Toronto Real Estate Report

New Website

Why does someone visit a real estate website?  To look for homes for sale and get information.  With this in mind I have launched my new website with all sorts of great new tools and features.

When searching through the listings, you can now request a Street View, and see what the neighborhood actually looks like, and then you can map the area for schools, restaurants, grocery stores, day cares etc., an awesome way to view listings!

Looking for a home?  Check out the "Search by Map" tool and really target your search.

A variety of cool calculators are available, such as loan and mortgage calculators, rent vs buying, land transfer tax and amortization schedules.

The Real Estate News link will keep you informed, with regular updates to keep you on top of the most current real estate headlines.  Real Estate reports are available on a variety of topics and tips for both buyers and sellers make this an excellent resource.

Please check it out and let me know what you think? HelgasHomes.com

No Confidentiality for Offers

Beware.  As a buyer, if you submit an offer to a seller who is just posting their listing on the MLS, and it's not being handled by a Registered Salesperson, there is no obligation to keep the terms and conditions of your offer confidential.

Real Estate Brokers and Salesperson's are governed by the Real Estate and Business Brokers Act and must abide by it's regulations, but it does not govern the conduct or actions of non-registrants.

So if you submit an offer to what is essentially a "For Sale By Owner" situation, be prepared to have your offer shown to other interested parties, and they can use it to shop for a better offer.  Basically use your offer to better their position.

You know the saying goes " A lawyer who represents himself has a fool for a client" 

Real estate can be complicated, hire a professional, don't be a fool.

Mere Postings

Everyone has read about the settlement between the Canadian Real Estate Association (CREA) and the Commissioner of Competition.  It basically allows a seller to "merely" post a listing on the MLS for a flat fee. The broker or salesperson who takes this listing has chosen or agreed not to provide services to a seller other than submitting the listing for posting on the MLS system.

So, just because it's allowed, doesn't mean that professional real estate sales people will participate.   In fact if they are professional and bring value to the transaction, rather than just acting as a sellers gateway to the MLS, they won't participate.

In fact they would be crazy to take a mere posting.  The Real Estate Council of Ontario (RECO) is the industry watch dog and enforcer.  According to a recent publication, they have reminded us that regardless of the terms of the Consent Agreement, all persons registered to trade in real estate in Ontario must comply with the Real Estate and Brokers Act, 2002 (REBBA) and its regulations including the Code of Ethics.

If a Realtor takes a mere posting they are obligated to verify the information before posting on the MLS and are responsible for its accuracy.  They continue to be bound by the requirements under REBBA, which is a very intense set of rules and regulations that guide our industry and PROTECT the consumer.  Which is why a professional Realtor can't take a listing and agree not to provide any service, our real estate licence actually prohibits it.

As the saying goes, " If it looks like a duck, quacks like a duck and walks like a duck, it's a duck" and if you act like a Realtor you have to provide the services of a Realtor. However REBBA doesn't guide real estate commission, that would be anti-competitive, and I get that.  Realtors can charge whatever commission they like, based on the value of their service. Consumers are free to choose who to work with, and what fee they are willing to pay for the service. Trust me, real estate is highly competitive.

It all comes down to value.  I get paid to produce a result, not to merely post a listing.  End of story.

Check out the details of the consent agreement: Real Estate Council of Ontario

How To Win A Bidding War

Go high and go firm! That's the strategy.  What it means is to pay more than list price, which almost goes without saying when there are multiple offers, but you are also expected to have a firm offer, which means no conditions.

No condition on financing, so you may want to run the deal past your mortgage advisor.  But keep in mind that you may be pre-approved for a certain dollar figure, but if the bank doesn't agree with the value relative to the price you paid, you will only get your mortgage on the appraised value. Be very careful and don't get too caught up in the frenzy, there will always be another house.  A good Realtor will provide you with a market analysis of comparative properties that have sold, and will help you to determine current market value.  In a market that is rapidly moving upwards you may have to pay more than the last sale to get the home. 

No condition on a Home Inspection. You have some choices here.  You can schedule a home inspection prior to the offer date.  That way you know what you're dealing with and your offer will reflect the conditon of the home.  This is risky, as you may end up paying roughly $400 and still not have the highest offer or get the house, but many buyers would not be comfortable without a home inspection. 

