Perusing book store shelves recently had me coming across the section on Ernest Hemingway. I stopped short at one book entitled: "To Have and Have Not". While this book doesn't focus on real estate, it does bring to mind some sound advice I wanted to pass along to all my favorite buyers out there.
Let me pre-face by saying that I do not begrudge you your dreams, I want the amazing restored character home on the river with the re-done hardwoods and brand new kitchen too! While most savvy home-buyers make a wish list and stick to a budget, some buyers have a dangerous tendency to lean towards that mindset of having it all, whether they can afford it or not.
Often I find myself in the situation with a buyer who has fallen in love with a type of home or home "ideal" that they simply cannot afford. It happens! They are out for a Sunday stroll to the cafe and happen upon an open house featuring a restored brick beauty from 1920, or maybe they visit a friend who just built a brand new home full of light and space, or the chic warehouse condos on the waterfront. Some buyers can view these places as homes they will have one day, or simply wonderful pieces of art, architecture, and dreams. Then they can continue on with life and regular home hunting with positive gusto, never once comparing the home they can afford to the one they could not.
That is group one.
Now group two. Another story... Not that I don't love the zest for life, and the visceral appreciation for amazingly beautiful homes that I get from this camp, but often a painful reality check is in the works for these wonderful home buyers. Its not an easy thing to do, convince someone that if their budget is $200 000, homes that would otherwise be worth more are simply not a viable option. Value is value, and while wiggle room can exist, its best not to count on it.
My advice for you: Don't look at what your friends have, or what your parents think you should have, or the pretty house down the street that you really want but won't work in your budget. Its a tempting thing to think you are willing to sacrifice Tim Horton's coffee, football tickets and shopping trips just to have that brand new kitchen you are drooling over. But just stop!
Remembering what is truly important in life should be a daily venture, never living to regret something should be another one. So in this instance, appreciate beauty and dream homes for what they are, put owning one on your to do list for sure, but make sure to remember to live in the here and now. There is nothing wrong with just starting out somewhere, working your way up in the world.
Remember that owning a home that needs some work, or is not "perfect" is one of life's adventures all on its own.
Tuesday, December 30, 2008
Monday, July 14, 2008
Showing your ID to your REALTOR
NEW RULES: Ottawa requires property buyer, seller info
By HANK DANISZEWSKI
The London Free Press
Canadian realtors are bracing for a customer backlash starting today, as
they become new foot soldiers in the battle against money-laundering.
Federal regulations that kick in today will force realtors to start asking
property sellers and buyers personal information never before required.
In Ontario alone, 47,000 realtors will be expected to fall in line or face
stiff penalties.
"We know there is going to be consumer rejection on this and we are just
following the law," said Gerry Weir, a London realtor and president of the
Ontario Real Estate Association (OREA).
Realtors will be required to ask for the name, address, date of birth and
occupation of property buyers and sellers, plus ID such as a driver's
licence or passport.
Weir said Ottawa has made little effort to educate people about the changes,
and realtors feel they're being forced into an uncomfortable enforcement
role.
He said realtors will have to keep the information for seven years and
submit it on request to the Financial Transaction and Reports Analysis
Centre of Canada (FINTRAC), a federal agency set up to track suspicious
transactions that could be related to money- laundering or terrorism.
If the buyer is foreign or from another part of Canada, the real estate
broker will be required to hire an agent in the buyer's community who can
confirm the buyer's ID.
If a client refuses to disclose the information, Weir said, a realtor would
have to walk away from the deal or report the person to FINTRAC.
"Even if I have known you for 30 years, I still have to ask for that
information," he said.
Weir said it could get even worse.
He said Ottawa also wanted to require a receipt-of-funds record, with
information on anyone who actually supplied money for sales, including
relatives or friends.
Weir said the government backed down on that, but he expects it will only be
temporary.
"That is the next step; that will happen," he said.
FINTRAC officials appear confused about the new rules.
Spokesperson Peter Lamey at first said one piece of ID was needed from
buyers and sellers, and information such as date of birth and occupation
wouldn't be required.
He later said the information wouldn't only be required from buyers and
sellers, but also from anyone who contributed money to a deal as part of the
receipt of funds record, contradicting Weir's belief that Ottawa had backed
down on that provision.
Negotiations on the rules were handled by the federal Finance Department and
not FINTRAC, Lamey said.
Weir said he understands the need to deal with the problem of money
laundering.
For years, realtors have been required to report any suspicious financial
transactions to FINTRAC, especially those involving cash payments of more
than $10,000.
Weir said he's reported three transactions in recent years, and two involved
someone trying to buying a house to set up a marijuana growing operation.
Still, he said only a very small number of real estate transaction are
suspicious.
Weir said the government will only do spot inspections during the next six
months to ensure realtors and brokers are meeting the requirements.
After that, any realtor or broker who doesn't meet the requirements could
face hefty fines or jail time.
Weir said the OREA wants to educate people about the changes, but there've
been long negotiations with the government and the rules weren't firmed up
until last week.
"We have 47,000 realtors in Ontario that we have to educate by (today)," he
said.
By HANK DANISZEWSKI
The London Free Press
Canadian realtors are bracing for a customer backlash starting today, as
they become new foot soldiers in the battle against money-laundering.
Federal regulations that kick in today will force realtors to start asking
property sellers and buyers personal information never before required.
