Happy New Year!

Just wanted to wish everyone a Happy New Year! Thanks to those who have been following my blog and requesting interesting articles. I’ll keep you updated on the Brampton real estate market next year and let’s hope it recovers fast!

Why choose Remax?

- In Brampton Remax has a 40% market share (based on an independant study).
- Remax receptionist are trained full time professionals and take great pride in their work.
- Remax administrative staff are highly educated and they make sure once the house has sold the the deal not fall through for any reason and that lawyers have all the documents they need ON TIME!
- Because has more signs on the lawns it generates more calls from prospective buyers
- More buyers search the Remax website then any other real estate company website.
Bottom line of this is that you are getting a company that is regarded as a premium brand in real estate. And with me you can get away with paying minimal.

More Remax facts:

Remax market watch

Global economic uncertainty weighed heavily on residential real state activity in most major Canadian centres during the latter half of 2008.  Although the forecast for 2009 promises more of the same, most markets are expected to weather the storm, says RE/MAX. 

The RE/MAX Housing Market Outlook for 2009 examined residential real estate trends in 22 markets across the country and found that average price held up remarkably well in 2008, despite 13 centres reporting double-digit declines in home sales. Solid gains earlier in the year likely served to prop-up housing values at year-end.  The prognosis for housing activity in the first six to nine months of 2009 is somewhat static, given continued volatility in financial markets and the threat of recession, but as stability returns to the financial sector, housing markets are expected to recover. 

Nationally, 440,000 homes are expected to change hands in 2008, down 15 per cent from record 2007 levels. Canadian housing values are expected to hover at $300,000, a nominal three per cent decline from last year’s historic peak.  By year-end 2009, unit sales should match 2008 levels, while average price is forecast to fall another two per cent to $293,000.

“Housing market performance will clearly be contingent on economic performance at a local, provincial, and national level in 2009,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada.  “Issues affecting the overall economy are impacting housing markets across the country and the situation is not expected to be remedied until consumer confidence is restored.   That said, we could see a bounce back as early as spring – if inventory levels remain stable, pent-up demand kicks into gear, and lower interest rates stimulate home-buying activity.”

Major markets are evenly split in terms of housing performance in 2009, with 11 centres forecast to match or exceed 2008 home sales and 11 expected to slide from 2008 levels.  The highest percentage increase in unit sales is anticipated in Saskatoon, where the number of homes sold is forecast to climb three per cent in 2009.  Housing values are expected to hold the line in 2009, with St. John’s, Montreal, Kingston, London, Winnipeg, Saskatoon, and Regina posting modest gains in average price in 2009.

“Canada’s real estate environment is considerably more complex than it has been in recent years,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada.  “The landscape is definitely changing — with most markets shifting into either balanced or buyer’s territory. The shut out is over.  Sellers no longer rule the roost.  Opportunities exist for purchasers like never before, including lower interest rates, greater inventory levels, the luxury of time to make decisions, and the upper-hand at the negotiating table.  Motivated vendors will need to take note of the new mindset and set their prices accordingly.”

Canadian sellers are slowly adjusting to new realities. For most markets, 2008 started in balanced territory and moved into buyer’s market conditions during the latter half of 2008.  The year ahead will prove challenging, especially for vendors.

“While the economy will dictate real estate performance next year, it’s important to remember that demand still exists in the marketplace,” says Sylvain Dansereau, Executive Vice President, RE/MAX Quebec.  “In the midst of stock market turmoil, sold signs continue to appear on lawns across the country.  With affordable lending rates and increased selection, first-time and move-up buyers with good credit may choose to play their investment strategy safe and purchase a home. The comfort of a tangible investment like real estate goes a long way in tough times.”

 RE/MAX is Canada’s leading real estate organization with over 18,000 sales associates situated throughout its more than 670 independently owned and operated offices across the country. The RE/MAX franchise network, now in its 35th year, is a global real estate system operating in close to 70 countries.  More than 7,000 independently owned offices engage more than 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral and asset management.

Source: Remax

for more information on the Brampton real estate market drop me an email.

Closing the deal on your Brampton house

Your negotiations were successful and you have a legally binding agreement. But, is the house truly sold? Not quite yet. It’s time for the vital final steps known as “closing”.

