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.

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GTA Real Estate Mash Up

Latest Headlines:

Reported by the Canadian Press Wed. March 19: Loonie lower, Bank of Canada chief says interest rate cut can't be ruled out

Reported by Globe & Mail Tues. March 18: First-time home buyers’ average budget rises to $316,000: BMO

Reported by the Toronto Star Wed. March 19: Real estate association trims 2014 home sales forecast as year off to slow start

Taken all togethor it certainly sounds like Mortgage rates will drop in the up coming Buyer's market where your first property will cost you more now than it did a few years ago.

Everything is all speculation until it is fact. It's that simple.  Interest rates MAY go down.  They haven't today though.  Eventually they will go up, it's the nature of the cycle.  When? Who knows.  Do you bank on the interest rate? No.  Bank on your income and your ability to make mortgage payments.  If you can afford a mortgage of say, $400 000 at 3.49% with payments that are $1994/month can you afford $2104/month? - that's the difference between a closed and variable.  Sounds simple and easy enough but you really need to make sure you can. When rates rise so do your payments.  Careful not to borrow so much that you max out on your monthly payment affordability.  You need a cushion.  One day that mortgage will come up for renewal - will you be able to weather that, should rates increase dramatically?  Don't bank on what could happen, just bank on what you know about YOU and YOUR finances and what the rate is doing now.  The rate will always go up and always go down.

First time home buyers average budget increases? Well ya. Of course.  It's called cost of living, inflation and the nature of the market.  No one buys property in hopes that it will depreciate so naturally prices all over Canada will nominally increase year to year.  What that percentage increase amounts to varies from City to City and area to area.  I think the biggest key here is 1st Time Home Buyer education.  

There's been a dramatic shift in today's generation from generations prior.  Today's 1st time home buyers want it now, want it all and want it cheap.  What ever happened to a starter? The one where the buyer works their way up, puts in some time and effort and slowly collects resources to renovate slowly as budgets permit, their first house.  Today, that first Buyer thinks they ought to be able to move into a 3 bed, with hardwood, granite, stainless, finished basement, attached garage with a fenced yard in a good neighborhood for next to nothing.  Why? Because they see it on HGTV.  Lower your expectations.  Realize the value of compromise and know that the first home is not typically forever.  It's the first.  It's the one that helps you see what you want next.  

Trimming the forecast for 2014 on home resale? Well glad they are finally becoming realistic.  As an agent, I find too often it's the media, not us, who fuels the fire.   Reported statistics and media create a frenzy of want, need, have to sell, need to buy, get in before it's too late, have to price it 100K over value... then the agent steps into the picture after frantic client calls and we must, please don't laugh, be the voice of reason. Yes sales were down in January in the GTA - why? Because it was freakishly cold and we had an unusual amount of snow.  It's quite simple.  But back in January, those same statistics people were reporting above average sales.  Why?  Stats are numbers.  Mathematical equations.  One large or luxury home sale skews those figures.  One home that is undervalued by $50K and then sells at 125% over asking, skews those home sales.  

I certainly wish the stats would compare apples to apples when they release numbers.  Show the figures for say, the 'average bungalow'.  How long on the market, average.  Average listing price.  Average sales price.  How many were sold.  Do the same for 2 story.  The same for luxury.  The same for condo's - 1 beds compared to 2 beds.   More often than not real estate statistics are a stew, what you are looking for are individual dishes.

In this media age all buyers and sellers are far more savvy & intelligent than ever before and that is most definitely a good thing but too much information, too much competing information, too many numbers and all the info becomes a mash up which does not create a more intelligent real estate client, but a more confused one.  

Finally, in the great words of Benjamin Franklin, "do not believe everything you read online, some of it is just not true".  Good guy that Ben.

As always, questions, comments or if you are just plain curious about the value of your home,
email nicole@gtalisted.com,
visit our website at www.gtalisted.com,
our facebook page at  Sutton West Realty,
follow me on twitter: GTAListed 
or text me at: 416-388-7384

Would love to help.

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

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Slow and Steady... There Will Be No Surprises this Spring!

I've been calling this for a while now folks, despite some interesting yet skewed TREB statistics reporting increases in sales over the Christmas period.

Flaherty has achieved his wish and that was to slow the market.  Sounds bad, but really, overall, it's a good thing.  His goal, which really has major economic impact, is to keep Canadians from over extending themselves and buying homes they cannot afford by tightening the lending rules.  By tightening the rules he is aiming to keep people out of homes they cannot not afford long term.  Overall, the impact is to bring down the over priced home and improve the qualified buyer and to keep Canada from digging the same debt ridden hole the Americans had.

As reported by T.Perkins of the Globe and Mail:

"Sales of existing homes in the greater Toronto area were 15-per-cent lower in February than a year ago, the local real estate board said Tuesday.