In Ontario alone, 47,000 realtors will be expected to fall in line or face
stiff penalties.
"We know there is going to be consumer rejection on this and we are just
following the law," said Gerry Weir, a London realtor and president of the
Ontario Real Estate Association (OREA).
Realtors will be required to ask for the name, address, date of birth and
occupation of property buyers and sellers, plus ID such as a driver's
licence or passport.
Weir said Ottawa has made little effort to educate people about the changes,
and realtors feel they're being forced into an uncomfortable enforcement
role.
He said realtors will have to keep the information for seven years and
submit it on request to the Financial Transaction and Reports Analysis
Centre of Canada (FINTRAC), a federal agency set up to track suspicious
transactions that could be related to money- laundering or terrorism.
If the buyer is foreign or from another part of Canada, the real estate
broker will be required to hire an agent in the buyer's community who can
confirm the buyer's ID.
If a client refuses to disclose the information, Weir said, a realtor would
have to walk away from the deal or report the person to FINTRAC.
"Even if I have known you for 30 years, I still have to ask for that
information," he said.
Weir said it could get even worse.
He said Ottawa also wanted to require a receipt-of-funds record, with
information on anyone who actually supplied money for sales, including
relatives or friends.
Weir said the government backed down on that, but he expects it will only be
temporary.
"That is the next step; that will happen," he said.
FINTRAC officials appear confused about the new rules.
Spokesperson Peter Lamey at first said one piece of ID was needed from
buyers and sellers, and information such as date of birth and occupation
wouldn't be required.
He later said the information wouldn't only be required from buyers and
sellers, but also from anyone who contributed money to a deal as part of the
receipt of funds record, contradicting Weir's belief that Ottawa had backed
down on that provision.
Negotiations on the rules were handled by the federal Finance Department and
not FINTRAC, Lamey said.
Weir said he understands the need to deal with the problem of money
laundering.
For years, realtors have been required to report any suspicious financial
transactions to FINTRAC, especially those involving cash payments of more
than $10,000.
Weir said he's reported three transactions in recent years, and two involved
someone trying to buying a house to set up a marijuana growing operation.
Still, he said only a very small number of real estate transaction are
suspicious.
Weir said the government will only do spot inspections during the next six
months to ensure realtors and brokers are meeting the requirements.
After that, any realtor or broker who doesn't meet the requirements could
face hefty fines or jail time.
Weir said the OREA wants to educate people about the changes, but there've
been long negotiations with the government and the rules weren't firmed up
until last week.
"We have 47,000 realtors in Ontario that we have to educate by (today)," he
said.
Sunday, May 4, 2008
FAQ's about Deposits
What is a deposit for?
A deposit is a show of good faith that you intend to purchase the home.
Do I have to give one?
I am to understand that by law you are not legally required to give one, however it is such a common practice in today's market that seller's may not understand why you don't have one.
Where does the money come from?
The money would have to come from you directly.
Is the deposit money on top of the sale price?
I get asked this all the time! The answer is NO way! If you bought a house that was $150 000, your deposit is $5000, the sale goes through and is finalized, you now owe $145 000.
Is the deposit the same as the downpayment?
Sort of... The deposit is PART of the downpayment. Certainly it can be all if you would like, but may not be possible. For example, if your price range is $100 000, and you have your 5% down which equals $5000. You may only want to put $1000 down as a deposit. The main reason for this is deposits are cashed within 24 hours of acceptance of an offer, so if you don't have the entire amount now then you don't have to worry about it right away.
How much should I have for a deposit?
This depends on a few things, how much you have to put down now, and maybe even how much the house is. Some sellers will want as high of a deposit as possible, some are less concerned with such things. The best advice is to ask me what I think is best at the time the offer is written. Normal amounts are between $1000 and $5000.
How do I know my money is protected?
The money is deposited into the listing broker's trust account. The money is safely kept there and is then forwarded to the lawyer upon completion of the sale.
Who is the cheque made out to?
Because it is held in the listing broker's trust account it is made out to the Listing Brokerage.
What happens if I write a cheque and don't get the house?
The cheque is voided, never cashed and mailed back to either the agent that submitted the offer or the client.
What happens if I write an offer, we get it, and my conditions fall through?
If the offer was accepted and the cheque cashed then the agent would send in a form requesting a return of funds based on conditions not satisfied. It can take up to 10-15 business days to have that money returned.
What happens if my cheque bounces?
Oh boy... try not to do that!! Hopefully the brokerage that cashes it is nice enough to call you and give you a chance to make sure that money is there.
Is a money order better?
It depends. It is for sure a way to prove that the cheque wont bounce!! It may not be convenient for you however as we may be meeting to write the offer after banking hours.
A deposit is a show of good faith that you intend to purchase the home.
Do I have to give one?
I am to understand that by law you are not legally required to give one, however it is such a common practice in today's market that seller's may not understand why you don't have one.
Where does the money come from?
The money would have to come from you directly.
Is the deposit money on top of the sale price?
I get asked this all the time! The answer is NO way! If you bought a house that was $150 000, your deposit is $5000, the sale goes through and is finalized, you now owe $145 000.
Is the deposit the same as the downpayment?
