Edmonton Real Estate Blog

The average housing prices quoted by the Board are influenced by two factors. If the prices paid on particular properties are rising then it will push up the average price. But if the actual prices are constant, the average could still increase because of the product mix in the period.

Right now there is a shortage of attractive, lower priced homes in this market because the low interest rates and increased migration have created a demand for housing for entry level buyers. Existing home owners are also taking advantage of the lower interest rates and the equity gain since 2006 and are buying in more expensive neighbourhoods. With less homes sold at the low end, the average price is pushed up as current owners move up-market to find a home. The relative number of homes sold in the $450 – 650k price range increased from 12.2% to 14.5% year-over-year while the percentage of homes under $300,000 dropped from 40.7% of the market to 38.2%.

It is important that REALTORS® explain this phenomenon to their sellers so that they don’t have unrealistic pricing expectations. The increase in average price may not increase the market value of a particular property. Just because the market is rising, does not mean that buyers will pay more than the market price in a given neighbourhood for a home. The CMA will reveal if prices for comparable homes are rising with the market or are showing a more moderate rate of increase.

Source: Realtors Association of Edmonton

You may think you’re deciding by logic, but don’t be so sure

Zero down payment mortgages will ends on October 31, 2012. In order to get in before the deadline, buyers need a offer in place by October 31 and must take possession before December 31.

For any buyers who have difficulty saving a down payment, this is a great alternative to renting. Lenders are tightening up and once this ends, I can’t see lenders bringing it back.

Q.  What is the change?

A.  RECA is preparing to implement a rule change that will require written service agreements between brokerages and all clients. Translated, this means that REALTORS® will need to enter into a written service agreement with buyer clients as they currently do with seller clients.

As your professional association, AREA is participating in this collaboration to help facilitate communication and support materials for members as they apply the change.

Q.  When will the change take effect?

A.  The rule change will affect all industry sectors and is expected to come into effect mid to late 2013.

Q.  Why the change?

A.  The primary reason for the rule change is to ensure that the role of the industry member is clear to the client. Written service agreements will be a key tool through which this clarity will be achieved.

RECA’s research indicates that, when clients are better informed, there is less confusion and fewer disputes.

Additionally, establishing written service agreements with all clients may offer some benefits and protections for industry members.

Written service agreements are also in keeping with our collective desire to have the consumer view our members as professionals, as this is a step that models other professions.

REIX, the real estate boards and AREA are all in support of this change, both for the protections it offers both industry members and consumers, and for the potential benefits to members (See possible benefits below.)

Q.  What are the implications for REALTORS®?

A.  REALTORS® who represent buyer clients will be required to establish a written service agreement with them.

This topic often results in two main concerns. These concerns are listed here with how they will be addressed in the rule change. Hopefully, the approach RECA is taking towards these two areas will alleviate much of the potential concern that REALTORS® may have in applying the new rule:

Binding Service:  The written service agreement will not necessarily bind the buyer client to an exclusive service arrangement with any one member. Practitioners and clients will be able to opt to enter into either an exclusive or a non-exclusive agreement.

Financial Obligation:  The written service agreement will not necessarily bind the client to a financial obligation. For example, the written agreement can stipulate that buyer brokerage compensation may come from the seller or seller’s brokerage.

Q.  How will this benefit REALTORS®?

A. There are several potential benefits for REALTORS® that could arise from this rule change:

Greater Client Loyalty:

Clients who sign a written service agreement with their practitioner are more likely to remain loyal because the process of building a written service agreement creates a more concrete relationship than serving a client without one – even if the agreement the client signs is a non-exclusive one.

The requirement for all practitioners to use written buyer brokerage service agreements lessens the chance that a client will opt to work with a practitioner who does not require them to sign an agreement.

Enhanced Professionalism:

Industry members are pushing for higher standards of professionalism and ways that their image can be enhanced in the public eye.

Written service agreements can help:

One way to demonstrate professionalism is to outline, in writing, what the industry member will do for the client and then deliver on those expectations in an exemplary way.

Completion of a written agreement with the client not only models other professions, the process creates an opportunity for dialogue. It also helps ensure that the client clearly understands the roles and responsibilities of each party to the agreement – the real estate professional, and the client.

Opportunity to Educate the Client:

Completing a written agreement with the buyer client creates an opportunity to educate them about the member’s services, the nature of the relationship and how the practitioner gets paid – all important aspects of building a relationship of trust and demonstrating professionalism.

The written buyer brokerage service agreement need not be exclusive nor bind the client to any financial obligation, lessening the likelihood that the client will resist signing it. The agreement simply needs to state whether it’s exclusive or non-exclusive and that the buyer brokerage compensation may come from the seller through the seller’s brokerage.

