Making sense of any market is difficult at the best of times but because of the lag time in reporting sales that are firm or sold conditionally, a chrystal ball can come in very handy….

Here is what I have noticed:

• There are a lot more houses on the market for sale.
• Showings have subsided but Open Houses are still quite busy.
• The number of sales has decreased leaving a lot more listings for buyers and hence a lack of urgency.
• Where move-up Buyers would have offered before selling, they are now holding back till their own property sells.
• The houses that are moving first have the most amenities: Parking, Schools, Garages, High-end Finishes etc.
• Sellers have to be calm, price realistically and manage their expectations.
• Sales are still happening, fewer with multiple offers, but they are happening.
• People are confused about the HST and think wrongly, that it is payable on resale housing. It is only payable on the services used during the sale of resale housing.

The difference in Today’s market is this:

• There was a shortage of listings in the market place from October 2009 till February 2010 contributing to a pent up demand this Spring.
• There is a strong ”Baby Boom” affect. A lot of Today’s Sellers are changing their lifestyles moving to apartments or to their Country properties. They are responsible for the spike in listings…
• Today’s Buyers are “surfers”, used to surfing Television, the Internet and Open Houses. They don’t want to see property by appointment but surf Open Houses on the weekends…

What does it all mean?

• More listings, giving Buyers more choice.
• Patience is needed if you are a  Seller or Agent.
• Buyers need to get their “ducks in a row” in terms of financing and deposits.
• Pricing can only be based on the value of the home, not the plans that you have for the money after you sell…

The reality is that most Spring markets are similar and that a market is a market: Prices go up and down, activity changes slowly at times and quickly at others… first and foremost your house is a HOME where you, your family and friends enjoy company, entertain and share your hobbies.

At the end of your life will you be thinking about the money you made in Real Estate or the great times you had in the home that you loved.

I am sure you have some thoughts so feel free to comment…

For many Sellers the thought of having someone traipsing through your home with all its keepsakes and memories sends shivers down their spines.

However, take a deep breath and keep a few things in mind; First, this is the house you are leaving. Secondly, all the keepsakes should be away from the Buyers eyes in an attempt to de-personalize your home and make it appealing to the widest spectrum of Buyers in the marketplace.

Thirdly, most Buyers today are from the surfing generation. We have grown up surfing TV channels, surfing the Internet and web sites and now, surfing Open Houses.

They go from house to house to find the Realtor they want to work with and the house they want to buy. I am often reminded of this when I get a call from a Buyer who asks when the next Open House will be on a listing. If I tell them there is not one scheduled but I am happy to take them through privately, the usual response I get is “no thanks, I don’t want to bother you, let me know when the next Open House will be though”. Bother me, bother me!!

This leads me to encourage all my Sellers, where possible (tenanted houses are tough), to make their houses available to be open, show them in the best light and also to make an event of it. A fire in the fireplace and the smell of baked cookies (vanilla extract of a light bulb, if you want to cheat…) works wonders.

Open Houses are definitely part of a complete marketing plan especially in a market where you need every advantage. Feel free to drop by my next one. There is usually an up-to-date list on my web site. Also, the Toronto Real Estate Board and REALTOR.ca have online Open House information.

I love lawyers, some are great friends and clients…but when they talk “Lawyer Language or Legalese“, they speak in a language that is hard for most to decipher. It sounds more like “Gobbledygook”.

Then…they write contracts…contracts that you should be able to understand when you are making the largest purchase of your life. I have studied and dealt with contracts daily for years but am hard pressed at times to explain contract law and the rhetoric used. It should make sense and be in plain language.

A few years back the Toronto Real Estate Board created a consumer-focused web site with a special area where you can view a few of the main contracts that Buyers and Sellers use when they enter into agreements. Each clause of the contract is the explained in “Plain Language” in red followed by the clause.

This is a popular and great tool for potential Buyers and Sellers and there is also other good consumer information in that area. If you are thinking about getting into the market, you should read through them and if you have any further confusion or need clarification, please contact me. I’m happy to help.

Just as it is important to have a great Mortgage Broker who you can depend on, I have also been very lucky to know one of the best minds in the Toronto Real Estate appraisal business, Barry Lebow. Barry is not shy about giving you his thoughts so I asked him for some suggestions for Sellers and Buyers in Today’s Real Estate Market:

Sellers or Home Owners:

“For someone who is worried about their home ownership one way to get a leg up is to finally think of finishing that basement into a rental unit. Let’s face reality, most people who rent a unit in their home do not add that income into their income tax. I am not advocating cheating on taxes I am observing that it is the norm. So, if someone was at a 30% tax bracket and getting a basement rental income of $850 a month it is as if their income increased by another $13,000 a year. Yes, there are more utility costs to deduct but overall, renting and keeping one’s home makes a lot of sense. 

Even a small thing, like having that rare garage in the city core that you have filled with junk or do not use, it can bring in tax free income as there are many people who want private winter storage for their prized vehicle.”

For Buyers and Sellers who become Buyers:

“We have experienced a downturn in the economy at the same time that we traditionally experience a downturn in real estate, the months of December and January. Real estate activity in the hottest years falls off during these months. For people fence sitting, there should be some good deals out there and for people wanting to move up, even better.”

When markets shift the worst thing you can do is nothing. Opportunities are in every market, whether you decide to stay where you are and renovate, or take advantage of a slower market to buy.”

In either case, feel free to contact me and we will talk Real Estate. 

 1. Legal Fees: The tariff rate for residential properties is between .25% and .5% of the purchase price, normally not to exceed $1,450.00. Lawyers may negotiate their fees and will provide individual quotes when requested.However, in general, the costs for Selling a home should be less than those for Buying, as the Seller’s Lawyer mostly responds to the Buyer’s requests.

 2. Land Transfer Tax – There is no LTT for the Seller however, if the property is an income property, it may be subject to Capital Gains Tax. You should consult your Tax Accountant if that is the case.

 3. Survey – A new survey may be necessary if you do not have an “acceptable” survey and one is required by the Buyer. Cost: $750.000 – $1100.00

 4. Disbursements – These should be minimal as no search is done by the Lawyer. However if there is a Mortgage, there will be costs involved in transfering or discharging it.

 5. Mortgage – There may be a penalty and you should be aware of all costs associated by doing a Mortgage Verification. Don’t be caught off guard and get it in writing from your Mortgagee before you list. The more flexible your existing financing is, the better it will be as a sales tool.

 6. Title Insurance – The Seller is not responsible for Title Insurance. It is the Buyer that must buy it for the house or Condo.

 6. Adjustments: On a pro rata basis the lawyer will apportion the following expenses, as of the date of completion: Taxes; Oil (usually topped-up by Seller and Buyer receives a full tank); Water (only flat rate accounts in Toronto); Common expense fees

 NOTES: Building clearances City of Toronto will not comment on surveys. They give only zoning and work order information, front yard parking, committee of adjustment files, etc. Toronto Hydro – They give neither written nor verbal information. It is entirely up to the Seller and Buyer to call them.

 All disbursements with the exception of registration costs are subject to applicable G.S.T.

 Please contact me direct at mail@richardsilver.com and I will be happy to answer any further questions that you might have.