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!

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!

Winnipeg's BEST MLS Year Ever! December 2007

BEST MLS® YEAR EVER

report courtesy of Winnipeg REALTORS

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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.