy District brings you within easy reach of some of the freshest produce and best selection of cheese vendors in the City of Toronto.

Forest Hill offers homes of distinction that reflect individuality in architecture, landscaping and personalized residential uniqueness. Within the vastly growing city of Toronto and the greater Toronto area, Forest Hill maintains its unique existence as a quiet, charming, cozy village with a flair for offering an extensive and interesting assortment of restaurants, cafes, and bakeries.

Toronto’s historic west neighbourhood of High Park proudly presents homes located on tree lined residential streets. Like Forest Hill, quiet, intimate areas can be found with some homes being located on streets that reflect a mews style appearance. High Park is known for its 399 acres of green space and sport facilities for swimming, tennis, soccer, cycling and trails.

Families are moving back from suburbia and relocating in downtown Toronto. Spending years commuting on the freeway and stuck in traffic rather than time at home, parents are looking for opportunities to spend more time at home with family in their own community, downtown Toronto.

January 26, 2008 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack

Can you afford it?

A worldwide survey says forget about Vancouver but consider Regina ... or Buffalo?

With house prices soaring by 10 per cent in the past year, many Canadians are struggling to find an affordable home. But take a step back, and Canada's situation doesn't look so bad, as Jason Kirby reports in the current issue of Maclean's. In fact, when compared to some of the world's other major centres, Canadian cities still offer some of the best housing deals anywhere.

Each year, Demographia—a U.S.-based real estate research firm—reports on housing affordability in 159 major markets around the world. Their most recent report found that Canada had some of the most affordable regions of all the nations surveyed(which included the U.S., the U.K., Ireland, Australia and New Zealand). In fact, Regina, is listed as one of the three most affordable markets(Fort Wayne, IN, and Youngstown, OH, were the others).

And while both Vancouver and Victoria ranked among the 25 least-affordable markets in the survey, earning the description of "severely unaffordable," they were the only Canadian cities represented in that category—well below the number of U.S. cities(14), as well as the U.K.(5)and Australia(4).

Calgary and Toronto, meanwhile, were described as "seriously unaffordable," while Montreal, St. Catharines, Edmonton, Hamilton and Halifax are "moderately unaffordable." But good news - several Canadian cities were classified "affordable," including Ottawa, Saskatoon, Quebec, Winnipeg, and of course, Regina.

December 26, 2007 in Buying Toronto Real Estate | Permalink | Comments (3) | TrackBack

Honestly seeking an agent ...

Here are some thoughts on choosing — or not — a real estate agent.

1. Identify an Agent who is first of all competent.

Before you even contact the agent, see what you can learn about your prospective Realtor. Realtors like to talk about about you as a "prospect". You might as well talk about about them as as "prospective agents". Create a list of half a dozen Realtors, and then filter though that list. Can you get a good referral from a trusted friend or business associate? Add that name to your list. Check out the Internet web sites to see who is doing what in the area you are interested in. Be careful not to assume that a "Top Producer" can do the best job for you. Maybe. Maybe not. We're looking for competence here, not volume and certainly not hype. Check out the Realtors resume, and find out what has he been doing all these years that will contribute to doing an extraordinary job for you. Frankly, someone who has been an auto-worker for 25 years and then gets a real estate license probably does not meet the competency standard. That person could do a great job for you on a single family purchase or sale, but you can still end up with some very serious and expensive battles because an offer was not drafted precisely. We never get away from the challenge that all Realtors have: when a Realtor drafts a contract, they are held to the standard of a lawyer.

Look at the prospective Realtor's history. Does she/he have experience in anything related to real estate that can be helpful ? Was he a builder, contractor, plumber, inspector, loan officer or property manager? If not, it's not the end of the world, if she has a lot of experience that can substitute. Remember, the goal is to find a Realtor who knows a lot more than you do about buying real estate, and who can keep you out of trouble in the process. You want someone you feel is competent and can do a great job for you.

2. Filter the competent ones with another qualification — honesty.

Some may think I'm kidding when I say find an honest Realtor. I'm not. Honesty in this context isn't the simple childhood concept of not telling a lie. Today, our culture has extended the boundary of subtle misrepresentations far into dishonest territory, but it's not considered dishonest by most standards. What isn't said is often as much of a misrepresentation as what is said. So be on guard. Make sure you have enough discernment to recognize honesty, or lack thereof. And, by the way, there are a some less-than-honest agents out there.

3. Hire the Agent because the Agent meets your criteria, not just because the Agent works at a large franchise.

When you hire a Realtor, you hire the person, not some "branded" franchise or corporate atmosphere. It's your Realtor who does the work, and if she can't do it well, the rest of the Brokerage is not going to do it for her. Furthermore, if he delegates important responsibilities to a non-licensed person or a less experienced agent, what good did the image of the franchise accomplish for you. Maybe the opposite of personal attention. Ultimately, whether you get outstanding professional service depends on your Realtor, not the rest of the organization.

