I informed my clients of my suspicions, but told them not to be too alarmed… we can have the house inspected by a certified/registered house inspector, and also have environmental testing done, and they could make an informed decision based on the outcome of these inspections on whether or not they wanted to proceed. I informed them of the potential dangers and health hazards, and also had them sign a waiver that they were aware of the situation.

In this instance, it was determined that the grow house was only used for a short period, (only a few months) and there was no permanent damage, and my clients proceeded and bought the property, and are still living there today.

What is a Marijuana Grow Operation?

Marijuana grow operations can occur in every range of home available, from a detached in a moderately priced neighbourhood, to large homes in a multi million dollar neighbourhood, and even in condo apartments. They can be in homes located in residential, commercial, industrial or rural areas. These homes are usually very well maintained and do not appear out of place, and in fact, look quite ordinary on the outside.

However, the inside of these properties have been altered significantly to accommodate the grow operation, and usually these alterations to the electrical and heating systems are unsafe and not up to code. These electrical and plumbing modifications are required in order for the hybrid plants to grow and flourish and produce a high potency marijuana. These modifications make these homes unsafe for human occupancy because of serious hazards from mould, structures that have been compromised, and from chemical residue.

It is therefore very important that you are aware of certain things in the house, that can alert you to the possibility that the property was used for illegal purposes, and that it was used as a grow house. If you suspect the home you are contemplating buying was a grow house, call your local police department… they usually have a list of these properties and can potentially verify your suspicions.

Some things that can possibly identify a grow op.

1. The basement floor has recently been painted (usually battleship grey)

2. Check the joists in the basement where holes have been drilled to allow the wires to feed across the basement

3. Check for condensation around the windows

4. Strange smell or odour coming from the house

5. Unusual number of electrical wires leading from the house

6. Infrequent activity from the occupants who don`t appear to have regular jobs

7. Expensive cars in the driveway

8. Children`s toys left around front yard, but no children are seen

9. House has lights on for very long period of time, and often during the night

10. Unusual number of roof vents

11. Lack of snow on roofs in winter

12. No communication with the neighbours

13. Dark window converings

14. Numerous garden hoses, soil and pots around the house, with garden hoses running from doors or windows

15. On garbage days, there is never any garbage at the curb

16. Appears to be vacant, and yard poorly kept

17. House is usually vacant when listed for sale.

18. Check the previous sold history of the house… if it sold about a year before the current listing date, that could also be a clue.

How to detect a Marijuana grow operation when purchasing a home.

When purchasing a home you suspect may have been used for illegal purposes, it is important to have the home thoroughly inspected. A home inspector can point out certain visible things and can also identify any mould where visible. If you can visibly see mould, then it potentially could also be behind the drywall and spread throughout the house, which can be a serious health hazard leading to long term conditions.

A thorough environmental assessment should also be conducted including spore testing. These comprehensive tests will also identify any hidden pollution and mould levels in the home as well as the air quality.

If you suspect a property is being used as a grow operation, or see a property with many wires that may have bypassed the electrical meter, contact the police in your area. Also, speak with the neighbours to see if they have any knowledge of the prior occupants.

Image Source = Jason Edward Scott Bain

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Think we’re splitting hairs? The words “Client” and “Customer” and the way they relate to the REALTOR® as individuals make a tremendous difference in the types and level of service you receive. After you read why, you’ll know absolutely whether you want to be one or the other.

First, let’s start with a little history. REALTORS® have always worked with home Sellers to list their homes for sale on the market. Along with this service comes the responsibility to advertise the homes, network with other REALTORS® to find a Buyer, negotiate the sales contract and guide the Sellers to successful closings. Because of the time and expenses incurred by the sales representative and broker which will not be reimbursed until the closing of the home, Sellers have always been required to sign a listing contract. This contract enables the sales representative/broker enough time to properly market the property, find a Buyer, negotiate a contract and get the property to closing within the time frame allowed. It also protects the agent from home owners who wish to use services without fairly compensating the professional.

The real benefit, however, is for the home owner. Once the home owner has signed the contract, the sales representative/broker has the fiduciary responsibility to get the highest price possible for the home and to protect the Seller’s interests above all else. The sales representative must also follow provincial and federal mandated regulations as to ethics and legalities that are enforceable by a provincial council in conjunction with the local Real Estate Association. In other words, the contract is legally binding with the REALTORS® performance at stake.