There were 5,759 sales during the month, down from 6,809 in the same month during 2012. However, the Toronto Real Estate Board, which represents the city’s realtors, noted that 2012 was a leap year and had one extra day in February. Adjusting to compare a 28-day-period last year to a 28-day-period this year results in a sales decline of 10.5 per cent, it said.

Either way it’s clear that the market has not rebounded from the steep slowdown in sales that occurred during the second half of last year. Finance Minister Jim Flaherty tightened the mortgage insurance rules nationwide last summer in a bid to stem the growth of consumer debt levels and house prices, amid fears the market was growing too hot.
The real estate board’s MLS Home Price Index Composite Benchmark price, which seeks to compare apples to apples by accounting for any changes in the size or types of homes that are selling, has risen by more than 3 per cent in the past year, the board said.

It added that fewer luxury homes sold this month. The average, unadjusted, selling price in February was $510,580, up two per cent from a year ago.

“Stricter mortgage lending guidelines that precluded government backed mortgages on homes sold for over one million dollars and the City of Toronto’s additional upfront land transfer tax arguably played a role in the slower pace of luxury detached home sales,” stated Toronto Real Estate Board president Ann Hannah, who has been speaking out about both Mr. Flaherty’s tighter rules and the land transfer tax as sales have sunk.

Sales over the MLS of existing condos in the downtown area covered by the 416 area code dropped 20 per cent this month. And the sharp decrease in sales in recent months is now catching up to prices, which were 4.7 per cent lower in February than a year ago downtown. Condo sales in the 905 area code that covers the suburbs surrounding the city were also down about 20 per cent, but their prices continued to rise.
When he made the rule changes to tighten the market in July, Mr. Flaherty cited Toronto’s condo market as one of the areas in the country he was most concerned about.

Detached home sales were down 16.9 per cent in the 416 area and 15.8 per cent in the 905 area, with prices still up by 0.1 per cent and 3.4 per cent respectively.

New listings in the Greater Toronto area came in at 11,052 this month, down from 12,592 last February." Globe & Mail, 3/4/2013

Any questions, comments or concerns regarding this blog or anything real estate related, please email nicole@gtalisted.com or visit our website at www.gtalisted.com  

Nicole Kreutzberg is a Realtor for Sutton West Realty Inc. a Proudly Canadian Real Estate Brokerage!

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Key Interest Rate Likely to Stay Unchanged for 2013

National Bank of Canada (Photo credit: Wikipedia)

And here's some good news for those looking to renew or apply for new mortgages this year:

The Bank of Canada lowered its growth forecast for 2013 today, keeping its benchmark interest rate steady at one per cent for the 19th consecutive time...."The slowdown in the second half of 2012 was more pronounced than the Bank had anticipated," the bank said in a statement posted on its website today.

In layman's terms, that's the bank's way of saying it is less likely to raise rates than it used to be.

"At a minimum that removes talk of 2013 hike risk and should cause a change in consensus forecasts," Scotiabank economist Derek Holt noted.

While now there are no hikes expected for 2013, it doesn't change the new legislation that took place last summer which was fully implicated by December 2012.

It's tougher to get a mortgage now than it was two years ago. Those 0 down mortgages are a thing of the past.

To recap the new mortgage regulations, here's what's changed:

Until the summer of 2008, it was possible to buy a home in Canada with a zero down payment (in other words, the entire cost of the home was borrowed), and to amortize repayment of that cost over a period of up to 40 years. Successive changes implemented by the federal government have whittled away at those practices. Borrowers are now required to have at least a 5% down payment on a residential home purchase. And, under the new rules announced recently, the maximum amortization period on a residential mortgage will be reduced from the current 30-year maximum to 25 years.

When a would-be home purchaser applies for mortgage financing, there are two ratios commonly used to measure the risk associated with the borrower’s potential debt. The first of those, the gross debt ratio (GDS), is the percentage of the borrower’s gross (i.e., before tax) income needed to pay housing-related expenses, including mortgage payments, property taxes, and the cost of heating the home. The second ratio, the total debt service (TDS) ratio, is the percentage of the borrower’s gross income needed to pay all current debt obligations, including housing related expenses. The latest set of changes announced by the federal government will require, for CMHC-insured mortgages, that the borrower’s GDS not exceed 39% and that his or her TDS does not exceed 44%. 

Put another way, where a borrower seeks to buy a home and obtain a mortgage with less than a 20% down payment, he or she must be able to show that paying for housing related expenses will consume less than 39% of annual gross income and that all current debt obligations can be met with less than 44% of annual gross income. A borrower who cannot satisfy those requirements will not be eligible for a CMHC-insured loan.

