Most people think a home inspection is something that happens somewhere between making an offer and before closing on a home. But for a number of reasons, more homeowners are choosing to have their own home inspected before putting it on the market.
The reason is simple: uncovering problems early on enables you to fix them, often making it possible to add value to your sale price. An inspection is designed to reveal any potential problems a house may have—and that’s true for both buyers and sellers. Sellers may benefit from gaining this kind of detailed information about their home, so that they can choose to handle problems long before the negotiation process is underway.
Many sellers also report that their buyers feel more comfortable when the information from a pre-sale inspection is shared early on, even if the buyers choose to have their own home inspection as well.
In short, a pre-sale inspection can reduce the chance of a surprise and help speed the closing process, which would otherwise have been delayed by scheduling repairs and having the buyers confirm they were completed properly. Because for buyers, making an offer contingent upon a home inspection is about saving expenses and trouble—not to mention providing confidence in what may well be the biggest investment they ever make.
Even if you’re not a buyer making an offer, or a seller thinking of listing a home in the next few months, a home inspection can provide homeowners with a thorough to-do list for maintenance—or even a little peace of mind. If you have any questions about inspections, please don’t hesitate to call or email.
TORONTO, JULY 6, 2010 ‐ Greater Toronto REALTORS® reported 8,442 sales through the Multiple Listing Service® (MLS®) in June.
This represented a 23 per cent decrease compared to the record 10,955 sales reported in June 2009. Sales for the second quarter of 2010 amounted to 28,810 – up one percent annually. Year-to-date sales through June were up 23 percent to 50,455 compared to the first six months of 2009.
“We experienced a record number of existing home sales during the first half of 2010, but these sales were weighted more towards the beginning of the year,” said newly elected Toronto Real Estate Board President Bill Johnston. “The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates.”
The average price for June transactions was $435,034 – up eight per cent compared to the average of $403,972 recorded for June 2009.
“With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The annual rate of average price growth in the second half of 2010 will be in the single digits.”
Well, the kids are back at school and it feels like the hazy days of August. I am finding it hard to get back into the swing of things.
In recent weeks, I have been so busy with Toronto home buyers. The only challenge I have been finding is with inventory. There is nothing out there to show. Listings are down over 37%. Often I will have a buyer send me a list of homes they wish to see and their schedule. By the time we go to see the homes they are either sold or taking offers that evening. It is crazy out there and buyers really need to be prepared to put in an offer. This includes doing a home inspection and making sure they have a pre-approval from a mortgage broker. Rates are still incredibly low. As a Sutton Agent I can offer you the lower rate in Canada if you buy a home with me.
If you are thinking of selling your Toronto home as Nike would say “just do it!”. The market is hot and you may even end up getting more than your list price depending on a number of factors including condition of your home and competition in your neighbourhood.
Happy Home Shopping Toronto and speak to you soon.
Moving can be a very chaotic and expensive task, one that needs to be accomplished very carefully. A move carried out in haste can bring about several unnecessary problems. Almost everyone looks for cheap movers. After all, most of us want to save on out of pocket expenses but there are several disadvantages of selecting cheap movers. There are professional moving companies, who offer competitive rates that are easily affordable by everyone. However, there are certain techniques or methods of preparation that can also help you minimize your expenses.
When planning your moving budget, it is very important to keep a check on the outflow of cash. This will make you better prepared to understand the unnecessary expenses. Create a budget template in Excel or Microsoft Word—this will make your calculations easier.
Decide if you will hire a professional moving company or you will do it yourself. If you are hiring a mover, collect quotes from at least three different professional moving companies and include the highest quote in your budget.
Check all the items that you are moving. This will help you evaluate if you need more insurance because the default insurance offered by movers might not be sufficient for you. Along with added insurance, find out if you require extra services.
Because of rising fuel costs and a shortage of drivers, the cost of a full service mover has risen in the past few years. Anything you can do yourself—even if seemingly small—will help cut your moving bill and give you extra money to spend on other relocation costs (like the pizza and beer for after your move).
1. Reduce your load. Get rid of household items that you no longer need. Hold a garage sale and leave books with friends, the local library or sell them to a used bookstore. Anything you can’t sell, give to a local charity. Weight equals money. The less weight, the less money. It’s that simple.
