Know Before You Owe – Important Things About Disclosure and Disclaimer Clauses

Here is another great article from Mark Weisleder that might interest you. The Real Estate Council of Ontario did a survey of first time buyers in Ontario and found that one of the top issues that buyers had was they wished they understood the real estate contract and the process involved in buying a home a lot better, before they bought their home. Here are 5 things to know so that you will not be surprised either before or after closing.

1.    How much is the bank really lending me? 

When you go to your lender to arrange financing, many buyers wrongly assume that if you are borrowing $300,000, then that is the amount you will receive on closing. Not true. In many cases, the lender may deduct a mortgage processing fee, which can be approximately $250. If the lender is paying your property taxes, they may deduct an amount right off the top in order to create a tax account for you, sometimes up to an additional $1,000. If your closing is for example on January 10, 2015, and your first payment is March 1, 2015, then the lender may deduct in advance interest from January 10, 2015 to February 1, 2015. Finally, if you are using CMHC or Genworth to obtain insurance for your mortgage, for example if you do not have 20% of the down payment, then not only will the premium be deducted from the principal amount of your mortgage, but an additional 8% PST will also be deducted on closing. Buyers often tell me that the PST charge was not explained to them by anyone. Ask your mortgage broker or lender in advance about all of these potential charges so you are prepared for what you will have to bring in on closing.

2.    What does "more or less" mean when they are discussing the frontage and depth of a property, or the square footage? 

What this means is that if there is an error in the dimensions or square footage up to 5%, a buyer can typically not complain about it after closing. If the boundary lines matter to you, make the deal conditional on your receiving an up to date survey that demonstrates the actual boundary lines. If the square footage matters, arrange to hire a professional to measure it for you. Most offers contain a disclaimer that the seller does not warrant anything anyways so you need to protect yourself if this matters to you.

3.    The seller told me the counter tops were made of granite but I found out later they weren't; can I sue after closing? 
The answer is usually no, since the fine print indicates that if it is not in the Agreement, it didn't matter to the buyer or the seller. Therefore, if anything about the property does matter to you, whether it is any feature or item contained in a listing, be sure to include it in your agreement of purchase and sale as well.

4.    I bought and sold my home on the same day. Even though I was packed up at 1 pm, I could not get into my new home until 6 pm, meaning that I had to pay the movers for an extra 5 hours. Can this be avoided? 

This can be a real problem, especially at the end of the month. The safe way to avoid this is to close your purchase a few days early and obtain bridge financing so that you can move when it is convenient for you. The interest you will pay to do this is much less than what you will pay movers to wait around.

5.    I don't agree with the terms of the furnace rental contract. Can I just cancel it?

Unfortunately, the answer is usually no, unless you are prepared to pay a penalty. In the fine print, the buyer agrees to assume every rental contract that is disclosed. Before you sign, ask for the details of any rental contract in advance so that you are aware of what it will cost to either assume the contract and continue making the payments or the cost to cancel it after closing.

When you understand the fine print and the process before you sign any real estate agreement, you should not receive unwelcome surprises later.

By Mark Weisleder 

Purchasing or selling real estate is a complex process and every element of the transaction is best handled by an experienced professional. Don’t take chances, go with proven results and experience. With 25 years of full-time local service in Whitby, Brooklin, Ajax, Pickering, Oshawa, Courtice and Bowmanville, I can make your purchase or selling worry-free. Contact me today!

Randy Miller

Broker of Record

Royal Heritage Realty Ltd., Brokerage

905-430-1800

randy@randymiller.ca

http://whitbybrooklinhomes.com

How Is The Market? (November 2014)

December, 2014. Greater Toronto Area REALTORS® reported 6,519 residential transactions through the TorontoMLS system in November 2014. This result was up by 2.6 per cent compared to 6,354 sales reported in November 2013.  Through the first 11 months of 2014, total sales amounted to 88,462 - up 6.6 per cent compared to the same period in 2013.  





While the trend of year-over-year sales growth continued, the supply of listings remained constrained, with active listings at the end of November down in comparison to last year. 