Sort of... The deposit is PART of the downpayment. Certainly it can be all if you would like, but may not be possible. For example, if your price range is $100 000, and you have your 5% down which equals $5000. You may only want to put $1000 down as a deposit. The main reason for this is deposits are cashed within 24 hours of acceptance of an offer, so if you don't have the entire amount now then you don't have to worry about it right away.
How much should I have for a deposit?
This depends on a few things, how much you have to put down now, and maybe even how much the house is. Some sellers will want as high of a deposit as possible, some are less concerned with such things. The best advice is to ask me what I think is best at the time the offer is written. Normal amounts are between $1000 and $5000.
How do I know my money is protected?
The money is deposited into the listing broker's trust account. The money is safely kept there and is then forwarded to the lawyer upon completion of the sale.
Who is the cheque made out to?
Because it is held in the listing broker's trust account it is made out to the Listing Brokerage.
What happens if I write a cheque and don't get the house?
The cheque is voided, never cashed and mailed back to either the agent that submitted the offer or the client.
What happens if I write an offer, we get it, and my conditions fall through?
If the offer was accepted and the cheque cashed then the agent would send in a form requesting a return of funds based on conditions not satisfied. It can take up to 10-15 business days to have that money returned.
What happens if my cheque bounces?
Oh boy... try not to do that!! Hopefully the brokerage that cashes it is nice enough to call you and give you a chance to make sure that money is there.
Is a money order better?
It depends. It is for sure a way to prove that the cheque wont bounce!! It may not be convenient for you however as we may be meeting to write the offer after banking hours.
Tuesday, April 22, 2008
fat free selling...? Now that is a nice concept!
Salespeople of all types have had a long history of being perceived by the public as "cheesy". Hey, before you shoot the messanger... remember that perception is reality and we have all heard this! I blame it on tried and true techniques that worked at one point, but never changed with the times. All industries must change, grow and adapt otherwise they become obsolete. Sales will never become obsolete so therefore we have a bigger responsibility to the public to really grab hold of what it is they want, and do it that way.
There are however, those salespeople, like myself who are so far from cheesy we completely exist outside that realm. I would never have the guts to try to pull the cheese on someone and sell them something, I would be frankly just a little embarrassed of myself! *chuckle* As a salesperson I actually do not like it when someone tries to "sell" me something because I am always looking for the gimmick behind the sales pitch. So I truly do understand why people are wary of salespeople of all kinds. I hear you, and I get it:) Funny thing is this cheesy-ness seems to really work for some people, but since I know who I am as a buyer, wary at best, I know that the market calls for a niche of salespeople who can think outside the cheese wheel and treat our clients the way we want to be treated. (fat free!)
Recently I decided to bite the bullet and go car shopping. First of all, you should know I did not want to deal with purchasing a new car, the whole idea was scary and daunting, I was worried about being sucked in to some sale by a bone fide "cheesy" salesman and the whole thing was almost too much. I was not even that particular about what I wanted, keeping in mind I know houses, not cars! Since I believe that you should do what you do best and refer the rest, I had to put my faith and trust in a complete stranger. Scary! I voiced my concerns to a friend and fellow realtor who referred me to his car salesman and I have to say, my experience was more than positive! Real estate is clearly a people and sales driven and focused business. I exist inside that world every day and I always try to understand my client's perspective. Now I was on the other side of the conversation and it was a great reminder for me that cheesy has no place on a negotiations table. In fact, I loved it! I loved it because it proved to me that my theories of cutting the cheese out of real estate sales has clearly bled to other sales industries and that a new, refreshing way of doing sales has truly taken hold. The best part? That honesty, integrity, and fun were on the table when working with the car salesperson. A friendly straight shooter from the get go, he wasn't up to any tricks, and I appreciated that. He wasn't afraid to suggest a car I had never thought of, anticipating my needs before I even had to ask, it was a relief to know he knew what I wanted because I really didn't! For the record, I am getting the car he suggested!
Selling and living in a world where I have to be sold on something, cheese free, is an interesting, innovative and frankly refreshing concept that all salespeople should embrace if they haven't already
So fat free selling, cutting out the cheese, seems to be creeping in the back door, of car lots and real estate alike... a refreshing wind of change that will only leave the community at our fingertips able to trust us more, and hopefully leave them happier. Which is an exciting concept to those of us who care about what we do, aren't just in it for the sale, and get a sincere satisfaction out of making the right match... a realtor to her car; a family to their new home. Like I said, sales is really all about the people, and that is where our hearts really lie.
There are however, those salespeople, like myself who are so far from cheesy we completely exist outside that realm. I would never have the guts to try to pull the cheese on someone and sell them something, I would be frankly just a little embarrassed of myself! *chuckle* As a salesperson I actually do not like it when someone tries to "sell" me something because I am always looking for the gimmick behind the sales pitch. So I truly do understand why people are wary of salespeople of all kinds. I hear you, and I get it:) Funny thing is this cheesy-ness seems to really work for some people, but since I know who I am as a buyer, wary at best, I know that the market calls for a niche of salespeople who can think outside the cheese wheel and treat our clients the way we want to be treated. (fat free!)
