Published Articles

Mortgage Article Published in Oshawa/Clarington & Whitby This Week
Lindsay: We are thinking of refinancing our home and with the recent changes we are concerned that it might not be possible. Can you explain the changes and how they will affect us, or anyone thinking of refinancing, selling or buying?
Rennie

Rennie: I seem to be getting asked this question from everyone I have met over the past week. The Federal Government has made 3 changes that will affect buyers, sellers and homeowners. They are; reducing the amortization term of mortgages, reducing the amount a homeowner can refinance their existing home and partially removing the insurance on lines of credit that are secured to a property.
The commonly held belief for the reason behind these changes have been made is that the interest rates for personal loans and mortgages may be going up and the Federal Government wants to limit some borrowing, in effect discouraging people from over-extending themselves with credit.
I will explain the changes in easy to understand language:
Reducing the length of Amortizations: Amortization is the length of a loan. A mortgage amortized for 25 years would take35 years to pay off if the borrower paid the basic monthly payment. A few years ago the longest mortgage available was 25 years; a borrower could take any term shorter if desired as long as they qualified. The shorter the amortization, the higher the payment. Not too long ago the Feds extended the available amortizations to 35 year. By allowing borrowers to borrow more money, the feeling is the Government is helping buyers take on too much debt. The current change reduces the amortizations to 30 years as a maximum. The numbers look like this: if a homeowner buys a home and has a $300,000 mortgage at 4% the 35 year mortgage would cost $1,322/mth. If the buyer qualifies for a maximum of $1,322/mth with the new changes they could only afford a mortgage of $278,000. Homeowners renewing their mortgages with 35 or longer amortizations are not affected by these changes.
Reducing the Amount a Homeowner can Re-finance an Existing Home: Re-financing homes has become a common way for homeowners to access equity. The government has made comments about people re-financing homes to buy boats and take holidays rather than doing work that will increase the value of their property. My experience, having sold homes for 24 years is that some people will borrow for “toys” but many re-finance to fund their children’s university and to invest. The recent change is a simple one: the maximum a homeowner can refinance their home drops from 90% of the value to 85%
Secured Lines of Credit: Over the past decade banks have marketed “HELOC’s – Home equity line of credit” These lines of credit are registered against a property and can be lines of credit used in place of a car loan, for instance, or simply a credit line for borrowing. The secured lines have been recently insured by the government (CMHC) so the bank is protected and their exposure has been limited in case of a default. The changes are that any credit line that is secured and has a fixed payment plan, such as a car loan with a set term is still insured. Any line of credit that has no repayment plan (most allow a minimum of 3% of the balance to be paid on a monthly basis) will be un-insured. What this means is the banks will have to raise the interest rates to compensate for their risk. 

All in all the changes are not overly dramatic and will have little impact on buyers or sellers. It will tighten up people refinancing their homes. These changes are not intended to slow the economy, but rather to encourage more reasonable borrowing. If we can learn anything from the challenges that those south of the border are facing, it would be that when lending practices are to “unstructured” people will find themselves in trouble.
I just wish they would have allowed the borrowers with squeaky clean credit and little debt to borrow differently than those who have a track record of high debt. Rennie, more info can be found about mortgaging at www.soldbylindsay.com

Ask Your Agent Oshawa This Week - February 23, 2011
QuestionLindsay, my husband and I are considering buying our first home but are confused about what costs are involved. Other than our down payment (we have 5% as a down payment) what other costs will we incur when we buy a home. 

Stella
Answer
Hi Stella, this is a very basic question that every new buyer asks when they are gathering information about buying a home. Also, with the changes in real estate many move-up buyers do not ask or are not informed by their realtors of the changes since they last bought a home.
The costs involved in buying a home are very specific and most apply to every home purchase. However there are a few items that appear due to the differences of how a buyer chooses to set up the home purchase.
Let’s start from the beginning of the home buying experience and work our way through the process to the move in date. Once you find the home you are interested in buying and place an offer, one of the requirements will be placing a deposit on the home. This money is seen as “good faith” money and is typically held in the trust account of the Listing Broker. The average deposits range from $1,000 - $5,000 locally. This money is held in trust and becomes part of your down payment on closing. Once the home has been secured, and if there is a condition upon Inspection, a home inspector will do the inspection and the costs will be in the $300 - $500 range. This charge will be paid for at the time of inspection.
Assuming the home passes all of the conditions and becomes a firm contract, (meaning it is yours on a date in the future) the next step is really left up to the lawyer. There are several items a lawyer will bill you for: Their fee, land transfer tax and HST /PST
The lawyer will require these fees to be paid somewhere within a week prior to closing, along with the balance of your down payment. (less the deposit already paid) Here are some local averages of what you lawyer will bill for:
- Lawyers fee: $1200 - $1500. (including disbursements)
- Land Transfer Tax: this is calculated on the price of the property. Examples to follow.
- HST/PST: this gets a bit complex, I will explain below.
- If the home is on oil heat the Seller will fill the oil tank and you will be required to pay for the tank of oil.
- Any “paid in advance” property taxes.
Lawyers fees range from lawyer to lawyer, and will be in the range of $1200 - $1500. I called Jane McCarthy from Palter McCarthy Law Firm in Oshawa and she indicated that her fees seem to be in the $1300 - $1400 range (including disbursements) and went on to explain that the disbursements include Title Insurance, fees for searching the title of the property and doing searches on the buyers names. (called executions)
Land Transfer Tax: is really calculated on a sliding scale. Here is the formula: .05% up to $55,000 add .01% from $55,001 - $250,000 and add 1.5% from $250,001 to $400,000 and add 2%. Therefore, a home purchased for $275,000 would be $275 + $1950 + $375 = $2600
HST/PST: HST is applied to all services. (lawyer’s fees, disbursements, home inspection services etc) PST applies to CMHC mortgage insurance. For a simple example a home being purchased for $250,000 with a 5% down payment the mortgage insurance would be $4750 and the PST on it would be $380. This would be collected by the lawyer. One thing to take into consideration is HST is not applicable to resale homes themselves, just the services.
Paid in Advance Property Taxes: this is one of the only “wild cards” in buying a home. If the seller has paid the property taxes in advance the buyer is responsible for rebating the seller all of their pre-paid property taxes the town/city hold on their behalf. In our area, property taxes are collected in 4 instalments but some homeowners prefer to pay them in advance. Another potential issue can come up if a bank is collecting taxes on behalf of a homeowner and paying the city directly there may be monies that need to be adjusted on closing.
All in all, the closing costs do not change from home to home so there is little to be worried about. The unknowns are the property taxes and HST/PST that will be based on the conditions mentioned above.
Stella, on my website at www.soldbylindsay.com there is a flowchart that steps you through the process of buying a home. You may find that useful. If you have questions about the legal side of this discussion Jane McCarthy can be reached at 905-576-7501. 

Lindsay
 

Ask Your Agent Oshawa This Week - February 23, 2011
QuestionLindsay, my husband and I are considering buying our first home but are confused about what costs are involved. Other than our down payment (we have 5% as a down payment) what other costs will we incur when we buy a home. 

Stella
Answer
Hi Stella, this is a very basic question that every new buyer asks when they are gathering information about buying a home. Also, with the changes in real estate many move-up buyers do not ask or are not informed by their realtors of the changes since they last bought a home.
The costs involved in buying a home are very specific and most apply to every home purchase. However there are a few items that appear due to the differences of how a buyer chooses to set up the home purchase.
Let’s start from the beginning of the home buying experience and work our way through the process to the move in date. Once you find the home you are interested in buying and place an offer, one of the requirements will be placing a deposit on the home. This money is seen as “good faith” money and is typically held in the trust account of the Listing Broker. The average deposits range from $1,000 - $5,000 locally. This money is held in trust and becomes part of your down payment on closing. Once the home has been secured, and if there is a condition upon Inspection, a home inspector will do the inspection and the costs will be in the $300 - $500 range. This charge will be paid for at the time of inspection.
Assuming the home passes all of the conditions and becomes a firm contract, (meaning it is yours on a date in the future) the next step is really left up to the lawyer. There are several items a lawyer will bill you for: Their fee, land transfer tax and HST /PST
The lawyer will require these fees to be paid somewhere within a week prior to closing, along with the balance of your down payment. (less the deposit already paid) Here are some local averages of what you lawyer will bill for:
- Lawyers fee: $1200 - $1500. (including disbursements)
- Land Transfer Tax: this is calculated on the price of the property. Examples to follow.
- HST/PST: this gets a bit complex, I will explain below.
- If the home is on oil heat the Seller will fill the oil tank and you will be required to pay for the tank of oil.
- Any “paid in advance” property taxes.
Lawyers fees range from lawyer to lawyer, and will be in the range of $1200 - $1500. I called Jane McCarthy from Palter McCarthy Law Firm in Oshawa and she indicated that her fees seem to be in the $1300 - $1400 range (including disbursements) and went on to explain that the disbursements include Title Insurance, fees for searching the title of the property and doing searches on the buyers names. (called executions)
Land Transfer Tax: is really calculated on a sliding scale. Here is the formula: .05% up to $55,000 add .01% from $55,001 - $250,000 and add 1.5% from $250,001 to $400,000 and add 2%. Therefore, a home purchased for $275,000 would be $275 + $1950 + $375 = $2600
HST/PST: HST is applied to all services. (lawyer’s fees, disbursements, home inspection services etc) PST applies to CMHC mortgage insurance. For a simple example a home being purchased for $250,000 with a 5% down payment the mortgage insurance would be $4750 and the PST on it would be $380. This would be collected by the lawyer. One thing to take into consideration is HST is not applicable to resale homes themselves, just the services.
Paid in Advance Property Taxes: this is one of the only “wild cards” in buying a home. If the seller has paid the property taxes in advance the buyer is responsible for rebating the seller all of their pre-paid property taxes the town/city hold on their behalf. In our area, property taxes are collected in 4 instalments but some homeowners prefer to pay them in advance. Another potential issue can come up if a bank is collecting taxes on behalf of a homeowner and paying the city directly there may be monies that need to be adjusted on closing.
All in all, the closing costs do not change from home to home so there is little to be worried about. The unknowns are the property taxes and HST/PST that will be based on the conditions mentioned above.
Stella, on my website at www.soldbylindsay.com there is a flowchart that steps you through the process of buying a home. You may find that useful. If you have questions about the legal side of this discussion Jane McCarthy can be reached at 905-576-7501. 

Lindsay
 

Ask Your Agent Oshawa This Week - February 16, 2011
Question
Lindsay, at a party on the weekend a few of us were discussing homes as an investment. Are they still a good long term investment. We were pondering buying a rental home to help pay for our sons university education. Is this a good idea for investing? 

Kamalla
Answer
Kamella: Great question and one that most who are considering an investment in real estate ask often; when thinking of buying a home for themselves or one for an investment. Over the past few years real estate has been through a changing market. The market leading up to about 2006 was a market that most people who were armed with a deposit, good credit and a job could make money in the real estate market. The market became unsettled after the credit crisis and since then, here in Canada, the effects are mostly due to fear of what is happening in other countries might also happen here. A good indicator of what the government thinks of values can be seen on your MPAC assessment. If you look at your statement you will see that they have reduced the assessed values from 2008 to the values they have set for 2010. To show you what really happened, as an example in Oshawa, the average selling price in 2008 was $207,000 and the end of 2010 the average had increased to $223,000. That is an increase of 7.7%
The Federal Gov’t has made some changes to financing properties and many see them as rules to calm the market or make it tougher to buy homes. The research I have done on why these changes were put into place has found that the government is trying to distance themselves from the earlier changes they made, making it easier to buy homes. This is a result of fear that the mortgage rates will increase and people will find themselves in trouble with credit. (2 of the 3 recent changes deal only with currently owned homes, not with buyers purchasing homes)
The market is moving along in a very stable way. January’s sales were down somewhat from the record sales made in January 2010 and we seem to be in a balanced market. Both buyers and sellers have great opportunity in this type of market. I have been involved in a few bidding wars so far this year and one home had 17 offers on it. That being said if a home is even marginally overpriced buyers are holding off and finding other homes with better features for value.
With the difficulties over the past few years behind us it will take buyers with vision and confidence in the marketplace to buy and hold, especially if they are holding long term for a child’s university fund. I ran across a story last week about a buyer who had confidence in the market when it was down 3 years ago. If we can remember 3 years ago it was a different market; we were worried about banks going broke and jobs being lost. Real estate was a tough sell. One buyer in Toronto “took the plunge” and bought a home off Yonge St. For $13.5 million. They set about renovating the home ($5 million) and severed a 100 ft lot off the side of the property. They just recently sold the lot for $6 million and the home for $17.5 million. I know these numbers sound exotic and would never happen around our areas, but it shows that a person who had belief in the real estate market and trust in the future was richly rewarded. 

Kamalla, you can find many articles and local info on my website www.soldbylindsay.com Good luck with your decision. 

