Folks,
wait for Gadot. don't wait to sell.
Here's why:
1. For the past many hot spring markets there have been "winners" and "losers". But you only hear of the winners!
A spring market works as follows: Everyone waits for springtime to sell. The obvious advantage is that the weather is nicer, the house shows better, buyers come out of their caves. The flaw is that there are more homes on the market. There are schools of investors that believe that when everyone wants to buy into the stock market, that's the exact time to sell and when people are saying its a bad time...buy.
My point is that in the spring market, you better have the prettiest house on the block if you want to get top buck. Buyers are slower to make an offer as they need to weed through all the inventory. The first guy who sells may sell at a price lower then you hoped he would and now your chances of selling for your buck are minimal.
In a market like today's there is not an abundance of inventory. That's typically great for a seller. Interest rates are low for the buyer so they feel pretty good. With banks still permitting 30 year ammortizations on top of low interest rates, buyers payments become more affordable.
Canada in general is seeing some of the highest debt levels per household ever. The theory goes that households will have to clean up their balance sheets and in doing so will become net savers. That doesn't necessarily point to a great market for sellers.
Some are predicting a correction of up to 15 percent in 2011 in some pockets. Who knows? We've been calling for a correction since I walked into real estate in 2002. Time will tell.
What I am certain about is homes are seeing similar prices that the heights of the spring market brought. In some cases --higher. Just supply and demand without the supply.
So if you're thinking about the spring market, the month of November just might be a heck of an opportunity for you to sell.
You can always look for a long closing to insulate some time to locate a great house. Ya, you might be a buyer in the spring market and pay a bit of a premium..but there should be more inventory if the house you want isn't here sooner.
It just may be better to be a buyer this spring market then a seller after all!
Michael Gruenstein MBA CSC
http://www.TheSmithsBuyAHouse.com
http://www.PropertiesintheGTA.ca
mgruenstein.blogspot.com
Tuesday, October 26, 2010
Monday, October 25, 2010
"Offer Time" for Smith's...lets see how it goes
They locate a great house. It's even priced at market value. Closing date looks good. Heck, this is straight forward...make an offer and buy the damn house.
Can this not be so straight forward? Might there be some key issues here?
There just might be. Here's some things that the Smiths in all their excitement may not have cleared up and may affect their enjoyment and hence the resale value of the property of interest.
1. There's a major city easement that runs through the backyard. it actually chews off 10 ft of the rear property. So this 40 ft lot is contained to 30 feet on the westerly side for potential development. if they wanted to build a pool or a deck of plant a garden...they may have serious issues.
2. The family room addition is great space. It's hard to say if it was built legally. Current sellers bought it "as is". Better do some investigating and insuring
3. Property has some knob and tube wiring. There are some insurers. Some will ask you to cut the amount of knob and tube, others may request a complete update and inspection by third party. On top of land transfer and closing costs, this may be a sizable cost. So do they keep it "as is" and pay premium for year OR change immediately. Is one insurer more accomodating then the next?
4. The inspection revealed some moisture and active water coming from roof of house. Conditions run out tmrw for them to move forward or walk away. What's best course of action? Is their a way to try to get an abatement but still have capacity to move forward if sellers dispute?
5. Parking spot infront of the house isn't legal. But it's been in operation for a while. Do you ask the city or keep your mouth shut and assume it "as is" and hope for best.
6. Smiths need a second spot. No problem right? This area/street has street parking. Careful here if youre moving forward and not doing homework on this issue.
7. The taxes on the property seem low. That's great news for the Smiths? Does the city know about the 2 additions and 2 new washrooms added on to the top off of the existing bungalow? This property may be up for reassesment any time now and the property taxes may be artifically low so make sure you have an eye on that.
8. During negotiations a second offer pops up. How do you handle this now strategically. You were the first ones in. Does this give you an advantage. Is there a way to treat signbacks of offers for some added protection.
We found ourselves for years in an environment where if you had an average agent and lost a house then inventory was plentiful. So you hurt for a few days until you found the next one. Inventory is not as plentiful so the arguement is some buyers are feeling rushed to pull the trigger. Some agents love the hurry-up offense.
My arguement is that you can still be quick to the plate and cover yourself properly.
We're not trying to get you to the moon here. We'd like to get you into a great house and there are strategies and concerns that trained realtors can assist with.