Some homes have a pre-listing home inspection available for review.  Generally this is for information purposes only, and you can't rely on the report, often there is a disclaimer to this effect in the Schedule of the offer.  The Home Inspector is only responsible to the person who contracted their services.  Whether it's purchased by a potential buyer or the home seller, the information will be the same, and is an un-biased assessment of the home, they can't hide anything for the seller or fail to report findings.

My opinion is that you could get a few different home inspectors to look at the same house and they may all find something different.  It's a visual, non-intrusive inspection of the home, which may not be able to reveal all the potential issues a homeowner may face.  There is no perfect home, so be prepared.

Bring a large deposit. Size does count, the larger your deposit, the more attractive your offer is.  Make sure it's either certified or a bank draft.  If your offer isn't the one chosen, you just take the cheque back and re-deposit, a little bit of a hassle, but necessary.

There are a few other creative ways to make your offer more attractive......but I can't reveal all my secrets.

Good luck.

Picture by: Photographer: renjith krishnan

Semi-detached homes are hot!

Buyers are hot on the trail of semi-detached homes in central Toronto.  Trouble is, not enough good listings and too many buyers.

Here is an example of a few recent bidding wars in the desirable Yonge/Eglinton neighbourhoods.

Listed for $599,000 - attracted 22 offers! sold for $706,000

Listed for $648,000 - sold for $707,000

Listed for $649,000 - attracted 5 offers, sold for $722,800

Over the last 30 days, based on 11 semi-detached homes sold in the C10 MLS district, the homes sold between $585,000 up to $722,800, average price of $661,000.  They sold for between 93% - 118% of list price, average of 104% of list price.  There was only one home that sold below $600,000.

It's intersting to note that semi-detached homes don't necessarily sell for less than a detached home, as they will often provide the same amount of living space, and sometimes they can be larger than a detached. The features that will drive up value include a private drive, main floor family room, main floor powder room, kitchen and bath renovations.

We've had a few bumps on the real estate road over the last couple of years, but overall the market is strong, and increases in value year over year.  What are you waiting for?  BUY REAL ESTATE!  I believe it's the best long term investment you can make.

It's Getting Cold

As winter slowly approaches here are a few facts about winter in Toronto.

1. The snowiest day was on December 11th, 1944 with 48.3 cm of snowfall. The City was shut down, all traffic except emergency vehicles was banned from the streets.  The armed forces cleared the roads and sidewalks.  Home deliveries of milk, ice and fuel were cancelled and funerals postponed.
2. Statistically Toronto has a 57% chance of having a White Christmas, according to Environment Canada.  Snow does fall before Christmas, but most of it falls from mid Janaury to March. However, over the last 170 years, it has always snowed in Toronto after the first day of Spring.
3. Early in 1999 a series of snowstorms hit the City, with the first and the worst arriving on January 2nd, dumping somewhere between 20-40 cm of snow.  Four more storms followed, dropping a record 118 cm of snow in 12 days, which was 4 cm more than the average annual for the city. The Mayor at the time, Mel Lastman called in the military and more than 400 troops arrived to get the City moving again. Snowstorms are extremely expensive to clear.  Toronto usually spends $65 million annually on snow removal, by the end of January 1999 the snow had cost the City $70 million!

 Now what would Ford do? Forget the gravy train, what about the snow plows?

I saw a Termite

We were doing a home inspection in the Victoria Park & Danforth area, known termite territory.  Usually if a home has been treated for termites, the owner acknowledges this, the listing agent discloses the information in the listing details and it's no big deal.  But in this case, there was no such disclosure, but the home inspector identified the drill holes along the driveway and in the basement.

So, I asked, did the owners have termites? No, was the answer, "they've never seen a termite". Oh really? So we had Aetna Pest Control in to investigate a bit further.  YES, the house had been treated for termites.  In fact the sellers had removed the front porch, which was directly related to the termite problem.  Aetna did the treatment, and in fact it was good we were having them back, so they could check the cement foundation they recommended at the front of the house where the porch was, had been done, and the treatment was successful.

The inspector showed us the termite tracks that had been active in the basement, but no more.  Then we went to the backyard.  He explained that the termites are in the soil throughout the neighbourhood.  We walked around the big tree in the backyard, he spotted some termite tracks, opened them up and there  they were.......just eating away at the tree.  Well, now I assume they were eating, they are tiny, so I couldn't exactly see them chewing, sort of like a little grain of rice, that moves a bit.

