I wanted to add an extra "s" after the as above.
What is it? We hear about it, but what do we know of it?
In short, it's a fibrous material that's primary function is to provide insulation. It can be found around the exterior lining of ductworks in a centralized heated and cooled home. It can be found on pipes leading from a water boiler in the basement furnace room. If left undisturbed it can provide its intended fuction with no real concerns for maybe even the life of the home. If a new furncae is to be replacing the old furnace, proper handling of the asbestos is required and can be done relatively painlessly. Removed incorrectly and the fibrous particles can split and become airbourne. As airbourne particles, there still doesn't present too much of a risk, unless huge amounts are released. Clean up is left to specialized teams and typically its an out of pocket expense as its a preexisting conditions and a non insurable claim.
There are lab tests that can trace the number of airborne molecules of asbestos lingering in the house. There are also different types of asbestos. Type 1 (most common) isn't much if any of a health concern, but corrective action including removing of the paper/bandage can be done and encapsulation. Type 2 and Type 3, requires more specific and indepth work.
Asbestos can also be located in old plaster ceilings or in the base of an original tile in a landury room for example. Even the glue used to hold the bottom end of the asbestos tile contains traces of asbestos. With that new homes still feature tiles with degrees of asbestos. Car brakes when tapped emit asbestos particles. In fact if you were to take a airborne sample in downtown Toronto you'd probably see a reading that may cause your head to spin. It's all around us, blowing in the winds!
A typical home inspection does not look for asbestos. If inspector notices, he may point out to you. Sellers unless they have reason to believe that it is distrubed and needs repair don't have a duty to disclose per MLS as they would say UFFI (a older form of insulation) or mould issues.
At the end of the day, if you're concentrating on buying a home in the central core or west or east core and you just can't escape the charm of the old victorian, or high ceilings or city streets..you're going to face more housing concerns. Mould, termites, asbestos, old joists, sagging roofs, grading, leaky basements, water boilers, knob and tube wiring, etc. Of course a home inspector is of use. A buyer agent who understands the above can help prep your mind set and understanding of the particular costs and possible issues you may face with the house you just fell in love with. You need an agent to illustrate these issues clearly and not overblown!
Another day...hopefully another piece of knowledge for you?
Cheers-
Tuesday, April 27, 2010
Sunday, April 25, 2010
Bully Offer!!!!!!
Over the last few years, real estate "lingo" has made its was into main stream dialogue. Everybody sounds like a "realtor". Dunno that this is a good thing?
I remember 5 years ago sitting with friends of ours out for dinner and my buddy's wife leaned over and said something to the effect...friends of ours have listed their house for sale. They've done a "preinspection". They're worried cuz they have some "knob and tube" wiring and may have "asbestos". They're "holding back" offers and hoping to get "multiple offers" on the bid date. Another friend of ours was told by their realtors to do a "bully offer" on a property they wanted, she explained.
I had to break down the dialogue with her over dinner. So we looked at each of her new found real estate words.
-Preinspection
Holding Back
Multiple Offers
Knob and Tube
Asbestos
Let's face it, most of the above are straight forward but she didn't do such a great job at explaining the knob and tube and asbestos part. I wish I could recall her exact definitions. Lucky for her, I sold her a new home with a warranty that didn't contain either of her concerns.
Of late (and I don't think its gonna last much longer at all)..the term "bully offer" has become all the rage.
Just so it's out there....a "bully offer" is as it sounds. A party really pressing to buy a particular home tries to bud everyone else in line. Typically the buyer agent contacts the the listing agent and a verbal offer is presented. The dialogue may be..."what would your sellers be happy with to avoid any further disturbances of having people coming in and out of their residence. What's their most suitable closing date and if my buyers put that on a piece of paper (offer), can we bang this thing out in an hour and put the sold sign up?" I don't want to put words in other realtors mouths, but that's about the crude dialogue as a buyer agent I'd have with the listing agent.
