Tuesday, December 31, 2013

Buyer Needs Extension to close

Mark Weisleder reminds us that getting an extension date on your closing date has costs and that needs to be addressed;    Who Pays? 
Buyers often need to request an extension to their closing date. The main reasons are as follows:·         The buyers have not yet sold their current home; or
·         The buyers' financing has fallen through or the buyers have not complied with all of the lender's requirements;
The main lesson for everyone is that no buyer is automatically entitled to an extension. If a buyer can't close, the seller can take the position that the buyer is in default, sue for the deposit and any loss that they may suffer in the re-sale of the property.Real estate agents are divided as to whether you should buy first and then sell your existing home or sell first and then buy. No solution is risk-free. Buyers also need to remember that just because you are approved for a loan, you still have to fulfill all of the lender's requirements, such as proof of income or debt repayment, before they will give you the money.When you ask for an extension, here are the terms that you can expect to face from a seller. Remember, your bargaining position is not good.·         The seller will likely request an additional deposit, equal to the initial deposit, to be held by the seller lawyer in trust;
·         The buyer will have to pay the seller's interest costs on any mortgage that cannot be discharged; so for example, if the seller has a $300,000 mortgage and interest accrues at 4% interest or $33 per day, then the buyer has to pay this cost for the full extension period;
·         The buyer will pay the seller's legal fees to do the extension, which can range from $250 - $500, plus HST; and
·         The buyer may have to pay additional costs, depending on when the extension was requested; - for example, if the extension is requested on the closing day, and the seller has already packed up the truck, the seller may request payment of all of their additional moving costs as a result of the request.
One of the main considerations for the seller in agreeing to give an extension is whether they need the money from the sale for their own home purchase closing the same day. This is what occurred to a buyer client of mine who required an extension at the end of October, 2013. Their seller also needed to close a purchase the same day. This seller was able to negotiate an extension of their own sale, but expected my client to pay all of their extension costs as well. Thus my clients had to pay the seller and the seller's seller a total of $2,500 to get a one week extension. This was still a good result for my client, as they could have forfeited their deposit and faced a lawsuit if the seller did not agree or was not able to arrange the extension. If you know that you are going to need an extension, do not wait until the last minute to make the request. Let your lawyer or real estate agent know as soon as possible and make the request, so that no unnecessary costs, such as moving arrangements, are entered into.There is also closing protection insurance available to home buyers and sellers in Ontario. One such company who I work with (full disclosure) is Canadian Home Shield at www.canadianhomeshield.com . They offer insurance coverage for $99 for home sellers and buyers so that if their sale is delayed or cancelled and it is not their fault, they can claim for costs of up to $25,000. I have had several clients take advantage of this policy to collect damages such as increased moving costs as a result of delayed closings.

This Insurance is available here as part of the bundle of services that are available for Purchases and Sales of Homes in the west Toronto GTA.

Call today!

Monday, December 16, 2013

Winning in a Multiple Offer Toronto

When making a multiple offer on a property we have a form available to Realtors, for the seller to sign, that they have actually seen your offer to purchase.  You will know for certain your offer has been presented.

This may not necessarily get you a sign back, or counter offer, but at least will know for sure that they have been presented with your offer.

I recommend making your offer in person, not by fax or email,  I expect you to be standing nearby, waiting anxiously and including a Letter of Capacity from your bank, that you have the funds available to close on this purchase.

This will make a big difference when compared to other people who are all conditional upon financing and have other obstacles to overcome, like the sale of a property. You can firmly give a date for moving in.

I would like to work with you to make it simple to get your next home.

Give me a call 647 218 2414

Tuesday, December 10, 2013

Dave's your best friend when...

David Pylyp is your best friend;
  • when you need pictures for that insurance claim
  • when you are unsure if its a Landlord or Tenant Problem.
  • when a condo corporation raises your Maintenance Fees.
  • when your tenant won't MOVE.
  • when your house won't SELL.
  • when you don't want to live together anymore.
  • when you want Value in your purchase.
You don't have to like me...  but do you need me.


Monday, December 9, 2013

New Fees for Landlords in Mississauga

Effective the beginning of January 2014 you will need a license to rent your basement apartment. The City of Mississauga has finally made a response to Bill 140 and the affordable Housing Act.  As of January 2, 2014, legal second units must have a City of Mississauga licence per City By-law 204-13 

The Mississauga City Council approved a plan to permit second units on July 3, 2013. The plan includes official plan policies, zoning regulations and licensing requirements. It will be in full force in January 2014. 

‘Second units’ are self-contained apartments within existing homes. They have their own kitchen facilities, a bathroom, a bedroom and sometimes have a door that separates the unit from the rest of the home. They are often called basement apartments, in-law suites or secondary suites. 

