In today's heated market, there are still a lot of sought-after neighbourhoods where homes command multiple offers and the sold price well exceeds the asking price.
One lucky home buyer is successful but many others are left in the wake still without a home, scratching their heads wondering, "What happened"?
We'll walk you through the strategy of multiple offers, the process and how you can best prepare yourself to buy or sell in this situation.
For those of you who are unfamiliar with this approach, it's where a home seller will accept offers within a certain time frame from potential buyers. Each buyer will put in an offer not knowing what other buyers are offering. The best offer wins.
Let's start from the perspective of the home seller...
Using a multiple offer or 'bidding' approach can be a great way to sell your home fast and for great money. But it takes a lot of preparation and nerves.
The Preparation
First, your home must be immaculate and staged properly. This does not just mean decluttering and cleaning. Invest in a professional stager, and although it may take thousands of dollars to fix up your home, the return will be well worth it.
Potential buyers need to see that they can move in without any work needed. It also has to appeal to the widest range of buyers so take the usual staging advice into practice - perception is everything.
Get a home inspection done before you list the home. This will eliminate the ability for any buyers to use this a condition of their offer. It will also save any suprises that could make the deal go south.
The Price
Sellers will usually price below market value. This can be frustrating for buyers who get excited about a great home for such a good price. But that is the point! You want as many people to see the home as possible. The more people see it, the more offers there will be which usually translates to a higher sale price.
You should also price below the mental thresholds of people's shopping range. If you were going to price at $460,000, get it down to $439,000 below the $450,000 mark. Buyers usually set search parameters in $50,000 increments. If you are just above their max, they won't even see it. If you are just below you'll make your home available to another huge group of buyers.
If you price it too close to the current market value, you may drive away potential buyers since there is an understanding that a seller doing an offer night is going to price lower than market value and people want to feel like there is a chance they can get a deal.
Many home owners are afraid they will only sell their home for the list price and are reluctant to go too low. If you don't know what you're doing, it could backfire. But if you understand the exact current market conditions (seasonality, supply, demand, comparables etc.) and the home is in great shape then you will be too.
Offer Night
You've been holding your breath for a week and now it's time to tango. Offers can be accepted at your home or at the real estate office. Typically each realtor will come in and present their offer.
You can't just look at the numbers. There are a lot of things to consider - close date, conditions, the size of deposit. Some of these things may be worth more than a few thousand bucks or a lower offer may be the more secure one.
You may select the top few offers and take a chance to ask the agents to go back to their clients and sharpen their pencils, but this can be risky...if they feel pushed they may walk away and you can be left with nothing. Tread lightly and don't get greedy!
Now for the Buyer's perspective...
You've been looking at homes and have finally fallen in love. Anyone who tells you not to get emotional and attached has never bought a home before. That's how you're supposed to feel about your future home and largest investment!
You decide to put in an offer. How do you play it? How do you win? And without paying too much?
Sadly, there are no guarantees. But there are a few things you can do to give yourself the best shot possible.
Be Prepared
Always have your financing approved and ready to go. An offer with a financing condition is one of the weakest approaches. Make sure you leave time on the day of the offer to get a certified cheque from your bank for a decent size deposit (which of course you get back right away if your offer is not accepted).
These days, $20,000 plus on the average home is about right. If you have more available to you, just think about how you feel looking at a cheque in hand. The more the better.
Make the Offer Clean
If at all possible, do not include any conditions in the offer. However, if there are conditions that you need to protect yourself you need to work within your comfort level.
Get a home inspection done prior to the offer if the owner has not done so already. It may seem like wasted money if you don't get the house. But you certainly don't want it to be the actual reason you didn't get it.
If there are any questions about the property that you need to know beforehand, do your research first instead of making your offer conditional on the ability to expand the house or add parking etc.
Give the Owners what they Want
If possible, give the home owners exactly what they want. Most important can be the close date. If it's a matter of staying at the in-laws for a couple of weeks to get the house, do what you have to do!
Don't get petty - if they want to take the chandelier, don't ask for it back in your offer.
Name Your Price
This is the hardest part! A friend once described it as being like a poker game. You don't know what everyone else has and you have to make your bet blind.
Wait until the end to put in your offer. Why? A couple of reasons. You want to see how many offers are in - there is a theory that the more that are submitted the higher it's going to go. You also don't want to inflate the price other bidders after you are putting in.
Determine what you are willing to pay for the house. So many people get caught up in the thought that they are paying $X over the asking price. The asking price is usually artificially low anyway so you cannot use that as a benchmark.
Pay attention to the recent sale price of comparable homes in the area. If you had never seen the asking price, what would you be willing to pay?
Next determine how far you are willing to go to get the home. Some people are comfortable with upping their bid by another ten thousand dollars just to get the house. Think how you would feel if you lost it by just a few thousand.
Whatever the number is, at the end of the day you have to feel comfortable with your bid to the point that if you didn't get the house, you are ok with it because you would not have paid more. Or if you win, you will never grumble about paying too much.
Another Strategy
Some people simply lose patience with the whole process, especially if they've been down that road before and lost. They'll find a home they want and will do what's called "bullying" an offer. They will try to put in an offer before the offer date.
This will only work if the offer is substantial and worth it for the home seller to jeapoardize the multiple offer process. If they agree to view your offer, legally they still have to offer any buyer who has viewed the home with an agent the opportunity to submit and offer.
But this strategy can win as it may rush other buyers to the point where they will back out and there simply isn't the opportunity to show it more people. Your offer should have a very short irreovoable time on it. Just enough to be reasonable but not long enough to let the competition get their act in gear!
In Conclusion
After all of this, even if you win you may never know what the other bids were. It is confidential information. How crazy is that?!
If you are going to play this game as a seller or a buyer, make every decision without regret and do not look back. It really does work out in the end.
Just make sure you get the research you need to make the best decisions possible on price and bidding and of course, trust your realtor to guide you though every step.
Who do you know who is ready to buy or sell? If you or anyone you know is ready to take the first step, share my blog with them or give me a call. info@markrichards.ca
Regards,
Mark
Monday, August 20, 2007
Sunday, August 19, 2007
July 2007 Market Watch
July is the fourth month in a row that sales have broken monthly records!
"We are running 14 percent ahead of the seven month total for 2005 which became our best year ever." says TREB President Donald Bentley. "The local resale market is as healthy as it has ever been."
Average prices declined two percent to $366,012 but the decline is due to seasonality with home buyers and sellers enjoying the summer. Overall, the year-to-date average of $373,326 is up five percent over the same time frame in 2006.
The summer can be a great time for buyers who don't want as much competition for great homes but keep in mind that supply is also lower. Eveyrone is looking forward to stong fall market where you'll see a lot more come on the market in the second half of September once everyone gets back into the swing of things after summer.
Competition and multiple offers are still common place in sought-after neighbourhoods even in the summer market so buyers have to be prepared to go for the home they want.
Check out average prices in your neighbourhood to see what is happening in today's market...
Neighbourhood Watch - July 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $675,840
Semi-detached: $408,842
Condo: $292,614
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $403,116
Semi-Detached: $377,372
Condo: $185,327
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $434,541
Semi-Detached: $403,020
Condo:$361,517
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $841,974
Semi-Detached: $590,000
Condo: $225,376
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,570,036
Semi-Detached: $1,112,500
Condo: $509,545
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $1,662,486
Semi-Detached: $375,542
Condo: $596,500
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,921,327
Semi-Detached: $394,176
Condo: $576,143
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
"We are running 14 percent ahead of the seven month total for 2005 which became our best year ever." says TREB President Donald Bentley. "The local resale market is as healthy as it has ever been."
Average prices declined two percent to $366,012 but the decline is due to seasonality with home buyers and sellers enjoying the summer. Overall, the year-to-date average of $373,326 is up five percent over the same time frame in 2006.
The summer can be a great time for buyers who don't want as much competition for great homes but keep in mind that supply is also lower. Eveyrone is looking forward to stong fall market where you'll see a lot more come on the market in the second half of September once everyone gets back into the swing of things after summer.
Competition and multiple offers are still common place in sought-after neighbourhoods even in the summer market so buyers have to be prepared to go for the home they want.
Check out average prices in your neighbourhood to see what is happening in today's market...
Neighbourhood Watch - July 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $675,840
Semi-detached: $408,842
Condo: $292,614
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $403,116
Semi-Detached: $377,372
Condo: $185,327
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $434,541
Semi-Detached: $403,020
Condo:$361,517
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $841,974
Semi-Detached: $590,000
Condo: $225,376
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,570,036
Semi-Detached: $1,112,500
Condo: $509,545
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $1,662,486
Semi-Detached: $375,542
Condo: $596,500
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,921,327
Semi-Detached: $394,176
Condo: $576,143
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
Thursday, July 19, 2007
Too Many Hands In Your Pocket!
It seems lately that all sorts of people are trying to put their hands in your pocket....the goverment, the bank, the government again.
There's been a great deal of contreversy about the proposed 100% increase to land transfer taxes, possible increases to property taxes and additional fees for everything else that you do in life.
On top of that, the prime rate recently increased by .25%.
The fact is, all of these changes, proposed and otherwise affect everyone, whether you are a current home owner, or just getting into the market.
I'm going to show you a few examples of how all of this is going to affect your bank account while giving you the update to sort through where all of these changes stand.
Proposed 100% increase to Land Trasfer Tax
This one is not easy to swallow, but easy to calcuate - just double the normal tax...
Purchase Price = Current tax = New total tax
$250,000 = $2,225 x 2 = $4,450
$400,000 = $4,475 x 2 = $8,950
$750,000 = $11,475 x 2 = $22,950
$1,000,000 = $16,475 x 2 = $32,950
What will happen if they don't vote to implement this tax? The city is threatening that property taxes would have to increase 18% to make up the shortfall.
Home Value = Current Property Tax = Proposed Increase
$250,000 = $2,132.11 = $387.78
$400,000 = $3,411.37 = $614.00
$750,000 = $6,396.33 = $1,511.34
$1,000,000 = $8,528.43 = $1,535.12
The proposed 18% increase to the property taxes seems to hurt a little less at first glance, but depending on how long you may own your home it could be a more painful alternative.
So where do things stand right now?
On July 16th, Toronto city council voted to defer the decision until the provincial election in late October. The apparent rationale for this is that the provincial candidates will be pressured to backfill the city's budget shortfall to win the race.
But Miller wisely warned, "This was an election issue four years ago. Anyone in this chamber who sincerely believes that the province - whoever the party is - is suddenly going to upload $750,000 million on October 23rd is sorely misguided." I tend to agree with him.
Others feel the city has not worked hard enough or smart enough to come up with alternative solutions to the shortfall and need the time to get creative.
At the end of the day, the land transfer tax increase is a clean, quick and tempting way for the city to come up with a cool $750,000 million. If you're thinking of waiting to buy until 2008, you may want to reconsider!
The Prime Rate
The prime lending rate just jumped up .25%. For those of you who like to think big, .25% may not seem like a big deal. But let's consider the impact....
The average home in Toronto is currently valued at $381,963. Say you mortgage 100% at 5.00% over 25 years.
Your montly mortgage payment would be $2,221.52. If the rate jumps .25% your payment would increase to $2,276.19.
