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?