Now that a contract has been signed, the home owner is a “Client” of the sales representative/broker, and enjoys the full privileges of a close, working relationship.

Buyers have historically worked with REALTORS® too, but it wasn’t until fairly recently that they have been asked to sign ”Buyer Representation Agreement.”  This is a change that has come about because of two reasons…abuse to Buyer’s agents and increased consumer awareness.

Without a contract the Buyer’s agent was particularly vulnerable to working without getting paid. Too often, Buyers would ask them to show them house after house, and then buy from another sales representative. One favourite Buyer trick is to attend open houses without their REALTOR® and tell the listing sales representative they aren’t working with anyone. Buyers mistakenly believe that they are learning about more homes without a sales rep. at their side, or that they may possibly get a better deal. The truth is…they don’t! They usually pay more for the home than they have to when they buy from the listing sales representative directly.

Then consumer awareness dawned. Buyers began to realize that whoever represented them at the closing table was on the side of the Seller, not theirs. They realized that they deserved to have a true advocate, and the Buyer’s agent was born. The only way was to create a binding agreement that protected both parties.

Good REALTORS® didn’t want to be burned again so the ”Buyer Agency Agreement” (now called the Buyer Representation Agreement) was created. Again, it was a protection for the REALTOR®, but it generates much more benefit for the Buyer. The main advantage is that it releases the agent from a fiduciary responsibility to the Seller and enables the agent to pursue the Buyer’s goals without any agenda.

Once the contract is signed, the sales representative goes into motion searching the MLS® for homes, and seeking homes through other avenues – foreclosures, FSBO’s, and their own database. At negotiations, the contracted Buyer’s agent becomes a “bulldog for the Buyer”, unrestricted by the Seller or Seller’s agent. Now they can make more demands, get a better price and better terms of sale for the Buyer.

Despite these advantages, some Buyers are still reluctant to sign. They don’t want to be “tied down” or they may mistakenly think that getting several REALTORS® to work with them will get them a better home or deal. They won’t. Part of the strength of the industry is the REALTOR® communication network. A Buyer working with several sales rep’s will quickly become a joke.

Without a contract, the Buyer is clearly not a Client. He/She is a “Customer” and when a good listing comes on the market either by word of mouth, e-mail from another REALTOR®, or on the MLS®, who do you think the Buyer’s agent will notify first…the uncommitted Buyer (Customer) or the contracted Buyer (Client?).

A contract makes a difference in other ways. For example, there are things the Seller may not want disclosed to the Buyer such as their urgency to sell, which could compromise their bargaining position. A REALTOR® who then discloses this information is in ethical violation and can be brought before the Real Estte Council of Ontario (RECO) on charges. Some offenses are serious enough to have a REALTOR® license to practice suspended or revoked completely.

But the Buyer has no such protections without a contract! Anything they say to an un-contracted REALTOR® may be passed along to the Seller. Why? Because, any REALTOR® who works for the Buyer without a contract automatically becomes a sub-agent for the listing broker, and is therefore working on behalf of the Seller.

Surprised? It’s all spelled out – in the listing contract and in the “Buyer Representation Agreement.”

A contract makes the difference in whether you are a “Customer” or a “Client” in a real estate transaction.

Which do you want to be?

Image Source = Newton Free Library

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In order to combat the recession, the Bank of Canada lowered its overnight rate to a record low in early 2009, and kept a conditional commitment to have it remain low until mid 2010. In April, that conditional commitment was removed upon seeing inflation statistics.
A recent press conference in Charlottetown urged individuals to understand that Canada was a leader in global economic recovery, and any rate changes that were to be made would be done so very cautiously, as the global market still remains relatively fragile. This week, the Bank of Canada has increased prime rate by 0.25 and here are a few reasons why:

Surge in jobs:

In the last three months alone, Canada has seen an increase of 226,600 jobs. In June alone, Canada had an estimated number of 93,200 jobs created – the majority in Ontario & Quebec. The private sector has welcomed 246,000 of those jobs in the last quarter, which will become beneficial when the stimulus spending begins to slowly be removed.