The Sellers may take the bait even if they've had tons of showings. The upside for them is they get a price and closing date that suits them. The inherent risk is what if 10 parties would have bid up the price even higher. And if a seller is out of town for the week for convenience, the arguement of making their life easier holds little water.
It's not fun as a buyer to fall for a house and work on getting your ducks in a row only to find out that there's a bully offer. One thing to make sure you are doing to safeguard yourself somewhat is to book a showing for the property on day 1. Out of respect, the listing agent should call any buyer agent who has booked a showing to see the property to update them of the news. But the listing agent can only do so, if they know you exist (a booked showing is the only confirmation of you).
Their are strategies at play in a bully situation and of course your experienced, savvy and charming agent will assist you with those.
In the meantime, I have seen some offer dates come and go that a few months ago would have sold firm that night. This should offer some optimism.
For those buyers who are being removed from the home buying process with sharper lending regulations and heightened rates, the rest of you buyers should find yourself in the months to come in an environment with more supply and less sharp price increases. Some light at the end of the tunnel?!?!
Cheers and as always if you'd like to speak, email me of find me thru my website at http://www.TheSmithsBuyAHouse.com
I remember 5 years ago sitting with friends of ours out for dinner and my buddy's wife leaned over and said something to the effect...friends of ours have listed their house for sale. They've done a "preinspection". They're worried cuz they have some "knob and tube" wiring and may have "asbestos". They're "holding back" offers and hoping to get "multiple offers" on the bid date. Another friend of ours was told by their realtors to do a "bully offer" on a property they wanted, she explained.
I had to break down the dialogue with her over dinner. So we looked at each of her new found real estate words.
-Preinspection
Holding Back
Multiple Offers
Knob and Tube
Asbestos
Let's face it, most of the above are straight forward but she didn't do such a great job at explaining the knob and tube and asbestos part. I wish I could recall her exact definitions. Lucky for her, I sold her a new home with a warranty that didn't contain either of her concerns.
Of late (and I don't think its gonna last much longer at all)..the term "bully offer" has become all the rage.
Just so it's out there....a "bully offer" is as it sounds. A party really pressing to buy a particular home tries to bud everyone else in line. Typically the buyer agent contacts the the listing agent and a verbal offer is presented. The dialogue may be..."what would your sellers be happy with to avoid any further disturbances of having people coming in and out of their residence. What's their most suitable closing date and if my buyers put that on a piece of paper (offer), can we bang this thing out in an hour and put the sold sign up?" I don't want to put words in other realtors mouths, but that's about the crude dialogue as a buyer agent I'd have with the listing agent.
The Sellers may take the bait even if they've had tons of showings. The upside for them is they get a price and closing date that suits them. The inherent risk is what if 10 parties would have bid up the price even higher. And if a seller is out of town for the week for convenience, the arguement of making their life easier holds little water.
It's not fun as a buyer to fall for a house and work on getting your ducks in a row only to find out that there's a bully offer. One thing to make sure you are doing to safeguard yourself somewhat is to book a showing for the property on day 1. Out of respect, the listing agent should call any buyer agent who has booked a showing to see the property to update them of the news. But the listing agent can only do so, if they know you exist (a booked showing is the only confirmation of you).
Their are strategies at play in a bully situation and of course your experienced, savvy and charming agent will assist you with those.
In the meantime, I have seen some offer dates come and go that a few months ago would have sold firm that night. This should offer some optimism.
For those buyers who are being removed from the home buying process with sharper lending regulations and heightened rates, the rest of you buyers should find yourself in the months to come in an environment with more supply and less sharp price increases. Some light at the end of the tunnel?!?!
Cheers and as always if you'd like to speak, email me of find me thru my website at http://www.TheSmithsBuyAHouse.com
Thursday, April 22, 2010
Changing Winds??
There's a change in the air entirely in some ranges and crosswinds coming in other areas.
