There are potentially dozens of reasons to select a real estate agent. Having one that also happens to be a friend, neighbour or family member is not an uncommon occurrence and that’s why many consumers feel the pressure to choose someone they know.

But many real estate gurus say that’s unwise for a number of reasons. Disagreements could put an end to a valued friendship or perhaps your friend/agent will begin to resent you because of the discount or kick back you’ve requested on their commission. Another possibility is that your agent doesn’t view you as seriously as his other clients and may put in less time house hunting or drumming up buyers. They also may have a more difficult time telling you the truth — that your house isn’t worth what you think it is, for instance. Finally, if you get to a point where it’s time to break up with your realtor/friend how do you do that without any hard feelings?

But for those who feel compelled to retain an agent with whom they’re already comfortable, what happens when you have competing realtors in your life? How do you choose one over the other without offending the unsuccessful candidate? How do you break the news to Cousin Bernie that you’ve decided to go with your sister-in-law Alice?

Let’s look at ways to break it to them gently:

Fictionalize it — You could start by lying. While that’s not always the recommended course of action, sometimes a little white lie is your best line of defense. Imagine telling your neighbour/realtor that you’ve decided to retain your nephew, a rookie real estate agent, due to the fact that your neighbour’s breath could topple the C.N. Tower. Better to bow out gracefully with a wee fib. In this instance, you could take advantage of your nephew’s inexperience by claiming that you’re trying to help out your relative and that’s why you decided to hire him.

Blame your spouse — This strategy is a classic for good reason. By pointing a finger at your better half, you, in effect, tell people that you are being held hostage based on your partner’s choice, however different it may be than yours. The beauty of this game plan is that you end up looking like the sympathetic supporter, unlike your spouse, who is likely viewed as something of a villain.

Be Honest Abe — The truth can hurt but it also sets you free. If you have the strength of character to weather chilly responses and cold shoulders, this is likely a good pick for you. You never have to look over your shoulder or struggle and squirm to remember your white lie when you invariably run into your Aunt Maude at Thanksgiving dinner. This option is a tough one but it’s worth it given the peace of mind it leaves you with.

Pick a Pro over Blood — Because home buying is such an emotionally charged transaction involving big, life-changing amounts of money, the process can be highly volatile and there is little room for mistakes. Giving your best friend’s daughter a break will earn you brownie points for sure, but may not be in your best interest in the long run. Same for hiring a friend or relative who doesn’t work relatively close to your area. Regardless of the relationship, you need a professional who lives, eats and breathes real estate and understands the local market, including everything from schools and shops to local issues and housing inventory.

As much as humans say they love animals, and house pets in particular, they probably don’t love yours and the accompanying clutter, damage and dirt our pets naturally create.

That’s why it’s so important when selling your home to try to remove all signs of animals in the home. Potential buyers don’t want to see scratched up flooring or mounds of dog poo in the yard. They want to envision themselves living there and those unsightly reminders get in the way.

Here are a few suggestions you might want to try when trying to sell your animal-friendly home:

Relocate your critter 

This may be one of the most difficult ideas but it will likely be the most effective. If you have family members or friends who have taken Fluffy previously, perhaps you could call on them again to look after your pet.  This will make the sale of your home much easier as keeping it clean will be a breeze with your pets out of the way.

Go for a walk with your pet 

Removing you, your pets and the rest of your household members during a showing and/or open house is ideal. While you’re at it be sure to clean up all signs of pet ownership. That means make sure the yard is free of animal waste, clean and cover kitty litter boxes, pickup pet toys that are strewn around your home and yard and remove food and water bowls.

Try to avoid moving pets outdoors during showings and open houses. Some buyers want to explore the outdoors as closely as the indoors so banishing your pets to the yard can be a hindrance. With people coming and going from your yard, there’s also a risk your pet might get out. Don’t forget that all pets pose a potential liability hazard with the possibility of biting and scratching.

If finding a home outside of their home is impossible during the showing, try to keep your animals restrained to a cage or container of some kind.