That's a difference of $54.67 per month, or 3.64 bottles of wine depending on your taste.
But over the life of your mortgage, assuming bi-monthly payments, that's a difference of $16,299! (or 1,086 bottles of wine)
If you're thinking of putting off getting into the market, consider the incentive to invest now before rates go up any further.
Don't feel too bad about owning a home...
Although these are all big dollars involved in the cost of home ownership, don't let it get you down (but please let the city know how you feel).
After all, if you own a home, you have enjoyed some great growth in equity. Based on the average price of a home in the GTA today at $381,963, and value increases, here's what you do have in your pocket:
Average Home Price in Year = Growth in Equity
(This is tax free if it's your primary residence!)
2000 - $243,255 = $138,708
2001 - $251,508 = $130,455
2002 - $275,231 = $106,732
2003 - $293,067 = $88,896
2004 - $315,231 = $66,732
2005 - $335,907 = $46,056
2006 - $351,941 = $30,022
So keep putting money in your pocket and do your best to keep everyone else out. :)
To make your voice heard on the proposed tax increases, check out:
http://www.nohomebuyingtax.com/
Who do you know who is ready to buy or sell? If you or anyone you know is ready to take the first step, share my blog with them or give me a call.
Regards,
Mark
Mark Richards
416-728-2499
mrichards@trebnet.com
There's been a great deal of contreversy about the proposed 100% increase to land transfer taxes, possible increases to property taxes and additional fees for everything else that you do in life.
On top of that, the prime rate recently increased by .25%.
The fact is, all of these changes, proposed and otherwise affect everyone, whether you are a current home owner, or just getting into the market.
I'm going to show you a few examples of how all of this is going to affect your bank account while giving you the update to sort through where all of these changes stand.
Proposed 100% increase to Land Trasfer Tax
This one is not easy to swallow, but easy to calcuate - just double the normal tax...
Purchase Price = Current tax = New total tax
$250,000 = $2,225 x 2 = $4,450
$400,000 = $4,475 x 2 = $8,950
$750,000 = $11,475 x 2 = $22,950
$1,000,000 = $16,475 x 2 = $32,950
What will happen if they don't vote to implement this tax? The city is threatening that property taxes would have to increase 18% to make up the shortfall.
Home Value = Current Property Tax = Proposed Increase
$250,000 = $2,132.11 = $387.78
$400,000 = $3,411.37 = $614.00
$750,000 = $6,396.33 = $1,511.34
$1,000,000 = $8,528.43 = $1,535.12
The proposed 18% increase to the property taxes seems to hurt a little less at first glance, but depending on how long you may own your home it could be a more painful alternative.
So where do things stand right now?
On July 16th, Toronto city council voted to defer the decision until the provincial election in late October. The apparent rationale for this is that the provincial candidates will be pressured to backfill the city's budget shortfall to win the race.
But Miller wisely warned, "This was an election issue four years ago. Anyone in this chamber who sincerely believes that the province - whoever the party is - is suddenly going to upload $750,000 million on October 23rd is sorely misguided." I tend to agree with him.
Others feel the city has not worked hard enough or smart enough to come up with alternative solutions to the shortfall and need the time to get creative.
At the end of the day, the land transfer tax increase is a clean, quick and tempting way for the city to come up with a cool $750,000 million. If you're thinking of waiting to buy until 2008, you may want to reconsider!
The Prime Rate
The prime lending rate just jumped up .25%. For those of you who like to think big, .25% may not seem like a big deal. But let's consider the impact....
The average home in Toronto is currently valued at $381,963. Say you mortgage 100% at 5.00% over 25 years.
Your montly mortgage payment would be $2,221.52. If the rate jumps .25% your payment would increase to $2,276.19.
That's a difference of $54.67 per month, or 3.64 bottles of wine depending on your taste.
But over the life of your mortgage, assuming bi-monthly payments, that's a difference of $16,299! (or 1,086 bottles of wine)
If you're thinking of putting off getting into the market, consider the incentive to invest now before rates go up any further.
Don't feel too bad about owning a home...
Although these are all big dollars involved in the cost of home ownership, don't let it get you down (but please let the city know how you feel).
After all, if you own a home, you have enjoyed some great growth in equity. Based on the average price of a home in the GTA today at $381,963, and value increases, here's what you do have in your pocket:
Average Home Price in Year = Growth in Equity
(This is tax free if it's your primary residence!)
2000 - $243,255 = $138,708
2001 - $251,508 = $130,455
2002 - $275,231 = $106,732
2003 - $293,067 = $88,896
2004 - $315,231 = $66,732
2005 - $335,907 = $46,056
2006 - $351,941 = $30,022
So keep putting money in your pocket and do your best to keep everyone else out. :)
To make your voice heard on the proposed tax increases, check out:
http://www.nohomebuyingtax.com/
Who do you know who is ready to buy or sell? If you or anyone you know is ready to take the first step, share my blog with them or give me a call.
Regards,
Mark
Mark Richards
416-728-2499
mrichards@trebnet.com
June 2007 Market Watch
A few of the home buyers are finally taking a bit of a vacation from shopping.
But even though the number of home sales slowed down by 6% compared to record-breaking May, June's sales were still up almost 20% over the same month last year.
The average price of a home went down slightly by less than one percent to $381,963, but don't take that as a sign of a declining market. It's simply a reflection of the slower summer season.
It's still a great time to buy. Inventory is still good but other shoppers may be on holidays.
If you are selling and have flexibility in timing, try to hold off until the fall. But if you have to sell now, you will still see solid activity.
On a record-breaking note, a Forest Hill home may be the most expensive piece of Toronto residential property - it sold for $15.8 million. Just think, if they bought it next year, they might have had to pay an extra $312,000 in proposed land transfer tax increases!
Neighbourhood Watch - June 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $647,049
Semi-detached: $477,510
Condo: $319,133
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $415,256
Semi-Detached: $388,488
Condo: $185,710
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $459,592
Semi-Detached: $419,510
Condo:$388,280
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $836,540
Semi-Detached: $512,750
Condo: $258,986
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,973,567
Semi-Detached: $1,448,333
Condo: $589,200
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $1,434,230
Semi-Detached: $462,913
Condo: $452,680
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,548,882
Semi-Detached: $390,000
Condo: $413,892
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
But even though the number of home sales slowed down by 6% compared to record-breaking May, June's sales were still up almost 20% over the same month last year.
The average price of a home went down slightly by less than one percent to $381,963, but don't take that as a sign of a declining market. It's simply a reflection of the slower summer season.
It's still a great time to buy. Inventory is still good but other shoppers may be on holidays.
If you are selling and have flexibility in timing, try to hold off until the fall. But if you have to sell now, you will still see solid activity.
On a record-breaking note, a Forest Hill home may be the most expensive piece of Toronto residential property - it sold for $15.8 million. Just think, if they bought it next year, they might have had to pay an extra $312,000 in proposed land transfer tax increases!
Neighbourhood Watch - June 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $647,049
Semi-detached: $477,510
Condo: $319,133
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $415,256
Semi-Detached: $388,488
Condo: $185,710
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $459,592
Semi-Detached: $419,510
Condo:$388,280
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $836,540
Semi-Detached: $512,750
Condo: $258,986
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,973,567
Semi-Detached: $1,448,333
Condo: $589,200
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $1,434,230
Semi-Detached: $462,913
Condo: $452,680
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,548,882
Semi-Detached: $390,000
Condo: $413,892
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
Tuesday, June 19, 2007
How to Survive Real Estate
While buying or selling a home may be one of the most exciting things you can do, it is also one of the most stressful. Anyone who says otherwise either doesn't know, or is lying!
Having just recently bought a new house and having sold my own home, I can tell you first hand from my experience...increasingly gray hair, a wife ready to permanently check-into a spa and no idea where most of my belongings are.
But we came out the other side with a new home we're looking forward to renovating, a 'perfect' home to live in the meantime until closing (minus the nice pillows the stagers brought in), and a sale price that made it all worth it.
But where does all this trouble start?
Let's walk through the rollercoaster of real estate and I'll give you a few good tips to minimize the stress along the way.
Let the shopping begin...
Sure, it starts innocently enough. Maybe it's your first home or you just started snooping at open houses. At some point, you get serious. The dreaming begins, you start to see your entire life unfold...all the great parties you'll host, the children running around in the yard, the visions of new kitchens dancing in your head.
Get your financing in order.
My wife says it's like finding a pair of Manalo Blahniks in her size, on sale, and no wallet in her purse. It's even worse to put a financing condition on a property that is getting multiple offers or putting an offer in without it and wondering if your banker will answer your call.
It's ok to want it.
While the shopping has been fun, the time comes when you find THE place. If you're competing with other home buyers for a home, you can't help but get your hopes up, despite everyone telling you not to. So go with it, let yourself want it but realize that if it doesn't work out, there truly is a reason.
Go big or go home.
If you are going to put an offer in, prepare to make your best offer. It's not just about price. First, get over paying more than what they are asking. Many people 'hold back' and list their home below market value to generate more interest in their home anyway. Pretend you never saw the listing price. What would you be willing to pay for the home?
Keep it clean.
Make your offer 'clean', as they say in the business. A home inspection may have been done already and your financing should already be in order. Try to work with their possession date. Living with the in-laws for a month may not be your idea of fun but if it means you get the home you want, it's worth it. Well, maybe.
Time to Sell Your Home...
You may not have one to sell, but if you do, this is where it gets a bit scary.
In today's market, people are often buying before they have sold. And when they've bought, it usually leaves them 2-3 months to get rid of their old place.
My wife has had a lot of experience with this approach, but when we bought our first house before I was an agent, we still had to sell our condo. I thought I was going to have a heart attack.
It's not as risky as you think.
If your home is made as attractive as possible to buyers, and is priced appropriately for the current market conditions (not when your cousin sold three months ago) then it will sell. You also have some financing options to bridge your mortages for up to 60 days.
Your home is a product to market.
It still shocks me when I see a home for sale with the christmas lights still up. You should be treating your home as a product that needs to be marketed to get the best price. So yes, this means putting your kids ant farm away and taking down the holiday decor.
Get Time, Get Help and if you can, Get Out.
You should plan to take a couple of days off work and book a weekend to get your home ready. Otherwise you will burn out and hate life. This is also a fantastic time to call in all of those favours for free labour, or find someone you can pay who can do all of the heavy lifting and won't ask for a beer every five minutes. Try not to live in your home while you are showing it unless you don't mind getting kicked out every two hours and have a cleaning fairy hidden in your closet.
Setting the Stage
Many people will gripe about the cost of professional staging, or even better, think they can do it themselves. I have a philosophy in life that people should focus on what they do best and let the professionals do the rest. There is a reason why they are professionals and why home staging has exploded as a strategy. It works. Hire them, even at a minimum for a consultation. Do everything they tell you.
Let it go.
When preparing your house for sale, you need to get accept that it is no longer yours. It is the prospective buyer's home. You will not suffer any ill effects if your wedding pictures are not on display. Nor will you be in big trouble if you put the sports gear you no longer use anyway in storage. Neutral paint colours will not kill your spirit. In fact, you may feel suprisingly light from the elimination of junk and visual clutter.
