I don't think I could have said this any better...Thanks Mark!!
Realtors already back more competition
Toronto Star Mon Jun 6 2011 Page: B2 Section: Business Byline: mark weisleder
As I read the latest application by the Competition Bureau against organized real estate, I thought of then great line used by Ronald Reagan when he won the debate over Jimmy Carter in 1980: "There he goes again," or in the commissioner's case, "there she goes again." Let me start by disclosing that besides being a lawyer, I also educate buyers, sellers and real estate agents on how to safely buy and sell a home.
In the first application, launched in February 2010, the commissioner, Melanie Aitken, decided to go public with a complaint about access to Multiple Listing Service (MLS), even though she was told that the real estate boards across Canada were in fact meeting to clarify their rules to permit access.
The boards clarified their rules in March 2010, permitting access to the MLS system without having to use a real estate firm for the entire transaction. Still the government persisted in their court application, until the matter was settled last October. The settlement was exactly what the boards implemented the previous March. In my opinion, the whole process was a waste of taxpayer money.
Now the competition bureau states that the rules of the Toronto Real Estate Board prevent private brokerages from setting up virtual offices, denying Canadian consumers more choice when buying real estate. They point to selective data from the U.S. on the issue, but conveniently leave out the rest of the important U.S. data.
In the U.S., buyer agent commissions are normally 3 per cent. Some real estate brokerages, such as redfin.com,
When Redfin started around nine years ago, it advertised that if a buyer found a home on its site and decided to use a Redfin agent, Redfin would give back 2 per cent of the 3 per cent buyer commission, so the actual commission payable by the buyer would be 1 per cent. Redfin lost a lot of money.
Today, Redfin advertises that buyers can get back "up to 50 per cent" of the buyer agent commission when they use Redfin. I get nervous when I see the words "up to."
That means a minimum buyer commission of 1.5 per cent and possibly more. In addition, the National Association of Realtors has released results for 2010 that show that even with all of this information available to buyers, only 10 per cent of real estate deals in the U.S. are done without a realtor.
In Canada, buyer commissions are negotiable, but in many regions, they are 2.5 per cent. So I suppose the commissioner is looking at potential savings of at most 1 per cent, without taking into account all the rest of the services provided by buyer agents.
The Toronto Real Estate Board is legitimately concerned about how to protect the privacy and integrity of all listing information, before permitting it to be used on private websites.
We have already witnessed situations where listing information has been fraudulently posted on Kijiji and similar websites, and unsuspecting buyers or tenants are paying money to intermediaries who claim to be representing the seller or landlord.
Personal information could conceivably be taken and used by fraud artists who commit identity theft. I understand that the real estate board intends to adopt new policies to make sure that when this private information is used by a registered brokerage on their own private website, they agree to follow all of these guidelines.
Sellers will have to be informed that when they list their property, it may appear on these other private websites as well.
In particular, every consumer who visits these private websites will have to enter some personal information themselves, such as a legitimate email address, so that there is a record of who is using the site. This should work to discourage the fraudsters.
I expect that these new policies will be implemented by the Toronto Real Estate Board by the end of the summer, with no need for any further taxpayer-funded competition tribunal proceedings, where only lawyers make money.
Finally, why would anyone look to the U.S. housing market for guidance or leadership on anything? This is the same market that almost caused the collapse of the world's financial system two years ago and is still at historic lows.
Last time I checked, the major oil companies were all charging virtually the same price per litre of gasoline, give or take half a cent per litre. Madame Commissioner, why not do Canadians a favour, and look more closely at the obvious companies that appear to be fixing prices?
Mark Weisleder is a lawyer, author and speaker to the real estate industry. If you have any questions about real estate issues, email mark@markweisleder.com
Well, I’ve been reading about it and have been Tweeting about it (Twitter - @DonMillsAgent) for months and finally...We can “Expect More, Pay Less” now that Target will be hitting the GTA by Spring 2013.
The six Toronto malls, who seem to be ready for a shot in the arm (or a kick in the pants!) will include: Shopper’s World - Victoria Park & Danforth, East York Town Centre – Overlea Blvd., Bridlewood Mall – Warden & Finch, Centre Point Mall – Yonge & Steeles, Woodbine Centre – Hywy 27 & Rexdale, and Cloverdale Mall – Dundas & The East Mall.
I remember visiting most of these Malls as a kid. And they were “tired” looking, years ago. I think it’s very exciting for our communities to have a renewed interest and hopefully a facelift to these old buildings.