Unemployment dropped:

The swift increase in jobs helped drop the national unemployment rate from 8.1% to 7.9%. The unemployment rate is the lowest it has been since January 2009. With such a low unemployment rate, it has been noted that Canada has been the first country of the G7 countries to regain after employment losses. It seems that Mark Carney, the Bank of Canada’s Governor, was correct in saying that Canada will be leading the economic recovery in terms of the G7 countries.

Bonds climbed:

Bonds also have an impact on interest rate increases. The two year bonds are at their highest level since October 2009, currently sitting at 1.72%, which is up more than 25 basis points. Also, the banker’s acceptance rates have increased, which indicate that a rate increase is in the near future. Banker’s acceptance rates are used by lenders in determining variable rates, and may potentially be an influence on prime rate.

Parmida Modiri, AMP
Mortgage Broker
Lic. #: M08005765
www.signaturemortgage.ca

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What is the HST?

Currently in Ontario, residents pay a 5% federal sales tax and an 8% regional sales tax on many common goods and services. With the combined Harmonized Sales Tax, there will be one combined tax of 13%. Although many goods and services are not affected by this change, some services will begin to be taxed at the full HST tax rate, as opposed to previously only being at the 5% federal sales tax rate.

How will the HST help?

Many economists, along with the governments supporting this new combined sales tax, are considering the HST to be a bold move that will help with job creation, higher wages, and reducing other household consumer costs. It is being forecasted that over the next 10 years, Ontario could see 591,000 new jobs being created.

The prospect of lower consumer costs can be seen in provinces that have already implemented the Harmonized Sales Tax. In 1997, Newfoundland & Labrador, New Brunswick, and Nova Scotia harmonized their tax. Since, reports have shown that consumer prices have in fact, lowered.

Currently, products are getting taxed multiple times from the time that it is produced to the time it is purchased. This tax on a tax on a tax, also known as the “cascading tax system”, is being eliminated for a more efficient flow so that consumers are not paying tax for products multiple times, which the government hopes will reduce the prices on many products.

As the McGuinty government has already expressed that the positive effects of the HST will not be immediate, the government is offering an HST transition rebate for Ontario residents. Single residents over the age of 18 making less than $80,000 annually will receive a total of $300 over the next twelve months; families making less than $160,000 will receive a total of $1,000 over the next twelve months. These rebates will be either directly deposited or mailed by check, which are scheduled to arrive in June 2010, December 2010, and June 2011.

How will the HST hurt?
It’s no surprise that individuals and families alike will be affected by the new HST. The average family will have to pay an additional $792 annually after the HST comes into effect. Although 83% of consumer expenses do not have an increase in sales tax, some of the most used items that were initially taxed only with regional sales tax at 5% will now be subject to an 8% increase to 13%.
Some of the most prominent changes include tax increases to the following:

• Electricity and Heating

• Gasoline/Diesel

• Home Service Calls (by an electrician, plumber, etc)

• Landscaping, Lawn-Care, Private Snow Removal

How will the HST effect real estate transactions?

Here’s an easy guide to better help you understand the HST effects on real estate matters.

The following are exempt from the Harmonized Sales Tax:

• Mortgage brokerage fees if applicable are exempt as part of the financial services industry.

• Rents paid by tenants: For residential tenancies, HST will not apply.

• Condominium monthly fees: For residential condominiums, HST will not apply to monthly common expenses.

• Resale residential property: There will be no HST on the price of resale residential purchases.

• Resale cottage/vacation property purchases: HST will not be payable on the price if the property sold by the seller and bought by the buyer is personal use property.

• Resale apartment buildings: Multi-unit residential properties are exempt from the HST.

The following are NOT exempt from the Harmonized Sales Tax:

• Rents paid by tenants: For commercial tenancies, HST will apply.

• Condominium monthly fees: For commercial condominiums, HST will apply to monthly common expenses.

• Home Renovations (For any part of services provided after July
1st, 2010 – No matter when the contract was signed)

• New Home Purchases (over $400,000 – not including re-sale home purchases)

• New home purchases: HST will apply on all new home purchases unless the purchased home is going to be the principal place of residence (exemption can only apply if the purchase price is below $400,000)

• Resale cottage/vacation property purchases: HST will be payable on the price if the seller had been renting out the property more than 50% of the time during the seller’s ownership. If the property being sold was part of a rental pool, HST will apply.

