No more 40 year or 0% downpayment mortgages

By Warren McNeil

Take a look at the recent Globe and Mail article entitled, Ottawa tightens mortgage rules to avoid 'bubble'

It may come to no surprise to you that this has happened. This is measure that the government is putting into place to prevent a similar situation to the US housing crisis. Originally the intent was to help people who might not be able to afford 5% downpayment or lower monthly payment due to longer amoritization. They kaybashed this because it could lead to our very own little crisis here. I am glad they are taking this step. It is a protection that is necessary for us right now because of the economy. With the higher prices of gas people are already extended as far as they can go. Now if only we could do something about these high gas prices and high interest credit cards. I think the one side-effect to this new change is that our balanced market is going to be even more balanced. People who don't have 5% to put down on a house will just have to wait a little longer.

People can still get 0% down and 40 year mortgages till Oct 15th. You might want to get into a lender soon to secure your finances if you plan on buying a house this year.

Thanks for reading!

Useful websites (Work in Progess)

By Warren McNeil

From time to time, I come across many useful websites. Some sites are used for searching for real estate information while others are tools for searching for a new home. Here is a list of links that I frequent.

Maybe I'll sort these into categories someday...

• www.clickthathouse.com - This could very well be one of the finest websites on the Internet
• www.mls.ca or now www.realtor.ca - MLS database of homes in Canada
• www.reco.on.ca - Real Estate Council of Ontario
• https://www.wects.ca/ - School finder. Very useful
• www.crea.ca - Canadian Real Estate Association
• www.theglobeandmail.com/realestate/ - Not for Kitchener-Waterloo area but at least there is lots of good info
• www.remax.ca - Remax Canada
• www.remax-oa.com/ - Remax Ontario Atlantic
• www.remax.com - Remax North America
• List to be continued.....

This list will definitely grow as time goes on.

Thanks for reading!

CREA/FINTRAC Identification Verification Requirements June 23, 2008 Legislation

By Warren McNeil

I recently sat in on a meeting with our office. The discussion was regarding new legislation that went into effect on June 23 that requires all realtors to gather more information about clients. This is mandatory legislation is a requirement put into effect by FINTRAC and CREA at the federal level. Here is a quote from our portal website at http://www.realtorlink.ca/content/fintrac/

"CREA recommends that REALTORS® advise clients of the FINTRAC requirements BEFORE any real estate documents are signed. This is to avoid members being involved in a buyer agency or listing agreement, only to discover the client later refuses to provide the identification information now required by law. A REALTOR® who continues to represent a client who refuses to provide identification information is in non-compliance of the law."

Who is FINTRAC:

"The Financial Transactions and Reports Analysis Centre of Canada, or FINTRAC, is Canada's financial intelligence unit, a specialized agency created to collect, analyze and disclose financial information and intelligence on suspected money laundering and terrorist activities financing . Created in July 2000, the Centre is an integral part of our country's engagement in the global fight against money laundering and the financing of terrorist activities."

http://www.fintrac-canafe.gc.ca/fintrac-canafe/1-eng.asp

How does this new legislation effect our clients?

We are now required by law to collect more information about clients during a real estate sales transaction. When a client purchases real estate, we have to keep a client information record and we need to take all steps to verify the client.

The type of information that needs to be collected is as follows:

1. Name
2. Address
3. Date of birth
4. occupation or principal business
5. The type of ID that will be used to verify the information (Photocopy not necessary. Just have to record the number. Licence number, birth certificate number)
See identification requirements for more information: http://www.realtorlink.ca/content/fintrac/identification_requirements.htm

We also need to include how the record was created. In-person, Not physically present, identified using a mandatary

Identification that FINTRAC will not be use is (Ontario only):

1. Heatlh cards not allowed
2. SIN cards are not allowed

Obviously this is designed to thwart money laundering and other illegal activities involving large amounts of money. As long as people understand what this legislation is all about then there won't be any problems.  

Resources:

Unabridged version of the new legislation. Please read: http://www.realtorlink.ca/content/fintrac/

FINTRAC main website: http://www.fintrac-canafe.gc.ca

CREA main website: http://www.crea.ca

Thanks for reading!

MLS.ca changing domain name to realtor.ca

By Warren McNeil

On June 30th the domain name www.mls.ca will be changed to www.realtor.ca.

One reason why this change is taking place is help the public understand that houses presented on the www.mls.ca website are being brought to the public by realtors. I think most people knew this already but I am sure that studies have shown the some people didn't know that. This will definitely elminate the mystery. Hopefully the public will respond positively to this change.

