Britishguyhomes,Realty information, Ken Calcutt, Kingston ON

Is it Time to Pop the Hood on Real Estate Commissions?

2011-12-16T20:13:00.028-05:00

What is it about Real Estate that encourages such a firestorm when it comes down to payment for services rendered? Why is it that REALTORS® face such scrutiny for charging commissions? Is it about the amount? Is it about the service? Is it that consumers feel that there is an inequitable gap between value and dollars paid?

Commerce, in its most basic form, comes down to providing a product or service in exchange

for some sort of compensation. In virtually every industry designed for profit, this is a common

practice, easily accepted and done both by consumers and providers of said service.

What is it though, about Real Estate that encourages such a firestorm when it comes down to payment for services rendered? Why is it that REALTORS® face such scrutiny for charging commissions? Is it about the amount? Is it about the service? Is it that consumers feel that there is an inequitable gap between value and dollars paid? Herein may lie the problem. The problem with concept of value in a transaction is that it is subjective and that varies depending on the context. There has been a concerted campaign on behalf of REALTORS® to help to articulate the value that they bring to the table, but perhaps this needs to go further, to help the public both understand the concept of value as it applies to

REALTOR® commissions, and how the mechanics of the industry themselves work.

With the introduction of more For Sale by Owner operations and private seller opportunities in the market place, it seems that now, more than ever, it makes sense to look at an industry from the inside out- and perhaps even raise the hood so that the public can look inside and see how the engine works. It doesn’t work in every instance, but usually the best way to correct misperception is through open communication and concerted re-education in light of the facts.

Optics are Everything
There could be many possible explanations as to why Real Estate, as an industry receives such scrutiny about commissions, but much can be tracked back to misinformation and consumer misperception about how the industry actually works, operationally. The truth is, there is much work done by REALTORS® without actually realizing a dime, and one could argue that it is this kind of work that keeps the machine running.
Robert J.Morrow, Editor: www.HamiltonHomeReview.com,Sales Rep, Chase Realty Inc, Brokerage says, “Commissions are a sore spot because perception is that REALTORS®are paid too much. Consumers see the "big" numbers when a house is sold and assume this is happening on a daily or weekly basis. In fact, the average agent sells only 8 houses a year,meaning all the rest of the time he/she is dealing with people who either don't buy, or is dealingwith houses that don't sell. When a house is sold, that commission often has to last weeks if not months.”

“Sure there are a few who close more deals than that but they are an elite few. Of course, it is these few that are focused upon when anyone decides to attack the industry. REALTORS®driving expensive cars, buying large houses, and travelling a lot seems to be frowned upon. Meanwhile, literally every lawyer worth his salt drives a minimum $60,000 car, lives in luxury, and travels extensively. The difference is that lawyers are seen as a necessity, whereas real estate agents are not.”

Nick Gewarges, Sales Representative, Right At Home Realty Inc agrees. He believes that many focus on “big picture” numbers without actually knowing how they really work in “the big picture”. The most common misperception about commission is the way that a consumer believes it is calculated. If a REALTOR®makes “2.5%” commission, they really only see a small portion of that for themselves. Commissions are quickly diminished once we factor in our marketing fees, cover the listing expenses we incurred, give our broker their portion, pay our National, Provincial, and local board fees, maintain our licences through continuing education, and so on.

”Seemingly, there is a fundamental misunderstanding and disconnect between consumer perception and reality, Laurin Jeffrey, Real Estate Salesperson, Century 21 Regal Realty says all dollars are not equal, in the sense that REALTORS®are not simply lining their pockets with the compensation that they receive- in fact far from it. “People think we are paid too much for what we do. But they only see the tip of the iceberg. They never see anything that goes on behind the scenes. They also do not realize that we are essentially self-employed and have to pay for all of our own costs. From advertising to business cards, flyers, signs, websites, feature sheets, mailings, cars, insurance, association fees, brokerage cuts and more. This is what you are paying for with the commission.”

Is There Such a Thing as a Free Lunch?

It’s not indelicate to suggest that you are in business to make money. You have a living to make and expenses to pay, in much the same way as the consuming public does, and in addition, many expenses fall on your own shoulders, as a self-employed individual.

Going back to the concept of applying context to value, if consumers had a better understanding of the operational side of Real Estate, the conversation may be less contentious, Says Karen Filice, Broker of Record/Owner, Cirrius Realty Inc., Brokerage: “People forget that nothing is free. If they were employed and their employer said we'll talk about money later and pay you only if we sell something; what do you think their reaction would be? But sellers and buyers feel that we as REALTORS®should "work" for them, do computer work, marketing, flyers, commit hours to showing them homes, driving them in our cars, using our gas and wear and tear, hours of open houses for zero dollars?

”Furthermore, there are several benefits that the general public receives as a by-product from REALTOR®commissions. REALTORS®pay into provincial, national and local bodies that lobby on behalf of the industry- and the public on matters of housing (e.g. lobbying to keep capital gains on a home tax-free, TREB lobbying to remove the municipal Land Transfer Tax etc). REALTORS® through commissions, have paid for, and set up much of the infrastructure for the distribution and access for information for real estate websites etc. So then, there is much to benefit from in theory, by the average consumer, without actually paying out anything all in commission.

Another common misperception is that groups like CREA and OREA are government bodies, funded by taxpayer dollars, which of course is not true.

The Future of Commission

With the marketplace evolving and private sellers taking their place in the market, and with continued threats from the Competition Bureau, what are the implications when REALTOR® commissions begin to erode- not just to an individual’s bottom line, but to the industry as a whole

Jeffrey says, “If the Competition Bureau succeeds in their witch hunt and persecution of us, then we have a problem. As the internet continues to intrude into our lives, people may feel they need us less and less. We need to make ourselves useful and as integral as possible. All of our associations need to wake up and get out there on the offensive. Once we are on the defensive, it will be too late.”

Morrow says that it is not just the commissions themselves that are eroding, it is the public perception of the necessity of the REALTOR®: ”Private sale franchises have something to do with this perception. By providing a forum for wannabe private sellers, they have eroded the perception of necessity. Everyone thinks they can sell a house themselves, and because it occasionally works, the theory is that agents are redundant.”
“Unfortunately, as statistics show, a very small percentage of homes sell this way, but the industry is not very quick to substantiate this, and private selling companies don't have to prove the statistics they throw around. Therefore, the misconception is that private selling is growing when in fact, it isn't. More people are trying it, yes. But, eventually, most them turn to organized real estate to get the house sold. For Buyers, organized real estate is leaps and bounds ahead of private search engines; access to data and ability to analyze it being primary reasons.”

Filice says that this is the new economic order in Real Estate, “This (Private Sellers) are a piece of constantly changing landscape. There will always be private sellers; there will always be REALTORS® The real question is how will they interact and how many will be left standing at the end of the day.” Essentially, if commissions continue to erode, the revenue will have to come from somewhere to fund the infrastructure and mechanics of the real estate industry in this country, and some have suggested that the industry may have to shift in the future to adopt things like paying for an open house, or paying to view a property online, many of which may be very poorly received

by consumers.

Solutions?

Again, and again, the refrain from REALTORS® is that there is a lack of understanding that has created a misperception, which has in turn cast a spectre over an industry.The option, if not to educate, comes down to discounting to stay competitive, which may work for the deal in hand, but has long term implications for the face of the industry.