The end of 09 and first few months of 2010 was a true Sellers market. Not much supply, emergency rates, pent up demand. That's the Sellers dream.
This week credit got a little harder to come by with the new mtg rules, HST coming to play, rates on fixed mortgages have increased .65 plus basis pnts, variable rates will go up as early as June 1st and supply has hit the market in most neighborhoods.
The result..inconclusive really. First time buyers are feeling the pinch the most with the recent developments.
Though, buyers of all ranges are getting a chance to feast their eyes on more and exciting listings. Some buyers are also comfortable applying a "wait and see" what's still to come attitude. So we are in some cases seeing days on market creep up and some offer dates passing with no bids.
With the canadian economy chugging along and rates still low, there is demand. Homes priced well and that show well will see offers quickly. But, I have seen some cases in area like yonge and lawrence where the seller 2 months ago in a very direct comp did much better then the guy out last week.
As always, if you have any questions about the changing landscape; want to discuss the market or know of someone who may be in the market for my services---please contact me at your convenience.
Finally, if you haven't visited my website, please do and forward to family and friends where fit.
The end of 09 and first few months of 2010 was a true Sellers market. Not much supply, emergency rates, pent up demand. That's the Sellers dream.
This week credit got a little harder to come by with the new mtg rules, HST coming to play, rates on fixed mortgages have increased .65 plus basis pnts, variable rates will go up as early as June 1st and supply has hit the market in most neighborhoods.
The result..inconclusive really. First time buyers are feeling the pinch the most with the recent developments.
Though, buyers of all ranges are getting a chance to feast their eyes on more and exciting listings. Some buyers are also comfortable applying a "wait and see" what's still to come attitude. So we are in some cases seeing days on market creep up and some offer dates passing with no bids.
With the canadian economy chugging along and rates still low, there is demand. Homes priced well and that show well will see offers quickly. But, I have seen some cases in area like yonge and lawrence where the seller 2 months ago in a very direct comp did much better then the guy out last week.
As always, if you have any questions about the changing landscape; want to discuss the market or know of someone who may be in the market for my services---please contact me at your convenience.
Finally, if you haven't visited my website, please do and forward to family and friends where fit.
Monday, April 19, 2010
Listing Error
Every so often, I make a mistake. Yes, I'm prone to them. I recently lost a listing presentation in my farm area. How? Simple,,,I know the area too well. The Sellers were asking an unreasonable dollar in my humble opinion given recent comps and land value. My marketing plan was stellar, our rapport was strong. All I needed to do was change my number to suit them. Many agents do this and then work on the Sellers to drive the price downwards over time. The arguement goes, it's better to have a listing then not and youre one step closer to earning the commission (even if it is a long painful journey).
The Sellers opted to use another agent who was quicker to believe in their number. I was convinced wearing my Listing Agent hat that this property would sit. It did. For about 1 day and sold close to asking.
What I didn't do is try on the hat that many Buyer's are wearing these days. Scared out of their wits of tougher mortgage standards, increasing rates, HST (which doesnt have much of an effect on prices tho the media will have you believe it's huge), they're buying up property and in many cases paying a pretty penny for it.
When I work with my Buyer's I'm so focussed on pricing and comparables, etc. that often enough I don't see the value that other Buyer's may readily see with their representation.
Next time I go to a listing presentation and the Sellers name their price, I just may think twice and remember how that one went down! But, that's me on the listing end. Catch me on the Buying end and it's a different hat!
Best,
http:www.TheSmithsBuyAHouse.com
The Sellers opted to use another agent who was quicker to believe in their number. I was convinced wearing my Listing Agent hat that this property would sit. It did. For about 1 day and sold close to asking.
What I didn't do is try on the hat that many Buyer's are wearing these days. Scared out of their wits of tougher mortgage standards, increasing rates, HST (which doesnt have much of an effect on prices tho the media will have you believe it's huge), they're buying up property and in many cases paying a pretty penny for it.