• Resale apartment buildings: Multi-unit commercial properties are NOT exempt from the HST.

• Real estate services as well as legal services are not exempt from the HST.

For more information, please visit Ontario Ministry of Revenue website.

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First and foremost, you need someone who is trustworthy and honest, and has the same ethic you do in the way you conduct your business, someone you can rely on without hesitation and know that your clients are in good hands.

The one thing you need without question, is a Vacation Agreement, or Commission Agreement between you and the covering agent, so there is no misunderstanding when it comes to commission.  I usually give the covering an agent a synopsis of my current active client list and include any pertinent information I feel is necessary for them to know in order to assist my clients to the best of their ability.

As a courtesy, also, you should notify your clients/contacts of your pending vacation, and reassure them that a qualified agent will be assisting them if needed on your behalf, while you are away… so there is no interruption of service to them.

Some things to consider in your agreement are:

1. How much commission are you going to pay on any sale of your listing, or presenting of an offer?
2. If the covering agent sells one of your listings, and receive a back-up, how much will the covering agent receive on the back-up?
3. If someone calls while you are away to list your home, how much is the covering agent going to receive to list the property for you?
4. I you sell it when you return, how much are you willing to pay the covering agent for writing up the listing when it sells?
5. How will the commission be split as a result of any sign calls from one of my listings if someone lists their home, or if a buyer buys another property?
6. How much will the covering agent receive if the covering agent sells a property to one of your existing buyers they introduced to the property?
7. How much does the covering agent receive if you refer them directly to a buyer in your absence?
8. When a listing is sold, and the seller becomes a buyer, how much will you pay the covering agent if they purchase a home through them?
9. Who do ad calls belong to in your absence?
10. If covering agent sells to an ad caller, how much commission will you/they receive?

These are just some of the important issues that should be addressed prior to your leaving on a vacation. I’m sure there are others, and if you have any to share, would appreciate hearing from you!

Image source =m o d e

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Although many Canadians feel comfortable taking on debt, household debt has doubled in the last 20 years, to a record of $1.41 trillion. That means, on average based on everyone living in Canada, each person would have about $41,740 worth of debt.

It is important that each household works towards maintaining a plan, so that one day owning a home can be attainable, and not just a dream. The first most significant step towards home ownership is to achieve financial stability.
Here are five ways to achieve financial stability towards home ownership:

1. Start your own personal budget plan:

Regardless of whether you are looking to buy a home, planning to save for retirement, or just looking to balance your finances, it is important to create a personal budget. In an average month, those without budgets would probably have great difficulty in being able to estimate how much they spend on various amenities. For a one month period, create a household budget which not only will categorize spending, but show actual figures of what your household spends money on.

Once that month is over, it is important to take a look at the finances and see what is being spent and where. Seeing these numbers written down is typically more effective because you can begin to allocate money to different sources if need be. For example, if you find that your household is eating out too much, allocate some money towards monthly groceries, and the other money can be used towards saving up for a down payment on a home, or perhaps paying down existing debts.

Creating a personal budget is crucial in order to be able to effectively save up for a down payment and afford a home. If you need help creating your budget plan you can email: info@ssfi.ca for a complimentary sample budget plan.

2. Examine your current debt:

It is important to be aware and fully understand the current debts that you have. Take a look at not only the type of debt, but how likely it is that these debts can be paid off and how quickly.

In terms of credit cards, only use them if you know you can afford the payments on them. You should also be aware of payment dates, as missing payments will adversely affect your credit score. Having a lower credit score makes it more difficult when obtaining mortgage financing, auto financing, or even future credit card financing.

3. Determine your financial goals:

Find out exactly what you want to achieve financially. Without a goal in mind, it makes it much harder to follow through with saving up and paying down debts. If you want to own your own home, own a car, or save up enough for a trip, it is important to visualize what you want.

If you’re just looking to become more financially stable, consider a target budget that you can slowly work towards. It is also important to look at your income compared to your debts to see if there is any room for improvement.

