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Archive for the ‘Selling a Home’ Category

Are Home Inspections Worth It?

Saturday, June 17th, 2017

There was a time not too long ago when homes were bought and sold without the assistance of a professional home inspection. Your trustworthy and handy brother-in-law kicked the tires, so to speak, and his opinion was pretty much all that mattered.

Then all that changed in the ‘90s when home inspections became more and more common, to the point where the majority of Ontario resale home buyers (nearly 65 per cent) hire an inspector.  But Toronto’s red hot real estate market saw the trend change again as buyers skipped inspections to present clean, condition-free offers in an effort to win bidding wars. In this market, homes come with a pre-list home inspection obtained by the seller, which meant a significant drop in the number of home inspections overall.

There has been a good deal of controversy swirling around the profession. Critics say its lack of regulation means unqualified inspectors can set up shop and perform inspections with little expertise. And up until now, home buyers had little recourse if a problem was later discovered that a home inspector should have red flagged.

In April, the Ontario government finally passed a law that will impose new rules on the profession. The Putting Consumers First Act will require home inspectors to be licensed, carry insurance and abide by a code of ethics. The legislation will introduce minimum standards for home inspection reports, contracts and disclosures. Inspectors who breach the code of ethics could face fines of up to $25,000.

According to the Toronto Star, there are an estimated 1,500 home inspectors in Ontario charging between $350 and $600 for a home inspection.

So is spending a few hundred dollars for a home inspection worth it?

That depends.  Many believe it’s a relatively small investment given the cost of real estate. Home inspectors are especially useful for first-time home buyers, who know little about the process. A home inspection can help calm the nerves of a buyer who has no idea what shape the roof is in, where the water shutoff is or how to replace a furnace filter.

But if you’ve bought a few homes in your life, you can probably make due with a Seller Property Information Statement instead. Also known as an SPIS, these optional forms protect the seller down the road should the new owner try to pin a problem on the seller.  Filling one out also demonstrates to buyers that you’re being honest and open because you’re willing to disclose defects or issues.

The SPIS is a two-page document that covers questions regarding zoning, taxes and encroachments. Questions are asked about soil contamination, flooding, oil tanks and grow houses. Other questions focus on moisture problems, types of insulation and renovations or addition made to the house.

So get a home inspection if you’re new to real estate of feeling a bit leery about a property. If you know what to look for, skip the inspection and request an SPIS.

8 Telltale Signs it’s Time to Leave Your Home

Friday, June 9th, 2017

Leaving behind the family nest is never easy.

But there are circumstances when the need for a new nest becomes quite apparent. Let’s look at signs that it’s time for a move:

There’s no room

Space is tight and you’re practically tripping over each other. Simple everyday chores turn into a big production as you reorganize your possessions just so you can find a butter knife.   Maybe you’ve had another child or maybe dad has moved in, making space all that much more precious. It’s probably time for a bigger place.

Too much space

When you call your partner’s name do you hear an echo? As empty nesters, leaving behind the family home with its many years of memories is never easy. But when you think about the time, money and effort spent on maintaining a large, empty home, it seems kind of wasteful. Think about all the other activities and pastimes you could be enjoying by moving to a smaller home.

Better schools

It’s not uncommon for families to move into neighbourhoods that are known for having good schools. The education of children is high on the priority list for many households. If you think your son or daughter isn’t getting a top-grade education, then maybe it’s time to find a neighbourhood that’s known for its high marks.

Is your neighbourhood safe and sound?

Safety is of paramount concern so if you feel your neighbourhood falls short on this count, you might need to consider moving. Are your neighbours noisy and disruptive? Do dogs bark at all hours? Time to get out.

The suburbs

Lifelong city dwellers may find it hard to imagine, but sometimes a slower pace is welcome. You’re bound to get more real estate bang for your buck in the suburbs with comparably greater square footage and outdoor space in addition to a lower cost of living and increased safety.

Time to upgrade

Maybe you want an extra bathroom, more storage space, a newer kitchen or perhaps it’s amenities such as an in ground pool, bigger yard or garage that you’re after? Rather than renovate, it may actually be more practical to move.