2. Pack it yourself. Packing services performed by the mover are expensive and could amount to 25% of the moving cost. Even if you don’t want to pack it all yourself, you can always do a partial pack, and have the movers handle the rest. For example, items that are nonbreakable such as linens and bedding can be packed easily without the risk of damage. Every box you pack yourself is money in your pocket.
3. Save on packing. Luggage and carrying bags are perfect for packing sheets, towels and clothing. Also, the bottoms of wardrobe boxes are great for bulky, lightweight items. Be wary of packing tips that might save you money initially but won’t protect your stuff, for example, using newspaper instead of bubble wrap. Sure, it might save a few bucks, but in the end, is breaking something worth it?
4. Drive your own moving truck
Using a full service moving company is extremely expensive. You can rent your own truck and hire movers to help load up and unload.
5. Recruit help from friends or family
If you have friends or family in the area, getting them to help you load up and/or unload is a blessing, because it saves time and money. If you’re going to recruit help, make it a fun event. Order some food, and make it a moving party.
6. Avoid the busy season. If you are using a full service moving company, avoid June, July, and August as these are the most expensive months to move because of demand for moving services. Also, try to plan your move during the middle of the month—rates are higher at the beginning and the end because of the large number of apartment leases with month-end dates. If you can be flexible with your move-in times, you can also save money because the moving company can combine shipments.
7. Get organized. Time is Money. Color-code boxes according to the room they belong in so they all end up in the same place, saving time for both you and your mover.
8. Avoid storage costs by moving into your new property immediately and make sure that you have payment ready for when the truck arrives. Any delay could result in storage-in-transit fees if your things have to be stored until they can be unloaded and after the move is paid in full.
9. Make sure you are insured. Your existing homeowner’s insurance policy might cover your move so you don’t have to buy additional moving protection.
10. Your move may be tax-deductible. Keep all receipts and visit the Canada Revenue Agency’s website for specific details about which moving expenses you can claim, or consult a professional accountant to maximize your tax return.
* 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.
Your credit score is used by most companies to see if you are a good credit risk or not. A credit score of over 680 is considered excellent.
What Can You Do to Improve Your Score?
1. Order a copy of your credit report from www.equifax.com or www.transunion.com to review it and make sure there are no errors.
2. Pay your bills on time.
3. If your credit history is questionable, open a few new accounts and use them responsibly.
4. Don’t open accounts and not use them. Having 6 or 7 of the same type of credit does not work in your favour.
5. Keep your balances low relative to your amount of credit available.
6. Pay off credit card debts!
What Does This Mean to Home Buyer’s?
The better your credit score the higher you buying power (income dependent as well). You will also qualify for the best mortgage products at the best rates.
To see what your credit score is and how much of a home you can afford, make sure to talk to your Real Estate Agent and Mortgage Broker before shopping for your Toronto Home.
FINANCIAL PRE-QUALIFICATION:
Speak with your Mortgage Broker or Bank to answer any of your questions, to feel
completely comfortable with the price to pay for your home. You’ll need a T4 & letter
from your employer verifying your income. (I can suggest a number of Mortgage Brokers or
Banks if you haven’t already built a relationship with one as yet.)
2.
REVIEW OF THE STANDARD COSTS:
a)
Provincial Land Transfer Tax :
First $55,000 X .005 = $275.00
$55,000 to 250,000 X .01 = $1,950.00
$250,000 to 400,000 X .015 = $2,250.00
$400,000+ X .02 = $_________
b)
Municipal Land Transfer Tax:
0.5% of the amount of the Purchase Price up to and including
$55,000.00 plus
1% of the amount of the Purchase Price between $55,000.00 and
$400,000.00 plus
2% of the Purchase Price above $400,000.00
c)
Lawyer: Allow +/- $1000.00 (maybe less)
d)
Moving Costs
e)
Home Inspections: General Home $350.00 and up
(depending on the size of home and Sale Price). Termite inspection: allow $200. – $300.
f)
Survey +/- $900.00 – Call me about Title
Insurance $300.00 and up that will eliminate the need for a survey.
3.
THE AGREEMENT OF PURCHASE &
SALE:
Deposit: 5 – 10% of Purchase Price to accompany the Offer.
Conditions: Finance, Home Inspection, Sale of the Purchaser’s
Property.