The Second Unit Implementation Strategy includes: 
Official Plan policies permitting second units in detached, and semi-detached homes as well as townhouses 
Zoning By-law regulations including parking and distance from the property lines for entrances and stairs 
A licensing program to ensure zoning, building and fire codes, as well as property standards, are met 
An Education Program that will include information materials and sessions to help the public understand what is required for a legal second unit in the City and 
Partnerships with professional and organizations interested in second units 

An existing second unit will only be legal if it complies with the official plan and zoning by-law, meets building and fire codes, and there is a license for the unit. 

The initial second unit license will cost $500 for owner-occupied properties and $1,000 for investment properties . The annual license renewal will cost 50% of these values. 

Any person who is charged with an offence under this By-law and found guilty is liable to a fine of not more than $25,000 or $50,000 (for corporations).

Back Grounder  City of Mississauga Feb 25, 2013.


Keeping it or Selling it?

Sunday, December 8, 2013

The Internet Makes it Easier - Not simple

I agree that the internet has made it easier for buyers to find homes they “want” online this is where my leniency ends. Online property search is simply an entry point into the discovery process and in no way guarantees a home search will take less time than working with a buyer who had no internet access at all. Some buy quickly, others take 4 - 6 months to look at dozens of Homes.

Do you trust the real estate advice on Yahoo Answers?! My  Answers are of glossed over, muted, by the advice of a woman with a tattoo for her favourite Dixie Chick.  

You deserve an experienced negotiator on your side. Prior to my 25 year career in real estate, I worked for over 6 years in the area of corporate finance and lending negotiations. In addition, I have bought, sold  and managed numerous properties so I understand the joys and challenges that are part of owning and selling real estate.

Don't get sucked in by online answers and quick fixes.  Solutions are obvious when they are revealed, often not because they are simple.

I can make it Ridiculously simple and provide Huge Savings
Call me

Sunday, December 1, 2013

Condo's Biggest Concern? Maintenance Fees

Ongoing Maintenance costs are the biggest concern for ALL condominium buyers.  The largest categories are Hydro Electric, Heat, Security Staff, Water, Garbage Disposal, Management and then the mandatory  Reserve Fund Contribution  mandated by engineering studies of how long things should last [Remaining Economic Life] Many of these issues are not within the control of the building or management as Rates and Schedules are set by outside parties.

The largest expense by far is Heat and Hydro. In a hi Rise structure we share Common Elements and a garage.  We can eliminate heat as an expense and build in a Condo Building Long Term efficiency tool.   

How? Using a Heat Pump and Ground Loop Geothermal Heating

The ground loops operate by utilizing the ground to provide heating or cooling energy to the building. In the winter, the pumps draw energy out of the ground to heat the building. In the summer, the process is reversed, with heat from the building being returned to the ground. http://www.4e2.ca/index.php?option=com_content&view=article&id=44&Itemid=12

Where? On the Go in Mimico
Let's combine  Neighbourhood and Community,  Mimico, then add access to Rapid Transit at the Mimico Go Train Station with protected entry.... a 12 minute train ride to Union Station via the Go!

Then you have ... On the Go Mimico 
Floor plans, price list and Limited Time *Special Offers that are available here;

  • 3 years No Maintenance Fees
  • Free Parking Spot Included
  • Island included in Kitchen design....   

*Contact me for details and Current Price List.

416 233 9000 or direct at 647 218 2414

Friday, November 29, 2013

Its Risky Moving to a New Place

Sometimes it takes a leap of faith....

To find someone who is honest and trustworthy.

Buying a place is easy;  making the selection that is best for you may include some details you may have overlooked or simply not known about the neighbourhood, the community or recent events.

Easier to jump and repent later?

Decisions in life that can be informed should seek every opportunity for advice.   I am paid from the proceeds of the transaction.  It does not cost extra to Make use of my experience.  Call me today.

647 218 2414 or 416 233 9000

David Pylyp
RE/MAX Realty Specialists Inc., Brokerage.

Monday, November 25, 2013

Now taking Drama and Problem Listings Toronto

Working with difficult or complicated situations we need to Set The Stage For a Successful Sale.

Real Estate involves frequent interactions with people in a multitude of situations, ranging from getting along with divorcing parties to warring siblings to negotiating the sale. Maybe it requires the eviction of a Hostile Tenant and then the sale. Part of my success depends on my ability to effectively negotiate problems. 

Here are some tips for dealing with difficult people and stress inducing situations:

  • Meeting privately – having an audience listening causes more defensiveness.
  • Expect that difficult situations will take time to resolve.
  • Don't take things personally. Recognize that your role is to be calm and objective. 
  • Use Active Listening Skills.
  • Let's Identify The Problem

Clarify the expectations of the sale and the impediments.
Encourage the parties to talk – this will provide more understanding of the “real” issues involved and often provides clues for possible solutions.
Context -  Can we reframe the problem so that it is not personal?  We  can make the problem something that we are all working on collaboratively to solve.