4. Know what to expect from your Agent, and what he/she expects of you.

If you have made a list of half a dozen prospective Realtors, filter through that list with further research, much of which can be done right on the Internet. You should personally interview the final contestants in person and in their office during the week day.

Once you have decided on a Realtor, tell him exactly what you expect of him, and ask him if he could do those things for you. Then ask your Realtor something virtually no one asks their Realtor in the beginning, "What exactly do you expect of me?"

Conclusion

If you do these things, you minimize the chances of misunderstandings, you increase the probability of a successful relationship and a successful real estate transaction, and that means more money in your pocket and less stress. And as Martha would say, "That's a good thing."

December 16, 2007 in Buying Toronto Real Estate | Permalink | Comments (3) | TrackBack

The home buyers' wish list

Have you ever gone to the grocery store without a shopping list and come home with products that piqued your fancy — a bag of potato chips, perhaps, or a half-gallon of fudge ripple — but no coffee or bread or other item you know you needed? It’s okay; we have too.

But what’s acceptable in the aisles of the local Loblaws or Sobeys is not such a good idea when you’re spending a hundred thousand dollars or more on a house. That’s why savvy home buyers make lists before they begin looking at specific houses. It’s a great tool for determining what you want, what you need, and what compromises you’re willing to make.

Your list can take many forms. Some buyers jot down the amenities they need (e.g., type of construction, number of bedrooms, a garage or fenced yard) and the amenities they want (e.g., a large kitchen or master bathroom with jetted tub). Others rank specific amenities along a continuum of desirability. Either way, such lists can go a long way in helping you determine just how important various features really are.

If you’re buying with a spouse or partner, have them make their own list — and be prepared to compromise on the differences. And if you’re working with a real estate agent, be sure to share your list(s) with them; they can search thousands of listings based on dozens of criteria. Either way, carry your criteria with you and compare how the houses you look at stack up.

But when everything else is right, it’s funny how you can forget all about something that you thought you absolutely needed.

If there’s one thing to remember about your list, it’s this: Don’t let your wants blind you to your needs. It’s all too easy to be dazzled by a big deck or master bathroom, for example, and completely miss the dimly lit bedrooms or lack of closet space.

Focus on what you want and you may overlook a home that fits your needs perfectly; focus on what you need and you may be able to add what you want down the road. (It’s a lot easier to add a deck than relocate a bedroom.)

Likewise, once you start looking at homes, don’t be surprised if you start looking at your list differently, too. Simply put, no home will meet all your criteria, and compromises are inevitable. Needs turn out to be wants, wants suddenly become needs, and no one but you can determine which is which. Update your list as you go along and you’ll eventually zero in on the amenities that really matter. Yes, it will be a compromise, but it will be one you can live with.

Other People’s Needs

Even when you’re buying a home, it’s a good idea to think like a seller. (You probably will be at some point.) To maximize your home’s appeal for future buyers, look for the amenities most other homebuyers say they want or need:

Now let's get to work on that list ...

December 10, 2007 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

Homes for the holidays

Toronto's new transfer tax is just one factor as real estate agents, lawyers and movers brace for a busy end to 2007.

Many in the real estate industry are expecting a much busier than usual December. In Toronto, it may be those rushing to beat the new land transfer tax, but there is also a trend to relocating for new jobs before the end of the year -- also for tax purposes.

IF YOU'RE SELLING: If your house is on the market or you have a move scheduled for this holiday season, Toronto Real Estate Board president Maureen O'Neill suggests simplifying your life by getting rid of things.

She also recommends cutting back on social commitments. "Don't try to do it all – baking, parties and children's activities," O'Neill says.

Outsourcing as much as possible can help you to be ready for those unexpected showings without making the season unnecessarily stressful.

House cleaners can be useful and ordering out for food can save money and help you keep the kitchen clean for those sudden showings.

IF YOU'RE BUYING: Because lots of people take time off in December, transactions tend to move more slowly during the holidays, so lawyer Darlene Richards-Loghrin urges you to put your finances in order as soon as you sign the purchase agreement.

"It's more difficult to get mortgage financing at this time of year," she says. She also points out that being pre-approved isn't the same as getting the mortgage.

With banks becoming more cautious, they're starting to do their own assessments, Richards-Loghrin says. And if you've agreed to pay $450,000 for a house the bank says is worth only $399,000, it will give you 80 per cent of that.

Her advice is to "keep your head" while bidding. "Don't get caught up in a bidding war, thinking you have to be in before end of year, or before Christmas. Remember your top price and where you want to go, and stick with it."

December 1, 2007 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack

Toronto's Rosedale: Sold.

If you are thinking of buying a nice Rosedale mansion in time for Christmas, you might be out of luck. Real estate sales in Toronto's toniest neighbourhood - home to corporate titans, socialites and the odd rock star or two - has slowed to a trickle. Why? All of the good properties have been sold.