Lindsay
 

Ask Your Agent Oshawa This Week - February 2, 2011
Question
Hi Lindsay, we are considering selling and buying this spring; how is the year starting off for sales?
Joyce.
Answer
Joyce, the easiest way of conveying the activity in the market is to look at what is called an Absorption Chart. This is a monthly snapshot of activity that quickly shows how many homes have sold and are on the market in a given month. The third thing I look at is something called “months of supply.” This shows me if no other homes were listed for sale, how many months would it take to sell off the current inventory. (this updated chart can be found at www.soldbylindsay.com) I break the Oshawa, Whitby and Bowmanville/Courtice into $25,000 ranges to mirror the searching method on www.mls.ca
This graph is useful to sellers by showing them how many homes are being sold in their price ranges and how many would be competition once their home is placed for sale – for buyers, it shows how many buyers are purchasing in the range they are looking to buy in.
Here are the best selling price ranges and not so strong price ranges in our area:
Whitby – What’s hot: $325-$350,000 11 sold in January and only 22 on the market.
What’s not: $275-$300,000 7 sold in January and 28 on the market.
Oshawa – What’s hot: $200-$225,000 20 sold in January and 59 on the market.
What’s not: $375-$400,000 2 sold in January and 26 on the market.
Joyce, this tool has been helpful for my clients when they are gathering information on the real estate market and just want a monthly snapshot to see how things are moving. I update it monthly at www.soldbylindsay.com I hope this graph will help you with your timing on when to make your move.

Lindsay Smith 

Ask Your Agent Oshawa This Week - January 19, 2011
Question:
Lindsay: How was the local real estate market last year? What is your forecast for 2011? I am reading that the Toronto area has had an amazing year, last year; how did the Oshawa, Whitby and Clarington areas finish up? 

Jette. 

Answer
Jette, thanks for the question. It seems to be one everyone is asking now that we can look back and forward. The Toronto Real Estate board ran this headline recently,:
The forecast for 2011 is excellent. Real estate changes hands on a constant basis and when you have a year like we did where, in Oshawa the number of sellers selling dropped by 14% that will be picked up in the following year. Many people want to move, however, they may put their plans on hold. It appears the sellers came to the conclusion that December was a busy month for sales so we had an increase in people selling. December 2010 had 8% more homes for sale than Dec/09. In fact my last sale for 2010 was done on December 31st and my first offer for the new year was Jan 3/11. The area we are living in is going through a process of reinvention. With the strength of UOIT, Durham and Trent Colleges, Lakeridge hospital the job market has shifted and many employment opportunities exist currently that we never dreamed would be available. GM hiring off the street also adds an “injection” of positivity locally. 

2011 will be a year of steady growth both in number of homes sold and in values. One economist stated that the explosion of real estate growth is over and I tend to agree with that statement; we are now into a balanced market where people who are realistic with their expectations will find new homes or sell the ones they have and move on with their lives. In the end it will take the efforts of a hard working, savvy and experienced Realtor to help them move from one home to another. Jette, more info can be found on my web site at www.soldbylindsay.com

 

Ask Your Agent Oshawa This Week - December 8, 2010
Question
Lindsay: We are considering selling and were wondering what your thoughts were on listing our home for sale in December. I have always thought it was a slow month. What do you think? 

Answer
Hi Judith, what a timely question. The trend that seems to happen every year in November is to hold off until the spring before a seller decides to list their home. However when we look at the statistics we can see some opportunity to start the marketing before the big guy and his reindeer fly across the horizon.
Let me start by saying that last year in December we sold 301 homes from Whitby to Bowmanville. So if the conversation comes up, you now know that over 300 families started 2010 off in new homes. The number of sales do decline as we move from Oct – December, but then so do the people who have their homes on the market at this time. Real estate sales are driven by supply and demand. If there is demand (301 sales in December) and the supply starts to dwindle then the sellers have the “upper hand” when an offer comes in. From November – December last year we saw the number of homes for sale drop by 54% but with 301 sales in total, the number of sales dropped by only 29%. This means it actually was easier for sellers to sell with fewer houses on the market to compete with.
Here are a few reasons to list your home with the holiday season approaching:
1. Most December and early January buyers are particularly serious and very likely facing some sort of deadline.
2. January is the biggest transfer month of the year and job transferee's use the holidays to house hunt.
3. Most sellers wait until spring or summer to list their home.  This means that during the winter months your property will have far less competition versus any other time of the year.
4. Homes show well when decorated for the holidays creating a sense of family and people are much more emotionally drawn to the house, emotion sells.
5. Many people take vacation around the holidays allowing more time to look for a home.
6. Remodelling, decorating, appliance installation and other services are more available and at less of a premium.
7. Lenders aren't as busy and can process mortgage loans faster.
8. Showings will be fewer and less intrusive, but more likely to be fruitful with motivated, qualified buyers.
9. With more time off people tend to search online for homes and if something seems interesting they have the time to see it.
10. Family members considering a move to be closer to relatives or more specifically grandchildren tour homes as they visit near the holidays.
Judith, I have always believed that the best opportunities happen when people do things opposite to what the masses are doing. With sellers in Oshawa dropping from 289 in October/09 to 146 in December/09 this shows me that to get more attention for your home when it is on the market for sale... November/December are excellent months for a sold sign. For more info on local questions about real estate in Durham region and their answers go to www.soldbylindsay.com and look for published articles.
 

Ask Your Agent - Oshawa This Week Published November 17, 2010

Question:
Lindsay; I was reading last week in the Oshawa This week about home inspections. I liked that you created a list of things home inspectors look for when doing an inspection. I have just purchased a home and I have to arrange home insurance. What are some of the things insurance brokers look for when insuring a home?
Sheldon 

Answer:
Sheldon, this is a question that comes up every time we sell a home. If you are placing a mortgage on a home one of the requirements all lenders want is proof of home Insurance. In “techy” terms this is called a “Binder Letter” and your Lawyer will ask for a copy of it in order to complete your sale.
I interviewed Jeff Netley, an Insurance Broker with Mccam Insurance Brokers in Oshawa and asked him what Buyers can expect when looking to place insurance on a home. Jeff Netley shared this thought, “when a client calls requesting insurance for a home I start with age, style of heating and the type of plumbing and electrical.”
Here is a list of items that Jeff gathers information on for the Insurance Company when placing a policy.
1 – Age of home: this opens the conversation and will quickly identify if there are any issues that need to be discussed. If the home was built in the 70’s it might have aluminum wiring or prior to 1930 it may still have knob and tube wiring that is active. This is a “catch-all” question and is a good starting place to gather details of the property.
2 – Type and age of heating system: what style of heating is used to heat the home and any upgrades to the system over the past few years. If the home is on oil, how old is the oil tank. (Insurers will not place a policy on an oil tank older than 20 years)
3- What style or type of plumbing piping is currently in the home: insurers love copper and plastic (ABS) piping. The issues with plumbing typically deal with lead and galvanized piping. These are areas to be aware of when it comes to placing insurance.
4 – Size and type of electrical service and delivery system: if the home is on aluminum wiring an ESA certificate is necessary to obtain insurance. (Electrical Safety Authority) Homes with services less than 100 amp are very difficult to obtain Insurance on and homes that have “knob and tube” wiring are next to impossible to insure.
5 – Age of roof: one of the questions that are asked is the age and condition of the roof. If the roof is in poor shape and/or nearing the end of its life cycle, an exclusion for any damage pertaining to the roof may be requested by the Insurer.
6 – Liability hazards: items such as fencing, decking, railings (both inside and outside) legality of use (ie: illegal or basement apartments), tenants and breaches of the building code can cause issues with placing a policy.
7 – Auxiliary sources of heating: if there is a woodstove and/or fireplace, was it installed according to the fire code? (a WHET certificate may be required) Is the woodstove ULC approved? (Underwriters Laboratory of Canada)  

Some of the situations/problem areas that will cause difficulty in obtaining insurance are:
- Homes that are vacant and will be for an extended period of time, oil tanks, (above or below ground) rooming houses and student residences, 60 amp services, knob and tube wiring and unapproved heating sources.
Things that are typically not asked for by Insurance Brokers are the existence of smoke or gas detectors, alarm systems, type and/or amount of insulation, mould or mildew issues and bars on windows . 

Jeff went on to explain how insurance is priced and why the costs have been increasing over the past few years. “The three starting points Insurers look for when pricing a policy are – 1) where is the home located. 2) What is the loss history of the applicant 3) What is the value of the home and contents being insured.” As an example of why insurance costs have been rising over the past few years we can simply look at a claim made on a finished basement. 15 or 20 years ago a flood or sewer backup into a basement would mean the insurer would repair any damaged walls (typically panelling) and replace the carpet. Current claims on the same type of damage may possibly include costs totalling over $20,000 in electronic components alone, along with removal of walls and flooring (due to concerns of mould) and repairs to basement “rec rooms” that cost in excess of $75,000 to build. The costs of claims have skyrocketed over the past few decades and rates have been increasing to cover these elevated costs. 

Sheldon, I have attempted to shed some light on the basics of Insurance, however I sell homes, I do not insure them. I would suggest calling a reputable Insurance Broker for a quote and a discussion of what unique qualities your new home has and how they will impact your policy. Jeff Netley can be reached at 905-579-0111 or at jeff.netley@mccaminsurance.com There is much more info on the home buying process and insurance at www.soldbylindsay.com

Lindsay Smith
 

Ask Your Agent - Oshawa This Week Published Octoer 27, 2010

Question:
Lindsay: I am curious about home inspections: As a real estate agent, when you are viewing a home that your clients are interested in, what is it you look out for to protect their interests? How does it differ with what a home inspector looks for? 

Francoise

Answer:
Francoise: thanks for the question. I, in fact attended a home inspection this morning and we covered a little about the thought behind your question. First let’s look at the time line of events that that determines when a home inspection happens. Typically a buyer looks at homes and when they find one they are interested in they make an offer. Once accepted, a home inspection is booked and completed.
Since the home inspection is done after the offer is accepted I have always felt it is my duty to help negotiate my clients a fair price based on the condition of a home. The home inspection really just confirms what we have already determined; however, sometimes a home inspection reveals deficiencies that become a concern to the buyer. Some of these issues are ones that were not easily identified prior to the inspection.
The top 5 items that I look for when I am viewing a home with a client prior to making an offer are these:
1 – Water: is there any evidence of water visible. We look at the foundation outside and then inside the basement to see if there is any evidence of efflorescence stains on the concrete or any staining on the panelling or the drywalls. There are many ways to determine if the basement has had some water issues.
2 – Furnace, wiring and plumbing: I will begin by saying I am not a licensed electrician, plumber or heating contractor but over the past 24 years I have become good at observing problem areas. What is the age of the furnace? What amperage is the breaker panel and does it have any double tapped breakers? Was the home built during the time aluminum wiring was being used? These types of observations will help identify, as an overview any problem areas.
3 – Roofing: This is a visual check and much can be determined from the ground. Are the shingles curling? Is there more than one layer? Do the valleys looks worn? Are any shingles missing?
4 – Windows: What is the age or approximate age? Old or new, do they appear to have leaked? If older windows (wooden) have they been painted regularly or are they showing signs of rotting wood?
5- General condition of home: Does the flooring need to be replaced? Wallpaper? Have the kitchen and bathrooms been updated or in need of repair? Is the exterior in good shape? Decking, fencing, landscaping, brickwork and aluminum, chimney and driveway – what condition are they in and do they need expensive work.
I interviewed Dan Silcox, owner of Amerispec Home Inspections and asked him the top 5 major issues he looks for when doing a professional home inspection and here were his thoughts:
“my inspection process can be summed up in three distinct areas: Structure, safety and operation.”
1- Structure: observation of the foundation from the basement to the roof areas and discussing any areas of concern. Looking for moisture, any settling, be it foundation and/or walls/roofing systems and identifying if the grade of the lot will cause any unwanted issues.
2- Operation: looking at and making comments about the heating system, amount and effectiveness of insulation and ventilation systems. Testing and identifying any issues with the plumbing and water delivery systems and the hot water tank.
3- Electrical system: viewing the main electrical service and any sub-panels and checking the distribution of electricity. Verifying if the system meets the basics of the current building code and discussing any problem areas with buyer.
4- Maintenance: discussing maintenance items as we make our way through the home. Furnace filters, the importance of keeping downspouts venting water away from the foundation, keeping debris out of the eavestroughing and even how maintaining a level range of humidity in the home will help to deter problems.
5- Educating the buyer: Why GFI outlets are important, how cracks in the basement foundation are/are not an issue, what truss uplift is and how it affects the walls and ceilings of the top floor of a home, how changing furnace filters will add years onto a furnace and air conditioning unit and many other items that save money in the future.
Francois, the roles of a realtor and a home inspector are somewhat similar but in many ways different. Think of a home inspector as a “independent 3rd party” who in a sense offers assurance that your decision is a sound one and the realtors role, one of coming up with a price and strategy for what you are purchasing. If a problem area is identified by a home inspector, one that was not taken into consideration when the offer was submitted you do have the opportunity to re-negotiate the offer based on the new information. This is why a home inspector is critical: they go deeper in critically viewing the property with experience that many realtors and buyers do not have.
When you are considering buying a home, having both a realtor and a home inspector with years of experience will ensure that you get your dream home at the right price and with few hidden surprises.
More information on the buying process can be found at www.soldbylindsay.com : Dan Silcox can be reached at 1-800-463-9457.
I hope this helps with your question.
Lindsay Smith

How will HST affect real estate once it is rolled out?