Bring in the legal and conflict resolution people we need.
Call me...  Let's talk
David Pylyp
RE/MAX Realty Specialists Inc., Brokerage

416 233 9000 or direct 647 218 2414


Sunday, November 24, 2013

Lead Gen will Get you page One Google Results

We are inundated with sales calls PUSHING the benefits of Lead Generation Sites. Guarantees of thousands of leads. Come hither! Some agents have abandoned their entire CONTENT MARKETING [you are the local expert] websites, blogging and videos for the promise of Leads. Yes, we all want leads.

Customers will look at your site if you have content. Google will find your site for your content. You will appear in the SERPs because of your content.

Web 1.0 was a business card online. Now it is interactive; Video embedded into a blog => directed to a landing page for your prospects to sign up or contact you. You promote your content on Social Media networks like Pinterest, Linked In, Twitter, Facebook and Google+.  A LOUD AND EFFECTIVE CALL TO ACTION

Without content; you will not be seen or found. 

A lead gen page does not rank for any real estate terms; It is merely a landing pages. Do not substitute all the great things about you and your unique selling proposition and special local flare, with a landing page that describes very little and offers a sign in.


When you search yourself online (and prospects do) demonstrates your ability to market, be found and promote.  Use Google Alerts.

[yourname DOT com] needs to be fed and cultivated to bear fruit.  BLOG!  Create Video!  Post content about your community and then post links to that information on social media sites.  You will be rewarded.

Don't know how?    Find someone to TEACH you how to do it!   Then you will understand what you are hiring people to do for you.

Sunday, November 10, 2013

What is your commission?

When PROSPECTS call me and ask... What is your commission rate? I would answer with a response about sharing, Gross Commissions and "That commissions are always negotiable."

The response was predictable; We only want the price on the phone, They Hang up and Move On.  Now, when they call I give them 2.5% (We can negotiable; if you have another transaction tied to this.[purchase another home]  Never more than 2.5%

There are TWO parties to the offer.

The Selling Agent who brings the client.   

While 85 to 90% of Buyers may start the Home Buying process online, by the time they get to your door they have been educated, pre qualified, obtained a financial commitment from a lender and are under a Buyers Agency Agreement with someone [or possible committed to working with an agent but are not yet under contract with a Broker]

Will you be paying a Selling Broker's commission?  Will you offer more or less that what is average in your marketplace. **It is clearly in conflict with our regulatory body (RECO) for me to interfere with another Broker's Contract. In Plain English, I cannot ask my fellow realtor to discount their commission. I do not know what they are charging their client and may already be offering inducements or incentives. Co operating Broker's Commissions are clearly posted on the Listing forms and repeated on the printed data sheets. These averages are information that is available to you when I present you with the Comparable Market Evaluation (CMA) as I have usually selected 3 or 4 properties that have recently sold and I will be reliant upon these details when defending your asking price.  

I will defend your position to the best of my negotiating ability. I will not disclose your circumstances for selling, URGENCY, motivation or lowest Price. I will keep your secrets. When Agent's call, and they will, they directly ask What will you take?  The best response is that "I know they will take the ASKING PRICE."

So let's examine what I do in a transaction,  I price your home, present you with Print and Video Material, deal with survey, amendments, inspections, contracts and distribute to all involved in this transaction. [Buyers] need to know What might impact their future value by what is being built around them, [your home]  anything that remains in or on the property IE. OIL TANK buried in the yard, or anything that could impact obtaining financing or insurance like Knob and Tube Wiring. I would urge Home Buyers to Obtain a Home Verified Report to confirm if any insurance claims have been made in the last 5 years. 

In all I would suggest to you that easily 30 - 50 hours could be accumulated on your file; prior to the time we attend with at your real estate closing.

Let's examine the LISTING AGENT's of that Commission.
  • Every Agent must pay their Broker. It's a cost of being in business. Licensing, Insurance, in addition to Memberships. 
  • There are the Marketings costs, Brochures, Video, Photography, Time and efforts for websites, online and Social Media Advertising. 
  • The balance is Income for Me. Less the tangible expenses of gasoline Insurance, vehicle lease, cell phones and equipment, cameras and computers and my Friends that Calculate and collect Income Taxes. 
IF I am Listing a house for a few hundred dollars;  Which category can reduced?

THEN How do you expect to achieve the highest value when selling your home IF you do not advertise or promote your property to attract the largest POOL of available shoppers?

Meeting an agent who is prepared to handle your sale from Listing, Pricing to Negotiation (and we hope Multiple offers) and sheppard your transaction, DRAMA free, to the closing table; Anticipate what the hurdles might be and bring in the health care, legal or financial talent to help you as required has value over the inexperienced agent or mere listing that merely offers the illusion of a lower price. Selling yourself is an option but unless it's a smokin' Hot Deal, Buyers are not going to find you.

What is my commission rate?  Usually less than 2.5% Let's Negotiate...

Wednesday, November 6, 2013

Cash Back on Closings

Some are now offering Cash Back on closings if you buy with Me. How can I spin this for you?

