Toronto Vs. Mississauga... Apples to Apples

A map of the Greater Toronto Area with the City of Toronto and the four surrounding regional municipalities. (Photo credit: Wikipedia)

According to recent statistics, the average price of the Canadian home is now a whopping $640 000.00  -- bordering if not surpassing on the unaffordable for the average family; yet the markets remain hot, hot, hot.

In the GTA, clients are often adamant on location, location, location - never considering what their dollar will get them if they peak outside the box for just a moment.  Often, I've client's give me amazing wish lists, price ceiling and they finish their dreams with one word: Toronto, not considering the possibilities of a Mississauga home or any where else for that matter.

Apples to Apples. 

Let's compare.  I've picked 2 properties in the same price category (under $640k) both a minimum 3 bedroom, with drive and both within 10 minutes of a Go Station (easy downtown access) and both within  about 15 minutes of each other.

First Property:

Location:  Alderwood, Toronto

Cost; $639 900.00

Type: Semi Detached, 2 Story

Bedrooms: 3

Bathrooms: 3

Basement: Finished

Drive: Private

Lot Size; 25 x 120

Taxes: $2942

Down payment:

$127 980.00  -- 20% to avoid CMHC Mtg Insurance OR

If you choose to only put down 5% the down payment in conjunction with new legislative requirements will be: $38 990.00 - which is 5% of the 1st $500 000.00 and 10% of the balance over $500 000.00

Second Property:

Location: Cooksville, Mississauga

Cost: $614 900.00

Type: Semi Detached, 2 Story

Bedrooms: 3 + 1

Bathrooms: 3

Basement: Finished with Kitchen and Separate Entrance

Drive; Private

Lot Size: 30 x 120

Taxes: $3636

Down payment:

$122 980.00 -- 20% to avoid CMHC Mtg Insurance OR

If you choose to only put down 5% the down payment in conjunction with new legislative requirements will be; $36 490.00 - which is 5 % of the 1st $500 000.00 and 10% of the balance over $500 000.00.

Estimated Closing Costs on Both Properties:

Toronto Home

Ontario Land Transfer Tax: $9273.00

Toronto Land Transfer Tax: $8523.00

Legal Fee's & Disbursements: $6000.00 (roughly)

Needed to close:  $23 796 -- plus your Down Payment

Mississauga Home

Ontario Land Transfer Tax: $9353.00

Legal Fee's & Disbursements $6000.00 (roughly)

Needed to close: $15 353 -- plus your Down Payment

Is there a difference?  The finances required to close a Toronto Property vs. a Mississauga Property is a cost differential of $8443.00.  Does that make a difference to you?  For most, $8443.00 is a lot of money and if you take into account that these properties are both within 10 minutes of a Go Train station and both within 15 minutes of each other, it can be a huge savings.  

Yes location makes a difference, I absolutely agree.  The wrong street, the wrong block, the wrong area -- all effect the value of a home but Apples to Apples, Buyers should always consider all of their options before they close their minds because one street, one block or one City abutting another, can result in a huge savings.  

My goal, as a Realtor, is to get you the MOST amount of home for your money with as many, if not all aspects of your 'Wants' and 'Needs', certain conditions apply of course as I am not a magician, all I ask is that you open your mind to the possibility that in the GTA, having the word 'Toronto' in your home address, also comes with a price which can mean the difference between entering the market now or waiting even longer.  

As always, I am here to serve.  

If you have any questions, please feel free to contact me any time via email: nicole@gtalisted.com or phone/text: 416-388-7384 and I'll be happy to chat with you.  

As of March 31, 2016 both of these properties remain actively on the market and I am available to show these properties to Prospective Buyers at any time.  Please do not hesitate to contact me to schedule an appointment.

Nicole Kreutzberg

Realtor

Sutton West Realty Inc,

Email: nicole@gtalisted.com

Website; www.gtalisted.com

Phone; 416-388-7384

The information written on this blog is meant for explanatory and illustrative purposes only and are rough estimations not necessarily reflective of actual costs which are all subject to factors not necessarily reflected here.  This Blog is also not meant to solicit Buyers or Persons already under contract.

You're Fired!