Gewarges says,“We (REALTORS® are not doing a good job explaining these benefits and associated costs to our clients. Therefore, we often find ourselves in a position where we simply concede to a commission discount in order to not lose a deal. The natural repercussion of that is the fact that our services become a commodity, and as with any commodity, we have to sell more (at a discounted rate) in order to make any money. That ultimately leads to an immediate decrease in quality and will negatively impact the overall service we give to our clients. “

Morrow says too, that it is not enough to provide education to consumers about the industry.They have to actually answer the questions that the consumers are asking, not what they think they may want to know: “If the industry seems to be lacking in any area, it is in its inability to educate the consumer properly. We are so focused on rules and legal compliance that we didn't realize the consumer wasn't as interested in all that as we were. What they wanted was to save money, and we, as an industry, never seem to address that. We try to justify commission (rightly so) but fail to do it in a way that engages consumers en masse. I believe the future will bring a single commission--either to the selling or buying agent-for a single transaction. Our job will not be to sell a house but to put a buyer and a property together (a completely different angle to achieve the same goal). Laws may have to change to accommodate such a model but clearly the current one is not working well.” It comes down to education about the facts, and opening up the hood to show what’s inside the industry, not for the sake of transparency, or for the sake of justification, or for the sake of standing up for commissions. It is for the sake of understanding value as it pertains to commission made. Literally, helping people understand and apply the “bang for the buck”, beyond the intrinsic quality communicated through a theoretic communication of value.

Is it Time to Pop the Hood on Real Estate Commissions?

Written by Heather Wright

Friday, 16 December 2011 07:31

What Makes Borrowers Tick (And What Ticks Them Off)

2011-08-24T13:00:00.000-04:00

Here is an interesting article I thought I should share.
What Makes Borrowers Tick (And What Ticks Them Off)

New Mortgage Changes

2011-01-27T21:31:00.000-05:00

Since October 2009, the Government of Canada has been systematically tightening mortgage financing regulations for all federally regulated lenders. The changes have been made in order to ensure that Canadians are prepared for higher interest rates in the future by not taking on too much debt, which will improve the stability of Canada's housing market.

On January 17, 2011, Federal Finance Minister Jim Flaherty announced additional changes to the rules for government insured mortgages.

Three new measures that have been announced are as follows:

New Guidelines – Effective March 18th 2011

1) Lowering the maximum amount consumers can borrow when refinancing their home

This change will lower the maximum mortgage amount for refinances to 85% of the appraised value of the property from the current 90%. This change will help to promote savings in homeownership and ensure that homeowners don’t become overextended by using all the equity they have built up in their home when refinancing.

2) Reducing the maximum amortization period for new government insured (default insured) mortgages

The maximum amortization for all new default insured mortgages will be reduced to 30 years from the current 35 years. This change will help reduce total borrowing costs for consumers, helping them to build up equity more quickly.

As an example, a $300,000 mortgage with a 4.5% interest rate and an amortization of 35 years has a monthly payment of $1412.05 and total interest cost of $293,059.17 over the life of the mortgage. The same mortgage with a 30 year amortization has a monthly payment of $1512.65 but total interest cost reduces to $244,551.49. The difference of roughly $100 a month in monthly payment reduces the interest cost by almost $50,000 over the life of the mortgage.3) Withdrawing government insurance backing on lines of credit secured by homes

Home equity lines of credit generally offer a variable interest rate and often have no repayment terms associated with them, which exposes borrowers to an increase in interest costs should interest rates as expected. Due to an increase in the household debt associated with these loans, the federal government wants to limit the amount of equity for which these loans can be granted

Loans that have repayment terms associated with them will still be eligible for default insurance.

3) Withdrawing government insurance backing on lines of credit secured by homes

Home equity lines of credit generally offer a variable interest rate and often have no repayment terms associated with them, which exposes borrowers to an increase in interest costs should interest rates as expected. Due to an increase in the household debt associated with these loans, the federal government wants to limit the amount of equity for which these loans can be granted

Loans that have repayment terms associated with them will still be eligible for default insurance.

Update on the CREA v Competition Bureau case

2010-10-14T22:56:00.000-04:00

Update on the CREA v Competition Bureau case

Sometimes home ownership isn't all it's cracked up to be - Yourhome.ca

2010-09-10T13:29:00.001-04:00

AARON HARRIS/FOR THE TORONTO STAR

Jenn Miller, left, son Devon Miller and Rachel Giese once owned a home in Leslieville, and although their lives didn't crash or other major misfortune hit them, decided to sell it and rent instead.

Sometimes home ownership isn't all it's cracked up to be
August 13, 2010

David Hayes
Special to the Star

Renting is thought to be a state reserved mainly for those who can’t afford to buy or for those who are young, biding time, squirreling away money until they can afford a down payment. Home ownship, in our culture, is thought to be a one-way street. Who would give it up to return to renting?
Well, in the U.S., a rather large number of people caught up in the sub-prime mortgage meltdown have. But let’s call that involuntary. And here in Canada, according to realtors, quite a few homeowners who sold their homes as the market peaked are now renting while they wait for prices to drop. But let’s call that temporary.
What’s missing is a small but significant cohort of people who make the calculations — massive debt for years to come, property taxes, maintenance and repair costs — and decide to opt out for the sake of lifestyle and mental health.
One such couple is Jenn Miller and Rachel Giese who, with their 7-year-old son, Devon, bailed out of homeownership late last spring and have never been happier.

We’re sitting in the bright living room of their 1,100-square foot house in Leslieville with its quirky, “soft loft” touches — exposed duct work here and there, a bare wood post in the living room — as well as evidence of their own taste; Giese’s collection of old Westclox alarm clocks and an impressionistic print by Toronto photographer Joshua Jensen-Nagle.
“We bought a big house eight years ago in Leslieville,” says Giese. “We loved the neighbourhood but eventually felt overwhelmed by the upkeep and the debts. It felt like all our time was spent working and we felt stressed out by how little was left over to spend with Devon.”
They decided on a novel experiment. Their neighbours across the street, who were fixer-uppers, had renovated a small home and wanted a larger one that was a work-in-progress. So, in a private sale, Miller and Giese swapped houses. But pretty soon, Giese says, “it started feeling again like too much house and too much responsibility.”
Nodding in agreement, Miller adds: “That was the major thing for me. The house was a symbol of how our lives had changed drastically from when we were able to travel and enjoy ourselves together as a family. I found myself living in fear, because we didn’t have any just-in-case money set aside. Everything went into carrying the house and all the expenses associated with it. For many of our friends, their house is their rock, their security. For us, it felt like an anchor.”
It wasn’t just that. Miller, who is 36, grew up with parents who had saved, bought a house, lived for their retirement. But both died relatively young, without enjoying those golden, mortgage-free years. And Giese, who turned 40 last November, knew a couple of friends with cancer, one of whom died this spring. “She was only 12 years older than me,” she says. “I suddenly became aware of my mortality.”
Miller and Giese decided to find out what their house might be worth. But the day before a meeting with their real estate agent’s wife, who prepared houses to go on the market, Giese was laid off. “The only way we could have kept the house is if I’d found another full-time job right away,” she says. “Instead it seemed like an opportunity to change our lives.”
Their timing was good. They sold their house during the week of March break. It was sunny and spring was in the air. People were feeling optimistic. A month later prices dropped dramatically.
Today, Giese is a freelance writer and editor, working from home. She’s able to prepare Devon’s breakfast and get him off to school while Miller gets ready for work. Then Giese works on assignments but still has time to get dinner supplies and pick up Devon after school. Since she sets her own schedule, she can take Devon to a doctor’s appointment and make up thr time later that night or on part of a weekend. They both find that they’re relaxed in the evenings, very different from when they both spent weekdays at their respective nine-to-five jobs.
Although they’ve paid off their debts and invested most of the proceeds from the sale of their house, they used some of it to allow Miller to take a three-month leave of absence from her job. They visited Giese’s sister in Tofino in July and are spending a large chunk of August at Miller’s modest family cottage, which they were able to buy outright. “So we are still property-owners,” says Miller, laughing.
What does it feel like to have no debts and not own a home? “A lot less precarious,” says Giese who, like Miller, looks so relaxed that together they’re an advertisement for abandoning the debt-bound life of home ownership. “We have a nice house but we don’t own it. If the furnace blows or the basement leaks, it’s not our problem.”
Devon is so excited about the construction next door that he goes in and out a couple of times to watch a back-hoe in action. Each time the front door bangs noisily.
“What’s wrong with that door?” asks Miller.
“I don’t know,” replies Giese. She glances at Miller with a grin. “I know, let’s call the landlady.”
David Hayes is an author and award-winning feature writer who has been a renter most of his life. If you have stories or information to share about renting, he can be reached at lifelong_renter@sympatico.ca.