Supports More Buyer Representation:

More and more practitioners are moving towards buyer representation, as evidenced by the number of Alberta practitioners who have attained their ABR® (Accredited Buyer’s Representative) designation. While buyer clients assume the practitioner is working for them, the relationship isn’t always defined in writing.

Establishing written service agreements for buyer clients puts the relationship with buyer clients on an equal footing with seller representation.

Liability Protection:

Our society is tending towards more law suits and industry members can be better protected against liability by having something in writing with clients

Even if a client chooses not to litigate, a written service agreement reduces the chances of dispute and dissatisfaction on the part of the client, because the client has a written record of the roles and responsibilities of both parties to the agreement.

Fewer claims lessen the likelihood of the need to increase E&O premiums to cover law suits.

Q.  What happens next?

A. RECA is collaborating with AREA on a joint plan to introduce this change.

Near-term next steps include:

Focus Groups:  RECA and AREA are jointly conducting focus groups in Edmonton and Calgary with members later this summer as a means to test the implementation plan, including reaction to proposed messaging, suggested resources for members to aid them in applying the rule change, and the proposed timing of the rule change. The local boards have been asked to provide potential candidates from their membership to participate in the focus groups. While the boards have supplied candidates against a set of criteria (to ensure participants are demographically representative of our membership), you can also contact AREA if you have a desire to participate.

The focus group results will help us to fine-tune the implementation plan, and then AREA will get to work on building resources to assist members in applying the rule change, once it comes into effect.

Stay tuned!

Questions? Need More Information?

Please feel free to email AREA at communications@areahub.ca call toll-free 1.800.661.0231 or you can contact Natalie Scollard, at RECA, at nscollard@reca.ca.

To view and search all MLS listed homes for sale in Edmonton visit us at www.EdmontonHomesForSale.biz

Can you say positive cashflow!!!

Just listed a 2 unit home with a bedroom suite in the front, and a 2 bedroom suite in the back. Located in Allendale close to the University. Can rent for as much as $2,500/month. 4 level split home that could be converted back to a single home by putting back the doorway separating the front and back. Asking only $389,900 with a newer double garage.

Market “timing” isn’t the only factor that influences how quickly your house will sell or for how much.

The preparations you make before listing your house on the market will also have a big impact on your success. Consider these questions: How well is your house staged? Is it in a good state of repair? Is it priced correctly based on local market conditions? Is it listed and promoted so that all REALTORS® and their clients understand the advantages your house and neighbourhood have to offer?

Sure, there are peaks and slower cycles throughout the year. And, there are economic periods when the real estate market is either heating up or cooling down. But you don’t have any control over those factors. Plus, you can never accurately predict exactly where the market is within each cycle.

What you can control is how well you prepare your house for sale so that it’s desirable to as many potential buyers as possible.

So when is the best time to sell your house? When you want or need to sell it.

Want to find out how much your house will sell for in today’s market? Call today.

Lenders and policy makers are currently in discussions to change the mortgage rules again!! They are currently debating reducing the maximum amortization period back down to 25 years. This will make mortgage payments higher and will reduce the overall amount of a mortgage you will be able to qualify for.

They are also having discussions about increasing the amount of down payment required to buy.

Both of these will have a huge impact on your ability to buy, and how much you will be paying monthly. If you are thinking of buying you should consider buying right now before these changes come into being.

Search all MLS listed homes on our website www.edmontonhomesforsale.biz or call me today 780-995-6520

These are the bylaws that legally govern the condominium project, which the buyer will be bound to live by should you decide to purchase a unit and live there.

Often the condo board distributes draft bylaws with the intent of having them registered but do not achieve the approval of the owners so the draft bylaws never get registered and too often are provided instead of the registered set. So always be sure that you get a copy of the Registered Bylaws as those are the ones that are binding.

Obtaining the registered set of bylaws from the Land Title Office eliminates the risk of errors during the disclosure process.

To purchase the registered bylaws direct from the Land Titles Office (LTO) cost is $10.00. A small price to pay to ensure you have the correct information.

With today’s interest rates being so low and the downward pressure on valuations right now I think this is an ideal time to buy before prices go back up as anticipated in the spring time.

To check out today’s mortgage interest rates or would like to get pre-approved for a mortgage check out www.edmontonmortgagesource.com

Homebuyers usually worry that their dream home will turn out to be the lemon of a lifetime, and with good reason. It’s not uncommon to find that the foundation is secretly crumbling or that termites are eating the garage. Maybe it’s sitting on top of an ancient Indian burial ground? Not the greatest selling point for future resale.

