Real Estate & Real Life: A Sutton Realtor's Blog: buying

Showing posts with label buying. Show all posts

Thursday, October 15, 2015

Don't Let Your Castle Be Disrespected

English: Compulsive hoarding Apartment Deutsch: Wohnküche eines Messies (Photo credit: Wikipedia)

Hod Hasharon (Photo credit: Wikipedia)

On my daily trip to the dog park with my crazy Mexican Mutt rescue (oh he's a wild one!) I was listening to a fellow Dog Owner/Lover lament about real estate agents. Obviously when people talk about agents, I'm curious and interested, so I put on my listening ears.

At the park, I'm simply, 'Nicole, Barney Rubble's Human' (Barney is my dog). I don't advertise in casual conversation while playing with my dog what I do, it feels to pushy in such a playful setting.

Mr. L (I'll call him), an owner (of a gorgeous Doberman, I might add) was talking about agents being 'assholes', 'liars' and out for themselves and a buck. He was going on about meeting with 2 different agents recently and how ignorant they were, disrespectful and rude. I was engaged now. How on earth could 2 different agents be so horrific to the same person? I was starting to wonder if it was him. What did he bring to the table when meeting these agents? After gently stating that I am a Realtor, I apologized on behalf of my profession (which I often do - Thanks Bad Agents - because our job is not hard enough that I have to apologize for strangers as well!) and asked what his purpose in meeting the Agents was. Selling.

Mr. L lives in a home that he would like to sell and move out of the city. To be more specific he's lived in the house, on his own, with his dog for several years, In fact, he bought out his sister after his parents passed on and they were original owners. Gently, I offered that if he was interested, I would love to come take a look at his home, assess its value and we could discuss it from there. No strings, no obligations, no contracts - just a visit and a conversation. I gave him my card and I let it go. A few days later he called.

I of course did my research: current prices in the area, for sales, recently solds and had them all printed up. I ran his property through land titles, checked its size, etc etc - all things a Realtor should do before showing up to have a conversation about a home for potential sale.

I arrived on a nice sunny afternoon, was greeted quite enthusiastically by the dog and upon first glance, I knew what happened. Single man, who's been on his own for a long time, took over the family home after years away. There was a lot of stuff. A lot. Way too much for one person to handle, organize and keep up with. I wouldn't exactly say it was a hording situation, but it was close and it was over whelming. The agents who came before me, threw down a price, called the home disgusting, a mess, that he'd be lucky to get out. I cringed when Mr. L told me all this.

Certainly there were piles of boxes, a lot of 'stuff', rooms that were not really easily accessed but this was still HIS HOME. His castle. His respite and these were all of his things. Who is anyone to disrespect that? I was honest, in a nice way. I told him that in order to sell his home it would take a lot of elbow grease on his part in order to achieve maximum value. That who ever bought it would likely renovate (the entire home was original) and that it would more than likely be a renovator or contractor who purchased. I discussed with him the ranges in price for his area, the process of selling and really let him develop the timeline. It would obviously not be ready in a week or two - but as an Agent - that is really NOT for me to determine - it's up to my Seller.

Over the next month he worked diligently. Hard. So hard. I stopped by on a regular basis to chat, have a coffee, calm him down, cheer him on, bring him boxes, advise him on what ever he had questions about. I found quotes from garbage removal people, sourced out places for donated items, talked about how he could pare down items he had 3, 4 or 5 of (like full service china sets, of which he had 4). It was a lot of talking, coaxing, cheering, calming down and simply being there and listening.

The day he called to tell me it was ready, I was truly and utterly excited as it had been about a week since I had seen it last and for him to say the words 'ready' - I knew he was both exhausted and serious. I walked into an entirely new home. Well, not new, but WoW! I couldn't hide my awe, my amazement, my happiness for him that he was able to go through so much of what he owned and really pare it down. The home sparkled, it shone and it was more than presentable. I was so proud of him - and not in a 'looked down upon' way, but in a , ' You busted your rear and this is great' sort of way.

In the end, we had a few successful open houses and sold it. His final sales price was right in the range that I suggested it would be and he couldn't say enough about how nice I am. How kind. How understanding. How I never forgot about him and would drop coffees by for no reason. He felt respected and valued.

What's the moral of this story? I suppose it's simply this: don't feel less than your Realtor and don't let your Realtor make you feel less.