Many Canadians have taken advantage of recent increases in real estate values by borrowing against the equity they have in their homes, either by refinancing the mortgage or by taking out a home equity line of credit. Their ability to do so will be somewhat curtailed after July 9, as the maximum mortgage (or home equity line of credit) amount which can be borrowed on a refinancing will be limited to 80% of the value of the property. The current limit of 85% was set in March 2011; prior to that date, the limit was 90%.

Finally, the federal government will no longer be providing CMHC insurance on homes which are purchased for more than $1 million. Consequently, purchasers of homes costing more than $1 million will be required to have at least a 20% down payment.

It's all about planning ahead now. If you are considering a purchase, call your lender or contact your Realtor who can put you in touch with a lender and begin that process before you begin the search for a home. Nothing would be more disappointing than to begin your new home search, finding that perfect property and finding out you do not qualify for the funds necessary to close.

While some of the lending criteria now seems strict, its really the Federal Governments way of keeping Canadians from overspending and over buying homes they cannot afford while managing the debt that they do have. Nobody wants to be house poor.

As always, if you have any questions regarding real estate in any regard, it's better to have an answer than to wonder, so email me any time at nicole@gtalisted.com

Thanks!

Nicole Kreutzberg, Realtor

Sutton West

www.gtalisted.com

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Title Insurance | Blog | Nicole Kreutzberg & Laszlo Koos

Most Lenders today require Title Insurance yet most of us do not know what it is, what it does and what's the purpose. Here's the low down;

What is Title Insurance?

Title insurance is an insurance policy that protects you, the home owner, against challenges to the ownership of your home or from problems related to the title to your home. The policy provides coverage against losses due to title defects, even if the defects existed before you purchased your home. A title defect is a problem with the title which prevents free and clear ownership. There are many types of defects such as rights of way, encroachments (from neighbouring properties), unpaid liens, etc.

Title insurance policies protect you for as long as you own the property. It protects against a number of risks that a solicitor's opinion on title may not cover. These risks include:

• Fraud and forgery, including someone taking your title through fraud or forgery
• Encroachments that would be disclosed by a new survey (for example, a neighbour's deck being partly on your land)
• Easements (the right acquired for access to or over another person's property for a specific purpose, such as for a driveway or public utilities. This is referred to as "servitude" in the Province of Quebec) over the property that would be disclosed by a new survey
• Zoning non-compliance (i.e. where the property use does not meet the local municipal by-laws)
• Someone other than the home owner having interest (i.e. a previous owner of the property not being discharged from title)

Title insurance is generally purchased when you buy your home or when you refinance it, although it can be purchased any time after you buy your home. You will only make one premium payment when you first buy the insurance. A title insurer can tell you how to purchase the policy.

How Do I Know if I Need Title Insurance?

If you are purchasing or refinancing your home, you should discuss title insurance with your lawyer/notary to see if a title insurance policy is right for you. Your lawyer/notary can arrange the purchase of a home owner's policy.

Benefits of Title Insurance

Peace of mind

As the policy covers the items outlined above, you can rest easy knowing if there are defects affecting the title of your home that are covered by the title insurance policy, your title insurer will take steps to rectify the problem.

One time cost

The premium is usually due at the time of closing for purchases or refinances. Some insurers permit you to purchase title insurance at any time.

(Information courtesy of http://www.rbcroyalbank.com/mortgages/title_insurance.html)

Recognized Providers of Title Insurance:

Chicago Title Insurance Company www.ctic.com

FCT Insurance Company Ltd. (carrying on business under the name First Canadian Title) www.firstcanadiantitle.com

Lawyers' Professional Indemnity Company (TitlePlus) www.lawpro.ca

Travelers Guarantee Company of Canada www.travelersguarantee.com

Stewart Title Guaranty Company www.stewart.ca

As with all my blog, if you have any questions regarding this or any other matter regarding real estate, please do not hesitate to email me at any time. It's better to have an answer than to wonder! nicole@gtalisted.com

Nicole Kreutzberg, Realtor

Sutton Group Assurance Realty

(416) 388-7384

Original Blog can be found at my website:
Title Insurance | Blog | Nicole Kreutzberg & Laszlo Koos

While the East Struggles with Chill and Cold, the Bank of Canada is attempting to keep the economy warm and fuzzy.  Good new for Buyers and those carrying a mortgage.  Good News Always Welcome!  Read On...

The Bank of Canada reduced its forecast for economic growth this year, and said eventual interest-rate increases likely will be delayed.

Policy makers said Canada’s GDP would expand 2 per cent in 2013, compared with an October estimate of 2.3 per cent. GDP likely grew only 1.9 per cent last year, compared with the central bank’s fall  expectation of 2 per cent.