It’s probably odd to think that a Real Estate Agent will headline their blog with ‘You’re Fired’ and expect to be taken seriously, but I am.  Actually, since I work with a partner, I should say, rather, ‘Fire Us’.

Did you know you could?  Fire your real estate agent?  It’s not something we advertise – though I don’t know why not because you can and you should be told.  It’s that simple. 

Realtors talk talk talk so much, so fast and slide contracts in there and by the time a listing presentation is done, there’s a signature on the bottom line and a confused Seller who may or may not be happy with who they've just committed to and the Realtor walks away happy with your commitment and a listing but you, perhaps not so much.  Do you see what’s wrong with this picture?

Isn’t it YOUR home? Your Money? Your Dream?  Shouldn’t it be the other way around – Me Committed To You?

That’s my commitment.  Fire me, sorry, Fire Us.  If you don’t like our service, our commitment, what WE are doing for YOU, then hand us that Trump moment.  We've never had it happen and I won’t say yet, because if the day ever comes when I anticipate being fired because I have not stepped up to my commitment to my client, I’ll find a new career because Real Estate would no longer fit.

So what CAN I do for you?

Let’s start with:

• Exclusive Home Value Audits.  No obligation.  Whether you are curious or serious. 
• Customized Multi-Level Marketing Strategy for Your Home – a plan of action detailing what we are committed to doing and where we’ll be doing it. 
• Platinum Home Buyers Program – the listings will appear in your inbox before they’ve hit the public market.

Call me now to discuss how I can commit to you, your needs and your home (416) 388-7384.  If it’s easier, you can reach me by text or email to nicole@gtalisted.com.

No pressure. No obligation. No tactics. Just a conversation.

Nicole Kreutzberg & Laszlo Koos

Realtors with Sutton West Realty Inc.

Serving the Real Estate needs of: Toronto & the GTA in Ontario, Cda.

Email: nicole@gtalisted.com

Website: www.gtalisted.com

Facebook: https://www.facebook.com/suttonwestrealty

Twitter: https://twitter.com/GTAListed

This blog is not intended to solicit anyone under Agency Agreement (Buyer or Seller) & is not be considered legal advice but is the writers opinion.

Related articles

• A Picture Is Not Worth 1000 Words In Real Estate - Here's Why
• GTA Real Estate: Bubble, Bust or Buy?

Who Writes This Stuff?

I keep reading these posts about the things that your Real Estate Agent won't tell you.  There seems to be a trend of articles devoted to the cause and I'd like to know, Which Agent? Which agent is not giving you the truth? The right information? Honesty?  Because I'll tell you (the truth that is) - I don't hold back and frankly my reputation and career is based on honesty and transparency with my clients - not lying and misinformation.  Here's some of the popular items on the list that's been going around:

