January real estate sales are up a whopping 87% over a year earlier.  According to the Toronto Real Estate board there were 4986 existing home sales in January, compared to 2670 a year earlier.  The average price of a home in Toronto was $409,058 up a whopping 19 per cent compared with $343,632 in the same month last year.

While these statistics are impressive, we should not loose site of the fact that January 2009 was one of the weekest months in over a decade.  We anticipate that year-over-year levels should tail-off to more seasonally adjusted percentages as 2010 unfolds.

HST Transition Rules

October 21, 2009 — The provincial government has provided rules/guidance on how it will transition to the implementation of the proposed Harmonized Sales Tax.Background

• The HST is NOT YET IN EFFECT. The HST will come into effect beginning on July 1, 2010; however, note transition rules below.
• HST will not apply on the purchase price of re-sale homes.
• HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
• HST will apply to the purchase price of newly constructed homes. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.
• Click here for more background information on how the HST will affect REALTORS®.
• Click here for some common questions and answers.

Transitional Rules for New Housing

• Generally, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
• The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010.

Additional Transitional Rules

• Where services straddle the HST implementation date of July 1, 2010, the tax charged for the service may have to be split between the pre-July 2010 and post-June 2010 periods. However, the HST will generally not apply to a service if all or substantially all (90% or more) of the service is performed before July 2010.
• Four key timelines are important (see below). All are based on the earlier of the time the consideration is either due (In general, an amount is due on the date of the invoice or the day required to be paid pursuant to a written agreement), or is paid without having become due. If consideration is due or paid,

•  
  • Before October 15, 2009, HST will generally not apply (however, see above transition rules for new housing).
  • From October 15, 2009 to April 30, 2010, certain business that are not entitled to recover all of their GST/HST paid as input tax credit may be required to self-assess the provincial component of the HST with respect to goods or services supplied after June 30, 2010.
  • From May 1, 2010 to June 30, 2010, HST will generally apply for services supplied after June 30, 2010.
  • After June 30, 2010, HST will generally apply. An exception to this rule would be where ownership of the property is transferred before July 2010 or the invoice relates to services provided before July 2010.

• With regard to the lease or license of goods, including non-residential real property, HST will generally apply to lease intervals or payment periods on or after July 1, 2010 and the general rules noted above will apply. However, where a lease interval begins before July 2010 and ends before July 31, 2010, it is not subject to HST.
• With regard to the sale of non-residential property, HST is due where both possession and ownership of non-residential property occurs on or after July 1, 2010.

Source:  Newstand

When dealing with condominium investment properties that are tenanted, you must ensure that you check the agreement to lease.  There are important laws that govern the buying or selling of a condominium when tenants currently occupy the unit.  If a single tenant has occupied the condominium on or before June 17, 1998, the condominium owner cannot evict the tenant and sell the unit!

The property owner can make an informal request for the tenant to leave the property.  Such a request does not have to be adhered to.  It should be noted that there are significant fines for any Landlord that is convicted of illegally locking a tenant out of their rental condominium.  The fines could be as high as $25,000 for an individual and $100,000 for a corporation.

As realtors, we can be held liable by the tenant and the Ontario government for misinforming our Landlord client.

Currently 5 power of sale listings in Vaughan.

All detached homes ranging in price from $379,000 to $714,000.

Please contact us for further details before they are gone!!

To determine an asking price based on one’s needs or emotion, and not market value is a significant and probably, the most common flaw.  Many sellers base their pricing on how much they paid for their home. If your home is not priced competitively, home buyers will compare larger or better finished homes in the same price range.  This will consequently help their homes sell quicker and unfortunately, increase your time to sell.  By listing the home too high, buyers actively searching for a home within the price range you should be in, will miss out on looking at your home. When you have satisfied yourself with the inactivity and finally reduce the price, you have now stigmatized your property and prejudiced a more negotiable sale. 

Buyers may be wary because they suspect other reasons the house has remained unsold so long.  Rather than getting a decent offer, you are attracting “low-ballers”, the buyers who are looking for the “best deal”.  They start playing with low offers to determine how desperate you are to sell.  We always tell our clients if you are indeed underpriced, then active buyers recognize the so called “good deal”.  You should get multiple offers in the first week of being on the market.  This can in turn, bring up the offered amount to the “market price” or bring it above market.