Looks like there will be some really cool features such as virtual mapping similar to Google Earth. I guess Microsoft has a competing product called Microsoft Virtual Earth. Same thing.

I like typing www.mls.ca because it's shorter. The domain will be redirecting for some time after the changeover. So we will still be able to type in www.mls.ca for a little while yet.

Thanks for reading!

[Mobile Home/Cottages] What is a land lease community?

By Warren McNeil

Q. What is a land lease?
A. When somebody owns a home and rents the land underneath it. 

A land lease community generally has sites that are rented by tenants who own the home on the site.  A land lease home is a permanent structure. 

For more information about land lease commumnities see, http://www.ltb.gov.on.ca/en/Key_Information/158000.html

Thanks for reading!

[Seller Tips] What is a Market Evaluation or Comparative Market Analysis?

By Warren McNeil

What’s my house worth?

If you are a home owner you might be wondering what your house is worth compared to other homes in your neighbourhood. Let's say you lived in your house for 10 years. You might not have any idea what your home is worth if you were to sell it today.

I am not going to go into a sales pitch here. Our blog is not used for that purpose. The sole purpose of this blog is to educate, provide tips and provide general real estate information.

As a realtor, one goal is to meet new people. One way for us to do that is through free market evaluations. Everyone wants to know what their house is worth. Some want to know for information purposes while others might need one because they are thinking of selling. In either case, this information can be extremely valuable to a home owner.

So the question you may be asking yourself, what is a home market evaluation? Here is a breakdown of the steps a realtor will follow to do a market evaluation.

Step1:  Realtor gathers information about the property. Typically information such as area, house type, house style, # of beds, # of baths, age of house, upgrades, lot size. This list can go on and on.

Step 2: Realtor does a walkthrough of the house looking for things such as curb appeal, overall condition, special features such as hardwood, ceramics, en-suite, finished basement etc

Step 3: Realtor collects local market information specific to the area. Information such as recent sold, expired and actively listed properties. Also included in the analysis is average price, days on market, list to sale price percentage. If there are no other comparables then the realtor might need to look at different areas to compare to. Sometimes a house in one area might be worth less then houses in other areas.

Step 4: Realtor goes through these statistics and comes up with a price range that house could be worth.

Sometimes the price a realtor suggests might be lower or higher then what the homeowner had in mind. I never hear people complain when we say their house is worth more. Some people think their house is worth more but find out after the evaluation that the market is telling them otherwise. This can be frustrating but we always remind them that buyers ultimately set the price. Buyers will only pay what they want to pay for a house.

In summary, whether you are thinking of selling or just need to find out what you house is worth, consider consulting a realtor and ask them to do a free market evaluation.

Thanks for reading!

Kitchener Real Estate Board Statistics for May 2008

Kitchener Real Estate Board Statistics

Here are board statistics for the Kitchener-Waterloo real estate board. Please note that the information here is only based on residential real estate. If you would like a more detailed report, please contact Melanie or Warren.  

March 2008 – May 2008 (All Categories, All Areas)

All information deemed to be accurate and are based on monthly statistics of the Multiple Listing Service gathered by the Kitchener Waterloo Real Estate board.

Thanks for reading! 

Another cold springery/summery day!

By Warren McNeil

I was showing houses tonight and I couldn't believe how cold it was outside. Are we in the Yukon? What's up with the cold already. I might need to dig out the parka and a cap! The weatherman even said we might see trace snowflakes in the next day or two. This has to stop. The gas and electric companies must loving this because they get to enjoy another month of profit from people using their heating systems a bit longer. But I digress.

Mostly everyone of my clients have been asking me what the market is like right now. They're asking me because they are hearing from various sources that there are changes in the market. This could be spurred by the US market but I think it is just how things are right now. I'm not an expert in this area but I do read alot and I am always trying to stay on top of the current real estate market. Especially how it effects the area of Kitchener and Waterloo. Both CREA and Re/Max said that the market was going to balance out this year. I am already seeing how some areas of Kitchener-Waterloo are softening. It seems more like a balancing out. Some houses go up for sale and sell right away while others are take a little longer to sell. According to the monthly stats, the average sale price for a single-detached home in Kitchener is around 295,000 while the average days on market is approximately 43 days. The average list to sale price ratio is 98.3. These stats show that our area is still strong and should not really be effected as much as other areas of Canada. In other words, houses are still appreciating in value and they are selling in a decent amount of time for close to asking price. What more could you want. It would be great if sellers could get more money for their houses when they sell and buyers can get a best deal when they buy a house. Unfortunately that can't happen at the same time. Something has to give.