Your REALTOR® and lawyer will do most of the work

Thank goodness. Closing a deal involves many, many complicated and time-consuming legal maneuvers. That’s why you’ve hired pros.

Canada’s Money Laundering Reporting Requirements

By the time you accept an offer, your REALTOR® will also advise you of reporting requirements by FINTRAC, the federal agency responsible for administering Canada’s Money Laundering and Terrorist Financing legislation and regulations. Your REALTOR® is required by federal law to complete a client identification form, and must ask you as the vendor or seller for verified ID such as a drivers licence or passport. You can find out more on the FINTRAC web site www.fintrac-canafe.gc.ca/

Your closing checklist.

You still have plenty to do yourself, and here’s a comprehensive list.

• Contact your lawyer and notify them that an Agreement has been signed. Make sure they’re ready to close the transaction.
• Immediately begin satisfying any conditions of the agreement that require action on your part. They have definitive dates for completion and failure to do so can result in a lot of hassles, or even spoil the whole deal.
• Notify your lawyer and lending institution if the buyer is assuming your mortgage.
• Contact the utilities, telephone and cable companies about transfer or removal of service. Note: Your lawyer will often handle the transfer of utilities.
• Call your insurance agent and arrange cancellation or transfer of your homeowner’s insurance.
• Contact a moving company to arrange your move on or prior to closing date.
• Send out your change of address notices and advise the post office. Notify the Ministry of Transportation about your new address for driver’s license and registration.
• Notify your REALTOR® immediately if anything changes about your property or your situation.

Contact with your lawyer.

• If you plan to “discharge” or pay off your mortgage with proceeds of the sale, your lawyer will obtain a statement from your lender showing your outstanding balance on the mortgage, and any penalties you’ll have to pay to discharge the mortgage.
• A few days before closing, your lawyer will ask you to sign the paperwork that enables the title to be transferred to the buyer.
• On closing day, your lawyer will receive and distribute the proceeds from the sale, pay off your mortgage and other costs, and give you a cheque for the net proceeds.

Congratulations!I hope this was helpful. For more information on the Brampton real estate market or selling your Brampton house drop me an email.

Offer negotiations – Sellers

All of your hard work has paid off, even with all the competing homes in Brampton you managed to get an offer, but you won’t know exactly how much it’s paid off until you actually see the offer. This is an exciting, often emotional time, so be prepared.

Your REALTOR will walk you through the process.

• You’ll see every offer. It’s required that your REALTOR show you every offer that’s submitted. They’ll call for an appointment to discuss the offer.
• The buyer’s REALTOR will probably be there too. They are there to represent the buyer’s best interests in the negotiation. The buyer will not be there, so you can review and respond to their offer without any awkward pressure. Sometimes offers are done through fax. Your Brampton agent might recommend that as well because then there is no pressure from the buyer’s agent.
• Your eyes will be immediately drawn to the price! Here’s where emotions can really kick in. This isn’t a poker match, but remain calm. Listen to the REALTORS before making any judgments.
• You’ll probably ask the buyer’s REALTOR to leave the room. Now you and your REALTOR are alone to discuss the merits of the offer. Maybe it’s time for a high-five, or maybe it’s time to plan your counter offer. You may also wish some private time to discuss things with your spouse.

Three options when responding to an offer.

1. You can accept the offer. You got the price you were hoping for, maybe even more! The closing date looks good and there are no fussy conditions. Sold!

1. You can reject the offer. This offer isn’t even close.
2. You can “sign back” the offer. This offer is close, but something’s not quite right. Now the delicate art of negotiation begins, by “signing back”.

Reasons why you may want to “sign back”.