The change in outlook reflects Canada’s struggle to find a growth engine to replace a fast cooling housing market. It isn’t large enough to merit lower interest rates, but it is reason enough to keep borrowing costs lower for longer. The BoC stated at the end of its latest policy meeting that the economy now likely won’t grow fast enough to stoke inflation until the second half of 2014, later than previously thought.

Officials opted to leave the benchmark borrowing rate unchanged at 1 per cent, which is where it has remained for over two years, but included language that indicated worry that rising house prices and consumer debt posed a threat to our financial system.

While they indicated that a “modest” withdrawal of monetary stimulus remains likely over time, the BoC concluded that the “more muted inflation outlook and the beginnings of a more constructive evolution of imbalances in the household sector suggest the timing of any such withdrawal is less imminent that previously anticipated.”

(Ken Fadel, CFA, Cresent Mortgage Group)

If you have any questions, comments, concerns or would like more information on this or any other issue relating to Real Estate, please email directly to nicole@gtalisted.com  I'm always glad to help!

Original Blog Post can be found at my website: www.gtalisted.com

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Seniors & Today's Real Estate Market

So much of the market is focused on the younger generation, the first time home buyer, the new family and the newly single.  But what about our Seniors?  In reality, you make up the largest market share of homeowners today and deserve the respect and deference that comes with longevity and the hard work it took to dedicate yourselves to raising your families.  Let’s consider some issues, questions you may be asking yourself and what you should be expecting of your Realtor.

You’ve owned your home for 30, 40 or maybe more years and are now thinking it may be time to move on.  Why?

Stairs have become difficult to navigate, mowing the lawn is now a chore you are just not wanting to deal with both physically and mentally, shoveling snow is too much of a burdeon, taking out the garbage and all that general home maintenance that used to be so easy to handle is just not so easy anymore.  Can you still manage your daily chores like going to the market and making meals, bathing (slip and falls in the bath are so common and scary), or even cleaning?  Perhaps your spouse has mobility issues, you are too far away from your grandchildren or you’d like to spend more time down South Snowbirding and wish to relocate to something smaller and more compatable with that lifestyle.

The Senior lifestyle today is much different than generations before.  We live longer, healthier and have far more active lifestyles than enjoyed in the days of old.  Maybe it’s as simple as wanting to be more active and involved with the community and different groups that living in your current home doesn’t help you explore that.  Perhaps living in your community prevents you from getting out with new friends and exploring new opportunities and making the move to a more manageable Condo closer your friends, transit and activities will enhance and add to your life while you finally get to enjoy time off from the daily grind!

Whatever the case may be a good Realtor will treat you with respect, help you explore your options and will develop a relationship with you based on respect, patience and trust.  We can help council you and your family about your options.  Take a look at your long term needs and finances.  We can put you in touch with Financial planners who can assist in figuring out how to best invest your money long term in order to support the lifestyle that choose and our support doesn’t stop there.

As Realtors, we can help with so many other issues.  The idea of moving, packing, changing or cancelling utilities is intimidating and overwhelming.  We can help you with the details.  Put you in touch with the movers, packers and cleaners.  We can help you stage (or rework your home) so that it shows its best for sale and we will take all the time you need in helping you find your new home, the right one, the one we sat down and discussed.  We won’t push you.  We won’t talk over you and we won’t disrespect your specific wants and needs.

Be wary of the Realtor who doesn’t listen.  Who doesn’t take the time to explain the entire contract to you and asks for your signature before you truly understand the document before you.  Ask your Realtor for the recent sale prices of homes in your immediate area and for the prices of current homes for sale.  Before you sign on any dotted line, ensure you trust and the person before you and ensure they value YOUR business and time.  That you’ve been heard.  That nothing is moving faster than you want it to.  Make sure you have your Realtors phone numbers and contact information (including cell phone numbers) and make sure they are committed to updated you regularily.

It doesn’t make a difference if you are 20 or 75, Buying and Selling homes is stressful.  The Realtor you choose must understand that, be mindful of the process and ensure that all of their clients are dealt with integrity, respect, honesty and trust.

A good Realtor will navigate you through the process and make sure you understand and are okay with each step and stage.

If you’d like further information on Buying or Selling real estate in the GTA, please contact me, Nicole Kreutzberg at 416-388-7384 or email direct to nicole@gtalisted.com and I`ll be happy to help!  Or visit our website, www.gtalisted.com to start taking a look at your available real estate options!

Original Blog Can Be Seen at:

Seniors & Today's Real Estate Market | Blog | Nicole Kreutzberg  & Laszlo Koos

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Residential For Sale | 109B Wesley St, Toronto, Ontario | $897,000 | Nicole Kreutzberg & Laszlo Koos

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