Real Estate Moments

News Flash!

2011-08-15T13:31:00.000-04:00

Our business is expanding. As part of our ongoing effort to better service our clients, we have expanded our business to include property management. To read more about our management services visit our web page at http://www.kellysuccess.com/Property_Management/page_2471745.html or call me directly at 613-859-0100. Now is a great time to hold investment property. We will help make the process profitable and hassle free!

Canadian Real Estate Statistics

2011-02-21T13:57:00.000-05:00

Here are some Canadian Real Estate Fun Facts:

The expected national average home price for 2011 is $343,300
Since 2000 home prices have increased by almost 7% per year
Real Estate accounts for over 40% of a homeowner's assets
Our new listings vs. sales on the market is currently hovering at 52%. This puts us in a balanced market.

We are posting new listings every week. Check our www.kellysuccess.com and www.waterviews.ca

News Flash!

2010-10-20T12:13:00.000-04:00

The Real Estate Industry certainly is getting lots of media coverage these days. By the end of October I will be able to publicly discuss the competition bureau issues. It will be nice to have that one behind us.
Two other topics that have received less coverage but offer equal confusion to consumers are the HST and The Mandatory Energy Audits. We receive many questions from consumers unsure of what HST is applied to. HST is not applied to the purchase price of resale homes of any price. HST is applied to realty commissions, lawyer fees, home inspector fees, etc. The mandatory home energy audit was proposed for Ontario resale properties by the Ontario Ministry of Energy. This proposal would have meant that homeowners would have to pay for an energy audit prior to listing their house for sale and post the results with the listing. This concept is problematic on so many levels. Energy audit companies were thrilled as they have seen a steep decline in audits as the government grants dry up. However, realtors and homeowners saw this as a bad policy that would be difficult to interpret and implement. After the Ontario Real Estate Association lobbied strongly against the audits the plan was completely scrapped. You can learn more at http://www.orea.com/ and click on OREA issues under the government relations tab.

A Balanced Market in Ottawa and Area

2010-08-26T11:19:00.000-04:00

Tip of the Month (as featured in next month's Humm newspaper)

2010-02-17T18:00:00.002-05:00

Interesting fact: I keep adding funny additions to Patrick's photo without his knowledge. Keeps the "spice" in our partnership, don't you think?!

Investment Properties

2010-01-17T16:02:00.000-05:00

Recent low interest rates and a volatile stock market may have you wondering whether investing in real estate is a good addition to your portfolio. Investment real estate properties can be a fantastic opportunity based on equity appreciation and positive cash flow. There are a variety of different investment options depending on the type of risk and property management you choose. Some of the options are traditional yearly lease rentals, student rentals, room rentals, vacation rentals, and executive business stay rentals. Each option has a different combination of financial requirement and time commitment. An important factor is monthly cash flow. We are of the opinion that there should always be a positive monthly cash flow and a consideration for future increases in interest rates for the investment to make financial sense. This is where a professional opinion is important; rental rates have not increased at the same rate as the resale values in some neighbourhoods. Finding the right combination of purchase price and rental return is not necessarily possible in all neighbourhoods. An experienced real estate salesperson can give you information on rental rates, vacancy rates, property selection, and a projection of cash flow and return on investment. With research and the right business partners, investment properties can be interesting, exciting, and lucrative.

2010-01-06T09:09:00.001-05:00

To Date The Craziest Real Estate Request

2009-11-13T18:03:00.003-05:00

I am looking to beat this crazy real estate moment but, to date, nothing has topped it!

I was asked by a seller to write into the contract that she could return to the property to dig up her husband who was buried in the garden. No joke! The seller is a lovely lady who I really admire but I could not bring myself to include it in the agreement of purchase and sale. I believe her husband left with her prior to the closing.

For Sale By Owner

2009-11-12T09:24:00.002-05:00

It was suggested that I write my comments on the perils of attempting to trade in real estate as a private seller or buyer. This is a tough one for me as the potential for looking like I am offering a biased, whining opinion is great.
That said, I always appreciate clients who say "I wouldn't have my dentist fix my car, I think my most valuable investment, my house, should be handled by a professional also".
Prior to obtaining my real estate license, I bought and sold my own homes without proper representation. I thought I had all the information I needed by looking at the houses that sold in my area and looking online at the houses for sale. When I sold my house I had no idea what information I was supposed to disclose and what I should not. I had no idea how to protect my family from potential future lawsuits. I had no idea what strategy I should plan for negotiation based on all the factors involved. (I find that this is where many FSBO sellers fail miserably. They could have sold their property ten times over if they had only known how to properly negotiate the sale.) I also didn't weigh out the complication of dealing with two different lawyers (mine and the buyer's) and the additional costs associated with that as the lawyers were doing a lot more leg work and paperwork.
When I purchased my house I didn't bother to get my own Realtor to represent me. When I look back on it, that was probably the dumbest decision. Selling my house privately was the result of a neighbour offering to purchase my house so it was an opportunity I jumped on. When it came to buying I had options and I didn't think through those options due to my lack of understanding about the real estate world. Without representation I was only guessing at what the best price would be for my "fixer upper". I also didn't opt for a home inspection and didn't fully understand the many upsides of going through with that. The listing realtor didn't give us any indication of what comparable homes were selling for so we had no idea whether what we were paying truly was a "deal". We bought with the plan of doing extensive renovations, however, we were not advised on whether, once we had put $250,000.00 into the house, we would be able to increase the value of our property by that amount. This is another one of the biggest mistakes people make. They buy without advice on the potential future value of a property. I can honestly say that I have NEVER seen a case where the buyers saved money by purchasing through the listing Realtor and not having their own representation.

I could go on to discuss all the horror stories I have encountered when representing buyers who are purchasing a FSBO property but I would prefer to leave it to people telling their own stories.
I welcome you to comment on this post with your own FSBO stories.

The Agreement

2009-11-10T17:29:00.000-05:00

A very interesting discussion today with a local real estate lawyer. (Yes, real estate lawyers can be interesting-I'll save that for another post).

There is always lots of discussion with buyers and sellers about chattels and fixtures. Chattels are items in the house that are not securely attached (the dining room table, for example). Fixtures are securely attached (ceiling lights, for example). Fixtures do not need to be listed in a purchase agreement but chattels do. Of course, I live by the rule of when in doubt write it out.

Privately held mortgages: Few people realize that if they have a second mortgage or a privately held mortgage selling their property can be problematic. Only institutional mortgages can be carried over on the closing date of the transaction. This means that, if the seller has a private mortgage, the entire amount of the loan has to be paid back a few days before the transaction closes. The seller may have great difficulty finding the money to pay it off in advance and may not find out this is an issue until after the sale agreement has been signed.
I, for one, will be asking sellers who holds their mortgage to avoid this nasty scenario.

This lawyer said that he doesn't think we should be asking for surveys of the property anymore. He says that it is better to take out title insurance and have the insurance cover any issues. If one has the survey and it shows any potential problems then the insurance will not cover it. Hmm.

I love my job; it is always interesting.