Questions I have been dealing with on a daily basis indicate that most people have little or no idea on what will and will not be taxed. This is due mostly to an ineffective information sharing initiative by the Provincial and Federal Govt’s. It almost seems that they want to pretend the impact on families will be minimal once it begins; however it will be quite dramatic. I believe that the people of Ontario will start to react when the cost at the pump goes up .08 cents a litre overnight.

So how will it affect home sales and purchases?

For starters, resale homes are not taxable prior to, or after HST being applied July 1^st.  However, the services used to purchase or sell homes are taxable. Realtor commissions, home inspections, appraisals and bank fees are subject to tax.  New home construction will be taxable with a rebate. (with the existing new home tax structure used for the application of GST one thing is for certain, most home buyers will be confused as to how the tax is applied) Other taxable services are: CMHC mortgage insurance fees, lawyers’ fees and disbursements, moving companies, status certificates, condo fees, and any other professional services.

New homes are a bit of a mystery as to how the new tax will impact their prices.  A conversation with Jane McCarthy, Lawyer for Palter/McCarthy indicated that to date the Provincial Govt. has not given clear direction on how a rebate will apply to new home purchases (there is a current Federal GST rebate that will not change).  Expect that new homes will increase in cost and the builder will build the new tax into the purchase price in many cases.

Residential rents are not taxable; however commercial rents will be taxable.  The latest information available indicates that residential rents which include utilities will not increase, and that the landlords will not be able to increase rents to cover the increase in their utilities.

One of my concerns with this tax is the impact it will have on retirees on fixed incomes. Take a retired couple living in a condo; they will see increases in their condo fees, utilities, internet services, investment counselling, holidays, memberships, repairs, home improvements... heck even funeral services will be taxed

I am including a copy of a handout that the government has created to show how the changes will impact residents of Ontario.

Any further questions please feel free to call or email me at customerservice@soldbylindsay.com

Ask Your Agent - Oshawa This Week - February 10, 2010
Question:
Lindsay: I keep hearing about foreclosures and Power of Sale bank sales; are they really a good deal and are there any things I should worry about if I buy one? 

Jackie 

Answer
Jackie: the most active email list I have is the one I send out with all of the weekly Power of Sale (bank owned) properties. (www.soldbylindsay.com on the home page for the list request) People who are looking for homes and even those who are just curious about real estate seem to be enthralled with these type of sales. I have seen some fantastic deals come across my desk with bank owned properties and also ones that are risky and overpriced. Several points about the pros and cons of buying a Power of Sale home are:
Pros:
- In some cases amazing deals
- Homes that might not have come on the market in a balanced economy
- Quick closing dates are usually available
- Some lenders may offer financing incentives
Cons:
- Homes come with no history (ie: improvements, upgrades and any issues)
- No warranties come with the home
- In some cases the prices might be on the high side
- Response time can be slow when making an offer (many banks require 3 or 4 days to look at an offer which can allow other offers to be placed on the home while you are waiting)
- In the event the owner who lost the home comes up with the arrears, an accepted agreement can become null and void (this can happen up to the day of closing)
- Many homes seized under these circumstances are in need of repairs and/or major clean-up 

Once a home is placed on the market by a bank they have an obligation to sell it for market value. The simple answer for this is that any monies left over after the mortgage, expenses and arrears are paid off goes back to the original owner. With this obligation some banks tend to list the homes a bit higher to limit their liability and in some cases I have seen many “sign-backs” to get to an acceptable price.
Jackie, homes that have been taken back by a bank or a finance company can be good deals but they are all very individual. I would suggest that you have your lawyer review the special clauses that the bank requires to be inserted into your offer) to ensure that you interests are protected. Banks like homeowners have different levels of motivation; in the event you find a bank owned property that is under market value I would suggest moving quickly on it. There are many buyers that are ready to “jump” on homes that appear under market value. I would suggest taking into consideration that if a home hits the market under Power of Sale it does not necessarily mean it is a good deal. Do your homework to establish the real value given the condition and offer wisely. I have included quite a bit of information on my website www.soldbylindsay.com with regards to bank owned homes.
Lindsay

Ask Your Agent - Oshawa This Week - February 3, 2010
Question:
Lindsay: I was recently pre-approved for a mortgage and am currently searching for a home, with a move in date hopefully in early summer. When I do find a home I like and am ready to offer on it, do I need to have a condition on financing if I am already pre-approved? 

Elaine 

Answer:
Elaine: This is a bit of a loaded question. My first question is, “what is your, (or the lender you spoke with) definition of being pre- approved?”In the past 24 years of selling real estate locally I have found that there are two common definitions of this word:
- Speaking with a lender at a bank or a mortgage consultant and having them work out, on paper what you can afford based on the conversation that you have with regards to your family income and debts. Once the proper calculation has been used you will be given a maximum value of a mortgage you qualify for.
- Speaking with a lender at a bank or a mortgage consultant and submitting to them a letter of employment, (or other equivalent proof of income) proof of down-payment and ability to pay closing costs. Once these items have been obtained the lender or consultant will submit them to a bank or lender along with a credit report. The lender will then send back a pre-approval for the buyer to keep.
I have seen many buyers think that they were pre-approved after going thru the first mentioned process when actually this does nothing more than make assumptions of their ability to obtain a mortgage. The 2nd method mentioned above ensures that the bank will actually fund the mortgage to the buyer. When lenders look at a buyer, they really are looking for two different items to commit a mortgage: credit worthiness of the buyer and proof that the home being purchased is worth what is being paid.
If the proper homework is not done there are risks involved for the buyer and a possibility that they may be turned down. Following the 2nd process takes the guesswork out of the application process. I have seen buyers run into snags over the years when applying for a mortgage for many reasons. Many of the reasons are things that have happened long ago or issues that have been long since forgotten. Some challenges I have seen are, credit cards that have gone unpaid, (even if for a few months, several years ago) forgotten loans such as furniture with no payments for a year, credit reporting mistakes, cellular/cable/internet/fitness club automatic withdrawal issues and lines of credit not being paid on time.
It takes just one or two issues for a lender to turn you down. With regards to most of the smaller issues, they can be dealt with to remove their impact, however with the proper work done to pre-qualify, these issues are dealt with, prior to an offer being accepted on a home.
I suggest to all of my clients to have a proper pre-qualification done before we search for homes and when we find that perfect home to still make the offer to purchase conditional upon a financing condition. This allows an extra protection for the buyer and unless there are unusual circumstances a financing condition should not weaken the offer. Buying a home is a serious decision: I would suggest you ensure that you are protected and that you deal with professionals to help with the small details that can cause problems if not taken care of correctly. 

Elaine, I hope this sheds some light on financing for your new home. More mortgage information can be found on my website at www.soldbylindsay.com

 

Ask Your Agent - Oshawa This Week - January 20th, 2010
Question:

Dear Lindsay: At a New Years Eve party a few of us were discussing the impact last year had on our homes and were curious about values; did they go up last year or down? With all of the talk of a recession how has this impacted my home? The three of us are all from the Oshawa, Whitby and Bowmanville areas.
Stephanie Raymond 

Answer:
Stephanie: I am guessing there were a few cocktail parties where the topic of conversation was looking back on the year past and reflecting on the changes, with home values and activity one of the hot subjects.
I did some reflecting last month as well: I turned 50 and came to the realization that I have been selling real estate for half of my life. Over the past 20 + years we have been able to expect some natural busy and slow times as we move through the year by looking at how the market moves thought the seasons. Last year re-wrote all of the rules. Coming out of the recession from 2008 the market was extremely soft in the spring, (when usually it is very busy) and by the beginning of June it seemed to rebound and we say one of the busier summers on record. Bidding wars, over asking price offers and fast market times were not uncommon. The values from the fall of 2008 to summer 2009 dropped and then as we moved into the summer and fall recovered.
 
All in all we ended up selling more homes in 2009 than we did in 2008. Here is how the individual areas finished up compared to the prior year:


Comparison of Year End Statistics 2008/2009
Area For Sale Sales Avrg Sale Price 2009 Price Change
Whitby -20% +8% $292,629 +1%
Oshawa -20% +1% $217,751 Same
Courtice/Bowmanville -13% +9% $243,704 Same
Totals -18% +5% $251,361 +1/2%
 
Stephanie, the real estate market is driven by supply and demand. Typically when the demand is greater than the supply the prices go up but this past year we saw fewer homes for sale and more sales, however in all three areas the prices stayed the same. As the market is always changing, if this trend continues, the values should start to rise as we move into 2010. The first buyer I am helping find a home this year was in a 3 way bidding war this past weekend. We were over asking price and still lost to another buyer. My thoughts on 2010 are that we will have a year with typical curves of activity. Busy winter/spring – active summer and then a rebound to a very strong fall. Hope this helps with your “martini” chat.
 
Lindsay 

Q:
Lindsay: We are beginning to think about buying a home. Can you explain why we should choose a bank and get preapproved.
Linda 

A:
This question actually came from a first time buyer seminar I presented at last night for the Bank of Montreal in Pickering. As simple as this question is, the group of 25 people needed help in understanding the importance of having a preapproved mortgage in place prior to finding a home.
In point form the benefits are:
You have a mortgage rate locked in for a period of time. Typically for 90 – 120 days. In the event the rates rise you still get the lower rate you locked in at.
By being prequalified you know exactly what you can afford.
A good banker can help you plan a strategy to save for a down payment.
Being prequalified also allows you to discuss the options available with regards to mortgage insurance, amortization, terms and if variable or fixed rates are right for you.
People at the buyer workshop seemed to think that by getting preapproved you were “locked-in” in some way. This is not correct. The preapproval process in no way commits you to a particular lender; in the event if you wanted to be preapproved at several lenders there is nothing preventing that happening. Also, there is no cost involved in the preapproval process. The group last night were surprised that getting a preapproval done is one of the best things they can do before looking at homes. There is no downside, it is more of a protection against the mortgage rates rising.
Another question that was raised by several of the attendees was based around confusion about the first time buyer rebate for land transfer tax. One couple (the woman had owned a home before and the man had not) were curious if they qualified for the land transfer tax rebate. The quick answer (which can be found at http://www.rev.gov.on.ca) The rules state that the rebate is applicable to the partner who is deemed a first time buyer. What this means is that in a couple where one spouse has owned a home and the other has not, 50% of the rebate is available. The rebate is only applicable to the first time buyer so half of the rebate can be claimed.
One topic that was covered that no one in the room was aware of was mortgage insurance. If your down payment is less than 20% the bank will need you to insure your mortgage. This typically is a fee added to your mortgage. (you need not pay it up front) Genworth is one of the insuring companies and two very interesting features they offer is insurance to newly landed Canadians and job loss protection. More info can be found at http://www.genworth.ca
More info on mortgages and a very detailed glossary of real estate terms can be found at www.soldbylindsay.com

Ask Your Agent - Oshawa This Week - October 28, 2009
Question:
Dear Lindsay:
I have been getting some conflicting messages from the media on how our market is doing. I am still reading stories about how badly the US market is doing, how are we in comparison?
Brett Ellis 

Answer:
Brett: Almost a day does not go by without one of the people I am dealing with asking the same question. To begin to answer your question I will quote from the Toronto Real Estate boards monthly update for the GTA:
“Existing home sales will finish strong this year, pushing through the 80,000 mark and moving in line with some of the best years on record.”
Lets compare that to a graph I viewed on a Realtors website from Florida: the percentage of all homes sold on MLS under distress or foreclosure are
June 66.3%
July 71.5%
August 86.75%
The market in the United States is still plagued by properties being sold, in record numbers under distressed situations. Here in Canada, where we call the process Power of Sale, the numbers are far fewer showing several different characteristics than our southern neighbours. Realistic lending rules for buyers, the necessity of down payments, a relatively stable economy and our entire banking system in solid shape have kept the real estate market moving and stable.
This is not to say we do not see any distressed properties. I send out a list of distressed properties to my clients once a week and this past week we had only 11 properties come on the market. The other major factor is that our market values have remained stable; in the areas of Oshawa/Whitby and Courtice/Bowmanville over the past 12 months our median home prices have remained at the same price. Looking at the Florida market state wide, they have seen a 24% drop in values from July/08 – July/09.
We have a stable real estate economy that is still a worthwhile place to invest your hard earned money. The components of our market that are negatively affecting us are job instability and the fear that what is happening down south will happen to us up here. I saw many people “fence sitting” in the fall and spring when the financial markets dropped and with the issues the manufacturing industry faced locally, but by May of this year the fence sitters started to take advantage of the slowdown. That was then and this is now, we are currently in a balanced market that offers equal opportunity for buyers or sellers. If you are considering a move I would suggest going to www.soldbylindsay.com for info on the buying process, get yourself pre-approved for a mortgage and get out there looking. I am sure you will find a bargin.
Lindsay
 

Ask Your Agent - Oshawa This Week August 2009
Question:
Dear Lindsay:  

My husband and I have been renting for 5 years and the other night we started to look at how much money we are spending in rent ($1,200/mth) and are starting to realize that we are paying our landlords mortgage off. What are your thoughts in buying vs. renting? 