We are all experts at something and someone who has expertise in an area is truly an expert when they can impart their knowledge to you in a way that makes you feel like you are learning, instead of just listening. Do I know more about selling houses than my clients? Sure - it's what I do, but that doesn't make me a better person. It doesn't give me license to disrespect someone's home and environment. If the agent across from you makes you feel that way - makes you feel stupid, feel awkward, feel apologetic for your things or surroundings - send them out the door and find someone else who's willing to listen, respect and value the honor of selling your home, Being allowed in the door of a potential client IS an honor, if a Realtor doesn't see it that way, there are plenty of us to choose from who do.

Nicole Kreutzberg

Realtor

Sutton West Realty Inc.,

nicole@gtalisted.com

416-388-7384

Proudly Serving The Greater Toronto & Mississauga Area's.

Tuesday, February 3, 2015

Before You Renovate

Ah the February Freeze is on. When Winter seems like it's never going to end, the days are a touch longer, teasing us with sunshine that lies about the warmth outside.

It's usually right around this time of year homeowners begin discussing and considering major Home changes. Whether it's selling (Is now the right time? Can I continue to maintain my property? Do I want to downsize? Is it time to upgrade) - those kinds of thoughts, or, they look around and think, it's time to renovate.

Where oh where to begin?

Begin by asking yourself, what about your home do you like the least? What would you like to add to your home the most? What's the most dated and could use upgrading? That's your game plan.

Maybe you want to add an addition, an extra family room. Perhaps it's time to give the tired outdated shag rug and wood panelled walls in the basement the demo and create a new space you'll actually use. Or maybe, the kitchen has cooked it's last family function and its time to WANT to ask the family over again in style. Whatever the case may be, it's only for you to decide.

There are two general reasons to renovate. One is to sell. If that's where you are going, decide which features of your home are going to get you the greatest amount of return on investment. Two words: Kitchens and Bathrooms. Don't go all upgraded crazy. Don't put in a $5000 sink in a middle income area and expect that you'll see that back. Keep it realistic, simple yet elegant and modern. Go visit an open house or two in your area or an area similar to yours and see who's done what. That will give you an idea of where to start and proceed from there.

Second reason to renovate, to stay. This upgrade in your life is not necessarily about return on investment (though always keep in mind somewhere down the road you may want to sell and may not get all your funds back on renovations that are custom or personally modified to suit your own personal taste).

Whatever the case may be, before you hire, consider the following:

Perfection: Don't expect it. Many aspects of your renovation are done by hand. Either bricklaying, painting, installing floors. Contractors, even the experts are human. I'm not suggesting you settle for mistakes, but there's a way to deal with them and a way not to.
Budget: Set one. Don't try to figure it out as you go. Costs of everything add up really quick. On a kitchen reno for instance, you could break the bank if you're not careful because small items like cabinet handles, faucets, accessories like soap dispensers and backsplashes can add up really quick. Know your finances, set a budget and keep an eye on the over all picture.
Lowest Bidder: They are not necessarily the best for the job, even if they claim the price is low. There's a reason for a high bid and a reason for the lowest bid. Consider for a moment what those reasons could be. Is that who you want to trust your home, your single largest financial investment to? Here's an idea. Start with the best of the best. Get them to give you a written estimate - a cost break down of YOUR project and then use that as a template when interviewing other contractors. Recreate it in your computer but leave the costs out and ask who you are interviewing to fill it out. It's a great starting point.
Licensing: Don't assume the Contractor before you has one. Ask to see it. Ask to see their Liability Insurance and Workers Comp, info. Why get sued by a trade hired by your Contractor based on an assumption. That assumption could be costly and could cost you your home. A reputable Contractor will be glad to show it to you. An indignant one, well, there's a huge chance they don't have one. He's not the guy for you.
Time: It seems like a no brainer doesn't it? How long could ripping out walls, hanging some drywall and putting in some floor actually take? Longer than you think. It's not the work that takes the time usually, it's the supplies. Waiting for the dump bins to arrive in order to begin demo. Waiting for the various trades to come in to complete their tasks. The guy who does your drywall is probably not the same guy doing your floor. Schedules happen. Material takes time to order and arrive. Be patient and factor in about 6-9 months on average for a small addition or kitchen job, from start to finish. Don't forget - you need permits and those permits mean you require inspections and those inspections require waiting. Its the nature of the beast so make peace with it.
Be Open To Ideas: I'm not suggesting you completely change your design plan based on the tile guy telling you a fireplace would look great in your bathroom. But, be open. Sometimes the trades and your contractor have finished jobs where they've added a great design, storage or layout that they think would look great in your space. Listen. Think it through. Just be open. You don't have to change a thing, it's still your home and they still work for you.
References: The Contractor is going to give you some. Find your own. Absolutely they will provide you with their BEST jobs. Maybe those clients are family, friends or part owners of the business. Google them. Social media can really help you here so see if you find anything that is suspect. Not every one is happy with everyone's work and a good General Contractor may have a complaint, but, the question is, did they try to fix it? Did they take the money and run? Ask some important questions about timing, budget, quality. Society today reports everything on the net, take a look and see what you find.
Contracts: Saying it out loud is great. Doing business like your Grandpa did back "in the day" based on a gentleman's handshake - realistically - a thing of the past and while it potentially could hold up in court, you know what holds better? A contract. It details payment schedules, price, costs, timelines, who's responsible for what, insurance and licensing info. If it's not in writing, assume it doesn't exist. Do you really want to hand over a wad of your hard earned money to someone who could just disappear and claim they have no idea what you are talking about? It could happen and it does. Don't let it happen to you.