I hate those realtors can help commercials. It oversimplifies the issues. It's a legal document with clauses that too often are breezed over which can have ramifications on the purchase of your greatest asset.
Cheers,
Michael Gruenstein MBA CSC
ReMax Realtron
mgruenstein@trebnet.com
http://www.TheSmithsBuyAHouse.com
http://www.PropertiesintheGTA.ca
Can this not be so straight forward? Might there be some key issues here?
There just might be. Here's some things that the Smiths in all their excitement may not have cleared up and may affect their enjoyment and hence the resale value of the property of interest.
1. There's a major city easement that runs through the backyard. it actually chews off 10 ft of the rear property. So this 40 ft lot is contained to 30 feet on the westerly side for potential development. if they wanted to build a pool or a deck of plant a garden...they may have serious issues.
2. The family room addition is great space. It's hard to say if it was built legally. Current sellers bought it "as is". Better do some investigating and insuring
3. Property has some knob and tube wiring. There are some insurers. Some will ask you to cut the amount of knob and tube, others may request a complete update and inspection by third party. On top of land transfer and closing costs, this may be a sizable cost. So do they keep it "as is" and pay premium for year OR change immediately. Is one insurer more accomodating then the next?
4. The inspection revealed some moisture and active water coming from roof of house. Conditions run out tmrw for them to move forward or walk away. What's best course of action? Is their a way to try to get an abatement but still have capacity to move forward if sellers dispute?
5. Parking spot infront of the house isn't legal. But it's been in operation for a while. Do you ask the city or keep your mouth shut and assume it "as is" and hope for best.
6. Smiths need a second spot. No problem right? This area/street has street parking. Careful here if youre moving forward and not doing homework on this issue.
7. The taxes on the property seem low. That's great news for the Smiths? Does the city know about the 2 additions and 2 new washrooms added on to the top off of the existing bungalow? This property may be up for reassesment any time now and the property taxes may be artifically low so make sure you have an eye on that.
8. During negotiations a second offer pops up. How do you handle this now strategically. You were the first ones in. Does this give you an advantage. Is there a way to treat signbacks of offers for some added protection.
We found ourselves for years in an environment where if you had an average agent and lost a house then inventory was plentiful. So you hurt for a few days until you found the next one. Inventory is not as plentiful so the arguement is some buyers are feeling rushed to pull the trigger. Some agents love the hurry-up offense.
My arguement is that you can still be quick to the plate and cover yourself properly.
We're not trying to get you to the moon here. We'd like to get you into a great house and there are strategies and concerns that trained realtors can assist with.
I hate those realtors can help commercials. It oversimplifies the issues. It's a legal document with clauses that too often are breezed over which can have ramifications on the purchase of your greatest asset.
Cheers,
Michael Gruenstein MBA CSC
ReMax Realtron
mgruenstein@trebnet.com
http://www.TheSmithsBuyAHouse.com
http://www.PropertiesintheGTA.ca
Friday, October 22, 2010
do it yourselfer meets realtor--round 1. freindly sparring
sure sell/buy your house alone---good luck my friend.
let's start from the beginning:
1. Seller is asking 849k
fair price?
diy--do you have comps? don't want to overpay. may find out banks appraisal differs from yours and banks are getting tighter with these debt levels. sucks when you find out 2 weeks before close at time of appraisal that theres a disagreement.
i'd think those comps would be important\
realtor-i got the comps. i also have the land registry for private sales. oh..i also have the knowledge that theres ways of disecting a listing to come to market value (with some room for subjective value). i'm gonna ask some questions to give my client the upper leg. here's some:
1. what side of the street is house on?
2. when did it last sell? how long did it take?
3. what are semis selling for relative to detached?
4. in the area what's the premium for a private drive or mutual drive
5. cost of redoing the kitchen, wiring, plumbing --how will that factor into "market value"
DIY: house asking 849K. bypasses agent. goes to listing agent and offers 825k. DIY did it! good work. got the reduction. It's just that the house was so overpriced that 810k would have been a win/win for all. hey, what's an extra 15k savings, especially when its coming out of sellers pocket??