Prepare for a good fight.
If you have the good fortune to have a partner throughout all this, then you can share in the excitement. But you also get to share in the stress. My wife and I made every effort to keep 'please' and 'thank you' in our conversations but we knew that one of us would snap at some point and a few words starting with 'f' and 'a' got in there a few times. Neither of us took it personally and let the other have a good meltdown here and there. A glass of wine makes an excellent mediator for repair.
Allow for maximum distraction.
Plan for some good times while the house is on the market. The waiting is probably the worst of it so the more you can do to fill your time the better. Just think, the house is perfect so you don't have anything to do at home for once! You may be staying with the in-laws so what better reason to get out.
Trust the man.
Back to letting the professionals do what they do best... Follow the advice given to you but make your goals, risk tolerance and options clear up front. Share what is most important to you in the process. Is it selling by a certain date? Getting a certain price? Minimizing risk or going for gold? You can also call me anytime to talk about what's happening. It's my job to be there for you.
Celebrate.
You're now the proud buyer, seller or both. Make sure you celebrate with those who helped you....and don't forget to thank your real estate agent over a pint or two :)
Who do you know who is ready to buy or sell? If you or anyone you know is ready to take the first step, share my blog with them or give me a call.
Regards,
Mark
Mark Richards
Sales Representative
416-690-2181
mrichards@trebnet.com
Having just recently bought a new house and having sold my own home, I can tell you first hand from my experience...increasingly gray hair, a wife ready to permanently check-into a spa and no idea where most of my belongings are.
But we came out the other side with a new home we're looking forward to renovating, a 'perfect' home to live in the meantime until closing (minus the nice pillows the stagers brought in), and a sale price that made it all worth it.
But where does all this trouble start?
Let's walk through the rollercoaster of real estate and I'll give you a few good tips to minimize the stress along the way.
Let the shopping begin...
Sure, it starts innocently enough. Maybe it's your first home or you just started snooping at open houses. At some point, you get serious. The dreaming begins, you start to see your entire life unfold...all the great parties you'll host, the children running around in the yard, the visions of new kitchens dancing in your head.
Get your financing in order.
My wife says it's like finding a pair of Manalo Blahniks in her size, on sale, and no wallet in her purse. It's even worse to put a financing condition on a property that is getting multiple offers or putting an offer in without it and wondering if your banker will answer your call.
It's ok to want it.
While the shopping has been fun, the time comes when you find THE place. If you're competing with other home buyers for a home, you can't help but get your hopes up, despite everyone telling you not to. So go with it, let yourself want it but realize that if it doesn't work out, there truly is a reason.
Go big or go home.
If you are going to put an offer in, prepare to make your best offer. It's not just about price. First, get over paying more than what they are asking. Many people 'hold back' and list their home below market value to generate more interest in their home anyway. Pretend you never saw the listing price. What would you be willing to pay for the home?
Keep it clean.
Make your offer 'clean', as they say in the business. A home inspection may have been done already and your financing should already be in order. Try to work with their possession date. Living with the in-laws for a month may not be your idea of fun but if it means you get the home you want, it's worth it. Well, maybe.
Time to Sell Your Home...
You may not have one to sell, but if you do, this is where it gets a bit scary.
In today's market, people are often buying before they have sold. And when they've bought, it usually leaves them 2-3 months to get rid of their old place.
My wife has had a lot of experience with this approach, but when we bought our first house before I was an agent, we still had to sell our condo. I thought I was going to have a heart attack.
It's not as risky as you think.
If your home is made as attractive as possible to buyers, and is priced appropriately for the current market conditions (not when your cousin sold three months ago) then it will sell. You also have some financing options to bridge your mortages for up to 60 days.
Your home is a product to market.
It still shocks me when I see a home for sale with the christmas lights still up. You should be treating your home as a product that needs to be marketed to get the best price. So yes, this means putting your kids ant farm away and taking down the holiday decor.
Get Time, Get Help and if you can, Get Out.
You should plan to take a couple of days off work and book a weekend to get your home ready. Otherwise you will burn out and hate life. This is also a fantastic time to call in all of those favours for free labour, or find someone you can pay who can do all of the heavy lifting and won't ask for a beer every five minutes. Try not to live in your home while you are showing it unless you don't mind getting kicked out every two hours and have a cleaning fairy hidden in your closet.
Setting the Stage
Many people will gripe about the cost of professional staging, or even better, think they can do it themselves. I have a philosophy in life that people should focus on what they do best and let the professionals do the rest. There is a reason why they are professionals and why home staging has exploded as a strategy. It works. Hire them, even at a minimum for a consultation. Do everything they tell you.
Let it go.
When preparing your house for sale, you need to get accept that it is no longer yours. It is the prospective buyer's home. You will not suffer any ill effects if your wedding pictures are not on display. Nor will you be in big trouble if you put the sports gear you no longer use anyway in storage. Neutral paint colours will not kill your spirit. In fact, you may feel suprisingly light from the elimination of junk and visual clutter.
Prepare for a good fight.
If you have the good fortune to have a partner throughout all this, then you can share in the excitement. But you also get to share in the stress. My wife and I made every effort to keep 'please' and 'thank you' in our conversations but we knew that one of us would snap at some point and a few words starting with 'f' and 'a' got in there a few times. Neither of us took it personally and let the other have a good meltdown here and there. A glass of wine makes an excellent mediator for repair.
Allow for maximum distraction.
Plan for some good times while the house is on the market. The waiting is probably the worst of it so the more you can do to fill your time the better. Just think, the house is perfect so you don't have anything to do at home for once! You may be staying with the in-laws so what better reason to get out.
Trust the man.
Back to letting the professionals do what they do best... Follow the advice given to you but make your goals, risk tolerance and options clear up front. Share what is most important to you in the process. Is it selling by a certain date? Getting a certain price? Minimizing risk or going for gold? You can also call me anytime to talk about what's happening. It's my job to be there for you.
Celebrate.
You're now the proud buyer, seller or both. Make sure you celebrate with those who helped you....and don't forget to thank your real estate agent over a pint or two :)
Who do you know who is ready to buy or sell? If you or anyone you know is ready to take the first step, share my blog with them or give me a call.
Regards,
Mark
Mark Richards
Sales Representative
416-690-2181
mrichards@trebnet.com
Monday, June 18, 2007
May 2007 Market Watch
Busy, busy , busy....May blows away the record books!
We all thought April was something to talk about, having set the record for the most sales in the Toronto Real Estate Board's history. But May kicked April out by a whopping 18% increase for a total of 11,146 sales, now the best month ever in history.
So what does this mean for home owners and home buyers?
A better economy. According to stats compiled by the Canadian Real Estate Association, every home sale generates about $27,000 in economic activity (renovations, furniture purchases, etc.) over and above direct expenditures for the transaction.
This all adds up to a contribution of about $300 million to the local economy.
And check out headlines from the Toronto Stare today who reported that the City of Toronto is proposing an increase to land transfer taxes that could reap $300 million for transit and road spending to bridge the budget shortfall. The average home buyer would have to shell out an additional $1,900 for a home worth $382,787.
With all of this money flying around, who's spending what in your neighbourhood?
Neighbourhood Watch - May 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $682,630
Semi-detached: $427,301
Condo: $293,475
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $380,091
Semi-Detached: $383,680
Condo: $177,658
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $462,205
Semi-Detached: $415,843
Condo:$306,267
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $854,433
Semi-Detached: $628,440
Condo: $361,532
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,542,038
Semi-Detached: $1,030,700
Condo: $536,346
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $851,433
Semi-Detached: $362,277
Condo: $453,313
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,429,394
Semi-Detached: n/a
Condo: $677,550
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
We all thought April was something to talk about, having set the record for the most sales in the Toronto Real Estate Board's history. But May kicked April out by a whopping 18% increase for a total of 11,146 sales, now the best month ever in history.
So what does this mean for home owners and home buyers?
A better economy. According to stats compiled by the Canadian Real Estate Association, every home sale generates about $27,000 in economic activity (renovations, furniture purchases, etc.) over and above direct expenditures for the transaction.
This all adds up to a contribution of about $300 million to the local economy.
And check out headlines from the Toronto Stare today who reported that the City of Toronto is proposing an increase to land transfer taxes that could reap $300 million for transit and road spending to bridge the budget shortfall. The average home buyer would have to shell out an additional $1,900 for a home worth $382,787.
With all of this money flying around, who's spending what in your neighbourhood?
Neighbourhood Watch - May 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $682,630
Semi-detached: $427,301
Condo: $293,475
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $380,091
Semi-Detached: $383,680
Condo: $177,658
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $462,205
Semi-Detached: $415,843
Condo:$306,267
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $854,433
Semi-Detached: $628,440
Condo: $361,532
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,542,038
Semi-Detached: $1,030,700
Condo: $536,346
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $851,433
Semi-Detached: $362,277
Condo: $453,313
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,429,394
Semi-Detached: n/a
Condo: $677,550
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
Thursday, May 17, 2007
The Truth About Real Estate
This blog is inspired by a great article published by the Toronto Star late last year...
We've all heard them at various cocktail parties or the minute you tell someone you're thinking of buying..."Buy the worst house on the best block!"
Here's a look at which real estate truisms are worth paying attention to and which are as fluffy as your down pillow.
Truism #1: Location, Location, Location
First, let's define 'location'. It can mean more than just the neighbourhood.
Some of the obvious location features of a home are always going to help home owners retain and increase value in both good markets and bad...being in a sought-after neighbourhood, proximity to downtown, access to highways, great schools, lakes etc.
If you can afford to get into the typically desirable areas such as Rosedale and Lawrence Park you are, of course, going to see steady increases in value. For those who are thinking towards the future, there are many indicators of a great 'future' location.
Let's take Leslieville and Riverdale for example. We've seen huge increases in values in those areas, even though years ago they were less than desireable and still have a long way to go. But look at the fundamental characteristics of those areas.
They are both close to the waterfront and main highways like the DVP and Gardiner. They offer great TTC access and are less than 15 minutes from downtown.
Look for areas where the 'early adopters' are hanging out, where the hot new restaurants seem to be opening, and if you can, get in before the first Starbucks opens! Case in point - Logan and Queen. Not a great area even a year ago and guess who just opened on the corner.
Also look at the edge of great neighbourhoods. The stretch from Woodbine to Coxwell was not considered to be part of 'The Beach' but now commands property values that are just as high, and you don't have to deal with the tourist traffic.
Other things to note when considering location...
You may be in a great area or up and coming area, but watch out for low-income housing (sorry folks, this is true), homes where the neighbour is a nasty parking lot or where you have great view of the back of those new restaurants who will be dumping garbage in their bins, the noisy TTC streetcar turn-arounds, train tracks etc.
Think about your buying area first, then consider the immediate radius around your future property.
Truism #2: Always Buy the Worst House on the Best Street
Fabulous idea if you have the funds to renovate. If done well and within budget, home owners can stand to make a great deal of equity or profit. It may also be the only way you can afford to get into the neighbourhood.
But watch out for fundamental property and building flaws that could make it a money pit. Or features than can not be rectified with a reasonable amount of money.