Don’t get taken in by a pretty face. A house might look great, but do your homework. Research the house and the area, and if there is a major drawback, consider whether it’s worth the reduced price. With the help of industry insiders, realtors Kelvin Neufeld and Drew Scott, we give you a list of house flaws that require special consideration before signing your life savings away.

Marijuana grow operations are big money, with expert growers making millions of dollars a year. Setting up an operation in a basement or attic is worth the risk. Many communities target grow-ops by watching for a spike in a home’s energy usage. Grow-ops require enormous energy consumption to keep the greenhouse-type environment going round the clock.

Imagine what that kind of moisture and humidity can do to a home in terms of structural damage and mould growth. W Network’s “Property Brothers” co-host Drew Scott says if you can get the property for $100,000 lower than market price, for example, you might be getting good value. The lasting damage, though, is an image problem. “Even if the city says you’ve rectified the damage, and the house is safe, the stigma that comes with a grow-op is always there. That scares away the majority of buyers.” And if it was a crystal meth lab, forget it, says realtor Kevin Neufeld. “The carcinogens from those chemicals get absorbed into the walls.”

Another social stigma that scares away buyers is death. If someone died in the house, particularly in a violent way, it could reduce the resale value. Even if the house has a silly reputation for being haunted, it could worry the more superstitious type of buyer. W Network’s “Property Brothers” co-host and realtor Drew Scott says it’s his policy to always disclose such details to buyers. He’ll also refuse a listing if he knows it will be an impossible sell, unlike realtors who love the challenge of selling any house, even one that could be straight out of Amityville Horror.

It’s been more than 30 years since a fear of power lines was triggered in the general population. In 1979, a study suggested that power lines were causing cancer in Denver children. The issue snowballed in the media throughout the late ’80s and ’90s. Today, nobody knows for certain if power lines do cause cancer, but the perception persists that the area underneath power lines is a no-go zone. As well, says 34-year-real estate veteran Kelvin Neufeld, they’re just plain ugly.

W Network’s Drew Scott recalls the time that he was looking at a house for a client. The owners had failed to disclose that they were living next to a loud train that would roll by three times a day, morning, afternoon and night. Scott checked out the property himself at different times of the day and discovered the train noise. When he told his buyers, it killed their interest and saved them a lot hassle. Another way to check out a property, Scott says, is to “talk to the neighbours.”

Houses on busy streets are estimated to sell for 10 to 15 per cent less than the market value of comparable homes on quieter streets. If you do buy a home on a busy street, make sure you are getting fair value. And if you are selling one, make sure it’s got attributes that compensate for the high traffic. In order to get the most money for a home on a busy street, it should present perfectly and have an emotional appeal so that its major flaw is overlooked, say our industry experts. Installing double-paned windows would help, too.

It depends on the buyer, of course. Living across from a graveyard could either spell peace and tranquility, or a case of the jitters. Cities like Vancouver and Toronto are increasingly becoming home to people with diverse cultural backgrounds, according to a recent study released by University of Toronto’s Cities Centre director David Hulchanski. That means the mix of values is changing. For example, living next to the dead could be more of a no-no for some cultures than others. Consider your market, say the pros. Know who is buying the homes in your area, and what that market is demanding so you can gauge whether that house will have resale value down the road.

We all know the house. It’s a rental, full of university students who bust loose every weekend, sometimes throughout the week as well. When they throw a party, it seems like the entire university campus is invited, and the good times roll until the wee hours of the morning. Neighbours can call the police all they want. The city can levy fines. If it’s an absentee or negligent landlord, there’s little to be done but wait until they graduate. As well, the house probably looks horribly neglected, with hubcaps in the weed-filled yard. If there is any indication that your potential dream home is within vicinity of such a house, you might want to have a talk with the neighbours and get the lowdown.

For some cities, such as Vancouver, the buried oil tank has become synonymous with black mould and asbestos siding. It spells trouble. Back in the days when oil was the house’s fuel, everybody had an oil tank in the yard. Once it became obsolete, it was often just left to rust. If the oil tank is full it may require a permit and special environmental handling for removal. If the oil has leaked into the ground, including the neighbour’s property, the cost of remediation could go into the four-figure range. Buyers in areas where oil tanks are a concern therefore ask for certification as proof that the oil tank was properly removed. Disclosure is often required. If proof isn’t available, then the buyer or seller will often arrange for a search using a metal detector or samples taken from the soil. Oil tanks aren’t the end of the world, but they can be a major headache.

Source: Kerry Gold – MSN Money