Spit & polish 

This can mean a little or a lot. Did your Doberman chew your wainscoting? Or maybe he liked to pee on a certain corner of carpet? Any which way, damage done to walls, floors, carpets, lawns and even furniture should be repaired before you even think of letting potential buyers in your home.

When it comes to pet smells, only a really devoted animal owner can tolerate the odors that accompany their beloved pets. Get carpets cleaned and treated professionally for urine odors and for stains. If that cannot be done, you may need to replace the carpet or rug.

Yard clean-up 

Just as you’ve done a comprehensive clean inside your home, you need to do the same outside. Pick up any and all mess from the yard that relates to your animals. You will also want to replace damaged sod or fill holes that have been dug.

Sources: www.maxrealestateexposure.com,

It’s difficult to breathe easy if you know your home has asbestos lurking in the attic or basement. But it’s understandable that you might feel anxious knowing your house contains a substance that’s currently thought of as public enemy number one.

Don’t fret or buy into the hype. Vermiculite-containing asbestos has gotten an undeservedly bad rap. It’s true that some Canadian homes have it. It’s true that a mine in Montana is responsible for supplying most of it to North America. But here’s the catch. As long as you don’t touch it, it’s fine.

Vermiculite-containing asbestos will only pose a threat if you are breathing in its fibres. According to Health Canada, as long as asbestos fibres are enclosed or tightly bound in a product such as asbestos siding or floor tiles, there are no significant health risks. However, if
you think otherwise, your level of exposure is what you need to watch.

Look for:
 The concentration of asbestos fibres in the air
 How long you were exposed
 How often
 The size of the asbestos fibres inhaled
 The amount of time since the initial exposure

Commonly found as insulation on basement boilers and pipes and in attics, asbestos was also used in vinyl floor tiles, some glues and linoleum, window caulking, roofing materials, siding material and plaster.

If you learn that your home has asbestos, leave it alone if it’s in good condition. You don’t want to disturb it and cause its fibres to freefall throughout your home. If you find asbestos that is torn or damaged curtail access to that area of your house and keep an eye on its deterioration.
Never try to remove asbestos products yourself. Speak to a trained and qualified asbestos removal or abatement professional. If you are planning to remodel your home and the renovation would disturb the asbestos-containing building material contact a qualified asbestos removal professional first.

The price for laboratory analysis may be worth the peace of mind before any project begins. A quick internet search shows the average cost for an air test is $500.There is plenty of professionals available to choose from.

Typically, an assessment includes a visual inspection of the building for evidence of asbestos, substance samples to identify the type and concentration of asbestos, airborne asbestos analysis to identify asbestos fibres that are in the air and a detailed report on the findings plus a
plan on how to remediate the situation.

For more information visit the Health Canada website 

With more Canadians hitting record levels when it comes to household debt, there’s probably no better time than now to tackle the topic of credit and how you can improve yours.

Credit scores are determined by a complex formula that looks at your income, your debt repayment history, your total approved credit limits, your credit usage levels. The information is crunched into a scoring system that assigns a number of between 300 and 900. This is known as your FICO score. The higher you are on the scale, the less risky you are to a lender. Generally, 680 and higher is good.

Mortgage and credit experts recommend getting a sneak peek at your credit rating yearly or every two years. The main reasons for this are to ensure that the information the credit bureau has is accurate and to make sure you’re not the victim of fraud. Credit rating agencies such as Equifax Canada and TransUnion Canada are typically used to determine scores.

Here’s how you can improve your credit score if you’ve been a little negligent paying your credit cards on time:

1. Pay your bills by their due date, even if it’s the minimum amount. Try setting up automatic payments so you don’t miss a date.
2. Keep your spending well below your credit limit. Even if you pay off your balance every month, maxing out your credit looks bad. Get your limit raised if you’re spending is too high.
3. Make sure you use your credit. An active history is what lenders look for so pull out your plastic every so often.
4. Don’t carry tons of credit cards. Most card holders are unaware that your credit is negatively affected every time a company checks your credit rating in order to issue you new credit.
5. Be wary of having too many credit lines. A number of loans may worry some lenders that you’re desperately seeking credit everywhere and that you won’t be able to pay the debt off.
6. People with exceptionally poor credit need to re-establish their credit by getting a secured credit card. These cards are similar to gift cards as you pay the credit company upfront and then make purchases on it until the balance depletes.