When it comes time to sell, you will only get as much as your home is worth, not how much the best house on the street is worth. If you have a 2 bedroom home and the biggest, best house is a 3 bedroom in similar condition, it will always get more money.
You also need to consider you own personal goals. Do you want to live in the worst house on the street? Or do you actually want to be in the best house? Are you buying for re-sale value in years to come or are you buying the right house for your family?
It all depends on what you are looking for.
Truism #3: Price To Sell
Of course you want to price to sell—but what’s the right price?
Some sellers deliberately price low or 'hold back' to encourage multiple bids with the hopes of getting a final offer over the asking price and possibly over market value. But your home has to be highly appealing and in a sought-after neighbourhood.
This means investing in professional staging and effective marketing. It also means being able to tolerate risk. Other sellers prefer to price in accordance with the highest sale on the block. They assume or think their home is comparable. Or they say, "Let's just put it on at $X price and see what happens" hoping they will luck-out.
But both routes are risky. Going too low in the hopes of sparking a bidding war can just as easily backfire, leaving the seller with offers that don’t exceed the too-low price, while pricing too high can mean you’ll just have to cut the price later.
The experts suggest…consulting the experts.
Have the house appraised by a realtor. They should provide you with a detailed Comparative Market Analysis that shows what other comparable homes in your area have sold for that. Then make a cold-eyed comparison: how does your house really stack up?
It also depends on your circumstances and those of the market. Have you already purchased another home and need to sell by a certain date? Or are you flexible and able to tolerate some risk? Is there very little supply in your neighbourhood or 'for sale' signs everywhere?
At the end of the day, your home is worth what the market is willing to pay. If you are not comfortable with 'holding back' for multiple offers then price as close to the current market comparables to get the best price for your home.
Know anyone who is looking to buy? Please forward this blog on!
info@markrichards.ca
(416) 728-2499
Regards,
Mark
We've all heard them at various cocktail parties or the minute you tell someone you're thinking of buying..."Buy the worst house on the best block!"
Here's a look at which real estate truisms are worth paying attention to and which are as fluffy as your down pillow.
Truism #1: Location, Location, Location
First, let's define 'location'. It can mean more than just the neighbourhood.
Some of the obvious location features of a home are always going to help home owners retain and increase value in both good markets and bad...being in a sought-after neighbourhood, proximity to downtown, access to highways, great schools, lakes etc.
If you can afford to get into the typically desirable areas such as Rosedale and Lawrence Park you are, of course, going to see steady increases in value. For those who are thinking towards the future, there are many indicators of a great 'future' location.
Let's take Leslieville and Riverdale for example. We've seen huge increases in values in those areas, even though years ago they were less than desireable and still have a long way to go. But look at the fundamental characteristics of those areas.
They are both close to the waterfront and main highways like the DVP and Gardiner. They offer great TTC access and are less than 15 minutes from downtown.
Look for areas where the 'early adopters' are hanging out, where the hot new restaurants seem to be opening, and if you can, get in before the first Starbucks opens! Case in point - Logan and Queen. Not a great area even a year ago and guess who just opened on the corner.
Also look at the edge of great neighbourhoods. The stretch from Woodbine to Coxwell was not considered to be part of 'The Beach' but now commands property values that are just as high, and you don't have to deal with the tourist traffic.
Other things to note when considering location...
You may be in a great area or up and coming area, but watch out for low-income housing (sorry folks, this is true), homes where the neighbour is a nasty parking lot or where you have great view of the back of those new restaurants who will be dumping garbage in their bins, the noisy TTC streetcar turn-arounds, train tracks etc.
Think about your buying area first, then consider the immediate radius around your future property.
Truism #2: Always Buy the Worst House on the Best Street
Fabulous idea if you have the funds to renovate. If done well and within budget, home owners can stand to make a great deal of equity or profit. It may also be the only way you can afford to get into the neighbourhood.
But watch out for fundamental property and building flaws that could make it a money pit. Or features than can not be rectified with a reasonable amount of money.
When it comes time to sell, you will only get as much as your home is worth, not how much the best house on the street is worth. If you have a 2 bedroom home and the biggest, best house is a 3 bedroom in similar condition, it will always get more money.
You also need to consider you own personal goals. Do you want to live in the worst house on the street? Or do you actually want to be in the best house? Are you buying for re-sale value in years to come or are you buying the right house for your family?
It all depends on what you are looking for.
Truism #3: Price To Sell
Of course you want to price to sell—but what’s the right price?
Some sellers deliberately price low or 'hold back' to encourage multiple bids with the hopes of getting a final offer over the asking price and possibly over market value. But your home has to be highly appealing and in a sought-after neighbourhood.
This means investing in professional staging and effective marketing. It also means being able to tolerate risk. Other sellers prefer to price in accordance with the highest sale on the block. They assume or think their home is comparable. Or they say, "Let's just put it on at $X price and see what happens" hoping they will luck-out.
But both routes are risky. Going too low in the hopes of sparking a bidding war can just as easily backfire, leaving the seller with offers that don’t exceed the too-low price, while pricing too high can mean you’ll just have to cut the price later.
The experts suggest…consulting the experts.
Have the house appraised by a realtor. They should provide you with a detailed Comparative Market Analysis that shows what other comparable homes in your area have sold for that. Then make a cold-eyed comparison: how does your house really stack up?
It also depends on your circumstances and those of the market. Have you already purchased another home and need to sell by a certain date? Or are you flexible and able to tolerate some risk? Is there very little supply in your neighbourhood or 'for sale' signs everywhere?
At the end of the day, your home is worth what the market is willing to pay. If you are not comfortable with 'holding back' for multiple offers then price as close to the current market comparables to get the best price for your home.
Know anyone who is looking to buy? Please forward this blog on!
info@markrichards.ca
(416) 728-2499
Regards,
Mark
April 2007 Market Watch
Best Day Ever, Best Month Ever!
Did Toronto have home shopping fever or what?
The highest single day total of sales was on April 30th with 581 sales reported. Even more significant, April 2007 was the highest single month sales total ever reached - an astounding 9,452 sales! (that's 113% of April 2006).
And it looks like May is going to blow that number away with 5,003 sales reported during the first 15 days of this month.
So what does this mean for home owners and home buyers?
Year-to-date prices are rising steadily - nearly 5% over last year - with the average home in the GTA at $379,025. Values are increasing but buyers should not be waiting for the market to 'drop' to get into a home...you will be waiting a very long time, maybe forever!
The average time it took to sell a home fell to 28 days and the average sale price rose to 99% of the list price.
This is showing a lot of confidence in the market, and a lot of demand.
Looking to make a move or get into the market? Capitalize on your equity now or get into a position to start earning some.
As a city that is comparatively under-valued, real estate will continue to be a wise investment.
To find out what your home is worth, or to check out new listings, contact me at:
(416) 728-2499
info@markrichards.ca
Regards,
Mark
Neighbourhood Watch - April 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $629,591
Semi-detached: $467,974
Condo: $384,439
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $423,997
Semi-Detached: $410,992
Condo: $181,592
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $427,929
Semi-Detached: $397,596
Condo:$366,879
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $930,303
Semi-Detached: $555,609
Condo: $289,875
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,892,179
Semi-Detached: $547,000
Condo: $382,000
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $974,930
Semi-Detached: $451,153
Condo: $427,938
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,412,840
Semi-Detached: n/a
Condo: $504,625
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
Did Toronto have home shopping fever or what?
The highest single day total of sales was on April 30th with 581 sales reported. Even more significant, April 2007 was the highest single month sales total ever reached - an astounding 9,452 sales! (that's 113% of April 2006).
And it looks like May is going to blow that number away with 5,003 sales reported during the first 15 days of this month.
So what does this mean for home owners and home buyers?
Year-to-date prices are rising steadily - nearly 5% over last year - with the average home in the GTA at $379,025. Values are increasing but buyers should not be waiting for the market to 'drop' to get into a home...you will be waiting a very long time, maybe forever!
The average time it took to sell a home fell to 28 days and the average sale price rose to 99% of the list price.
This is showing a lot of confidence in the market, and a lot of demand.
Looking to make a move or get into the market? Capitalize on your equity now or get into a position to start earning some.
As a city that is comparatively under-valued, real estate will continue to be a wise investment.
To find out what your home is worth, or to check out new listings, contact me at:
(416) 728-2499
info@markrichards.ca
Regards,
Mark
Neighbourhood Watch - April 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $629,591
Semi-detached: $467,974
Condo: $384,439
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $423,997
Semi-Detached: $410,992
Condo: $181,592
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $427,929
Semi-Detached: $397,596
Condo:$366,879
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $930,303
Semi-Detached: $555,609
Condo: $289,875
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,892,179
Semi-Detached: $547,000
Condo: $382,000
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $974,930
Semi-Detached: $451,153
Condo: $427,938
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,412,840
Semi-Detached: n/a
Condo: $504,625
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
Monday, April 16, 2007
The Secret...and Your Home?
By now, most of you have heard of "The Secret". But what does it have to do with your home?
The Secret is based on the Law of Attraction - the belief that what you focus on will come to you.
If you have seen The Secret DVD, you may recall the story of one of the teachers, Dr. Assaraf.
Many years ago, he created a 'vision board' - a collage of pictures that represented the things he wanted in life, including the home he wanted to live in.
Over the years, he relocated and his vision board ended up in a storage for five years.
Finally, he and his family ended up in California, bought and renovated a place for a year and were getting settled in their new home. His son entered his office and noticed a few boxes sitting by the door and was curious about their contents.
Dr. Assaraf was trying to explain that his 'vision boards' were inside, and showed him the board he created five years prior.
He was shocked to see that the picture of the house he had put up so many years ago, wasn't just like the home they were in now. It was the SAME house.
He had bought his dream home and hadn't even realized it.
Why is this important? For a few reasons.
I've had different clients...ones who have a strong long term vision of the home they want and a plan to get it.
And then there are the ones who continually focus on the negative...they'll never get approved for a mortgage, they can't find a home they love, they don't deserve to live in a certain home etc...
There is a big difference between those clients. One ends up in a home that they love, the other never seems to get there.
You may have some limiting thoughts that you didn't even realize were happening!
My wife used to think that she didn't deserve to be in a great house until she reached a certain age or point in her life. That she somehow shouldn't have a home nicer than what her parents had at her age.
Now, I'm not suggesting you buy a home that you cannot afford. Focus on the process of getting to that home.
Here is a little bit of homework you can do to make your dream home a reality:
1. Describe your dream home in vivid detail...
- where is it located?
- what is the view like?
- how many bedrooms?
- how big is that plasma tv in the media room? (sorry, this was mine)
- is it full of character or contemporary in design?
2. Does this home exist?
If so, get a picture and put it up at your desk or on your fridge - somewhere you see on a daily basis.
3. Visualize.
I'm not suggesting you light up the incense and start humming with your legs in a pretzel (but please do so if this works for you). But take a moment to focus on visualizing yourself in this home and owning this home on a daily basis.
4. Eliminate all negative thoughts associated with your ability or likelihood to have this home one day.
Trust me, this does make a difference.
If you want to take the next step towards your dream home, contact me and my gift to you and anyone you refer to me will be a copy of 'The Secret' so you can learn more about it.
