Realtors win a green concession

Ontario eases home energy audit requirement

Ontario Energy Minister George Smitherman has backed down from a plan to require energy audits each time a house is sold. A new amendment to the province's Green Energy Act will allow home buyers to waive their right to the $300 audit, as long as they do so in writing.

The change will provide more flexibility in cases where the buyer intends to knock down the property or do major renovations, Smitherman said. But he said he's not anticipating that many buyers will opt out of an audit.

"I rather suspect as people are making the most important investment of their life, they're going to find that to be very valuable and important information," he said. "But we could see some scenarios where the home at question really isn't worthy of an audit, if you will."

Ontario realtors have complained the additional costs would hurt homeowners in what are increasingly difficult economic times. The Liberal government is backing off from the audits because it's afraid of the public backlash, said interim Progressive Conservative Leader Bob Runciman.

Many homebuyers will also be hit with additional costs when the province merges its eight per cent sales tax with the five per cent federal GST, he said. "They know that this is a problem for them and they have to back away, and this is one area where they can make some adjustment," he said.

The legislation will also be amended so residents will have an easier time objecting to wind turbine projects near their homes.

April 28, 2009 in Selling Toronto Real Estate | Permalink | Comments (0) | TrackBack

Realtors fight sales tax harmonization

Ontario's Realtors say the McGuinty governments plan to harmonize the GST and PST will add over $2,000 to the cost of a real estate transaction, hurting the resale home market and prolonging the housing industry's recovery from the current economic downturn.

"Now is not the time to be erecting barriers to homeownership," said Pauline Aunger, President of the Ontario Real Estate Association. "We need consumers to invest in housing to help get our economy going again."

According to the Canadian Real Estate Association, home sales in the province of Ontario were down 29 per cent in February, compared to 2008.

Under a harmonized sales tax (HST: 13%), home buyers and sellers will have to pay extra tax on a range of services associated with real estate transactions such as legal fees, moving costs, real estate commissions and home inspection fees. Currently, consumers only pay the 5% Goods and Services Tax on these services.

"These additional taxes could price some homebuyers, especially first-time homebuyers, right out of the market," explained Mrs. Aunger. "Harmonizing will not help homebuyers in any way."

For a resale house priced at $360,000, a HST could add over two thousand dollars in new taxes to closing costs. In total, a HST will add $313 million annually in new taxes to resale home transactions.

"In the last decade, Ontario's homeowners have faced a barrage of new costs," said Aunger. "From municipal land transfer taxes to sky rocketing property taxes, homeowners are being pushed to the brink to accommodate increasing demands from government. A harmonized sales tax is yet another cash grab on Ontario's already overtaxed homeowners."

The Ontario Real Estate Association represents 47,000 brokers and salespeople who are members of the 42 real estate boards throughout the province. Members of the association may use the Realtor trademark.

March 28, 2009 in Selling Toronto Real Estate | Permalink | Comments (2) | TrackBack

Energy efficiency law hits homesellers

Mandatory energy audits on home sales wrong, Toronto's
real estate agents say.

In the wake of a new municipal land-transfer tax and unmoored by a sinking economy, Toronto real estate agents are bracing for a new storm on the legislative horizon: Mandatory energy audits for home sales.

Ontario Minister of Energy and Infrastructure George Smitherman's proposed Green Energy Act, which was introduced to the Ontario legislature Monday, contains loosely defined "mandatory conservation and energy efficiency practices" that would cost home sellers about $300.

But with homes lingering on a stagnating market, and average sale prices dropping throughout the GTA, even the distant possibility of one more fee or one more bureaucratic obstacle, leaves real estate agents feeling seasick.

"It's not so much the dollars that it costs you to do the audit, I think you have to think long-term in terms of how will that impact your property value, what will that do to the market in terms of potential bottlenecks," said Von Palmer, spokesman for the Toronto Real Estate Board. "So the devil's always in the details and I think that's where we need to be careful."

See full story in the Toronto Globe and Mail »

February 25, 2009 in Selling Toronto Real Estate | Permalink | Comments (3) | TrackBack

Home sellers face $300 'green' audit

Ontatio's clean-energy bill would raise hydro rates and promote alternative power

Ontario residents won't be able to sell their houses or condos without first getting a home energy audit – which now costs about $300 – under the proposed new Green Energy Act. That's one of several measures in the legislation unveiled by Energy Minister George Smitherman to boost incentives for electricity conservation and encourage renewable sources of energy.

Critics fear the energy audits and Smitherman's estimated 1 per cent rise in household electricity bills as a result of the law will pinch pocketbooks as the recession deepens. "It'll be used to beat down the seller of a home," Progressive Conservative MPP and energy critic John Yakabuski warned of the audit, which would put detailed information on a home's energy efficiency into the hands of buyers.