"Even with a constrained supply of homes for sale in many parts of the Greater Toronto Area, buyers continued to get deals done last month. Households remain upbeat about home ownership because monthly mortgage payments remain affordable relative to accepted lending standards. This is coupled with the fact that housing has proven to be a quality long-term investment," stated Toronto Real Estate Board President Paul Etherington. 



The average selling price for November transactions was up by 7.4 per cent year-over-year to $577,936.  The year-to-date average price was up by 8.4 per cent to $567,198. The MLS(R) Home Price Index Composite Benchmark price for November was up by 7.7 per cent compared to a year earlier.  

 

Continuing Price Growth in Durham Region

Jane Hurst, President of Durham Region Association of REALTORS® (DRAR), reported 740 sales through the MLS® System in November 2014. This is a 2.8 per cent increase compared to 720 sales in November 2013. Through the first 11 months of the year, 10,367 residential sales were reported, up 5 per cent compared to 9,872 over the same period last year.

The average selling price for November transactions was up 9.7 per cent year-over-year to $404,196. The year-to-date average selling price was also up by 9.7 per cent bringing the average price for the first 11 months of 2014 to $392,027.

Hurst said that the strong average price growth experienced throughout 2014 has been consistent with a higher demand for homes than the market could supply. There is also a strong competition between buyers which puts upward pressure on selling prices. This trend is expected to continue into the early months of 2015.

 
If you are looking for a house in Durham Region or are already a homeowner and wish to move to a new house in Pickering, Ajax, Whitby, Brooklin, Oshawa, Courtice or Bowmanville, please contact me for more information.

Having sold real estate in Whitby and the Durham Region for over 20 years, I can help you with both - the buying and selling process. 

Randy Miller
Broker of Record
Royal Heritage Realty Ltd., Brokerage
905-430-1800
randy@randymiller.ca
http://whitbybrooklinhomes.com

 

5 Things To Know About Disclosure And Disclaimer Clauses

The basement floods after closing. Can the buyer sue the seller? The agreement contained wrong information about the property dimensions but also included a disclaimer clause. Can the buyer sue if there is a problem after closing? Do you need to disclose a murder that occurred in a home? These are not simple questions, but if you remember the following principles, you should be able to understand the law.

Here are 5 key lessons to remember:

1.    When there is a flood after closing, the buyer will have to prove that the seller knew about this defect and that it was serious or else that the seller actively concealed the defect from the buyer. It will also depend on whether the buyer conducted a home inspection and in the case of basement water, whether the seller actually finished the basement themselves. A buyer will have to prove that the seller must have known about the problem during their ownership. Buyers will have to take pictures of the damage and bring in an experienced contractor who will be able to look at the damage and then give an expert opinion, in court if necessary, that the seller either must have known about the problem or did work behind the walls to conceal the problem. If the buyer cannot prove this, they will likely not be successful.

2.    The defect must make the property uninhabitable or dangerous. This means that the defect must be so serious that the buyer may not be able to continue living in the property. This would include a foundation problem. It is not clear if this would include a disclosure that the property was previously used as a grow op, as it would depend on the extent of the operation and whether it was actually remedied according to accepted industry standards. It would also depend on whether the buyer could obtain insurance for the property. Suffice to say that if the seller does not disclose a minor basement leak, the buyer will not be successful suing about it after closing.

3.    The law is not settled as to whether a seller needs to disclose a property stigma, whether it is a murder, suicide or neighbourhood condition, such as a pedophile who lives next door. Most appraisers will tell you that this will affect a property's value. However, it will still be hard to prove that this stigma would make the home uninhabitable and this is why many lawyers will tell you that you do not have to disclose property stigmas. 

4.    If you advertise the boundaries of a property in a listing, can the buyer get damages or get out of the deal if it turns out the boundaries are incorrect? Will it make a difference if there is a disclaimer clause in the offer itself, saying that the information, while believed to be correct, is not guaranteed and should not be relied upon without independent verification? In most cases, if the disclaimer is there, the buyer will not be able to sue the seller for any damages and will need to make sure that they do their own proper due diligence in advance. The lesson for any buyer is to make sure that if there is a disclaimer present, that you check a survey of the property or make the deal conditional on your own independent verification of all boundary lines.