See Also:
Canada's housing market expected to cool off
Home Sales will fall 11.5% this year realty group predicts

Thanks for reading!

Technology and the realtor

By Warren McNeil

Technology, is an amazing thing. Having a background in computers, I rely heavily on computerized systems and technology to help me to do my job. I am a gadget guy so if it is powered by a lithium battery, then I want one. People might not realize this but being internet connected is necessary for todays realtors. Gone are the days of the big "real estate book o listings". In today's day and age, things move in such a fast pace that we don't even have time to read. We abbreviate everything when we send text messages, we email instead of calling or visiting people and we search our board system via computer to get quick results for available houses for sale. Being able to search the MLS for listings is 1000 times faster then rifling through a book.

Here is a shortlist of some of the techology I use to do my job:

Blackberry

The Blackberry is where I receive all my emails, text messages, pages, phone messages. It even allows me to seach the MLS system. The features of this device are absolutely critical to any realtor. Without this device I would be lost. We even send text messages to our clients because they told us they prefer this method over other communication methods. The PDA was one of the greatest inventions ever.

Computers

Another device we couldn't live without in this information age is the computer. The computer is used for everything. Internet, marketing, communication, research, advertising, training, time management. This list could go on and on. Heck, home inspectors even print off their reports from computers. In the next five to ten years, I can see all real estate based contracts being electronic. This would definitely save trees. I think the best thing to ever happen to trees is the computer because it "cuts down" (no pun intended) on paper. All we got to do now is figure out how to handle the high gas prices! How about solar powered robots that can transform into cars. More then meets the eye indeed!

Digital Cameras

The digital camera is required in order to take pictures of your home. It sure beats Polaroid. Scanning images would be a real pain in the butt, Pulling out the little SD card and sticking it into the little SD slot on my laptop sure beats scanning them in. Some of the digital cameras that you can buy now even have builtin tools to improve the picture quality. Now with harddrive based movie camcorders dropping in price, video is slowly starting to show up.

GPS

This device is a godsend. I can't believe I lived the first part of my life without one. As a realtor, this device will pay for itself a million times. Especially if you are like me and you get lost pulling out of your driveway.

In summary, whether it is receiving a text message on your Blackberry, uploading new photos to a listing on a website or finding a house in the middle of nowhere, technology enables us to be more efficient at our jobs. If you like to keep track of all you appointments in a paper daytimer thats great. I prefer to keep appointments in a system that I can access on my Blackberry as well as a paper daytimer. The downside to technology is that it can be distracting. We have become slaves to the devices that we use everyday. I never answer my phone when I am at appointments because I feel it distracts me and changes my train of thought. I also want to show the people that they have my undivided attention. Some people can't resist the temptation to read an email or answer the phone during a meeting. How many times have we been at a seminar when the phone rings 100 times. Or what about at a movie theatre. I have heard people answer the phone and talk in a movie theatre. The people in the audience told the person to "be quiet". It was actually quite funny.

That's enough of my spiel on technology.

Thanks for reading!

Yard Sale for the Cure May 31st, 2008

By Warren McNeil

Back with another post... I am starting to really get the hang of this blogging thing. The purpose of this blog post is to mention that Melanie is looking after raising awareness for *** cancer by hosting a "Yard Sale for the Cure" at our office at 901 Victoria St N on May 31st, 2008. We need your stuff!

http://www.remax-oa.com/WhyREMAX/InTheCommunity/yardsale.asp 
http://www.yardsaleforthecure.com/index.php

We are asking people for donations. We need to get as much stuff for the yard sale as we can. Please let us know if you want to get rid of anything. We will take it off of your hands.

For more information about the event or where to drop items off, please contact Melanie or Warren McNeil at Re/Max Twin City. 519-579-4110.

Thank you for your support!

First-time home buyer checklist

By Warren McNeil

Doing a quick Google search for "first time home buyer" will yield more information about the home buying process then you can shake a really big stick at. You will find many pointers via Google. Therefore I am not going to repeat everything here. I am just going to point out a few of the important things to consider.

 If you are buying a house for the first time, it can be downright frightening. Fortunately there are several people who can help you through this daunting process

Here is a shortlist of people who can help you

- realtors

- mortgage brokers or bankers

- lawyers

- home inspectors

- insurance

Rather then go at it alone, it is recommended that you consult an expert. The above people are trained in their field of expertise and will be able to help you in more ways then you realize. A good professional will be able to save you money, time and give you peace of mind. Planning is very important. Buying a house involves many steps. You can't just walk into the house store and say I will take that one.