Toronto homeowners are already concerned about the impact the city's new land transfer tax – in addition to the provincial one – is having on sales and prices. Both taxes add up to thousands of dollars even on cheaper houses.

While homeowners will have to get a private contractor to do an energy audit before selling, there will be no requirement to take any action – the measure is simply intended to inform potential buyers what state of energy efficiency a property is in so they can take action if desired.

See full story in the Toronto Star »

February 24, 2009 in Selling Toronto Real Estate | Permalink | Comments (2) | TrackBack

The Price is Righteous

Setting an equitable yet compelling price is key to a successful sale. But its tough. Buyers are usually well informed about recent events in the marketplace. They select homes by comparison shopping and are keenly aware of subtle differences in features and value. In their eyes, your price must be justified in comparison to other available homes.

Obtaining the best return for your property requires competitive pricing from day-one. A home should be priced according to recent market data comparisons.

There are a number of factors that influence the value of your property:

  1. Prior Sales
  2. Location
  3. Condition
  4. Improvements
  5. Market Conditions

Competitive Market Analysis

Taking these factors into account, we will prepare a competitive market analysis to reflect the current market value of your property. It includes an examination of your property as well as a study of competitive properties currently on the market and those that have recently sold. This information helps you to properly position your property.

No Realtor can control market value. The selection of a listing agent should be based on their service, fees and reputation, not on their estimate of market value. It is the 'invisible hand' of the market that determines the sale price you will ultimately achieve.

Competitive Pricing vs. Overpricing

First impressions are lasting. A house realistically priced and properly presented from day-one offers the best opportunity for you to sell quickly and obtain the best price.

Qualified buyers and their agents have been looking in your area and waiting for a suitable house at an appropriate price to come on the market. If reasonably priced, it is possible your property will sell quickly to waiting buyers.

Competitively priced properties encourage reasonable offers, pleasant negotiations and a smooth closing.

Overpricing costs in terms of money, disappointment, and missed opportunities. If the price is too high , buyers may not even look at an otherwise attractive property.

An overpriced property can go stale after the important first few weeks when the home is new on the market and getting the most exposure. Then, when the price is adjusted at a later time, the house is often overlooked.

If you were able to arrange a sale for substantially more than comparable properties it may fail to close through difficulty securing an appraisal and mortgage financing.

The Paradox of Price: When the 'price is right' buyers get involved quickly and sellers gain a competitive advantage. Use the paradox of price to your benefit. If you have the will to set a compelling price, the reaction of the marketplace will amaze you.

February 23, 2009 in Selling Toronto Real Estate | Permalink | Comments (2) | TrackBack

Improving Your Home's Curb Appeal

Home Selling Advice to Help You Attract Potential Buyers

A large percentage of home buyers decide whether or not to look inside a house or take it seriously based on its curb appeal—the view they see when they drive by or arrive for a showing. You can help make sure they want to come inside your house by spending some time working on the its exterior appearance. It's difficult to look at our own house in the same way that potential home buyers do, because when we become accustomed to the way something looks and functions, we can't see its faults. Decide right now to stop thinking of the property as a home. It's a house—a commodity you want to sell for the highest dollar possible.

Curb Appeal Exercise

The next time you come home, stop across the street or far enough down the driveway to get a good view of the house and its surroundings.

  1. What is your first impression of the house and yard area?
  2. What are the best exterior features of the house or lot? How can you enhance them?
  3. What are the worst exterior features of the house or lot? How can you minimize or improve them?

Park where a potential buyer would and walk towards the house, looking around you as if it were your first visit. Is the approach clean and tidy? What could you do to make it more attractive?

Take photos of the home's exterior. If you have a digital camera, view the color versions first, then remove the color and look at it in black and white, because it's easier to see problems when color isn't around to affect our senses.

Make a list of the problem areas you discovered. Tackle clean up and repair chores first, then put some time into projects that make the grounds more attractive.

Don't Forget the Rear View

Buyers doing a drive by will try their best to see your back yard. If it's visible from another street or from someone's driveway, include it in your curb appeal efforts.

Evening Curb Appeal

Do your curb appeal exercise again at dusk, because it isn't unusual for potential buyers to drive by houses in the evening.

One quick way to improve evening curb appeal is with lighting:

Landscaping Decisions

There are times that adding elements to your landscaping can improve curb appeal, but there are other times when removing something is even more effective.

For example, we had a listing for a large brick house with large white columns. Tall evergreens, planted in front of each column, had grown taller than the roof. They obscured the columns and windows and made it difficult to see the front of the house.

