February 27, 2008
What’s a Property Survey?
And why as a buyer of a property you should ask for a copy
A property survey shows the boundaries of the property indicating the lot size, and includes a written description of the property. Property surveys, which resemble a map, are completed during the original construction of a house and are provided to the buyer at that time. However, if the house you are buying is older you may find that the original survey has long been lost.
Surveys also indicate right-of-ways and easements. Right-of-ways detail the right of others to access certain areas of the property (for example, it may allow access to hydro or telephone companies for servicing or a shared lane or driveway). Easements are a right that’s assigned to the property and cannot be removed very easily, if at all. Surveys may also indicate issues such as a fence located outside the property line or an overhanging roof from a detached garage and in these instances, the buyer can ask the seller to correct the problem before closing.
If you’re thinking of buying a home, you may be wondering if you need an up-to-date property survey. It’s definitely in your best interests to have one as your lender may insist on one before approval of your financing, however, Title Insurance may suffice. Your lawyer will most likely suggest that you purchase Title Insurance anyway, and it may soon be mandatory for all real estate property purchases. If you are buying a condo you won’t need a survey, as the condo corporation will own the land, not you. A simple way to find out if it’s a requirement is to get pre-approved for a mortgage before you buy.
Over time, you may want to add a fence, a pool, a deck or even an extension and you will need a survey when you make these improvements. Many times such changes have occurred since the last survey making it out of date and therefore it has little value in the real estate transaction, but could still be suffice for your own needs.
Not every transaction requires a new survey, and Title Insurance may satisfy your lender and your lawyer. Ask your real estate lawyer to verify this before you purchase the property. It can also depend on when the last survey was completed and what physical changes have taken place since the survey was done. If a new survey is needed, you need to determine who will pay for it in your Agreement of Purchase and Sale.
February 26, 2008
Understanding Agency Relationships
Concerning Real Estate Clients and Customers
You’d probably wonder what agency relationships might have to do with you, regarding buying or selling real estate. Most people are unaware of the importance of agency relationships, unless they’ve had a problem and have become educated in the importance of knowing what side your agent is on. Yours or theirs?
In a traditional real estate setting here in Ontario most agents are representing the seller and not the buyer. That’s right! When you call a traditional real estate office the agent you are talking to is working for the seller.
Let me take a moment to explain of differences in agency relationships and how they may affect you in a real estate transaction.
In a traditional setting, an agent represents the seller or is a sub agent for the seller. In this setting, when a home is listed by a real estate company, that company automatically represents that seller as outlined in the listing agreement. That brokerage company and it’s brokers have the fiduciary responsibility to represent the best interests of that seller. However, a sub agent to a seller is an agent who is representing a seller that has their real estate listed by another real estate company. These agents have the same fiduciary responsibility to a seller, that the listing company does.
When a buyer is working with a sellers agent, it is important to keep personal information that they’d like to keep confidential to themselves. For instance, maybe a buyer wouldn’t want to share the total amount they are approved for at the bank, or what their top line price is for a home they are interested in purchasing. If they disclose this information to a “Sellers Agent” that agent has the fiduciary responsibility to share that type of information with that seller. A sellers agent is limited to what services they can provide to a buyer.
So, how does a buyer protect themselves? Hire a Buyers Agent.
A buyers agent has the fiduciary responsibility to represent the buyer in a real estate transaction. A buyer will then enter into a representation agreement with that Buyer Agent. This almost like listing a person, to represent them, instead of a property. The buyer agrees that they will work with that buyers agent, as outlined in their representation agreement. This agreement can last from a few days to several months, depending on what the buyer and agent agree on. The agent and client will also agree on the geographic areas that this agreement includes. For instance, an agent in Oshawa many not want to represent the buyer in a transaction in New Market. That way, a buyer could do other real estate transactions through other agencies in parts of the GTA that are not included in the agreement.
The advantages of using a buyers agent include:
The best way to find out how you will be represented, is to ask the agent you are going to be working to define their office policies regarding agency relationships.
February 24, 2008
The future of real estate search?
Rotten Neighbor: it might just be the next best thing to the MLS when selecting a home to buy … or not.
What is Rotten Neighbor? According to their press release: Rotten Neighbor is the first real estate search engine of its kind allowing you to rate and review good and bad neighbours before and after you move so you can make a smart real estate decision. How? By user contributed information on neighbours and neighbourhoods in Toronto as well as helping you understand Toronto neighbourhood trends. No matter if you are looking for townhouses, condominiums, single-family homes, or apartments Rotten Neighbor can help you find your dream neighborhood. See local neighborhood trends in Toronto and compare your neighbours to other neighbours in Toronto. Join the Rotten Neighbor community to get in touch with your Toronto neighbours and discover the best neighborhoods for you.