"All of Rosedale is sold-out in the $2.3-million-to-$5-million range," declares Sasha Josipowicz, a partner in Pyramid Architecture, a Toronto-based company specializing in buying, renovating and then selling high-end homes. "All that's left are oversized, overpriced properties. The well has run dry," he says.

But don't move to Willowdale just yet. Real estate, as Chestnut Park's Jimmy Molloy sees it, is cyclical. "It comes and goes in flurries. We may not see a crop of magnificent Rosedale properties until after the holidays. But I can assure you that by Jan. 15, the bloom will be back on the rose of Rosedale."

For James Strathy Warren, sales representative with Royal LePage's Johnson & Daniel Division, that prediction conforms to his own observations. "The Rosedale market tends to move more swiftly in the spring, from January through June, when there is more selection and a larger pool of buyers, from both Toronto and abroad.  " The most expensive sale this year in Rosedale happened this fall, however, while in previous years they happened in the spring."

Mr. Strathy Warren is referring to his own sale of a Glen Road heritage mansion - originally built in 1929 by Simpsons founder C.L. Burton - that set a Rosedale record when it sold in September for $7.050-million to an unidentified Bay Street executive.

"That's who's driving the market in Rosedale these days," Mr. Warren says. "People who have inherited money or people who work in the financial-services industry." They are also the ones who can afford to wait.

Source  |  DEIRDRE KELLY in theglobeandmail.com

November 17, 2007 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack

Buyers battle for Toronto condos

Condo hysteria broke out on a Toronto sidewalk yesterday as people waiting in the cold for over a week to buy space in a luxury high-rise accused latecomers of butting into line. About 125 people – including some brokers and many others using paid proxies – took turns shivering in sleeping bags outside the site of an 80-storey condo tower to be built at Yonge and Bloor.

Last week those camping out for a piece of the $450-million skyscraper decided to make life easier for themselves by letting people leave their places so long as they showed up for roll call every few hours.

The social pact worked harmoniously until yesterday morning, when a couple of agents claimed spots at the front of the line a few hours before the sales office opened for the first time at noon.

See story in thestar.com »

November 15, 2007 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack

Tax changes aid homebuyers

The tax changes outlined in the federal government’s economic statement are one step in helping Canadians buy a new home. The reduction in the GST rate from seven per cent to five per cent will deliver substantial savings for new homebuyers. According to government figures, a family purchasing a new $250,000 home will save $3,200 in GST, of which $1,600 is from the reduction in the GST rate from six per cent to five per cent.

The latest one per cent reduction in the GST will also help Canadians pay for home renovations, or in the purchase of appliances or furniture. Canadians spend an average of $7,475 on renovations when they buy a home, and spend another $3,950 on furniture and appliances. The GST cut represents $114 in savings based on these averages.

November 13, 2007 in Buying Toronto Real Estate | Permalink | Comments (2) | TrackBack

What your agent needs to know

Real estate agents would say that the more you tell them, the better they can negotiate on your behalf. However, the degree of trust you have with an agent may depend upon their legal obligation. Agents working for buyers have three possible choices: They can represent the buyer exclusively, called buyer representation, or represent the seller exclusively, called listing agent or represent both the buyer and seller in a dual-agency situation.

Provincial regulations require agents to disclose all possible agency relationships before they enter into a residential real estate transaction. Here is a summary of the three basic types:

You should have a full understanding of the nature and scope of the representation that you can expect before you initiate the real estate buying process and transaction.

November 13, 2007 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

Condo Madness in Toronto

People queuing in eight-night campout mostly being paid to hold spots for real estate agents

Toronto's real estate market reached a new high - or low, depending on your point of view - this week as more than 60 people set up temporary camp on Bloor Street to spend eight nights awaiting the opening of the sales office for the new One Bloor condo development.

When those doors open at noon next Tuesday, the people in line will give up their places in line to dozens of real estate agents who will have first option on the $850-a-square-foot units. Many expect the 80-storey tower to sell out on that brokers-only day.

See full story in the Globe and Mail ...

November 7, 2007 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack

Other online real estate sources

Realtor.com is the official site of the American National Association of Realtors, and part of a larger organization called Move.com. According to their Web site, Move.com provides consumers with the real estate content, decision support tools, and professional connections they need before, during, and after a move. Move.com is a publicly traded company that operate several other real estate-related Web sites in addition to Realtor.com.

The relationship Realtor.com has with NAR allows them access to many, though not all, of the active for sale listings in the country. Typically, Realtor.com will receive listing information directly from the more than 900 MLSs across the U.S., though in some areas (like the Toronto Real Estate Board) the brokerage may have to submit a feed to them in order to have their listings displayed.

Realtor.com is the most visited real estate site on the internet (possibly the second most visited if Google broke out their real estate traffic separately). They do not display homes that are for sale by owner or many of the new home development properties.