Recently I decided to bite the bullet and go car shopping. First of all, you should know I did not want to deal with purchasing a new car, the whole idea was scary and daunting, I was worried about being sucked in to some sale by a bone fide "cheesy" salesman and the whole thing was almost too much. I was not even that particular about what I wanted, keeping in mind I know houses, not cars! Since I believe that you should do what you do best and refer the rest, I had to put my faith and trust in a complete stranger. Scary! I voiced my concerns to a friend and fellow realtor who referred me to his car salesman and I have to say, my experience was more than positive! Real estate is clearly a people and sales driven and focused business. I exist inside that world every day and I always try to understand my client's perspective. Now I was on the other side of the conversation and it was a great reminder for me that cheesy has no place on a negotiations table. In fact, I loved it! I loved it because it proved to me that my theories of cutting the cheese out of real estate sales has clearly bled to other sales industries and that a new, refreshing way of doing sales has truly taken hold. The best part? That honesty, integrity, and fun were on the table when working with the car salesperson. A friendly straight shooter from the get go, he wasn't up to any tricks, and I appreciated that. He wasn't afraid to suggest a car I had never thought of, anticipating my needs before I even had to ask, it was a relief to know he knew what I wanted because I really didn't! For the record, I am getting the car he suggested!
Selling and living in a world where I have to be sold on something, cheese free, is an interesting, innovative and frankly refreshing concept that all salespeople should embrace if they haven't already
So fat free selling, cutting out the cheese, seems to be creeping in the back door, of car lots and real estate alike... a refreshing wind of change that will only leave the community at our fingertips able to trust us more, and hopefully leave them happier. Which is an exciting concept to those of us who care about what we do, aren't just in it for the sale, and get a sincere satisfaction out of making the right match... a realtor to her car; a family to their new home. Like I said, sales is really all about the people, and that is where our hearts really lie.
Thursday, February 21, 2008
Residential real estate markets across Canada post solid gains over past decade, says RE/MAX
Kelowna, BC (February 21, 2008) – Pent-up demand, population growth, tight inventory levels, and the longest economic expansion since World War II collectively fueled one of the best decades on record for residential real estate in Canada, according to a report released today by RE/MAX.
RE/MAX Decade in Review 1997 - 2007 found that major housing centres across the country experienced strong consecutive growth between 1997 and 2007. Average price spiraled upward while unit sales climbed in tandem as more and more Canadians bought into homeownership. Nationally, average price almost doubled in the 10-year period, rising from $154,606 in 1997 to $307,265 in 2007, for a 7.1 per cent annually compounded rate of return. Home sales across the country increased just over 57 per cent from 331,092 units in 1997 to more than half a million sales last year. Edmonton led the country in terms of percentage increase in average price. The city saw a 203 per cent upswing in housing values - or an 11.7 per cent increase annually - with average price rising from $111,587 a decade ago to $338,636 in 2007. Prince Edward Island experienced the highest percentage increase in unit sales, with the number of homes sold up 119 per cent in the 10-year period.
“Immigration and in-migration have played a serious role in jumpstarting residential housing markets, particularly in British Columbia, Alberta, and to some extent, Saskatchewan over the past decade,” says Elton Ash, Executive Regional Vice President, RE/MAX of Western Canada. “At first, there was an influx of American buyers, especially in Canada’s coastal regions and recreational hot spots, as our southern neighbours took advantage of the almighty US greenback. Then the European and Middle Eastern purchasers flooded the market, buying up real estate considered ‘cheap’ by international standards. In recent years, there have been a growing number of purchasers from Mainland China. From a global perspective, there’s no question that Canadian real estate brings good value to the table.”
Percentage increases in home sales varied across the country, with Prince Edward Island experiencing the greatest upswing over the past decade, followed by St. John’s at 106 per cent, Kelowna at 84 per cent, and Saint John at 77 per cent. Most markets (12 of the 19 surveyed) reported increases between 40 and 60 per cent. Average price has also seen substantial escalation over the 10-year period, with posted gains ranging from a low of 54.4 per cent in London-St.Thomas to a high of 203 per cent in Edmonton. Appreciation in Western Canadian markets surpassed all others between 1997 and 2007, with Calgary ranking second in terms of price appreciation at 189 per cent, Kelowna at 179 per cent, Saskatoon at 137 per cent, Winnipeg at 118 per cent, Victoria at 114 per cent and Greater Vancouver at 99 per cent.
In 2006, homeownership rates in the country were the highest on record at 68.4 per cent. Population growth has contributed to heated market conditions – especially in Calgary (+31.4 per cent), Edmonton (+20 per cent), Toronto (+20 per cent), and Vancouver (+15 per cent) where percentage increases have hovered in the double-digit range. Overall, Canada’s population rose to almost 33 million in the 2006 census, up approximately 10 per cent from 1996 figures.
“The non-cyclical nature of the decade comes as some surprise,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “Never before have we seen such a continuous run up in Canadian real estate. Clearly, strength in all markets has been directly linked to solid growth in local, provincial and national economies. Low interest rates, job security, and consumer confidence have all served to further bolster home-buying activity across the nation.”
Robust economic performance in Western Canada has also drawn job seekers from across the country, looking to capitalize on employment opportunities.
As demand for housing increased across the country, the supply of homes listed for sale began to contract. Multiple offers were commonplace in many areas, some with sales-to-listings ratios as tight as 80 to 90 per cent. Nationally, 1997 marked the first year since 1988 that the sales-to-listings ratio hit 50 per cent. The sales-to-listings ratio would remain above 60 per cent from 2001 onward – rising to as high as 68 per cent in 2002.