I know you love this house; Let's take a serious look at the wiring, get the roof inspected, Search the History, Make sure there is a Survey, Confirm your Commitment to Finance on this specific property making sure you can accommodate all the conditions / requirements.

Evaluate How many times this home has been listed. Search the Sales History for how many Price reductions / renewals have been posted to mask Days on Market. Search for similar homes in the same neighbourhood to help you understand the values. Prepare and Present your offer.  Have Offer Accepted.   Select a Lawyer. Deliver Documents.

Order a Home Verified Report.... 

Cash back on closing? Where does that come from?   You signed a Buyers Agency to be represented.   What if the commission offered to selling broker is ONE DOLLAR? Signing a Buyer's Agency means that I keep your secrets, ability and capacity to myself.  The duration of that Buyers Agency is very location and Duration Specific.

I knew you'd love this house... Do you want to go back out and come inside again?

Tuesday, October 29, 2013

I can just sell it myself

I'd rather sell it myself...   

I often get the question. When I list my house why should I use a realtor? Why not just sell it myself? What would your answer be?

We could cut our kids hair...  My Dad used a bowl till I was 12,

I could paint my house, but I don't.... 
I could read a book and become a gourmet chef....  If I practised...
An amateur photographer can take pictures just as good as the Wedding Photographer...
I could represent myself in Traffic Court but I take a Court Agent.... Why? 

Because they are skilled and understand the process that has specific process and save me from dire consequences as a consumer. 

It not the actual doing ... It's the being prepared for what could happen and knowing what to do when it's necessary.

Drama belongs in the theatre  not in a real estate transaction. We get paid to be knowledgeable, remain calm and coach our clients in an orderly process avoiding Legal missteps and protect your financial net worth.

What do you say?

Lets Talk   647 218 2414

Friday, October 25, 2013

Manufacturing Multiple Offer Senarios

Is it possible to create a situation guaranteed to create a multiple offer Bidding War?

The Toronto real estate market continues to inflame the talking heads screaming about the "end of times" and collapsing values.

Interest Rates will rise but are flat.  Rates have move from 2.5% Variables to Buyers selecting 3.15% five year terms. Has inventory [the number of detached homes in central Toronto] increased? New Buyers arrive every month both from job migration in Canada and those new to Canada. All this adds to the competitive mix.

When pricing a house we take into consideration; proximity to the subject property [your house] How recently the sale occurred, How many improvements and upgrades had been made to that home and ultimately demand for that property in Bloor west, Roncesvalles Village or will you live west and drive from the Kingsway or Markland Wood. See Comparable Market Evaluation.  Access to transit and community have moved up in importance compared to commuting times, gasoline prices and traffic.

So, If we price this property within 2% of where we expect the offers to conclude, and we select a price that is a rounded number [online shoppers are looking for $600 to $650; not $628 to $647,888.]  Do this and you have missed an entire buyer category that may have looked at you but you did not round up or down to catch both the upper and lower limits.  

Some are creating hype in the neighbourhood with POCKET LISTINGS, signs that tease with Coming Soon. This is all to attraction more drive by traffic before the event occurs. Now lets hold offers for 3 or four days prior to examining all the Bidders.  What if Others are making Bully Offers;  take me now. You may not get it later. 

Are the Buyers falling for this?  Or Do you as an informed consumer say; "That house is priced $100,000 below the last sale. I know there will be a bidding war and I will not go that far past their expectation" . I have also had and advocate the "There will be another house equally suitable."  

Some SELLERS have an expectation that sealed bids will somehow appear in their mailbox at 10:00 PM at night.  Drivers (REALTORS) will stealthily approach and drop their 11 page document with a Confirmation of Representation and You have seen my Offer and rejected it page. SERIOUSLY. Some doors no longer have a mail slot. This is simply not happening. Agents call and Register their offer with the Listing Brokerage.  Offers are presented (usually in person) in the order of registration.  Enough copies are on hand for acceptance and signatures. 

The agent has a responsibility to present all offers to you. You have the option of Signing back, rejecting or accepting the offer. Sometimes you have good offers on the table and your agent sends them all away for a final round [to top up your best bid] and no one returns.  Sometimes the appointed offer time arrives and passes, unanswered.

Can you create a Bidding War?   Although there may be multiple potential buyers for that property, each house is unique and may just not create that multiple offer scenario.  You are better off pricing the home properly for sale, than undervaluing your largest asset hoping for enthusiastic Buyers.  Most of all remember, Your home must pass inspection and appraisal post the sale and prior to closing.

Lets Talk 

Wednesday, October 23, 2013

What would you do? Dad remarries

POP QUIZ   Your elder widowed Father surprises you and remarries; for companionship, human contact, a cook and home helper, any of the above and they live happily for a number of years. 

Your Dad then pre deceases your New Step Mom..... 