November 4, 2007 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack

Suite on Toronto Real Estate

As property markets continue to reel from the American sub-prime mortgage crisis, one housing market is still booming and shows no sign of slowing down. The Canadian condo boom is in full-swing. Sale prices Toronto have soared by 15.7 per cent since last year, according to Royal Le Page Real Estate Services, with the average price for a condo now clocking in at $241,818.

Because Canadian banks do not loan as aggressively as those in other markets, and, in fact are very conservative in their lending practices, we are not experiencing the kind of default issues that are occurring in other markets. The quite restrictive lending practices result in a market that is also quite stable.

Fuelled by steady population growth (more than 50,000 people move to the city each year) and laws preventing urban sprawl, Toronto's downtown condo market is flourishing. Feeding the high-end market are second-home buyers and foreign investors. Most renters of means rent condominiums from investor buyers, as indicated in a survey published by Canada Mortgage and Housing last month showing that in Toronto the vacancy rates are lower in the most expensive buildings.

An increasing desire to live in the city rather then suburbia means that the rental market is also flourishing.

The recently completed Wellington on the Park is located steps from the vibrant, bustling area of King Street West. The development overlooks a large green city park and is a short stroll from Lake Ontario. It is also just a few minutes from the financial heart of city and the country and on the doorstep of Liberty Village - a regenerated residential community, filled with galleries, cafes, shops and restaurants.

A little further up town is the Mosaic. Located in one of Toronto's most established and desirable residential areas The Annex, this property promises to be an idyllic development. It is within walking distance of some of Toronto's key attractions including the Royal Ontario Museum, the Royal Conservatory of Music, and the famous Yorkville district bursting with boutiques, outdoor markets and restaurants.

As Toronto continues to grow, real estate prices will continue to spiral upwards along with the condos, making for a very attractive investment opportunity in one the most culturally diverse and exciting cities in North America.

October 31, 2007 in Buying Toronto Real Estate | Permalink | Comments (3) | TrackBack

At last, INTELLIGENT home search

A new Toronto website, RealEstatePlus.ca, has taken power of Web 2.0 and applied it to real estate. It brings accurate, immediate, easy residential real estate search directly to your home or mobile phone. And, with the complete MLS® database, it presents specific property details for all of the homes for sale in Toronto.

Imagine the possibilities!

Whether you’re a home buyer or seller, a real estate professional, or just plain curious, it's a great addition to your real estate intelligence gathering.

Incredibly simple — all you have to do is type the address or location of any home (ie: 123 Main Street or Riverdale) and instantly you’ll know the scoop on that great mansion or the cozy cottage next door, all for FREE!

You’ll get complete info about the property including:

Plus, all of your previous searches are saved on website under your RE+ profile. So feel free to walk around the block and then check out the houses for sale on the website, where they’ll be patiently waiting for you – neatly displayed on one page. It’s that easy.

Want to know more? Well, you can access detailed info on recent sales, to estimate values, interactive maps and demograghic details ... plus, plus, plus.

Oh by the way, for detailed information you'll be asked to Register, a manditory requirement of real estate industry regulators.

So what are you waiting for? Try it right now »

October 1, 2007 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

House-hunting for the über-rich

For house hunters at the highest echelon of the housing market — we’re talking properties valued in the millions — touring homes may involve being escorted in a private jet or helicopter for an aerial view, according to the website for the Daily Telegraph in the United Kingdom.

Buyers of such homes often acquire their residences through private sales, “low-key transactions” in which the availability of the residence is known only to a select few, and the home never actually hits the public market. Buyers can be charged “house-search fees.” For instance, one company, Quintessentially Estates, charges clients 1.5% the price of a property — or £30,000 for a £2 million property, the website says.

The real-estate agents who facilitate such sales often do more than just initiate and close the transaction — they often stay involved, helping with details like finding furnishings, introducing families to local schools and hosting house-warming parties, according to the story.

September 19, 2007 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack

Bringing neighbourhood options home

Toronto real estate website helps home buyers fit into a booming housing market

Arecently relaunched website, Realosophy.com helps Toronto consumers understand their home buying options in a hot real estate market. The expanded website now offers Toronto and GTA neighbourhood profiles featuring at-a-glance school performance reports and an insider's guide to the home buying process. Realosophy.com is a free information service that does not require users to submit email addresses or other personal information. "Toronto home buyers are feeling anxious about fitting into a booming real estate market," explains Realosophy's founder, John Pasalis. "Buyers are increasingly diverse. They want their homes to fit their particular lifestyles. But media reports about sky-rocketing prices and fake multiple offers leave them wondering how to make this happen."