When I work with my Buyer's I'm so focussed on pricing and comparables, etc. that often enough I don't see the value that other Buyer's may readily see with their representation.
Next time I go to a listing presentation and the Sellers name their price, I just may think twice and remember how that one went down! But, that's me on the listing end. Catch me on the Buying end and it's a different hat!
Best,
http:www.TheSmithsBuyAHouse.com
Wednesday, April 14, 2010
The Great Convergence
All forces point to a strong spring market.
What are they?
1. Continued low emergency rates for mortgages that are being pushed upwards.
2.HST to hit in July
3. Mid April banks will apply more stringent methods of reviewing candidates--relying on fixed rate products and not the lower variable rates posted. Also, banks will like to see stronger downpayments.
4. More inventory to hit market, making it more enticing for buyers to get out and see homes and find the best deal
With all that, demand is going to continue to outstrip supply for a while. And that means prices aren't coming down while rates are going to go up.
The market is strong, the economy seems strong and people need to own homes.
Get your preapproval stamped today and if you're planning on buying and believe in the almighty variable rate...know that June 1st (if not July), that sucker is headed upwards too!!
The good news is...there are good opportunities out there in all ranges. Yes, the competition is tough. And you've gotta be ready and quick to the draw. Today marks the third day in a row, that I attempted to book a showing for a buyer client on day 1 of the listing to find out that the house sold firm the first hour it hit the market!! If you're looking to spend your hard earned cash and need to buy, please don't sit at home in this market and rely on realtor.ca You'll officially be seeing everything 2 days too late. Get in the game folks. The rules are changing, the players are changing and the speed is lightning quick. If what your doing isn't working...change it up. Bring in help!!
Cheers-
What are they?
1. Continued low emergency rates for mortgages that are being pushed upwards.
2.HST to hit in July
3. Mid April banks will apply more stringent methods of reviewing candidates--relying on fixed rate products and not the lower variable rates posted. Also, banks will like to see stronger downpayments.
4. More inventory to hit market, making it more enticing for buyers to get out and see homes and find the best deal
With all that, demand is going to continue to outstrip supply for a while. And that means prices aren't coming down while rates are going to go up.
The market is strong, the economy seems strong and people need to own homes.
Get your preapproval stamped today and if you're planning on buying and believe in the almighty variable rate...know that June 1st (if not July), that sucker is headed upwards too!!
The good news is...there are good opportunities out there in all ranges. Yes, the competition is tough. And you've gotta be ready and quick to the draw. Today marks the third day in a row, that I attempted to book a showing for a buyer client on day 1 of the listing to find out that the house sold firm the first hour it hit the market!! If you're looking to spend your hard earned cash and need to buy, please don't sit at home in this market and rely on realtor.ca You'll officially be seeing everything 2 days too late. Get in the game folks. The rules are changing, the players are changing and the speed is lightning quick. If what your doing isn't working...change it up. Bring in help!!
Cheers-
Monday, April 12, 2010
Housing Perspective
The pursuit of your house is certainly one of the most exciting and stressful events of your life. We get very caught up in the highs and lows. Some buyers begin to feel so down when they lose the house they thought was theirs.
Little reminders in life sometimes help to put this stuff in perspective. I don't know if it's been just a very highly sensitized week for me, but I've heard terrible stories of health concerns and I know its time for many awareness campaigns for causes like MS and Arthritis and Diabetes. When we put the housing market in perspective, we're fortunate on many levels to be able to concern ourselves with this pursuit!
So on some basic level, I suppose collectively we should feel "lucky" to be involved in this part of life right now.
I just had a deal fall thru. I represented the Seller. It was conditional for 3 business days on financing--a formality we were told. We came to a conditional agreement. I picked up the phone in the morning to hear that the Buyer's could no longer make good on their condition. The stories started. First, they couldnt get their financing and then worse yet...they couldn't get a downpayment together.