Is she entitled to:

A) a Share of the will
B) Ongoing Support
C) Half the Matrimonial Home
D) Only what she brought with her

Ontario Canada Family Law Reform Act

How soon can you ask her leave the Family Home?

Do you need answers?   I can help.  Call me for an appointment.

Friday, October 18, 2013

Housing Trends - Millennials

This is such an articulate explanation of Millennials, Boom Bust and Echo and emerging need to Seniors housing I just want to quote the entire article.

Since 1921, the largest annual increase in the number of births occurred between 1945 and 1946, with an increase of about 15% and marked the start of the baby boom period. The largest relative decrease (-8%) occurred between 1964 and 1965, marking the end of the post World War II baby boom.
During the 20 years of the boom, more than 8.2 million babies were born, averaging close to 412,000 a year. By comparison, births in 2008 — when the population was twice as large as during the baby boom — amounted to 377,886. The average number of children per woman was 3.7 during the baby boom period, compared to about 1.7 in recent years.
According to the 2011 Census, 9.6 million persons, or close to three Canadians out of 10 (29%), were baby boomers. In addition to the large number of native births between 1946 and 1965, this generation has benefited from sustained immigration levels since the end of the 1980s.
Considerable research has been undertaken regarding the potential housing market impacts going forward of the “baby boomer” generation. Trends anticipated by various researchers and commentators include:
Possible adverse impacts on home values in some newer neighbourhoods, more distant from the downtown core and/or suburban employment centres, based on more existing units coming onto the market at the same time;
  • Increased demand for smaller units and/or condominium units in “walkable” neighbourhoods that involve less commuting;
  • Higher housing prices in established neighbourhoods that may effectively reduce opportunities for most “Millennials” or “Gen Y” home buyers;
  • Different kinds of housing demand based on values and experiences of “boomers” compared with both older and younger generations; and
  • Increased intensity of local debate over urban growth in cities because retired boomers have time, money, and skills to engage.
A study from the Conference Board of Canada predicted that by 2030 about 80% of new housing demand would be consumers in their retirement years. It would bring a new wave of homes that are low maintenance, such as condominiums or seniors residences. At the same time the shift would put downward pressure on prices of traditional single-detached homes.
Those same boomers, when they were in their 20s in the 1970s, helped drive the market to new heights with new housing starts reaching a record 274,000 in 1976. Then it was the boomer’s children, the “echo-boomers”, who helped drive the market last decade as they began forming households. Now, it’s going full circle with boomers downsizing. In 2006, 57% of condo owners were over the age of 50 while 17% were over the age of 75.
Several commentators believe that equity and house prices may be adversely affected by baby boomers as they reduce purchases and sell holdings during their retirement years. But the perils of relying on demographics alone to predict house prices were illustrated early on. In 1989, the much-discussed paper, “The Baby Boom, The Baby Bust and The Housing Market” by N.G. Mankiw and D.N. Weil, analyzed demographic factors. They predicted U.S. real house prices would fall by 3% annually between 1987 and 2007. Instead, they rose by about 4% a year.
In demographics expert David K. Foot’s 1996 book, “Boom, Bust and Echo – How to Profit From the Coming Demographic Shift”, the real-estate decline of the early 1990s was projected to continue over the long term. He posited this because he believed most boomers had already acquired their houses. The “baby bust” generation following them did not have the numbers to pick up the slack. Instead, housing activity picked up again in the 2000s, as immigration, migration within Canada, and a resurgent economy drove new residential growth.
Estimating the long-run rate of return for Canadian home prices is also affected by the baby boomers. The Canadian Home Builders Association projects a 3.5% annual rate of return on real estate to prevail beyond 2015 — this is the long-run rate of increase for home prices in Canada. In other words, home price gains should simply match the pace of inflation. The long-run rate of return for home prices is primarily driven by macroeconomic fundamentals, such as income and economic growth, and demographics (e.g., population and household formation). Structural changes, including an ageing populace and the number of immigrants as a share of total homebuyers, could influence real estate returns. However, the literature is mixed on whether these changes represent an upside or downside risk to the 3.5% status-quo projection.”
Research primarily undertaken in 1980s and early 1990s showed that when people retire they tend to remain in their existing home until they die or are unable to care for themselves. Baby boomers are the healthiest and wealthiest generation in history and can afford the broad range of services necessary for them to continue this trend and remain in their single family homes for as long as they wish. This projected longevity will keep many of their homes off the market for decades and increase the projected demand for additional land requirements through urban boundary expansions. There is only one certainty about the impact of baby boomers on future housing markets — that it will be spread over a period of 20 years. It is therefore unlikely that it will generate any unmanageable shocks to the structural or financial market underpinnings.   http://www.ottawasun.com/2013/09/20/baby-boomers-and-housing-trends

The big elephant in the room is the liability that our political leaders have had time to prepare;  adequate housing and nursing care for seniors.

David Pylyp
Accredited Senior Agent

Why Do you want a house?

What makes you want your own home?