Interior Design Tips: Home Theatre Decorating Ideas

2010-09-01T17:12:00.002-04:00

A home theatre has quickly become a must-have for practically every family. From the simple family room setup to a much more elaborate theatre-seating wonder, today’s home theatres aren’t just for the wealthy anymore.

The décor of a home theatre will eventually influence how well the room functions as an entertainment space as well as how it shows when the lights are turned on. Creating a functional and beautiful home theatre is easy to do on any budget. Here are some ideas for creating a home theatre for all to enjoy.

Start by arranging the space. Choose an easy-to-clean surface or a dark colour carpet for the flooring, and select a dark colour for the walls and ceiling.

A home theatre would not be complete without its supporting cast, the furniture. If you plan on having a couch in your home theatre, get a curved sectional. Since the optimal viewing in a movie theatre is the centre seat, a curved sectional will simulate that effect for everyone viewing your television.

If you have a smaller space or prefer a more intimate area, purchase two recliners in dark leather or other fabric. A simple end table can serve as a shared table between the two chairs. Select comfortable and soft furniture which give luxury while absorbing sound waves to improve audio quality within the room.

Arrange the furniture for best viewing for everyone. If you have an HD television, your seats should be as far back as 3 to 4 times the width of the screen. This provides optimum picture quality and your guests won’t be straining their neck or eye sight to watch the television.

Secondly, consider the lighting. You never want to be in a completely dark room when watching a movie as this can be a hard strain on your eyes. Use wall sconces or other dim background lighting at a very low level while watching the TV.

Another typical visual task in the home theatre is entertaining. So you need to have a layered lighting approach. Add some accent lighting in the room, some general lighting and some decorative lighting. Remember to use separate controls for each of these layers so that you can change the look and the aesthetic feel of the space based on function.

No home theatre is complete without refreshments. If space allows, install a built-in or freestanding bar. A complete home theatre bar should include a microwave and mini refrigerator stocked with water, juices and your preferred drinks.

If your budget allows, consider adding acoustic wall treatments to balance the acoustic properties of a room. You want to be able to crank up the volume while watching your favourite movie without disturbing other people in your home. There are many commercial products available and you can even buy ready to install treatments.

Most wall or ceiling mounted treatments are really just a wooden frame filled with sound absorbing or diffusing material. The material is then wrapped in an attractive sound absorbing fabric of your choice. You can also hang wall treatments from your ceiling to help control floor to ceiling reflections.

Finally, when selecting the focal point of your home theatre — the equipment, keep in mind that you can easily find speakers that are installed into the walls for a clean, less cumbersome appearance. The exteriors of these in-wall speakers can be painted and treated to blend seamlessly. If a drop-down projection screen isn’t in your budget, a large standard television with surround sound will do nicely. Add a tuner and some speakers for maximum sound quality.

A home theatre is a fun, relaxing place for families to spend time together as well as to entertain. The décor of the room should be about comfort and subtly allowing you to enjoy favourite movies or programs in the welcoming retreat of your own home.

Courtesy: Canada Realty News.

Should I pay my REALTOR® less commission?

2010-08-24T17:05:00.007-04:00

The following is my professional informed opinion why you should Not be looking to pay lower commission to your REALTOR®

First off, I want to give you a little inside information about realtors and their motivations. Did you know that statistics show that 20% of realtors make 80% of the money? The average wage for a realtor in Ontario is around $30,000 per year, based on an average 10 deals. So from what I have just told you 80% of realtors are hungry and not doing to well! 20% are doing really well and there is probably a good reason for that, which we will get into later.

             In almost all real estate deals the seller is paying the total commission with the average being 5%,
whatever the listing agent accepts is split, half for the seller agent and half for the buyer agent. As mentioned the average is 5% so 2.5% usually goes to each, if however the listing agent accepted 4% then 2% will be paid to each. Alternately if the commission was 6% then obviously 3% will go to the buyer agent.

Are you aware that when a Buyer agent is looking for potential homes for a client on MLS they will see what commission will be paid to them should they close the deal?
Imagine then you are an agent for a moment, your client is looking in a particular area and there are 15 homes that meet their criteria. They are all pretty much alike, 2 of them offering 3%, 11 offer 2.5% and the other 2 offer 2% Which homes are you going to show first? Subconsciously you will promote the higher paying homes. Some People will openly avoid homes that pay less than the average 2.5% commission.

This is no different to you searching for a job, and finding two almost identical jobs but one paid $5000 per year more than the other, would you feel bad not taking the lower paying? I don’t think so, we all want to earn as much as we can or at least be paid what we think we are worth.

Ok having said all that, I am sure you can see by now that negotiating a lower commission to sell your home will ultimately only hurt you.

As mentioned earlier the average realtor is not really doing that well, they know that their commission based on the average for many years should be 2.5% if you are able to convince them to take less then I would suggest that you look for another agent. Why? This agent has just proven to you that they are not a good negotiator. They caved in at the first hurdle and settled for less than most agents are being paid. To him or her the most important part of this transaction will be their wage, and you just convinced them to give some of it to you. How then do you think they will fair when a potential buyer wants to offer less for your home than it is worth? Do you believe that they will all off a sudden become the person that fights for you in order to get the top price for your home? The most important aspect of a successful agent is their negotiating skill next to that their Marketing skill, if however they are willing to accept less than they know there counter parts are getting they cannot offer the same level of service and will ultimately fall into the 20% category due to a lack of sales.

         Remember your home is worth whatever an informed buyer will pay. The market value of your home is based upon property recently sold that is similar to yours for example your neighbors home, identical to yours, sold last week for $200,000 that is the market value of your home. This price includes the commission , lets say the average commission in your area is 5% then that is part of the $200,000 so the actual value is $190,000 so you can see that overall higher or lower commission will not in the long term benefit you the property owner.

        The 20% of realtors that are doing ok are doing so because they are closing the most deals. Why? Because they know what they are worth and will not accept less, they are great negotiators, marketers, and know their product. Listing with a top agent for a higher % will usually get your home sold quicker and for the most dollars in YOUR pocket.