I will assume they had "cold feet".
Who knows..maybe the Buyers got so used to losing bids that when they won, they didn't feel as good as they hoped?
Maybe the Buyers and their Agent didn't collectively do the homework they needed to do to walk into the transaction with confidence.
I can't say it enough....do your homework. Allow someone who has the experience and knowledge to guide you there. You'll know if that person does. All this talk of changing regulations in this industry and buyers as much as they ever did---require a solid agent to assist in what is a very involved, emotionally and mentally drawn out process. Let alone the financial and negotating of the biggest purchase of your life!
Cheers-
Little reminders in life sometimes help to put this stuff in perspective. I don't know if it's been just a very highly sensitized week for me, but I've heard terrible stories of health concerns and I know its time for many awareness campaigns for causes like MS and Arthritis and Diabetes. When we put the housing market in perspective, we're fortunate on many levels to be able to concern ourselves with this pursuit!
So on some basic level, I suppose collectively we should feel "lucky" to be involved in this part of life right now.
I just had a deal fall thru. I represented the Seller. It was conditional for 3 business days on financing--a formality we were told. We came to a conditional agreement. I picked up the phone in the morning to hear that the Buyer's could no longer make good on their condition. The stories started. First, they couldnt get their financing and then worse yet...they couldn't get a downpayment together.
I will assume they had "cold feet".
Who knows..maybe the Buyers got so used to losing bids that when they won, they didn't feel as good as they hoped?
Maybe the Buyers and their Agent didn't collectively do the homework they needed to do to walk into the transaction with confidence.
I can't say it enough....do your homework. Allow someone who has the experience and knowledge to guide you there. You'll know if that person does. All this talk of changing regulations in this industry and buyers as much as they ever did---require a solid agent to assist in what is a very involved, emotionally and mentally drawn out process. Let alone the financial and negotating of the biggest purchase of your life!
Cheers-
Wednesday, April 7, 2010
Market and Pricing
My website http://www.TheSmithsBuyAHouse.com has a whole section on Market Pricing and who and how homes get priced. May be worth your review.
With that, there's been a drastic uptick in the number of listings on mls since the beginning of the week. If you're a Buyer, its gonna get more exciting and more stressful. Which house do you see first; what are these homes gonna sell for; what strategies do you employ given that we'll likely find ourselves in multiple offers; which properties are priced well and which ones are clearly undercut so tremendously to sucker you in.
It's not easy for some Buyers but it can be said that if you're a 700k buyer and homes are listed at 699k taking offers in a few days and history is showing that 699k homes are selling for 775k (above your affordability level)...it may be time to grow more comfortable with a lower asking price to give you the flexibility to bid upwards. Not great news but it'll get you into a house as oppose to sitting on sidelines or getting beaten to heck in offers.
Now is the season where all the tricks come out to play. "Bully offers", offers that arrive prior to the scheduled offer date. There are ways to safeguard against. "Flippers" who bought in last years market and did some renos and throw onto market at heightened prices that may/may not reflect market value.
Anyways the message remains the same. Do your homework. Be on top of the market and have fun!
Best--
With that, there's been a drastic uptick in the number of listings on mls since the beginning of the week. If you're a Buyer, its gonna get more exciting and more stressful. Which house do you see first; what are these homes gonna sell for; what strategies do you employ given that we'll likely find ourselves in multiple offers; which properties are priced well and which ones are clearly undercut so tremendously to sucker you in.
It's not easy for some Buyers but it can be said that if you're a 700k buyer and homes are listed at 699k taking offers in a few days and history is showing that 699k homes are selling for 775k (above your affordability level)...it may be time to grow more comfortable with a lower asking price to give you the flexibility to bid upwards. Not great news but it'll get you into a house as oppose to sitting on sidelines or getting beaten to heck in offers.