This is it

All that's amazing
about your own home,

It's your palace

You can't wait to get back here
the experience  of your own home,

How it would make you feel

Will it make your life better
Was it worthwhile to do?

Laugher, dinners birthdays backyards
You may rarely look at it but you will always feel it

The dream of home ownership
Home is always happy to see you

This is your time....  what I do is I help you get there ..

Call me  647 218 2414

Thursday, October 17, 2013

Women love Condos - Men love their Cars

The Millennials will save us;  They will keep buying houses, as the seniors move out... UMMmmm  Actually they won't.

Generation Y, also known as the Millennial Generation, are the demographic cohort following Generation X. There are no precise dates for when Generation Y starts and ends. Commentators use beginning birth dates ranging from the early 1980s to the early 2000s (decade).
Millennials are sometimes called Echo Boomers, due to the significant increase in birth rates during the 1980s and into the 1990s. Millennials are mostly the children of baby boomers or Gen Xers. The 20th century trend toward smaller families in developed countries continued, however, so the relative impact of the "baby boom echo" was generally less pronounced than the original boom. http://mashable.com/category/millennials/

While they are indeed staying within the downtown core, renting, near their jobs and social activities, the gender balance seems almost out of kilter;  the 26 - 35 year old female population is establishing a nest, starting on their journey of a career and starting a family. [She bought a condo]

Their male counterpart is playing Grande Theft Auto V, rooting faithfully for the Toronto Maple Leafs while watching the game with his buddies at the local pub while consuming beer and chicken wings. If he is lucky and determined his circle of influence possibly rents ice time for junior or minor hockey leagues. 

Both are making good money although they may have some student loans still outstanding. The men have nice cars [with matching payments] a few credit cards to support their lifestyle and generally are still living at home.  

The Credit Criteria has become harder to qualify with shorter amortizations and a change to qualifications at the posted rates. [can be as much as 2% higher]  Additional living expenses are the technology that Gen Y is so attached to using; the internets, downloading, file sharing, music and video.  We are not reading books anymore, we download the PDF's to our reader or iPad. We don't talk to strangers we stand and text.

The Job Market is very competitive in 2013. Everyone wants degree and job experience. There are concentrations of jobs for MBA, business grads, Accounting and Financial Majors, Health Services that are Science field related and specialty medical field services are growth fields. The Trades are crying for experienced workers.

Many are working on CONTRACT Positions; this means that you do not have a full time job, [as your employer and release you at anytime] No Full Time Job; No financing is possible for a mortgage.   Although your local loans officer may see you at the branch weekly, the Letter of Commitment will request confirmation that you are in a full time position; or as Business for Self will provide a NOA (Notice of Assessment) that shows your income taxes liability is paid and current. 

Let's deal with affordability.

So lets recap; Millennials buying into the HOT Toronto Real Market at an average sale price of $856k is not a reality. They are actually singles buying condos, disproportionately by gender, Then....   What or Who is driving the market? 

Immigration and Migration to Toronto.  We are in the Top 5 as a destination.
Bragging rights: Toronto, Vancouver and Calgary among world’s top five most liveable cities, ranking says
The Canadian cities were outshined only by Melbourne, Australia and Vienna, Austria, which ranked as the first and second most liveable places respectively.
What do you think?

Friday, September 27, 2013

Will you use video?

If a picture is worth a thousand words then a VIDEO is worth 1.8 Million Words  * Dr. James McQuivey
The second largest search engine behind google is Youtube.  To avoid this medium would be the same as missing the launch of new Yellow Pages directory for your market in the early 80's.  You might be waiting a whole year for your phone to ring.
Today your clients and prospects, Text, email and fax their enquiry to your numbers.
Video presents a unique opportunity for you to connect with a new audience. They watch you, listen to your pace and cadence, your articulate delivery and planned script.  You are telling a story and providing a solution to their problem. Remember Aesop's Fables?
Lets plan your video and control all the aspects we can.
  • Camera
  • Sound
  • Lighting
  • Script
  • Length of Video
  • Editing
  • Being Seen
  • Promotion Distribution
A story will spark interest in seconds; It is imperative to catch the viewers attention in 6 - 9 seconds or they move on. 
There are some great points here;
Get help coaching and educating you through the process as you move towards either self production or professional video work; Shoot stage and help you script. Help with editing and then it needs to be SEO keyworded and uploaded to multiple platforms.
Who am I to give you any advice? The 2103 Stefan Swanepoel Technology Report, David Pylyp youtube.com/dpylyp was named as one of the Top 10 individual real estate channels on YouTube.
Call me 647 218 2414

Danger Will Robinson! Danger

There is danger in the Real Estate market;  but it may not be the Bubble or Over Supply, Meddling and tinkering with Finance Programs or even the addition of higher lot Levy's to the purchase price. Demand continues unabated.