Vancouver has vowed to become the greenest city in the world by 2020.

2010-08-17T14:22:00.000-04:00

A family walks in a tree-covered square in downtown Montreal Friday, August 13, 2010.Concerns about the environment have topped opinion polls for the last five to 10 years and now people and cities are acting on those concerns.

Vancouver has vowed to become the greenest city in the world by 2020. New condos in Toronto are going up without any parking spaces. Regina is doing away with one-way streets to improve public transit access in a revitalized downtown.

And in Montreal's trendy Plateau Mont-Royal borough, Mayor Luc Ferrandez is doing his best to bring a little more country into the city.

“We're looking at streets and asking ourselves, ‘Is it really useful',” he said in a recent interview. “We've identified about 20 streets that are not useful, that can be taken out and retransformed into green spaces.”

Concerns about the environment have topped opinion polls for the last five to 10 years, says Pascoal Gomes, a spokesman for Montreal's Urban Ecology Centre.

But in ever-increasing numbers, people — and cities — are acting on those concerns.

For full article click here

Making sense of housing statistics - Yourhome.ca

2010-08-17T13:11:00.001-04:00

Are you confused with the Media Cup half empty approach to Real estate Stats I found this interesting article that may clear it up for you> Take a look!
Making sense of housing statistics - Yourhome.ca

10 worst first-time homebuyer mistakes

2010-08-09T16:10:00.001-04:00

Are you gearing up to buy your first place? Shopping for a home is exciting, exhausting and a little bit scary. In the end, your aim is to end up with a home you love at a price you can afford. Sounds simple enough, right? Unfortunately, many people make mistakes the prevent them from achieving this simple dream. Arm yourself with these tips to get the most out of your purchase and avoid making 10 of the most costly mistakes that could put a hold on that sold sign. (Don't know even where to get started when purchasing a home? Check out Financing Basics For First-Time Homebuyers and our First-Time Homebuyer Guide.)

1. Not Knowing What You Can Afford

As we've all learned from the subprime mortgage mess, what the bank says you can afford and what you know you can afford or are comfortable with paying are not necessarily the same. If you don't already have a budget, make a list of all your monthly expenses (excluding rent), including vehicle costs, student loan payments, credit card payments, groceries, health insurance, retirement savings and so on. Don't forget major expenses that only occur once a year, like any insurance premiums you pay annually or annual vacations. Subtract this total from your take-home pay and you'll know how much you can spend on your new home each month.

If you end up looking at homes that are outside your price range, you'll end up lusting after something you can't afford, which can put you in the dangerous position of trying to stretch beyond your means financially or cause you to feel unsatisfied with what you actually can afford. You may even learn that you can't afford the type or size of home that you desire and that you need to work on reducing your monthly expenses and/or increasing your income before you even start looking.
(Read Six Months To A Better Budget and Get Your Budget In Fighting Shape to learn more.)

More from Investopedia.com

5 Mistakes Real Estate Investors Should Avoid

5 Simple Ways To Invest In Real Estate

Home Renovations That Don't Pay

10 Insurance Tips For Homeowners

5 Things Every Real Estate Pro Knows

2. Skipping Mortgage Qualification

What you think you can afford and what the bank is willing to lend you may not match up, especially if you have poor credit or unstable income, so make sure to get pre-approved for a loan before placing an offer on a home. If you don't, you'll be wasting the seller's time, the seller's agent's time, and your agent's time if you sign a contract and then discover later that the bank won't lend you what you need, or that it's only willing to give you a mortgage that you find unacceptable.

Be aware that even if you have been pre-approved for a mortgage, your loan can fall through at the last minute if you do something to alter your credit score, like finance a car purchase. If you cause the deal to fall through, you may have to forfeit the several thousand dollars that you put up when you went under contract. (To learn more, read Pre-Qualified Vs. Pre-Approved - What's The Difference?)

3. Failing to Consider Additional Expenses

Once you're a homeowner, you'll have additional expenses on top of your monthly payment. Unlike when you were a renter, you'll be responsible for paying property taxes, insuring your home against disasters and making any repairs the house needs (which will occasionally include expensive items like a new roof or a new furnace).
If you're interested in purchasing a condo, you'll have to pay maintenance costs monthly regardless of whether anything needs fixing because you'll be part of a homeowner's association, which collects a couple hundred dollars a month from the owners of each unit in the building in the form of condominium fees. (For more information, see Does Condo Life Suit You?)

4. Being Too Picky

Go ahead and put everything you can think of on your new home wish list, but don't be so inflexible that you end up continuing to rent for significantly longer than you really want to. First-time homebuyers often have to compromise on something because their funds are limited. You may have to live on a busy street, accept outdated decor, make some repairs to the home, or forgo that extra bedroom. Of course, you can always choose to continue renting until you can afford everything on your list - you'll just have to decide how important it is for you to become a homeowner now rather than in a couple of years. (For related reading, read To Rent or Buy? The Financial Issues - Part 1 and To Rent or Buy? There's More To It Than Money - Part 2.)

5. Lacking Vision

Even if you can't afford to replace the hideous wallpaper in the bathroom now, it might be worth it to live with the ugliness for a while in exchange for getting into a house you can afford. If the home otherwise meets your needs in terms of the big things that are difficult to change, such as location and size, don't let physical imperfections turn you away. Besides, doing home upgrades yourself, even when you have to hire a contractor, is often cheaper than paying the increased home value to a seller who has already done the work for you. (For more information on remodeling, read our related article Fix It And Flip It. The Value of Remodeling.)

6. Being Swept Away

Minor upgrades and cosmetic fixes are inexpensive tricks that are a seller's dream for playing on your emotions and eliciting a much higher price tag. Sellers may pay $2,000 for minimal upgrades or staging that you'll end up paying $40,000 for. If you're on a budget, look for homes whose full potential have yet to be realized. Also, first-time homebuyers should always look for a house they can add value to, as this ensures a bump in equity to help you up the property ladder.

Investor Education: Buying a home

Should I buy a home now, or wait and save more money?

Understanding house prices

Is it better to buy a home, or choose some other investment? Charlie's story

What makes buying a home different from other investments?

What are some renovations that add value to my home?

7. Compromising on the Important Things

Don't get a two-bedroom home when you know you're planning to have kids and will want three bedrooms. By the same token, don't buy a condo just because it's cheaper when one of the main reasons you're over apartment life is because you hate sharing walls with neighbours. It's true that you'll probably have to make some compromises to be able to afford your first home, but don't make a compromise that will be a major strain.

8. Neglecting to Inspect

It's tempting to think that you're a homeowner the moment you go into escrow, but not so fast - before you close on the sale, you need to know what kind of shape the house is in. You don't want to get stuck with a money pit or with the headache of performing a lot of unexpected repairs. Keeping your feelings in check until you have a full picture of the house's physical condition and the soundness of your potential investment will help you avoid making a serious financial mistake.

9. Not Choosing to Hire an Agent or Using the Seller's Agent

Once you're seriously shopping for a home, don't walk into an open house without having an agent (or at least being prepared to throw out a name of someone you're supposedly working with). Agents are held to the ethical rule that they must act in both the seller and the buyer parties' best interests, but you can see how that might not work in your best interest if you start dealing with a seller's agent before contacting one of your own. (To learn more, read Do You Need A Real Estate Agent?)