Now if you'll excuse me, I have to get back to attracting great clients and helping them find their perfect dream home. :)
Regards,
Mark
(416) 728-2499
The Secret is based on the Law of Attraction - the belief that what you focus on will come to you.
If you have seen The Secret DVD, you may recall the story of one of the teachers, Dr. Assaraf.
Many years ago, he created a 'vision board' - a collage of pictures that represented the things he wanted in life, including the home he wanted to live in.
Over the years, he relocated and his vision board ended up in a storage for five years.
Finally, he and his family ended up in California, bought and renovated a place for a year and were getting settled in their new home. His son entered his office and noticed a few boxes sitting by the door and was curious about their contents.
Dr. Assaraf was trying to explain that his 'vision boards' were inside, and showed him the board he created five years prior.
He was shocked to see that the picture of the house he had put up so many years ago, wasn't just like the home they were in now. It was the SAME house.
He had bought his dream home and hadn't even realized it.
Why is this important? For a few reasons.
I've had different clients...ones who have a strong long term vision of the home they want and a plan to get it.
And then there are the ones who continually focus on the negative...they'll never get approved for a mortgage, they can't find a home they love, they don't deserve to live in a certain home etc...
There is a big difference between those clients. One ends up in a home that they love, the other never seems to get there.
You may have some limiting thoughts that you didn't even realize were happening!
My wife used to think that she didn't deserve to be in a great house until she reached a certain age or point in her life. That she somehow shouldn't have a home nicer than what her parents had at her age.
Now, I'm not suggesting you buy a home that you cannot afford. Focus on the process of getting to that home.
Here is a little bit of homework you can do to make your dream home a reality:
1. Describe your dream home in vivid detail...- where is it located?
- what is the view like?
- how many bedrooms?
- how big is that plasma tv in the media room? (sorry, this was mine)
- is it full of character or contemporary in design?
2. Does this home exist?
If so, get a picture and put it up at your desk or on your fridge - somewhere you see on a daily basis.
3. Visualize.
I'm not suggesting you light up the incense and start humming with your legs in a pretzel (but please do so if this works for you). But take a moment to focus on visualizing yourself in this home and owning this home on a daily basis.
4. Eliminate all negative thoughts associated with your ability or likelihood to have this home one day.
Trust me, this does make a difference.
If you want to take the next step towards your dream home, contact me and my gift to you and anyone you refer to me will be a copy of 'The Secret' so you can learn more about it.
Now if you'll excuse me, I have to get back to attracting great clients and helping them find their perfect dream home. :)
Regards,
Mark
(416) 728-2499
March MarketWatch - Q1 Report
It's good news and more good news this month!
Average prices moved up three percent in March over 2006 to $365,285 which is ahead of inflation and good for home owners. "But not so rapidly that first-time home buyers will be pushed out of the market," said TREB President Dorothy Mason.
"The GTA continues to have strong employment numbers and a healthy economy," Mrs. Mason added. "Housing activity is solid and prices are steadily on the rise, so it remains an excellent time to be in the market."
Sales activity continues to be strong, getting the spring market off to a healthy start.
Every three months, I'm creating a trend report so you can see average prices over a quarterly period.
Check out the Q1 stats for your neighbourhood below...
Neighbourhood Watch - Q1: January to March 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $570,817
Semi-detached: $414,750
Condo: $370,223
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $404,628
Semi-Detached: $373,046
Condo: $159,153
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $423,133
Semi-Detached: $383,040
Condo:$323,407
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $808,511
Semi-Detached: $604,212
Condo: $244,901
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,102,741
Semi-Detached: $839,704
Condo: $429,847
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $938,015
Semi-Detached: $505,864
Condo: $530,938
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,663,716
Semi-Detached: n/a
Condo: $438,715
Source: Toronto Real Estate Board March 2007 MarketWatch - for the full report, click here.
Average prices moved up three percent in March over 2006 to $365,285 which is ahead of inflation and good for home owners. "But not so rapidly that first-time home buyers will be pushed out of the market," said TREB President Dorothy Mason.
"The GTA continues to have strong employment numbers and a healthy economy," Mrs. Mason added. "Housing activity is solid and prices are steadily on the rise, so it remains an excellent time to be in the market."
Sales activity continues to be strong, getting the spring market off to a healthy start.
Every three months, I'm creating a trend report so you can see average prices over a quarterly period.
Check out the Q1 stats for your neighbourhood below...
Neighbourhood Watch - Q1: January to March 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $570,817
Semi-detached: $414,750
Condo: $370,223
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $404,628
Semi-Detached: $373,046
Condo: $159,153
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $423,133
Semi-Detached: $383,040
Condo:$323,407
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $808,511
Semi-Detached: $604,212
Condo: $244,901
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,102,741
Semi-Detached: $839,704
Condo: $429,847
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $938,015
Semi-Detached: $505,864
Condo: $530,938
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,663,716
Semi-Detached: n/a
Condo: $438,715
Source: Toronto Real Estate Board March 2007 MarketWatch - for the full report, click here.
Wednesday, March 21, 2007
First Time Home Buyers
Wait! Don't close this window if you are already a home owner.
If you are, great! You know the benefits of homeownership and are probably sitting on a nice pile of equity right now.
But you may know someone who is still renting - maybe a friend, a family member. I truly hope you will pass this information on, because the next two articles are for them.
For those of you who are still renting and don't feel like home ownership is in your near future for whatever reason, read on.
There are two articles below, "How Much House Can Your Rent Buy?" and "New Mortgage Products Put Home Buying Within Reach".
And don't forget to check out the February 2007 Market Watch after these articles.
You'll be suprised to see how close home ownership is a possbility for you or someone you know...
If you are, great! You know the benefits of homeownership and are probably sitting on a nice pile of equity right now.
But you may know someone who is still renting - maybe a friend, a family member. I truly hope you will pass this information on, because the next two articles are for them.
For those of you who are still renting and don't feel like home ownership is in your near future for whatever reason, read on.
There are two articles below, "How Much House Can Your Rent Buy?" and "New Mortgage Products Put Home Buying Within Reach".
And don't forget to check out the February 2007 Market Watch after these articles.
You'll be suprised to see how close home ownership is a possbility for you or someone you know...
How much house can your rent buy?
This month, I'm featuring an article by my mortgage guru, Peter Majthenyi from Mortgage Architects.
This is for all of your renters out there so you can stop building up someone else's home equity and net worth!
If you are a landlord, I apologize. :)
In this article, Peter discusses how new mortgage options can make owning a home a reality...
How much home could your rent buy?
Buying a home is a big financial step, and it’s hard to know when you’re really ready to buy. No wonder that many Canadian renters are still sitting on the white picket fence when it comes to home ownership.
The exciting news is that it could be time to make your move. There’s a few reasons why.
To begin, it’s pretty simple math: if you can afford to rent, chances are that you can afford to buy your own home. Your monthly mortgage payments may be similar to your rent!
That monthly rent cheque doesn’t need to be money out the window; it could be money that’s building you equity in your very own home.
Let’s take a look at how rent and mortgage payments might compare.
If you’re paying $1250 in rent each month, for example, you could be carrying a mortgage of $186,726. If you’re paying $1500, that’s potentially a mortgage of $235,100. Forking over $1750 each month? You could be paying off a mortgage of $283,475!
How are the mortgage payments so affordable?
Firstly, right now you’re benefiting from historically low mortgage rates. Secondly, you now have access to longer-amortization mortgages that lower your monthly mortgage payment. (The examples above were based on that combination: a 5.3% rate and 40-year amortization, plus 3.70% insurance premium, property taxes and heat of $285 per month).
In addition to longer amortization mortgages, interest only mortgages are another option for reducing monthly mortgage payments and maximizing purchasing power.
Think you can’t buy a house because you haven’t saved up a downpayment? Think again.
There are several excellent mortgages available with zero downpayment required. In general, all you need to qualify is a good credit record, and the ability to meet your payments comfortably. Mortgage insurers and innovative lenders believe that Canadians benefit from homeownership – and they’re helping to make it more accessible.
Even if you’ve had past credit problems, new credit repair mortgages can help transition you to a brighter future. That’s more good news for renters!
One more hurdle that some renters worry about is showing enough income to qualify for a mortgage. If you’re self-employed, for example, there are mortgage options available that don’t require you to verify your income. If you have a good credit history and reliable income-earning capacity, then you may qualify for a no income verification mortgage loan.
Still sitting on the fence?
Think about this: every time you sign a rental or lease agreement, you are signing a long lasting contract that has no profit potential whatever – at least, not for you.
When you sign a mortgage loan agreement, not only do you sign onto home ownership, but you also sign up for a great equity-making opportunity too.
Buying a home makes both financial and emotional sense. There are the intangible pleasures that home ownership offers: increased freedom, privacy, and a sense of community, for example.
Then there are the more tangible rewards: for decades, Canadian homeowners have been able to leverage their property purchase into a large financial return.
You’re at a moment of real opportunity right now: this may be the perfect time for you to get on the right side of that picket fence!
If you have been thinking about owning a home, but don't know what is possible, I encourage you to give me or Peter a call to find out. You may be pleasantly suprised!
This is for all of your renters out there so you can stop building up someone else's home equity and net worth!
If you are a landlord, I apologize. :)
In this article, Peter discusses how new mortgage options can make owning a home a reality...
How much home could your rent buy?Buying a home is a big financial step, and it’s hard to know when you’re really ready to buy. No wonder that many Canadian renters are still sitting on the white picket fence when it comes to home ownership.
The exciting news is that it could be time to make your move. There’s a few reasons why.
To begin, it’s pretty simple math: if you can afford to rent, chances are that you can afford to buy your own home. Your monthly mortgage payments may be similar to your rent!
That monthly rent cheque doesn’t need to be money out the window; it could be money that’s building you equity in your very own home.
Let’s take a look at how rent and mortgage payments might compare.
If you’re paying $1250 in rent each month, for example, you could be carrying a mortgage of $186,726. If you’re paying $1500, that’s potentially a mortgage of $235,100. Forking over $1750 each month? You could be paying off a mortgage of $283,475!
How are the mortgage payments so affordable?
Firstly, right now you’re benefiting from historically low mortgage rates. Secondly, you now have access to longer-amortization mortgages that lower your monthly mortgage payment. (The examples above were based on that combination: a 5.3% rate and 40-year amortization, plus 3.70% insurance premium, property taxes and heat of $285 per month).
In addition to longer amortization mortgages, interest only mortgages are another option for reducing monthly mortgage payments and maximizing purchasing power.
Think you can’t buy a house because you haven’t saved up a downpayment? Think again.
There are several excellent mortgages available with zero downpayment required. In general, all you need to qualify is a good credit record, and the ability to meet your payments comfortably. Mortgage insurers and innovative lenders believe that Canadians benefit from homeownership – and they’re helping to make it more accessible.
Even if you’ve had past credit problems, new credit repair mortgages can help transition you to a brighter future. That’s more good news for renters!
One more hurdle that some renters worry about is showing enough income to qualify for a mortgage. If you’re self-employed, for example, there are mortgage options available that don’t require you to verify your income. If you have a good credit history and reliable income-earning capacity, then you may qualify for a no income verification mortgage loan.
Still sitting on the fence?