Downsizing

Do your bills cause you grief? Are you tired of being short on cash in order to pay your mortgage, utility and repair bills? It might be time to move to a cheaper home. Just think of the things you can do the equity you’ve built up.

Shorter commute

Tired of long drives to and from work? Does your Monday to Friday routine feel like a miserable treadmill from which you can’t break free? You might want to think about moving closer to work. If your job prospects are good, why not consider a shorter commute.

Ontario’s Fair Housing Plan

Thursday, May 11th, 2017

The Ontario government introduced a housing plan late last month that aims to protect home buyers and renters from being priced out of the turbo-charged Toronto real estate market.

The 16-point plan targets actions that are expected to cool the city’s overheated market with a comprehensive set of measures designed to help more people find affordable homes, increase supply, protect buyers and renters and bring stability to the real estate market.

Included in Ontario’s Fair Housing Plan is a 15 per cent foreign buyers’ tax, similar to the one introduced last year in Vancouver. The tax in Ontario will be levied against all foreign-bought properties within the Greater Golden Horseshoe, as they too have been affected by unprecedented price growth.

Home buyers should like the plan as it is expected to cool the housing market, which has experienced double-digit gains in the past few years. In April the average Toronto house price hit nearly $921,000, almost 25 per cent more than a year ago.

Renters may like it even more so as rent control will be expanded to buildings constructed after 1991, which were previously not covered by rules. Given the city’s tiny vacancy rate – 1.3 per cent, the lowest in 12 years — some landlords were commanding astronomically high rents, even doubling rents once a lease came due.

Ontario’s Fair Housing Plan includes additional measures, such as introducing a targeted $125-million, five-year program to encourage the construction of new purpose-built rental apartment buildings by rebating a portion of development charges.

The government will also work to better understand and tackle practices that may be contributing to tax avoidance and excessive speculation in the housing market, such as “paper flipping” — a practice that includes  entering into a contractual agreement to buy a residential unit and assigning it to another person prior to closing.

The province is also introducing legislation that will allow Toronto and potentially other municipalities to introduce vacancy taxes.

The Fair Housing Plan will also include a new Housing Supply Team of dedicated provincial employees to identify barriers to specific housing development projects and work with developers and municipalities to find solutions.

Toronto: Home to World’s Fastest Growth in House Prices

Thursday, May 11th, 2017

 

Toronto is number one for many reasons. The New York Times deems it a first rate travel destination. It’s also pretty good on the scales of diversity and gender equality. And – no surprise here – it earns high marks as one of the best cities in the world to live.

That could be why it also is number one when it comes to having the world’s fastest pace of house price growth.

According to research conducted by analytics firm CoreLogic, Canada’s largest city beat out Sydney, New York, even Tokyo in terms of how quickly its house prices escalated last year.

According to the research which was carried out for The Daily Telegraph in Australia, Toronto’s median house price climbed 19 per cent in 2016, surpassing next-in-line Sydney at 18.4 per cent and third-place Vancouver, where house prices rose by 14 per cent.

According to the Huffington Post, the survey measures median house prices, which is a different measurement than the average figures used by real estate boards in Canada. And average prices show even stronger growth in the GTA with a year over year hike of nearly 28 per cent in February to almost $876,000.

Naturally, these figures are not sustainable. House prices will begin to slow. The Financial Accountability Office of Ontario (FAO) is forecasting slightly lower house prices over the next three years and the strong possibility of a market correction.

The FAO envisions a correction that could see house prices decline by 10 per cent within three years or a worst-case scenario of a 20 per cent drop, says the Huffington Post.

In its report, the FAO expects “a leveling out in residential investment over the next several years, consistent with a modest decline in housing prices,” but “a sharper housing price correction remains a significant risk, both for the economy and the province’s tax revenues.”

Average Toronto house price hits $921,000

Thursday, May 11th, 2017

Here’s a strange anomaly for you: Even though more homes were for sale this April compared to one year ago, home prices were up by as much as 24.5 per cent that month compared to a year earlier.