There are a number of online resources that assist Canadians with resolving their financial challenges, better managing their cash flow and improving their credit rating. Try BDO’s online quiz to determine your financial health.

1. Are you financially stable? Have you been working in the same industry for one year? Have you been self-employed for more than two years? Do you have some savings for your down payment
2. Ready to shoulder the costs of home ownership? Remember that in addition to mortgage payments there are repairs, maintenance and unexpected costs. Do you have the time and money to devote to home maintenance? What if your furnace dies? How much is a typical water and sewer bill? What do you mean, there’s dry rot in the attic?
3. How much is too much? Add your debt payments to your household expenses. The Canadian Mortgage and Housing Corporation (CMHC) recommend your monthly housing costs should not exceed 32 per cent of your gross income.
4. Your credit rating. Before getting a mortgage, lenders will want to see how well you’ve paid past debts and bills. If you have no credit rating, start building one. Apply for a credit card with a good interest rate, make small purchases and pay the bill in full when it comes in.
5. Get pre-approved for a mortgage.
6. Understand your terms. It’s a good idea to research mortgage terminology prior to meeting with a mortgage specialist so you understand commonly used words and phrases such as variable rates and amortization. Ask friends or family for help or go online.
7. Find a realtor. Ask trusted friends or family members. The other option is to select a realtor who specializes in a certain area or type of real estate such as first-time home buyers or condos. If that’s not doable, take notice of the for sale signs in the neighbourhood you want to live. Whose name continues to pop up again and again?
8. Figure out where you want to live. Do you want to be near Go Transit, highways, schools or are you looking to live near restaurants and nightlife?
9. What kind of a house are you looking for? Know the difference between a stacked townhouse, a semi-detached house and a duplex. Bone up on the language of buying.
10. Speak to a lawyer. Know your closing costs. Get a quote from two or three lawyers on what fee they charge and what they bill for disbursements. Closing costs can also include land transfer tax, mortgage insurance and a home inspection. Budget 3 to 4 per cent of the purchase price for closing costs.

You’ve likely seen a sign that advertises exclusive real estate offerings in your neighbourhood and wondered how is that type of sale different than any regular old listing?

An exclusive listing means a seller is giving the agent and their brokerage firm exclusive or special access to find a buyer for their home. With this type of arrangement only the listing agent or agents with the brokerage firm can present offers on your home because only the listing agent is entitled to the commission.

When you sign such an agreement with the listing realtor, it usually outlines a time frame in which the realtor has to sell your home. Once the time has passed, the seller can list their home on the Multiple Listings Service (MLS), which is the real estate listing service that is open to all real estate agents.

So why would a seller want an exclusive listing if it sets limits on the number of people who would potentially see your home? Isn’t the point of a sale to advertise the offering far and wide with the hope of generating a high level of interest, which in turn drives up the price of the home?

That depends. While listing your home on the MLS increases the number of eyeballs who will see your home, the point of an exclusive listing for many is staging a more private sale. For a multitude of reasons – divorce, job loss or perhaps sellers who are high profile members of the community – some sellers don’t want it widely broadcasted that they are planning to make a move.

It’s also believed that exclusive listings can elicit better quality offers as often realtors who contract exclusive listings do so because they have select buyers in mind.

Finally, in some cases, commissions on these types of sales are sometimes lower as the real estate professional does not have to pay the MLS fees. This can bode well for both the seller and buyer.

Buying a home with even a wee bit of remorse is about as certain as death and taxes. It happens to us all unless, of course, you have money to burn and you acquire homes like the rest of us buy coffee.

Unfortunately, that’s not the case for most people. We invariably suffer some level of doubt, fear and worry once we’ve signed on the dotted line. Is the house too big or small for our needs? Did we pay too much? Is something major wrong with it? Will we get along with the neighbours? Will the house be a happy home? What if we see something we like better?