Keep this in mind before you begin your project. Renovations can be such an emotional rollercoaster which starts off exciting, flows into - Why Am I Doing This?, with occaissional meltdown and eventually you head in to the "I just want it done" stage and finally, it is. Stay the course, have a plan and know what and how much you are spending and you'll do just fine.

For any real estate questions, please, as always, feel free to text 416-388-7384 email: nicole@gtalisted.com or visit our website at: www.gtalisted.com

My partner Laszlo Koos & I are always here to help!

Nicole Kreutzberg

Realtor

Sutton West Realty Inc.

Tuesday, June 18, 2013

GTA Real Estate: Bubble, Bust or Buy?

With the amount of information circulating it's hard to predict just what our Real Estate market here in the GTA is going to do or how we're going to end up. Many of my clients say that it feels like a scary time in real estate. Do I sell? Do I rent? Do I buy? Can I even get a mortgage with the new rules in place?

The best time to make a decision is when you are informed, prepared and have a plan. Here's some information...

Take a look at this as reported CBC:

The Organization for Economic Co-operation and Development ranks Canadian real estate the third most overvalued of the 34 developed countries assessed by the group, based on two metrics tracking what homes cost compared to incomes and rents.The Paris-based OECD, which monitors and compares wealthy nations, recently released a report that ranks its 34 member countries based on two broad housing measures:

The price of the average home compared to what it could be rented for.

What the home costs compared to the average salary.

Check out our interactive map tracking house prices across Canada http://www.cbc.ca/news/interactives/housing-canada/

According to that analysis, Canada has the third most overvalued real estate in the developed world, just behind Belgium and Norway, which are deemed to have the frothiest real estate market under the OECD's terms.

Based on rents, Canadian real estate is overvalued by as much as 60 per cent, the OECD says. In terms of prices to incomes, Canada fares a little bit better, but the OECD suggests the country's real estate is still as much as 30 per cent overvalued.On the opposite end of the spectrum, the OECD says real estate in Japan, Germany, South Korea, Ireland and Portugal is undervalued. In almost all those cases, home prices should be higher than they are, considering rents and income levels.Based on the numbers, the OECD places Canada in the fifth of five baskets — one where real estate seems overvalued but prices continue to increase.

"This is the case in Canada, Norway, New Zealand and, to a lesser extent, Sweden," the OECD says. "Economies in this category are most vulnerable to the risk of a price correction – especially if borrowing costs were to rise or income growth were to slow."The latest data from the Canadian Real Estate Association indicates the average Canadian home was worth $380,588 in April — 1.3 per cent higher than it was in the same month a year earlier.

As reported by the Financial Post:

TORONTO — It’s looking like an unsettling spring in Canadian housing, a market that has proven far more even-keeled and less scary for investors in recent years than in the United States.In what is traditionally the best season of the year for real estate agents, Toronto agent Ecko Jay says the industry is seeing far fewer buyers, a result of tighter lending rules, high prices and fear of a bubble. In Toronto alone, sales dropped 40% in the first quarter from a year earlier, making homeowners and investors jumpy.

