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
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
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
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
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
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/