• You want more money. This is by far the most common reason people “sign back”. Everybody wants to get the most for their home, and as the saying goes “if you don’t ask, you don’t get”. Go for it, but don’t get too greedy and insult someone who has made a fair offer and remember in mind the Brampton real estate conditions.
• You want to change the closing date. Maybe your buyer has already sold their previous home and has no place to live. They want to move in soon; sooner than you’d like. Maybe you haven’t even started looking for a new home! In the same way that you can “sign back” a higher dollar amount, you can also “sign back” a compromise closing date. Perhaps the buyer is willing to offer more money to compensate you for the inconvenience of living in a motel for a few weeks. Welcome to the world of negotiation and compromise.
• There may be some undesirable conditions on the offer. Conditions are points of contention that must be fulfilled in order for the sale to go through. Here are some common conditions that buyers place on their offers.
  • Buyer to obtain financing.  they will often put in this condition. The sale will only go through if the buyer can get the mortgage they want. For some sellers, this is too big an “if”, but the buyer’s REALTOR® will be candid about their odds of approval and keep in mind even if they are preapproved the bank still wants their own appraisal done on the property. Unless there are competing offers (not happening so much anymore in Brampton) this condition is pretty standard in every offer.
  • Approval to assume mortgage. You have a great mortgage rate on the property and the buyer only wants your home if they can also take over your easy payments. Will this potential buyer qualify?
  • Sale of purchaser’s home. The buyer hasn’t sold their existing home yet and they want to be protected from the expense of owning two properties. Maybe their house will sell in a flash. Maybe it won’t sell at all. Maybe you don’t want the sale of your home riding on so many maybes. Time to consult their REALTOR® about the other home and its odds of selling soon.
  • Property Inspection This condition is becoming standard practice. Hopefully, you have followed the suggestion of your REALTOR® and disclosed every detail of your home’s faults, so there won’t be any surprises. Refusing a home inspection before sale is highly suspicious to a buyer, and may spoil the deal.

The art of counter-offers and negotiation.

A successful negotiation is one that leaves both you and the buyer feeling satisfied with the outcome. This is a highly emotional time, so be sure to regularly “check your head”, and ask yourself “How important is this particular detail to me? Am I willing to jeopardize a sale over this?” Remember once you “sign back” an offer, you are releasing the buyer from their offer and they are free to walk away. Thankfully, your REALTOR® is an expert and seasoned negotiator, and will help you every step of the way.

Happy negotiating, and best of luck!

For questions on the Brampton real estate market drop me an email.

What's in a listing agreement?

If the time has come to sell your Brampton house then either you will try it on your own or get the help of an agent. In order to be listed on the MLS you will have to sign a listing agreement with the agent’s company. Here are the main highlights of what’s included in a typical listing agreement just so you are not surprised when it comes time to sign one. Hope it helps!

Highlights of the Listing Agreement

• Authority.  This describes the legal relationship between you and the real estate brokerage, and it sets a time limit for the REALTOR® to sell your home.
• Exclusive or Multiple Listing Service? “Exclusive Listing” means that only your brokerage can find a buyer for your home. REALTORS® generally recommend a “Multiple Listing”, which allows them to put your home on the MLS®, and they can spread the word to other REALTORS (not just in Brampton but worldwide) to help find you a buyer. A listing on the local Multiple Listing Service gives your home maximum exposure and your commission stays the same. It really is the better way to sell.
• Price. The real key to attracting buyers. You have the final say over this magic number, but your REALTOR® will have very useful advice. If your house is in Brampton then be sure to pick an agent who specializes in Brampton. He will know market trends and exactly what the property can sell for.
• Real estate commission. This is usually a percentage of the final sale price, and you only pay once your REALTOR has found you an acceptable offer. The percentage is agreed upon between you and the individual brokerage. This can also be a fee arrangement.
• A physical description of your property. Your REALTOR® will itemize the lot size, the age of your home and the style of construction. They’ll list the style, number and size of the rooms. They will also be sure to include any outstanding selling features of your home such as “backs onto ravine” or “fabulous kitchen renovation”.
• Legal information The Uninvited dvd such as the lot number, land surveys and the zoning code will be included.
• Financial information like the minimum deposit you require with any offers. If you have a mortgage that can be assumed (taken over by a buyer) that information should be listed because it could make your home more desirable, especially if you’re locked into a lower interest rate than what is presently available.
• Completion date. This lets everybody know how long you need to move out, once your home is sold. The standard time is 60 or 90 days, but if you can be flexible be sure to make note.
• How the home will be shown. Normally your REALTOR will arrange appointments. Any specific instructions, such as “make sure the cat stays in” can also be noted. There are so many houses listed in Brampton at anytime it is vital that you not put many restrictions on when the house can be shown.
• What exactly is included in the price? Chattels and Fixtures.
  Chattels are moveable items like washers and dryers, microwaves and window blinds. Chattels are not automatically included in the sale, but sellers will often include them to sweeten the deal. Any chattels you wish to include should be clearly noted.Fixtures are permanent improvements to a property like central air conditioning, installed lighting and wall-to-wall carpeting. Fixtures are assumed to be included in the sale of the home unless you note otherwise. Maybe the dining room chandelier is family heirloom and you wish to take it with you. The line between chattel and fixture can get blurry, so leave nothing to chance! Go over every item with your REALTOR and make sure it’s accounted for in the Listing Agreement.

