Not many home Sellers understand the costs a Real Estate Agent incurs before even getting paid. Real Estate is a unique industry in that an agent does not get paid until closing. When they list a home for sale they have items they pay for on behalf of their sellers that they don’t get paid for unless the homes sells and closes. Same with when they work with buyers.

Not all agents provide the same services, so make sure to ask your agent what services they provide for their fee.

So what are some of the services real estate agents provide with the risk of not getting paid?

For Sellers:

• Highest Market Analysis
• Home Staging Consultation
• Virtual Tours and Professional Photography
• Marketing with signs, internet exposure, and social media
• Open Houses
• Follow-up on showings and open houses
• Marketing directly to other Realtors
• Conducting offer presentations and negotiating on your behalf

For Buyers:

• Daily e-mail service with new listings
• Networking with other agents to find homes that meet your needs
• Guiding you through the buyer process
• Arranging for you to get a pre-approval from a Mortgage Broker
• Arranging appointments to see homes that are of interest with you
• Negotiating the best deal on your behalf
• Being there to advise you and answer your questions

And that is just the beginning.  I am there to answer any questions between firming up a deal and closing. So be careful to make sure you are getting the best service possible.

If you a Real Estate Buyer in Toronto and you have been sitting on the fence about making a Real Estate purchase don’t hesitate anymore. Yes, it is a big decision but Royal Bank, TD Canada Trust, and Laurentian Bank all bumped up their posted rates to 5.85% yesterday. The other banks and financial institutions will likely follow suit very soon.

This increase will cost you an extra $66 a month on a $200,000 mortgage.

Another factor that will increase your cost of entry into real estate is the implementation of HST on July 1, 2010. This will affect such things as moving costs, lawyers fees and more.

So don’t delay, make your move today!

On February 16, 2010, Minister of Finance Jim Flaherty introduced new mortgage rules designed to make it a harder for buyers to qualify for high-ratio mortgages and to discourage speculators. This protectionist measure is targeted at over-extended consumers.

The first rule is that all borrowers must meet the standards for a five-year fixed-rate mortgage, even if they are taking out a mortgage with a lower interest rate and a shorter term. This rule is designed to make sure buyers will be able to pay if and when interest rates rise.

If you were to buy the average price home $337,000 you will now need $9,200 more in annual income to qualify.

Rule # 2 restricts how much of your home you can refinance. Now you can only refinance 90% of your home as opposed to the previous 95%. Often homeowners will keep using the equity they have in their home to finance their lifestyle. A home is a savings vehicle where you build equity. If you still need to dip into that equity it may be time to reevaluate your finances to see where you can be cutting back.

For investors or non-owner-occupied properties you now need to have a minimum 20% down payment.

The effective date of these new rules is April 19th. Any agreements that are finalized before April 19 will be based on the old rules. Moreover, any agreements that close after April 19 but were signed before this date will be allowed to go through under the old rules. Any new deals after April 19 will be subject to the new rules.

When considering your new home, you have to set a budget, decide how many bedrooms and bathrooms you need, and pick a neighbourhood, but you also need to consider what your home has to have to meet your requirements.

I know on my wishlist I had main floor laundry and a direct garage access. Both of which I got and love.  I wish the laundry room was bigger and had a window so I could at least get a view of outside while folding my laundry, but alas, not to be. At least not in this house.

So what is on you wishlist?

• A “green” home?
• A big eat-in kitchen?
• Open concept living space?
• Master ensuite? Do you want it to resemble a spa?
• Do you work from home and need a home office?
• Finished basement?
• Outdoor living space?
• A hot tub?
• Etc.

These are just a few ideas. It is really important to consider your lifestyle and what you need in your home to make ti work for you.

The Red Hot Condos will be available for occupancy in the Summer of 2011. Being built by Camrost Feldcorp in Don Mills, this condominium project includes 1 bedroom, 1 bedroom + den and 2 bedroom units ranging in price from $172,900 to $285,900.  They are also offering furniture packages ranging from $7,000 to $13,500. If you are interested in learning more about this project, give me a call.

Built right across from High Park and only 108 suites, take advantage of this great neighbourhood. Great shops, restaurants and so much to do. The suites will range from 1 bedroom up to 2 bedroom + den. This building also has lots of terraces and balconies. Floor to ceiling windows make for some great views of the park and street. If you interested in learning more about this project, give me a call.

The Home Buyers’ Plan (HBP) is a program that allows you to withdraw up to $25,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a relative with a disability.

You have to be a first time homebuyer, meaning you could not have occupied any home as the principal place of resience.

If you are planning on making a contribution to your RRSP in 2009 you have until the end of February to do so but keep in mind you must have the funds in your RRSP for at least 89 days before you can withdraw it again to use for the HBP.

To participate fill in this Form and submit it.

Bright 4 Bedroom Home Built By Townwood Homes In Bayview North. Open Concept With Clear Storey Foyer, Upgraded Oak Staircase. High Ceilings And Crown Mouldings Throughout Main Floor. Separate Living Room And Dining Room. Eat-In Kitchen With Centre Island And Lots Of Cabinets. Main Floor Laundry With Direct Garage Access. His/Hers Closets In Master Bedroom, Double Sinks And Large Soaker Tub. Large Fenced Yard And Porch On Front Of House For Outdoor Living. Includes Bright 4 Bedroom Home Built By Townwood Homes In Bayview North. Open Concept With Clear Storey Foyer, Upgraded Oak Staircase. High Ceilings And Crown Mouldings Throughout Main Floor. Separate Living Room And Dining Room. Eat-In Kitchen With Centre Island And Lots Of Cabinets. Main Floor Laundry With Direct Garage Access. Extras: His/Hers Closets In Master Bedroom, Double Sinks And Large Soaker Tub. Large Fenced Yard And Porch On Front Of House For Outdoor Living. Includes

There is Land Transfer Tax for Ontario and if you live in the city of Toronto there is an additional tax there as well. There is a great LTT calculator here http://www.torontorealestateboard.com/LTT_splash/ltt_calculator.htm.

In Ontario:

The tax is calculated as follows:

* 0.5% of the value of consideration for the transfer up to and including $55,000,

* 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and

* 1.5% of the value of the consideration which exceeds $250,000, and

* 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

First-time homebuyers may be entitled to a refund of Ontario’s land transfer tax, up to a maximum of $2,000. This refund is usually claimed at the time of registration.

The Toronto Land Tranfer Tax is calculated as follows:

Price of the Home

Up to and including $55,000.00      0.5%  plus

$55,000.01 to $400,000.00             1.0%  plus

Over $400,000.00                                  2.0%

FOR EXAMPLE: A home with a consideration value of $500,000.01 (excluding GST):

0 to $55,000.00                                   55,000.00 x 0.005 = $275.00

$55,000.01 to $400,000.00      $344,999.99 x 0.01= $3,450.00

$400,000.01 to $500,000.00     $99,999.99 x 0.02= $2,000.00

Total MLTT= $5,725.00

If you are a first-time purchaser of a newly constructed or re-sale residential property. The rebate for first-time home purchasers is up to a maximum of $3,725.00.

Your lawyer applies for the credits for you when registering your home.