I also recall visiting another Mall as a kid, Don Mills Shopping Centre. As you know, this is now the new Shops at Don Mills, which has virtually transformed an entire community. Not only is the demographic rapidly changing, we are also seeing new development, better infrastructure and a desirable area that people want to move into.
For all you Buyers (and Investors) out there who want to get into an area that is, or soon to be, on the upswing...I would recommend looking around these six Toronto Target Locations. Idont think that you will be disappointed is 5 – 7 years.
For more information on the Real Estate Market in these areas, get in touch with us!!
Your experience in finding your new home is about to get easier thanks to TREB’s new Re-Districting of Toronto’s MLS.
On July 5, 2011, TREB will launch a new District structure which will replace the existing TREB Districts. The goal: To improve the search capabilities within the MLS®, and move from a district mapping system based on a “zone” identified by code numbers (C01, C02 etc.), to one identified by commonly known names and true geographic areas that are more easily understood by both Members and Consumers (Annex, Trinity-Bellwods etc).
In place of the old Areas (Central, West, East and North) and Districts (e.g. N01, N02, N03…), the new three tiers of address criteria will include Area (Regions, Counties, Provincial Districts or equivalent), Municipality (City, Town or equivalent) and a new field for Community (Neighbourhood).
So, for example if you wanted to live around Yonge and Finch we now are able to properly define your neighbourhood. Instead of searching C07 and/or C14 (depending on if you wanted to be east or west of Yonge) we can now search Willowdale – east and/or west, as well as Newtonbrook – east and/or west.
A recent survey found that Canadians who are 18 - 34 years old are planning to buy their first home next two years. If you are one of those Budding Buyers, here are a few tips we think you should keep in mind:
Don't Blow The Budget: You only take home so much money...so, if you think you can afford your place ask yourself; What will I do if my roof leaks? Where will I sit to eat my dinner? Or maybe you should ask...can I afford to eat dinner?
Work Backwards: Don't look for your home and not know if you can afford it or even if the bank will mortgage you. Start at the other end...meet with your lender (Bank or Mortgage Broker), and determine your purchasing power. Once you understand how much you can afford, then meet with us to show you the options.
Don't Be House Poor: We're not talking about the actual mortgage payment, consider the cost of maintenance and the increasing costs of utilities. Here's our on-line calculator to help you figure it out.
Stay Flexible: Discuss with your Lender your payment options. You should have the opportunity to double up and/or make a lump sum payment on your mortgage annually. Remember, having this opportunity will save you thousands in interest.
Consider you Closing Costs: Account for 1 -2 % of the purchase price of your home for closing costs. We recommend that you build this into your budget. As well, set money aside for utility hook ups, moving your phone and cable, new appliances if you feel you need them and the cost of a mover. This might include a case of cold ones and a couple of pizzas for your helpful friends!!
The Section on our Website, "Buying Your Home", has more information to help you understand and plan for the Purchase of Your New Home. As well, we have a direct link to properties listed for sale on the MLS system.
We recommend that you study the market. Although you are able to see a home's listing price, you may never know what it actually sold for. This is where we can help!
Drop us a line and we can discuss the neighbourhood you looking in and we will provide you with Real Time Data.
Last week, BMO Capital Markets published a Special Report about the impact of our upcoming Federal Elections on our Canadian dollar.
Analyzing the last 12 elections they observed the following:
There was no clear pattern in the net changes in the exchange rate.
There was an apparent pattern, all be it ever so slightly, when the outcome of the election was a change in government.
The net change between the start of the campaign and the day of the final vote often hid compelling campaign movement.
There were 6 times when there was net depreciation noted and our Loonie was trading stronger in 3 campaigns.
In most of the cases, the net change that was experienced during the election was reversed altogether during the same time period following the vote.
Currency volatility did rise and 7 out of 12 times, volatility progressed higher immediately following the election period.
Their Conclusion:
It’s a flip of the coin whether our Dollar will strengthen or weaken. It’s the global economy that will more than likely play the big role in the loonie’s path. However, they BMO indicates that “the odds are that volatility will increase, if history is any guide, and history has been a perfect guide since the mid – 1980’s.”
The Current Election:
The latest polls are suggesting that the Conservatives will win the most seats. It is unclear if they will take a majority or another minority. Regardless of the outcome, the markets will want to see from the Conservatives and the Liberals is their deficit reduction plan.
Canada is in a position of fiscal strength, as viewed on the Global Market however, the polls could easily change. What everyone is waiting the see is the outcome, not the result.