Lara 

Answer
Lara: be warned that being a real estate broker my answer might be a little biased, but really if you have been renting for the past 5 years you have spent $72,000 on your rent. Roughly speaking, in the first 5 years of a mortgage you would have paid something like $25,000 off a mortgage; either your mortgage or your landlords mortgage. 

Buying a home is an investment on a few different levels. It is a financial investment, but also provides you with a place to live and raise a family. In the event you were to place a $10,000 downpayment on a home and the prices rise in a few years you have the value of the home going up with the market and will reap the benefits but also by making your mortgage payments will see the amount of your mortgage drop over time. Given that you cannot live in a mutual fund lets look at the big picture of ownership vs. renting within a few different price/rent ranges. 

Lets make a few assumptions; that the 5 year mortgage rate you get is at 5% - the real estate market increases over the next 5 years on average of 3% for 4 years and one year it does not increase – that you put the minimum down of 5%. 

Purchase Price Market Value after 5yrs Mortgage Reduction after 5 yrs Totals
Increase Value & Mortgage reduction Lost Rent if you don’t buy
$175000 $197000 $19600 + $41600 $72000
$200000 $225100 $19225 + $47500 $72000
$250000 $281300 $59400 + $59400 $72000
$300000 $337750 $33650 + $71400 $72000 

Lara, as you can see above if you were to buy an entry level home at $175,000 after 5 years you will have paid the mortgage down by almost $20,000 and the home will have increased in value by the same amount. This puts over $40,000 into your investment and offering you a comfortable place to live rather than spending $72,000 on rent that provides you with a roof and helps to pay your landlords mortgage down.  

For all of the “doom and gloomy” people that might offer advice that the market will not go up in value, with no appreciation over 5 years you have still paid between $19,600 and $33,650 off of your mortgage. Lara I have many tips and helpful hints on the buying process at www.soldbylindsay.com

Buying a home is a serious move. I would suggest sitting down and going over a budget, ensuring you have job stability and a downpayment along with the costs for closing. Once you are in your own home no words can describe the feeling.  

Happy hunting! 

Lindsay Smith
 

Ask Your Agent - Oshawa This Week July 1, 2009
Question:
Lindsay: my wife and I are thinking it is time to move from this apartment and buy a home. Should we go to a bank or mortgage broker first or wait until after we start looking for a home? 

Frank 

Answer:
Frank, in reviewing the questions I get about selling Real Estate, mortgage questions typically top the list. Getting pre-qualified for a mortgage is a benefit to you as a buyer on several levels. For starters it allows you to look within the range you know you can afford with the knowledge that the bank or lender has given you the green light to buy a home. It also allows you to make an offer on a property with a condition on financing and a pre-approval certificate to show the seller that you have been approved pending the bank doing their paperwork. This strengthens the offer you make to the seller. 

However, one of the most important reasons that a buyer would get pre-qualified is to guarantee a mortgage rate for a period of time. Typically, lenders commit a rate to a buyer for a period of 90 – 120 days after the pre-approval has been given. What this means is you are guaranteed that if the rate rises from the one you have been quoted during the 120 days you get the lower rate.(also, you get the lower rate if the rates drop) Here is a recent example of a client I worked with: 

- client was pre approved April 17/09 for a mortgage of $250,000 and purchased a property with the rate of 3.89% for a 5 year term.  

- had they waited till June/90 for pre-approval the rate would have risen to 4.49% 

The impact of this rate change over the 5 year term would have meant the buyer paying $5,000 more in mortgage payments. Frank, along with holding a real estate brokers license I am also licensed to broker mortgages (more info can be found at www.soldbylindsay.com) 

What makes your question timely is the fact that I have recently worked with a client who had their home on the market with another agent and had 3 offers presented with other agents all which were accepted. All of these offers were conditional upon financing and all 3 offers fell apart due to the fact that the buyers were not properly pre-qualified. This is unacceptable.  

There are two ways of pre-qualifying a buyer. A proper way and a inappropriate way.
The differences could be described as whether a home sold conditionally goes thru or not. A proper pre-qualification would be described as a process where the buyer meets with a lender or mortgage broker and supplies proof of income, makes a mortgage application and has a credit report done. This information is then sent to a lender and the lender commits an interest rate and term. The only missing component is the home that the buyer will purchase. This process cannot be done with just a phone call, a meeting with a lender rep without supplying the above documentation. There are no short cuts when it comes to ensuring you can obtain the financing once you purchase a home conditionally. 

My suggestion is that you see a bank rep. or a mortgage broker and get yourself fully pre-qualified before you go looking. One thing you don’t need when you are buying your first home is any surprises. 

Lindsay
 

Ask Your Agent - Oshawa This Week June 24, 2009
Question:
Lindsay, my husband and I are looking at buying a home and are getting lots of advice from family and friends. Some of are friends have said not to look at homes with only 2 bedrooms or ones with pools as they are too difficult to sell when we decide to move. Are these thoughts accurate: or just myths?

Carrie.

Answer
Carrie, the myth vs. fact question seems to be one of the best topics of conversation when family and friends are offering advice. There are many features a home can offer that can increase value; some even get back more than the investment and others can be a zero return or can take value away from a home. Here are some myths and realities when it comes to buying and/or owning a home:

- a 2 bedroom home is difficult to sell. This is not correct. In the mid 80’s when I began my career I saw that 2 bedroom homes were a bit more difficult to sell as the baby boomers were looking for more bedrooms. However, over the past 20 years things have changed where a 2 bedroom home is a plus for a sale. It does restrict the type of buyer but many in today’s market are looking for fewer than 3 or 4 bedrooms.
- homes with aluminum wiring are difficult to sell. This again is a fallacy. There is a concern with aluminum wiring in how it was originally installed or if there has been copper added to it. I am not an electrician but homes with aluminum wiring that have a Electrical Safety Authority certificate (like a clean bill of health for wiring) are no different to sell than homes with copper wiring.
- Homes with electric heat are difficult to sell. Again, on a yearly basis there are hundreds of homes locally sold with electric heat. Many mature buyers like the fact that they can turn the heat off in rooms that are not used daily so the costs can be less that oil or gas. One big difference can be seen by viewing your utility bills. I have both gas and electric in my home and many months the charges for using the gas (ie: delivery charges etc) are as much as my gas usage. If a home is on electric for both heat and hydro there is only one such charge. A word of caution: most people do not understand some forms of this heat so they shy away from it.
- A home with a pool makes for a tough sale. I have found that homes with pools in good repair are an amazing selling feature. I recently worked with a person who installed pools for his business and he shared that the average pool cost in today’s market is between $40 - $60,000. Many pool lovers are looking for a resale home rather than dig the hole themselves.
- The three most important things to look for in a home are: location, location, location. There is some truth to this but an updated axiom for this might go something like – location, features and affordability. A poor location is one thing that will cause a homeowner to move more quickly than many other features they are not comfortable with in a home. I would say that location is one of the most important deciding factors when looking for a home but it should be looked at more in the framework of “lets buy the home in the best location, with the best features that is affordable to us.”
- Buying a new home is a better choice/ buying a resale is a much better deal. This is an age old question. There are many new homes being offered by builders that are amazing value. Like a new car you get something that is fresh and new and in many cases you can choose your own colours, flooring and features. The downside is you end up paying for things like air conditioning, driveways, fences … the list goes on. With a resale home you get someone else’s dream home and choices. In many cases you need to redecorate and add personal touches to make it your home, however, these homes will come with things like air conditioning, fencing, landscaping and many other expensive features. I think it is best to explore both options and make a decision after your research is done.


Carrie, there are many myths floating around in the form of advice, some will be good and some a bit misleading, but remember some of the people offering advice are giving you solid information from their personal experiences. I have many tips and information on the home buying process at www.soldbylindsay.com.

Just remember to do your homework, enjoy the research and in the end I am sure you will find that perfect home that meets your budget and lifestyle.


Lindsay
 

Ask Your Agent - Oshawa This Week

Discharge penalties Q&A Published May 20/09 

Question

Lindsay: 

My husband and I own a home and are considering selling. We are just gathering info at this point and keep seeing the mortgage rates drop. Our friends have told us to break our mortgage and refinance. Is it worth it, I hear the penalties can been steep. Any advice will be helpful. 

June
Answer

Hi June, the question you ask has been one I have been answering for my clients for the past few years. Along with my Real Estate Brokers license I also hold a license allowing me to broker mortgages so I deal with mortgages and renewals on a daily basis.  

There is an expression, “prescription without diagnosis is called malpractice.” In other words I can give you some general information on renewing your mortgage early and the costs involved but much like a doctor cannot give advice without looking at all of the facts, without specific information about your situation and mortgage I can offer a direction to consider but not an exact plan.  

When the mortgage rates shift, either increase or drop dramatically there will be some winners and some people who will not be as lucky. When a person breaks a mortgage before the mortgages maturity date, the bank will charge a “discharge penalty.” This penalty typically either 3 months of the mortgage interest or what the lenders call an “interest differential.” This is the loss the bank will take if they break a higher rate mortgage and reinvest the money at the current rates. How the lenders choose which penalty they will charge is decided by which penalty nets more for the lender. 

A few other issues that need to be considered are: if there was a “cash back” taken when the mortgage was funded, the cash back amount is added to the penalty – if the mortgage is renewed within the last 3 months of the mortgage the lender can only charge the interest they are losing. (ie: if broken 2 months prior to the maturity they cannot charge 3 months penalty)  

Here are some examples along with a breakdown to show you if it makes sense to break a mortgage and pay the discharge fees: 

Example #1) Homeowner has $150,000 mortgage at 5.5% with 18 months left on a 5 year term. They want to renew early to take advantage of the 3.89% - 5 year mortgage rates,
- penalty to renew early - $2,340
- after deducting penalty savings over the next 5 years - $5,460 

Example #2) Homeowner has $200,000 mortgage at 4.75% - 15 months into a 5 year term. They want to renew early as well for a 3.89% - 5 year term.
- penalty to renew early - $4,230
- after deducting penalty saving over the next 5 years - $1,410 

Example #3) Homeowner has $225,000 mortgage at 5.25% - 25 months into a 5 year term. They want to break the mortgage and renew with a 5 year variable rate mortgage. (currently at 3%)
- penalty to renew early - $6,300
- savings in the first year - $3,432 (assuming the rate stays the same) 

June, as you can see by the above examples the savings can range from minimal to dramatic. The first example shows that the homeowner will save over $5,000 by renewing early, however they are coming close to the maturity of their mortgage. The second example has the homeowner paying the bank over $4,000 to renew early to save almost $1,500 and the third example is the hardest situation to project the savings. With a variable (or adjustable) rate mortgage the rate is set on a monthly basis so you are at the mercy of the market. This can be risky, but also, offers the best opportunity to take advantage of the lowest rates. I would advise you to call your lender, a professional mortgage consultant to gather information on your particular situation before you make any decisions. Just remember to break your mortgage means paying a large sum to the bank for the opportunity to renew for a longer period. More tips can be found on mortgages and real estate info on www.soldbylindsay.com

I hope this answers your question June, or at least has given you some things to consider as you begin to explore your options. 

Ask Your Agent - Oshawa This Week

Question

Dear Lindsay: 

I am in my 20’s and renting an apartment with my boyfriend. We would love to buy a home; both of us have good jobs and we have a down-payment but with all of the negative things in the news today we are wondering if we should just keep renting. What are your thoughts? 

Answer

Pamela 

Thanks for the question Pamela, you have voiced a concern that many people have currently. A way of answering it might be to explain what I learned on a beach recently. 

Ok, I admit I went to Florida this past December. However it was for a Real Estate conference to learn how to market property in a softening market. The U.S. Real Estate market is really upside down and my memory of this conference will be how positive and hard working the attendees at the workshop were. The main feeling can be summed up in a quote: “when you get to the end of your rope, tie and knot and hang on.” (Franklin D. Roosevelt)  

One of the experiences that fits into what is happening today in our market happened on the beach one afternoon before the conference started. I took an extra day to lay on the beach and that day I left my room and headed to the sand. I want you to try to visualize this porcelain white Canadian with his Billabong shorts skulking down the path hoping no one would see him. Honestly, I was like as white as the jet I flew south on, so hiding really was of little use. I walked along the boardwalk and took my place on the sand amidst the throngs of sun worshipers.  

Soaking up the sun for a while I then headed down to the water to take a swim. The water was around 64 degrees and there were quite a few people looking for shells and walking along the beach. I waded into the water and saw that some of the beach folk were looking at me in a funny way. I am sure they were thinking I was out of my mind as I walked into the water and then started to swim. A few minutes later a very interesting thing happened. I watched as one person cautiously waded into the water and then another and another until quite a few people were swimming. 

I thought about this experience for quite a while and came to a few conclusions. The main lesson I learned was that many people will wait for an individual or a leader to follow. If I had not taken a swim many of the others would not have known how nice the water really was and stayed on the beach. 

I might not be the brightest sun worshiper, but I do know how “herd” mentality works. I have seen it over and over in my career selling homes. The past few months have been tough ones for our area. The number of homes for sale are growing slightly and Oshawa/Whitby/ Bowmanville and Courtice really dropped in the number of sales from January - February. 