Our anxieties and fears emanate from the fact that purchasing a house is a large and life-changing event. But there are ways to calm your concerns.

Before you buy do your homework. Ensure that the property and neighbourhood meet your needs. Hire the right realtor. Ask questions and don’t be afraid to air your concerns with your agent. Determine your price and stick to it. Think about the home’s resale value.

So let’s say you’ve done all that and now you’re simply waiting till you get possession. And still buyer’s remorse haunts you. Put down the Xanax because there are healthier ways to deal with your angst. Here are some suggestions:

Check Your List

Before setting out to purchase your home you probably made up a list, either in your mind or on paper, of wants and needs. Review this list now. How does your house stack up? What attributes made you select this home? Did finding this home take a lot of showings? It’s important that you analyze the facts as this may help you discover why you’re now feeling remorseful. Perhaps you’d feel this way regardless of the house.

Stop Talking About It

Initially you were pumped so you told anyone who’d listen and that, of course, means friends, family and neighbours. But often your closest allies will be your harshest critics, questioning how much you paid for the house or the neighbourhood you selected or even the style of home you picked. You’re best to stop telling people about the house. And if you can, tune out the questions and criticism that comes your way.

At the same time, you may have moved to a certain neighbourhood because it’s near family and good friends. Seek out those individuals who will support and encourage your decision. Ask them to remind you about the positive things you had to say just after buying the house.

Freeze Further House Hunting

Do this immediately. This will only cause you more self-doubt and pain.

Your Realtor Can Help

It’s normal for questions, doubts and fears to crop up that you don’t have the answers to. Unanswered questions, especially for first-time home buyers, can turn a mole hill into a mountain, prompting more worry and anxiety. Your realtor can help ease your panic. Remember, it’s their job to help you through the anxiety-provoking process of buying a home.

Make It Your Own

Once you’re in the house, put your own stamp on it by painting, renovating and decorating in your inimitable style. Your remorse is more likely to fade after you’ve transformed your new home in colours and ways that suit only you.

Don’t Obsess

The stress of purchasing a home that you now regret can be all-encompassing. Try to remember that life is more than your house. Maintain your exercise and fitness routines, your time with friends and family, your leisure activities. Hang out with the kids and remember that a move affects them too. How are your children doing? Do they like their new school? Take time to travel or get away for a weekend. Don’t let the house overwhelm you.

As homeowners or wannabe homeowners, we’re always looking at ways to save a few dollars here and there.

Did you know the Canada Mortgage and Housing Corporation (CMHC) offers up to 25 per cent back on the CMHC mortgage loan insurance premium when you purchase a green home or make energy-saving improvements to an already existing home?

And that’s a good thing because not only do you save on your insurance but you also end up saving in the long run with lower energy bills. In Canada, running our homes is an expensive proposition, accounting for more than 16 per cent of the total energy consumed. Not only are energy-efficient homes comfier and healthier, they also serve to reduce greenhouse gas emissions and the cost of running your home. Depending on the level of energy efficiency achieved, you could be entitled to a premium refund of either 15 or 25 per cent.

Most new homes qualify for the top refund as they’re generally built under a CMHC-eligible, green building standard. All other homes are assessed using the NRCan EnerGuide Rating System (ERS).

If you are purchasing a condo know that units built to the LEED Canada New Construction standard automatically qualify for a 15 per cent refund. If the building is designed to be either 20 per cent more energy efficient than compliance with the applicable building code, you may be eligible for a 15 per cent refund. If the building is 40 per cent more efficient, you could get a 25 per cent refund.

If you decide to buy and renovate your home, it must be assessed by a Natural Resources Canada (NRCan) qualified energy advisor prior to and after your green home improvements are made. The partial premium refund is based on the level of energy efficiency achieved.

Applications must be submitted within 24 months of the closing date of the mortgage and the supporting energy efficiency documentation must be no more than five years old. NRCan is introducing updates to the EnerGuide rating scale.

For details about the program, including a list of eligible building standards and specifics on the required EnerGuide rating, check out CMHC’s website at www.cmhc.ca/greenhome.