5.    If you have any concerns about disclosure, ask the sellers point blank if they have had any water in the basement, murders or grow houses on the property in the past, or insert a clause to this effect in your offer. The sellers then have to respond truthfully. Speak to the neighbours and ask if any repairs were done at the property during the past year or whether there are any other issues with the property that you should know about. Also ask the neighbours about anything peculiar going on in the neighbourhood, including asking about the neighbours on either side of the property you are interested in buying. A major reason sellers sell a home is simply to get away from a neighbour.

When you understand the rules about disclosure and properly protect yourself, you should be able to minimize any problems that could arise after closing.

By Mark Weisleder, a Toronto lawyer, author, course developer and public speaker for the real estate industry


Randy Miller 
Broker of Record
Royal Heritage Realty Ltd., Brokerage  
905-430-1800
randy@randymiller.ca
http://whitbybrooklinhomes.com

Announcement: New Brokerage "Royal Heritage Realty" - Realtors working with Realtors

On Friday, I left Re/Max. I have been in the Re/Max organization for 20 years, awarded the Lifetime Achievement Award many years ago and the Chairman’s Club last year. I work with many great people here in Durham Region and I look forward to many more good years at my new brokerage, Royal Heritage Realty Ltd. Along with my partners Paul Etherington, Michelle Makos and Joe Pitino, we will build a strong residential and commercial presence. We will be announcing our first location soon, more details will follow. We will build amazing brokerage because we know our customers. Joe and Michelle came up with a great slogan; Realtors working with Realtors. We envision a company with great agents, our office will be positive and progressive, come and join us!



Randy Miller 
Broker of Record
Royal Heritage Realty Ltd., Brokerage  
905-430-1800
randy@randymiller.ca
http://whitbybrooklinhomes.com 

GTA REALTORS® REPORT MID-MONTH HOUSING MARKET FIGURES

Toronto Real Estate Board President Paul Etherington announced that Greater Toronto REALTORS® reported 3,350 sales through the TorontoMLS system during the first 14 days of November 2014. Read more...


== TREB NEWS RELEASE ==

For more insight into the houses within Durham Region, the Whitby real estate market, or the Brooklin real estate market, contact me. If you are an existing homeowner and are thinking about a, move, I can tell you what your house or condo is worth in today’s marketplace.

Randy Miller 
Broker  
Re/Max Rouge River Realty Ltd., Brokerage  
905-668-1800 or 905-427-1400
randy@randymiller.ca
http://whitbybrooklinhomes.com

Chattels and Fixtures - 5 Things to Remember

Here is a great article from Mark Weisleder, a real estate laywer, author and speaker, I want to share with you:

5 things to remember about chattels and fixtures

The buyer notices that the oven is not working when they do their final home visit, 2 days before closing. Can the buyer refuse to close or hold back money to repair the oven? These are just some of the questions that I receive from anxious buyers during the course of a home purchase.

Here are 5 key lessons to remember:

1. The buyer cannot refuse to close a real estate deal if an appliance is not working, or if there are minor damages on the property, unless the contract says so. What the standard real estate contract says is that the buyer can only refuse to close if there has been substantial damage to the property before closing. This would cover a house burning down or a major flood before closing, but would not cover a cracked window or appliance that is not working.

2. The buyer or the buyer lawyer is also not permitted to decide on their own to hold back money to complete any repairs, unless the contract says so. In my experience, sellers rarely agree to any clause in an agreement that permits a buyer to hold back money, for example, to make sure that the seller has completed any required repairs before closing. The problem is that in practice, buyers will typically say that they are not satisfied with the repairs and the holdback money cannot be released to anyone.