Irrevocable Date: the date and time before which the offer cannot be
withdrawn
Closing Date: the date that the property changes hands
Requisition Date: the date allowed for title search, usually 2 weeks
before closing
Commonly Used Clauses
Purchase “Agreement of Purchase and Sale” forms
For example: Name, Property address, Legal description, Deposit,
Your choice of Clauses, Chattels, Exclusions, etc.
CASH OFFER
PURCHASER AGREES TO pay the balance of the purchase price in cash or by certified cheque
to the Vendor on closing, subject to the usual adjustments.
CONDITIONAL UPON ARRANGING SATISFACTORY FINANCING
THIS OFFER IS CONDITIONAL upon the Purchaser arranging satisfactory financing on or before
______, otherwise this Offer becomes null and void and the deposit money shall be returned
to the Purchaser in full without interest. The Purchaser reserves the right to waive this
condition at his sole option within the specified time period. The said proceeds for
financing shall be paid to the Vendor on closing as part of the purchase price.
CONDITIONAL UPON QUALIFIED INSPECTION
THIS OFFER IS CONDITIONAL for a period of _____ days from the date of acceptance by the
Vendor upon the Purchaser having the subject property inspected by a qualified home
inspector and finding said inspection satisfactory to him, failing which, this Offer shall
become null and void and the Purchaser’s deposit shall be returned in full without
interest. The Purchaser reserves the right to waive this condition at his sole option
within the specified time period.
If you delve into the 10,955 sales in the month of June you see that 6,593 of them were in the 905 suburbs and only 4,362 were in 416. The average price of a home in 905 is over $60,000 less than in the 416 area code. This along with the double land transfer tax makes for a significant savings of buying in 905.
There are 30% fewer listings on the market this year and this is pushing the market back towards the Seller’s market again. There is such little inventory on the market that once again we are witnessing bidding wars! There are lots of areas where homes are still going for over asking for example The Beaches and South Etobicoke.
The avergae days on the market is back to 33 and this can also be attributed to the lower inventory levels.
I see that this summer is going to be very hot in Toronto Real Estate. So seize the opportunity now
I have a great condominium listing right now and we have had lots of traffic from Buyer’s Agents. What surprises me the most is the calls I keep getting from Buyers who are just calling around to a bunch of listing agents to view their listings. There is very little awareness in the marketplace as to the advantages of having a Buyer’s Agent working on your behalf.
First of all you don’t need to search the Toronto MLS for listings every day. An agent can automatically send you the listings that meet your search criteria and let you know about exclusive listings that are not available to the public.
The agent schedules the appointments for you and can work within your schedule to make sure you get to see all the homes you are interested in. It is so much easier to be “chauffeured” around rather than randomly go see homes on your own.
An agent will also educate you on the process of buying a home. This way when you find the perfect home for you, you will be confortable and ready to put in an offer.
The agent will prepare the Offer of Purchase and Sale for you and will include clauses to protect your interest, for example the conditions of financing or a home inspection. They will negotiate on your behalf to get you the best possible price for the home. A selling agent wants to get the highest possible price for their client’s home. This is not the price you want or should be paying, a well prepared agent will pull comparables in the area to help negotiate the best possible price for you as a buyer.
In a multiple offer situation, an agent is essential to helping you form the right pricing and terms strategy to get you the home of your dreams.
And after the negotiation is over, their job is not done until closing where they work with the lawyer, the lender, and the seller’s agent to make sure that everything will be ready for closing.
So instead of going in by yourself to meet with the listing agent, hire someone you can trust to represent you and protect your interests in achieving your Real Estate goals.
When buying your home in Toronto, make sure to hire a Buyer’s Agent!
Historically, it has been better in the long term to have a variable rate mortgage but right now mortgage rates are at an all time low. So the usual logic need not apply right now.
Think about it this way, when mortgage rates were at 8 and 9 percent, a variable mortgage of 6% was a better deal. But now the fixed rates are lower than those variable rates were in the past (3.59%). These rates have been creeping up at a couple of the major banks is the last few weeks but more than likely in 5 years rates will be a lot higher than 3.59%.
Right now the Bank of Canada has lowered it’s lending rate to the low that it is in an effort to stimulate the economy, once the economy is stimulated, prices will rise (i.e. inflation). To curb inflation in the future the Bank of Canada will raise it’s rate and with it mortgage rates will rise. Now is a great time to time to lock in to hedge against this future rise in interest rates.
If you need a mortgage broker to help you get the best rates, let me know and I can send you their contact information.
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