Four Simple Steps of the Home Buying Process

1. Pre-approval

2. Home search

3. Offer

4. Condition fulfillment

Pre-approval

Getting pre-approved is important step in the home buying process so that you know how much you can afford. No sense in looking at a house that is out of your price range. You are just setting yourself up for disappointment.

Home search

Looking for a house is more involved then just going to an open house and buying it. You should look at several homes to see what features you like and dislike. Not all houses have open houses so you could be missing the house of your dream house by not looking at everything available.  Remember, you are the one who is going to have to live there. Why not buy something you will enjoy for years to come. Try to visualize what it will be like in 5 years in the house and if you think you will be still happy then chances are you made a good decision.

Offer

When you are ready to put in an offer, your realtor will help you with the paperwork.  You need to compare the house price and make sure that it coincides with other houses that recently sold on the market.  Depending on your situation, your realtor needs to put in various conditions such as home inspection and financing. These will protect you in the event there is something wrong with the house or the bank denies your application for a mortgage. Once the offer is accepted you can move on to condition fulfilment.

Condition Fulfilment

Now that you have an accepted conditional offer you will need to fulfil the conditions. With the home inspection, you need to make sure the houses doesn't have any problems (i.e. needs a furnace, roof, water leakage etc). Home inspections generally take 2-4 hours depending on the inspector and the size of the house. You also need to make sure that you can afford the house. Financing is extremely important. You need to find a lender who will lend you the money to buy a house. Since you probably don't have 200,000-500,000 in bank, financing is necessary.

As you can see, this just scratches the surface of the process.  

Kitchener Real Estate Board Statistics for March 2008

By Warren McNeil 

Here are board statistics for the Kitchener-Waterloo real estate board. Please note that the information here is only based on residential real estate. If you would like a more detailed report, please contact Melanie or Warren.  

January 2008 - March 2008 (All Categories, All Areas)

All information deemed to be accurate and are based on monthly statistics of the Multiple Listing Service gathered by the Kitchener Waterloo Real Estate board.

Thanks for reading,

Rising housing values and lack of inventory challenge first-time buyers, says RE/MAX

Rising housing values and lack of inventory

challenge first-time buyers, says RE/MAX

“Homeownership continues to be primary objective”

While higher housing values and tight inventory levels have hampered home-buying activity so far this year, longer amortization periods and alternative housing types have offset the impact on most major markets across the country, according to a report released today by RE/MAX.

Despite a higher degree of frustration in the marketplace than in previous years, the RE/MAX Affordability Report found that first-time buyers, in particular, remain steadfast in their determination to purchase a home. In fact, entry-level purchasers are adjusting their expectations by sacrificing size, location, and even long-term financial freedom, to overcome challenges such as rising prices and serious supply issues.  Innovative financing has become key to homeownership in today’s environment – with longer amortization periods gaining favour in 62 per cent of the major centres surveyed. Low or no down payments were popular with first-time buyers in 38 per cent of markets.

Doom and gloom reports coming from south of the border have yet to hinder overall momentum.  First-time buyers are still leading the charge, taking advantage of every resource available to achieve homeownership. They’re determined to get into the market sooner rather than later. If suburban locations, smaller condominiums and town homes, or a little sweat equity is what it takes to get into the market, these purchasers are game.

Inventory levels, however, remain one of the foremost concerns facing purchasers across the country. A shortage of available entry-level product was identified as a major obstacle impeding buyer intentions in three-quarters of markets surveyed in the report.

First-time purchasers continue to play a pivotal role at both a local and national level. The impact they have on the housing market is significant, as they are the impetus for sales in the mid-to-upper price ranges.  As long as this segment of the market remains healthy, the real estate outlook will continue to be favourable.

Although average price is the barometer for housing values in most major centres, first-time buyers looking to achieve homeownership consider starting prices a more meaningful gauge of affordability. Starting prices can be substantially lower than the market average. 

The best value for the dollar continues to be found in the suburbs.  For those unwilling to sacrifice on location, small condominium units in new developments and condominium conversions of rental buildings offer up the next best alternative. Condominium conversions in some of the country’s major centres can be picked up as low as $150,000 to $175,000.