Buyers are similar to the people standing on the beach looking at the water. They are dipping their toes in but it will take a few “leaders” to get the movement going and to see the sales increasing. What encourages people to get out and buy? Confidence, lower prices and favorable mortgage rates. Well confidence comes when people feel that they can make an investment in a home and their investment will be secure. Given that since 2000 real estate in Oshawa/Whitby/Courtice and Bowmanville has grown by an average of 50%, real estate is a safe and secure investment. Mortgage rates have dropped from 5.5% to 4.12% dropping the payments of a $200,000 mortgage by $9,300 over a 5 year term. 

It is time to buy! If we had a crystal ball we would have bought all of the real estate we could in 1993 during the last slowdown. If we would have we would have seen our investment grow by 79%! We just need a “herd” of buyers taking the plunge and picking up some of the opportunities on the market today. Pamela, my recommendation is to do you homework, research the market and given you have secure jobs and a down-payment select a home that fits your lifestyle and budget. A decade from now you will be smiling. 

For advice on any of today’s real estate opportunities call me at 905 434 5222 or email me at linsmith@trebnet.com 
 

Ask Your Agent - Oshawa This Week March 25, 2009

Question

Lindsay, we are considering selling our home and moving up; and at a party last week one of our friends shared with us that they had recently turned down an offer because it was conditional on selling a home. What are your thoughts on a conditional offer such as this? 

Jenny. 

Answer

Jenny, this question gets asked by many sellers when I am placing a home on the market for sale and I can share with you that the answer changes as the markets moves from a sellers market to a balanced or buyers market. 

Questions during the listing interview that are common are: 

- what are the chances of us getting an offer conditional upon the sale of a home?
- if I accept a conditional offer will it slow activity on my home?
- can I still offer my home to other buyers once a conditional offer is accepted?
- If we accept a 2nd offer once our home is sold conditionally, and it is for more money, does the 1st offer have to match it?
- if we sell conditionally do other buyers know the price we accepted? 

My first thought is to ask the question, “why would a buyer buy a home conditionally?” In a market that is fast moving, some buyers are prepared to assume the risk of buying first without selling. Not all buyers, but some do. In many instances, buyers who buy unconditionally end up getting a better price and/or better terms. Hence the expression, “money talks.” When buying a home with an unconditional offer, the buyer is guaranteed that they secure the home; if they buy conditionally they run the risk of losing it to another buyer. My experience has shown that many buyers pay more on a conditional offer than a firm one.  

Conditional offers are more frequent in homes of higher value than they are with first time buyer homes. However, in the past month I have had an offer presented on a townhome I had for sale and we turned it down due to the condition. It makes sense that as the market slows, and the selling times for homes are increasing that homeowners are warming to the thoughts of offers with a home sale condition. As a seller, when a conditional offer is presented, typically you expect to get a higher offer. If “money talks” then “conditions cost.”

As an experienced agent, when a conditional offer comes in on one of my sellers homes and we are prepared to deal with the offer, the first thing I do is to tour the buyers home and do a market evaluation on the property to be able to advise my sellers on the salability of the home. A conditional offer is only as good as the salability of the buyers home and the advice I offer is based on how well the home is priced, it’s condition and the location of the property.  

Once a conditional offer is accepted, the price is kept confidential and not disclosed. All conditional offers have what is called an “escape clause” in them, allowing the home to be offered for sale after the conditional offer is accepted and in the event another offer is accepted by the sellers, the 1st buyer is given a notice to remove their condition. (this period is typically 24-48 hours) To answer the question about a conditional offer slowing activity I am of two minds: in some cases it will and in others it will not. If there is great selection for a home such as yours, it might slow activity. Agents may choose to show homes not sold conditionally given that the process is easier. If your home is unique, or if there is little competition then the number of showings should not decrease at all. This question is more specific to the home and the current market activity. 

If you are sold conditionally and a 2nd offer comes in, the details of the first are kept private. Therefore, the 2nd buyer offers what they feel is market value, and in the event the offer is accepted and is higher than the first, the first buyer still has the opportunity to firm up their offer at the lower price. A common misconception is that they have to match the 2nd offer.  

We are seeing more and more conditional offers in the marketplace today than in the previous years. I have found that there are very few hard and fast rules when it comes offers be they conditional for any reason. I tend to look at each situation and with an advisory/consultative approach offer direction that best meets the needs of my clients.  

I hope this helps with your gathering of information and Jenny, for more tips on selling in today’s market go to www.soldbylindsay.com

Ask Your Agent - Oshawa This Week - March 18, 2009

Question

Lindsay, I am considering buying a home and am wondering what the pro’s and con’s are of looking at Power of sales. Are they worth considering and if so are there any things to be aware of? 

Joe 

Answer

Joe, this is a question I am asked many times by the buyers I am talking with as they do their “homework” in the search of finding a home. Firstly, I would like to give you some definitions and the reasons why homes are being sold under power of sale. 

There are several ways of a property being taken back by a lender: one is called “power of sale” and the other process available is “foreclosure”. Foreclosures are rarely used in our area so lets concentrate on “power of sales”. 

Power of sale – this is really a clause inserted into a mortgage document that allows the lender to seize the property from the homeowner and sell it when the homeowner defaults. The action can be brought on by non-payment of the mortgage. (there are other reasons a home can go through this process but for this article we will deal only with mortgage non-payment)  

Once a homeowner goes through the power of sale process and the lender or bank recovers the property the home is placed on the market with a Realtor. This process can happen quickly or take a long period of time. The lender prices the home based on appraisals that have been done on the property, and they are under an obligation to get market value for the home. Any monies left over after paying arrears, costs and the mortgage itself are returned to the homeowner. So in a nutshell the bank is just trying to get their money back and anything left over gets returned. 

Pro’s of buying a Power of Sale: the opportunity of getting a better deal that you would get from a home owner owned property. 

Con’s of buying a Power of Sale: There are quite a few issues with purchasing a home in this manner. The home is purchased with no history or warranties. This means that you have to do you homework as there is no owner disclosing any defects in the property, the age of any renovations or any warranties on any improvements. The most important issue with buying a home in this manner, is that the original homeowner can “redeem” the property up until the day of closing. This means if they come into enough money to pay back the lender all of their costs and mortgage they can get their home back. This can happen even after you purchase the home. (not to alarm you Joe, in 24 years I have never heard of a person redeeming) 

Another issue I have found, is that many of the homes I have shown that are being sold under power of sale are usually in need of repair or at best some work. People who lose their homes sometimes lose interest in taking care of them so you might prepare yourself for some work once you get into the home.  

Buying a home under power of sale is a bit more complicated than a regular home with happy homeowners. The process usually takes a bit longer, dealing with a bank rather than homeowners and more paperwork due to the process. I would highly suggest you have a lawyer advise you once you get involved with an offer for a home under power of sale to ensure your interests are taken care of. I have been sending out weekly power of sale email blasts to many buyers over the past few months and some have found some amazing deals. For more info on power of sales or distressed properties go to www.soldbylindsay.com

Ask Your Agent - Oshawa This Week - Published March 11, 2009

Lindsay: I am a first time buyer and am thinking about buying, but still I am quite nervous about talk of the recession. You have been around for a while, is this a good time to buy? How does the market today compare to the last recession in the early 90’s? 

Mel 

Hi Mel, thanks for the question about today’s market. I have been comparing the current market to the one in the early 90’s over the past few weeks prior to your question and have found some interesting data. Having gone thru the boom of the late 80’s and the recession of the early 90’s, I have seen pretty much every type of market the economy can toss at an agent. 

To answer your question about buying now, I feel that this is the best time in the past 15 years to purchase a home. The people who most benefit from the current market are first time and move up buyers. Homeowners who are downsizing are a little more at risk due to the fluctuations in values in the different price ranges. I did some historical searching and found affordability better today than is has been in almost 20 years. Here is an example 

Historical sale 1991
Semi detached home sold on Vancouver Cresc.: April/1991
Selling price: 130,000
Assume buyer uses 5% down – mortgage is $123,500
$123,500 at the current rates (April/91) 13% = $1,361/ Month  

Recent Sale 2009
Semi detached home sold on Vancouver Cresc.: January/2009
Selling price: 166,000
Assume buyer uses 5% down – mortgage is $157,700
$157,700 at the current rates (Jan/2009) 4.49 = $872/ Month  

The homes used as comparables were a few doors from each other on Vancouver Cresc. and you can see that the increase in value for homes has been $36,000 but with today’s current rates the cost difference in carrying the mortgage is $489/ month. This is huge! If you take a 5 year mortgage the savings is $29,000! So we know it is cheaper to carry a home but if you are choosing between renting and buying it might be difficult to find a home to rent for around $1,000/mth and if you did, 5 years from now you would have spent $60,000 with nothing to show for it. 

Markets come and go; they fluctuate and one constant I have noticed is that when the media is promoting “doom and gloom” many people feel that things will never change - but they do and the people who take advantage of markets like this end up winners.  

I will leave you with a great Canadian quote from Wayne Gretzky: “a good player plays to where the puck is.. a great player plays to where the puck is going”. The people who are the most successful with real estate buy knowing the values “are going” – UP!
They always do. 

Lindsay 
 

Ask Your Agent - Oshawa This Week - Published March 4th, 2009

Question:

Lindsay: 

I am a homeowner in Oshawa and read recently about the Federal Tax Credit for renovating your home. Can you share with me how the program works?  

Roland. 

Answer

Roland: 

The Federal Government is good at creating new ways of getting money from us, not giving it back. This program is definitely a win/ win for individuals and for businesses in Canada. Simply put, the program is a non-refundable tax credit for work performed or goods acquired in respect of an eligible dwelling.  

The monies have to be spent between Jan 27th/09 and Feb 1 2010.  

For the purposes of the program the definition of “eligible dwelling” is defined as: 

- A “housing unit” that is the individual’s principal residence or that of one or more of their family member.
- (Housing unit means an individual’s principal residence where it is owned by the individual and ordinarily inhabited by the individual, spouse or common-law partner, or their children. 

This is being marketed as a “family based” credit and only one credit will be shared within a family. The credit will apply to expenditures of more than $1,000, but not more than $10,000, resulting in a maximum credit of $1,250. ($9,000 x 15%) 

One small twist to be aware of and I will quote from the Govt’s media release “if two or more families share the ownership of an eligible dwelling, each family will be eligible for their own separate credit.”

Roland, the allowable expenditures include renovations or alterations to the dwelling (or the land that forms part of the dwelling), and must be of an enduring nature. It includes labor costs, professional services, building materials, fixtures, rentals and permits. Documentation must be retained by you to prove the eligibility of the expenditure. 

Some examples of eligible expenditures are; renovating a kitchen, bathroom or basement, new carpet or hardwood flooring, installation of a furnace or central air conditioning or painting. 

Some examples of ineligible expenditures are; furniture, appliances, audio equipment, draperies, tools or cleaning. 

The claim for the credit will be made with the submission of your 2009 tax return and dealt with by Revenue Canada. The documentation for proof of expenses need not be sent with your tax return but made available if requested by Revenue Canada. 

All in all it is a good program that will cause people to spend money to better their homes for their enjoyment or to do work prior to selling. More information can be found at www.soldbylindsay.com or the Federal Governments web site at http://www.fin.gc.ca

(Thanks to Oshawa accountant, John Patte CA for help with this answer. For further info on the action plan as it applies to your tax situation call John at 905 723 9511) 

Lindsay 

Ask Your Agent - Oshawa This Week Wednesday Edition January 21, 2009

Question:

Lindsay:  

When does the spring market begin for Real Estate? Is it best to have your home shown when there is no snow on the ground? Do people really look for homes early in the year? 

Answer:

Dear Saul: 

For the past 23 years I have been asked questions such as these early in the year from people who are planning to make a move and have a closing date in the warm weather. Most people seem to think that the calendar spring is the same as the spring market for home sales but in reality the sales start early and by time the tulips see sunlight the buyers are already waiting to move into the homes they have purchased. 

January is second to December for the fewest number of homes for sale. Jan/08 we had 1148 homes on the market in Oshawa/Whitby and Courtice/Bowmanville and by April the number of homes for sale jumped to 1603! The more homes on the market, the harder it is to attract buyers to your property. In January/08 we had 324 homes sell in the same area. So January is usually a strong month for sales with the buyers having a shorter list of homes to view. The statistics have just been released for December/08 and we are starting off with more homes for sale than we did in Jan/07. (an average increase of 8% more homes for sale) 

Real Estate is easy to understand: supply and demand. If you are planning a move this year it is best to get your home on the market early before the flood of new homes are introduced as we move into the spring.  

More that any year in the past decade, marketing experience and negotiating skills are critical in today’s market. I remember having gone thru the experience of the early 90’s and gaining skills of dealing in a soft market. By the end of the 90’s I recall making a joke that I had developed expert skills dealing in a recession like market that I probably will never use again. These days, all of the skills and experience I gained from the early 90’s are being used in full force today to get sold signs on my properties at the top prices the market will bear. 

So there are more homes for sale; are the buyers buying. A story might be a great way to give you an overview of the market from a buyers perspective. This weekend I showed a home to a buyer. It was exactly what they were looking for; the right location, clean, well taken care of and priced in the right range. The following day we did an offer on the home and ended up in a bidding war. We got the home at the right price but the message that came across for buyers is that if you find the right home, move fast because there are others out there snapping up the good deals. 