10. Not Thinking About the Future

It's impossible to perfectly predict the future of your chosen neighbourhood, but paying attention to the information that is available to you now can help you avoid unpleasant surprises down the road.

Some questions you should ask about your prospective property include:

• What kind of development plans are in the works for your neighbourhood in the future?

• Is your street likely to become a major street or a popular rush-hour shortcut?

• Will a highway be built in your backyard in five years?

• What are the zoning laws in your area?

• If there is a lot of undeveloped land, what is likely to get built there?

• Have home values in the neighbourhood been declining?

If you're happy with the answers to these questions, then your house's location can keep its rose-coloured lustre.
Conclusion

Buying a first home can seem stressful and overwhelming, and it isn't without its share of potential pitfalls. If you're aware of those issues ahead of time, you can protect yourself from costly mistakes and shop with confidence.

For many people, a home is the largest purchase they will ever make, but it need not be the most difficult.

Be sure to read Investing In Real Estate to learn more about the perks of owning property.

Amy Fontinelle

Investopedia.com

Protecting Your Privacy While Your Home is on the Market

2010-08-04T15:32:00.000-04:00

Numerous people are likely going to spend a considerable amount of time browsing through your home while it is on the market. If you are living in the home while it is for sale, your personal things will be on show too and potential buyers might look...
Read More

Courtesy of Canada realty news

Royal lepage Kingston Ontario, MarketShare Jan 1st -Jun 30th 2010

2010-07-26T15:32:00.001-04:00

MarketShare Jan1-Jun30 2010

Kingston, Ontario investing heavily in green building

2010-07-20T13:28:00.000-04:00

The Kingston Memorial Centre will receive energy-system upgrades this year.

JORDAN PRESS
correspondent
KINGSTON

About two years ago, the City of Kingston adopted a green building policy that mandated meeting LEED standards for all new buildings and renovation projects. When the policy was adopted, it was one of the first of its kind in Canada.
“We’ve not just stopped at the policy — we’ve implemented it,” said Paul MacLatchy, the city’s environmental director. “Our commitment is more than just policy, it’s millions and millions of dollars in implementation.”
In total, the spending commitments top $200 million over the past five years.
No longer is green building or LEED certification a secondary consideration for local owners and contractors when approaching a project — it is a central focus. “With the city adopting that policy ... that’s really motivated the industry to consider it,” said Murray Aitken of Napanee-based Morven Construction. “I don’t believe it’s a fad. It’s here to stay,” said Aitken, who is also chairman of the Canadian Construction Association’s environment committee.

Creating a national policy for green building may be difficult to develop, he said, because the policy would have to adapt to changing technologies and different conditions in the country. A policy that works well in eastern Ontario, for instance, may not work as well in British Columbia or the Yukon.
“A local approach is probably the best,” Aitken said. “With the City of Kingston [green building policy] it’s obviously encouraging green building.”

There are a number of commercial and residential sector developers that have put up new complexes that have green aspects such as energy upgrades, solar panels and protected green spaces, Aitken said.
The buildings may not be LEED certified, but they are green buildings nonetheless, he said. The driving force for green building practices in Kingston and much of the eastern Ontario region has been the institutional sector, Aitken said.

Over the past five years, Kingston has committed more than $200 million on new construction projects, including a new $46.5 million downtown arena, a $33.6 million four-pad ice hockey facility in the west end and a $115 million sewage treatment plant. Each meets LEED standards, a rating system that measures how green a construction project is based on a variety of building criteria, including water efficiency, materials used and energy usage.
This year the city will spend $4.3 million on an energy retrofit program at 38 municipal facilities. Improvements will include upgrades to heating and air-conditioning systems, lighting, insulation and water systems.

The hockey arenas, sewage plant and a new police headquarters were all designed to meet LEED silver and gold standards. The hope is that the facilities — all of which are now open and operational — will save the city on energy costs over the long-term. The savings, the city hopes, will be enough to off-set the added costs associated with designing and building a LEED facility.

So far, though, those savings haven’t been fully realized.

MacLatchy said city officials and the private operator of the downtown arena are still learning the operating systems in each of the new LEED facilities. “A building is a system. It’s not just an individual thing like a light bulb. You have to make sure all aspects of the system are working together,” MacLatchy said. MacLatchy admitted it’s tough for the city to quantify the exact savings from a LEED facility, but it has modeled how much savings are possible year-over-year. He said the city expects to save hundreds of thousands of dollars in utilities costs annually per LEED facility.

While the city looks to export its policy to the private sector and encourage more contractors to become green builders, the local construction association is already moving forward with plans to help train firms to build green. Aitken said the Kingston Construction Association will be offering the course that the CCA developed in partnership with the Canadian Green Building Council so LEED projects run smoothly. “One of the key things with putting LEED in the market place is that companies are willing to accept it, but staff [need to] know the paperwork they have to do, understand the recording mechanisms that are in place and understand the [LEED process],” Aitken said.

Green building is still in its youth in eastern Ontario, Aitken said, but it has grown in popularity nationally to the point that some regions have projects that are experiencing delays in receiving LEED certification. “There’s more work, but that’s what the CCA is all about. “As these issues pop up we embrace them and see what we can do for the industry nationally to embrace. Locally, the [Kingston Construction Association] has embraced green building and the City of Kingston has been an early adopter of green building policies in eastern Ontario,” Aitken said. “It’s a good thing for the industry and a good thing for the taxpayer.”

Never Let 'em See You Sweat

2010-07-08T12:44:00.002-04:00

It sure is Hot out there! Some of us don't have or do not want to use AC!! Welcome to the sizzling days of summer, when one of your home's top jobs is to keep you cool. Air-conditioning is the silver bullet for August heat, but energy costs make many people reluctant to turn it on, says the CDC, and poorly maintained systems can worsen allergies. But using a less effective window unit or fan could put you at risk of symptoms like the headaches and nausea caused by heat exhaustion. Good thing there are many ways to chill out without powering up the AC.

• Keep shades or curtains drawn and windows closed during the day. Open windows at night (but use caution and keep them secure from break ins).

• Leave doors to the attic and basement open 24/7.

• Turn off as many lights as possible (especially those with iridescent bulbs, which emit heat) and avoid using the oven or stove. Basically, power down all you can.

• Store a towel in the freezer and drape it over your head when you come home.

• Put pyjamas and pillowcases in the fridge or freezer to cool you off when going to bed. And put bras and panties in the freezer overnight.

• Keep lotion in the fridge.

• Put a bowl of ice or frozen water bottles in front of a fan. It will blow cooler air.

• Roll up throw rugs and carpets to expose cooler floor surfaces.

• Avoid eating a lot of high-protein foods (meats, fish, eggs, cheese), which produce metabolic heat. Try instead vegetable and fruit salads and cold soups, cold sandwiches, and of course, frozen treats. In addition to sorbets and ices, freeze other liquids you wouldn't think of — milk, juice, smoothies, even plain water — into Popsicle form.

• Eat spicy food as they do in the hot climates of Mexico or India. It causes you to perspire, cooling the body.

• Drink iced tea or water with lemon; they're thirst-quenching and cooling. Sodium and sugar in soft drinks increase thirst.

• Put ice in a plastic bag, knot it at the end and roll it inside a bandanna. Tie the bandana around your neck.

• Wear natural fibres such as cotton, silk or linen rather than artificial fabrics made of polyester or rayon.