4. Eliminate higher interest account balances:

High interest account balances can really hinder plans for home ownership. Credit cards promoted through various companies that typically offer “No interest” or “Don’t pay for 90 days!” also come with a hefty price tag. Big box stores that have in-house financing also typically have the highest interest rates for credit cards.

If you are trying to pay down debts, focus on paying off those with higher interest rates first before moving on to the other accounts. Another tip would be to contact your credit card company and ask for an interest rate decrease. Individuals who have good repayment history and have been with the credit card company for a significant amount of time can sometimes successfully receive a lower interest rate just by asking.

It is important to keep two active trade lines in order to maintain a strong credit score. This can be two credit cards, a credit card and line of credit, etc. Typically, having too many credit cards makes it difficult to keep track and could potentially cause missed payments.

5. Find out your best mortgage financing options:

Shopping around for a mortgage is no easy task. There are many mortgage products available currently, and it is important to speak with an accredited mortgage professional to see what the best option for you is.

Many mortgage brokerages offer their services for free. Many also receive discounts from top lenders therefore are able to offer more competitive rates compared to going with a traditional lending institution, such as a bank.

Parmida Modiri, AMP
Mortgage Agent
Lic. #: M08005765
www.signaturemortgage.ca

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(Heck, it was legendary Mississauga Realtor Gordon Daly who ADVISED me to do this, and then HE was the first one to UNSUSCRIBE me!)

“The MLS gives us everything we want!” agents defend.

So then what about the Open House, eh? The Open House has been the King of Home-selling Tactics ever since the invention of the welcome mat. Long loved (hated) for its unique blend of Serious Buyers, Passers-By and Nosy (read: contemptuous) Neighbours, the Open House has historically been a profitable diving board for sellers jumping head-first into the deep waters of the real estate market. But with the exponential advancement of the Internet and the de-socialization of human interaction, is the Open House still King?

You bet your assessment it is.

First, let me address my fellow agents: IF YOU ARE NOT HOLDING OPEN HOUSES AT EACH AND EVERY OPPORTUNITY, ESPECIALLY IF YOU ARE JUST STARTING OUT, THEN YOU ARE NOT INTERESTED IN SUCCEEDING.

The benefits of the Open House are almost innumerable for the agent. First let’s broach the people coming in… The Serious Buyers – well, this helps you and your client without saying, but the real value for the agent lies in the Passers-By and the Nosy Neighbours.

The Passers-By will likely have no agent………… Ding ding ding ding!!

The Nosy Neighbours? Well, half of them are nosy, for sure. But the other half are comparing homes to see what their home might be worth………… Ding ding ding ding!!

Is there a math here that I have to calculate?

Okay, okay. Forget about the people coming in… let’s talk about client perception. What is YOUR client thinking about you? Is YOUR client thinking that you are working hard enough for them? Is YOUR client going to recommend you to their cousins?

Open Houses are ACTION. They are TANGIBLE. They are PART OF THE PLAN.  It matters little how effective they are. The point is, you are earning your keep – or, giving the perception you are, at least.

How effective are they, anyway? Some statistics show that open-house buyers account for 2-4% of eventual deal-makers. Hoo-boy! That’s not a whole heck of a lot of handshakes, is it? No, it is not. But there may be an argument for the abstract influence of those two-to-four-percent.  It is not far-fetched to imagine the impact of the fact that there has been (or will be) open houses on the potential offerer. If a person-with-designs-on-your-client’s-home knows that other people have seen the house, they may indeed transfer their warm-and-fuzzy feelings about the house to somebody else, and spur themselves into action. (Naturally, this would only be effective in the first couple of weeks of the listing.)

So let me now address the sellers – the homeowners: IF YOUR AGENT IS NOT HOLDING OPEN HOUSES FOR YOU AT EACH AND EVERY OPPORTUNITY, THEN PERHAPS YOU MADE THE WRONG DECISION ABOUT YOUR AGENT.

Why? You ask… I just finished telling you about that heinous two-to-four percent figure – so what gives?

Well, you probably won’t sell your home through an Open House – this is undeniably true.  BUT (and this is a huge BUT)… if your agent cannot convince you that an Open House is absolutely essential to the eventual good-sale of your property, then tell your Cousin Louie that you may have hired a dud.

