Ben Officer-REALTOR®

I am posting this free information session on my blog so it can get the widest distribution. The REALTORS® Association of Edmonton is hosting this without REALTORS® present, to give you

a comfortable, informative session. No pressure.

Ben

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Home Buyers Seminar

Feedback from our last seminar - over 95% of registrants surveyed found the information presented at the Home Buyers Seminar useful, easy to understand and made them more comfortable about the home buying process.

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There have been a whole lot of changes in the Edmonton real estate market over the last little while. So as a perspective home buyer, where do you start if you've never bought a home before? Or what if it's been a long time since you last purchased a property? Do you know all of the steps required?

The REALTORS® Association of Edmonton is pleased to offer a free, no pressure Home Buyers Seminar to familiarize you with the home buying process. Representatives from the mortgage, home inspection and legal communities will be joining a REALTORS® Association spokesperson to present unbiased advice and information.

Join us on Tuesday, March 2, 2010 at 7:00pm at the REALTORS® Association of Edmonton Auditorium at 14220 112 Avenue. Light refreshments will be served.

Pre-registration is required. Click here to register. You can also contact the REALTORS® Association at 780-453-9350 for more information.

Your name and e-mail address are being collected to provide registration numbers and to remind you of the event (via reply e-mail) and the files will be discarded after the event.

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Ben Officer, CD REALTOR®

RE/MAX Real Estate (Edmonton)

The deadline for the changes that were recently brought in by the Canadian government to put some caps on sectors in the housing market is April 19th, 2010.

Now, that doesn’t mean some banks and lenders haven’t already implemented the changes in advance of that date.

One of the bigger changes was that CMHC (Canadian Mortgage and Housing Corporation) will not insure the mortgages of people who are buying properties that will NOT be owner occupied. Also known as Revenue Properties.

The theory that many investors followed was to purchase revenue properties with a 5% down payment, pay the CMHC fee, and have their tenants pay down the mortgage. With just 5% down, they had more money available to buy more properties.

Did or will that modus operandi cause the market to bubble? Maybe. Maybe not. I don’t know. All I know is, it made for more buyers, then more sellers could move on with their plans.

Should you try to find a lender that will still allow you to do the 5% down to beat the deadline? I suggest you take a hard look at what you want to accomplish. When you do have to renew the mortgage on a revenue property in say, 5 years, the rates will not be as low as they are right now.

Making the requirement to put a minimum 20% down payment on revenue properties was a sound fiscal move for the future, according to many analysts.

Planning and preparation is always prudent, no matter what the situation is.

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The inventory of homes is at a low-level right now in some segments of the Edmonton and St. Albert housing and condo markets. If you are waiting until “Spring” to list your home, give me a call now!

It could be to your benefit financially to sell your home before the spring rush.

Ben Officer, CD   REALTOR®

RE/MAX Real Estate (Edmonton)

February 24, 2010

Kelowna, BC – Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released today by RE/MAX.

The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16 markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.

“Affordability is the catalyst for the vast majority of purchasers in today’s housing market,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “While homeownership is still within reach in many major centres, levels are slipping. There is a growing sense, on both sides of the fence, that the time to act is now.”

Markets experiencing the tightest inventory levels include Toronto (- 41 per cent); Kitchener-Waterloo
(-33 per cent); Ottawa (- 30 per cent); Victoria (- 30 per cent); Greater Vancouver (- 27 per cent); Halifax-Dartmouth (- 19 per cent); London-St. Thomas (- 18 per cent); Regina (- 16 per cent); and Winnipeg (- 13 per cent). Conditions were still balanced, but starting to tighten in Calgary, Edmonton and Saskatoon, particularly in the single-family detached category.

The highest year-over-year sales gains were reported in Greater Vancouver (152 per cent), Kelowna (121 per cent), Greater Toronto (87 per cent), Victoria (69 per cent), Hamilton-Burlington (58 per cent), London-St. Thomas (55 per cent) and Calgary (47 per cent). Western Canadian cities dominated the list of centres with the highest increases in price appreciation. These included Victoria at 25.5 per cent, Kelowna at 22 per cent, Greater Vancouver at 19.5 per cent, and Winnipeg at 17 per cent. St. John’s (23 per cent) and Toronto (19 per cent) were also among the frontrunners for price growth.

“There have never been so many motivating factors in play at once,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “We’re in for a heated Spring market that will, in all probability, spill over into the summer months as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies.”

While buyers are taking advantage of favourable conditions, sellers too are reaping the rewards. Competing bids are a factor in the marketplace once again, with well-priced listings—especially at the entry-level price point—experiencing multiple offers. Properties priced at fair-market value will likely sell quickly for top dollar. The overall pressure on sales and price is significant across the board – and it’s not likely to subside unless more inventory comes on-stream.

“The level of frustration is growing, as pent-up demand builds,” says Polzler. “For every successful offer, there are those that will walk away empty-handed. They’re thrust back into the buyer pool and the process starts all over again. Some buyers are upping the ante, while others are considering alternate housing options. Still, purchasers remain cautious in their bids, with most careful not to max out debt service ratios.”

Recent revisions to lending criteria will add fuel to the fire in the short term. Buyers considering a variable rate mortgage will step up their plans for homeownership in the next month or so just to get in under the wire. In the longer term, buyers will adjust, but move forward. Compromise has long been a reality—particularly in the larger centers. This simply means they may go smaller or further in their pursuits.