Think about this: every time you sign a rental or lease agreement, you are signing a long lasting contract that has no profit potential whatever – at least, not for you.
When you sign a mortgage loan agreement, not only do you sign onto home ownership, but you also sign up for a great equity-making opportunity too.
Buying a home makes both financial and emotional sense. There are the intangible pleasures that home ownership offers: increased freedom, privacy, and a sense of community, for example.
Then there are the more tangible rewards: for decades, Canadian homeowners have been able to leverage their property purchase into a large financial return.
You’re at a moment of real opportunity right now: this may be the perfect time for you to get on the right side of that picket fence!
If you have been thinking about owning a home, but don't know what is possible, I encourage you to give me or Peter a call to find out. You may be pleasantly suprised!
New mortgage products put home buying within reach!
Like many first time home buyers, you may be paying a decent amount of rent each month, and may have already figured out the downpayment situation.
But the cost of housing in Toronto may still seem prohibitive and you might not feel like you want to deal with the mortage payment to get into the home or neighbourhood that you want.
Good news. There are a number of new mortage products that offer a solution.
In this article, Peter discusses 30+ Year mortgages that may put home ownership within your reach...
Over 30-year mortages put that first home within reach.
Let's call them John and Julie. Recently married, they're still struggling to pay off student loans and the new car they've just purchased.
John and Julie have moved into a nicer apartment, but are watching their rent money go out the window while their more established friends enjoy the rise in the value of their homes.
Interest rates are enticingly low, but John and Julie still aren't sure they can handle mortgage payments, even though they feel that they're missing out on a great opportunity in today's market, and they do want their own place to decorate and enjoy.
There's good news for John and Julie. Homebuyers can now stretch mortgage amortizations - the length of time calculated to pay off a mortgage - to 30, 35 and even 40 years.
Not too long ago, it was almost impossible to get a mortgage amortization for more than 25 years. In 2005, the Canada Mortgage and Housing Corporation (CMHC) announced that they would insure 30-year mortgages with only 5% down in a special pilot project.
The move was calculated to help Canadians like John and Julie get into their own home. Canadians went house shopping and took advantage of the opportunity, causing CMHC to make the 30-year mortgage part of their ongoing product offering and even extending amortizations to 35 years.
In the spring of 2006, a 40-year amortization mortgage was introduced to the marketplace.
The rationale behind longer amortizations is simple; they help bring down the cost of monthly payments and bring home ownership within reach for young couples, new immigrants, self-employed Canadians, or prospective homebuyers with less-than-perfect credit.
They are also good news for homebuyers who are struggling in an area where real estate prices are rising rapidly, or need a solution to help them through a tough financial period.
What kind of difference can homebuyers expect?
Well, John and Julie hope to take out a mortgage of $250,000. At a rate of 6%, they would need to find $1600 per month to service the mortgage on a 25-year amortization. But they need only $1487 for a 30-year amortization or $1413 for a 35-year: similar to what they are currently paying for rent.
Their mortgage planner can help them factor in any additional costs, but these longer amortization mortgages put mortgage payments within reach.
They do increase the amount of overall interest paid, which is why they shouldn't be considered to simply reduce your monthly payment if you can afford a shorter amortization period.
So why would anyone want to spend over 30 years paying for a home and pay more interest in the long run?
With good mortgage planning, it doesn't have to work out that way. The long amortization period helps new homebuyers get into the housing market at a lower threshold.
As John and Julie finish paying off their loans, and as their income increases, they'll be able to shorten their amortization period and support a larger monthly payment.
But until then, they'll have an early advantage that allows them to enjoy their new home now and begin building home equity; otherwise they'd be watching their monthly rent payment work for their landlord rather than for them.
And that - says John and Julie - is a great beginning.
But the cost of housing in Toronto may still seem prohibitive and you might not feel like you want to deal with the mortage payment to get into the home or neighbourhood that you want.
Good news. There are a number of new mortage products that offer a solution.
In this article, Peter discusses 30+ Year mortgages that may put home ownership within your reach...
Over 30-year mortages put that first home within reach.Let's call them John and Julie. Recently married, they're still struggling to pay off student loans and the new car they've just purchased.
John and Julie have moved into a nicer apartment, but are watching their rent money go out the window while their more established friends enjoy the rise in the value of their homes.
Interest rates are enticingly low, but John and Julie still aren't sure they can handle mortgage payments, even though they feel that they're missing out on a great opportunity in today's market, and they do want their own place to decorate and enjoy.
There's good news for John and Julie. Homebuyers can now stretch mortgage amortizations - the length of time calculated to pay off a mortgage - to 30, 35 and even 40 years.
Not too long ago, it was almost impossible to get a mortgage amortization for more than 25 years. In 2005, the Canada Mortgage and Housing Corporation (CMHC) announced that they would insure 30-year mortgages with only 5% down in a special pilot project.
The move was calculated to help Canadians like John and Julie get into their own home. Canadians went house shopping and took advantage of the opportunity, causing CMHC to make the 30-year mortgage part of their ongoing product offering and even extending amortizations to 35 years.
In the spring of 2006, a 40-year amortization mortgage was introduced to the marketplace.
The rationale behind longer amortizations is simple; they help bring down the cost of monthly payments and bring home ownership within reach for young couples, new immigrants, self-employed Canadians, or prospective homebuyers with less-than-perfect credit.
They are also good news for homebuyers who are struggling in an area where real estate prices are rising rapidly, or need a solution to help them through a tough financial period.
What kind of difference can homebuyers expect?
Well, John and Julie hope to take out a mortgage of $250,000. At a rate of 6%, they would need to find $1600 per month to service the mortgage on a 25-year amortization. But they need only $1487 for a 30-year amortization or $1413 for a 35-year: similar to what they are currently paying for rent.
Their mortgage planner can help them factor in any additional costs, but these longer amortization mortgages put mortgage payments within reach.
They do increase the amount of overall interest paid, which is why they shouldn't be considered to simply reduce your monthly payment if you can afford a shorter amortization period.
So why would anyone want to spend over 30 years paying for a home and pay more interest in the long run?
With good mortgage planning, it doesn't have to work out that way. The long amortization period helps new homebuyers get into the housing market at a lower threshold.
As John and Julie finish paying off their loans, and as their income increases, they'll be able to shorten their amortization period and support a larger monthly payment.
But until then, they'll have an early advantage that allows them to enjoy their new home now and begin building home equity; otherwise they'd be watching their monthly rent payment work for their landlord rather than for them.
And that - says John and Julie - is a great beginning.
For more information about these producst, contact Peter at the number above or visit his website at www.mymortgageplanner.ca
February 2007 Market Watch
Ok, so we do have some fair-weather home buyers, but the cold snap in February didn't dampen home shopping spirits too much.
February 2007 was the second-best ever for sales activity with 6,772 sales, just higher than 2006's 6,756 sales.
TREB President Dorothy Mason commented, "While the weather last month may have been cold, Toronto's resale housing market remained hot,"
"And while it is too early to make predictions, it is clear from the start of 2007 that the spring season is likely to produce sales numbers at least comparable to those of the past several years, which have been record or near record performances."
Meanwhile, average prices climbed four per cent over the previous month to $368,687 as sales activity accelerated. They were also up four per cent from the February 2006 figure of $353,928. The average time-on-market was a deep freeze of 35 days.
Check out the following areas to see average prices from February 2007 in your neighbourhood.
Neighbourhood Watch...
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $578,038
Semi-detached: $427,005
Condo: $354,838
E03 - Danforth (north)(DVP, victoria park, danforth)
Detached: $426,450
Semi-Detached: $385,194
Condo: $149,926
E01 - Danforth (south) Riverdale (DVP, danforth, coxwell)
Detached: $456,936
Semi-Detached: $396,684
Condo:$289,240
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $896,730
Semi-Detached: $572,000
Condo: $264,703
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $721,125
Semi-Detached: $579,909
Condo: $315,778
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $1,086,605
Semi-Detached: $360,800
Condo: $638,482
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,569,439
Semi-Detached: n/a
Condo: $315,500
Source: Toronto Real Estate Board February 2007 MarketWatch - for the full report, click here.
February 2007 was the second-best ever for sales activity with 6,772 sales, just higher than 2006's 6,756 sales.
TREB President Dorothy Mason commented, "While the weather last month may have been cold, Toronto's resale housing market remained hot,"
"And while it is too early to make predictions, it is clear from the start of 2007 that the spring season is likely to produce sales numbers at least comparable to those of the past several years, which have been record or near record performances."
Meanwhile, average prices climbed four per cent over the previous month to $368,687 as sales activity accelerated. They were also up four per cent from the February 2006 figure of $353,928. The average time-on-market was a deep freeze of 35 days.
Check out the following areas to see average prices from February 2007 in your neighbourhood.
Neighbourhood Watch...
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $578,038
Semi-detached: $427,005
Condo: $354,838
E03 - Danforth (north)(DVP, victoria park, danforth)
Detached: $426,450
Semi-Detached: $385,194
Condo: $149,926
E01 - Danforth (south) Riverdale (DVP, danforth, coxwell)
Detached: $456,936
Semi-Detached: $396,684
Condo:$289,240
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $896,730
Semi-Detached: $572,000
Condo: $264,703
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $721,125
Semi-Detached: $579,909
Condo: $315,778
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $1,086,605
Semi-Detached: $360,800
Condo: $638,482
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,569,439
Semi-Detached: n/a
Condo: $315,500
Source: Toronto Real Estate Board February 2007 MarketWatch - for the full report, click here.
Friday, February 16, 2007
January 2007 Market Watch
Our delayed winter meant a lot of people were buying homes in January! Sales activity was up 6% over last year.
Not only that, but higher temperatures resulted in higher prices. Average prices climbed up 5% over December and up six percent over January 2006.
But one month, especially the first one of the year should not be the benchmark. Februrary remains to be seen with less than ideal conditions for home shopping and selling.
Still, Ted Tsiakopolous, CMHC's Ontario regional economist stated that "The market remains resilient despite slower job growth, high energy prices, and a loss of migrants to western Canada. Historically low interest rates, strong income growth and healthy consumer confidence are important factors in keeping January home sales buoyant across the GTA."
He continues, saying "These are idea conditions, and consumers can feel confident making a switch to another home or realizing their dream of home ownership for the first time."
Check out the following areas to see average prices from December 2006 in your neighbourhood.
Neighbourhood Watch...
E02 -The Beach
(coxwell, danforth, victoria park)
Detached: $584,631
Semi-detached: $387,206
Condo: $383,833
E03 - Danforth (north)
(DVP, victoria park, danforth)
Detached: $404,498
Semi-Detached: $353,150
Condo: $138,292
E01 - Danforth (south) Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $352,802
Semi-Detached: $342,910
Condo:$286,000
C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Detached: $729,440
Semi-Detached: $646,192
Condo: $214,676
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,078,050
Semi-Detached: n/a
Condo: $434,878
C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Detached: $756,167
Semi-Detached: $342,165
Condo: $615,720
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Detached: $2,120,292
Semi-Detached: n/a
Condo: $471,333
Source: Toronto Real Estate Board January 2007 MarketWatch - for the full report, click here.
Not only that, but higher temperatures resulted in higher prices. Average prices climbed up 5% over December and up six percent over January 2006.