We suggested that the owner remove them. She trimmed them back, but it didn't do the trick—they were unattractive and still kept potential buyers from seeing the true character of the house.

I sold the house to a couple who could see past the trees. One of their first tasks after closing was to yank them out of the ground, instantly boosting the home's curb appeal.

Most buyers cannot visualize changes, and often won't take a second look at a house if the first look doesn't appeal to them. Home buyers who can visualize changes, and are prepared to make them, expect you to reduce the price of the house to compensate for the work they plan to do.

A Few Curb Appeal Tips

Toronto Curb Appeal
 

If you brainstorm, you'll find that there's a solution to most problems—one that lets you stay within your budget. The trick is to find the areas where improvements are needed, then work on them as best you can.

February 17, 2009 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

Selling in the current Toronto market

Step One: Face Reality

You unlucky soul. You bought in the red-hot Toronto real estate market but now you need to sell your home and the market is ... well, let's just say sad for sellers. So, what are your options?

The first thing is to take a bit of solace. You are not the only one in this situation. While the real estate may go through periods of hot and cold markets, it never comes to a complete stop. Homes were sold yesterday. Homes were sold today. And homes will sell tomorrow.

The question for you is how to participate in this limited market. Well, why don’t we take a worse case scenario. Let’s assume you purchased a home last year. You financed it with almost nothing down and went with a long term mortgage. The loan payments are high and you are going to have problems making them and you have almost no equity in the property.

The first option is often found to be an ironic one by most stressed homeowners. Instead of avoiding your lender like the plague, you should contact them. Lenders are fully aware of the problems homeowners are facing. The lender does not want defaulted loans on its books, so it will work with you. This often comes in the form of arrangements that will give you time and room to figure out what to do.

Now you must look objectively at your situation. Assume you purchased the home for $450,000 in late 2007 with a $420,000 mortgage. Prices, of course, have gone down in Toronto since last year. Much to your grief, you learn your home is now worth $420,000. If you can’t handle the mortgage payments, it is time to sell now. You will lose money yes, but you will be mitigating your loss as it will only grow as the current trends continue.

But if you can handle your payments indefinitely, so much the better.

Explore all of your personal options thoroughly and possibly get some financial and/or legal advice before you jump to any action.

To be continued ...

February 7, 2009 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

Why is your house not selling?

Sprucing up your MLS listing may be key to a beneficial sale

Are you one of the home owners who has your property for sale and coasted through the summer without selling? Inventory is slowly growing and competition is becoming fierce in the Toronto real estate marketplace. With the return of the fall market, we’ll see a boost in listings added to the inventory which means even more competition for you.

The new listings that enter the system this fall will have a distinct advantage over your property. They’re fresh. They’re new to the market and to a buyer that has been tire kicking all summer. Most importantly, the new listings are more likely to be priced well — perhaps better than yours.

Proper pricing is now king in the Toronto real estate market. If your home has languished on the market and you’ve not had a recent comparative market analysis or appraisal, you owe it to yourself to get one.

Contrary to popular belief, real estate has actually been selling over the summer. Those recent sale prices are what you need to compare with for pricing purposes. Pricing your home based on how it appraised several months ago or what the neighbour’s sold for last season isn’t going to cut it. It has to be priced for “right now.” Those homes that hit the market this fall will have “right now” pricing. Does yours?

Once your home is priced effectively for the market you might want to 'spruce up' your market presentation. Start by getting a current, full print out of the Multiple Listing Service report, which provides detailed information about your home. Honest mistake or carelessness, you may be surprised that information is often out-dated — or just plain wrong — in the MLS.

Sellers, you need to defend yourselves. A simple review of the MLS might find an error or omission that needs to be corrected. You might discover that there are photos with snow, or worse, no photos at all. Buyers like pictures. If they don’t find pictures of your home they skip to the next property on the list. If you do have pictures, it wouldn’t hurt to make sure they’re high quality and taken with a wide angle lens. Buyers like pictures but they especially like good pictures that give them a feel for your home. Curb appeal begins — and sometime ends — on the MLS.

If the exterior shot of your home has trash cans in the driveway, Christmas decorations or the side mirror from the agent’s car in the shot, you might want to update. You’d be surprised what can be seen out there while researching properties. There are photos that are so bad that there are now websites dedicated to showing the images for entertainment purposes.

There is a little known fact about the MLS system, too. It is capable of carrying attachments. Important disclosures, addendums, community site plans and even the floor plan to your home can be attached to your home’s MLS report so that buyers and their agents have access to more data about your home. A valuable tool, no doubt.