1. Open Houses - the articles suggest that there is no benefit from an Open House to the owner and that it's merely a way for the Agent to secure new clients.  Well first off, new business is great. Not going to lie.  It is in fact a great way to meet new potential clients but we don't do these based on that.  More often than not Open Houses are filled with potential Buyers who already have agents and thus, we spend our time - the whole weekend in fact, schmoozing Buyers who are not using our services but the services of their own Realtor.  Isn't the goal to sell?  We are also introducing your house to the neighborhood and more often than not, it's a neighbor who has a cousin who is looking in the area and this would be perfect.  It's called advertising.  The more exposed your home is, the better chance of it being sold quickly and for your asking price, if priced correctly. Isn't that the goal?  My weekends are not spent inside homes merely to prospect - I am there to sell - and sell YOUR home.  Send in a friend undercover if you don't believe me.  I'm okay with that!
2. Real Estate Fee's.  Yes they are negotiable.  We do talk about this and we will negotiate but honestly, if I don't have to put money on the table, I am not going to.  Do you? Would you arbitrarily offer to reduce or put money on the table in your own business if it wasn't asked, suggested or required? I'll tell you another secret - while I will offer up portions of my fee (absolutely!) the Buyer fee is usually not negotiable.  Agents are offering 1% - but what they are not telling you is that they are charging 1% but you are also still paying 2.5% for the Buyers end.  So 1 = 3.5%.  The dirty truth of it is that most agents won't show a property if the commission is less than 2.5% (sometimes 2%) on the Buyers side.  It seems greedy but in all honesty, Real Estate is the only business where we must pay to work.  A Realtor in Ontario realistically pays over $10 000.00 in fee's, insurance, associations and desk costs - all of which are mandatory in order to keep their license - whether or not they make a sale that year.  In addition - all related costs - marketing, gas, car, tools of the trade, cell phone etc are the sole responsibility of the agent as well.  It costs alot of money for the privilege of having our career.  And I do treat it as a privilege.  But please remember - the entire cost of marketing your home - from website, social media, advertising, feature sheets, all of the calls, emails, texts and follow ups - are solely the financial responsibility of the agent.  We do not get reimbursed.  We pay all expenses out of pocket.
3. There are Offers You Don't Know About. No. There are not.  We, in Ontario, are legally obligated (if not ethically) to report every single offer on the table.  It's not our property - it's yours.  Being sued for not relaying information is not how any agent wishes to spend their time.  I tell every owner about every potential offer.  It's not my decision.  Even if it's the lowest of the low - absurd - I will always tell my Owners.  This statement is just ridiculous.
4. You Don't Need a Real Estate Agent - You Can Do It On Your Own.  Yep - that's true.  You can. It may save you money and you may very well get it done and done well.  Is this how you want to spend your time? If it is, than great.  Anyone who feels they can FSBO (for sale by owner) their own property, I say, Power To Them.  Really.  I do know that as an Agent, I have access to so many things that you, as a lay person do not.  That being MLS, my website, my social media connections, all of the Agents in my office and in every single office of every agency in the province.  I have the knowledge and skill to price your home - using the same models and information as the Appraisers from the Banks and I have the knowledge and skill to go through your home and show you how it will best show.  It's my job to field all calls, appointments, inquiries and information regarding your property and it's on me if something goes wrong - which is why both my Broker and I carry huge insurance policies.  I don't know of many Agents who show FSBO properties to their clients and so based on that alone, you are missing out on a HUGE pool of Buyers.  Buyers who don't want to deal with a private deal and wish to leave the contracts and legalities up to their agents & lawyers.  Buyers who know that their Agent will garner all necessary information regarding zoning, easements, neighborhoods, history and the multitude of other seemingly unimportant pieces of information regarding a purchase that makes a Buyers time less stressful than it already is.  I am not suggesting FSBO homes don't sell - they do, absolutely, but for a huge stream of Buyers - they have no interest in the process and stick to properties with less stress.

I'm not saying that all agents are awesome, honest, driven or have your back - I just know that I am and I do and many of my colleagues do as well.   In all honesty, I went into real estate because of some shady agents we had used in the past and I vowed I would never disrespect any client the way I felt I had been.  That's the truth.

I honestly love people.  I understand people and mostly, I respect other people's money.  Looking for a property in the $500 000 range? I'm not going to show you  $600 000 homes, I am going to respect your budget.  Just divorced? I'm not telling anyone - it's your business and I'm going to help you find a property that will suit your new normal.  Just starting a family and looking for the move out of the core into the Burbs? I'll help you consider the long term plan - schools, neighborhood, transit and all of your other needs that you hadn't really thought about yet. My career, my goal is to ensure all my clients feel comfortable, welcome, valued and heard.  What's important to you becomes important to me - whether it's finding a yard for your dog, being near a mosque, church or house of worship.  No matter what your persuasion, orientation or inclinations - my job is about conversations.  I am your agent, it is not my place to judge anything.  My job is about Information. Honesty. Integrity and Listening.  

I'm always here, so if you're in the GTA & looking to Buy or Sell - give me a call.  I'd love to help.  It's why I do what I do.

As always, questions, comments or if you are just plain curious about the value of your home,

Email:   nicole@gtalisted.com,

Website at:: www.gtalisted.com,

Facebook page at: https://www.facebook.com/suttonwestrealty

Twitter: GTAListed 

Text me at: 416-388-7384

Nicole Kreutzberg

Realtor

This blog is not intended to solicit those under agency agreement and has been written as the agents own opinion not to be used as legal advice or otherwise

Related articles

• Enjoy Finding a Home with the Help of a Real Estate Agent
• Real Estate Agents are not Salespeople. We are Consultants.
• How To Vet a Real Estate Agent: 10 Questions To Ask Before Hiring

The Right Real Estate Agent: How Do You Choose?