3. Here is my advice to settle repair or damage issues: get an estimate for the damage and then have your lawyer send it to the seller lawyer, offering to just settle the matter by the seller either fixing the problem before closing or the seller providing a credit equal to the estimate and the buyer fixes it themselves after closing. I am usually able to work this out with seller lawyers before closing. Unfortunately, if there is no settlement, there is no automatic right to hold back money and the buyer will be required to sue the seller in Small Claims Court after closing to get their money back. This is not a good solution for anyone, because of the time it takes to go to court to resolve this. Be reasonable and solve your problem.

4. What if the oven breaks down 2 days after closing? Unfortunately, the way the contract is written, the buyer does not get an extended warranty. The seller will typically only warrant that appliances and home systems will be working on closing, not after closing. Make sure that even if you are not moving in until a few days after closing that you go to your home immediately after closing and check to make sure that everything is working properly. If anything is not working or there is a damage, have your lawyer immediately contact the seller lawyer the next day about your issue. Also consider buying after sale insurance protection to cover your home systems and appliances. Canadian Home Shield is a company that offers this type of protection at a reasonable price.

5. Little things matter. If your seller is removing a chandelier, make sure they are required to replace it with a standard light fixture so you do not walk into a dark home on closing. If your seller is removing a TV bracket from the wall, make sure that they are required to fill in any holes that are created. Make sure you are to be given 2 full sets of keys, FOBs if a condominium, garage door openers and mail box keys. If the agreement is silent, the seller may only get you one set and it is costly to obtain a duplicate set, in most cases.

When you understand the rules about chattels and fixtures and properly protect yourself, you should be able to minimize any problems that arise after closing.

By Mark Weisleder

 

Randy Miller 
Broker  
Re/Max Rouge River Realty Ltd., Brokerage  
905-668-1800 or 905-427-1400
randy@randymiller.ca
http://whitbybrooklinhomes.com

 

Upcoming Christmas Events in Durham Region

Oshawa’s Christmas Tree Lighting

When:                  Friday, November 21, 2014, 6:45 pm – 8:15 pm
Where:                 Memorial Park

The annual Christmas Tree Lighting has been a tradition in Oshawa for over 30 years.
While entering the park listen to the wonderful sounds of the Oshawa Civic Band as they play their musical instruments.

What better way to start the holiday season than with FREE hot chocolate (bring your own mug), great entertainment for all ages, church bells, lighting a Christmas tree and a visit from a very special guest in Red, along with his elves!

Oshawa: Santa’s Parade of Lights

When: Saturday November 22, 2014 at 6:00 p.m.
Where:Check out the Parade Route Page for details:
http://oshawasantaclausparade.org/paraderoute.htm

Christmas in the Village in Brooklin

When: Friday, November 28, 2014, 6:00 p.m. - 8:00 p.m.
Where: Grass Park, 41 Baldwin Street, Downtown Brooklin

Experience the essence of an "Old Time Christmas" at Downtown Brooklin's Christmas in the Village. The weekend of events begins on Friday evening at Grass Park at 6:00 p.m. Santa, his reindeer and friends help light the Christmas tree (around 6:30 pm).

Santa Claus Parade in Ajax

When:                                  Saturday, November 29, 2014 6:00 – 8:00 PM
Where:                                 Bayly Street and Mackenzie ending at Town Hall

Once again, Ajax residents and visitors are invited to come out and welcome Santa when he arrives in town for “Santa’s Magical Parade of Lights”. The parade begins at the intersection of Bayly Street and Mackenzie Avenue, proceeding east along Bayly and then north on Harwood Avenue South, concluding at Ajax Town Hall. Immediately following the parade will be a special tree lighting ceremony at Town Hall (65 Harwood Avenue South) with children’s activities. Parking at Town Hall is limited and patrons are encouraged to park at the Ajax Plaza, Harwood Shopping Centre or Baywood Centre. For more information and a route map, visit www.ajax.ca

Pickering's Santa Claus Parade

When:                   Saturday, November 29, 2014 10:00 AM – 12:00 PM
Where:                 Glenanna Road between Dixie Road and Pickering Parkway

Whitby's Annual Christmas Tree Lighting

When:                  December 5, 2014, 6:00 pm - 8:00 pm
Where:                 Whitby Public Library, Celebration Square, 405 Dundas Street West

Watch Celebration Square come alight when we kick off the holiday season with the annual Christmas tree lighting.   Families can enjoy caroling, seasonal  entertainment, crafts and activities, hot chocolate and cookies.   Please bring an unwrapped toy as we launch the Stuff -a-Bug Toy Drive.   Enjoy evenings in the square throughout the season.