“Some people want to cash in and pull out now,” said Jay, a 26-year veteran of the Toronto housing market, noting some are spooked by worst-case predictions of a 20 percent drop in prices from current levels.

“They say, ‘Before it gets low, let’s sell,’” Jay added. “And some of my clients want to sell and rent, hoping that when it goes down they will pick up something at a better price. Nobody has a crystal ball.”But then there are Canadian policymakers, economists and market watchers who have the next best thing to a crystal ball. Their data and analysis point not to a bursting of the bubble like in the United States in 2007-08, when prices from peak to trough dropped 35$, but rather a gentle easing in Canadian housing prices, or perhaps just a momentary pause.

Naysayers believe Canada may be too optimistic and relying heavily on that old saw that Canada is not nearly as reckless as the United States. After all, the debt-to-income ratio of Canadians is at a record high, close to the levels experienced in the United States before its market crashed, and home ownership is at nearly 70$, also a record and five points more than its neighbours to the south.

But Canada does have some things going for it, most notably a move by the government to tighten mortgage lending rules four times in five years, most recently in July 2012, which has taken some buyers out of the market, dampening demand.“If you look at the developments over the last year in Canada and compare them to the situation in the U.S. before the crisis, there is a clear difference,” said Julien Reynaud, an economist at the International Monetary Fund who follows Canada.“It is not just a question of housing supply and demand; it is rather a difference in the system of mortgage finance.”Canadians have more equity in their homes than Americans did, the default rate is lower, the sub-prime market is tiny, and mortgage interest is not tax-deductible, so there’s no incentive to build up debt.

Finally, mortgages are structured as recourse loans in which assets other than the house are held as collateral. That makes Canadian homeowners less likely to walk away than their American cousins.

“What makes Canadian housing different makes it stronger,” says Tom Lewandowski, who analyses Canadian banks for Edward Jones in St. Louis.

And finally this from TREB (Toronto Real Estate Board):

June 18, 2013 -- Greater Toronto Area REALTORS® reported 4,620 sales through the TorontoMLS system during the first two weeks of June 2013. This result was up by 4.7 per cent compared to the first two weeks of June 2012. Year-over-year sales growth was driven by the regions/counties surrounding the City of Toronto. Home sales in the City were basically flat in comparison to last year.
“The expectation was for an improvement in home sales in the second half of 2013. Early June results are in line with this outlook. Many households have adapted to stricter lending guidelines and have renewed their search for ownership housing,” said Toronto Real Estate Board President Ann Hannah. “It is also important to note that new listings were down over the same period. With sales up and new listings down, market conditions became tighter. This supports the moderate to strong rates of price growth reported for most major home types, including condominium apartments,” added Ms. Hannah. The average selling price for the first fourteen days of June was $536,141 – up by 3.8 per cent compared to June 2012. “While price growth has been driven by low-rise home types this year, condominium apartment price growth has improved since March. Despite higher inventory levels, there have been enough buyers relative to available listings to support condo price appreciation,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

What's my opinion? I think we are in the midst of a very cautious market where both Buyers and Sellers are nervous. Nervous to Buy, Nervous to Sell. Sellers obviously want the maximum dollar for their homes while Buyers want the best deal possible. That statement will remain true no matter what the market does and as a Realtor, I will always adhere to getting the best value, best dollar and best deal to the best of my abilities no matter where we are in the cycle.

Do I trust the Condo market? Not so much. It's the one area, based on my expertise that here in the GTA I can honestly say I see as a tinderbox just waiting for ignition. I believe it will ignite and drop. But in the same breath - if you own a Condo doesn't mean you need to sell it, it just means that if you plan on selling it, my opinion is to make that happen sooner rather than later.

I personally believe it's time for a correction. With values soaring almost out of reach of most pocketbooks, at some point, something is going to give and over the course of the past year we've seen a slowing. What I sold in 2 days with multiple bids last year is taking much longer with less interest.

In the long run, there will always be buying and selling. There will always be people in need of homes and people with reason to sell them. As your Realtors, its up to us to make sure that we use every tool we've got to serve our clients to the best of our abilities.

If you ever have any questions regarding real estate buying, selling, home preparation or any type of real estate concern, please, as always, email nicole@gtalisted.com or visit the website at www.gtalisted.com

Nicole Kreutzberg
Realtor
Sutton-West Realty Inc.

Monday, February 4, 2013

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

Wednesday, January 9, 2013

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