DIY: this guy is glued to the paper and mls.ca--the papers advertise typically 3-4 days after it hits mls.com where agents have taken their top clients to the front door and house could have sold. mls.ca---48hr delay. then call the listing agent who has 3 buyers in mind and likely will invite you to the open house on Sunday or struggle to return your call. Agent--takes you in on day 1 as inventory is tight and gives you time to make a decision. It's like the DIY arrives 2 days late for the flight to Miami. The agent boarded the flight and gates are closed.
I don't want make this blog too long and beat up on the DIY. I have friends who are DIY's. They're still friends. Just tough to watch them navigate the system of buying a home. It's just money and a house so let them be happy I say!
Gotta go show some homes. They just came out ande 2 are exclusive. DIY's can't possibly know about them. 9 years of cultivating relationships with other agent's got my clients the "early bird special" to see these places.
My best---
http://www.TheSmithsBuyAHouse.com
http://www.PropertiesintheGTA.ca
http://www.mgruenstein.blogspot.com
let's start from the beginning:
1. Seller is asking 849k
fair price?
diy--do you have comps? don't want to overpay. may find out banks appraisal differs from yours and banks are getting tighter with these debt levels. sucks when you find out 2 weeks before close at time of appraisal that theres a disagreement.
i'd think those comps would be important\
realtor-i got the comps. i also have the land registry for private sales. oh..i also have the knowledge that theres ways of disecting a listing to come to market value (with some room for subjective value). i'm gonna ask some questions to give my client the upper leg. here's some:
1. what side of the street is house on?
2. when did it last sell? how long did it take?
3. what are semis selling for relative to detached?
4. in the area what's the premium for a private drive or mutual drive
5. cost of redoing the kitchen, wiring, plumbing --how will that factor into "market value"
DIY: house asking 849K. bypasses agent. goes to listing agent and offers 825k. DIY did it! good work. got the reduction. It's just that the house was so overpriced that 810k would have been a win/win for all. hey, what's an extra 15k savings, especially when its coming out of sellers pocket??
DIY: this guy is glued to the paper and mls.ca--the papers advertise typically 3-4 days after it hits mls.com where agents have taken their top clients to the front door and house could have sold. mls.ca---48hr delay. then call the listing agent who has 3 buyers in mind and likely will invite you to the open house on Sunday or struggle to return your call. Agent--takes you in on day 1 as inventory is tight and gives you time to make a decision. It's like the DIY arrives 2 days late for the flight to Miami. The agent boarded the flight and gates are closed.
I don't want make this blog too long and beat up on the DIY. I have friends who are DIY's. They're still friends. Just tough to watch them navigate the system of buying a home. It's just money and a house so let them be happy I say!
Gotta go show some homes. They just came out ande 2 are exclusive. DIY's can't possibly know about them. 9 years of cultivating relationships with other agent's got my clients the "early bird special" to see these places.
My best---
http://www.TheSmithsBuyAHouse.com
http://www.PropertiesintheGTA.ca
http://www.mgruenstein.blogspot.com
Thursday, October 21, 2010
October Market..inside scoop
Here it is: issues for October
1. If you're wondering what's going on in terms of pricing in GTA...think "big".
Why? Lack of supply and low rates continue to prop up prices. I'd argue were above in many districts where we saw prices in this past hot spring market.
We just witnessed 23 offers in Allenby on a semi this past week. So are their buyers still out there? Indeed. Is their supply? Not enough. Do the math!
This may be the kind of market where you need an agent who is creative and hard working and has established a steady network with fellow agents. They're not competitors of one another. We actually can work quite well together and secure the interests of our 2 parties.
2. As for flat fee sellers leveraging the MLS system---no real concern. This has been around in the US fore many years and less then 3 percent of the entire market went this way. Bottom line is....I'd still trust a dentist over a welder to fix my teeth. Sellers don't have exposure to negotiating homes. And always valuate their homes well above market value
3. I just sold a house that involved using my network. We located a great property that wasn't listed on mls. A truly great way for a buyer to buy and a great way to stand out amongst the other agents. A win/win if you will. So there are still ways to locate homes in a low inventory area, but it takes time and work!
4. Household debt is huge in Canada these days. With these teaser rates, buyers continue to leverage the rates and may be buying more then they should. So, don't "overbuy". Buy but be prudent! But get into the market.
If you have any questions about the market or just want a second opinion...please get in touch!