Whitby’s Santa Claus Parade

When:                  December 6, 2014 at 10:00 a.m. - Noon
Where:                 Brock Street

Approximately 20,000 people line Brock Street each year to watch the marching bands, dance groups, floats, clowns and musical entertainment - all in anticipation of catching a glimpse of Santa Claus and his reindeer.

The parade is operated by JCI Durham, a membership-based non-profit organization of young people aged 18 to 40 years, who seek targeted solutions to unique problems in the community.

Both JCI Durham and the Whitby Chamber of Commerce judge the best parade entries, which can be viewed on the JCI website. The best overall entry is announced at the Parade Awards Dinner in January.

Visit the JCI Parade webpage at whitbyparade.com for registration and additional information!

Randy Miller 
Broker  
Re/Max Rouge River Realty Ltd., Brokerage  
905-668-1800 or 905-427-1400
randy@randymiller.ca
http://whitbybrooklinhomes.com

Bidding Wars

Today I found an interesting blog article about 'Bidding Wars' which I want to share with you. It tells the story of a couple who tried to find their dreamhome in Toronto and all the bidding wars they found themselves in. Bidding wars are a seller's dream but can be a buyer's nightmare...

Cait: Walk us through your first bidding war. What happened?
KL: The first bidding war we got into was for a condo, which is very rare; this is when we realized how competitive the family-friendly condo market was in Toronto. Generally, it’s a good idea to see a home at least twice: once privately (so you can look at it in-detail) and again at the open house (to see how many people show interest in the property). However, with this first property, offers were accepted anytime and there were three offers on the first day it was listed.
You can usually submit your offer 1 of 3 ways: at the property itself, at the listing agent’s office, or you can send it in via fax. Most real estate agents will recommend you do it in-person (i.e. not via fax), so you can build some rapport with the listing agent and sellers, as well as be available to change your offer on the spot. For the condo, the listing agent held the offer presentations at her office, which was in Markham – and on a Friday night at 10pm. It was a really strange experience, and our real estate agent said he’d never seen that before, especially for a downtown Toronto condo.
Anyway, as the buyer, you don’t go in yourself. You basically sit and wait, while your real estate agent goes in and presents your offer to the listing agent + sellers. It’s done this way so hopeful buyers don’t get emotional, make rash decisions, etc. and also adds a level of professionalism to the whole experience. But I was literally sitting in a car waiting while our agent presented our offer and then we waited together until all the other offers were presented. After that, the listing agent + seller may decide to accept an offer (in the first round) or choose a few offers that are close and ask if you’d like to improve yours (in a second round). We didn’t make it past the first round.
Cait: Were you disappointed you’d lost?
KL: I was. I’d fallen in love with that condo and had basically already moved in, in my head. Then people tell you “everything happens for a reason” and you kind of roll your eyes at that, especially when you’re disappointed… but it’s true! It’s good we lost that one, or else we wouldn’t have bought the amazing house we have now.
Cait: Did you stop looking at condos after you lost?
KL: No, we still looked at them a bit, but just added houses to the mix. When we did the cash flow analysis on large two-bedroom condos with large corresponding condo fees versus houses, a three-bedroom house was not that much more expensive.
Cait: What was different about the second bidding war you entered?
KL: Once we decided to start looking at houses, I fell in love with the first one we saw – and this is a bad idea! Our real estate agent always told us to see multiple properties, so we wouldn’t make any rash decisions or jump into something just because we loved the “idea” of it. But after seeing so many condos, that first house had everything we were looking for in a condo, and I loved the idea that we could actually afford a house!
This brought us into another highly competitive segment of the market for renovated three-bedroom starter homes. The next house we decided to submit an offer on had an “offer date”, which meant all offers were accepted only on that date. On top of being in the neighbourhood we wanted, the house was nicely updated and had a basement apartment. (Tip: If you see a home that has income potential, be prepared for the bidding war to be extra competitive!)
We registered our offer early, at our real estate agent’s suggestion, because when you do so, the listing agent has to tell you if any bully offers come in. (A bully offer is when someone submits an offer that they think is amazing, in hopes they can buy the house before it goes to a bidding war.) Most of the time, sellers won’t even look at bully offers, because they know they can get more out of a bidding war – but it’s still good to know if any have been submitted, because then you can get a sense of how competitive the bidding war is going to be. In the end, 10 offers were registered on the house, which is high, even for Toronto. All offers were presented at the house itself, which meant there were 10 hopeful buyers + their real estate agents waiting around to present.
