The Ad Game

I work with Buyers in all price ranges and am always faced with unique challenges.  Every range has its own.  The Ad Game is designed to make me look bad to my Buyers and make it seem like I am hiding something, which, trust me, I am not.  I really and truly want to find you that property in that lower budget as much as you do and with your specifications it can be a challenge but one I willingly accept, so trust me when I tell you to ignore the Ads. It’s a game.

Scenario:

Buyer, lower budget, needs may include 2 washrooms, parking, not a Condo or Townhouse and no maintenance (condo/HOA) fee’s.  Preference is a Detached but Semi – Detached better.  In a housing market like the Greater Toronto Area where the average is about $400 000.00 on the really lower end, this is truly difficult but not unattainable.  Again, challenge accepted.

The Ad Game

“Hot New Listing $320 000.00 Amazing 3 Bedroom home, renovated call: 416-555-1212”

“Great Townhome $279 000.00, 3 Bedrooms with walkout to yard, call: 416-555-1212”

My client’s see these ad’s, immediately call me and demand why I haven’t showed them the property – it’s exactly what they are looking for and in their price range!

The Truth

Ad # 1 Truth… while it appears to be local (the agent has a local area code consistent with the GTA) it’s not.  I call the Agent who’s not excited by my call because I am not a potential client but just another ‘agent’ and find that the property is actually located an hour outside of the GTA.  An hour. That’s a huge commute. Huge.  I provide the info back to my client and they are disappointed.  I go so far as to send them the actual MLS listing so they see I am not trying to keep them from this great property and they realize that I am telling the truth and no, they are not willing to commute an hour, in low traffic.

Ad # 2 Truth... again, it seems right up their alley.  A townhome, okay, we can settle for a townhome, it’s under budget, why haven’t you showed it to me?  So again, I call.  Get the MLS number and send it over so my clients can read the fine print – specifically where it states that there are maintenance fee’s over 300-400 dollars a month – something they specifically do not or will not pay for.

I am not suggesting that real estate advertising is wrong or that the agents are doing anything unseemly.  In fact as real estate agents, we are held to Federal Laws on all advertising and could face both criminal and punitive penalties should we mislead the public.  What I am stating is this.  If you see an ad that doesn’t provide all the information and the price does seem too good to be true, it probably is.

A good advertisement wanting to sell the actual property instead of wanting to provide potential clients for the agent will tell you where the property is: what area and probably what street.  It will let you know that if it’s a Townhome, there’s maintenance fees.  If it’s intercity, there’s a mutual drive.  It will in a few short words provide the pertinent information and provide an MLS number or website info so that you can get more information instead of the agent trying to get information out of you, when you call.

When I sit down with a potential Buyer I have a check list of info that I use to begin my search on the MLS system.  It includes price, area, bedrooms, driveways, maintenance fee’s, washrooms, square footage and any other relevant information that can help me search accurately.  Sure I will search outside the ‘box’.  If your price range is so low that there are no listings, I may increase the range search by 10-20 thousand because maybe there is a listing in there that has been so long on the market that it may be negotiable.  I may see a listing that only has 2 bedrooms, when you need 3 but there is a potential 3^rd bedroom in the basement.  I may decrease the number of washrooms you require because sometimes the search is about compromise but if you tell me you’d like to live in say, Mississauga – I am not looking in Whitby.  If you tell me that you require a home with its own driveway because you own a large Ford F150, I know that a mutual drive won’t work so I don’t include those in those I show you.

A responsible agent who cares about what their clients’ needs are will show them the properties as close to a match to their wish list as possible. 

Obviously there will always be compromises but our goal is to make you the most satisfied Buyer we possibly can.  I have access to all the MLS listings in the GTA long before you do and believe me, if a home comes up with your needs – you will know about it, that’s how the MLS is designed when used properly.

Don’t let the ads fool you, many are a game designed to bring the advertising agents new clients – and there’s nothing wrong with that, but trust in your own agent, they really are working diligently to find you the one that you want.

