From The Toronto Sun of Friday, November 16, 2012 on Page No. 42

Not all of you might like real estate agents. It’s easy for professions to get tarred with a wide brush of false perceptions. So you might buy directly from other Canadians or Sale as private as For Sale By Owner (FSBO). Don’t, there are plenty of websites and guides for FSBOs for sale by owner serving Toronto, Mississauga, Oakville Market. Certainly, they can give you an indication of what’s on the market and property values in particular areas. That’s information you can use. But the knowledge to properly pull off a deal, as a seller or buyer, is not the “one-click purchase” of the online world.

Real estate agents — the good ones, and the right one—are professionals and experts in the property world for that essential skill of using information to form knowledge to enable transactions.

For Sale By Owner: Consider these five factors

1. Real estate? Real experts.

Most people would struggle to write a proper, legally binding contract—there’s no shame in that. There’s also no shame in failing to consider every aspect and potential pitfall in buying and selling property. That’s what real estate agents are for. FSBOs are not real estate experts, and their lack of experience can be frustrating and costly. When you use the right real estate agent, they will know everything about the local market and neighbourhood. If you put their years of knowledge and experience to work, it will save you time and money.

2. Negotiating skills.

As I’ve said before, knowledge is power, especially in real estate negotiations. It isn’t just having numbers at your fingertips, but understanding them. When buyers and sellers meet, they talk too much, I find. The longer you talk, the more information you’ll have, but at some point you can have too much information, and not enough knowledge of how to get a good deal. Again, this is where a real estate agent can ensure a knowledge base that cuts through the information clutter.

3. Pricing.

FSBO properties are notoriously overpriced. Sellers are emotionally attached to their home, and thus tend to place a higher-than-market- value tag on the property. It’s understandable that they’re fond of their home, but that doesn’t help you as a buyer looking for the best deal. You might think you’re saving money by going direct to the seller. Some website will have you believe a deal is to be had because no one is paying the real estate agent commission. But this could not be further from the truth. FSBOs almost always over value their homes and this trend could actually cost you more.

4. Safety.

As a FSBO or private real estate investor, you meet with every potential buyer personally. You invite buyers — strangers — into your home without pre-qualifying them at all. This can be dangerous and in my opinion, is not worth the even small risk. Using a real estate agent places a firm buffer between you and unscrupulous buyers. Isn’t the safety of you and your family worth this caution?

5. Paperwork.

Buying and selling property doesn’t involve any less paperwork simply because you’re doing it yourself. If only anything did. The fact is, most real estate files are inches thick, filled with documents and contracts relating to the sale of the property. FSBOs are generally not familiar with the required Purchase & Sale contracts, and most never take the time to explain the contracts to potential buyers.

One mistake or omission could land you in court or cost you thousands of dollars

Suddenly, your attempt to “simplify” the process by buying or selling direct, gets a whole deal more complicated. Are there FSBO deals that work? Sure. As with anything in this world, some problems arise even with the most experienced real estate experts at your side, and conversely, complex FSBO deals can work smoothly against the odds. But my advice remains  firmly on the side of avoiding FSBOs.

There is simply too much risk, personally and financially, to try for a deal in a process most people would struggle to understand. Is your dislike for real estate agents really so strong that you would put your money in jeopardy to avoid them? We’re really not that bad, and the best of us out there will make you forget you ever considered an For Sale By Owner.

T.S. Eliot wrote: “Where is the wisdom we have lost in knowledge?
Where is the knowledge we have lost in information?”
When it comes to property, there’s plenty of information out there. But it takes knowledge to do the deals properly— efficiently and effectively. And if you choose real estate agents over being a private real FSBOs, you’ll be demonstrating that you have the wisdom needed for the property game.

Deck Building In Your Backyard

Now that summer has finally arrived, many home owners may think about deck building in a backyard by themselves. Be careful; if it is not done correctly, you may run into problems later when you try and sell your home. Here are 7 things to remember:

1. Deck Building: Do you need a building permit?

Every City has its own rules, but typically, if your deck is higher than 2 feet above the ground and is larger than 108 square feet, you will need a building permit before starting your deck building. In some cities, if the deck is attached to your home, then you always need a building permit before you build. In my opinion, by getting a proper permit in advance, it is easier to answer any questions about your deck when you sell your home later. This is because the City will do a proper inspection when your deck is completed to make sure that everything was built correctly.