Good luck in the “early” spring market Saul. 

You can find more buying/ selling tips at www.soldbylindsay.com
 

Ask Your Agent - Oshawa This Week Wednesday Edition December 3, 2008

Question:
Lindsay, I read recently that the number of homes sold in the GTA has dropped by 38% and that values have dropped by 10%. With all of the uncertainty is real estate still a good investment? 

Claire 

Answer
Claire, in a “round about” way of answering your question lets look at the events of the past month south of the border. Americans chose a new president, and if you get past the big “firsts” with the results, Barack Obama was elected because he offered hope to America. His message was positive, fresh and completely different from the doom and gloom messages in the media. So what does this have to do with your question? Well, when the public begins to believe that things are bad, it is those people who have hope in the economy and faith that things will get even better that lift our spirits and get thing rolling again. So let’s look at some positives and dispel some rumors.  

The statistics you are referring to are the ones that the Toronto Real Estate Board released earlier this month. They include the areas surrounding Toronto and literally thousands of properties and millions of people. Let’s examine the statistics for Oshawa/Whitby and Courtice/ Bowmanville. 

Year to date Statistics, compared to year to date Oct/07.
Area Homes For Sale Sales Average Sales Price 2008 Price Change
Whitby +10% -7% 275000 +1%
Oshawa +4% -15% 208450 +1%
Courtice/Bowmanville +8% -8% 231000 +2% 

How interesting! The GTA is down 38% in sales yet Whitby is down only 7%. As well, the prices in all three communities are either the same or have increased marginally. This shows that the market is still robust and homes are selling. (In the above 3 communities 345 homes were sold in Oct/08). There are more homes for sale than there were last year, although there were fewer sales. However, the numbers are quite positive when you compare them to the statistics you mentioned.  

Now to answer your question about real estate being a good investment, take a look at the graph below. In 2000, the average home in Oshawa sold for $135,000. In October, 2008 the average had increased to $208,450. That means that if you purchased your home in Oshawa in 2000 your home has increased in value by 54%. And remember. your home increases tax free, so this is a net increase.  

Here is a quick look at the increases in our area since 2000.
Oshawa Whitby Courtice/Bowmanville
2000 $135,000.00 $189,500.00 $156,000.00
2001 $139,000.00 $202,000.00 $162,500.00
2002 $154,000.00 $214,000.00 $170,500.00
2003 $163,000.00 $232,000.00 $185,000.00
2004 $176,900.00 $242,500.00 $202,000.00
2005 $188,000.00 $256,500.00 $218,000.00
2006 $195,000.00 $258,000.00 $220,000.00
2007 $207,000.00 $271,700.00 $226,000.00
2008 to Oct $208,450.00 $275,000.00 $231,000.00
Increase to 10/08 54% 45% 48% 

Real estate is and has always been a good investment. It is a long term investment given the fact that the market fluctuates up and down on a yearly basis. So we have seen that the values are up in the past 8 years, the number of homes for sale is up and home sales are down but still selling – so where are the opportunities? 

When the market calms in sales usually the first segment of the market to slow is the highest price ranges. For instance, sales of homes priced between $375,000 and $400,000 in Oshawa have slowed down as we have moved into the fall market. Since July, only 3 homes sold in that price range, and one of which was listed for $429,000 and eventually sold for $375,000. If there was ever a time in the past decade to move up it would be now! 

I am not suggesting that you can go out and lowball offers or “get a steal” but with more selection to choose from there inevitably will be bargains. There is an expression in sales involving using a “velvet hammer”. This means negotiating firmly but understanding that both sides need to feel like they have won for a sale to take place.  

I have worked in a market such as this in the 1990’s and my recollection is that buyers began to select homes based on needs and wants rather than in a busy market where there was no more passion involved in buying a home than a pound of ground beef or a stock purchase. Buyers are more selective and sellers understand that condition and pricing is the foundation of a smooth selling process. 

This is a market I love and excel in – one where creative marketing strategies are important, relationships are built with clients, and with a lot of hard work and determination houses are bought and sold and everyone is happy. 

Claire, real estate is a good investment. It needs people like you and I to reinforce to the people we meet on a daily basis what a special experience it is both personally and financially to own your home, so unpack your velvet hammer and go shopping! 

Ask Your Agent - Oshawa This Week Wednesday Edition November 26, 2008

Question:
I have been reading the ads in the Oshawa This Week and online for a while now and I get confused with the Real Estate lingo and acronyms. Can you explain what elf, dt?s and egdo can possibly mean? Also, how do I interpret things like cozy or hurry and won?t last? 

Dan 

Answer:
Dear Dan: I have to admit sometimes the letters or acronyms that realtors put into their ads can be difficult to understand. I find myself in a fun way trying to figure them out. Some tend to be quite the word puzzle. Here are a few of the common and funny words, descriptions and acronyms I have found along with their definitions. 

Some agents use these short forms to describe features and upgrades: 

Dt’s - drapery tracks
Elf’s - electric light fixtures
Bldm - broadloom or carpeting
Mffr - main floor family room
C/A -central air conditioning
Fag - forced air gas heating
Sgwo - sliding glass walkout
Wicc - walk in clothes closet 

Here is a list of interpretations of words you might commonly find in
marketing: 

Charming/cozy - small; nothing but a single bed fits in any bedroom, Low maintenance - no yard, kids have to play on the street, Bright and sunny - drapes and blinds not included, Executive neighbourhood - high taxes, Park like setting - at least one tree on the street, Natural setting - forget about planting, the deer and squirrels will eat everything, Playground nearby - all summer long the street is an obstacle course due to road hockey, Tudor styling - two bedrooms upstairs, cold in the winter, hot in the summer, Meticulously maintained in the original condition - you don’t need help with this one! Single car garage - your Ford Escort fits in the garage but you need to crawl out the sunroof, Large family room - at a minimum the basement has carpet and painted walls, Lots of storage space - basement is too small to be called a family room, Amazing views ? good view of your neighbour’s bedroom window, Efficiently designed kitchen - two people cannot be in it at the same time, Pet friendly neighbourhood - the front yards are a minefield, Neighbourhood watch - your neighbour has a professional pair of binoculars. 

Dan, I have had some fun with your question and not all ads are misleading. Many identify the features and benefits that help people get excited about a home. My suggestion is once you have noticed an ad in the paper call an agent and have a list of questions to ask to identify if the property is one you might want to visit. There are more tips on my web site at www.soldbylindsay.com

P.S. my favourite new term is “knife catcher”. This is a person who is waiting to buy at the bottom of any market.
 

Ask Your Agent - Oshawa This Week Wednesday Edition November 20, 2008

Question:
Lindsay, we are in the process of buying a home and I have been doing some research with regards to the role a Lawyer has in the closing of a home. I have read about title insurance, what exactly is it and how does it protect me? 

Mike of Oshawa On. 

Answer:
It is nice to see you have been doing your homework before buying a home MOO. Title insurance has been a popular choice in our area for the past few years by home buyers and is something typically a lawyer handles. It is an insurance policy that protects residential and commercial property owners and their lenders against losses related to the property’s title or ownership. There is a misconception about title insurance in that it replaces a survey. It may eliminate the need for a new up to date survey as this insurance is acceptable to most lenders in lieu of a survey. However, the survey has uses other than for a lender when funding a mortgage. (for property lines, fencing etc.) 

Title is a legal term that means you have ownership of a property and is commonly referred to as having a “deed” to a property. So we know what title means and it is known that insurance is a way of protecting something of value, but what exactly does title insurance protect against? Mike, here are the basic losses this insurance protects against: 

- Unknown title defects (title issues that prevent you from having clear ownership of the property);
- Existing liens against the property’s title (e.g. the previous owner had unpaid debs from utilities, mortgages, property taxes or condo charges against the property);
- Encroachment issues (e.g. a structure on your property needs to be removed because it is on your neighbor’s property);
- Title fraud (a form or real estate fraud typically involving a fraudster using stolen personal information, or forged documents to transfer your home’s title to him/herself, or to someone else, without your knowledge. The fraudster obtains a mortgage on your home and disappears with the money);
- Errors in surveys and public records, and
- Other title-related issues that can affect your ability to sell or mortgage your property. 

Title insurance is paid only once, and can be either done at the closing of a property or added to an existing home by the homeowner at any time during their ownership. The insurance coverage is valid for the duration that the property is owned by the insurer. I called a local law office and was given these approximate costs for title insurance; 

- up to $200,000 purchase price for a new purchase $197.00
- over $200,000 purchase price for a new purchase $251.00
- insuring an existing home up to $500,000 - $243.00 (plus administration costs) 

Title insurance can be purchased for houses, condominiums, cottages, rental units, vacant land, cooperatives and rural properties.  

Some of the things that title insurance does not cover are, title defects that are already known, environmental hazards, problems that could have been discovered if a new survey was done, unrecorded liens and zoning bylaw violations.  

Mike, title insurance is a wise purchase when you are closing on your new home. I would advise you to discuss the pros and cons with your lawyer when you meet with them and make your decision based on the information you are given. More info on title insurance can be found at www.fsco.gov.on.ca – more tips about buying real estate can be found at www.soldbylindsay.com

Ask Your Agent - Oshawa This Week Wednesday Edition October 29, 2008

Question:
Lindsay, we had our house on the market this past summer and it did not sell. My wife and I are quite disappointed and are trying to understand what happened. There were lots of showings, in fact a few second showings by the same buyer but no offers. The price might have been a bit high but why wouldn’t we see at least one offer? 

Michael M. 

Answer:
Thanks for the question Michael. What you experienced happens far to often in our market; where good people list their homes and do their best to make them appealing to buyers only to come to the end of the listing period scratching their heads trying to figure out what happened. I have mentioned before in a past article that we are in a “price war and a beauty contest”. The homes that are selling in today’s market are the best priced and the best looking. A way of describing pricing is to break the available homes into three areas. The first area is called the “in market” segment. This area could be described as having amazing features for the price and being positioned in the top 10% of values currently available. These homes are shown often and see an acceptable offer in a very reasonable time period. A 2nd area is called “out of market” and describes homes having a price that are considerably higher than market value and/ or features that are not equal to other homes in the same price range. They get almost no showings or inquiries. The 3rd and most frustrating area is called “no mans land”. This area is where the home is marginally over market value for the location, features and condition, however a high number of showings take place yet no offers in or no real serious activity happens. This is the most frustrating area due to the fact that the homeowner sees activity, is troubled by the large number of showings and yet has no success.  

Michael, it sounds like you were in the “no mans land” when you were on the market. I have no idea where your home is or what it looks like, but one observation would be that the price was too high. By the sheer number of price reductions happening on a daily basis on our real estate board more homes are overpriced than those who sell without any reductions. Another reason may be the property was not staged or did not show off the features creating excitement in the buyer’s eyes. 

Pricing is a complex formula; you want to get the most money your home can possibly get in today’s market, but also do not want to be so highly priced that it turns buyers away. Accurate pricing or “positioning” is done by critically looking at and interpreting the available homes for sale or the “competition”, and looking at what has been sold recently in your area. Depending on the type of market, more weight will be put on values of homes sold than listed for sale or vice versa. The sales show you trends of historical pricing and the available homes show how the market is doing on a daily basis. How long have these homes been for sale, have they had price reductions or been listed for sale more than once are indicators of current trends. To give you a sense of how many homes are priced incorrectly, in the past 30 days 142 homes have expired not sold in Oshawa. Currently we have 771 homes on the market in Oshawa, which indicates that 18% of the homes are not selling, at least during that listing period. 

Michael, pricing a home is as much an art as it is a science. A realtor has to take into consideration trends, activity and the local economy and then conflate that with the benefits and features the home offers. Markets come and go, some are good and some a bit soft, but the principles of selling never change. Stage your home to show it in its best possible way, lead the market with competitive pricing and work with an agent who is a master at creative marketing and negotiations. The sold sign will take care of itself if all of these elements are in place. Hope this answers your question Michael and for more info and tips go to www.soldbylindsay.com
 

Ask Your Agent - Oshawa This Week Wednesday Edition October 23, 2008

Question:
Lindsay, my husband and I are starting to think about buying our first home but honestly, we are nervous. We have read that the market is somewhat unstable and what is happening in the U.S. Can you give us some step by step advice on how we might buy a home that we can afford and one we will love. 

Stacey 

Answer:
Stacey, thanks for the email. Buying a home is a process, and like any other process you will go through the more you educate yourselves, the better your chances will be of getting exactly the home you want, and one within your budget. If we can learn anything from the U.S. meltdown (at least lessons we can apply in buying here in Durham) it is to make sure we are approved with a lender and our jobs are stable. The buying process is one that should be filled with joy, excitement and pleasure, not stress. A detailed plan helps to reduce the stress level. 

So where do you start? Here is the process I would recommend: 

1. Do your Homework: this begins the process and typically is done over many cups of coffee and with lots of “free advice” from family and friends. Start with a plan; where is it you could see you are your family living? If you currently have children or if they are planned for the near future what school areas do you want to be in? How much cash do you have to use as a down payment and how much is available for household items once you move into your home. How secure are your jobs? How much can you afford if you drop to one income as your family grows? Similar to buying a car, if you decide on a Saturday morning you want a new car and wander into a few dealerships without planning in advance and buy that afternoon your chances of making a mistake are high. The more you discuss and identify what your needs and wants are, the better you will be at making a decision. 