Selling your house in the spring

By Warren McNeil,

The spring market is in full swing now. New listings are showing up on your streets and they are selling pretty quickly. Welcome to the spring market.  If you have been out househunting then you know how difficult it can be to find the house that you want. Multiple offers seem to be pretty common lately. If a new house comes on the market and is competively priced, there is a really good chance it will be swiped up right away. Unlike the winter market, spring brings people out in droves. Swimming pools open up, gardens are overflowing with tulips and the buyers come out of hibernation.

Parents who have children in schools like to househunt in the spring so that they can buy and then be ready for the new school year. So if you have been thinking of selling but are hesitating, then you should really take advantage of the hot market and time of year now. There is a higher demand for homes during the spring. If you are a buyer, you need to act fast. It is a really good idea to get pre-approved so that when it comes time to make an offer, you are all ready. Watch MLS closely and have a realtor email you listings so that you have first dibs on them as soon as they come up. Be ready!

Whether you are a buyer or a seller, the spring market is a terrific time to sell and buy.

Here are some tips for getting your house ready to sell in the spring:

1. Clean up the garage, basement, yard (pretty obvious )

2. Paint

3. Shampoo the carpets

4. declutter. Since you are planning on moving, why not get a headstart and start packing things away.

5. depersonalize by removing family photos and other personal items

6. Do any repairs. (e.g fix screendoor, windows, leaky faucets, running toilets, clunking pipes)

7. re-organize (People have told me that cleanliness and organization demonstrates pride of ownership. I'd have to agree with that!)

8. Rent a storage unit (Be careful though. Some items can get damaged if not in a climate controlled environment)

9. Ask other people what they think you should do to make your house more presentable/saleable. Be open-minded even if somebody suggests something that might not be in your taste. Put yourself in buyers shoes.

10. Stand in front of your house and check curb appeal.

11. Hire a home stager and listen to their advice. If you are not going to do the things they ask, then save your money. In my opinion a staged home will get you more money.

One other thing I want to leave you with is if you really want to sell and I mean really really want to sell your home, then you will. We have dealt with many sellers who didn't care whether they sold or not. Buyers pick up on this and may decide that your house is not right for them.

Last but not least, price your house competively. 

Thanks for reading!

Spring is in the air :)

By Warren McNeil

Hello everybody, it has been a long time since I have made a blog post. I was away to beautiful Hawaii where the temperature was a constant 84 degrees. The trip was amazing. We flew out of Detroit. Good thing we did because the Toronto airport was apparently closed down. In Detroit, we were delayed 1 hour because they had to de-ice the plane. Pretty scary stuff for a person who doesn't fly very often. We visited two islands, Oahu and Big Hawaii. When we landed on Big Hawaii I thought I had landed on the moon with all the lava rock everywhere. We visited Pearl Harbour, Honoloulou Zoo, a Luau, Volcanoe National Park and many other places. It was a really good time.

While I was there I couldn't resist looking at real estate. The median house price on Oahu according to the local paper was $675,000. That sure is alot more then I would be willing to spend on a vacation home right now. On Kona, we visited a condominium situated right on the Ocean and it was priced at $505,000. Apparently it was priced at $100,000 below assessed value. This sounds like it would be a good investment considering a couple years ago the market value for these units was apparently over $700,000. All I can say was there were lots of houses for sale. I even had the chance to see the Trump tower on the Waikiki Beach Walk. Pretty impressive building. It apparently sold out in less the 8 hours.

Back to Kitchener and Waterloo. Spring is in the air and the housing market seems to be really picking up. The Spring market is usually very strong in our area and it is starting to show evidence of that. I am happy to say, it looks like this is going to be a good year for the real estate market here. Interest rates are stable, supply seems to be a little low but if you wait long enough you can usually find a pretty good home. I seem to be spending alot of time with student investers and parents of students who want to invest in real estate here. The UofW, Wilfred Laurier and Conestoga College are the three big schools in the Waterloo Region and we are seeing people buying investments properties instead of paying rent. This makes a lot of sense if you are able to do it. 

One last thing I wanted to mention before I finish up here is if you are ever looking for a place to board your dogs, I highly recommend Contry Paws Kennels in St Agatha. Their website is http://www.countrypawskennel.com/. Glenda, the business owner, was absolutely amazing. She took really good care of our dogs. We have an older Cocker Spaniel (15yrs) and she had some diarea and wasn't eating properly so they made special arrangements to take her to the vet and get her some special dog food that would be more gentle on her stomach. I was totally impressed by their level of service. The care was top notch! Please use their kennel, I know you won't be disappointed.

Thanks for reading!