• Take a quick, cold shower before going to bed (especially with skin-cooling minty soap).

• Keep a water spritzer by the bed to spray down in the middle of the night.

• Move down to the basement where it's cooler to sleep. Or try sleeping on a screened porch.

• Buy a backyard inflatable pool to soak in (it's a cool place for your dog, too

Home Buyers are Trending Toward Smaller Greener Homes

2010-06-22T17:42:00.000-04:00

Tiny homes are attracting the thrifty and the green

Sasha McIntyre lives in a house smaller than some suburban living rooms. And she loves it. The Toronto animator shares a 480-square-foot house in eastern Toronto with her husband, John Lei. Open the front door and you walk not into a vestibule, but the couple's bedroom, with a double bed, tall cabinets and a miniature ceiling fan. Beside the bedroom is a bright, six-foot-square bathroom. The living room has two loveseats, shelving and cabinets, and a fold-down table for dining. Read more

Globe and Mail Tue Jun 22 2010

Royal Lepage Shelter Foundation Song

2010-06-21T16:49:00.005-04:00

We'll Be There

David Roney, from Royal LePage Frank In Whitby, Ontario has written and produced a song inspired by the story of a woman who needed to turn to one of the shelters we support. You can buy a CD of the song for $10 by emailing shelterfoundation@royallepage.ca (100% of proceeds to the Shelter Foundation). David is also donating this song for use by Shelters in every province to help with their fundraising. http://www.royallepage.ca/davidroney

Should first-time home buyers leap in or wait?

2010-06-18T09:38:00.001-04:00

Should first-time home buyers leap in or wait?

Chaya Cooperberg

The Canadian housing market is entering a phase that may very well be confusing for first-time home buyers. We are suddenly in an environment in which interest rates are on the rise and the hot housing market is cooling off. Should buyers jump into the market before rates march further upward or should they wait for housing prices to decline?

Read More - The Globe and Mail

Wal-Mart Your New Canadian Bank?

2010-06-08T15:10:00.001-04:00

Wal-Mart Stores Inc. changed the face of retail in North America by making life easier for the little guy through its simple formula of cutting prices and cranking up volumes.

Is banking next?

This week the retailing giant won final approval to open a bank in Canada, providing entry to an industry that has been much criticized for perceived high prices and lack of competition.

Andrew Pelletier, a spokesman for Wal-Mart Canada, said the company plans to provide "convenient and value-focused financial products and services" for its customers.

He declined to discuss details of the company's plans in advance of the official lunch of the new bank, set for June 15.

While the rise of Wal-Mart has been a boon for consumers, it has been devastating for competitors, many of whom ended up being bought out or going out of business.

In the United States, fierce resistance from the banking industry forced the retailer to abandon a bid to buy a bank early in the decade, though it continues to offer services such as cheque cashing and money transfer.

Wal-Mart applied for the licence to the Office of the Superintendent of Financial Institutions, the Canadian banking regulator, nearly two years ago. Mr. Pelletier declined to discuss why the process has taken so long.

If Wal-Mart saw opportunities south of the border where there are more than 1,000 banks fighting it out for customer deposits, there would likely be an even bigger prize waiting in this country, where the industry is dominated by a oligopoly of just six major players.

Consumer groups regularly complain about credit card fees and low interest rates on savings accounts available to bank customers in Canada. Management fees on Canadian mutual funds, most of which are controlled by the big banks, are similarly out of whack compared with the United States and other developed countries.

In the United States, Wal-Mart is a significant player in the money-transfer business, partly because many of its customers are recent immigrants still with family in other parts of the world. Additional services, such as the ability to offer deposits and make loans, would provide further opportunity to the company at a time when profits from its bread-and-butter retail business have come under pressure from the recession.

Wal-Mart would not be the first non-bank to try to break into financial services in Canada. Other retailers such as Canadian Tire Corp. and Loblaw Cos. are also working to establish themselves.

One of Wal-Mart's main advantages may be its reputation for low prices, which may help it get the word out to potential customers that it can offer a better deal than the competition at a time when Canadian consumers are scrambling for all the savings they can get.

The federal government has recently taken steps to shake up the banking sector, including the decision to make it easier for credit unions to expand across the country and the move to prohibit banks from using their websites to sell insurance.

Opening a bank is a costly undertaking for Wal-Mart and the company will likely move carefully as it plots its moves over the next few years, but it clearly believes the investment will pay off.
John Greenwood, Financial Post
jgreenwood@nationalpost.com

Real Estate News!

2010-06-03T09:36:00.003-04:00

Some of the most signiﬁcant events in recent decades would never have happened had it not been for one, seemingly innocuous invention: Air conditioning.

Picture: Stephanie Rausser / Getty Images

The amount of energy consumed by running residential air conditioners in Canada almost tripled between 1990 and 2007—52 per cent of Canadians have central air conditioning, and that figure rises to 80 per cent in Ontario, according to Natural Resources Canada. In the U.S., residential energy consumption for air conditioners nearly doubled between 1993 and 2005. More MacLeans Mon May 31 2010

Why Use a REALTOR®?

2010-05-31T17:58:00.004-04:00

On Twitter over the weekend there was a post implying that using a realtor to sell or purchase real estate was not such a great idea! As a licensed REALTOR® I would just like to point out that I would not discourage anyone in representing themselves in the sale of their home. I would however like to share some of my past experiences with you and then let you make your own decisions.

I have in fact helped many FSBO's (for sale by owner's)in the sale of their homes, some I have just found a buyer for them and negotiated a commission, other's I have listed and sold, and on the odd occasion I have just advised the seller on the best way to write up an offer. In all events I made some friends and had very satisfied clients. Not all FSBO's end in the way they imagine, some end in disaster, some end in a sale (even though it may not be the best price) some just end (giving up).

Selling Your Home Yourself Calls for Careful Thought

Should I sell my home myself?
It's a question thousands of homeowners ask themselves each year. If you are to be one of them, you'll face some tough decisions. Indeed, selling your home can be a complex as well as time- and energy-consuming process. So consider all the implications — both positive and negative — before choosing the do-it-yourself approach.

I know that there are some sellers that would choose to sell without representation due solely to saving commission, and I fully understand and would not discourage anyone from trying, and of course some have had success. It is however a fact that most sellers will undersell their home and end up with less in their pocket than they would have with representation. I also understand there are sellers that begrudge a REALTOR® making a living and these people are quite happy to sell for less. If you are one of those then you should not read on if not, then please do read on.

To help make the decision that's right for you, here's a list of some of the key tasks and responsibilities you must assume as an independent home seller, plus some cautionary tips to keep in mind.

Pricing Your Home

• Your first responsibility as an independent home seller is assigning your home a market value, meaning the price that accurately reflects what a ready, willing and able buyer will pay. As part of this decision, you'll need to consider the condition of your home, inside and outside, comparable properties in your area, current market conditions, as well as the cost of financing and its availability. also bear in mind that the market price would typically include the cost of selling (commision)

• If your listing price is not in line with comparable properties and market trends, your home could linger on the market or sell for a lower price than you might otherwise receive.

• "For Sale by Owner" homes typically attract bargain hunters who may expect you to lower your asking price further since, they, too, are looking to save money on real estate commissions. also FSBO's typically attract unqualified purchasers, those wannabe buyer’s looking for rent to own, no money down, and all other options of getting into a home without their own resources. Typically these buyers are not working with a REALTOR®(even though their service is FREE) because no one would take them on.