Your home or your purchase is possibly going to be the single greatest purchase or sale you make.  Trusting that kind of money to someone is a big deal and should be treated as such. It’s that simple.

First: Talk to a few Agents, there’s many of us and like with any purchase you want to compare.  See who’s right for you. Who’s listening to YOUR needs and who understands what YOU want to do, where you want to go and how much you want to spend.  The Agent must respect YOUR money.

Second: Ask to see the numbers. As agents we all have access to the same figures.  The same Data, the same Sold statistics and when pricing your home, ask to see what has sold in your area and ask to see the homes in your area that are comparable to yours.  Comparing a bungalow to a 2 story is not accurate and not the same.

Third: Don’t be swayed by the Agent who gives you the highest price they can sell your home for.  They may be telling you what you want to hear and it may not be what the actual reality is.  Ask the Agent who tells you that your Detached can be sold for $500 000.00 when 2 others have stated $475 000.00, where or how they arrived at that number.  The biggest disappointment doesn’t happen when the For Sale sign goes up, hit happens 2 weeks later when they tell you that you need to reduce the price and then 2 weeks later they tell you the same thing again.  Next thing you know, you’ve arrived at the $475 000.00 price you were quoted by 2 other agents and it feels like you were mislead. 

Fourth: When you see the numbers, accept them.  You may think that your home is worth so much more but the reality is the numbers.  If Bungalows are selling for $500 000.00 on your street or neighborhood, chances are you will not be selling your bungalow for $600 000.00.  It’s all about the numbers and they don’t lie.  I’m not stating that you won’t make more, that you shouldn’t list it higher as every home has a unique and special quality to it that can translate in to higher sales figures but trust that the data you’ve asked to see is correct.

Please keep in mind that timing is also everything.  Will you generate higher offers in November verses April? Which months are the best to sell or buy?  Seasons are important and can impact the sales figures.  Homes sold in the spring typically generate higher sales figures than those sold in the late fall.  Selling in December is more difficult than choosing February or March.  There’s a Buyer and a Seller in every season, the question is, how many of them are there?

Fifth: Yep, Commissions are negotiable.  That’s the truth. Some agents won’t drop theirs and others do so without blinking an eye.  If you don’t ask and they don’t offer, you’ll be charged, as a seller, the “standard” rate. 

The reality is this, most agents will reduce their sales commissions when the Seller is also buying, what we don’t want to reduce is the commissions paid out to the Buyer of your property.  When a home is listed on MLS, what the Agents see and what you see are generally 2 different sets of information.   As agents we see what the commission rate being paid out to the Buyers agent is and if it’s less than industry standard, then many agents won’t show the home when there’s a comparable listing whose commissions being paid to the Buyers agent are full.  That’s the truth.  Is it right? No it’s not.  But the reality is, you want to expose your home to the maximum amount of agents and buyers possible and that may not happen if the Buyers commissions are reduced.  So when you see that sign or hear from an Agent that they will sell your home for 1% - what they mean is this: They will charge YOU 1% to sell but still will pay out the 2.5% to the Buyer for a total of 3.5%. 

Sixth: Finally, how do you feel with the person across from you? Did they listen to you? Did they show the figures? Will they be there for the Open Houses personally or will they send someone else? Did they explain the contracts to you so that you understand them? It’s about trust and about how you feel with that agent.  Instincts are important.

I’ve often been told I am an amazing Buyer’s agent because I listen, I follow through and provide all of the information.  I take the time to explain all of the contracts and I get answers when I am asked questions.  I typically don’t show my Buyer’s properties well over their budgeted price because I respect that it’s their money and when heading into a multiple offer situation, I have a game plan that prevents my Buyers from overspending.  I treat all of my clients with respect, I negotiate fiercely and finally I treat all of my clients as clients for life, not just one sale.  I put 100 percent into everything I do and if my Buyer is looking for a property that is worth $200 000 or $1 500 000, of if my Seller’s property is worth $175 000 or $2 000 000, everyone gets treated with the same amount of dignity, honesty and respect because that's just who I am and that’s what everyone deserves.

NicoleKreutzberg

Sales Rep.