The decade was not without its obstacles – the high-tech meltdown, a US recession, 9/11, SARS, Mad Cow, a blackout that affected the entire Northeastern seaboard, natural disasters such as ice storms, hurricanes, and forest fires and more recently, the credit crunch south of the border. Given the continuation of sound economic fundamentals, it’s expected that residential real estate markets across the country will continue to experience healthy activity, albeit at a more moderate pace.
RE/MAX is Canada's leading real estate organization with over 17,600 sales associates in more than 650 independently-owned and operated offices. The RE/MAX franchise network is a global real estate system operating in over 65 countries. More than 7,000 independently-owned offices engage nearly 115,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral and asset management.
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Tuesday, February 5, 2008
RE/MAX Agents raise over $4 million
The 2007 donation surpassed the agents’ 2006 contributions by more than 14 per cent. Since 1992, RE/MAX sales associates nationwide have contributed close to $30 million to the cause. The 2007 break-down of contributions saw over $654,000 donated to the BC Children’s Hospital Foundation in Vancouver, over $322,000 raised for the Alberta Children’s Hospital Foundation in Calgary, over $327,000 contributed to the Stollery Children’s Hospital Foundation in Edmonton, over $65,000 towards the Children’s Health and Hospital Foundation of Saskatchewan in Saskatoon and over $150,000 given to the Children’s Hospital Foundation of Manitoba in Winnipeg.
"What many don’t realize is that the corporate and private sectors play a vital role in making miracles possible,” says
RE/MAX realtors generate donations through the RE/MAX Miracle Home Program®, whereby a portion of their commission earned on the purchase or sale of each home is given to Children's Miracle Network affiliated hospitals. Children's Miracle Network supports 14 children's hospitals and foundations across
“It’s amazing what can be accomplished when people work toward a meaningful cause,” says Christine Martysiewicz, Director of Internal and Public Relations, RE/MAX Ontario-Atlantic Canada. “The synergy, commitment and enthusiasm of the RE/MAX network are truly phenomenal. However, what’s more amazing is that the charitable efforts undertaken by our realtors are 100 per cent voluntary. Supporting Children’s Miracle Network is a chance to make a real difference in the lives of local children and families in their own communities. That type of involvement is something that’s been woven into the fabric of the RE/MAX organization since its inception. The way we see it, we don’t just serve and work in these communities, we truly are a part of them, and we care—it’s that simple.”
In
“The outstanding generosity of RE/MAX Associates has helped more than 2.5 million Canadian children in 2007 alone – that’s 1 in 4 kids nationally,” says John Hartman, Chief Operating Officer –
In Canada, the children's hospitals/foundations receiving funding from Children’s Miracle Network are: BC Children's Hospital Foundation in Vancouver, Alberta Children's Hospital Foundation in Calgary, Stollery Children’s Hospital Foundation in Edmonton, Children’s Health and Hospital Foundation of Saskatchewan in Saskatoon, The Children's Hospital Foundation of Manitoba in Winnipeg, SickKids Foundation in Toronto, Children's Health Foundation in London, McMaster Children’s Hospital in Hamilton, Children's Hospital of Eastern Ontario Foundation in Ottawa, Operation Enfant Soleil (St. Justine’s Children’s Hospital, Montreal Children’s Hospital, Centre hospitalier universitaire de Québec (CHUQ) , IWK Health Centre in Halifax, and Janeway Children's Hospital Foundation in St. John's. For more information, visit: www.childrensmiraclenetwork.ca.
RE/MAX is
operating in over 65 countries. More than 7,000 independently-owned offices engage nearly 115,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral and asset management. For more information, visit: www.remax.ca.
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Saturday, February 2, 2008
Some Forecast Notes... Winnipeg in 2008
Information courtesy of Peter Squire and Winnipeg Real Estate News
I have gotten a lot of questions lately about where I think the market is going to go... will it remain strong, balance out, or fall flat? Where the most sensible thing is to hope for a balanced market (if only to give those poor buyers a break!)... it looks like Winnipeg forges into 2008 with strong numbers, and even stronger hopes for another banner year.
I had missed the opportunity to attend our annual forecast breakfast this year due to prior commitments, but I did have the opportunity to speak with Peter Squire of Winnipeg Realtors Association who was a keynote speaker that day. He shared some great insight and information with me that I thought would be helpful to share.
First of all, lets consider statistics. I will share with you what we are looking at for 2008 as far as the forecast is spelled out in stats, and will also touch on last year's stat forecast and what the actual outcome was. Statistics are great because it breaks real estate numbers down to the basics, keeping it simple. Remember these are only forecast numbers, they are based on many different economical factors.
2008 Forecast
The amount of homes for sale: 0 - 2%
Home prices: 10 - 12%
Condo prices: 8 - 10%
Total MLS dollar volume: 12 - 14%
Now, lets look at what the forecast for 2007 was and what the real outcomes were
Forecast Actual
Amount of homes for sale: 0 - 2% 5%
Home prices: 8 - 10% 13%
Condo prices: 10 - 12% 7%
Total MLS dollar volume: 8 - 10% 19%
So we can see that 2007 played out almost better than expected, with the exception of condo sales we more than met our mark. With residential homes still dominating our market at over 74% there is no surprise there. It almost seems that condos in Winnipeg have not quite caught on the way they have in other major Canadian cities. Of course I am sure that will change as anyone can see the construction of new condos in Winnipeg.