Independent home sellers must market their properties. This means:

• Putting up signage that is consistent with local ordinances;

• Developing and paying for display ads in local newspapers;

• Holding open houses;

• Working to ensure your home gets good word-of-mouth exposure among friends, neighbors and community organizations.

Showing Your Home

• As an independent home seller, you will be responsible for all showings of your home. To make the process more manageable, encourage prospects to make an appointment and discourage drop-ins.

• Work to screen the "buyers" from the "lookers," as curiosity-seekers are common at "For Sale by Owner" homes.

• Prequalify potential buyers to ensure they can afford to buy your home.

• Be prepared and informed when it comes time to negotiate.

• Try to resolve any doubts your potential buyers might have, work to keep their interest high and make a final agreement as quickly and efficiently as possible.

• Once an offer is made, agree on the final price and terms, respond to objections and try to be responsive and flexible about legitimate concerns.

Drawing Up the Contract

• Every independent home seller should have an attorney or other qualified professional preside over all agreements — including drawing up the sale contract and managing the sale proceedings and closing. He or she might also help set the closing date and time.

• Be sure to draw up a list of items you want written into the contract — including any personal property that is to remain with the house (like the refrigerator, microwave oven, dishwasher, etc.) or items excluded in the sale.

• Be mindful that as the seller, you are obligated by law to disclose any material defects in your property to the purchaser.

• You should provide potential buyers with a written disclosure statement, S.P.I.S. Sellers property information statement that gives information about roof age, water leakage, rental items, improvements, permits obtained ETC

Is Using a Residential Real Estate Professional a Better Choice?

Selling your own home takes a lot of hard work and skill. You must spend

considerable time to study the process, understand your obligations and do some of the complicated work that a real estate agent does routinely. A qualified real estate specialist can help you sell your home faster, for the best price and with the least "hassle," by:

• Walking you through the process of selling your home from beginning to end;

• Pricing your home accurately by doing a Comparative Market Analysis, one that will help support the price with comparable facts and statistics;

• Advertising your home in the most visible outlets in your area;

• Holding open houses;

• Suggesting easy ways to make your home more attractive to potential buyers;

• Exploring alternative financing methods that can help relieve a potential buyer's financing concerns;

• Using the Multiple Listing Service a special nationwide network of resources;

• Acting as a third-party negotiator between you and the buyer, acting as your advocate to negotiate the best price and terms for you; and

• Screening prospects so you don't have to expose your family to any stranger who knocks on your door.

Other information
REALTOR.com: Why Use a REALTOR®?

Renting vs. Buying, Which Option is Better for You?

2010-05-26T12:29:00.002-04:00

Buying a house can be the most rewarding purchase you ever make. However depending on your current circumstance this may not be your best option. To help make an educated decision, try to answer the following questions first:

1. Do you really want to own your home?

Some would argue that this is the first question you should ask yourself. Home ownership, like everything else, is a matter of choice. Only you can decide whether or not home ownership is important to you. If it is then you may want to re-assess how you spend your money every month. Read on:

Courtesy of : Canada Realty News

Why flipping is not investing in real estate

2010-05-21T16:58:00.003-04:00

"I would never buy a property that didn’t have positive cash flow,” says Mr. Campbell, president of the Real Estate Investment Network. “A lot of people, unsophisticated investors, buy properties as if they were stocks – the only way they’re going to make money is if they rise in value.”
Read More:-

Royal LePage Shelter Foundation

2010-05-19T16:22:00.002-04:00

Raised in Kingston My 15th Garage sale- $2,614.66

Some fun at The Royal Military College - The Whig Standard - Ontario, CA

2010-05-19T12:34:00.003-04:00

Kingston Ontario Royal Military College on Tuesday afternoon as graduating officer cadets continued the tradition of dressing up for a rehearsal parade for this week's graduation exercises.
Great to see the Military have some time for fun Read On

Royal LePage Shelter Foundation – Funding for Women’s Shelters and Violence Prevention

2010-05-12T16:49:00.004-04:00

On Saturday, May 15th 2010, Royal LePage offices across Canada will come together to host the 2nd annual National Garage Sale for Shelter, with 100% of proceeds going to help women and children living with abuse.
Kingston will hold it's Sale at the offices of Royal Lepage on Cataraqui Woods drive. The office can be seen from Gardeners rd just south of the Highway. It all starts at 9am, and as well as the items on sale, there will be a silent auction,a 50/50 draw, and a Barbecue come out and have some fun and help a great cause.
For more about the foundation click here

Royal Lepage ProAlliance Realty, Brokerage

2010-05-10T16:29:00.001-04:00

With Reference to the Real Trends Survey Dated 05/06/2010 we are very pleased to announce out of the 200 brokerages surveyed.
Royal LePage ProAlliance Realty was ranked # 7 for number of units sold in 2009, and # 32 for volume!
Very impressive when you consider our competition and their markets!

City to unveil proposal to have Sydenham Ward protected - The Whig Standard - Ontario, CA

2010-05-10T15:21:00.001-04:00

The city is applying to have the area bounded by Barrie, Johnson and Ontario streets certified a heritage conservation district under the Ontario Heritage Act. More:

Survey leaves brokers quibbling over rankings

2010-05-06T17:57:00.004-04:00

Real Estate Brokers wrangle over Canada's first survey by compiled US based, Real Trends.
Top 2 Real Estate Brokerages, over 7 billion in Sales 2009. Impressive! or what?
Read the full report:
Vancouver Sun.

Financial Post.

Kingston, ON - Canada's best places to live

2010-05-05T11:02:00.001-04:00

Canada’s Best Places to Live 2010
Which cities have the best weather? The most affordable houses? The lowest crime rates? We crunch the numbers for more places than ever, to map out the winners you’ll want to call home
Read the whole article

Moved Up to 2nd postion for Canada's Best place
Kingston, ON - Canada's best places to live

Mortgage Advice From RBC

2010-05-03T14:53:00.005-04:00

8 Common mistakes most
first-time homebuyers make with Financing

Becoming a homebuyer and applying for a mortgage can
seem overwhelming, More

Appreciate your house, but don't expect it to appreciate a lot

2010-04-29T15:15:00.002-04:00

Here is an interesting perspective! - from The Globe and Mail
Take a look

The 7 Costly Home Buying Mistakes

2010-04-21T12:19:00.001-04:00

1) Choosing the Wrong Realtor

As a buyer in real estate you don't pay a real estate commission directly to your agent,
this is typically taken care of by the seller out of his proceeds at the closing. But in the long run a REALTOR® with experience and many closed transactions will cost you much less than someone who is inexperienced or unknowledgeable! A top producer's business is built on repeat clientele and referrals because they have proven they know how to select a great home for their buyers and negotiate the best price and terms. Your agent is not your best friend, your agent is your financial advisor for what may be the largest single transaction in your life!

2) Poor Location

Location! Location! Location! You've heard that over the years and it still holds true. You can always change a home's decor and some of its structural features, but nothing can ever change its location. Buying a home in a poor location guarantees minimal (if any) appreciation and it will be hard to sell in the future.

3) Not Having a Home Inspection

A home inspector can literally save you thousands of dollars! They will check all structural, mechanical, electrical, plumbing and heating and air conditioning systems for defects the homeowner may even be unaware of. They will help prevent you from purchasing a home with a major defect or one which requires too much corrective maintenance.