Now is the season where all the tricks come out to play. "Bully offers", offers that arrive prior to the scheduled offer date. There are ways to safeguard against. "Flippers" who bought in last years market and did some renos and throw onto market at heightened prices that may/may not reflect market value.
Anyways the message remains the same. Do your homework. Be on top of the market and have fun!
Best--
Monday, April 5, 2010
Attention First Time Buyers!
This is advanced notice that tomorrow a listing in Davenport Village at Davenport and Lansdowne will be brokerloaded on mls. It won't be seen on realtor.ca for some 48 hours thereafter. It's a well appointed, condo townhouse approx 4 years of age and original owner. Stainless steel kitchen opens to combined living/dining area. 2 great sized bedrooms with a master bedroom 4 pce ensuite and a second 4 pce. On the main level, there is a third bedroom or den. 2nd floor laundry room and walk out thru living room to outdoor patio with bbq. It's an exceptional complex for first time buyers and very low maintenance fees (under 200 dollars/m). 1 underground parking space included. It shows very well and will not last in this marketplace.
If interested, please email me @ mgruenstein@trebnet.com or call 416.271.2066.
Pictures and links will be available here by Wed.
If interested, please email me @ mgruenstein@trebnet.com or call 416.271.2066.
Pictures and links will be available here by Wed.
Sunday, April 4, 2010
Mortgages/Demand/HST Is it slowing down? Are the winds changing?
Again...just an opinon piece. Debatable. Take what you will from it.
With rates making their way up (some having already gone up on the fixed side) and the variable rates to follow the benchmark index rate as early as June/July, will this be the catalyst to slow down pricing in Toronto and pull some buyers out of teh market?
In my humble opinion, likely not. We still need to work off the basics of supply and demand. The demand remains very strong (artificially so maybe) with emergency loan rates, fear of upcoming HST (which is overblown unless your buying new construction) and variable mortgage rates to increase.
All that said, there is a strong immigrant base who need homes, Canadians are not showing trepidness in the wake of increasing their debt levels (not a good thing, but it isn't keeping them out of the mortage line ups) and supply has been light versus demand.
It's my humble belief that supply will not keep up pace with demand, that interest rates in the next while will not rise as quickly as they need to to make a dent in buyers decision making, the new tests for cmhc buyers qualifying for stricter mortgages still enable banks (from what i'm hearing) to make mortgages work---all these combined suggest that buying in this spring market will continue strong, prices will continue to make their way up and all the resistance factors namely; HST, mortgage rates; mortgage qualfications; debt levels---won't slow down the demand.
We need to see much more supply to reach a different market in Toronto.
So, shop around, get the best mortgage and find the best house for you while not pushing yourself to the brink.
Happy Long Weekend.
With rates making their way up (some having already gone up on the fixed side) and the variable rates to follow the benchmark index rate as early as June/July, will this be the catalyst to slow down pricing in Toronto and pull some buyers out of teh market?
In my humble opinion, likely not. We still need to work off the basics of supply and demand. The demand remains very strong (artificially so maybe) with emergency loan rates, fear of upcoming HST (which is overblown unless your buying new construction) and variable mortgage rates to increase.
All that said, there is a strong immigrant base who need homes, Canadians are not showing trepidness in the wake of increasing their debt levels (not a good thing, but it isn't keeping them out of the mortage line ups) and supply has been light versus demand.
It's my humble belief that supply will not keep up pace with demand, that interest rates in the next while will not rise as quickly as they need to to make a dent in buyers decision making, the new tests for cmhc buyers qualifying for stricter mortgages still enable banks (from what i'm hearing) to make mortgages work---all these combined suggest that buying in this spring market will continue strong, prices will continue to make their way up and all the resistance factors namely; HST, mortgage rates; mortgage qualfications; debt levels---won't slow down the demand.
We need to see much more supply to reach a different market in Toronto.
So, shop around, get the best mortgage and find the best house for you while not pushing yourself to the brink.
Happy Long Weekend.
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