It’s going to interesting to watch as the election unfolds.
There was a significant decrease in Consumer confidence this March as more and more Canadians are feeling worrisome about their finances.
The Conference Board this month said that numbers declined significantly to 83.7 from February’s number of 89.3. The Board said that approximately one-quarter of Canadians indicated that their finances had worsened over the last six months. Less than 1% of Canadians felt their finances improved.
It seems the driver (pardon the pun) of this discontent is the rise in fuel prices. This is affecting almost every facet of our life right now...putting actual gas in the car to the cost of moving our groceries to our stores.
Remember this time last year? We were paying $1.031 per litre at the pumps...today I filled up at $1.236....and all I keep thinking is “Thank goodness I have a 4 cylinder!”
The upside is that interest rates remain low. So, if you’re one of millions of Canadians who have mounting consumer debt that’s taking over your cash flow perhaps you should consider consolidating.
If you need help in crunching the numbers, figuring out what your home is worth, determining how much equity you have...and need someone who can objectively set you on the path to recovery....drop us a line.
We will take time to go through the info, determine your home value as of today, and introduce you to several professionals who can help with the consolidation...it’s all part of what we do!
No need to go to the store to find some supplies for spring cleaning...just open your cupboard doors. And, don't forget...your appliances NEVER get a day off!
Eliminate odours by pouring vanilla extract into a bowl and with a paper towel, wipe down the refrigerator walls.
Remove crisper drawers, glass and/or wire shelves from the refrigerator and soak them in warm soapy water to remove stains and spills.
Take care of your dishwasher by running it empty with 1 cup of vinegar...sure to get rid of food residue.
Warm sudsy water can easily clean the wire racks in the oven.
Easily defeat the garbage disposal ordour by placing a handful of ice cubes and citrus peels in the disposal. Turn on the cold water and run the disposal for about 20 seconds. Turn everything off and run hot water for about 15 seconds to rinse.
Wipe down the interior of your microwave with one quart of water mixed with 2 tbsp baking soda.
To avoid your appliances getting that tinge of yellow, sponge on 4 cups warm water mixed with 1/4 cup bleach and 1/2 cup baking soda. Leave on for about 10 minutes then rinse and dry.
Clear condenser coils behind the fridge with a brush or vacuum to remove dirt, dust and pet hair.
Simple, quick and inexpensive ways to make your appliances smell fresh for many springs to come.
To all the discouraged first-time buyers: yes, been there done that. There was a time in our lives, as a couple, where it seemed impossible to own a home. It seemed like everyone else was able to buy a little piece of land but us. We were careful with money (have always been), we were working very hard but nothing would break. With time it finally happened and we bought the home we could afford. It was not our dream home but it got our foot in that RE market.
The one thing to always remember: Real Estate is not a race. These things take time. As well, you don't always know the financial situation of other buyers out there. They may have tons of cash in the bank, or they may be borrowing from Peter to pay Paul, or they may be getting help from family members.
Often, people will not say how they came up with money or how they were able to save to buy their first home. That's ok. Just keep in mind that you don't always know the whole story. If you are doing it on your own and saving for a house, it will take time. We took forever to save that cash. Of course, I sometimes wish we had bought when we first met... back in 1994. Imagine how much we would have made by now if we had bought then and sold it in today's market. But who had any money then?! It's all about timing and being patient.... So just KEEP SAVING.
As well, talk to someone you trust who can look at your account: debts, expenses, etc. We still meet with our accountant to go over our "books" to help us spot any areas where we might me overspending or not being as careful as we could be.
The Canadian Real Estate Association stats are out for February.
As expected, the numbers are stronger than usual. Mainly due to the fact that Buyers are still taking advantage of record low interest rates.
The report shows that the mortgage market in Canada cannot duplicate a US style of crash. There are 4 main reasons why:
Insurance on mortgages are guaranteed in Canada. This limits high risk exposure for banks.
Laws for recourse mean that fewer borrowers walk away from their mortgage.
Our government has backed 30% of mortgages which provides a stable and liquid source of financing.
Canadians are "relatively conservative, with leverage ratios only just matching the levels of a significantly deleveraged US household."
Canadian home sales as a percentage of housing stock remains below the 10-year average, “suggesting the turnover is not excessively speculative."
Housing starts in 2009 and 2010 have averaged around 160,000, “just below the natural formation rate of around 170,000."
“Most importantly – economic conditions in Canada continue to improve. The employment levels are above pre-recession levels, wages are growing and financial conditions remain very easy.”