4) Choosing the Wrong Lender or Loan

The wrong lender or the wrong loan program for your particular circumstance can lead to the loss of big bucks! For example, if you know you are going to be in your home only a couple of years before that next job transfer or retirement, why pay all your closing fees up front? Often you can save thousands by raising the interest rate you pay by half a percent. Your monthly payment may be a bit higher, but you may save $2,500 to $5,000 overall. A good lender will take the time to find out what works best for you!

5) Not Having Your Own Agent

You should always have your own agent in a real estate transaction! A new home is no exception - it costs you NOTHING and a good agent will be able to save you money on loan fees and upgrade options.

6) Buying a Home You Can't Afford

Always go by the lender's guidelines when deciding how much house you can afford. If you stretch too much you may find yourself in a financial bind which forces you to sell your home. A forced sale almost always guarantees a loss.

7) Buying a Home You Don't Like

You have to live in your home, not your mother, your father, your big brother, your best friend and not even your REALTOR®! Make sure the home your purchase is the best one for you that you can find within your price range.

New Mortgage Rules Start Today

2010-04-20T16:30:00.003-04:00

Information for new rules imposed by the Canadian government regarding mortgages.
Read on>>

Quality of Life: Welcome to the Neighbourhood.

2010-04-14T13:30:00.006-04:00

I really liked this one thought you would too!
>Take a look.

7 Costly Mistakes Selling Real Estate

2010-04-07T15:33:00.003-04:00

1) Choosing The Wrong REALTOR®

In Real Estate, a REALTOR® with experience and many closed transactions costs the same as someone who is inexperienced. The sale of your home is the most important financial transaction
you will be involved in. A contract for the sale of Real Estate is a legally binding document. An improperly written contract can cause the sale to fall through, or cost you money for repairs and inspections. It can even allow the purchaser to void the sale. You need an experienced REALTOR® who knows the ins and outs fully to explain the contract you are about to sign. You also want an honest Realtor, not one who is "buying" your listing! And you want a REALTOR® who has a complete marketing strategy for your home, not just one who puts it in the computer and "waits" for it to sell. The person you select can make it a satisfying and profitable experience or a nightmare. The choice is yours!

2) Incorrect List Price

If your home is not priced competitively, buyers will reject it in favor of other larger homes for the same price. At the same time, the buyers who should be looking at your house will not see it because it is priced over their heads. The result is increased market time, and even when the price is eventually lowered, the buyers are wary because "nobody wants to buy a house that nobody else wants" Over pricing also adds to the carrying costs.

3) Failing To Showcase The Home

A property that is not clean or well maintained is a red flag for the buyer. Buyers look for homes, not houses. They buy the home that they would like to live in. An owner who doesn't make necessary repairs, who doesn't spruce up the house, and fails to keep it clean, is a red flag for the buyer. Buyers are poor judges of the cost of repairs, and always build in a large margin for error when offering on such a property.

4) Over-Improving The Home Prior To Selling

Sellers often unwittingly spend thousands of dollars doing the wrong upgrades to their homes prior to attempting to sell in the mistaken belief that they will recoup this cost. If you are upgrading your home for your personal enjoyment - fine. But if you are thinking of selling, you should be aware that only certain upgrades are cost effective. Consult with us BEFORE committing to upgrading your home.

5) Failure To Take The First Offer Seriously

Often sellers believe that the first offer received will be the first of many. Sometimes the seller wants to hold out for a higher price. This can be especially true if the offer comes in right after the home goes on the market. Experience often shows that the first offer can be the best offer. Sometimes an experienced buyer is waiting in the wings for a house. They might have lost a bid on another house, know that your home is priced right, or just luck. The home is most saleable in the beginning of the marketing period while it is the "new house on the market". You may end up "settling" for less later!

6) Not Knowing The Difference Between Lookers And Buyers

For Sale By Owners sometimes get more activity than houses listed with a REALTOR®. REALTORS® bring only qualified buyers, and these will be fewer than if you open your doors to everyone who walks down the street. A qualified buyer is one who is ready, willing and able to buy your house. We find that most people who go looking at For Sale By Owners are just starting to think about moving. They may be good buyers some day. They don't want to bother an agent yet, so they call the By Owner ads to get a feel for what's available. They may have a house to sell first, or may need to save some more money, or even have credit problems. An agent will qualify a buyer and have them pre approved by a lender.

7) Signing a Listing Agreement With No Way Out

Sometimes circumstances change. A job might not have gone through, sickness, or a potential divorce situation which is reconciled after the listing is signed. In these cases, you deserve the right to cancel your listing agreement. Always protect yourself, by reserving the right to cancel the listing.

Part time Realtors

2010-04-05T16:06:00.002-04:00

Re/Max starts campaign against part-time Real Estate agents
Go to Article

Give me Your Thoughts!

Macaroon Brownies — Duncan Hines®

2010-04-01T12:13:00.003-04:00

Have a Good and Happy Easter!

Canadian Housing Trends - 2010 Royal LePage Market Survey Forecast

2010-03-24T15:18:00.003-04:00

What the new mortgage rules mean for you - Banking: Home buyer's guide article - Money - MSN CA

2010-03-19T14:58:00.001-04:00

How the new mortgage rules could effect you.

Home sales shoot up as buyers jostle in sparse spring market - Yourhome.ca

2010-03-18T16:21:00.000-04:00

Home sales shoot up as buyers jostle in sparse spring market - Yourhome.ca

HST & Your Mortgage

2010-03-15T15:35:00.000-04:00

Harmonized Sales Tax (HST)

What is HST?
·It is the merging of the current Provincial Sales Tax (PST) with the Federal Goods and Service Tax (GST) into one new tax.

Who does it affect?
·The new HST affects Ontario and British Columbia.
·Nova Scotia, New Brunswick and Newfoundland have already implemented a Harmonized Tax while Saskatchewan, Manitoba, Quebec and Prince Edward Island all collect a separate Provincial Sales Taxes (PST) or QST for Quebec.

How much is it?

British Columbia
Ontario
Provincial Sales Tax (PST)
BC = 7%
ON.= 8%
Federal Goods and Service Tax (GST)
BC =5%
ON. =5%
New Harmonized Sales Tax (HST)
BC = 12%
ON.=13%

When will the HST be implemented?
·July 1, 2010.

How does it affect the sale of my current owner occupied principal residence (re-sale)?
·The sale of housing that has been previously occupied by an individual as a place of residence and that was exempt from GST would also be exempt from HST.

When does the HST apply to the sale of a new construction home or new rental property?
·Builders’ sales of newly constructed or substantially renovated homes would be subject to HST when both ownership and possession of the home are transferred after June 30, 2010.
·The provincial portion of HST would not apply to builders’ sales of newly constructed or substantially renovated homes that are taxable under the GST where, under a written agreement of purchase and sale, ownership or possession of the home is transferred before July 1, 2010.
·The HST would not apply if either the ownership or possession of the complex is transferred, under a written agreement of purchase and sale, to the purchaser before July 1, 2010 or if the sale was entered into on or before June 18, 2009 in Ontario and November 18, 2009 in British Columbia, regardless of the ownership or possession date.

Is there a Housing Rebate?
·Yes, new housing rebates would apply when HST is charged and the purchaser would have qualified for a GST rebate.
·Please visit http://www.rev.gov.on.ca/en/taxchange/index.html and http://www.gov.bc.ca/hst/ For more information.