“It’s been a 180 degree turnaround from this time last year,” says Ash. “It’s clear that real estate from coast to coast has roared back to life and markets are once again firing on all cylinders. The vast majority of markets are now recovered and fully-evolved, with all segments working in tandem. At the luxury price point, activity was brisk in seventy-three per cent of centers surveyed, with momentum ramping up in the remainder. Opportunity exists in some areas, but the question is for how much longer?”

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 37th 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.

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Ben Officer, CD   REALTOR®

RE/MAX Real Estate (Edmonton)

Canada Mortgage and Housing Corporation Insured Mortgages (CMHC)

February 16th 2010:

Jim Flaherty, Canada's Minister of Finance, announced new lending guidelines for CMHC backed mortgage loans in an announcement earlier Tuesday.

The new rules are as follows:

1.  All borrowers must qualify for a mortgage using the five year fixed rate regardless of the term chosen.

(Example: if you wish to take out a 1 year mortgage at 2.65% you will still need to qualify at the 5 year closed rate of 3.89%)

2.  When refinancing a home, Canadians will only be able to refinance up to 90% of the value instead of the previous 95%.

3.  If you want to purchase a revenue property, CMHC will no longer insure you. You'll need to put 20% down and take out a conventional mortgage.

These changes come into effect April 19th 2010.

What has NOT changed:

*  You can still purchase a property with 5% down!
*  You can still do a 35 year amortization!
*  You can still have GDS/TDS ratios up to 44% if you have a credit score over 680!

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I would like to thank Natalie Wellings of Mortgage Success (http://YourEdmontonMortgage.com) for itemizing this info.

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Ben Officer, CD   REALTOR®

RE/MAX Real Estate (Edmonton)

Recently I was asked the question: “Ben, should I keep my house fully heated after I move out and it’s vacant? I will be spending money to heat it for an hour or two of showings each day or two.”

My answer was quick and to the point. “How would you feel walking into a cold house and having to get cold feet walking around in your socks?” Not too kindly I bet.

(Also check with your insurance company, they may have rules that must be followed too)

I have shown houses on occasion that are listed and vacant in Edmonton and St. Albert, where the owner decided to turn the heat way down or even off completely. Boy does it get cold in there. And does it ever turn OFF a potential buyer.

They literally get a cold feeling for the house, right off the bat.

I suggest to my sellers:

1. Have the heat set to a normal temperature during any time the home may be shown.

2. Check to make sure the keys work properly in the locks.

3. Check that all the lights work and that the bulbs are not burnt out (check again every week or so)

4. Ensure the furnace filter is changed. It’s a sign to some, of poor home maintenance.

It’s best to sell your home before you move out but if it doesn’t please keep these points in mind.

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If your thinking of selling your home this spring, maybe you should think sooner rather than later. There is a shortage of homes available on the market right now. It might pay to get a jump on the spring market.

Call me to find out more.

Ben Officer, CD   REALTOR®

RE/MAX Real Estate (Edmonton)

I have recently been asked the question: “Ben, the different condos we’ve been looking at have either titled or assigned parking. What’s the difference?

Titled or Assigned Parking? It’s a big difference.

Titled parking means that you physically own the parking stall. You have the title deed to the parking stall.

And no it doesn’t mean you can build something on it. (They would probably frown on that and it might be a bit of hassle getting a building permit….)

What it does mean is that it has a value to it, it can be bought or sold, that it transfers like normal properties, and goodie…. it has a property tax bill.

Assigned parking generally means you are assigned a parking stall by the condo board/property management company. It is yours to use but not to own.

The type of parking stall and whether it is above ground or underground makes a big difference to a lot of people when they are looking to buy a condo. It also makes a difference on the value given to it.

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If you have any questions or are looking to buy a condominium/ house give me a call now.

Ben Officer, CD   REALTOR®

RE/MAX Real Estate (Edmonton)

There are dozens of ways to make your property more enticing to potential buyers. For example, you can invest in getting your home professionally “staged”, which involves making it look a little like a
model home. Or, you can do a major renovation to improve your home‘s look and value.

But what if you don’t have a lot of time and are on a limited budget? What can you do today to make your home irresistible to buyers tomorrow? Here are some ideas:

1. Paint

It doesn’t cost much to paint key areas of your home, like the foyer, kitchen or master bedroom. Yet the impression it makes on buyers is significant. In fact, compared to most other types of home
improvement projects, painting gives you the highest payback when you sell.

2. Create space

Homes naturally get cluttered over the years. Even a double car garage can seem claustrophobic if there are a lot of boxes, equipment and other items stored in it. Go through each room of your home and do a major decluttering. It will make your property seem more attractive and, when you sell, make moving easier too!

3. Clean and tidy

Obviously, you’re going to make sure your home is clean for viewings. But you’d be surprised what a homeowner can miss and a buyer notices. Closets, laundry rooms, side yard, basement
furnace room and all other nooks and crannies should be as tidy and clean as possible.

4. Roll out the red carpet

Not an actual red carpet! But you do want the entrance way to your front door and into the foyer to make the best impression possible. After all, those are the areas that a buyer sees first. Make sure
walkways are clear and clean. Ensure that when a buyer opens the front door and walks in, the impression he or she gets is that of a great looking place to live.

These four tips don’t take much time or money to implement. Yet, they can all help make your home even more irresistible to buyers than it is today.

Want more tips on preparing your home for sale? Call me today.

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Ben Officer, CD   REALTOR®

RE/MAX Real Estate