If you’re still in the market for a house you may have noticed that significantly more homes – 33.6 per cent to be exact — were for sale last month compared to April of 2016. But the greater supply did little to stem the upward flow of the city’s house prices, according to figures released by the Toronto Real Estate Board (TREB).

Based on TREB data, the average cost of a home in Toronto climbed to nearly $921,000 last month, up almost $200,000 from last April’s average house price of $739,762.

April also saw sales nudge down by 3.2 per cent compared to a year ago, a sign, say some, that the Toronto real estate market is finally cooling off.

Any which way you look at it, more listings will inevitably signal a positive note for the Toronto real estate market, says a TREB economist.

“It was encouraging to see a very strong year-over-year increase in new listings,” said Jason Mercer, director of market analysis. “If new listings growth continues to outpace sales growth moving forward, we will start to see more balanced market conditions.”

Still, the board is not expecting any downturns in home prices. In fact, Mercer says the spring and summer months will see the growth of house prices well above the rate of inflation.

A greater housing supply could be a reaction to the market’s big year-over-year price jumps and the province’s newly implemented Fair Housing Plan, though it’s too early to tell.

Another indicator that the market is cooling showed in sales of detached homes, which slipped slightly from March to $1,205,262 from $1,214,422. Semi-detached homes also dipped a bit last month, while condo prices increased by 4.3 per cent.

Buying and Selling in January? Why not

Friday, December 9th, 2016

January is the month of new beginnings, warm-weather winter holidays, winter sports and cutting back just a little on those items that aren’t so good for us.

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January is also a good month for real estate activity, despite what you’ve heard. If you’re thinking of selling or buying a home in 2017, you may want to give January a try.  In markets like Toronto and Vancouver virtually any month is a good month to buy or sell. Real estate activity naturally slows in late December and very early January. But by the end of January’s first week it’s back to business as usual.

One big reason you want to sell your house in January is because you will have less competition. What does that mean? You can likely command a higher sale price thanks to fewer homes on the market.

On the flip side, for buyers, your odds of getting into a bidding war with multiple buyers are reduced because many purchasers are dealing with post-holiday debt.

Gone are the days when buyers waited for warmer temperatures because that’s the time when the majority of homes became available. Buyers today are more tech savvy than ever and as a result they can view real estate around the clock on their phones, devices and computers. Why wait for spring?

Keep in mind, too, that as a buyer your realtor will be able to really focus in on your needs, compared to the spring market when the market is saturated with buyers looking to purchase a home and real estate agents are juggling a heavy load.

If you’re selling, you know those buyers trotting through your house and yard are serious. No one braves the bitter cold and snow, donning boots and parkas as they schlep from house to house as a fun winter pastime.

Try to keep your exterior tidy and, if possible, decorate with outdoor arrangements and seasonal greenery. Clear ice and snow off walkways and steps and make sure your property is well lit. Also be sure to provide pool reports and try to provide photos of what your house looks like in spring and summer.

While it may be counterintuitive, it’s said that homes actually sell quicker in winter. Low inventory may be the reason. In addition, buyers tend to be more motivated and not as willing to slog from home to home to home.

Handling Bad Neighbours When Selling Your Home

Wednesday, November 2nd, 2016

There’s that saying about how you can pick your friends, but family members you’re stuck with. Well, the same goes for neighbours.

But if you’re lucky, you have a flawless neighbour. The kind of person who bakes cakes for you, keeps a watchful eye on any troublesome activity and who doesn’t at all mind picking up bits of garbage and debris that get strewn on sidewalks and lawns up and down your street.

Fat chance, right? Likely your issues with neighbours lean toward the dark side and if you have a house to sell, that makes it all the more challenging. But there are ways to deal with annoying neighbours. Here’s how:

Overgrown Lawn

Living next door to a neighbour who has an unkempt property can be taxing. Toronto has bylaws that determine standards of acceptability when it comes to how tall grass can grow before it requires cutting and what types of items can be left lying around outdoors. You may need to get the city involved if you’ve tried gentler suggestions to get your neighbour to clean up.