Which also brings up another important aspect of termite areas, don't share plants from your garden if you know you're in a termite area, and be careful if you take them from your friends.  You need to practice "safe gardening", because you could actually move termites into your yard via the rose bush your friend is giving you. 

An online article at Garden Ontario points this out:  

Remember that roses and raspberries, which have old dead-wood canes, are particularly attractive to termites. Look for insects about one-quarter inch in length, creamy white in colour, fatter than your typical ant, and slow-moving. 

To read the entire article: Garden Ontario

To find out more about Aetna Pest Control check out their website: AETNA

One Dollar Commission

The Toronto Star reports today "Get set for cheaper fees for Canadian real estate transactions."

The article details the recent agreement between the Canadian Competition Bureau and the Canadian Real Estate Association which will now allow real estate agents to provide "innovative services and pricing options to customers." Toronto Star Article

This is a landmark deal?  Real estate agents have always been allowed to be innovative and offer a variety of pricing options.  A listing agreement can be arranged based on 5, 6 or 7% commission. There is no price-fixing in commission fees, the rate is related to the value of the service. You can also charge 1% or NOTHING, if you like to work for free.

I noticed a listing on the Multiple Listing Service this week, which has been on the market for 89 days, before this landmark deal was reached. The commission offered to the Co-operating Broker (the one who brings the buyer) is $1. The remarks to Brokers is as follows :

The Seller Is Selling Privately And Will Negotiate Directly With Cooperating Broker Under Guidance Of His Lawyer. All Appointments And Offers Are To Be Arranged Directly With The Seller

So there you have it folks! Innovative pricing, $1 commission, and someone who is selling privately and is listed on the MLS. Congratulations!

But what does that accomplish? The listing has been reduced from $709,000 to $689,000 and has been sitting on the market for 83 days. Statistics indicate that properties that are handled by a skilled professional Realtor will be on the market for less than 30 days, and on average sell for 97% of list price.

One of my clients, was very eloquently able to communicate the value of a Realtor, in his letter of recommendation to me he wrote:

While the financial results you obtained were exceptional what impressed me most was the thorough and professional approach that you took throughout the process. You were industrious, practical, and honest in your treatment of both the prospective buyers and me.

Perhaps your greatest asset is your attention to, and skill at, communication. I was very inexperienced in the process of selling a house but such was the information you provided regularly that I came to feel comfortable and competent, and always in the loop.

 My family chose you over agents that we knew and who offered a discount rate. You were worth every penny of your commission and proved once again that one usually gets what one pays for.

I rest my case.

Complaint about the City?

Who do you call to complain about the administration of the City of Toronto? Did you know that the City has an Ombudsman? The office opened in April 2009 and processed 1057 complaints in the first year.

The office is only to be used as a last resort, after you have tried to sort it out with the City officials. Here are a few facts from the website:

• Ombudsman are impartial investigators of the public’s complaints about the administration of City government, including its agencies, boards and commissions.
• We look at problems when the public service’s procedures and processes have not resolved the complaint.
• The Ombudsman does not question an organization just because someone does not like or disagrees with a decision. You must be personally affected and be able to demonstrate that you have a legitimate complaint as a result of a decision, act, omission, or recommendation.

To read more about this office, check out the website Toronto Ombudsman

Send an email at ombuds@toronto.ca

Or call the office at 416-392-7062 to complain or have them speak to your group about specific City services they may be affected by.

Up for a paddle?

On a hot summer night you might want to consider heading down to the waterfront and enjoy the lake on a kayak or a canoe. The temperature by the lake is several degrees lower and the lake often offers a cool breeze.

The Harbourfront Canoe and Kayak Centre offers a wide range of programs including early morning social paddles, evening socials & bbq's,  kayak night cruises and guided tours of the Toronto Islands. 

According to their website: "The 13 Toronto Islands are on our doorstep, with secluded beaches, bird sanctuaries, washrooms, picnic areas, a cottage-country feel, and many waterways to paddle and relax. Stay healthy and enjoy wilderness in the city!" 

Check out their website for full details - Paddle Toronto