Wednesday, December 30, 2009
Thursday, October 15, 2009
Bidding Wars
This week my team and I participated in three bidding war situations. In the first scenario we represented the buyer and were up against nine other offers. We were fortunate in that although our client did not have the best offer in terms of price we had a “clean," non-conditional offer.
In this instance, our buyer had arranged for a home inspection to be done before submitting the offer.
In the second scenario, we represented the buyer and were up against two other offers. Although we submitted a non-conditional offer we were not successful as one of the other offers came in with a much higher price.
In the third instance, we represented the owner of two properties that were available for lease.
We received two offers on one of the properties and the result was that we were able to secure a leased price in excess of the listing price. The other good news for this owner was that the second buyer decided to lease the other property that was available. In the end -- a win/win situation for everyone!
Bidding wars are a reality, particularly in a hot real estate market as we are seeing now.
Winning a bidding war is a lot like gambling -- the stakes are high and you need a bit of luck to win! However, there are a number of ways you can prepare yourself before entering the bidding war process:
- Get mortgage pre-approval -- know how much you can afford to pay for a home. Arrange to put down the largest deposit you can as this will show a seller that you are serious about purchasing their home and are acting in good faith.
- In general, a “clean” offer will win over a conditional offer in a bidding process. For example, don’t make your offer conditional upon the sale of your current home. Additionally, you may consider doing a home inspection before submitting your offer.
- Know the fair market value of the home you are interested in. This is where an experienced Realtor will be invaluable to you. They will prepare a comparative market analysis for you so that you can submit an offer with a price that is realistic.
- Remember, in a multiple offer situation homes go for in excess of the asking price. You must feel confident that you are not over-extending yourself to purchase the home. On the other side of the coin, if you do not win in the bidding process you must feel comfortable that you submitted an offer with the highest price you were willing to pay
Wednesday, April 22, 2009
Celebrate Earth Day Every Day!
Undoubtedly you have seen many ads, campaigns and events to promote Earth Day, April 22, 2009. As a homeowner, you can celebrate Earth Day every day, by using any of these earth friendly tips to help your home go green!
Water Consumption can be minimized by installing low flow toilets and faucets, or using kits sold at a minimal cost by the City of Toronto to modify your existing appliances.
Organic Waste can be composted. Many residential areas of Toronto have organic waste collected by the city, but you can save even more gas emissions by composting these materials in your own yard. For an easy guide to making your own compost, click on the link below:
http://www.motherearthnews.com/Organic-Gardening/2006-10-01/Compost-Made-Easy.aspx?page=5#SASCPOWB
Repainting During Renovations? Select paints that are either recycled or non-VOC brands (non-VOC are non volatile organic compounds). Demand for such products have increased their availability and if you visit your local paint store or hardware/renovation store they can provide you with options on brands, colours and finishes.
Conserve Energy by installing compact fluorescent light bulbs, and buying Energy Star appliances when replacing old ones. Also, use programmable thermostats and proper insulation to lower energy use and monthly bills.
Each individual act might be just a small adjustment to your routine, but if everyone makes one or two small changes it adds up to a big difference to our planet!
Happy Earth Day!
Water Consumption can be minimized by installing low flow toilets and faucets, or using kits sold at a minimal cost by the City of Toronto to modify your existing appliances.
Organic Waste can be composted. Many residential areas of Toronto have organic waste collected by the city, but you can save even more gas emissions by composting these materials in your own yard. For an easy guide to making your own compost, click on the link below:
http://www.motherearthnews.com/Organic-Gardening/2006-10-01/Compost-Made-Easy.aspx?page=5#SASCPOWB
Repainting During Renovations? Select paints that are either recycled or non-VOC brands (non-VOC are non volatile organic compounds). Demand for such products have increased their availability and if you visit your local paint store or hardware/renovation store they can provide you with options on brands, colours and finishes.
Conserve Energy by installing compact fluorescent light bulbs, and buying Energy Star appliances when replacing old ones. Also, use programmable thermostats and proper insulation to lower energy use and monthly bills.
Each individual act might be just a small adjustment to your routine, but if everyone makes one or two small changes it adds up to a big difference to our planet!
Happy Earth Day!
Thursday, March 19, 2009
How to Use New Home Buying Incentives to Your Benefit!
Incentives for first time home buyers, or for home owners to make improvements on their homes were included in the 2009 Federal Budget. Here are some examples of what is being offered:
RRSP Home Buyers Plan Improved
First time home buyers have had an increase in the withdrawal amount allowed from their RRSPs, from $20,000 to $25,000.
Money withdrawn from the RRSP is to be paid back within 15 years. If it is not, it will lose its tax deferred status, and if scheduled annual payments cannot be paid in full, the unpaid amounts must be reported as income.
Tax Credits For Home Buyers
First time home buyers have also seen some relief on a tax credit that can provide up to $750 in tax relief on the purchase of their first home. To qualify neither the homeowner, their spouse or common law partner can have owned and lived in another home in the year of purchase or any of the four preceding years.