If you’ve never broached the issue, you may want to give it a try. If you have time or are so inclined, offer to help your neighbour clean up. If you don’t have time and your neighbour is strapped for cash, you may want to pay or help pay for a lawn and garden service to spruce up the yard, at least until your home is sold.

Hoarder

Thanks to reality TV, we all know way more than we need to about people who have a psychological compulsion to accumulate junk. If your neighbour is a hoarder, abandoned vehicles, tires, old appliances may decorate their front lawn.  This will be offputting to potential buyers. To help you sell sooner, maybe you can offer to buy your neighbour an inexpensive shed to store all his treasures. While you’re at it, help your neighbour clear out the junk. Your hands will get dirty and you’ll be out a few bucks, but at least you’ll be able to realize top dollar for your home. Same theory applies for abandoned vehicles. Offer to pay the rental of a garage just to get the abandoned car out of sight.

Noisy, Unbearable or Nosy Neighbours

They are all detestable in their own special way. The noisy neighbour should be told in the nicest of ways to keep it down. Maybe they have no clue that their volume is too loud. If that doesn’t work, you could try contacting the city. The unbearable neighbour is a boor who can’t see beyond his nose. He doesn’t understand why people are offended by the beer fridge on his front porch or why neighbours suggest he wear shorts and a t-shirt instead of a thong when doing yard work. These folks can be difficult to reason with so they require a deft touch and diplomacy. The nosy neighbour should be curbed, if at all possible, before she gets to prospective buyers. Tell her that it is your realtor’s job to speak with potential buyers and if she needs to share information with them she should do so through your agent.

Two women looking over fence

Barking Dogs

Besides the fact that noise bylaws generally address excessive barking issues, it’s probably a good idea to have a chat with your neighbour if their canine yaps too much. Tell them you fear their dog’s excessive barking will make your house difficult to sell. Ask the neighbour if they can arrange to keep the dog in their home during showings. If that doesn’t work get your child or a neighborhood kid to walk the dog during showings. If your neighbour is being disagreeable, offer to pay for the services of a dog walker.

You can’t choose your neighbours but you can choose how to deal with them. Keep a cool head and a compassionate heart and never take their odd behaviour as a personal insult. It isn’t. If you’re not sure where to turn, call the city. They should be able to direct you.

Should I Buy or Should I Sell First?

Friday, October 21st, 2016

The real estate market offers consumers a laundry list of questions, decisions and quandaries, some large, some small. Perhaps one of the first such that springs to mind for the home buyer is the not-so-simple question of should you sell first or buy first.

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How you approach this issue depends on a number of factors. Should you buy before selling, your main consideration has to be whether or not you can afford to carry two properties should your existing house sit on the market for an extended period.

A second, though equally compelling factor, centres on how active the real estate market is in the area in which you’re buying and selling. The GTA’s very active market has prompted something of a reversal in the traditional approach which dictated that you sell your home first before shopping for another. This turnaround has occurred thanks to the speed with which homes are being sold.

Naturally, there are pros and cons to either choice. Let’s take a look at both options:

Buy First:

There’s nothing like shopping for a new home. Each dwelling offers endless possibilities and it’s important to hold out for those must-haves on your list. Without a closing date hanging over your head, this makes the house-hunting process all the more enjoyable. If your offer is unsuccessful, you can wait it out until the next perfect home comes along.

But the downside to buying first is that you could end up with two homes. Can you swing two mortgage payments in addition to the other expenses associated with owning two homes? That is a consideration you need to address before shopping for a new house.

While you can protect yourself by making your offer conditional on the sale of your current home that would be a tough sell especially in Toronto’s overheated market.

The final consideration is that buying first may force you to sell below true market value because you feel pressured to meet the closing date on the house you bought.

Sell First:

As mentioned, this was the traditional approach, when homes sat on the market for weeks and sometimes months.