2. Create a budget: look at your income and your debts and try to think of the purchase of a home in a 5 year cycle. Are there any big expenses you can see in the future that might make your cash flow tight, or can you see any changes to your income or cash flow in a positive way? Banks typically will lend much more than you will want to borrow. For example, if you and your husband make $100,000/ yr and you’re only debts are car loans that equal $1,000/mth, the bank will qualify you for a mortgage of about $370,000 which probably is much more than you want to borrow. Be reasonable when you choose the price range you feel comfortable buying in and then create a budget around it. The budget should include after sale costs such as appliances, décor and new furniture. 

3. Closing Costs: go online and become familiar with how much you will need on top of your down payment to purchase a home. (things such as lawyer costs, home inspectors, Land transfer tax etc.) You can check out CMHC, any of the banking or local mortgage brokers sites to help you figure out the costs involved. This should be covered in your meetings with your agent but it is best to go in knowing a little about what costs you will need to cover when you buy. 

4. Get approved with a lender: This means the “real deal”, meaning, you need to have a credit report done and have a lender approve you to the point where you can buy a home subject to the home qualifying. Ask for written confirmation of the approval. Many buyers are shopping for a home with “verbal” approvals which have little value, (pun intended) so it is best to have a lender tell you in writing what you can afford and which options are available to you.  

5. Hire an experienced, trustworthy Realtor: An agent is your guide through the process and ultimately will be the reason you look back on your purchase with fond memories or the memory of a stress filled experience. A good Agent will work with you on your budget, the costs to buy, your banking information and areas/ types of homes in your range. By “hiring” I mean to interview agents until you find one you feel comfortable working with and sign a Buyer agreement with them. This agreement allows the Agent to represent you and spend time knowing that he or she will get paid for your purchase. (you do not directly pay for your agent the commission comes out of the price of the home) The agent is the one who will educate you about how the process works. From identifying what your needs and wants are to the showing process and ultimately to drafting the offer to purchase and negotiating on your behalf.  

6. Accepted offer Stage: Your Agent will help you thru this process; you will need to line up a home inspector, finalize your financing, contact a lawyer and an insurance broker and contact a moving company. (or plan to spend money on a few cases of beer and some strong friends)  

7. Move in, sit back and clink the champagne glasses! 

Stacey, I hope these ideas will help guide you thru the process of beginning the search leading you to your dream home. Buying a home does not need to be scary, it should be an enjoyable experience and if you do your homework, choose the right Agent, you will be relaxing in your home in the very near future. For more tips on planning your move go to www.soldbylindsay.com

Ask Your Agent - Oshawa This Week Wednesday Edition October 15, 2008

Question
Should I buy now, or will the market drop?  

Answer:
Answer: This weeks question(s) came from a buyer and a seller from my website. One name was Brad Pitt and the other Dracula. (so I know they are real people) Nevertheless, the questions are valid and ones I get on a daily basis. Today’s market is a complex one, with many factors affecting it, real or imagined. If you listen to the media you would think that the sky is falling, at least south of the border and the hurricane that is hitting the U.S. will eventually make its way here to Durham Region. So how did September, the month where the stock market took a dive, affect our local real estate market? 

In the areas of Oshawa, Whitby and Bowmanville/ Courtice here is what happened (comparing Sept/08 to Sept/07): The number of homes for sale was up 13% over last year; the sales up 6%. There were 1,590 homes currently listed for sale in Sept/08 and 426 homes sold. Prices, well they have maintained and increased ever so slightly.  

So things are moving and the market is quite active. That being said the buyers have a lot more to choose from compared to this time last year and many of the homes on the market are priced unrealistically adding to the confusion of pretty much everyone. The media is good at sending mixed messages, and when they do, sellers believe the optimistic reports and the buyers believe the negative ones.  

The questions above seem to come from a feeling of uncertainty and misinformation coming from many sources. I would first question both Brad and Dracula that if now is the right time to make a move for them and their families? (still pondering if Dracula is married and has kids or do vampires have families) If so as a seller, you need to price your property realistically and have an agent who is an expert at marketing it. There were 426 homes sold locally last month and the Durham Region Assoc. of Realtors posted that on average they sold for 98% of asking which proves that if you have a good home, in a good area, priced right and the right agent working for you the chances of selling are high. For Brad, if you are planning a move make sure the timing is right. Make sure that Angelina and the kids will live in Durham Region, but also that your job is secure and you have the money in reserve to customize the home to make it comfortable.  

Asking if the market will drop is a “crystal ball” question but implies that things are not doing well. The stats prove otherwise. If now is the right time to make a move, go for it! There are great selections for buyers and for sellers the market is active and stable. Here in Durham Region things are good, the market is fine and last month 426 sellers celebrated with a sold sign. (by the way we sold 6% more homes last month than Sept/07) 

P.S. if you are a buyer and thought about buying last year but waited for the prices to drop, how much did you spend on rent? The prices have pretty much maintained locally, so if you are waiting for a bell to ring at the bottom the sound you might have heard is a cash register ringing up sales. 

Lindsay Smith, Broker 

Ask Your Agent - Oshawa This Week Wednesday Edition October 8,2008

Question:
Lindsay: My wife and are thinking of either renovating or selling. If we renovate and end up staying for a year or so which renovations do you feel will add to the value of our home? 

Heather 

Answer:
Thanks for the question Heather, it seems that people are always curious about renovating and wondering if they will get paid back on their renovation investment once they decide to sell. The first question I would have is, “how old is your home”? Homes tend to have cycles with regards to upgrading. For instance if you owned a newer home the renovations will typically be adding features to increase your families enjoyment of the home, but with a 20 year old home the renovations will be more in line with maintenance types of upgrading along with any luxury additions the owner might enjoy. A new home might require fencing, landscaping, decking, central air or a finished basement whereas a 20 year old home may need new windows, shingles, furnace or other items in need of replacement along with kitchens, bathrooms etc.  

When looking at a return on investment, a buyer who is viewing a newer home may have ideas on what they need to do to personalize the home to their standards. These items might be in a 1-5 year plan, so when out looking the buyer views asking prices based on the value of the home as it currently appears. On the other hand, if a 20 year old home is in need of a new roof, furnace and windows it might possibly cause the buyer to discount the price to allow themselves to do the necessary repairs immediately.  

So Heather, renovations seem to fall into two categories: necessary upgrades and added value upgrades. Here is a list of return on investment for some of the more common upgrades. (from a Re/max International survey) 

- bathroom remodel 78.3%
- kitchen remodel 78.1%
- family room addition 68.6%
- basement remodel 75.1%
- master suite addition 69%
- siding replacement 83.2%
- window replacement 83.2%
- roofing replacement 67.4% 

If you are considering renovating I would first consider which renovations would have an impact on the enjoyment your family would have in your home. Kitchen and bathroom renovations are typically the best investment as they tend to be two of the biggest selling features that buyers are looking for when considering a home purchase. That being said, an older bungalow in tip top condition and with all of the maintenance upgrades done is currently one of the most desired types of homes. Once you have identified the renovation you are interested in doing do you homework. Check into financing if you need it with a lender and interview at least 3 different contractors before you decide.
Renovations should either add value to your lifestyle or to the salability of your home, so renovate with common sense and you will find that if you choose the right improvements when you go to sell your home it will sell easier, for more money and with less hassle. Heather, I hope this answers your question and for more home tips visit www.soldbylindsay.com

Ask Your Agent - Oshawa This Week Wednesday Edition October 1, 2008

Question:
¬¬Lindsay: we are considering selling our current home and have a simple question. “how does a realtor figure out what our home is worth”. 

Jessica. 

Answer
Thanks for the question Jessica. There really is more to establishing price on a home than playing “pin the tail on the donkey”. It takes different sets of skills from the agent, from reading the competition on the current market to comparison of recent solds and then forecasting how the market will perform over the next short while. 

My first thoughts when thinking about setting market value are, “features are tied directly to the property being sold and benefits are tied to the buyer”. This is the start of getting to a market value price. Sellers and Agents set the price but it is the Buyers that set the value of the home. Value is established in the Buyers mind by doing a comparison of features and benefits being offered by current properties available today, but more importantly by establishing which features are ones they are willing to pay for. The old adage that kitchens and bathrooms sell homes has some truth to it, but today homeowners are putting many upgrades into their home and are unaware if they will increase market value. For instance, a hot tub may have just been installed by the Seller at a cost of $8,000 but to a buyer they may have to look at costs of removing it if they are not interested in owning one. Some features have little or no value to the Buyer or in fact they may detract from market value having to be changed or removed. 

A few years ago when we were in more of a Sellers market pricing properties was much easier than it is today. The Agent would look at the recent sales and establish a price a bit higher that what had been sold. Available properties were used but it truly was the sold homes that set prices. There were times over the past decade where if the Agent made a mistake and priced the home to high the market would catch up and the home would sell.  

Today things are much different. With more inventory of homes for sale and fewer sales taking place, pricing becomes a much more complicated process. Getting back to the “features and benefits”, the first thing I do is to look at the available homes for sale and review the price, what they are offering and how long the homes have been on the market. Using the sold properties as comparisons is still valuable but they need to be very recent sales. A home that sold 3 or 4 months ago may not work if the market has changed since then or if the yearly timing is different. In an uprising market like we have enjoyed over the past decade it was risky to overprice a home but in today’s market an overpriced the home will just sit in “no mans land” frustrating everyone in the process. It is better in this market to price right at market value or just a shade under it. Pricing a home aggressively causes the same reaction with the buyers today as it did over the past few years. As and example, in the last month I have been in 4 bidding wars, with the most recent having two buyers competing and the home selling for 99.6% of asking.  

In my experience, I have found that sellers do not sell for more money by increasing their asking price in order to create negotiating room. The closer they are to the right price the less the buyers will negotiate. Serious Buyers know good deals when they see them and when they do they feel the need to move quickly before they lose the home to someone else. In todays market it is possible to have buyers making buying decisions quickly, however they only do when homes are priced to cause a stir in the marketplace. 

I have mentioned before that we are in “a price war and a beauty contest” so the better your home looks and the more realistically it is priced will ensure a timely sale. Jessica, I hope this helped with your question and for further tips go to www.soldbylindsay.com

Ask Your Agent - Oshawa This Week Wednesday Edition Sept 24, 2008

Question:
Dear Lindsay: I am thinking of selling. Should I do it now or wait till next year. 

Marian V. 

Answer:
Dear Marian, 

This is a question I get constantly when folks are considering a move. “Should I sell now or in the spring; should I wait till the fall; is it better to list my home in the summer for a school year closing”? Whatever month you are in, the question arises if this month is the right month to sell. So in order to answer this question let me get my crystal ball out and shine it up.  

The first thought that comes to mind when a client asks this question is “if you could pick a perfect time to plan a move, independent of the time of year would you choose this month? Or would you wait”? Timing has so much to do with a move; in that I mean timing with regards to the family, not the market. In a perfect world the best time to sell is February- April and the closing dates come in July – August just before the kids start school, but not everything works in a smooth perfect historical timeline. When I first started selling real estate in the mid 80’s you could bet money that the spring market was the best time to sell, but over the years the curves of market activity have literally been all over the place. I have seen years where November was one of the most exceptional months for selling and where the summertime has been incredibly active. Other years have seen the spring time to be flat and a poor time to sell. So really there is little rhyme or reason to market activity these days. If you are planning a move you can only gauge today’s activity of competition and the sales that have taken place over the past month or so to give yourself a sense of how the market is behaving. Trying to forecast how the market will look, for instance in the spring of next year is anyone’s guess.  

A professional realtor can make comments on and offer advice for the current market, but any future advice beyond a month or so really comes down to thoughts with fingers crossed and hopeful expectations.  

So Marian, I would suggest taking a look at your personal situation and made a decision if now is the best time for you and your family to make a move and if so get the process started. If not, maybe waiting might be a good position to take if it best suits your family. The market today is healthy, active and exciting, but again as I have mentioned before, we are in a “price war and a beauty contest”, so the better you price your home and the more it shines will have a big factor in how fast a sold sign appears and how good the terms are. Hope this helps Marian and for more tips go to www.soldbylindsay.com

Ask Your Agent - Oshawa This Week Wednesday Edition Sept 17, 2008

Question
Lindsay: My husband and I are planning a move and don’t know if we should buy first or sell our home first. Can you help us?
Christine 

Answer:
Christine, this is the age old question. I have been helping people with this question for over 20 years and have found it comes down to a decision based on personal and family needs. People typically move for a couple of basic reasons. Some people move with profit as the incentive. They buy smartly and when they decide to move it is when they can realize a profit. Other people or families move for reasons based on needs. A need may arise for more space or for less square footage, to be closer to a hospital or school or to a home with fewer stairs. These people, even though money is important are more concerned with matching closing dates, getting exactly what they want or alleviating as much stress as possible. Before answering your question, I have found that both reasons for selling are valid and can work out well. 