It’s up to you to monitor your MLS listing data and make sure accurate information is out there and able to be found.

There’s still lots of buyers for your home, if they’re able to find it on the MLS and like what they see. Maybe you should make sure it’s fresh and get some pretty pictures up there to entice them to come by ... and buy.

September 8, 2008 in Selling Toronto Real Estate | Permalink | Comments (0) | TrackBack

What makes a house sell?

A successful sale requires that you concentrate on six considerations: your asking price, your terms of sale, the condition of your house, its location, its accessibility, and the extent of marketing exposure your house receives. While some of these factors are beyond your control, you can compensate by taking advantage of others (like a new paint job) to make your property as attractive to prospective buyers as possible.

When is the best time to list a house for sale?

The "best" time to list your house is actually as soon as you decide to sell it. If you want to get the best price for your house, the key is to give yourself as much time as possible to sell it. More time means more potential buyers will probably see the house. This should result in more offers; it also gives you time to consider more options if the market is slow or initial interest is low.

Is there any seasonality to the market?

Peak selling seasons vary in different areas, and weather has a lot to do with it. Late spring and early fall are the prime listing seasons in the Toronto area because houses tend to "show" better in those months than they do in the heat of summer or the cold of winter. And of course, people like to do their house shopping when the weather is pleasant.

But keep in mind that there are also more houses on the market during the prime seasons, so you'll have more competition. So while there is seasonality in the real estate market, it's not something that should dominate your decision on when to sell.

What about market conditions — price trends, interest rates, and the economy in general? Should they have any bearing on when I list? Probably not. Even if you're under no pressure to sell, waiting for better market conditions is not likely to increase your profit potential.

So how long should it take to sell?

Average selling times vary from 10 to 90 days, according to market conditions in a particular region or even neighbourhood, But if it hasn't sold within 30 days of being placed on the market at least one of the six considerations: price, terms, condition, location, accessibility or market exposure must be made more attractive to prospective buyers. Selling in any market is easier if you keep time on your side.

What if I can't sell my old house before I have to move?

This situation can arise for any number of reasons. For instance, getting the job promotion you've been waiting for may mean having to relocate very quickly. Another example: you finally find your "dream home," and need to get it under agreement before it sells to another buyer. Whatever the reason, don't panic. You have some viable alternatives to the worrisome possibility of double mortgage payments.

If you don't have to sell in order to buy a new home, consider the advantages and disadvantages of renting your current house. If you're being transferred before you've had a chance to decide on the new house, you may be able to obtain a short-term rental of your own while you're becoming familiar with the new area. Either way, a local real estate professional can usually help, by advising you how much you can expect to pay for rent in your new city, or what you need to charge for your current home to both cover your mortgage payments and take care of other costs you'll entail as a landlord.

Another solution available from some brokers is the guaranteed sale plan which is essentially a written promise to buy your house at a pre-determined price if it doesn't sell by a certain date. The amount of the guaranteed price varies considerably between brokers. It is prudent to have any sale guarantees reviewed by you lawyer prior to signing-on.

August 26, 2008 in Selling Toronto Real Estate | Permalink | Comments (3) | TrackBack

The spotlight is on home staging

Once primarily a luxury for the rich when selling their mansions, home staging is becoming popular with average homeowners seeking to get their properties off the market faster and earn more money. The proliferation of television programs on staging a home - often providing tips on how to do it yourself - has made it a fast-growing trend at all levels of real estate sales.

"It has always been done at high-end properties, but now the notion has gone mass market," said Lea Katsanis, chair and associate professor of the marketing department at Concordia University's John Molson School of Business.

What is Home Staging

Home staging is the design process of de-personalizing a private residence prior to putting it up for sale in the real estate marketplace. This is often achieved by re-arranging, de-cluttering and improving on certain items.

The goal of staging a home is to help it sell quickly and for the most amount of money by appealing to the largest amount of prospective buyers. Staging focuses on improving a home’s potential by transforming it into a ‘neutral’ property because the way we live in our home is completely different than the way we should sell our home. Staging creates a living space buyers can "see" themselves in, similar to how model home displays are presented.

Staging also helps create an environment that will lead a buyer’s eye to the home’s attractive features, while minimizing its flaws.

Many home-sellers agree that staging is a practical first step prior to selling any home, especially since the cost of staging a home is usually much less than the increased selling price often achieved from a professionally staged home.

Staging Checklist

The goal is to depersonalize a private residence before putting it up for sale. It is recommended to spend about one per cent of the asking price on staging.

For more on home staging »

July 8, 2008 in Selling Toronto Real Estate | Permalink | Comments (2) | TrackBack

 

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