Best
http://www.TheSmithsBuyAHouse.com
http://www.PropertiesintheGTA.ca
All the best-
Michael Gruenstein MBA CSC Sales Representative Re/Max Realtron http://www.TheSmithsBuyAHouse.com http://www.Propertiesinthegta.ca Blog:mgruenstein.blogspot.com O:416.782.8882 C:416.271.2066 mgruenstein@trebnet.com
1. If you're wondering what's going on in terms of pricing in GTA...think "big".
Why? Lack of supply and low rates continue to prop up prices. I'd argue were above in many districts where we saw prices in this past hot spring market.
We just witnessed 23 offers in Allenby on a semi this past week. So are their buyers still out there? Indeed. Is their supply? Not enough. Do the math!
This may be the kind of market where you need an agent who is creative and hard working and has established a steady network with fellow agents. They're not competitors of one another. We actually can work quite well together and secure the interests of our 2 parties.
2. As for flat fee sellers leveraging the MLS system---no real concern. This has been around in the US fore many years and less then 3 percent of the entire market went this way. Bottom line is....I'd still trust a dentist over a welder to fix my teeth. Sellers don't have exposure to negotiating homes. And always valuate their homes well above market value
3. I just sold a house that involved using my network. We located a great property that wasn't listed on mls. A truly great way for a buyer to buy and a great way to stand out amongst the other agents. A win/win if you will. So there are still ways to locate homes in a low inventory area, but it takes time and work!
4. Household debt is huge in Canada these days. With these teaser rates, buyers continue to leverage the rates and may be buying more then they should. So, don't "overbuy". Buy but be prudent! But get into the market.
If you have any questions about the market or just want a second opinion...please get in touch!
Best
http://www.TheSmithsBuyAHouse.com
http://www.PropertiesintheGTA.ca
All the best-
Michael Gruenstein MBA CSC Sales Representative Re/Max Realtron http://www.TheSmithsBuyAHouse.com http://www.Propertiesinthegta.ca Blog:mgruenstein.blogspot.com O:416.782.8882 C:416.271.2066 mgruenstein@trebnet.com
Tuesday, October 12, 2010
POST TURKEY DINNER SHOWING
Mental note to myself. Next year don't show properties the day after a turkey dinner. We arrived at a beautiful house to do our showing. The instructions were that the owners of the house would be home and they'd open the door for us. No problem. Always prefer when vendors are our so we can have freedom for open dialogue and run around the place at our pace. But, no worries. The owner, a man in his 40's decided to be a "tour guid". I did at the onset mention that the showings I've done with buyers typically run smoother when the seller makes as though he's not home and let's us do our thing. This guy wouldn't have it. Proud of his upgrades and pie shaped lot and pot lites and new cobblestone yards, he'd captain this visit right to the bitter end.
Okay, off we go. We follow him as though we're in grade school. Our teacher in the lead and we don't break rank or single file. My luck, I'm a foot behind this gentleman who makes mention that he really overdid it between the scotch and turkey the night before. "Never been so full" he whispers, as though we're old friends. A moment later a gastly smell attaches to me. Trying to remain professional, I look at my buyers and it seems they're totally immune to our tour guide's missles. Now it's a matter of holding my breath as long as I could. My crappy lungs are losing this damn battle. I try to make room between us but each step upstairs is a potential land mine for me with this man 2 steps in the lead. 10 minutes into the tour and trying my hardest not to run out of the house, my buyers are now part of the experience. Their more visual then me putting their hands around their necks and making crazy faces.
When the owner showed us the walk out in the basement, it was a mad dash to get outdoors for air. I've never spent more time looking at a non landscaped 25ft bu 110ft backyard in my career. I suggested that we'd walk around to the front and not bother to walk back thru the house.
We left. I caught up with my buyers some hours later and they decided for many reasons not least of which was the awful experience during the showing, to keep looking.
As for myself, I've made it a rule that I will not work the day after Thanksgiving dinner.
http://www.TheSmithsBuyAHouse.com
http://www.PropertiesintheGTA.ca
Okay, off we go. We follow him as though we're in grade school. Our teacher in the lead and we don't break rank or single file. My luck, I'm a foot behind this gentleman who makes mention that he really overdid it between the scotch and turkey the night before. "Never been so full" he whispers, as though we're old friends. A moment later a gastly smell attaches to me. Trying to remain professional, I look at my buyers and it seems they're totally immune to our tour guide's missles. Now it's a matter of holding my breath as long as I could. My crappy lungs are losing this damn battle. I try to make room between us but each step upstairs is a potential land mine for me with this man 2 steps in the lead. 10 minutes into the tour and trying my hardest not to run out of the house, my buyers are now part of the experience. Their more visual then me putting their hands around their necks and making crazy faces.