First of all, ANY method of improving your odds is imperative to you – even if it IS only a low percentage. In your eyes, the agent is making a virtual MINT off of you (they aren’t, really, but that’s another blog), so why aren’t they working themselves to the bone to sell your property??

Secondly, and much more importantly, if your agent isn’t taking advantage of the inherent benefits to herself for holding an Open House, then that agent is either A) Lazy, B) Stupid, or C) Too Busy For You. And I’m fairly sure that you signed up for D) None of the Above.

Open Houses are a clear opportunity for Agent Success, and if your agent doesn’t want to work hard at every opportunity for success, then your agent just isn’t working hard enough for YOU.

So yeah… Real Estate Has Changed. But the importance of Open Houses has not.

Image source = Gret@Lorenz è una combattente

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I have been studying Real Estate for a few years now and in addition to my training for legal contracts, building concepts, marketing methods, Government requirements and negotiating principals there are some important aspects of applied common sense gained from experience.

One primary challenge that presented itself to me, immediately after spending two (2) years in school to learn the basics of the Real Estate industry was that there are a lot of people who decide they can do it themselves because they think it is easy to do.

Other seemingly standard every day tasks, like driving a car and picking suitable clothing have also spawned “Reality TV” programs showing what NOT to do.

What about Real Estate? How difficult can it be?

No one individual listing is particularly challenging when considered on it’s own but putting everything together creates quite a challenge.

For me, time and time again, I rediscover that I need experience to really understand what I have learned. Gaining experience unveils the essence of knowledge, that is when you understand what you have learned.

I am very passionate about the Real Estate business because I know that I can help my friends and the people they care about meet their goals. Of the large number of possible requirements to sell your house many or most things will have some element of new knowledge or new experience. What will it cost you to sell your house on your own? Is the cost of possible errors or omissions and the value of your time and the frustration and anxiety worth more than the real estate commission?

Image source = Fabiana Zonca

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A  few guidelines/procedures to keep in mind when your home is listed for sale.

Setting Up  Showings

My office will call you to request an appointment when an agent has a prospective Buyer that would like to see your home. If you are not available, a message is left on your answering machine if you have one, or depending upon arrangements made, we will grant the request and provide access to your home with a lock box.

Make Your Home  Accessible

Having your home accessible to prospective Buyers as much as possible, is critical in the sale of your home.  Agents try to give as much notice as possible for requests to show your home, but there are times when last minute requests do occur.  Granting requests as much as possible is desirable … the request you turn away may be the purchaser you’ve been waiting for.

Dress For Success

Looking good is important when you want to make a great impression, whether for a job interview or a social function. The same is true of a home that is on the market. When the “For Sale” sign goes up in front of your home, it should be “dressed” for the occasion.

Since the first impression will be of the front of the house, a well-groomed exterior is crucial, from the landscaping to the paint. The interior of your home should be clean and tastefully decorated. Take care of any minor cosmetic repairs that are needed, such as cracked plaster or peeling paint. A sparkling kitchen and shiny bathrooms, clean windows, and the absence of clutter will help your home “show well”. Keeping your home looking good at all times is hard work, especially if you have children and are packing for a move. The dividends are impressive, however, because a home that looks well cared for has an excellent chance of selling quickly for top dollar.

First Impressions

Good curb appeal is a major plus when we market a home. A little bit of work on the front of your can pay big dividends.

When a potential buyer pulls up in front of your house, their first impression is absolutely crucial. Sometimes buyers won’t even look at a home with droopy shutters, sagging gutters, peeling paint and a bumper crop of dandelions in the front yard. Or they might go in expecting to find a “fixer-upper” that could be purchased at a bargain price. If a house looks neat and cared for from the street, the initial good impression will carry over as the buyers step inside.

It is not necessary to hire a professional landscaper, but listen to your Realtor’s suggestions when you list your home. Local nurseries can help you select blooming plants that will thrive in your area. Keep the lawn mowed, and regardless of the season, take care of exterior maintenance. Strong curb appeal will help your home sell more quickly and for top dollar.

A Sparkling Kitchen

There’s no doubt about it–the kitchen is one of the most important rooms in the whole house for many prospective buyers. Smart sellers will take a close look at how they can make their kitchen a real asset when it is time to sell.