Sutton West Realty Inc.

(416) 388-7384

www.gtalisted.com

nicole@gtalisted.com

Related articles

• Finding a Real Estate Agent Who Can Get the Job Done
• 6 Things Real Estate Agents Would Like For You To Know
• How Do Real Estate Agents Get Paid?
• How Real Estate Commissions Work

And the Forecast Is....

What's the forecast?

A fresh start to the year may be just what the softening Toronto housing market needed.

Mid-month figures for January put homes sales in Canada’s biggest city up 2.5% and prices up 4% compared with the same period in January 2012, the Toronto Real Estate Board said Wednesday.

Those figures appear to buck the softening trend the Toronto housing market has seen over the past year. Just a day ago, Canadian Real Estate Association numbers showed sales in the city sank 21.8% in December from a year ago, while prices climbed 6.0%.

While it may be too early to say if home sales in Toronto are poised to make a solid recovery, the figures are providing market watchers with a dose of cautious optimism.

“It will be important to watch sales trends closely as we move through the first quarter to see if some of the households who moved to the sidelines as a result of stricter lending guidelines are starting to renew their decision to purchase a home,” said Ann Hannah, president of the Toronto Real Estate Board in a statement.

Toronto’s housing market in the first half of January was buoyed by a strong performance in the semi-detached sector, where sales soared 12.2% and prices were up 11.5% compared with a year earlier. Meanwhile, condo sales continued to under perform, declining 4.4% in the first 14 days of the month, with prices down 3.3%.  (David George-Cosh) 

Ever since my first Stats class wayyyy back in University, it's been ingrained in me to look, question and consider all numbers and their source.  Who paid for the study?  What variables did they use to come up with these numbers?  In this case, what constitutes a sale?

It certainly appears that the Toronto Housing market is not softening and that we'll be okay, based on this article, but looking closer, two things strike me.  First, the figures are based on Semi Detached homes, semi detached homes generally indicate first time home Buyers.  Okay.  So those figures are strong, great.  But what does that mean for the Detached Sellers?  The article doesn't mention the fact that along with the new mortgage rules that came into effect in July 2012, the Banks and Mortgage companies had until December to fully comply thus, Buyers were still able to qualify and today, not so much.  If you live in a detached, where's those buyers?  

Second, what constitutes a sale?  Sounds simple enough but really, what constitutes a sale?  Are these offers being made and accepted in the beginning of January? Or, are these offers that were made and accepted in October and the properties are now closing in January, because really, who wants to move in December?  So while sales soared, did they really?

Figures aside, the new reality is this.  The GTA Real Estate Market is moving back to basics.  Over used terms like 'bidding war' have had their run and the focus will now be on realistically pricing homes without that line up of Buyers who are willing to bid high on uninspected for homes worth far less than the final sold figures.  Sounds like a sad day for Sellers doesn't it?  Not so.

While yes it would be great to sell high, have a line up of Agents and Buyers willing to pay big big money for that tiny little house you call home but the reality is, you'd be buying high as well.  Over pricing doesn't just trickle, it floods.  Sell High, Buy High.  If you are buying high, can you afford the new furnace or the cost of having to replace all the electrical when something goes awry after you've closed on a property you failed to inspect because the line up out the door to buy was long?  

Let's face it, not many win in an over priced market and now, it's back to reality.  Priced right a home will always sell.  Today's market is no different.  It means your Realtor will have to put in some work.  Marketing, open houses, flyers, phone calls and develop a more solid relationship with you, their client.  It also means that the people who come through the door to look at your home will be qualified and able to purchase.  

It's a good day for real estate as far as I am concerned because let's face it, I too am a homeowner and what happens in the market not only affects my career, but my property as well.

If you have any questions, big or small, please don't hesitate to email me at any time.  It's better to have an answer than to guess!

Take care,

Nicole Kreutzberg, Realtor.  Email to nicole@gtalisted.com

Original Blog Post can be found at:

www.gtalisted.com

Related articles

• Toronto home prices up 4% in January
• Condos take the biggest hit as home sales drop in the GTA
• Toronto housing prices to flatline in 2013: report
• Slower pace of housing sales will reduce price growth: Royal LePage
• Toronto home sales drop 16%