When the owner showed us the walk out in the basement, it was a mad dash to get outdoors for air. I've never spent more time looking at a non landscaped 25ft bu 110ft backyard in my career. I suggested that we'd walk around to the front and not bother to walk back thru the house.
We left. I caught up with my buyers some hours later and they decided for many reasons not least of which was the awful experience during the showing, to keep looking.
As for myself, I've made it a rule that I will not work the day after Thanksgiving dinner.
http://www.TheSmithsBuyAHouse.com
http://www.PropertiesintheGTA.ca
Tuesday, October 5, 2010
con't from last post...
Here's the state of the market:
1. Listings are not plentiful but depending on area, you can find a solid home
2. Buyer's need to be on top of the inventory as good listings are selling quickly
3. There is talk of further government controls to cool the market
4. In many areas, pricing is feeling on par with March/April 2010
5. Muliple offers are pretty common so know your strategies and do your homework so you're ready, armed and not bumped out
6. Try to get your financing taken care of so that you may proceed w/o a finance clause to strengthen your offer where possible
7.The new rules for homeowners listing their property on MLS and dealing with the cooperating broker direct, may cause some headaches but if the results are anything like what we've seen while this has been taking place in the U.S., an overwhelming number of sellers still put their trust in a brokerage to represent the sale of their biggest assets. Problems in the sale of a house aren't typically in the thousands. THEY ARE MAMMOTH. They can lead to the carrying of 2 homes (if your bank will assist) or the non closure by the buyer of the house you just sold.
8. Because supply isn't abundant in most pockets, be prepared to have a conditional period of no more then 2 business days following acceptance and get your best/biggest deposit to the seller. Seller's are increasingly worrying that the Buyer will walk. It's just the feel out there.
9.Stop waiting for MLS.ca to spit out a listing. Sold another house this week and 5 angry callers working w/o an agent were upset that I sold the house before the 48 hr lag until they got to see it on mls. During that period we had an offer and 15 showings.
10. Don't pay too much attention to the paper. Everything sounds just a little scary right about now. Find an agent who knows what they're doing, let them catch you up to speed; go see homes; learn about values; discuss strategies and try to have fun.
http://www.TheSmithsBuyAHouse.com
http://www.PropertiesintheGTA.ca
1. Listings are not plentiful but depending on area, you can find a solid home
2. Buyer's need to be on top of the inventory as good listings are selling quickly
3. There is talk of further government controls to cool the market
4. In many areas, pricing is feeling on par with March/April 2010
5. Muliple offers are pretty common so know your strategies and do your homework so you're ready, armed and not bumped out
6. Try to get your financing taken care of so that you may proceed w/o a finance clause to strengthen your offer where possible
7.The new rules for homeowners listing their property on MLS and dealing with the cooperating broker direct, may cause some headaches but if the results are anything like what we've seen while this has been taking place in the U.S., an overwhelming number of sellers still put their trust in a brokerage to represent the sale of their biggest assets. Problems in the sale of a house aren't typically in the thousands. THEY ARE MAMMOTH. They can lead to the carrying of 2 homes (if your bank will assist) or the non closure by the buyer of the house you just sold.
8. Because supply isn't abundant in most pockets, be prepared to have a conditional period of no more then 2 business days following acceptance and get your best/biggest deposit to the seller. Seller's are increasingly worrying that the Buyer will walk. It's just the feel out there.
9.Stop waiting for MLS.ca to spit out a listing. Sold another house this week and 5 angry callers working w/o an agent were upset that I sold the house before the 48 hr lag until they got to see it on mls. During that period we had an offer and 15 showings.
10. Don't pay too much attention to the paper. Everything sounds just a little scary right about now. Find an agent who knows what they're doing, let them catch you up to speed; go see homes; learn about values; discuss strategies and try to have fun.
http://www.TheSmithsBuyAHouse.com
http://www.PropertiesintheGTA.ca
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