Before you enter a bidding war, you and your real estate agent will decide between two different strategies: either go all-in with your “first and best” offer, or bid slightly below it and know that you’d be happy to go up another increment (say $10,000). Typically, if there are a lot of people (and therefore a lot of offers), you’ll want to go all-in with your highest offer. If there are only 2-3 people, though, you may go in lower and know you have some wiggle room. Because there were 9 other people making offers, we decided to go all-in. Our real estate agent thought we had a good offer, but also warned us that it would likely sell for more because of the income potential. (We’re also grateful he was honest and told us not to bid any more than we already had, as he didn’t think the house was worth more.) Like our first bidding war, we didn’t even make it past the first round. And here’s where the numbers may shock people: we went in at $140,000 over asking, and we still lost by $35,000.
Cait: That’s crazy!
KL: Yea, list prices on houses are basically irrelevant in Toronto. Actually, that’s not always true. Most houses are underpriced to spark a bidding war, but once in a while you’ll find a house that’s listed for what the sellers want. When you see something that’s accurately priced, you freak out and mentally add like $100,000 on top of that. It takes time and a lot of viewings to figure out what a house is worth, which is why it’s really important to not fall in love with the first place you see. Plus, if there’s one truth to the Toronto housing market, it’s this: a house is worth whatever amount a buyer is willing to pay.
Cait: Are you happy you lost the second bidding war?
KL: We would’ve been happy if we’d won, but it’s also fine that we lost. Looking back, the house was on a busier street, it didn’t have great curb appeal, the upgrades weren’t done exactly to our taste, and my partner actually wasn’t keen on having a basement apartment because he didn’t like the idea of having a stranger living in our house. We definitely weren’t willing to pay $35,000 more for it, even with income potential. But if our offer had won, we would’ve been ahead on a monthly cash-flow basis, compared to the house we ended up buying.
Cait: Let’s talk about the third and final bidding war you ended up in, then. Walk us through what happened.
KL: By the time we went into this one, we had built up the right mentality for bidding wars. After losing a couple bidding wars already, you can’t help but feel defeated, and you’re not exactly hopeful the next one will be a success. This mentality is both good and bad. It’s good because it prevents you from getting attached, and it helps you map out your plan from a strategic standpoint vs. an emotional one. But it’s a little depressing, too! After seeing so many homes, and losing two bidding wars already, I was emotionally exhausted and didn’t have any hope that we’d actually win this one – but we wanted to try.
We saw the property multiple times, first privately and then again at the open house. When we were at the open house, we saw a lot of foot traffic, so we knew it would be another competitive situation. I told you (and showed you) all about the house last week and we obviously loved it. I could tell my partner really loved it, because he upped our budget by quite a bit in the end. I also think we’d also just gotten to the point where we had to decide to go all-in – like really all-in, with as much as we could – because we just wanted to buy a house and move on with our lives.
This time, there were 14 offers! The listing agent gave every real estate agent a 5-minute slot to present, so our real estate agent and I (and Kingston!) went for a walk around the neighbourhood during that time. We didn’t feel great about our offer, this time, just because of how many offers there were. But less than 2 hours later, we got a callback saying that ours was 1 of 6 offers that were extremely close to each other, and asking if we had any room to improve.
When you go into the second round, you can do one of two things: leave your offer as-is, or improve it. Since there’s a chance your original offer was the highest one already, you can take the gamble and choose not to increase it. But we decided to improve our offer, because we really liked the house. Thirty minutes later, we got another callback saying that ours was 1 of 3 offers that were extremely close, and asking if we could improve our offer yet again. (A third round!) With the help of our agent, we were able to improve our offer a little bit again. The sellers also asked if we could move up the closing date by 2 weeks, which was no problem for us, because we were renters (didn’t have another house to sell first) and could move anytime. The date is what helped seal the deal, because we won!
Cait: What conditions did you release in your offer?
KL: When you enter a bidding war, you need to make a clean offer (no financing or home inspection conditions) or else there’s little-to-no chance you’ll win. So we released both, and decided to use the seller’s home inspection.
Cait: What are the risks involved with releasing both conditions?
KL: You usually don’t need to get a home inspection on a condo in Toronto – at least not new ones – so we felt fine about the first one. But for the houses, we just had to read through and trust that the seller’s home inspection was accurate. Some people still feel more confident commissioning their own inspection, but that can get expensive when you end up participating in multiple bidding wars.