Green Grants
Home and property owners can apply for grants of up to $5000 for making eligible energy-efficient improvements, such as upgrading furnaces, increasing insulation etc.
Tax Credits for Home Renovations
Now through January 31, 2010, homeowners can claim a tax credit for up to 15% of renovation expenses between $1,000 and $10,000. Listed below are some examples of what does and does not qualify:
Eligible
*renovating a kitchen, bathroom or basement
*new carpet or hardwood floors
*building an addition, deck, fence or retaining wall
*a new furnace or water heater
*painting the interior or exterior of a house
*resurfacing a driveway
*laying new sod
Ineligible
*purchase of furniture and appliances (e.g. refrigerator, stove, and couch)
*purchase of tools
*carpet cleaning
*maintenance contracts (e.g. furnace cleaning, snow removal, lawn care, and pool cleaning)
For more information on housing related stimulus in the 2009 Budget, visit the Canada Revenue Agency website at www.cra-arc.gc.ca and search for “Home Buyers Plan.”
RRSP Home Buyers Plan Improved
First time home buyers have had an increase in the withdrawal amount allowed from their RRSPs, from $20,000 to $25,000.
Money withdrawn from the RRSP is to be paid back within 15 years. If it is not, it will lose its tax deferred status, and if scheduled annual payments cannot be paid in full, the unpaid amounts must be reported as income.
Tax Credits For Home Buyers
First time home buyers have also seen some relief on a tax credit that can provide up to $750 in tax relief on the purchase of their first home. To qualify neither the homeowner, their spouse or common law partner can have owned and lived in another home in the year of purchase or any of the four preceding years.
Green Grants
Home and property owners can apply for grants of up to $5000 for making eligible energy-efficient improvements, such as upgrading furnaces, increasing insulation etc.
Tax Credits for Home Renovations
Now through January 31, 2010, homeowners can claim a tax credit for up to 15% of renovation expenses between $1,000 and $10,000. Listed below are some examples of what does and does not qualify:
Eligible
*renovating a kitchen, bathroom or basement
*new carpet or hardwood floors
*building an addition, deck, fence or retaining wall
*a new furnace or water heater
*painting the interior or exterior of a house
*resurfacing a driveway
*laying new sod
Ineligible
*purchase of furniture and appliances (e.g. refrigerator, stove, and couch)
*purchase of tools
*carpet cleaning
*maintenance contracts (e.g. furnace cleaning, snow removal, lawn care, and pool cleaning)
For more information on housing related stimulus in the 2009 Budget, visit the Canada Revenue Agency website at www.cra-arc.gc.ca and search for “Home Buyers Plan.”
Tuesday, January 27, 2009
The Effects of the Land Transfer Tax on Real Estate Sales in Toronto
You’ve probably seen the news lately: real estate sales down by 50% compared to this time last year! Although there are many things to take into consideration like the changing economy and hesitation on behalf of Canadians while watching the real estate market in the states, there are still more sides of the story…
Take, for example, the effects of the Land Transfer Tax, a levy of up to 2% in addition to the province’s taxes, which took effect Feb. 1, 2008.
The C.D. Howe study, “Sand in the Gears”, reported a drop in the number of houses sold in Toronto from February, when the tax was implemented, until August, when the real estate market began to falter. Comparing Toronto sales with those in the suburbs, there has been a 16% decrease in sales and a 1.5% reduction in house prices.
City Councillor Shelley Carroll, the mayor's budget chief, is predicting that the effects felt by the land transfer tax should stabilize in a year or so, but added that the market was artificially inflated when some buyers hurried to purchase their property before it took effect.
None of us has a crystal ball to look into the future, but it will be interesting to see what the real estate numbers in February 2009 will look like. A little less askew?
Take, for example, the effects of the Land Transfer Tax, a levy of up to 2% in addition to the province’s taxes, which took effect Feb. 1, 2008.
The C.D. Howe study, “Sand in the Gears”, reported a drop in the number of houses sold in Toronto from February, when the tax was implemented, until August, when the real estate market began to falter. Comparing Toronto sales with those in the suburbs, there has been a 16% decrease in sales and a 1.5% reduction in house prices.
City Councillor Shelley Carroll, the mayor's budget chief, is predicting that the effects felt by the land transfer tax should stabilize in a year or so, but added that the market was artificially inflated when some buyers hurried to purchase their property before it took effect.
None of us has a crystal ball to look into the future, but it will be interesting to see what the real estate numbers in February 2009 will look like. A little less askew?
Tuesday, January 20, 2009
Property Tax Assessment Appeals
Recently homeowners in Toronto have received their property tax assessments in the mail and I have been asked for advice on what they can do if they feel the assessment is not an accurate reflection of the value of their home. You can appeal the assessment, and I myself have had success in lowering my property taxes by doing so. This may not be the case for everyone, but it might be something you are interested in pursuing nonetheless.
