Archive for November, 2009

If you have spoken to a Realtor about buying a home, you should be familiar with the Buyer Representation Agreement. Like any contract, the Buyer Representation Agreement outlines commitments that your agent promises to make in exchange for commitments you promise to make. Under this Agreement, agents are committed to provide you with the following duties: LOYALTY, OBEDIENCE, DISCLOSURE, CONFIDENTIALITY, REASONABLE CARE AND DILIGENCE, and ACCOUNTING. In exchange, buyers commit to ensuring the agent is paid for services rendered (Note that in most cases, the payment is usually paid by the seller). Legally, realtors are obligated to discuss buyer agency with potential clients at the earliest opportunity.

When I first learned about Buyer Representation Agreements I wasn’t convinced they were really in the best interest of buyers. You can argue that realtors like Buyer Representation Agreements as they bind buyers to them and ensure they get paid regardless of the service they provide. I agree to a certain extent but have quickly determined that as a professional realtor, establishing a Buyer/Agent relationship is the only way I will do business. Here’s why…

As a realtor I meet a lot of people who are looking for information on the Oakville housing market. I receive several emails and phone calls and am happy to spend time discussing real estate issues with potential clients (really I am) but like everything else there is a limit to the amount of hours in my day. Despite what many people want to believe, real estate is much more than setting up appointments and opening up doors. I say this with the utmost honesty as someone who knows the pressures and stress of a corporate job. There is no way I would have chosen to switch careers if I thought the advice of a realtor could just as easily be learned through an MLS or Google search. No one understands the nuances of the local market, future development plans for an area, the art of negotiation, school issues and make-up of specific neighbourhoods like an intelligent, diligent local realtor.

I spend hours upon hours working for my clients and several more keeping up to date with current real estate and housing information. My first priority is to my clients and in order to provide a level of service that I am proud of, I limit my interactions to clients first and prospective clients second. To be brutally honest, I just don’t have time to dedicate the kind of service buyers deserve (sometimes for months at a time) without any kind of commitment of loyalty from them. For me, the Buyer’s Representation Agreement solidifies my commitment of excellence and priority status to you in exchange for your commitment of loyalty to me.

When explained this way, I find that most people have no issues signing the agreement, leading to a relationship built on trust and service. It is the best way I know how to do business. I question buyers who believe that they will somehow get better service or a better deal without using a committed Buyer’s agent. I simply do not understand how they think they will get first class service and advice without any kind of commitment (on either end). Like most things in life, you get out what you put in. If you believe realtors are transactional type people who simply book appointments and unlock doors then you can easily find one that will be willing to provide you with minimal service for minimal commitment. If you expect more out of your realtor, then take your time, find a realtor you trust, have them commit to you, and be willing to commit to them. If you do so, you will be impressed by the advice and expertise you gain from the experience.

Questions or comments? Feel free to comment below, email me at lindsay@remaxaboutowne.com or call me at 905.338.9000.

Regards,

Lindsay

I am a bit of a learning junkie.  If I could, I would spend hours reviewing current events then spend several more discussing them with family and friends.  My husband jokes that dinner with me is a two hour affair as it takes me that long to tire of discussing the day’s events.

I recently watched an episode of Allen Gregg’s program on TV Ontario that I think is worth sharing with you.  The program is focused on financial planning in general however several points are made about real estate investing, most people’s largest investment.

At the very end of the clip (around the 24 minute mark), financial guru David Bach gives his take on realtors which of course made my ears perk up.  Below is the full clip, enjoy!

Luxury homes sales continue to accelerate as economic recovery takes hold in major markets in Ontario and Atlantic Canada, according to a report released today by RE/MAX.  Below are the details of the full press release.

The RE/MAX Upper End Report found that momentum is building in St. John’s, Saint John, Halifax-Dartmouth, Ottawa, Kingston, Greater Toronto, Hamilton-Burlington, and London as purchasers realize that the best buying period in recent history is about to come to a close.  Sales are already on par or ahead of last year’s levels in 50 per cent of cities surveyed, while the remaining markets are set to reach 2008 figures by year-end.