Source: http://www.ratehub.ca/mortgage-blog/2014/10/team-case-study-on-winning-and-losing-bidding-wars/

If you find yourself in a bidding war for the house of your dreams, prepare to be flexible and accept that the seller is in control. How much the property is worth depends on how much the buyer is prepared to pay. In a bidding war, I can help you determine how much the house is really worth cause the last thing you want is to over-pay for a house. I'm an experienced real estate agent who knows the market and I can help you get the house of your dreams. So, contact me today!  


 
Randy Miller 
Broker  
Re/Max Rouge River Realty Ltd., Brokerage  
905-668-1800 or 905-427-1400
randy@randymiller.ca
http://whitbybrooklinhomes.com

Canadian Real Estate News: From west to east, a look at projected house price gains across Canada

Home sales, prices to rise

Canada Mortgage and Housing Corp. has released a new report with everything you could possibly want to know about projected sales and prices across the country, forecasting a “steady” showing nationwide next year, followed by “some moderation” in 2016.

Housing starts in Canada, it predicted today, will range next year from 172,800 to 204,000, and in 2016 from 168,000 to 205,800.

Resales next year will come in between 457,000 and 507,300, and in 2016 between 448,000 and 508,000.

Prices are particularly interesting.

Average prices this year, which, of course, differ widely across Canada, are expected to range from $401,600 to $405,400, which means a so-called point forecast of $404,800.

Next year, according to CMHC, prices will be between $403,600 and $417,800, for an increase in the point measure to $410,600.

Then in 2016, expect prices to range between $407,300 and $424,500, or a point forecast of $417,300.
West to east, here’s what CMHC forecasts in terms of average prices:

• British Columbia: Average resale price to rise to $566,300 in 2015 and $573,000 in 2016.
• Alberta: Average to rise to $407,800 and $417,500.
• Saskatchewan: Average to rise to $303,000 and $309,300.
• Manitoba: Average to rise to $272,600 and $278,800.
• Ontario: Average to rise to $435,900 and $443,800.
• Quebec: Average to rise $270,800 and $276,600.
• New Brunswick: Average to dip to $161,500 and $161,000.
• Nova Scotia: Average to rise to $216,000 and $217,000.
• Prince Edward Island: Average to slip to $157,000 in both years.
• Newfoundland and Labrador: Average to rise to $294,000 and $298,000.

These findings, of course, mask the wide ranges from city to city, which CMHC also looked at.

For example, the average in Calgary, forecast to jump 5 per cent this year to $459,000, should rise further, to $472,000 in 2015 and $483,000 a year later.