Realosophy.com helps empower consumers with the following resources:

1) Toronto and GTA Neighbourhood Profiler

The profiler combines popular online tools such as Google Maps with housing and school data in an easy-to-use neighbourhood search format. It offers profiles for over 175 neighbourhoods including lesser-known options. Each profile highlights average area prices as well as dominant housing types, allowing users to quickly assess affordability and lifestyle suitability. The profiler also offers consumers a unique look at schooling options. Over 1,700 public and private schools are mapped by neighbourhood. Provincial school data is presented at-a-glance to illustrate the performance of local public schools. Realosophy understands that not all consumers measure neighbourhoods with the same yardstick. The profiler's 'deal breaker' feature brings the all-important morning coffee run to life as Starbucks and Tim Hortons locations are mapped by neighbourhood.

2) The HomeBuyers Guide

The HomeBuyers Guide is a pro-consumer look at home buying in Toronto. Using a step-by-step, jargon-free approach, the guide provides consumers with insider tips on handling major worries from choosing the right real estate agent to picking out a fake multiple offer.

For background information, including Realosophy's story, team bios, screenshots and fun facts, visit: www.realosophy.com/press.

September 18, 2007 in Buying Toronto Real Estate | Permalink | Comments (2) | TrackBack

We're selling lifestyle here ...

Casual observers may smile at the names of condominiums that strain to convey a sense of luxury or privilege that bears no relation to their design or setting. But in the big-money world of condo development, where a lifestyle is being sold along with the floor plan, names matter.

The christening of any product — whether it be cologne, cars or condos — is crucial to the construction of a consumer fantasy. It all comes down to branding. A condo fantasy might be New York sophistication, resulting in names like the Beresford or the Brownstone. It might be European worldliness, hence the Brava, Espana and Symphony Place, where buildings are named Vita and Dolce. Or it might be a simple declaration of style: the Élan, the Moda, the Retro.

Catchy names do work; they attract attention and draw in potential buyers, which is why marketing condos usually involves a team of experts brainstorming for hours to find the perfect moniker. "The name is the hardest thing about a project," says Pamela Groberman, a public relations and media consultant who named the Opus Hotel in Yaletown, B.C.

She was also involved in a successful public relations campaign in which a contest was held for condo buyers to name their development, the Élan.

"It's amazing, the time and energy and thought process that goes into it," says Ms. Groberman, who prefers stylish, contemporary names. "

Everybody notices a condo name — especially when it's a dud. "Everybody talks about it," says Ms. Groberman. "It goes through the industry, and everybody says, 'What were they thinking?' "

August 31, 2007 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

Home Buyers' Fearbusters

No worries. Though buying a house can be stressful, fears can be calmed with a little homework and information.

Fear: Help! Everyone has advice for me. I'm going to be overwhelmed by all the things I need to know — I'll never get a house!
Fearbuster: Take a deep breath. Remember that other people have been through this, and they survived. And purchased a house. There are lots of people out there to help, from family members who have done it before, to professional real estate resources, to RealEstatePlus. Information is your friend — the more homework you, the easier the whole process will be.

Fear: The neighborhood’s cool, the homes are well-maintained, and I’ve found several I like. But the housing market means prices are just beyond my budget! Will I ever find a place to call my own?
Fearbuster: Broaden your search. If housing prices in that hip zip are too hot to handle, consider looking in nearby neighborhoods. They’re often overlooked, underpriced, and poised to benefit from the reflective glow.

Fear: The perfect home is always sold the week before I started looking!
Fearbuster: Sit down with your real estate agent and review your description of what you’re looking for in light of the kinds of homes you’ve seen so far. Were there homes you initially ruled out that might be worth a second look? For example, could you do without a separate family room if that brought the price of a home within your range? And keep looking. The perfect home may be just around the corner.

Fear: I'm looking for an agent, and I want to find one who will help me get the best deal. But there are so many agents after my business that I'm afraid I'll choose the wrong one, and the seller will have the upper hand.
Fearbuster: You want to do some homework when picking an agent. It’s especially important to have a list of questions to ask. Don't be shy about asking questions and you'll be fine. Inspect what you expect. Many agents will tout that they have great internet marketing....check to see they do. An agent web site is simply not enough.

Fear: I'll choose an agent who won't pay any attention to me.
Fearbuster: Interview at least three agents before making your choice. And don't hesitate to ask your friends for referrals — they've been through it. Many agents will talk a good talk. Check and see what they say is true. Look at one of their listings on mls.ca. Does the listing have multiple photos and an accurate description? If not, move on. If they offer an excuse....move on. Do you want excuses from a professional?

Fear: What if the seller turns us down flat?
Fearbuster: Barring an insane seller’s market, if you and your agent have presented a reasonable offer, backed by a strong market analysis , the seller should be willing at least to make a counter offer. If not, there’s nothing you can do except resume shopping — and be glad you won’t be dealing with someone who likely would’ve given you weeks of misery and then probably quashed the deal anyway. The good news is: Your new home must actually still be out there.

Fear: I want the house, but I'll have to give up too much to get it!
Fearbuster: Figure out what is really important to you about the house; that becomes your baseline negotiating point. Concentrate on that, and you will find you can probably live without some of the other conditions.