Perhaps one of the biggest pluses to selling first is that it gives you a better idea of what you can afford for your next home. It also automatically removes any risk of you owning two homes at the same time.

The disadvantage, of course, is that you may feel under the gun to buy a house in order to accommodate your closing date. That’s never a good strategy and can result in you paying more than you should have for a home you’re not crazy about. One way around this is to seek a closing date that is longer than the usual 60 or 90 days. That way, you have more time to find your dream home. Another less desirable option is to rent until you find your dream house.

Either way, it’s wise to always have a plan in place should you find yourself with two houses or needing to bunk temporarily with family or friends.

Window of Opportunity for You and Your Home

Friday, July 15th, 2016

If it’s true that windows are like the eyes of a house, then it’s time to take those peepers a little more seriously.

At Freeman Real Estate, we’re a bit obsessive about windows and eaves, so much so, in fact, that we’re offering a 20 per cent discount on window and eaves trough cleaning when services are purchased through Maple Window & Eaves Cleaning.Image result for cleaning windows

“Windows really lend character and aesthetics to a home,” says Elden Freeman, president of Freeman Real Estate.”And while their shape, size and colour all contributes to the overall appeal of a home’s exterior, one of the easiest and cheapest things a homeowner can do to improve the look of their house both inside and out is to clean their windows.”

The FreemanTeam, which comprises more than 30 full-time realtors, is sponsoring the discount offer, which expires July 31, 2016. Ranked number one for real estate services in midtown/downtown, according to sales data from the Toronto Real Estate Board, the acclaimed real estate team is co-headed by broker Daniel Freeman and broker of record Elden Freeman.

The family-run boutique realtor has been a fixture in Toronto real estate since 1972 and is part of an exclusive community as one of a small number of family-owned and operated brokerages in Toronto.

The FreemanTeam offers a different approach to the Toronto real estate market, specializing in the unique homes, character properties, and condo developments that make up the city’s downtown, midtown, and uptown areas.

The team’s style is distinctly urban in flavour, and its team of professionals are in tune with the diverse lifestyles and opportunities that make up Toronto’s most colourful communities in the core of Canada’s largest city.

Call 647-222-5678 or visit www.maplewindowcleaning.com to schedule an appointment. The discount is available only when doing both window and eaves trough cleaning to your home.

Brexit & Canadian Real Estate

Wednesday, July 13th, 2016

Instability in the UK in the wake of the recent Brexit vote could actually crank up the heat on Toronto’s real estate market, say experts.

The uncertainty in global markets thanks to England’s decision to leave the European Union could serve to fuel Canada’s red-hot housing market because interest rates will likely remain low, according to BMO Nesbitt Burns.

“In that event, the Fed will remain on ice even longer and Canadian rates will again probe all-time lows, keeping mortgage rates at an extremely low ebb and thus further fanning the flames in the domestic housing market,” said BMO chief economist Douglas Porter and senior economist Robert Kavcic.

The pair issued the warning in their latest report, which dealt with the various factors driving the out-of-control price increases in Vancouver and Toronto.

Brexit could be good news for those interested in investing.  According to Mortgage Broker News, there is a phenomenal amount of capital looking for commercial real estate and those foreign investors think an investment in Canadian real estate is a sure thing. Expect foreign investment in Vancouver and Toronto to continue.

As for how Brexit will impact mortgage rates, Toronto’s mortgage planner David Larock suspects the vote would not have any damaging effects on Canadian borrowers, at least not for the foreseeable future.

“Over the longer term, while the Brexit heightens global financial risks and raises the potential for increased volatility in financial markets, any related flare ups should trigger a capital flight to safety that would be expected to put downward pressure on our bond yields and therefore our mortgage rates,” the analyst wrote.

Given the state of Canada’s economy, which the Bank of Canada warned will push the country back into a recession in the second quarter, it’s very likely interest rates will remain at historically low levels.

“As we’ve grown to expect, rock bottom interest rates are expected to keep mortgage lenders busy for the foreseeable future,” wrote Sam Bourgi at www.canadianmortgages.ca

 

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Toronto Real Estate Board. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.