Some other interesting points to consider is that consumer confidence and employment remain strong, we are experiencing positive population numbers and household growth, and construction intentions are high (we hit a 20 year high in 2007 for new home construction).
So what does this info mean and how can you apply it to your own personal house hunting experience? Obviously it depends on what category of buyer or seller you fall in. As a buyer, are you an investor, or looking for yourself? And as a seller, are you selling a family home, first time buyer home, investment property...? It is important to know your target market.
If you are an investor, you most of all will find this info useful. For non-investors, this may or may not help you, but the best advice I can give is to examine the numbers from 2007 and see how they came out higher than before... if 2008 will be the same then that means the best and cheapest time to buy is right now, or as soon as you can.
For sellers, right now it doesn't seem you have a lot to worry about.
I have gotten a lot of questions lately about where I think the market is going to go... will it remain strong, balance out, or fall flat? Where the most sensible thing is to hope for a balanced market (if only to give those poor buyers a break!)... it looks like Winnipeg forges into 2008 with strong numbers, and even stronger hopes for another banner year.
I had missed the opportunity to attend our annual forecast breakfast this year due to prior commitments, but I did have the opportunity to speak with Peter Squire of Winnipeg Realtors Association who was a keynote speaker that day. He shared some great insight and information with me that I thought would be helpful to share.
First of all, lets consider statistics. I will share with you what we are looking at for 2008 as far as the forecast is spelled out in stats, and will also touch on last year's stat forecast and what the actual outcome was. Statistics are great because it breaks real estate numbers down to the basics, keeping it simple. Remember these are only forecast numbers, they are based on many different economical factors.
2008 Forecast
The amount of homes for sale: 0 - 2%
Home prices: 10 - 12%
Condo prices: 8 - 10%
Total MLS dollar volume: 12 - 14%
Now, lets look at what the forecast for 2007 was and what the real outcomes were
Forecast Actual
Amount of homes for sale: 0 - 2% 5%
Home prices: 8 - 10% 13%
Condo prices: 10 - 12% 7%
Total MLS dollar volume: 8 - 10% 19%
So we can see that 2007 played out almost better than expected, with the exception of condo sales we more than met our mark. With residential homes still dominating our market at over 74% there is no surprise there. It almost seems that condos in Winnipeg have not quite caught on the way they have in other major Canadian cities. Of course I am sure that will change as anyone can see the construction of new condos in Winnipeg.
Some other interesting points to consider is that consumer confidence and employment remain strong, we are experiencing positive population numbers and household growth, and construction intentions are high (we hit a 20 year high in 2007 for new home construction).
So what does this info mean and how can you apply it to your own personal house hunting experience? Obviously it depends on what category of buyer or seller you fall in. As a buyer, are you an investor, or looking for yourself? And as a seller, are you selling a family home, first time buyer home, investment property...? It is important to know your target market.
If you are an investor, you most of all will find this info useful. For non-investors, this may or may not help you, but the best advice I can give is to examine the numbers from 2007 and see how they came out higher than before... if 2008 will be the same then that means the best and cheapest time to buy is right now, or as soon as you can.
For sellers, right now it doesn't seem you have a lot to worry about.
Tuesday, January 22, 2008
Condos in Winnipeg... the great unknowns and most important details you should know
After the last little while of working with clients looking for condos in Winnipeg, it dawned on me that there are a lot of misconceptions out there regarding the process of purchasing a condo, and how it is different from that of purchasing a home. Below is just some information I have gathered from my experience and perspective. It is in no way a complete guide to condo buying in Winnipeg, but perhaps it is a start to some questions you may have.
Lets start with the basics. Condos differ from houses with their definitions of ownership. In a house you own, as long as you hold complete title to the home, you simply own the whole thing. In a condo, you own completely the unit you live in, but any and all common areas are co-owned by everyone in that condo building or condo project. A hallway, pool, parking lot or courtyard are all common areas because all people who live there have access to them. As a result of the common area aspect, there has to be some money put aside every month to maintain them and put repairs in when things need to be replaced. This is where the idea of condo fees comes in. Certainly this is not a lengthy explanation of condo fees and how they work, but will give you the basic concept. Condo fees are based on a case by case basis and can be anywhere from $100 to $450 monthly, and is not even limited to that amount. Condos by their very nature can be different, some are apartment style, some are townhouse style. Therefore, different condo fee structures apply. The monthly fee that you pay as your condo fee covers the cost of a few different things. Some money is put toward the reserve fund and some for the management of the condo as most condo boards can employ a management company to be in charge with the condo board. Other things that may be included would be maintenance like grass cutting and snow removal. Occasionally things like heat, cable tv, parking, water, etc are included but not always. To be sure about your condo check with the listing form to see what the exact inclusions are. Never ever assume that one condo has the same inclusions as another, in fact it is safer to assume that each is completely different.
Another major fee that could potentially apply to you as a condo owner is something we call a special assessment. It has also been referred to as a cash call. This does not always happen, and in fact could possible never happen in the time you live at that condo. An example of how this could happen is the roof of the condo building needs to be redone, perhaps they take some money from the reserve fund, but if that doesn't cover the cost it will be up to the condo owners to come up with the balance. This can be ANY amount and may mean a one time fee of $1500 or a year fee of $1000 that runs for three years. There are many scenarios that could arise out of a special assessment and it is important to get all the facts you can. The great news about this is that if the condo board knows they will be doing repairs and a special assessment is in the future, this info has to be disclosed to potential purchasers in the 48 hour cooling off period (I will explain the 48 hours below). So as long as the condo board has made the decision it will be disclosed to you and you can decide if it works for you or not. Hopefully you are made aware of any repairs needed before you buy, and not after you move in!