2. What material should I use when I build a deck?

David Power, President of www.thedeckbuilders.com in Toronto, tells me that while the foundation of most decks is usually pressure treated wood, the veneer and railings are usually cedar. David warns that if you decide to stain your cedar deck, you should pre-stain all six sides of the wood before you install it. In addition, make sure that there is at least a one-quarter inch gap between each piece of wood.

3. Will it matter how large I build a deck or whether it is close to the boundary line?

The answer is yes. As explained to me by Toronto planner Michael Goldberg of www.goldberggroup.ca, the square footage area of a deck may count when determining whether your home complies with the zoning by-laws regarding how close any structure can be to the lot lines and how much square feet is permitted to be built inside your entire lot. For example, if the deck is at least 48 inches off the ground or the foundation is extended for construction of the deck, then it will count towards how many total square feet you can build on your land. In addition, if the deck is built too close to the lot line, it could also violate the local zooming by-laws. If you make a mistake, you could be forced to remove all or part of your deck.

4. Should you do it yourself or use an expert?

In my opinion, you should always use an expert. If the deck is not properly secured to your home, it could lead to water in the basement later. In addition, improper design and construction could lead to the deck rotting out and collapsing under the weight of people on it. If it happens, you will be liable for any injuries caused to guests who may be injured while visiting your home. Experts will make sure that your deck has the proper footings in place for the foundation so that it meets all building code requirements and that it is properly secured to your home to prevent problems later.

5. Is deck design important before you start?

It is very important. Figure out in advance where your barbecue is going to go, and any furniture you may want to include. If you are going to install a hot tub as part of your deck, make sure you leave enough space for this as well. Some owners prefer the hot tub close to their home so they can use it in the winter. Others prefer it in another area of the yard, so that they can have more room to entertain on the deck.

6. Will I need guard rails?

If the deck is higher than 24 inches off the ground, you will likely need a guard rail that is at least 36 inches high. Once the deck is higher than 6 feet off the ground, it will require a 42 inch high guard rail. In all cases, the openings in the guard rails cannot be larger than 4 inches so that no one falls through.

7. Should a deck be inspected as part of any home inspection when buying a resale home?

The answer is yes. After finishing your deck building, professional home inspectors should be able to tell you whether the deck is deficient in any way and whether it may have to be replaced as a result of poor workmanship.

When you are looking for a deck contractor, get references and look at examples of the work they have done elsewhere. Properly constructed decks should last for at least 20 years.

Credit for this article goes to Toronto Real Estate Lawyer : Mark Weisleder, http://www.markweisleder.com

1. When must real estate deposits be paid under the standard Ontario real estate contract?

In Ontario, the standard real estate contract gives the buyer two choices; you can pay the deposit immediately when you present your offer to the seller, or you can agree to pay it within twenty four hours after the seller accepts it. Most buyers prefer the second option. If you are in a bidding war, you will be encouraged to come up with the deposit immediately, to show additional good faith to the seller.

2. Can the buyer just cancel the deal by refusing to pay the deposit after the deal is accepted?

The answer is no. Once the deal is accepted, you can’t change your mind. If you do, the seller can sell the property again and if they obtain less money than you were going to pay them, the seller can sue you for the difference, plus legal fees.

3. What happens if the deposit is paid late?

If you are late with the deposit, the seller has the right to cancel the deal. This is because all time limits matter in real estate contract sand if you are late, even by a few minutes, the seller can try and cancel. I have seen this happen many times, especially when the seller knows that there is another buyer out there who will pay more money. If you need more time to come up with your deposit, say so in your offer.

4. How much should a buyer pay as a deposit so the seller will feel secure that the deal will close?

This is a tough question, and will largely depend on where your home is located. In the City of Toronto, deposits are now usually up to 5 per cent of the sale price. In Brampton, it is closer to 2 per cent. In some areas of Ontario, deposits can be as little as a few hundred dollars.