The Toronto Real Estate market just seems to defying logic and continues to increase in price (5% yoy) [and competition] for single family homes.  Taking the average sale price in the 905 [ ring of homes around the 416]   Land Transfer Tax Calculator net of First Time Buyer Rebates.

Average Sale Price in 905          $598,708
Ontario Land Transfer Tax              8,449
Toronto Land Transfer Tax              7,699
Inspection Legals      +/-                 2,500

Mitigating Factors;
You are impacted by two land transfer taxes PLUS the legal fees to close.   I am assuming that CMHC Hi Ratio fees do not apply ( unless you are media where everyone is buying with 5 % down)   Average Mortgage in Toronto is $270,000.

Buyers have been reduced by the Bank of Canada reducing restricting amortization terms to 25 years.* (Yet other insured lenders continue to offer 30 year ams on insured mortgages) You will be taking a five year fixed rate because that is prudent with all the rhetoric about increasing interest rates.  

Selling after 4 years of ownership will incur the following expenses;
  • Lawyer Fees      $ 1,600
  • Mortgage Penalty at 3 months differential  $3,000
  • Real Estate Fees   assumes 5% but we all negotiate  $30,000
  • Irrespective of the property taxes and living expenses of heat, hydro, water, insurance repairs gardening, repairs and improvements....
The Toronto Real Estate market would need to gain just shy of 10% accumulated over the next 4 years JUST to BREAK EVEN.

Real Estate is something to buy and hold for decades; raise a family. Plant roots in a community, Join volunteer Groups and Community Watch.  Worship, have christenings and weddings.  Graduations.

I appreciate the benefits and concepts of home ownership and building equity.  I do not believe in Buying to Flip with our Expense and legal structure of ownership.

What do you think?  Ready to Buy a house?   You're staying put, Right?

Thursday, September 26, 2013

What is US vs Canadian Mortgage Delinquency?

The already low rate of arrears on mortgages insured by the Canada Mortgage and Housing Corp (CMHC) declined further in the second quarter, an indicator which might temper concerns about a possible hard landing for the housing sector.
The government agency said in its quarterly financial report that the arrears rate had declined to 0.32 percent as of the end of June, down from 0.35 percent both at the end of 2012 and at the end of March.
Canada did not suffer the housing crisis that triggered the 2007-2009 recession in the United States, and its government has taken steps to try to cool the Canadian market without causing a crash.

The total amount of insurance CMHC had on loans was C$562.1 billion ($535.3 billion) at the end of June, just C$500 million less than the end of March and comfortably under the C$600 billion ceiling set by the government.

It is vital to understand that in Canada, Mortgage Interest is not deductable [from your income taxes] and we are a full recourse* Mortgage country. *Full Recourse means the BANK will sue you for both the house and your signature (future earnings) .
What are the recent number for Mortgage Delinquency in the United States?

Monday, September 16, 2013

Changing Your Tire = For Sale By Owner

Following the weekend festivities at the Roncesvalles Village Festival we headed home in a soft rain. It was cool and drizzling like an October evening feels. 

The SUV had been parked all day,  It was dark so I didn't notice the flat tire. The low pressure warning had been on for a few days. I ignored it. The vehicle felt funny, awkward, not rolling the same.  I stepped out and walked around. Circle Check...  FLAT.

Found a PetroCanada near the condo, PAID a dollar for the free air and tried to pump it up. The sound was as loud going in as going out.  There was real serious leak. I drove it back to the Condo to have a look in a dry well lit garage.  At least, it would be warm and dry, where I could simply change the tire.

The wheel well contains a tire that needs to be dropped.  OK, Snapped the plastic handle off. (damage item 5) Unscrewed the retaining bolt and the whole well dropped. Thank goodness the tire had a safety belt attached or it could have slipped out.  [I never would have comprehended the storage safety strap in the dark, in the rain.]

Removing the jack from the German Engineered Highly efficient storage area took 20 minutes. It will never go back. Found the secret LOCKING NUT in its resting place. Loosened the wheel lugs prior to jacking up the car, correct procedure, removed scissor jack. Found the correct contact point for scissor jack while sliding under the vehicle. (refer to rain and street comment in para 1)

Removed all the lug nuts and but could not remove the wheel from the car. [Frozen} Playing with it. Kicking it and finally using the 5 pound persuader (sign install) hammer, I successfully shifted the car off the jack, rendering it twisted and inoperative. (damage)

Abandoned the task, REINSTALLED lug nuts on the flat tire, drove to service shop in the morning on a flat, guaranteeing that it would require replacement.

Tire  $ 225
Jack maybe used at $75
unreplaced damage $ 400
Repair $50

Life Lesson?  Priceless.

If I could not finish this job inside a condominium garage; in a well lit and dry area, Parked in a secure safe location, with access to flashlight to read the manual study the components, assemble the pieces, remove the lugnuts with a tire wrench, I would never accomplish this task in the dark in the rain.