Common mistakes when selling your home.

1.        Many homeowners list with the agent who tells them the highest price, and not the one who provides the best experience.  More experience could mean a higher price at the negotiating table, selling in less time, and with less hassle along the way.  Use an experienced, and local realtor.  This goes back to pricing the home.  An active realtor will know his product and will give you a more accurate estimate of what your home is worth.  Experienced agents also know exactly what the current pool of buyers are looking for in relation to particular styles and price ranges of properties.  A skilled agent can recommend changes that will enhance the salability of your home, thus increasing the price and/or decreasing the length of time before a sale.

2.       Most of the time, you have to bring your home to a buyer.  Effective marketing strategies will help ensure that your property receives maximum exposure to attract a ready, willing and able buyer in the shortest period of time.  Ask your realtor for a list of marketing tools he/she will use to market your home, and have them provide a time-line.  Be sure to ask about the home being advertised on the Internet other than Toronto MLS or MLS.ca.

3.       Do not take for granted the curb appeal of your home!  When preparing your home for sale, remember the importance of first impressions.  If the exterior is a reflection of the interior, a potential buyer may not even want to go inside.  It is estimated that more than 50% of homes are already sold in a buyers’ mind before stepping out of their car.  With that in mind, be sure to stand outside with someone you trust, we hope your realtor, and ask them what should be done to the curb appeal to give it a “fresh look”.  This could make a huge difference in your final sale price.  Sellers may spend thousands of dollars doing the wrong upgrades to their home prior to selling, expecting to recoup this cost.  If you are thinking of selling ask your realtor which upgrades are cost effective.

4.       Be upfront and disclose any problems with the property.  The problems are going to be discovered anyway.  These problems can be factored into the sale price.  Let a buyer decide prior to negotiating if he would like to proceed with the purchase of the home.  Do not have him walk away later with doubts about the property.

5.       To review:  What steps you can take for a quick sale of your home:  On the exterior:

a)      Sweep the walkway of leaves, clear the snow and ice;

b)      Remove newspapers, bikes and toys;

c)       Park extra cars away from the property;

d)      Trim back the shrubs;

e)      Apply fresh paint;

f)       Clean windows and window coverings throughout;

g)      Keep plumbing and appliances in good working order;

h)      Maintain all sealant in good condition (window, tub, shower, sink, etc.);

i)        Make sure roof and gutters are clean and in good condition;

j)        Mow the lawn frequently and plant flowers;

k)      Keep pet areas clean;

On the interior:

a)      The kitchen and bathroom should shine;

b)      Vacuum carpets, try to keep them clean;

c)       Place fresh flowers in the main floor rooms;

d)      Put dishes away, unless setting a formal display for decoration (kitchen/dining area);

e)      Make all beds and put laundry away;

f)       Open the drapes and turn on the lights for a brighter feel;

g)      Straighten out your closets;

h)      Put toys away;

i)        Turn off the television;

j)        Play soft music on the radio/stereo instead;

k)      Keep pets out of the way and pet areas clean and odour-free;

l)        Secure jewellery, cash, prescription medication and other valuables;

m)    Enhance the spaciousness of each room. 

6.       You do not need to be in the home to explain things to a prospective buyer.  Let the realtor do his job.  Most buyers feel more comfortable if they can speak freely with the real estate professional without the owners being present.  If someone would like to see your property without a representative, you should refer them to your agent for an appointment.  Your safety and privacy should be respected.

7.        Always take the first offer seriously.  The first offer is usually the best offer.  Many sellers believe that the first offer received will be one of many yet to come, hoping to hold out for a higher price, especially if the offer comes in soon after the home is listed.  Often the first offer ends up being the best buyer, and many sellers have had to accept far less money than the initial offer much later on in the selling process.  Homes are most saleable early in the marketing period.The contract you sign to sell your property is a complex and legally-binding document.  An improperly written contract can allow the purchaser to void the sale, or cost you thousands of unnecessary dollars. Have your realtor fully explain the contract or have your lawyer review it before acceptance.