5. Why can’t the deposit be paid to the seller instead of the seller’s agent?

If the seller goes bankrupt or disappears with the deposit, the buyer is not protected. When the deposit is held by the real estate brokerage, it is in trust and is also protected by insurance so even if the brokerage goes bankrupt, the buyer can get their money back.

6. If the buyer is not satisfied with their home inspection, how can a seller refuse to release the deposit back to the buyer?

This happens more than you think. Real estate deposits cannot be released unless both the buyer and seller agree. If a seller believes that the buyer did not act in good faith in trying to satisfy their condition, whether it is a home inspection, financing or a condominium status certificate review, they can refuse to release the deposit. This means it stays in the broker’s trust account until a judge decides who gets it, which can take years. As a precaution, buyers should consider making two deposits in their offer, a small one of say one per cent when the offer is accepted, and a second larger deposit once the condition is satisfied.

Be serious and understand the rules about deposits before you sign any real estate contract. It is expensive to change your mind later.

— Credits for this article go to MARK WEISLEDER Real Estate Lawyer, Author, Speaker

Billions spent in new construction, renovation, and infill over the past decade have contributed to a serious upswing in the calibre of the Canadian housing stock, propping up residential average price in the country’s major centres, according to a report released today by RE/MAX.

Since 2000, the value of a Canadian home has doubled, rising from $163,951 to $339,030 in 2010. Nowhere has the upswing been better captured than in both the value of residential building permits issued nationally between 2000 and 2010—at $340 billion—and the estimated $450 billion spent in renovation. The impact of these two forces alone has fuelled the Canadian residential real estate market – as well as the construction industry—for more than 10 years.

As a result, investment in the Canadian housing stock is at an all-time high in the 16 Canadian residential real estate markets examined in the RE/MAX Housing Evolution Report. Higher quality Canadian housing translated into extraordinary price appreciation across the country—with 62 per cent (10 markets) experiencing increases in excess of 100 per cent since 2000.

“While a number of external variables were also behind the exceptional gains, revitalization—amid an aging housing stock—and newer construction are largely underestimated factors supporting Canadian housing values,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “The trend is expected to continue for years to come as investment in residential real estate through renovation, infill, and redevelopment ramps up across the country. City planners, builders, developers, and homeowners have only just begun.”

The report found that the unprecedented sum funneled into housing has effectively changed the landscape of Canada’s major centres. New home construction has advanced suburban sprawl, giving rise to new sought-after pockets in virtually every centre across the board.

Infill continues to redefine neighbourhoods, particularly in areas where the value of existing structures have not kept pace with escalating land values. The trend was evident in all centres, but had the greatest impact in large metropolitan cities such as Toronto and Vancouver. Bungalows on large lots are prime targets, making way for custom builds that transform working-class subdivisions of yesteryear into up-and-coming upper-end pockets. Infill is also maximizing land potential, often replacing one, two or several tired structures with a block of town homes or mixed-use residential, even high-rise apartments.

“Renovation has also had a tremendous impact on housing throughout the decade, so much so that it’s emerged as, arguably, Canada’s next national past time,” says Polzler. “Residential renovation spending has been gaining momentum year-over-year since the early part of the decade and now exceeds $60 billion annually.”

The trend has not been limited to single-family homes—although that activity has been nothing short of remarkable. Canada’s cities have also mounted ambitious renewal of their own, particularly in the heart of most major centres—the urban core. Strategic smart growth plans are altering cityscapes, challenging our concepts and perceptions—including our purchasing patterns—and creating partnerships that are working to escalate our markets to world-class status. Non-residential construction, including infrastructure spending has had a positive secondary impact, in turn boosting spending on the residential side.