Selling a condo is easy,  they are all the same...   We understand the process clearly.
Sound familiar?  You know all the details about your building, Status Certificates, Maintenance Fees and Management. You know the property best.

Reading, Understanding and comprehension is good.  Experience, doing is better. Having right tools and knowledge..   Priceless.

I paid to repair and replace the tire.  Mistakes and choices with real estate are much more expensive to fix. Usually it involves lawyers.   If you think mechanics are expensive... Selling by Owner is more exciting! 

If you are relocating to  or within Toronto, ON Canada, I would like to meet with you.
Call me.

Sunday, September 8, 2013

The Dirty Dozen Reasons you still need me

The Newspapers and media are telling you, how things have changed, you can do everything by yourself and all the information is there...  on the internet


  1. I know where to look up what I need; If I don't know from experience.
  2. I provide a needed buffer or filter between other agents and builder's agents for puffery and embellishment. I am your wingman.
  3. Realtors have specific neighbourhood knowledge. I don't serve the entire GTA from Oshawa to Milton, nor would I dream of going with you to Peterborough. I work a radius of a half hour from 427 and the QEW.
  4. Since, I work a smaller area, I generally have seen and know what has sold and for how much as a barometer of value.
  5. This permits me to evaluate asking to sale prices based on improvements and square footage. Similarly, even Condominiums next door to each other can have vastly different values.
  6. While I recommend an asking price and disclose my expectations of what a seller should expect on a final offer, the Seller decides their own asking price, as the Buyer TRIES their First Lowball Offer  I do not factor in memories and experiences.
  7. We need to understand what market conditions exist that govern your asking prices and time for sale. Are we in a Buyer's or Seller's Market?
  8. We are able to present or receive your offer without emotion; in a business like fashion. Too often, Buyers and Sellers are too emotionally vested in the unique improvements that they installed in the house. We will negotiate on your behalf.
  9. The paper work required to protect you and disclose information to Buyers is getting longer and disclosure is required. We complete all the paperwork, even attending at inspections and the final closing with you.
  10. We have working relationships with other service providers, inspectors, appraisers, accountants, lenders, lawyers, trades people for repairs and agents to find listings.
  11. When Purchasing a Home Verified Reports are available for knowledge of previous Insurance Claims (IE flooding) 
  12. When Selling a Home I can provide Transaction Insurance to guarantee a smooth closing without delay.

Realtors are freeing up the equity that has been locked in properties very often, for 20 or 30 years. While technology has changed our communication methods from mail, to phone, to fax, to email; the underlying function and responsibilities remain the same. Presentations are done iPad or Powerpoint but we need to listen to your needs, Identify the challenges you face and propose solutions.  If I can do that in your presence, face to face, or if need be on the phone, voice to voice,  then I have done my job well.

Or you can email or text me at 647.218.2414

Saturday, September 7, 2013

Homes Closing Insurance

Mark Weisleder makes an excellent point in his recent email (August 26th, 2013) about the cascading effect of one purchaser's financing not coming through and the Seller's purchased another home and then could not close.

This follows on the heels of another conversation I had with Stan Gelman about a bank withdrawing the Financing because the house did not appraise for the agreed Selling Price.  We can debate the details, but a BANK issues a Commitment to Finance based on certain conditions being met; in this case appraisal was only one. Since the property did not appraise the Financing was withdrawn and a DOMINO effect ensued for NON closing transactions.
Due to the growing possibility of buyers being declined their financing at the last minute, sellers need some protection in the event their closing is delayed or cancelled and they are forced to carry 2 homes for an extended period of time.
One company that I have dealt with that provides this coverage is Canadian Home Shield. Their President, James Vlachos, who is an insurance broker, advises me that for as little as $99, sellers can purchase a $25,000 insurance policy that will cover all mortgage payments, real estate taxes, utilities and insurance premiums up to a total of $25,000 in the event that the deal does not close through no fault of the seller. I personally have had 2 seller clients recover over $9,000 in costs after a buyer failed to close their purchase agreement.
Buyers can also purchase breakdown insurance protection for their home systems and appliances. Since most real estate contracts provide that sellers only warrant their systems and appliances to the date of closing, this provides buyers with the opportunity to purchase additional insurance protection for a year after closing.
For further information, please see the attached website: 



The Agents in the transaction should not have waived the Condition for Financing UNTIL the appraisal had been completed.  However, within the logistics of the transaction, a Financing Waiver is prepared 5 days post the Acceptance and Acknowledgement [of a Deal being made]. This has no bearing on the closing date. I am not making excuses or blame, this is exactly how I would normally proceed with a transaction. 

With changing Home Values, spirited Bidding, Slipping Condo Values, Changing Credit qualifying Criteria  there is ever more need for vigilance on the part of Buyers and Sellers. I intend to meet that challenge with West Toronto Homes.

I will be including this Transaction Insurance in all future Listings as a part of my Bundle of Services. If you are buying all cash, none of this applies; it doesn't matter does it? 

Would you take this insurance?