If you have any questions regarding real estate, are interested in interviewing me as your potential agent or would like some neighborhood info on prices, please contact me at your convenience.  Always here to help and always happy to meet new clients!

Nicole Kreutzberg

Realtor

Sutton West Realty Inc., Brokerage

(416) 388-7384

nicole@gtalisted.com

www.gtalisted.com

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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Scrap the Toronto LTT not Cap the Toronto LTT

TORONTO, March 20, 2013 -- In light of a proposal to cap the Toronto Land Transfer Tax, being considered by the City of Toronto’s Executive Committee today, the Toronto Real Estate Board (TREB) is restating its strong belief that this tax should be phased-out.

“The Toronto Land Transfer Tax should be scrapped, not capped.  We are encouraged that the Executive Committee is considering action on the Land Transfer Tax, but, not only is capping not enough to correct the problems that this tax is creating for our City, it could make this bad tax even worse,” said Ann Hannah, President of the Toronto Real Estate Board.

In a letter to the Executive Committee, TREB has pointed out that, based on reported details, the proposed capping scheme could create considerable uncertainty for home buyers, if, as proposed, surpluses in Land Transfer Tax revenue are dedicated for reducing the tax in the subsequent year.  Under this scenario, home buyers could be artificially encouraged to delay home purchases, thus interfering with the natural operation of the real estate market.  This concern has also been articulated by renowned municipal finance expert, Enid Slack of the University of Toronto, who was recently quoted by the media as saying “If you want to reduce the land transfer tax, why would you not just reduce the tax rate, and say the tax rates are going down, so there is some certainty for taxpayers going forward? With this method (capping), they’re not going to know what the tax rate is next year.”

“The best approach is a phased elimination of this tax.  The only way to truly solve the problems that this tax is creating for our City is to get rid of it; and with a predictable phase-out strategy, home buyers could make informed decisions and City Council could set a reasonable schedule, which would make market distortions unlikely, ” said Von Palmer, TREB’s Chief Government and Public Affairs Officer.

Research has proven that municipal land transfer taxes have a negative impact on home sales. The C.D. Howe Institute recently released an analysis of the Toronto Land Transfer Tax, which shows that this tax has hurt Toronto’s economy by dampening home sales by 16 per cent.  This is supported by a recent poll conducted by Ipsos Reid, which found that 77 per cent of GTA residents planning to purchase a home in the next two years are more likely to purchase outside Toronto specifically to avoid paying the Toronto Land Transfer Tax.  This poll also found that nearly seven in ten Torontonians, 68 per cent, support plans to eliminate the Toronto Land Transfer Tax.  

“Capping equals keeping. That’s not good enough for our City and it’s not what Torontonians want. The public has repeatedly made it clear that they want the Land Transfer Tax scrapped,” said Palmer.

(News Release originally posted by Toronto Real Estate Board) 

If you have any questions regarding this or any real estate questions, please contact me directly at nicole@gtalisted or visit our web page at www.gtalisted.com.

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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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MPAC - The Official Property Valuation

Municipal Property Assessment Corporation (Photo credit: Wikipedia)

As a homeowner you've probably received and looked over the official Municipal Property Assessment Corporation's valuation of your home.  In short, they value all municipal properties to arrive at a figure, or an assessed value, for which the individual municipalities calculate the property taxes for each individual property in their jurisdiction.

It comes down to what they say your home is worth and how much you will be paying in property taxes based on that value.

With many property values skyrocketing over the past few years, intuitively, you would think that the various municipalities would be readjusting their tax rates and increasing the amounts all across the board.  But not so, the increased trend in property values is phased in over time, with all properties being reassessed every 4 years as opposed to every time the real estate market gets hot. And rightfully so otherwise our assessments would be all over the place!

MPAC, as they are known, adheres to what is called the 'Phase In Program' whereby in order to provide levels of property tax stability and predictability, where markets increase in assessed value between January 1, 2008 and January 1, 2012, that increase will be phased in slowly over a four year period, from 2013 to 2016.  Whereas a decrease in value is applied immediately.