Fear: I hate, I mean hate, confrontation. I'm worried that the seller will hate me if I negotiate.
Fearbuster: The seller probably won't accept your first offer, but it doesn't mean they don't like you! Think of it as a conversation, rather than an argument. Identify what kind of market you are in, equip yourself with a few negotiation techniques, and then build in as many (or as few) conditions as you think will be accepted.

Fear: Yikes, now I have a $250,000 mortgage. What if I lose my job, they foreclose on my house, and my life is ruined!
Fearbuster: Putting money aside for a rainy day is easier said than done — particularly when you have just made the biggest investment of your life. Begin to squirrel away emergency funds and even open a line of credit, if you qualify, so you’ll have funds to get you through a rough patch.

Fear: What happens if the seller accepts my offer but my financing falls through or I lose my job?
Fearbuster: The contract should contain contingency clauses designed to make it possible for you to pull out of the deal and get your deposit refunded. A standard condition is that your mortgage loan must be approved (committed to by the lender). If you lose your job after you get a committment you will still get the financing.

Fear: I may be buying into a declining market, in which case my hard earned down payment could be quickly wiped out.
Fearbuster: Do your homework, find a real estate agent that knows the area you are looking in and has been in the business for a few years. A good place to find an agent is usually through friends, family, or co-workers. Good agents will usually know how the market trends have been in their area, and have attended many educational courses giving them a strong outlook on the real estate market. In addition, a good agent should be able to answer your questions or concerns. If they are unable to answer your questions, keep looking until you find an agent you are comfortable with.

August 15, 2007 in Buying Toronto Real Estate | Permalink | Comments (3) | TrackBack

Dear seller: Please pick us!

In a competitive market, some buyers are trying to seal the deal with a sentimental plea

After considering more than five different offers on her downtown Toronto condo in June, Stacey Mitsopulos narrowed the field to two potential buyers. After some deliberation, and to the shock of her real-estate agent, she opted for the one bidding a lower amount. "I wanted it to go to a woman," said the entertainment lawyer.

"I thought, she's single, she's successful. I felt like I could relate to her more even though I had never met her."

In Toronto's intensely competitive housing market, buyers are increasingly making emotional appeals to sellers like Ms. Mitsopulos, describing their lives, decor tastes and even their dreams in an attempt to come off as kindred spirits and sway the financial transaction in their favour.

Some write letters, submitted with their official offer, in which they detail their plans to start a family in the home or compliment the owner's taste.

When a house in the Beach neighbourhood of Toronto recently sold for $600,000 over the asking price, one bidder even sent family photographs to the seller in an attempt to pull on the heartstrings.

Real-estate agents, too, have got in on the act, managing their clients' look and attitude just as they would stage homes with expensive art and fresh flowers.

"You try and humanize the offer, put a face to it," said Toronto agent Marny Hersenhoren. "It's usually a bottom-line business, but people like to know who's moving into their home."

To help her prospective buyers land a deal, she has often included family snapshots with offers and advises her clients to write personal letters to sellers, explaining why they love the house and how they envision their lives within it.

"Nothing too saccharine," she said. "They usually say, 'We love your home, we absolutely know that this is it and want you to know it will be taken care of.' "

She has also included the home's street number in the price her client is offering.

So, for a bid of $500,000 on the house at number 49, she advises a minor tweak to make the offer $500,049 - a price that will catch the seller's attention.

And while it may seem unlikely that homeowners would be influenced by such tactics, Ms. Hersenhoren has seen them work first hand.

One of her clients bid on a home that had been put on the market by owners who wanted to know whether the buyer would look after the garden, what paint colours they planned to use, and whether they would preserve the interior's original wood features.

Although another couple offered more money, Ms. Hersenhoren's client eventually won the house because she answered the questions to the sellers' liking.

"They had lived there for a long time, they had raised their kid there and were really attached to it," she said. "They saw it as a better match."

William Strange, a professor of real estate and urban economics at the University of Toronto's Rotman School of Management, said buyers are simply engaging in the psychological manipulations long practised by those listing their homes.

"I suggested to a friend that they borrow another friend's kid when they were looking at houses," he said. "I know some people in Vancouver who were able to get a home at below market price because they had a new baby and the owner thought they were a nice family."

But there are problems that go along with this kind of behaviour, he said. In the United States, research has found evidence that homeowners will often sell to families who resemble them, not just in taste or family values, but in race.

"So this perception thing's got an ugly side to it," Prof. Strange said.

He would refuse to read letters submitted by prospective buyers if he was selling his home, he said.

"I just wouldn't want to get it. It's just not germane. I'd like to meet anyone willing to give up $5,000 for the sake of a nice family."

Ms. Mitsopulos insists she was not taken for a sucker. Among the information she gleaned about her female buyer was that the woman had already bid on, and lost, three other condos.

"I knew I could get more money out of her," said Ms. Mitsopulos, who made the female bidder raise her price by $6,000. "I didn't give it away."