“The past decade has also marked the rise of the condominium—moreover, its undeniable acceptance as an attractive option as opposed to a secondary compromise,” says Polzler. “Toronto, for example, has become the largest condominium market in North America. Yet, it isn’t just gaining traction in large centres like Toronto, Ottawa and Vancouver, but also in smaller cities such as Kelowna, London and Halifax—to name a few. Running the gamut from entry-level units to upscale, luxury suites, condominiums have gained widespread appeal with aging boomers, looking for lifestyle and low maintenance; young professionals, attracted to trendy locales; and first-time buyers, looking to get their foot in the door to homeownership.”

Condominiums have changed the urban landscape, driving residential neighbourhoods up, instead of out, and bringing to market a bevy of new options from mixed-use residential, live-work studios, lofts, town homes, and condo bungalows. Town homes, in particular, have experienced a serious rise in popularity, bridging the gap for empty-nesters and retirees not yet ready for apartment-style living.

With construction of rental product few and far between in many Canadian centres, it’s no surprise that investors have also been particularly active in the condominium market, especially in college/university towns or where vacancy rates remain tight.

Redevelopment holds the greatest potential for cities on the cusp of exciting rejuvenation. While former brown fields can present challenges, many have opened up and revitalized entire areas. The Barrel Yards Development in Kitchener-Waterloo, for example, is expected to change stagnant industrial land into a bustling residential, commercial and retail hub. Past successful transformations include Garrison Woods in Calgary, the Hamilton Beaches in Hamilton and Bishop’s Landing in Halifax, with countless projects planned nationwide in the years to come. Conversions also continue to breathe new life into existing structures with good bones, while supporting the move to higher-density and the introduction of affordable options.

“Greater sustainability overall, keeping the urban lifestyle attainable, livable and attractive at all price points, depends on redevelopment,” explains Polzler.

Lastly, population growth has been a key factor making housing evolution possible. Since 2000, Canada’s population has experienced double-digit growth of 11 per cent. By 2031, over 42 million people are expected to call Canada home.

“There’s no question that population growth will continue to support investment, propping revitalization and new construction in the years ahead, and by extension raising the bar and prices in real estate markets even further,” says Polzler.

RE/MAX is a leader real estate organization and Canadian housing with over 18,500 sales associates situated throughout its more than 700 independently-owned and operated offices in Canada. The RE/MAX network, now in its 38th year, is a global real estate system operating in 80 countries, with over 6,200 independently-owned offices and over 89,000 member sales associates. RE/MAX realtors lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management. For more information, visit: www.remax.ca.

Grant from Government of Ontario, Canada to First time home buyers

I am a first time home buyer in Ontario Canada BUT this is not a NEW home, this is Resale/used or old home , will I still get some Grant from Government ?
YES !!

Land Transfer Tax Refund for First-Time Home Buyers in Ontario, Canada

First-time homebuyers may be eligible for a refund of all or part of the tax.

• For agreements of purchase and sale entered into before December 14, 2007, the refund only applies on the purchase of a newly constructed home.
• For agreements of purchase and sale entered into after December 13, 2007, the refund applies to all homes, whether newly constructed or resale.

How much is the Refund?

The maximum amount of the refund is $2,000. If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Revenue. No interest is paid on this refund.

Who Qualifies?

To claim a refund, you:

• must be at least 18 years of age;
• must occupy the home as your principal residence within 9 months of after the date of transfer; and
• cannot have owned a home, or an interest in a home, anywhere in the world.

In addition:

• your spouse cannot have owned a home, or an interest in a home, anywhere in the world while being your spouse; and in the case of a newly constructed home, you must be entitled to a Tarion New Home Warranty.

How Do I Apply?

Qualifying taxpayers may claim an immediate refund at time of registration in one of two ways:

• If registering electronically, by completing the required statements under the “explanation” tab of the electronic affidavit.
• If registering on paper, by filing an Ontario Land Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes at the Land Registry Office.

What is the application deadline?

• Applications for a refund must be made within 18 months after the date of the transfer.

If application was not made at registration and the tax was paid, qualified purchasers may apply for a refund by completing an Ontario Land Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes and send it to the ministry.

For full details on the refund program, please see Ontario Tax Bulletin LTT 1-2008 Land Transfer Tax Refunds for First-Time Homebuyers.