Condo documents, or condo docs as we call them are our information gateway into the runnings of this condo and its board. It includes, but not limited to: by laws, rules, financial statements, status certificate, minutes from board meetings and disclosure statements. This information is valuable. Usually myself and the lawyer will look over the condo docs for you to see where things are, but some buyers like looking through these things as well.
The 48 hour cooling off period. This is put in place for the protection of the buyer's interest. Basically how this works is: The offer you put in on the condo is accepted, as soon as possible the agents will exchange the condo docs and the receiving of those docs is in writing by you the potential buyer. From the time those docs are received the 48 hour cooling off period starts. This is the time to get all the info from the condo docs. If you are happy with everything, then that is great. If you find something in the documents that you are not happy with, like a cash call for example, then you have the right to cancel the purchase of the condo unit. This MUST be done within that 48 hours so make sure to ask the questions that are important to you about the condo docs in that period. Once the 48 hours lapses, and all conditions are satisfied then you have officially purchased the condo! Congratulations!
For any questions on purchasing or selling a condo in Winnipeg, please be sure to contact me!
Lets start with the basics. Condos differ from houses with their definitions of ownership. In a house you own, as long as you hold complete title to the home, you simply own the whole thing. In a condo, you own completely the unit you live in, but any and all common areas are co-owned by everyone in that condo building or condo project. A hallway, pool, parking lot or courtyard are all common areas because all people who live there have access to them. As a result of the common area aspect, there has to be some money put aside every month to maintain them and put repairs in when things need to be replaced. This is where the idea of condo fees comes in. Certainly this is not a lengthy explanation of condo fees and how they work, but will give you the basic concept. Condo fees are based on a case by case basis and can be anywhere from $100 to $450 monthly, and is not even limited to that amount. Condos by their very nature can be different, some are apartment style, some are townhouse style. Therefore, different condo fee structures apply. The monthly fee that you pay as your condo fee covers the cost of a few different things. Some money is put toward the reserve fund and some for the management of the condo as most condo boards can employ a management company to be in charge with the condo board. Other things that may be included would be maintenance like grass cutting and snow removal. Occasionally things like heat, cable tv, parking, water, etc are included but not always. To be sure about your condo check with the listing form to see what the exact inclusions are. Never ever assume that one condo has the same inclusions as another, in fact it is safer to assume that each is completely different.
Another major fee that could potentially apply to you as a condo owner is something we call a special assessment. It has also been referred to as a cash call. This does not always happen, and in fact could possible never happen in the time you live at that condo. An example of how this could happen is the roof of the condo building needs to be redone, perhaps they take some money from the reserve fund, but if that doesn't cover the cost it will be up to the condo owners to come up with the balance. This can be ANY amount and may mean a one time fee of $1500 or a year fee of $1000 that runs for three years. There are many scenarios that could arise out of a special assessment and it is important to get all the facts you can. The great news about this is that if the condo board knows they will be doing repairs and a special assessment is in the future, this info has to be disclosed to potential purchasers in the 48 hour cooling off period (I will explain the 48 hours below). So as long as the condo board has made the decision it will be disclosed to you and you can decide if it works for you or not. Hopefully you are made aware of any repairs needed before you buy, and not after you move in!
Condo documents, or condo docs as we call them are our information gateway into the runnings of this condo and its board. It includes, but not limited to: by laws, rules, financial statements, status certificate, minutes from board meetings and disclosure statements. This information is valuable. Usually myself and the lawyer will look over the condo docs for you to see where things are, but some buyers like looking through these things as well.
The 48 hour cooling off period. This is put in place for the protection of the buyer's interest. Basically how this works is: The offer you put in on the condo is accepted, as soon as possible the agents will exchange the condo docs and the receiving of those docs is in writing by you the potential buyer. From the time those docs are received the 48 hour cooling off period starts. This is the time to get all the info from the condo docs. If you are happy with everything, then that is great. If you find something in the documents that you are not happy with, like a cash call for example, then you have the right to cancel the purchase of the condo unit. This MUST be done within that 48 hours so make sure to ask the questions that are important to you about the condo docs in that period. Once the 48 hours lapses, and all conditions are satisfied then you have officially purchased the condo! Congratulations!
For any questions on purchasing or selling a condo in Winnipeg, please be sure to contact me!
Friday, January 18, 2008
Winnipeg is a Seller's Stage!
Hey fellow bloggers!
Welcome to minus 40 degree weather! One could say at least it is sunny outside right? That is little compensation for some people who have to bear the winter's brunt to go house hunting today. With all those buyers, and not enough houses on the market, there is no wonder it is a seller's market currently in Winnipeg. A seller's market happens for two reasons, lots of buyers, and not enough houses for them. For those interested in buying, it can often be a struggle to get out and see all the best listings before they are all gone. And with the best of listings, buyers are often assured they will be competing against other buyers for that house. It is often a frustrating thing, even for agents who work with their buyers. No one likes to deliver bad news. That is par for the course these days, and is part of the reason Winnipeg is a seller's stage!