But what if the other couple had offered her an additional $10,000 - would she still have leaned toward her kindred real-estate spirit?

"Oh, I would have sold it to them in a second," she laughed. "It really was all about the money."

Source: From Friday's Globe and Mail

August 12, 2007 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

How to decode real estate ads

The most over-used expressions and what they really mean

Reading the real estate descriptions can be like reading in a foreign language, or worse, overzealous words in real estate advertising can make even a snake pit look attractive. Don't panic. We decode some of the language and abbreviations to put you well on the way to buying the home of your dreams:

The most misleading words in real estate (and what they really mean)

1. Cozy (too small)

2. Charming (too old)

3. Original Condition (appliances are 50 years old)

4. Needs TLC (it's a dump)

5. Conveniently located (noisy)

6. Desirable neighborhood (this little house has been way over-priced because the neighborhood has some snob appeal)

7. Efficient kitchen (too small to fit two adults)

8. One car garage (you can drive your Chevy in but can't get out)

9. Peek at the park/river/mountains (if you angle your mirror just so … )

10. Useable land (no trees)

11. Country Living (too far from anywhere to drive to work)

12. Must see inside (outside is ugly)

13. Unique (hard to sell)

14. Just available (previous owner just died on the premises, hope you don't mind).

Here's what's important if you want your house to sell: Compare your home to similar sized in your neighborhood. Compare them online and in your local newspaper. Also, be sure to know the median price in your neighborhood and price in the 'market zone'.

August 11, 2007 in Buying Toronto Real Estate | Permalink | Comments (2) | TrackBack

Toronto tax phobia benefits wealthy

It seems almost incomprehensible. Despite the urgent need to find a solution to the global warming crisis, the City of Toronto is contemplating deep cuts to our public transit system – one of the few public programs that move us toward a solution.

The proposed cuts to Toronto's subway system – and other vital city services – illustrate how truly short-sighted our rigid obsession with low taxes has become. We've adopted the notion that the highest duty of politicians is to keep taxes low, rather than to make our society – and our world – work better.

The Toronto example is particularly compelling, partly because there is a viable alternative available in the land transfer tax proposed by Mayor David Miller. But city council deferred a decision on the tax last month, following an aggressive anti-tax campaign orchestrated by the Toronto Real Estate Board, which claimed the tax "targets people who can least afford it."

In fact, just the opposite is true. The tax – imposed on property sales, with higher rates on bigger properties – targets people most able to afford it. A top rate of 2 per cent applies on properties worth more than $400,000.

Essentially, it amounts to a small tax on the enormous wealth accumulating in the hands of the privileged minority who own property in Toronto.

August 7, 2007 in Buying Toronto Real Estate | Permalink | Comments (5) | TrackBack

New home market up 33% in June

New home sales in the Greater Toronto Area rose by a remarkable 33 per cent in June with high-rise condos capturing a near-record share of total sales, Bob Finnigan, president of the Building Industry and Land Development Association (BILD), revealed this week.

According to RealNet Canada Inc., BILD's official source of new home market information, there were 5,013 new homes and condos sold in June with high-rise unit sales taking a 58 per cent share of the market.

Finnigan noted that low-rise (single-detached, semi-detached and town-home) sales were up 40 per cent with gains in every region, while high-rise (condo suites and lofts) sales were up 28 per cent with declines in the 905 regions offset by a healthy increase in condo sales in the City of Toronto.

"Monthly new home sales have not exceeded the 5,000 unit threshold since 2002 so these results come as a very pleasant surprise," said Finnigan, who added that year to date new home sales are up a healthy 5.4 per cent compared to the first six months of 2006.

Finnigan attributed the market strength to a combination of factors including buyers locking-in in advance of interest rate increases, a spate of high-profile new project launches, particularly by Toronto condo builders, and superb overall value aided by the healthy competitive market which persists among homebuilders in the GTA.

July 22, 2007 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack

The Australian way: Auction the house

When Toronto Real Estate Board president-elect Maureen O'Neill pronounced the city's multiple bidding process as transparent as possible, she likely didn't have Australia's approach in mind. In Sydney and Melbourne, an auctioneer stands in front of a home for sale and takes competing bids until the slam of a gavel declares it sold. Imagine that happening in Toronto.

"The bidding war goes on right there on the spot," said Graham Joyce, president of the Australia Real Estate Institute, which represents 85 per cent of the country's real estate agents. "It's certainly very public and you know how much you have to bid to get the property," he said, adding that the vendor sets a reserve price.

Told of Toronto's multiple bidding process – closed offers presented at a set time – Joyce said: "It's certainly not very transparent, is it." He wasn't surprised to hear that Michael Manley, defeated by O'Neill in recent elections for Toronto board president, complained of "phantom offers" – fake bids designed to fuel a bidding war.

Australia guards against "dummy bids" – what Joyce described as the auctioneer "taking a bid off the tree across the road" – by having potential buyers register prior to the auction. They're identified by the paddles they wave to make bids.