Source: Teresa Chiappetta

In order to find an ideal neighbourhood for a buyer, a realtor needs to assess the buyer’s overall situation.  Invest the time to ask the buyer a number of questions prior to taking them out to view properties.  Some of the questions the realtor needs answers to are listed below:

1.       Has the buyer been pre-qualified for a loan?  Determining the buyer’s financial position and what they can afford will dictate where the buyer can live.

2.       What type of home is the buyer looking for?  Detached, Semi-detached, town-home, or condominium.

3.       Does the buyer have any children?  If so, has the buyer identified specific schools that may be of interest?

4.       Where does the buyer work?  Place of employment often will dictate where a buyer moves.  Close proximity to highways and public transit may be important factors in determining a neighbourhood.  Commute time to and from work may be an important factor in choosing a neighbourhood.

5.       What sort of amenities does the buyer require?  The buyer’s lifestyle may dictate where they want to live.  If the buyer is physically active, parks, community centres and other recreational facilities may dictate where the buyer relocates.

6.       Where does the buyer’s family live?  Buyer’s with young children often seek the support and refuge of their family members.  Close proximity to immediate family may also be a determining factor for choosing a neighbourhood.

The bottom line is the realtor needs to ask as many probing questions as possible prior to showing a buyer homes in order to determine their underlying reason for the move!

We would like to offer our website visitors the opportunity to leverage our 19 years of real estate experience by using our blog as a forum to ask questions about real estate.  Please feel free to email us any questions you may have and we will make an effort to answer them as quickly as possible.  All of the questions and our answers will be posted on our blog.  We look forward to helping you navigate the real estate mine field!

I’ve just sold a Resale - single family property at 59 Fairmont Avenue in Vaughan. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

1.  Set your price competitively.

2.  Offer incentives - If your carpet is old or outdated, offer a carpet allowance up front. If a potential buyer knows this right off the bat, they might be able to overlook the unattractive carpet - probably the first thing they’ll notice when they walk in the door. Or, offer to include your appliances with the home. If you’re moving into a new home, appliances may already be included, or you may be ready to upgrade. This type of offer will be especially enticing to first-time buyers who are putting most - if not all - of their available cash into their down payment and closing costs.

3.  Offer to pay the nonrecurring closing costs - the loan appraisal, loan points, credit report, title insurance, and property inspections. This can be a major motivation to cash-strapped buyers; these costs usually run about 3 to 5 percent of the cost of the house. Depending on your market and budget situations, you may offer to pay part or all of the costs.

4.  Get a PRE-Inspection report -  Get a professional home inspection before you put your house on the market. Nothing will kill your deal quicker than a buyer’s inspector finding a major problem during the inspection process. Even if you reach agreement with the buyer on who will pay how much of the repair work - or if you agree to pay all - the fact that the buyer has to wait for the repairs could put a damper on their plans, and even trigger them to break the deal, especially if there are plenty of other comparable houses on the market.

5.  Be flexible - When you get an offer and the buyer wants to move in sooner than you’ll be ready, make plans to stay in an apartment or with relatives until your new place is ready. A month or two of inconvenience will surely be worth it down the road.

6.  LANDSCAPE - Create good curb appeal. A home shopper’s first impression is everything. The moment they pull up to the curb, they’ll make an instant judgment. You’ll want to be sure it’s positive. You can begin by making sure leaves are raked up, and your shrubs and bushes are pruned. Make sure bikes and toys are out of sight.

7.  PAINT -  Focus on your walls. If your walls are dirty, it will be an automatic turnoff to potential buyers. Think about touching up the paint on your walls before you put your home on the market, keeping the colors neutral and light. Save your favorite reds and greens for your next place, where you’ll be staying put for awhile.

8.  DE-Clutter - Make sure your home shows well. Get rid of all the clutter. Keep the house clean and simple. If you have a lot of knickknacks, keep them out of sight. Make sure there are no lingering pet or smoke odors. Set out some fresh flowers. Turn on some light music.

9.  LET THERE BE LIGHT - Let the light in. Open blinds and curtains so plenty of light illuminates the home’s interior.

10.  BE PATIENT! Don’t be too hasty in reducing your asking price. But be ready to when the time comes. You’ll want to talk to your agent about how long homes are staying on the market in your neighborhood. The time to think about reducing your price is once you pass that mark.

Courtesy of Realty Times - Michele Dawson