Metropolitan Property Tax Consultants (416-482-3000) are one of the companies in Toronto that provide such a service. They will charge you half of the amount of the savings on your property taxes, and in the case that there are no savings, there is no charge.
By lowering your property taxes you may not only save yourself money, but also increase the appeal of a property you have listed or are thinking of listing.
Metropolitan Property Tax Consultants (416-482-3000) are one of the companies in Toronto that provide such a service. They will charge you half of the amount of the savings on your property taxes, and in the case that there are no savings, there is no charge.
By lowering your property taxes you may not only save yourself money, but also increase the appeal of a property you have listed or are thinking of listing.
Tuesday, January 13, 2009
A New Year, A Fresh Start!
A new year is a great time to make a fresh new start, and what better place to start than by giving your living space a fresh new start. January seems to be a time to sit back and look over all the festive accumulations/great boxing day deals and say, “What do I do to make my living space more liveable…or saleable??” (These handy hints will also make any future moves so much easier)
· Start with removing all the festive decorations. For easy storage and an even easier way to find them again next time you need them, store them in see-thru plastic storage containers. They will stack nicely on top of one another, and you will be able to see the items packed in each container. Once the decorations are removed you will find it less overwhelming to deal with the rest of the house.
· During this time of year, gifts can add to the clutter. A good rule of thumb is out with the old, in with the new. When you have a new item to bring into the house: be it an appliance, an item of clothing or piece of furniture, don’t keep the old one *and* the new…do you really need 3 electric can openers?
· If these replaced items have only been gently used don’t just toss them in the garbage. Instead donate them to a local charity or you can post them for sale on a website such as craigslist.org or have a garage sale. In the spring contact me, Elli Davis, regarding free signs to advertise your garage sale!
· Label boxes for “Donations” and/or “Garage Sale” and designate a corner of one room for these boxes. As you gather items from the other rooms it will make your donation drop off one simple trip, and your garage sale more organized.
· A simple tip to help decluttering is to tackle just a small area and move on…don’t think of the daunting task of the whole house. Pick one room to start with, one day sort through the surface areas: countertops, floors, etc., the next day choose a cupboard or two, the next day a couple of drawers…you get the idea! Decide which items you really truly want to keep, which won’t be used for awhile and need to be stored and which are on their way out the door: donation, sale or garbage.
· When you choose items to be stored: mark the box with the date. If you have not needed to open that box to retrieve the items inside in over a year, drop that box off at a donation centre without opening it. If you didn’t need them in a year, you won’t need them.
· Finally: once you have done this great job weeding out unnecessary items and organizing what has been left…resist the temptation to bring more clutter into your home! Every time you go to make a purchase, stop and think, really think, “Do I need this, or do I just *want* it?” and remind yourself of all the effort you just went to to minimize the amount of clutter in your home…is that fourth electric can opener really worth all the aggravation??
These tips can be used at any time of year, but sometimes the inspiration of a new year is a helpful nudge in the right direction.
· Start with removing all the festive decorations. For easy storage and an even easier way to find them again next time you need them, store them in see-thru plastic storage containers. They will stack nicely on top of one another, and you will be able to see the items packed in each container. Once the decorations are removed you will find it less overwhelming to deal with the rest of the house.
· During this time of year, gifts can add to the clutter. A good rule of thumb is out with the old, in with the new. When you have a new item to bring into the house: be it an appliance, an item of clothing or piece of furniture, don’t keep the old one *and* the new…do you really need 3 electric can openers?
· If these replaced items have only been gently used don’t just toss them in the garbage. Instead donate them to a local charity or you can post them for sale on a website such as craigslist.org or have a garage sale. In the spring contact me, Elli Davis, regarding free signs to advertise your garage sale!
· Label boxes for “Donations” and/or “Garage Sale” and designate a corner of one room for these boxes. As you gather items from the other rooms it will make your donation drop off one simple trip, and your garage sale more organized.
· A simple tip to help decluttering is to tackle just a small area and move on…don’t think of the daunting task of the whole house. Pick one room to start with, one day sort through the surface areas: countertops, floors, etc., the next day choose a cupboard or two, the next day a couple of drawers…you get the idea! Decide which items you really truly want to keep, which won’t be used for awhile and need to be stored and which are on their way out the door: donation, sale or garbage.
· When you choose items to be stored: mark the box with the date. If you have not needed to open that box to retrieve the items inside in over a year, drop that box off at a donation centre without opening it. If you didn’t need them in a year, you won’t need them.
· Finally: once you have done this great job weeding out unnecessary items and organizing what has been left…resist the temptation to bring more clutter into your home! Every time you go to make a purchase, stop and think, really think, “Do I need this, or do I just *want* it?” and remind yourself of all the effort you just went to to minimize the amount of clutter in your home…is that fourth electric can opener really worth all the aggravation??
These tips can be used at any time of year, but sometimes the inspiration of a new year is a helpful nudge in the right direction.
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