With fewer listings on the market than demand calls for, sellers are almost guaranteed a bidding war if they use proper techniques of listing their homes. By that I mean, clean, well cared for, and priced correctly. Sellers will never benefit from over pricing their home. It will just sit there and sit there. Always remember that when you decide you want to sell your home, it is no longer your "home" it is your asset. So if you are thinking of taking the plunge and putting your home up there try to keep those points in mind. Also, if you are selling your home to upgrade and figure you will capture the market in the meantime, keep in mind that you will eventually need to buy something to live in too! On that note, remember to be nice to the buyers looking at your home because eventually you will be one of them. There are lots of tips to creating that sell-able home that captures the market at that perfect turn. Be dedicated to getting it done, take your Realtors advice (because after all that is why you hired them!) and remain focused. Good luck with your sale!
Welcome to minus 40 degree weather! One could say at least it is sunny outside right? That is little compensation for some people who have to bear the winter's brunt to go house hunting today. With all those buyers, and not enough houses on the market, there is no wonder it is a seller's market currently in Winnipeg. A seller's market happens for two reasons, lots of buyers, and not enough houses for them. For those interested in buying, it can often be a struggle to get out and see all the best listings before they are all gone. And with the best of listings, buyers are often assured they will be competing against other buyers for that house. It is often a frustrating thing, even for agents who work with their buyers. No one likes to deliver bad news. That is par for the course these days, and is part of the reason Winnipeg is a seller's stage!
With fewer listings on the market than demand calls for, sellers are almost guaranteed a bidding war if they use proper techniques of listing their homes. By that I mean, clean, well cared for, and priced correctly. Sellers will never benefit from over pricing their home. It will just sit there and sit there. Always remember that when you decide you want to sell your home, it is no longer your "home" it is your asset. So if you are thinking of taking the plunge and putting your home up there try to keep those points in mind. Also, if you are selling your home to upgrade and figure you will capture the market in the meantime, keep in mind that you will eventually need to buy something to live in too! On that note, remember to be nice to the buyers looking at your home because eventually you will be one of them. There are lots of tips to creating that sell-able home that captures the market at that perfect turn. Be dedicated to getting it done, take your Realtors advice (because after all that is why you hired them!) and remain focused. Good luck with your sale!
Wednesday, January 16, 2008
Winnipeg's BEST MLS Year Ever! December 2007
BEST MLS® YEAR EVER
report courtesy of Winnipeg REALTORS
- - -
MLS® Sales at 12,568; Dollar Volume is $2.14 Billion
WINNIPEG - With one month remaining, the Winnipeg real estate market has already surpassed the best annual performance ever with MLS® sales outflanking last year’s record of over 12,300 sales and a dollar volume eclipsing the $1.87 billion mark. The first $2 billion year happened in early November, and with another record month of sales and dollar volume activity in November, year-to-date dollar volume now sits at over $140 million above this new milestone level for Winnipeg. It also appears very likely MLS® sales will reach 13,000 for the first time by year end. In November, there also was a major house sale fetching close to $1.9 million.
For this time of year, it is unusual to see nearly half of the entire MLS® inventory turnover and the equivalent number of sales match the new listings that were entered in the month of November. In a number of MLS® areas throughout the city it is not uncommon to have more sales than new listings so whatever inventory of listings is left at the end of October it is being sold in November. Over 40 % of residential-detached listings sold for above list price.
November MLS® sales are up 7% (880/825) while dollar volume increased 21% ($154.9 million/$127.9 million) when compared to the same month last year. Year-to-date MLS® sales are running over 7% ahead of the same period last year (12,568/11,711) while MLS® dollar volume is up 21% ($2.14 billion/$1.77 billion). Four out of every five listings entered on MLS® this year have sold.
"I sincerely believe this outstanding year of MLS® sales activity which over 1,300 REALTORS® have consummated should clearly be acknowledged as one of the major business highlights of 2007," said Wes Schollenberg, president of the WinnipegREALTORS® Association. "This record level activity has tremendous economic spin-offs for the local economy and numerous ancillary real estate –related businesses benefit. A conservative estimate of additional economic activity based on our MLS® sales this year is around $300 million."
Schollenberg added, "There is no question in my mind while our WinnipegREALTORS® members have been challenged throughout the entire year with unprecedented buyer demand for a limited supply of MLS® listings in many neighbourhoods, they have really stepped up and applied all of their knowledge, experience and available tools to help meet buyers and sellers real estate needs."
Residential-detached sales in November were most pronounced in the $160,000 to $199,999 price range with 23% of total sales. The next busiest price range was the $130,000 to $159,999 range at 15%. In contrast, 35% of all condominium sales in November were over $210,000. This is in part a direct result of newer condominium projects with higher priced units making a notable impact on condominium sales this year.
The average days on market for residential-detached sales in November was 27 days, three days off October’s pace and three days quicker than November 2006. Average days on market for condominium sales was 27 days as well.
Established in 1903, WinnipegREALTORS® is a professional industry association representing 1,400 real estate brokers, salespeople, appraisers, and financial members active in the Greater Winnipeg Area real estate market. Its REALTOR® members adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service® (MLS®) designed exclusively for REALTORS®. WinnipegREALTORS® serves its members by promoting the benefits of an organized real estate profession.
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