He's also convinced public auctions generate the highest sales prices. In Toronto-style bidding wars, "People may not feel comfortable going to their limit because they don't know what others are prepared to pay," he said.

About half of the homes sold in eastern Australia are auctioned publicly. The rest are sold through one-on-one negotiations: A buyer registers an offer, the seller may counter it, and they go back and forth until a deal is struck.

People who purchase homes this way get a "cooling off period" of several days that allows them to change their minds between the initial agreement of purchase and the exchange of title, Joyce said.

A further difference with Toronto is that 95 per cent of buyers don't use real estate agents. And agents by law must compete on the commissions they make. Commissions run between 1 and 3 per cent of sale price, compared with Toronto's unshakable 5 per cent.

"If there's any collusion amongst agents in relation to fee structures they're right on to us," Joyce said, referring to regulatory bodies.

Toronto residents don't need to look as far as Australia to find a different approach to selling homes. While Toronto-style bidding wars are common in Calgary and Vancouver, Montreal residents indicate yet again that they're part of a distinct society.

The average price of a home in Montreal has increased 60 per cent since 2000 – more than in Toronto. Yet real estate agents can't get Toronto-style bidding wars going. Montrealers are extremely reluctant to pay more than a home's asking price, let alone get involved in a blind bidding war.

"It's a cultural thing," said Andre Campeau, co-owner of a RE/MAX branch in Westmount, Montreal's wealthiest community. Montrealers approach real estate like an Arab souk; the asking price is an upper limit that has to be bargained down.

"When we see houses sell above asking, there are so few of them compared to Toronto that we say, `Oh, look at this.' They stand out," Campeau said.

One-on-one negotiations is the widespread method in Montreal. Vendors can negotiate more than one offer at a time, and should consider themselves lucky if they get a chance to do so.

"In Montreal, often, when a buyer hears there's already an offer on a house he will stay away. He'll say, `I don't want to be caught in a bidding war,'" Campeau said.

The Quebec Association of Brokers and Real Estate Agents, which administers the province's real estate act, restricts competition for homes. If a second offer comes in, the vendor can inform the first bidder and give him a chance to increase his bid. If bidder number one does so, the vendor can't tell bidder number two of the increased bid, Campeau said.

The Quebec association insists "you have one kick at the can ... no back and forth, don't fuel a bidding frenzy," Campeau said.

Don't fuel a bidding frenzy? Now there's a radical idea.

July 21, 2007 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack

Unexpected first-year costs

One in four first-time buyers caught off guard by early costs.

More than 600,000 Canadians will have a moving day by the end of August this year, and one in four first-time homeowners will be unprepared for the costs and surprises that come with their purchase, according to a recent survey conducted by Ipsos-Reid for First Canadian Title. “Despite the joys associated with owning a home, people are often dismayed at some of the surprise costs they encounter, particularly during their first year of homeownership,” said Susan Leslie, a Vice President with First Canadian Title. “These can range from something as simple as changing the locks to unanticipated closing costs or having to deal with something more serious like a property encroachment issue.”

Unexpected first-year costs can range from small items such as a new garden hose or a lawn mower, to more expensive items and repairs such as window coverings or a leaky foundation.

Despite the number of Canadians on the move, the survey found that as many as 26 per cent of home owners say they were totally or somewhat unprepared for the costs and expenses that come with the first year in their new homes. A much higher number – 43 per cent – rated themselves as very or somewhat unknowledgeable of closing costs such as mortgage loan insurance, legal fees and land registration fees.

The survey found that among Canadians, Quebeckers claim to be the most knowledgeable, with 66 per cent stating they were well aware of up-front closing costs before they made an offer on their first home.

The Ipsos-Reid survey also asked Canadian homeowners about the level of stress they experienced around moving day. The findings revealed that 1 in 5 – or 21 per cent – described the experience of moving as very or quite stressful, and about 65 per cent who described their move as very stressful were either totally or somewhat unprepared for the costs and expenses that come with the first year in their new homes (66%), or were very or somewhat knowledgeable about up-front closing costs before they made an offer on their first home.

Saskatchewanians and Manitobans experienced being very or somewhat stressed around the time of their moves at 29 per cent.

“There are a lot of emotional issues we encounter when moving, from fear of not being prepared to stress about the financial responsibilities that lie ahead. After all, our home is the most valuable purchase most of us will ever make,” said Leslie. “The best solution for stress is doing your homework – from budgeting and planning to ensuring that your property and title are properly protected.”

The Ipsos-Reid Moving Day online survey was conducted for First Canadian from June 18th to 22nd 2007. More than 1,000 adult homeowners were surveyed, and the results are considered accurate to within plus or minus 3.0 percentage points, 19 times out of 20.

July 20, 2007 in Buying Toronto Real Estate | Permalink | Comments (3) | TrackBack