If you've received what you think is an unfair MPAC assessment you can challenge that valuation by going to www.mpac.on.ca and logging into "Request for Reconsideration" which will help guide you through the process.

If you'd like to know more about how and why you were assessed the way you were and would like to know more about the local assessments of your direct community, you can go to www.aboutmyproperty.ca

If you'd like to see how your home value stacks up to our valuation, please feel free to contact me at any time and I can get started on a free no obligation market valuation of your property.  Email nicole@gtalisted.com any time and we can see how our figures compare to MPAC's.

As always, if you have any questions regarding this or any other real estate matter, it's better to know than to wonder so please feel free to ask or visit our website at www.gtalisted.com

Nicole Kreutzberg, Realtor
GTA Listed Team
Sutton Group West

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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

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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Can You Hear Me Now?

When I first came into Real Estate I made the mistake of showing one of my first Buyers everything. I mean everything! We looked at 10-15 houses a day for two months, made 3 offers and were Feng Shui’d out of two others.  So, when is too much, too much?

It came down to being my mistake.

I didn't listen.  I didn't hear.  I didn't do enough background research to provide my clients with the right properties to view.  The right agent, the diligent agent, will whittle it down.  Believe when I tell you it was a quick learning curve for me.
Now, I listen, I ask questions, I get a list of must haves, potential compromises and ensure my clients are prequalified so we know how much money they can spend.  I set up Buyers in the MLS system so that all new properties are emailed to them each day and those properties fit their criteria.  If one comes up that they like, I check it out.  What’s behind the house – a hydro field? A highway? Is it a corner lot on a busy street?  Is it next door to a mall or a plaza?  Knob and tube wiring? This is the information a client needs before they head out the door and it’s my job to ensure the information they have is accurate and true.

When I bring clients to view properties, I've already checked the street for previous ‘solds’ and ‘for sales’.  I know what’s going on in the neighborhood, where the schools are and roughly how much property taxes are going to be.  I no longer arbitrarily show anything and everything because that means I am not listening.  I am not hearing.  I am not respecting the fact that my clients’ time is valuable.

Will I show 50 properties to one client? Absolutely.  Some clients need to see many properties before they decide or narrow down their wants and needs and that’s okay.  It’s a lot of money to spend and let’s face it, it’s not my money, it’s theirs.  I've also had clients who've seen two homes and picked one.  Sold.  Everyone is different, including Buyers.

I think in preparing to Buy, educate yourself.  Talk to your Realtor; begin receiving listings in the area’s you are interested in so that you can see realistically what those homes are selling for and what your dollar will get.  Realize that you need to have the cash for the deposit ready; you have 1 day to come up with that cash when an offer is made and accepted.  Be prepared to lose a bid if there are multiple offers and always have a number in mind that you will NOT go over and don’t let anyone convince you otherwise.

Finally, realize that in all the homes you do see, you are not buying the furniture, the décor or that owners particular style vision.  Paint is so easily changeable, fixtures easily replaced; flooring can be stained, changed or removed.  Look beyond the cosmetic and see the walls in Grey, Yellow or Beige (whatever your distinct style is) and try to picture your family running the through the halls or playing in the backyard.

It may take 50 houses before you find that right one or it may only take 1 or 2 the point is, a good Realtor is going to listen and hear what your wants and needs are and help guide you so that your valuable time is not wasted.

Put together a list of what you are looking for and don’t be afraid to discuss those items, it’s your money.  And one last thing, be prepared to compromise.  We cannot magically procure the Million Dollar Dream Home on a $200 000.00 budget, but we’ll try our best!

If you have any questions or are considering purchasing property in the GTA (Toronto), please contact me, Nicole Kreutzberg anytime at nicole@gtalisted.com and let’s talk.  I look forward to it!

Originally Posted at www.gtalisted.com/blog

Can You Hear Me Now? | Blog | Nicole Kreutzberg  & Laszlo Koos