February 21, 2008
Toronto Real Estate Board reports:
Sales near 3,000 mark at mid-month
Resale home transactions in the Greater Toronto Area declined in the first two weeks of February, Toronto Real Estate Board President Maureen O’Neill announced today. The first half of the month yielded 2,775 transactions, down 14 per cent from the 3,240 sales recorded in the same timeframe last year. The moderation in sales was more pronounced within the City of Toronto–down 18 per cent to 1,066 from last February’s 1,308—than in the 905 suburbs, which saw transactions off 11 per cent.
“It’s important to recognize that the mid-month report provides an indication of market conditions based on a very brief period,” said Ms. O’Neill. “However, we believe the harsh winter weather we’ve experienced in the early part of the month has had a negative impact on both sales and inventory levels. If you can’t get buyers out to your open house, then you are less inclined to list. And fewer listings means less appealing product for the potential home-buyer. It’s a compound effect.”
Although sales eased, several positive factors were also noted. At $385,735, the average price in the GTA rose seven per cent compared to $358,533 recorded in mid-February 2007. Within the City of Toronto, the average rose 11 per cent to $434,657, although pockets within the East end (Agincourt, for example) rose at the more affordable pace of around five per cent. As well, properties are remaining on the market fewer days.
The average number of days on market is currently 31 versus 35 days at the same time last year. Furthermore, a few neighborhoods both within and outside of the 416 area code saw increased sales over the first half of February, 2007.
In Ajax (E14) sales were up 11 per cent compared to mid-February 2007, based mainly on an increase in detached home sales. In the West region, the W3 (York South) district saw a 41 per cent increase in transactions, driven by strong sales of semi-detached homes. Central Richmond Hill (N04) also experienced a notable increase in sales compared to the same timeframe last year. Transactions were up 21 per cent, primarily due to an increase in attached row sales.
“We are optimistic that we will see a strong spring market because the economic fundamentals remain in place,” said Ms. O’Neill. “Prices are still particularly affordable in Toronto’s East end.”
February 20, 2008
House Hunting in Toronto
Finding the home that fits
With so many choices and variables, how do you find the perfect fit in a home? Before you start riding in cars with realtors, it’s a good idea to narrow down the field by looking at what would fit you best.
Here’s where to look:
Look Inside
What do you already own that your new home would need to accommodate? If your dining suite is one that you cherish, use often and happens to be huge, then add “large dining room” to your Must Have list. Carry this logic through your space and you should come to some conclusions about what is essential in a new home. While you’re at it, take a look at your personal style; it can also give you valuable clues as to what you really want. For example, if you’re surrounded by lace, chintz and silver you might be more drawn to a Victorian style home. If your style tends more to clean lines and a modern look, then loft-like spaces or open concept homes will hold more appeal.
Look Outside
What catches your attention? Is it a brick exterior or cedar shingles that make a house feel like home to you? Consider the different styles of houses that you like, and see if there are any common elements among them. Another place to look is at the style and size of any new items you plan to acquire. Taking an outside inventory of what appeals to you can help narrow down your search.
Look at Your Requirements
It’s helpful to take a head count and look at what features are vital to each member of your family. How many of you are going to live there, and are any more expected shortly? How many of you need home offices or parking spaces or playgrounds or workshops? This will give you an idea of the size and number of rooms you require, as well as clues to locations or types of housing. Make sure you include pets and consider what’s best for them. This may move a fenced yard to the top of your list.
Taking stock of any special needs or limitations you have will also help you clarify your choices. If climbing stairs is not an option, a single storey dwelling is likely to be the best fit. Anyone who has sworn off snow shoveling or leaf raking (or simply doesn’t have the time for it) may find that a condominium set-up, where someone else does the big chores, is what they’re looking for. If you work a night shift, and need to sleep during the day, make sure your bedroom window isn’t facing the rising sun (or in close proximity to a schoolyard or playground). Finally, if you’re not the handyman type and don’t have a large budget or the patience for renovations, you may want to skip past fixer-uppers, no matter how tempting a deal they are.
Look at Your Lifestyle
Look at your lifestyle to gain insight to your best locations. If you’re planning to stay awhile, and are also planning on children (or already have them), then you’ll want to find a neighbourhood that’s kid friendly and has great schools. Another consideration should be your work commute. Will your new location support you in getting to work on time, in the usual way? Make sure it has what you need, whether that’s access to public transportation or parking spots. Does your usual routine depend on being close to shops or nightlife, or do you prefer quieter surroundings?
Your lifestyle can also determine the best layout for your home. Look at how you spend your time, how you relax and interact. You may find that the dining room is rarely used, while the family room is definitely the place to be. Similarly, look at how you entertain. Do you have overnight guests often enough that a guest room is a necessity? If your idea of a fun evening is cooking with your guests, then an open kitchen with lots of gallery seating may top your list. People who do most of their entertaining and socializing in public spaces may find a galley kitchen with an eating bar better suited to their needs.
All in all, if you take the time to consider what’s really important to you, you should be able to define the type, size, attributes and location of houses that you want to look at. The results should be a lot less time looking, and a better chance of finding the house that is the right fit for you. Happy Hunting!