Source: By MICHAEL BABAD, The Globe and Mail,
http://www.theglobeandmail.com/report-on-business/top-business-stories/from-west-to-east-a-look-at-projected-house-price-gains-across-canada/article21379179/

Randy Miller 
Broker  
Re/Max Rouge River Realty Ltd., Brokerage  
905-668-1800 or 905-427-1400
randy@randymiller.ca
http://whitbybrooklinhomes.com
 

Ensure Moving in is a Pleasure, Not a Pain: How to Avoid Home Buying Horrors

 

Mark Weisleder, real estate lawyer, author and speaker, on how to stay out of trouble when buying a house:

Make sure your lender has done their appraisal of your home

Just because you are pre-approved for financing, it does not mean you will get your money on closing. There are always more lender conditions to satisfy, whether it is income verification, proof of down payment and a satisfactory appraisal of your home, to make sure you didn't overpay. Make sure you satisfy all requirements before you waive any finance condition. I have seen many cases where lenders have refused to advance money on the closing date because of incomplete information or problems with the home's appraisal. This can cause delays in closing, extra moving expenses and in worst case scenarios, a default in the deal where the buyer forfeits their deposit.

Visit the neighbourhood on foot

No seller will tell you about a neighbour from hell or problems with other homes on the street. They may also not disclose problems with their own homes or whether there had been a suicide or murder on the property. When you are doing your home inspection, have someone talk to your potential new neighbours and ask them directly if they saw any repair trucks at the home you are interested in, and whether there may be some strange people living nearby. It also helps to work with a real estate agent who is familiar with that neighbourhood as well, to avoid any surprises after closing.

Choose a home inspector carefully

The home inspection is a critical part of the process, so do your research. Make sure the company is registered before retaining them. The Ontario Association of Home Inspectors is a self-regulating body that defines qualifications for home inspectors, and grants the designation RHI, or Registered Home Inspector, to qualified practitioners in Ontario. Most inspection firms have a limitation of liability clause, which states that if they miss something that costs you money, they are not responsible. Ask the inspection company if they have ever been sued by a buyer. Also ask them whether they carry insurance in case they do get sued. Remember that home inspectors cannot see behind walls. In older homes especially, it is worth considering paying extra to check for moisture behind the walls, termites and drainage issues.

Go to City Hall

Visit your local building department and find out if any new developments are planned. New development may increase property values but also increase traffic. Check to see how many owners have applied for minor variances, to either build homes or additions that are larger than the by-law permits. This gives an indication of the future direction of this neighbourhood.

Include everything you expect to receive on closing

There is no such thing as too much detail. Insert clearly everything you expect to receive on closing, including window coverings, drapes, mirrors, closet organizers, TV brackets, garage door openers and even 2 sets of keys and FOBs in a condominium. If the seller wants to remove the chandelier, make sure they install a cheaper fixture before closing, so you do not enter a dark house when you move in.

Basement apartments must be legal

If the home contains a basement apartment and the income is important to you, make sure that it legally complies with zoning and the fire code by-laws. If it doesn't, then all it takes is one complaint from a neighbour and you may be forced to spend thousands of dollars to make it comply after you buy.

Check about your insurance premium early

Find an insurance agent right away and if possible, check what it will cost to obtain insurance as soon as you sign your agreement and before you waive any conditions. An insurance agent can check the history of claims in the neighbourhood and can let you know about claims for sewage back-ups or vandalism. If it has old knob and tube wiring, or the place used to be a grow house, you will have difficulty arranging insurance. This is important information that any buyer should have before deciding to waive their conditions and complete the deal.

By following these steps, you can avoid horrors after closing.

Purchasing or selling real estate is a complex process and every element of the transaction is best handled by an experienced professional. Don’t take chances, go with proven results and experience. Contact me today, I can make your purchase or selling worry-free.

 

 

Randy Miller
Broker
Re/Max Rouge River Realty Ltd., Brokerage
905-430-9444 or 905-668-1800
randy@randymiller.ca
http://whitbybrooklinhomes.com/