Your kitchen doesn’t need to be state-of-the-art to be attractive. The first step toward enhancing your kitchen’s appeal is a thorough cleaning. This includes the walls, cabinets (inside and out), floors, and appliances. Keep the counter tops as clear as possible of small appliances and gadgets. Consider low-cost improvements which can make a big difference, such as a coat of paint, fresh wallpaper, or new floor covering. Be sure to keep the kitchen sparkling when the house is being shown. This means no dirty dishes in the sink or mouldy cucumbers in the refrigerator. This extra effort will pay great dividends!

Help Your Realtor

Once your home is listed for sale, it may be difficult for you to step aside and let your agent take over. When prospective buyers arrive, you may want to stand by to point out the closet extenders, the hidden spice cabinet behind the kitchen door, the energy-saving storm windows or the updated copper plumbing. If you really want to help, however, you will leave the house whenever it is being shown!

We have found that the sales process does not really begin until buyers have begun      to voice their objections about a property. Sometimes these concerns are serious     enough to remove your house from consideration. Often, however, people voice objections as a defense mechanism because they really love the house and they want     to buy it. We are trained to know the difference. If a seller is standing at the agent’s elbow, the buyer won’t be comfortable enough to let this process take place, and we could lose the sale. The best way to help is to give us the room to do our job.

Summary

Very few people will buy a house because they are attracted by fantastic bathrooms. Buyers do react to bathrooms that are not cared for, however, because they view them as a reflection of the overall condition of the property.

Many buyers know that plumbing repairs potentially represent a major expense. They get nervous about dripping faucets, loose tiles, and running toilets. Your pre-marketing preparations should include making sure that your plumbing is working properly and that any cosmetic damage caused by former leaks has been repaired.

Keep the bathroom spotless while your home is on the market. Get out the scouring powder, mildew remover, glass and tile cleaner and a scrub brush. Re-caulk around the tub and shower, if necessary. A new shower curtain, bath mat, and nice smelling soap can help give the buyer one more positive reason for liking your home!

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Image: Anoldent / Flickr

With the loonie continuing to hover around parity with the U.S. dollar, Canadians are looking to buy more American products. And one of the most lucrative products they are thinking of buying are homes.

Now is a great time. Not only is the Canadian dollar getting stronger relative to the U.S. dollar, but interest rates in both countries are very low. At the same time, property values in the U.S. have plummeted, particularly in the Sun Belt. The result of all this is that many Canadians are finding great deals on retirement or vacation homes in the U.S.

According to the National Association of Realtors, an American organization, the top foreign buyers of U.S. property in 2009 were Canadians. Philip McKernan, the author of South of 49: The Canadian Guide to Buying Residential Real Estate in the United States, agrees that Canadians are being more aggressive when they buy real estate. He says, “There is certainly a greater confidence out there with Canadians. It’s not just economic. There is a sense that we are players on the world stage, whether it’s our banking institutions or more recently at the Olympics.”

The other factor is that the deals are just not comparable to anything in Canada. For instance, in Laveen, a suburb of Phoenix, a 1,700 square foot home built earlier this decade would cost about $100,000 U.S. Homes in Toronto and Vancouver of a similar size could cost four or five times this amount, even after factoring in the exchange rate.

Even more shocking – the house could sell for less. Unlike in Canada, where prices are beginning to rise again due to shrinking inventory and growing demand, demand is still very weak in many markets in the U.S. As a result, many homes sit for months without selling, or sell for far below their asking price.

Of course, it’s not all hidden deals. Many of the houses in the U.S. are cheap, but some will likely remain that way: Detroit, for instance has houses that are selling for $20,000. Some analysts wonder if Phoenix and Las Vegas, for instance, can ever regain the value that the homes were selling at, when they were at their peak. And as we’ve discussed in previous articles, there are a lot of things you need to consider before you think about buying homes in the U.S.

Unless you are a multi-million dollar investor, you should only ever buy because you love the property and want to sink your heart into it. And whenever you think about making a real estate decision, it is always a good idea to talk it over with a registered real estate agent first to make sure you understand all of the consequences.

Nelson Goulart
Broker of Record with Signature Service GMAC Real Estate
www.ssgmac.ca

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