So what are the pros and cons of buying or selling first? For those who buy first and then sell later, the pros are that they get exactly what they want for their next home and typically buy the home a bit cheaper given that they are buying without a condition of sale. They get to choose their closing date. If the deal isn’t perfect they can choose not to buy. The cons are when they sell they need to match closing dates which might get a bit tricky and may require some extra financing. The big risk is their home taking a long time to sell and possibly not selling for what they had hoped. 

The pros of buying first on condition your home sells, and then selling is that you get exactly what you want in a home, and a closing date that you can work with. You also get the protection that if your home does not sell you get your deposit back and risk little. That is the upside, the downside is that many buyers becomes emotionally attached to the home they have bought and have a short window to sell their home and the possibility exists that they may lose their dream home to another buyer. Typically to get a home sold in record time, a lower price needs to be set so in many cases they take a bit less for the home they are selling and when offering on the new home because of their condition they may pay a bit more.  

Selling first, and then buying later is another option. This is the way of making a move with the best chances of getting top value on your current home and also on the home you purchase. When you sell first you can be less flexible on negotiating the price of your home due to the fact that if you don’t sell, you have no other home to worry about matching up closing dates. Then once your home is sold, you can offer without a condition of sale making your offer stronger. However, the downsides of this method is you sell your home and cannot find the perfect home to move into or you find a home with a different closing date.  

Over the past few years I have had many sellers refuse offers with a home sale condition. This past week I had an offer on one of my listings with a condition on the sale of a home and the owners, after much discussion and direction chose not to accept it. The home had only been on the market 3 days and we chose to keep the property open with no conditional offers to hinder the sale.  

Buying and selling is stressful. Adding risk to the process causes some people added stress yet other buyers seem to deal with risk with ease. I would suggest you consult with a realtor you trust and whose advice and approach helps you to come to a decision that best suits the needs for you and your family. I hope this answers your question Christine and more info and tips can be found at www.soldbylindsay.com
Lindsay Smith, Broker
 

Ask Your Agent - Oshawa This Week Wednesday Editiion Sept 10, 2008

Question:
We are considering selling our home and moving up to a larger one with a family room. Can you give us some ideas that might better the chance of selling in today’s market? 

Debbie Y. 

Answer
Debbie, great question! In a market where the homes are taking a bit longer to sell and the number of homes for sale increasing there are many things you can do to better your odds of selling. However, to answer it in a fun way let me share with you ways to sabotage your home sale: 

Price your home higher than current market value. Insist you need a certain dollar value, or that your home is much better than the three others that were similar and sold for $20,000 less. The right buyer will come along and see the value, no matter how few showings you have right now.  

Present your home on the marketplace without cleaning or staging it properly. “It’s our home and we live here” is your attitude. “Why clean it, paint or re-carpet it? The buyers might want to do that themselves and what if we pick the wrong colours?” Besides the next owner will probably have teenagers too and they will feel right at home in your son’s room (which smells like tennis shoes, a hockey bag and is decorated with the Sports Illustrated bikini issue.)  

Keep those odors lingering in the house. Make sure the last nights dinner smells overpowers the cat’s litter box which is housed in the bathtub. Just before showing the house spray a lot of strawberry scented room deodorizer to cover up the cigarette smoke smell.  

Allow the animals to stay during the showing. After all, it’s their home too and you really don’t have any place to take the dogs during the day. Fluffy and Skipper really don’t bite thru the skin. They usually only bite men on the ankles, not the women. Make sure you leave the nose prints on the sliding doors….. you wouldn’t want the buyer to make a mistake and walk through the clean glass! 

Keep ALL of your collections out for buyers to look at. 300 sets of salt and pepper shakers, your husband’s bowling trophies and all of your kids and grandkids school pictures are important to you. Besides if you took them off the walls you might need to repaint. You are proud of your family and want the buyers to see what a wonderful family you have raised in this home. 

Keep the unusual wall colours and décor experiments intact. HGTV has really allowed your creativity to come out and you have tried many of the decorating ideas you have seen on Trading Spaces. Perhaps the black kids room will appeal to a buyer’s teen. You don’t want the home to look bland and like every other home the buyer will go through. Besides it is just a coat of paint and if the buyers don’t like the colour they can choose their colours. 

You have already moved and the home is vacant. The buyer should understand that the pool might be a bit green and the house dusty. Can’t they just see past a bit of dirt? Trying to maintain two homes is just too painful to do every day, let alone pay someone to keep it looking fresh. Also, there isn’t any reason to let your Realtor know if you go away. If an offer comes in the buyer will be patient while your Realtor searches high and low to find you. 

Obviously I have written this in an attempt to humorously covey the things we as Realtors are told by sellers as we attempt to attractively position their home in the current marketplace. With the inventory of homes growing like weeds it’s critical for a home seller to put their home on the market in saleable condition and price it properly. The best marketing in the world will not sell an unattractive, overpriced property. Someone said recently we are in a “price war and a beauty contest”. I firmly believe this to be true. If your home is priced right and shows in the top 10% of your price range you will have buyers coming to you.  

Hope this help’s, Debbie, and for more helpful hints go to www.soldbylindsay.com

Ask Your Agent - Oshawa This Week Edition September 3, 2008

Question:

Q: Lindsay, at what point in the selling process does Realtor experience become most valuable?  

Gary C. 

Answer:
A: Gary, what an excellent question. Selling a home can be a very simple or complex process and the level of experience your chosen realtor offers becomes important from the moment you make your first decisions thru to the final sale. Most agents, seasoned or newer can draw on the experience of their coworkers and other professionals within the industry however, there are certain tasks where years of experience become critical. There are 2 main points where experience become extremely important: 

1) Pricing the property. Having the knowledge to price the property at a value that will cause it to sell for the highest value in a reasonable time period takes skill.
2) Dealing with an offer. This is the most critical part of the process. You will find out how experienced your realtor is when the negotiations begin. This is a part of the selling process that the realtor does on their own and their selling, communication, negotiation and “stick handling” skills become visible at this point. 

There are dozens of decisions to make in between pricing and the sold sign. Designing a marketing program, using web tools to attract buyers, well written newspaper ads, networking with other agents and to other buyers who may contact you on other properties. These all take skills and experience and how effective your realtor is will dictate how smooth and speedy the buyer arrives. The last point; dealing with an offer is the time when the ability shows. Your realtor should be able to guide you thru an effective negotiation process, offer advice and strategies to obtain the best terms and assist you in making decisions that best suit your situation.  

There is a funny saying in business when describing a person with years of experience yet few skills; “does he have 20 years of experience or 1 year experience 20 times”. Make sure you do your homework and choose a realtor who offers solid selling skills a proven track record and an advisory relationship with the goals to get you top price and terms. You can find more tips on choosing a realtor at www.soldbylindsay .com 

Ask Your Agent - Oshawa This Week Wednesday Edition August 20, 2008

Question:
Lindsay: 

My husband and I are considering selling our home. What advice would you give to ensure a sale that doesn’t take to much time, yet gets us the most money? 

Nicole Laframboise

Answer:
Nicole: Thanks for the question. So many sellers have started the process of planning a move feeling like they have so many questions and where to go for honest advice. The selling process does not change much from year to year, the differences is how important the agent, and their marketing becomes in getting the home sold. Here are some ideas:
1- Choose the right Agent and interview more than one. It is important that the agent and you feel comfortable working together. When you meet with the agent have a series of questions set out to gather information on their experience, track record in your area, statistics on their list to sale ratio and average selling times
2- Price it right. Many homeowners either following the advice of an agent or on their own price their homes far above the market. The most frustrating place to be is in “no mans land” or a price range that generates showings but no serious buyers. Use the most recent comparable sold and available homes to set a price. Pricing too high at first takes away the excitement all new listings have
3- Use the 4 D’s. Declutter, decorate, donate and deodorize. In this I mean to clean out rooms so they show as large as possible. Box up, donate or store items that give rooms and closets that full look. Deodorize: olfactory senses are one of the reasons people feel comfortable in a home.
4- Do your best to keep your home in “showroom” condition. What I mean by this is to make your home available to agents, even if on a short notice basis, have it sparkling when they walk thru and remember dogs, cats, iguanas, children, underwear, car parts, lumber and power tools however interesting to your friends do little to capture the buyers interest. More tips can be found at www.soldbylindsay.com

People fall in love with homes, that is why the one in 20 homes they walk thru will get them excited. But to “spread this love” you need to choose the agent who will market the home in creative and interesting ways at a price that will excite buyers, have the home available for showings and when the buyer walks thru the front door you need to have them go “wow”!  

Hope this helps 

Lindsay
 

Ask Your Agent - Oshawa This Week Wednesday Edition August 13, 2008

Question:
Dear Lindsay: 

I keep hearing in the papers and on the radio that the Toronto market is still booming. Is that true and how does the Oshawa/Whitby and Clarington area compare? 

Harry Zoltan

Answer:
Great question Harry. I will agree that for some reason, here in Durham Region the “grass is greener” comparison seems to happen when describing the Toronto markets. On researching the answer to your question, I looked at an area of Toronto that is somewhat similar to our area. The East York area, which is in the Danforth and Coxwell area. This is an area of newly built/ renovated and older homes.  

In the Oshawa/Whitby Clarington areas the year to date comparison of homes for sale/ sales, when compared to July of 2007 looks like this: 

Listings Sales
Whitby + 10% - 6%
Oshawa + 4% -16%
Clarington + 11% - 7% 

The statistics in the East York area in Toronto this year over last look like this: 

East York +6% - 16%
(E01, E02, E03)  

Over the past 23 years I have been a broker, Real estate has changed dramatically but certain business models do not change. Supply and demand are what control the market in any location. The above statistics show that our market is experiencing a calming effect as most of the GTA is feeling, but with an average of 5.5% fewer sales in our area vs -16% in the East York area we seem to be doing just fine. 

At a recent conference I attended in the US a broker said her market was “in a price war and a beauty contest”. This saying is an accurate description of where we are in the summer of ’08. In the past 10 days we have had 11 properties sell at full asking price or for more than asking! I bet if you toured these homes they would be the best priced and in the top 10% of the real estate beauty contest. Some things never change, well priced homes that show well seem to end up with sold signs. Hope this answers your question.  

Lindsay Smith, Broker
www.soldbylindsay.com

Ask Your Agent - Oshawa This Week Wednesday Edition August 6, 2008

Question: Lindsay, I recently sold a home that I co-owned with my best friend. I plan on purchasing another home soon and I would like to withdraw money from my RRSP for the downpayment and I am not sure how much I can use or even if I can do this. Initially I was told the the home buyers plan is for a first time buyer. What are the rules?

Carl
Whitby

Answer:
Thanks for the great question Carl. There seems to be some confusion surrounding the Home Buyers Plan. (HBP) The basics of the plan allows a homebuyer to use monies from their RRSP as a down payment towards the purchase of a home. The maximum amount of the withdrawal is $20,000 and can be doubled if the home is being purchased by a married couple or a couple within a common law relationship. The amount withdrawn is done so tax free but must be paid back into your RRSP within a 15 year period. (in the amount of 1/15th of the withdrawal yearly) Who can use this program and the basic conditions are:  

- You cannot have participated in the plan in previous years.
- You have to be considered a first time buyer. (you have not owned a home while you occupied it as your principal residence for five years)
- The RRSP must be more than 90 days old before you withdraw the down payment. 

So to answer your question it would depend on several things. Firstly was the home you recently sold occupied by you as a principal residence? That is the most important question because if it was viewed as your principal residence you would not qualify as a first time buyer. If the home you recently sold was an investment property or one you did not live in as your principal residence you would appear to qualify for the Home Buyers Plan. A good reference guide can be found at www.cra.gc.ca Just put Home Buyers Plan into the keyword search and you can get the entire Government description of the program.  

Hope that helps and if you have any other questions just email me thru www.soldbylindsay.com

Lindsay Smith
 

Ask Your Agent - Oshawa This Week Wednesday Edition July 23,2008

Question: Lindsay, I have heard the term “staging” used over and over when people talk about selling a home. What exactly is staging and how important is staging with getting my home sold?  

Sarah Green 

Answer:

Sarah, thanks for the great question. Staging is a newer term that describes what has been done by many successful sellers for years. It can be defined as: beautifying the home prior to selling. Cleaning, rearranging furniture or adding coordinating pieces and updating décor and or flooring. Staging is important when the market is slower and the competition of other homes increases and or in a busy market, to try to maximize your selling price. Most changes to impress a potential buyer and achieve the sale can be made at a reasonable cost, especially when compared to the likely extra profit on the sale or having to drop the price in order to sell. Costs in staging and presenting a property should be relative to the price of the property, possible extra profit to be made, its potential market and location. 

Staging can be as little as cutting the grass and shoveling the snow but for most homes it requires shifting furniture, dealing with outdated décor, removing household items to make spaces appear larger and having the home cleaned professionally. I recently had the experience of having a home on the market with carpeting throughout most of the home in a colour that was quite outdated. I had recommended to the sellers to have it changed and they decided to sell leaving the original carpeting. After several months, and many showings the homeowner took the home off the market, changed the carpets to a current colour and the home was sold within 2 weeks of relisting. 

Location, location, location was the saying we have used for selling real estate for years, however in todays market it is more like Pricing, condition and location. 

Hope this answers your question but if you have further questions visit my web site for tips or go to www.canadianstagingprofessionals.com