But one month, especially the first one of the year should not be the benchmark. Februrary remains to be seen with less than ideal conditions for home shopping and selling.
Still, Ted Tsiakopolous, CMHC's Ontario regional economist stated that "The market remains resilient despite slower job growth, high energy prices, and a loss of migrants to western Canada. Historically low interest rates, strong income growth and healthy consumer confidence are important factors in keeping January home sales buoyant across the GTA."
He continues, saying "These are idea conditions, and consumers can feel confident making a switch to another home or realizing their dream of home ownership for the first time."
Check out the following areas to see average prices from December 2006 in your neighbourhood.
Neighbourhood Watch...
E02 -The Beach
(coxwell, danforth, victoria park)
Detached: $584,631
Semi-detached: $387,206
Condo: $383,833
E03 - Danforth (north)
(DVP, victoria park, danforth)
Detached: $404,498
Semi-Detached: $353,150
Condo: $138,292
E01 - Danforth (south) Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $352,802
Semi-Detached: $342,910
Condo:$286,000
C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Detached: $729,440
Semi-Detached: $646,192
Condo: $214,676
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,078,050
Semi-Detached: n/a
Condo: $434,878
C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Detached: $756,167
Semi-Detached: $342,165
Condo: $615,720
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Detached: $2,120,292
Semi-Detached: n/a
Condo: $471,333
Source: Toronto Real Estate Board January 2007 MarketWatch - for the full report, click here.
Creating a 'Green' Home
With rising energy costs and the disastrous impact on the environment we can no longer wash our hands of doing what we can to help.
Although we haven't yet seen many buyers pushing for 'green' homes, I predict this will be the next trend on buyers' wish lists (and hopefully a permanent one).
So, what can you do easily, right now to make an impact both for yourself, for the future and to make your home even more desirable to buyers?
Here are some ideas from Al Gore's "An Inconvenient Truth" website:
Replace a regular incandescent light bulb with a compact fluorescent light bulb (cfl)
CFLs use 60% less energy than a regular bulb. This simple switch will save about 300 pounds of carbon dioxide a year. If every family in the U.S. made the switch, we’d reduce carbon dioxide by more than 90 billion pounds!
Move your thermostat down 2° in winter and up 2° in summer.
Almost half of the energy we use in our homes goes to heating and cooling. You could save about 2,000 pounds of carbon dioxide a year with this simple adjustment.
Clean or replace filters.
Cleaning a dirty air filter on your furnace and airconditioner can save 350 pounds of carbon dioxide a year.
Install a programmable thermostat.
They will automatically lower the heat or air conditioning at night and raise them again in the morning. They can save you $100 a year on your energy bill.
Choose energy efficient appliances when making new purchases.
Look for the Energy Star label on new appliances to choose the most efficient models. If each household in the U.S. replaced its existing appliances with the most efficient models available, we’d eliminate 175 million tons of carbon dioxide emissions every year!
Wrap your water heater in an insulation blanket.
You’ll save 1,000 pounds of carbon dioxide a year with this simple action. You can save another 550 pounds per year by setting the thermostat no higher than 120 degrees Fahrenheit.
Use less hot water.
It takes a lot of energy to heat water. You can use less hot water by installing a low flow showerhead (350 pounds of carbon dioxide saved per year) and washing your clothes in cold or warm water (500 pounds saved per year) instead of hot.
Unplug electronics from the wall when you’re not using them.
Even when turned off, things like hairdryers, cell phone chargers and televisions use energy. In fact, the energy used to keep display clocks lit and memory chips working accounts for 5 percent of total domestic energy consumption and spews 18 million tons of carbon into the atmosphere every year!
Insulate and weatherize your home.
Properly insulating your walls and ceilings can save 25% of your home heating bill and 2,000 pounds of carbon dioxide a year. Caulking and weather-stripping can save another 1,700 pounds per year.
Switch to green power.
In many areas, you can switch to energy generated by clean, renewable sources such as wind and solar. The Green Power Network is a good place to start to figure out what’s available in your area.
Plant a tree.
A single tree will absorb one ton of carbon dioxide over its lifetime. Shade provided by trees can also reduce your air conditioning bill by 10 to 15%. The Arbor Day Foundation has information on planting and provides trees you can plant with membership.
To share any of your ideas, please click on the comments box below!
Although we haven't yet seen many buyers pushing for 'green' homes, I predict this will be the next trend on buyers' wish lists (and hopefully a permanent one).
So, what can you do easily, right now to make an impact both for yourself, for the future and to make your home even more desirable to buyers?
Here are some ideas from Al Gore's "An Inconvenient Truth" website:
Replace a regular incandescent light bulb with a compact fluorescent light bulb (cfl)CFLs use 60% less energy than a regular bulb. This simple switch will save about 300 pounds of carbon dioxide a year. If every family in the U.S. made the switch, we’d reduce carbon dioxide by more than 90 billion pounds!
Move your thermostat down 2° in winter and up 2° in summer.Almost half of the energy we use in our homes goes to heating and cooling. You could save about 2,000 pounds of carbon dioxide a year with this simple adjustment.
Clean or replace filters.Cleaning a dirty air filter on your furnace and airconditioner can save 350 pounds of carbon dioxide a year.
Install a programmable thermostat.
They will automatically lower the heat or air conditioning at night and raise them again in the morning. They can save you $100 a year on your energy bill.
Choose energy efficient appliances when making new purchases.
Look for the Energy Star label on new appliances to choose the most efficient models. If each household in the U.S. replaced its existing appliances with the most efficient models available, we’d eliminate 175 million tons of carbon dioxide emissions every year!
Wrap your water heater in an insulation blanket.
You’ll save 1,000 pounds of carbon dioxide a year with this simple action. You can save another 550 pounds per year by setting the thermostat no higher than 120 degrees Fahrenheit.
Use less hot water.
It takes a lot of energy to heat water. You can use less hot water by installing a low flow showerhead (350 pounds of carbon dioxide saved per year) and washing your clothes in cold or warm water (500 pounds saved per year) instead of hot.
Unplug electronics from the wall when you’re not using them.Even when turned off, things like hairdryers, cell phone chargers and televisions use energy. In fact, the energy used to keep display clocks lit and memory chips working accounts for 5 percent of total domestic energy consumption and spews 18 million tons of carbon into the atmosphere every year!
Insulate and weatherize your home.
Properly insulating your walls and ceilings can save 25% of your home heating bill and 2,000 pounds of carbon dioxide a year. Caulking and weather-stripping can save another 1,700 pounds per year.
Switch to green power.
In many areas, you can switch to energy generated by clean, renewable sources such as wind and solar. The Green Power Network is a good place to start to figure out what’s available in your area.
Plant a tree.
A single tree will absorb one ton of carbon dioxide over its lifetime. Shade provided by trees can also reduce your air conditioning bill by 10 to 15%. The Arbor Day Foundation has information on planting and provides trees you can plant with membership.
To share any of your ideas, please click on the comments box below!
Wednesday, January 17, 2007
Market Watch - 2006 Report and the Year Ahead
2006 at a glance...
In the City of Toronto, 34,404 sales were recorded while the resale market was at its most active, up one percent over 2005. The average price rose five percent from $335,907 to $351,941.
What does this mean for you?
If you're waiting to get into the market until the economy slows down and prices drop then you'll be waiting quite a while, not to mention losing valuable equity and growth in your property value in the meantime.
If you own real estate, congratulations - you are most likely benefiting from the average 5% increase in value in your home.
For years now many people have been saying the market was going to slow down. In general terms, this could be the case. But for a growing city whose real estate is undervalued, values keep increasing.
Here is a snapshot of the average cost of a home in North American cities in 2006:
NOTES: Median sale price for 2,200 sq. ft. residence in low-crime neighbourhood. Specifics: 3+ bedroom, 2½+ bath, attached 2-car garage, 2,200 square foot (190 square metre) residence, on at least a 6,500 square foot (604 square metre) lot.
Montreal $335,200
Calgary $369,300
Toronto $421,500
Atlanta $436,300
Dallas $438,200
Chicago $597,800
Vancouver $609,800
Washington $862,800
Los Angeles $1,187,500
Boston $1,384,100
New York $1,599,300
San Francisco $1,635,200
Source: Economic Research Institute, The Geographic Reference Report 2006
Toronto, compared to other major metropolitan cities and financial centres, is significantly undervalued and affordable. This trend continues if you look at other major cities throughout the world.
Like any economy, there will be valleys and peaks. But historical value increases show that in the long term, it is still better to be in the market than out:
Year - Average Price of Single Family Home
1975 - $57,581
1980 - $75,694
1985 - $109,094
1990 - $255,020
1995 - $203,028
2000 - $243,255
2005 - $335,907
2006 - $351,941
Source: Toronto Real Estate Board MarketWatch - December 2006
What is in store for 2007?
The year ahead should prove to be a busy on if steady activity and value increases of five percent from 2005 to 2006 continue.
TREB president Dorothy Mason states, "This means that prices continue to outpace inflation, making home-ownership a sound investment in today's economy and invariably in the long term."
If you know anyone who is not currently in the market, I hope you'll share this information with them.
Best wishes for a happy and successful 2007!
Don't forget to check out the blog below, "What's Hot and What's Not in Homes for 2007!"
**************************************************************************
Check out the following areas to see average prices from December 2006 in your neighbourhood.
Neighbourhood Watch...
E02 -The Beach
(coxwell, danforth, victoria park)
Detached: $528,590
Semi-detached: $386,950
Condo: $288,313
E03 - Danforth (north)
(DVP, victoria park, danforth)
Detached: $353,769
Semi-Detached: $337,850
Condo: $185,100
E01 - Danforth (south) Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $449,929
Semi-Detached: $348,875
Condo:$656,000
C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Detached: $764,022
Semi-Detached: $486,134
Condo: $262,977
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,788,625
Semi-Detached: n/a
Condo: $578,396
C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Detached: $715,356
Semi-Detached: $583,750
Condo: $394,614
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Detached: $1,611,042
Semi-Detached: n/a
Condo: $255,000
Source: Toronto Real Estate Board December 2006 MarketWatch - for the full report, click here.
Wednesday, January 10, 2007
What's Hot, What's Not in Homes for 2007!
Ever wondered what people are looking for in a home when selling your own place? Have you really thought about what you are looking for in your own search?
Here is a summary of what's hot and what's not in homes for 2007.
source: REM Magazine "What's in , what's out with home buyers" January, 2007
WHAT'S HOT
Upscale Garages
From storage systems, heating, and flooring, garages have evolved!
Two Homes Offices
Work, work, work...people are forgetting the commute and saving their marraiges at the same time.
Heated Patios & Walkways
Tired of maintenance and looking to expand their living space al fresco, baby boomers are investing in this feature.
Snoring Rooms
Need we say more? Again, a great way to save your marriage.
Structured Wiring and Wireless
The ultimate goal, no wires...at least we're getting close. From coaxial TV cable to full home networks centres, you'll need an IT guy for the house.
Mixed Finishes
Who says the island has to match the wall cabinets? Designers are playing with textures and tones.
Selling Strategy
Homes that are priced right and good market timing if possible (spring and summer!).
WHAT'S NOT...