Source: www.cmhc.ca

By virtue of its name alone, a bully offer doesn’t sound particularly appealing.

After all, who likes a bully?

In fact, just last month, the Ontario Real Estate Association (OREA) proposed that the province place a ban on the practice of bully offers.

Bully offers, also known as pre-emptive offers, are submitted ahead of the seller’s scheduled offer date. They are typically valid for a short time frame, a move that is intended to circumvent competition from other potential buyers and to place pressure on the sellers.

OREA believes the practice crowds out other buyers, making the process unfair and that it puts undue stress on sellers. The recommendation is one of 28 submitted to the province, which is currently reviewing the Real Estate and Business Brokers Act.

The main reason why buyers make bully offers is to avoid other offers.  The bully buyer is hoping that interest will be relatively low early in the listing timeline before consumers become aware of the property. They jump in with their offer and the buyer just might take it. And even if other buyers are interested the bully offer is hoping they won’t have time to pull together financing or get a home inspection.

Should you accept a bully offer? That depends. If the price is right, why not? That means no more home showings and rushing home from work to stack dirty dishes in the dishwasher or stash unsightly items out of sight. If you are happy with the price, want to be done with the process of selling your home and tend to be a straightforward-thinking seller, this may be for you.

Bear in mind, that for a bully offer to be especially attractive, there should be no conditions. So sellers should expect a firm offer with a sizable deposit. It’s not a bad idea to consider ahead of time what price would prompt you to close the deal.

If, however, you are often uncertain and regretful, this move may not be the one to take. You could end up wringing your hands over what kinds of offers you would have received on offer night. This shoulda-coulda-woulda scenario may haunt you and your finances for months and years. But know that there is also a down side to holding out and that is that, just maybe, that bully offer is your best bet in terms of price and conditions.

Sources: www.cbc.ca

As Canadians, we’re known as a nation of polite, peace-loving, funny folks. Here’s another adjective to add to the list: indebted.

And while that may not prompt you to lose any sleep since debt is an ordinary fact of modern life, our numbers are climbing to levels that some might call dangerous. Recent data from Statistics Canada shows household debt at a record high of 178.5 per cent in the fourth quarter of last year. To put this in perspective, the ratio of household debt to personal disposable income was 66 per cent in 1980. Today’s numbers mean there is nearly $1.79 in credit market debt for every dollar of disposable income.

Our dependence on debt to pay for homes, post-secondary educations and other high-priced items has also affected the reverse mortgage market, sending this debt through the roof. According to Better Dwelling, reverse mortgage debt is growing at ten times the annual pace of regular mortgage debt and has almost tripled in the last five years. As of January, reverse mortgage debt stood at $3.51 billion, a 30.44 per cent hike when compared to a year ago.

In theory, reverse mortgages sound like a great scheme. Home owners 55 and older can borrow from the equity they’ve built in their own homes, either as a lump sum or in scheduled payments. Many think this type of loan is similar to a home equity line of credit (HELOC) and it kind of is but with one very significant difference: you don’t have to pay it back until you die, default or sell.

There is another significant difference: Unlike HELOCs, the interest rate on reverse mortgage debt is much higher. There is no need to worry about eating up the equity in your home if you have no plans to leave your worldly goods to anyone. But if you have children, a loved one or perhaps a charity in mind, you may need to consider other options.

The other consideration to take into account is the fact that interest rates are currently so low they have nowhere to go but up, according to Better Dwelling. So imagine you have this increasingly expensive debt as interest rates start to rise, costing you more of your equity with each uptick. At the same time, you’re likely enjoying your retirement on a fixed income, which means you have limited earnings. This could eat into your equity quicker than you think.

On the plus side, reverse mortgage money is tax free, which means it won’t impact government-based pensions and benefits, according to Wealth Professional. For some retirees, taking a reverse mortgage makes sense as they can delay enrolling in the Canada Pension Plan (CPP) or Old Age Security (OAS) until they’re 70, which means their benefits will be about 142 per cent of what they would be at 65.

Sources: www.cbc.ca, www.betterdwelling.com, www.wealthprofessional.ca, www.150statcan.gc.ca