So there you have it. Hightlights of a typical listing agreement. Brampton real estate prices have taken a hit recently so get opinions of 2-3 agents on what the house can realistically sell for. Go with someone with the realistic price and a good marketing plan. All the best!

For questions on the Brampton or Georgetown real estate market drop me an email.

Mortgage vs RRSP

Here’s a question for Brampton homeowners -
Pay down your mortgage or invest in your RRSP?

• The Uninvited video

How do you decide which course of action is your best long-term alternative?

Have you ever wondered whether it makes more sense to pay off your mortgage on your Brampton house or to invest in a Registered Retirement Savings Plan (RRSP)? Perhaps you’re expecting to receive some extra money from an inheritance or employment bonus, and you’re not sure what route to take.

Here are some factors to consider:

• Your Age:
  When you’re young, it is wise to make your RRSP a priority. The sooner you get your money into a sheltered retirement plan, the longer it will grow on a tax deferred basis. But don’t overlook the need to build home equity, especially now that the Brampton real estate prices are taking a hit. It can give you a head start on the expenses of moving to a larger home as your family grows.
• Your Income.
  The more you earn, the higher the rate of tax you’ll pay. That means you must earn more in before tax dollars to make mortgage payments. If you’re a high income earner you may want to quickly reduce this expensive debt.
• Investment returns.
  Pay attention to the general rate of investment returns you could reasonably expect to earn when you make your decision. Astute investors could be further ahead by investing their money than paying down the mortgage. The benefits of investing are magnified by an RRSP, with tax-deferred growth within the plan and the tax deduction on contributions.
• Your mortgage rate.
  If your current mortgage rate is low, it may make more sense to invest in an RRSP. In times of good returns for financial markets, low borrowing costs make a compelling case for contributing to your RRSP.
• Are you behind on your RRSP?
  If you have made less than your maximum annual RRSP contribution in the past, a lump sum could allow you to catch up. You are allowed to make up for unused contribution room that you’re accumulated from past years. This could also generate a healthy tax benefit.
• Your pension plan.
  Those with generous workplace pension plans that provide for a secure retirement may be able to concentrate on a mortgage without giving up financial security in retirement.

Summary

Of course, you can focus on both your RRSP and mortgage. For example, you could contribute to your RRSP and then apply the tax refund it generates towards a prepayment on your mortgage.

Before you make a decision, you may want to ask for an assessment of your personal situation. An advisor can help you decide which course of action suits your financial circumstances and objectives. I have contacts with some excellent Brampton financial advisors. Drop me an email if you would like their contact information.

Also, for more general information on the Brampton or Georgetown real estate market send me an email.

Yearly statistics (Brampton and other cities)

          Year -    Number of sales -     Average price

1974               17,318            52,806

1975               22,020            57,581

1976               19,025            61,389

1977               20,512            64,559

1978               21,184            67,333

1979               23,466            70,830

1980               26,017            75,694

1981               29,625            90,203

1982               25,336            95,496

1983               30,046            101,626

1984               31,905            102,318

1985               45,509            109,094

1986               52,919            138,925

1987               43,475            189,105

1988               49,381            229,635

1989               38,960            273,698

1990               26,779            255,020

1991               38,144            234,313

1992               41,703            214,971

1993               38,990            206,490

1994               44,237            208,921

1995               39,273            203,028

1996               55,779            198,150

1997               58,014            211,307

1998               55,344            216,815

1999               58,957            228,372

2000               58,343            243,255

2001               67,612            251,508

2002               74,759            275,231

2003               78,898            293,067

2004               83,501            315,231

2005               84,145            335,907

2006               83,084            351,941
2007               93,193            372,236