“Twelve months of healthy home buying activity have clearly been crammed into five short months,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada.  “It’s hard to believe that the transition in the market began in May. We’ve seen steady upward momentum since that time, with solid year-over-year gains posted each and every month.”

Pent-up demand and greater affordability have been the catalyst.  Increased selection in all markets—except Greater Toronto—as well as record low interest rates have also helped fuel move-up activity from Ontario to Newfoundland.

Leading in terms of sales appreciation is London, Ontario where the number of homes sold, priced in excess of $500,000, has climbed 11 per cent from January to September 2009, compared to one year ago.  Greater Toronto and Ottawa both reported a one per cent increase in the number of homes sold in the top end during the same period.  Within the GTA, Richmond Hill/Thornhill is particularly heated, with sales up 24 per cent over 2008 levels, followed by Mississauga— up 10 per cent.  St. John’s, Newfoundland is on par with year-ago figures.

Of the six markets reporting a year-over-year decrease in sales, four are off by just a handful of transactions (10 units or less), including Halifax-Dartmouth (off eight units), Kingston & Area (off three units), Toronto – West End (off 10 units), and Oakville (off five units).  Activity in the remaining two markets—Saint John and Hamilton-Burlington—is on the upswing, with the gap between 2008 and 2009 narrowing each month.

“A considerable shift is underway in the upper end,” explains Polzler.  “The price correction that we witnessed earlier in the year is over and prices have since firmed up.  Conditions are more balanced across the board or leaning toward seller’s territory once again.  The one exception is the Greater Toronto Area — now largely a seller’s market — with bidding wars making a comeback amid tight inventory levels.  The strength of the luxury segment is evident.  This is now a real estate market with all sectors working in tandem.”

Highlights:

• Upper end sales started to move upward as positive indicators of economic recovery began to emerge.  The momentum is expected to continue as Canada edges closer to positive periods of GDP growth in Q4 2009 and in 2010.
• Locals are fuelling luxury sales in the majority of markets surveyed.  Activity among out-of-province and international purchasers has waned from one year ago, although their presence in still evident in some markets.
• Sixty-one properties in Canada are currently priced over $10 million, with 18 of those located in Ontario.  The priciest Ontario home is nestled in Toronto’s prestigious Bridle Path area, listed at $23 million.
• Three hundred properties currently listed for sale are priced over $5 million in Canada.
• In Atlantic Canada, there are 22 listings in excess of $2 million—13 in Nova Scotia, five in New Brunswick and two in Prince Edward Island.  The most expensive property in Atlantic Canada is a $7.75 million estate on a bluff fronting the Atlantic Ocean on PEI’s north coast.

RE/MAX is Canada’s leading real estate organization with over 17,000 sales associates situated throughout its more than 677 independently-owned and operated offices across the country.  The RE/MAX franchise network, now in its 36th year, is a global real estate system operating in more than 70 countries.  Over 6,700 independently-owned offices engage nearly 100,000 member sales associates who 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.

October statistics were just released from the Oakville Milton Real Estate Board which confirms everything we are seeing in the press - the real estate market is really hot right now. Sellers are enjoying high demand for their homes with most selling close to or higher than list price.
Many people have asked me if the lack of listings is causing upward pressure on prices however as the stats show below, the number of listings is actually up 7% year to date. The real issue is that growing consumer optimism and historically low interest rates are attracting buyers to the point where demand is dramatically outpacing supply.

October Oakville Real Estate Statistics

It’s important for anyone thinking about buying or selling to look at the short, medium and long term economic forecast. Even with speculation that mortgage rates will start to rise, I’m not convinced that housing prices will come down anytime soon. For this to happen, we would need to see the economy plummet again and/or see a spike (both fast and dramatic rise) in interest rates.
For now, sellers and buyers should expect that homes in desirable neighbourhoods and in good condition will sell quickly and for top dollar. My advice for anyone thinking about buying or selling is to speak with a respected agent that takes the time to educate you on the current market. The right agent will give you the peace of mind you need on the biggest transaction in your life. And this my friends, is priceless.