Selling Your Home "AS IS"
There is too much competition and too much to lose financially by not making the effort to do even the basic repairs, cleaning and staging.
Small Bedrooms
Developers tried to maximize profits by increasing the room count but if you can't fit a queen size bed in comfortably, it doesn't count anymore.
Hardwood Laminate Floors
No matter how good quality you buy, buyers can spot them a mile away. You may be saving $ when you put them in but you'll lose even more in the value of your home.
Buyer Strategies
Buyers are generally no longer putting in offers over asking price when a home is listed below market value to generate multiple offers.
In Summary...
Your agent should bring in a home staging professional to maximize your home's value and attract buyers for the 2007 market.
A little invested prior to the sale of a properly priced home will result in a quick sale at it's maximum value!!
Here is a summary of what's hot and what's not in homes for 2007.
source: REM Magazine "What's in , what's out with home buyers" January, 2007
WHAT'S HOT
Upscale Garages
From storage systems, heating, and flooring, garages have evolved!
Two Homes Offices
Work, work, work...people are forgetting the commute and saving their marraiges at the same time.
Heated Patios & Walkways
Tired of maintenance and looking to expand their living space al fresco, baby boomers are investing in this feature.
Snoring Rooms
Need we say more? Again, a great way to save your marriage.
Structured Wiring and Wireless
The ultimate goal, no wires...at least we're getting close. From coaxial TV cable to full home networks centres, you'll need an IT guy for the house.
Mixed Finishes
Who says the island has to match the wall cabinets? Designers are playing with textures and tones.
Selling Strategy
Homes that are priced right and good market timing if possible (spring and summer!).
WHAT'S NOT...
Selling Your Home "AS IS"
There is too much competition and too much to lose financially by not making the effort to do even the basic repairs, cleaning and staging.
Small Bedrooms
Developers tried to maximize profits by increasing the room count but if you can't fit a queen size bed in comfortably, it doesn't count anymore.
Hardwood Laminate Floors
No matter how good quality you buy, buyers can spot them a mile away. You may be saving $ when you put them in but you'll lose even more in the value of your home.
Buyer Strategies
Buyers are generally no longer putting in offers over asking price when a home is listed below market value to generate multiple offers.
In Summary...
Your agent should bring in a home staging professional to maximize your home's value and attract buyers for the 2007 market.
A little invested prior to the sale of a properly priced home will result in a quick sale at it's maximum value!!
Wednesday, November 08, 2006
Oct. '06 Toronto Real Estate Market Report
Despite the water cooler chat that the market is either in a downturn or heading for one, people just keep buying and selling homes in Toronto.
The numbers continue to prove the naysayers wrong...average prices in October rose 2 percent over September and the number of transactions rose 4 percent.
TREB president Dorothy Mason stated "This is a very heathy, active market." Average prices over October 2005 are up four percent with the average home in the GTA at $362,423 compared to $342,450 in 2005.
With mortgage rates nudging down with a posted 5-year fixed rate of 5.1% the market will most likely continue with strength.
Here are the highlights of some districts from the Toronto Real Estate Board's October 2006 most recent market watch:
(Each number represents the average - street parameters are in order of west, north, east, south boundaries.)
E02 -The Beach
(coxwell, danforth, victoria park)
Days on market: 19
% of list: 100%
Detached: $575,698
Semi-detached: $388,501
Condo: $269,3333
E03 - Danforth (north)
(DVP, victoria park, danforth)
Days on market: 24
% of list: 99%
Detached: $381,980
Semi-Detached: $362,474
Condo: $172,100
E01 - Danforth (south) /Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $377,322
Semi-Detached: $376,352
Condo:$339,000
C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Days on market: 28
% of list: 100%
Detached: $812,296
Semi-Detached: $515,613
Condo: $247,500
C09 - Rosedale
(yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,630,667
Semi-Detached: $954,382
Condo: $403,045
C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Days on market: 40
% of list: 98%
Detached: $819,626
Semi-Detached: $447,214
Condo: $451,674
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Days on market: 33
% of list: 97%
Detached: $1,669,444
Semi-Detached: n/a
Condo: $554,450
All data is from the Torono Real Estate Board October 2006 MarketWatch - for the full report, click here.
The numbers continue to prove the naysayers wrong...average prices in October rose 2 percent over September and the number of transactions rose 4 percent.
TREB president Dorothy Mason stated "This is a very heathy, active market." Average prices over October 2005 are up four percent with the average home in the GTA at $362,423 compared to $342,450 in 2005.
With mortgage rates nudging down with a posted 5-year fixed rate of 5.1% the market will most likely continue with strength.
Here are the highlights of some districts from the Toronto Real Estate Board's October 2006 most recent market watch:
(Each number represents the average - street parameters are in order of west, north, east, south boundaries.)
E02 -The Beach
(coxwell, danforth, victoria park)
Days on market: 19
% of list: 100%
Detached: $575,698
Semi-detached: $388,501
Condo: $269,3333
E03 - Danforth (north)
(DVP, victoria park, danforth)
Days on market: 24
% of list: 99%
Detached: $381,980
Semi-Detached: $362,474
Condo: $172,100
E01 - Danforth (south) /Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $377,322
Semi-Detached: $376,352
Condo:$339,000
C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Days on market: 28
% of list: 100%
Detached: $812,296
Semi-Detached: $515,613
Condo: $247,500
C09 - Rosedale
(yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,630,667
Semi-Detached: $954,382
Condo: $403,045
C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Days on market: 40
% of list: 98%
Detached: $819,626
Semi-Detached: $447,214
Condo: $451,674
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Days on market: 33
% of list: 97%
Detached: $1,669,444
Semi-Detached: n/a
Condo: $554,450
All data is from the Torono Real Estate Board October 2006 MarketWatch - for the full report, click here.
Monday, November 06, 2006
Why won't my house sell?
My wife was recently on the www.beachestoronto.com chatroom answering a question posted by another beaches resident. Her neighbour's house had been sitting on the market for some time and there were some opinions as to why it had not sold. I shared my opinion as well as some stats from the Toronto Real Estate Board market report via her reply to help answer why a home often won't sell...
"A few things to consider:
1. The actual activity in the market of this area is not far below with this time last year in terms of number of sales so things are still going strong. Although you are correct...you aren't seeing the crazy bidding wars quite as much. Current stats show houses in this area during the month of September (classified as 'E02' on MLS) are on the market for an average of 19 days and sell for 101% of list. Average for days on market has only gone up 2 days. Median price is up to $394,000 for all types of homes compared to $373,500 last year. For detached homes it was $506,000 last year and $600,000 now!
2. Overall, three primary elements are going to sell a home - and true, there are some that don't matter to everyone - but generally speaking, we're talking about Location, Condition and Price. If a home shows beautifully, has a great location, but isn't selling, it's usually overpriced. Net net, if you can't adjust location, and the home shows beautifully, then the price needs to be looked at.
You've all probably heard this time and time again but it's true. Many home owners think their home is worth more or have been pursuaded by an agent that it is worth more to get the listing. They want to take a shot at a higher price and see if they can get it.
Unfortunately, the house sits on the market and doesn't sell. Why? Most people and agents search by MLS to scope out what is in their price range. If yours is listed above that range, they likely won't see it. Second, even if they do see an ad or a flyer, they are going to compare it to other homes that are priced properly in that range and it will pale in comparison. Many people ask why a buyer won't just put an offer in. Given the effort, emotional commitment etc. that you get into once you start that negotiation process, unless you realistically think it's going to result in a sale, most people don't want to get into it. Then, the price may get adjusted to the market later but now the house is 'stale'. People wonder what is wrong with it and they've lost the momentum and interest of a new listing.
Case in point. My husband just worked with a client that listed with another agent in the spring who priced it above market. It sat and sat, they dropped the price, and it still didn't sell. They decided to work with him this time based on a referral so it went back on the market last week, priced appropriately (and brought in a stager to make sure it showed as well as possible). It sold in one day above asking price and above what the reduced price had been in the spring. Your agent has to do their homework (they should be providing you with a full comparative market analysis) to ensure you get the best possible price within the current market.
Net-net, the market in this neighbourhood is still going very strong but as long as people respect market values, use the right pricing strategy depending on their goals, and ensure they do everything possible to make sure their home appeals to buyers, then you should have success.
In terms of forecasting the market, no one has a crystal ball and people have been predicting for years that the market is going to slow down - the numbers above are clearly contradicting this. Toronto as a city is undervalued. It depends on your interests...are you getting into the market for the short or long term? The Beach in particular will be somewhat sheltered from any market drops because of it's location. Yes, as interest rates rise buyers will be more hesitant to jump in but overall, better to be in the market than out.
"A few things to consider:
1. The actual activity in the market of this area is not far below with this time last year in terms of number of sales so things are still going strong. Although you are correct...you aren't seeing the crazy bidding wars quite as much. Current stats show houses in this area during the month of September (classified as 'E02' on MLS) are on the market for an average of 19 days and sell for 101% of list. Average for days on market has only gone up 2 days. Median price is up to $394,000 for all types of homes compared to $373,500 last year. For detached homes it was $506,000 last year and $600,000 now!
2. Overall, three primary elements are going to sell a home - and true, there are some that don't matter to everyone - but generally speaking, we're talking about Location, Condition and Price. If a home shows beautifully, has a great location, but isn't selling, it's usually overpriced. Net net, if you can't adjust location, and the home shows beautifully, then the price needs to be looked at.
You've all probably heard this time and time again but it's true. Many home owners think their home is worth more or have been pursuaded by an agent that it is worth more to get the listing. They want to take a shot at a higher price and see if they can get it.
Unfortunately, the house sits on the market and doesn't sell. Why? Most people and agents search by MLS to scope out what is in their price range. If yours is listed above that range, they likely won't see it. Second, even if they do see an ad or a flyer, they are going to compare it to other homes that are priced properly in that range and it will pale in comparison. Many people ask why a buyer won't just put an offer in. Given the effort, emotional commitment etc. that you get into once you start that negotiation process, unless you realistically think it's going to result in a sale, most people don't want to get into it. Then, the price may get adjusted to the market later but now the house is 'stale'. People wonder what is wrong with it and they've lost the momentum and interest of a new listing.
Case in point. My husband just worked with a client that listed with another agent in the spring who priced it above market. It sat and sat, they dropped the price, and it still didn't sell. They decided to work with him this time based on a referral so it went back on the market last week, priced appropriately (and brought in a stager to make sure it showed as well as possible). It sold in one day above asking price and above what the reduced price had been in the spring. Your agent has to do their homework (they should be providing you with a full comparative market analysis) to ensure you get the best possible price within the current market.
Net-net, the market in this neighbourhood is still going very strong but as long as people respect market values, use the right pricing strategy depending on their goals, and ensure they do everything possible to make sure their home appeals to buyers, then you should have success.
In terms of forecasting the market, no one has a crystal ball and people have been predicting for years that the market is going to slow down - the numbers above are clearly contradicting this. Toronto as a city is undervalued. It depends on your interests...are you getting into the market for the short or long term? The Beach in particular will be somewhat sheltered from any market drops because of it's location. Yes, as interest rates rise buyers will be more hesitant to jump in but overall, better to be in the market than out.
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