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Canadian Mortgage update (March 8th/2010)

March 8th, 2010 | Posted in Buying Edmonton Real Estate, Mortgages

There’s been a lot of speculation surrounding this change. The new qualifying rate has been a big question mark ever since the Finance Department announced its new mortgage rules on February 16.

The posted qualifying rate will be published by the Bank of Canada each Monday at approximately 12:01am Eastern Time.

Currently lenders use qualifying rates that range from discounted 3-year fixed rates (like 3.29% today) to posted 5-year fixed rates (5.39% today).

Going forward, mortgages with terms of five years or more will use the contract interest rate.

This is key because it suggests lenders will still be able to qualify insured 5-year fixed borrowers using heavily discounted contract rates (e.g.,  3.75% instead of 5.39%, as of today).

If so, guess which term is going to grow in popularity?  Yes sir; the 5-year fixed.  It’ll be the easiest term to qualify for, for people with borderline debt ratios.

CAAMP estimates that 30% of home buyers choose a 1- to 4-year term. With this new qualifying rate, some of those people will be forced into a 5-year term (and a very small number will no longer qualify at all).

Keep in mind, these changes only apply to mortgages over 80% loan-to-value, says CMHC.  So if you’re putting down 20% or more, you probably won’t be affected.

Based on the recent inquiries we’re seeing from concerned borrowers, there may be a rush to get applications in under the old rules.

This information is courtesy of:

Krista Rumberg
Mortgage Specialist
Krista@MortgageSimple.ca
www.MortgageSimple.ca

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Renovating Step By Step – Part 5

March 3rd, 2010 | Posted in Edmonton Home Maintenance, Selling Edmonton Home

Renovation, Step by Step

Step 6. Don’t worry about the mess

It’s no fun living on a construction site. In fact, if the renovations are major, you may want to consider moving out for a while. Of course, this isn’t always possible. Be sure at least to find out from your renovator what kinds of disruptions you can expect.

For example, water and electricity may have to be turned off, heavy equipment brought in, or sanding done at some stage of your project. As the work progresses, ask for specific dates and times so that you and your family can plan around them.

You’ll also want to negotiate the times workers start and finish each day, and whether they’ll work on weekends. Renovators often keep several jobs goings at once, especially during the busy summer season, so there may be days or even weeks between their appearances. These periods must be indicated in the renovator’s work schedule.

Be aware that renovating can be a dirty job, or at least a very dusty one. If you decide to stay in your house, remove all furnishings and personal items from the work site. If you can’t easily move something, cover it with a plastic sheet and seal it with duct tape.

Seal off doors to non-work areas and heating and ventilation ducts in the work area. Sealed-off areas will probably require a supplemental source of heat during the winter.

The Human Factor

A professional renovator and crew will always do their best to be considerate of your privacy and personal space. In turn, they will have certain needs, such as access to toilets, water and a telephone. Plastic runners leading to a toilet, water and a telephone will help keep your carpets and floors clean.

Tell your renovator what spaces and belongings are off-limits, and the times you do not want to be disturbed. If workers have habits that annoy you, discuss your concerns with the project manager or your renovator, not with individual crew members. If you allow smoking in your house, place ashtrays in the work area. Otherwise, ask workers to smoke outside.

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Investor Talks About CREA vs. Competition Bureau

February 26th, 2010 | Posted in Real Estate News Edmonton, Videos

Here’s a great interview with a real estate investor; talking about the current situation between CREA and the Competition Bureau. What I like about this interview is that he discusses it from the point of view of the consumer, rather than from the view of a Realtor or from the Bureau. He’s a savy and educated consumer, who brings a lot of interesting points to the discussion.

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Renovating Step By Step – Part 4

February 24th, 2010 | Posted in Edmonton Home Maintenance, Selling Edmonton Home

Renovation, Step By Step

Step 5. Get it in writing

Always get a written contract describing the work to be done, what it will cost and how payments will be made. Never agree to anything before you have it in writing.
Your Responsibilities:

  • Decide what’s to be done
  • Choose materials and products as required
  • Select the renovator or design firm
  • Ensure the contract describes the job completely and correctly
  • Obtain zoning approval and building permits
  • Provide workers with the necessary space, access and utilities
  • Inform the renovator about deficiencies or mistakes as soon as possible
  • Pay for the job once it has been done to your satisfaction
Your Renovator’s Responsibilities:

  • Be licensed
  • Perform work as contracted, unless changes are authorized in writing
  • Maintain liability and property damage insurance, and workers’ compensation
  • Hire skilled workers
  • Pay workers, suppliers and subcontractors
  • Oversee the quality of work
A Smile and a Handshake Just Aren’t Enough

Without an agreement on paper, there’s little you can do about poor or incomplete work. You risk being charged more than you expected, and it’s unlikely you’ll get any warranty or after-sales service.

Professional contractors always provide customers with a clearly written contract. Once signed by you and your renovator, it’s legally binding. So make sure that what you sign describes exactly what you want. Most client-renovator disputes occur because there was no contract,
or because the contract was vague or incomplete.

If you have any doubts or questions about the contract, have your lawyer review it before you sign. If your renovator refuses to accept a written contract, get another renovator.
The Main Ingredients

There’s no such thing as a standard contract. Every one is an individual document covering special requirements. That said, all contracts should include:

  • The correct and complete address of the property where work will be done
  • Your name and address
  • The renovator’s name, address and telephone number (if a corporate name is used, the company’s official on-site representative should be named)
  • A detailed description of project, plus sketches and a list of materials to be used
  • The type of work that will be subcontracted
  • The right to retain a mechanic’s lien holdback as specified under provincial law
  • A clause stating that work will conform to the requirements of all applicable codes
  • Start and completion dates
  • Agreement about who is responsible for obtaining all necessary permits, licences and certificates — the homeowner or the contractor
  • Responsibility of the contractor for removing all debris as soon as construction is completed
  • A statement of all warranties, explaining exactly what is covered and for how long
  • A statement of the contractor’s public liability and property damage insurance
  • Price and terms of payment.

Both you and the contractor should sign two copies of the contract, one for you and one for the contractor.
In the Real World

No matter how well you plan your project, changes will probably be necessary. These can result in increased costs and delays. To protect yourself and your contractor, changes should be made only through a written change order detailing what’s involved and the associated cost differences.

Money Matters

Your renovator may ask for a deposit on contract signing, especially for larger jobs. If so, it should be a nominal sum unless special items or materials have to be ordered.

Paying by cheque is another important part of getting it in writing. It gives you a record of what you have paid, and what you have paid for. You should also insist on a signed receipt.

Pay only for work completed, and never for the full amount. Holding back some of the money from each instalment protects you against liens that can be placed on your property by suppliers or workers unpaid by the renovator. Liens hold your property as security for the renovator’s debts — even if you have paid the renovator in full!

You can guard against this by making out some cheques jointly to the renovator and supplier or workers, provided this is agreed to in the contract.
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Renovating Step By Step – Part 3

February 17th, 2010 | Posted in Edmonton Home Maintenance, Selling Edmonton Home
Renovation Step by Step

Step 4. Pick your partners

Many homeowners decide to do their own renovations. In most provinces, you may do so, provided you get the necessary permits, follow local building codes, and have the work inspected by the appropriate authorities.

Doing it yourself can save money, but there are other costs to consider. Are you prepared to draw up your own plans, get your own permits, and schedule inspections? How much time can you spend away from your regular job, your family, and other commitments? Can you be as efficient or as skilled as tradespeople who do this specialized work every day?

You may feel comfortable painting a room or removing an old fence, but specialized tasks that involve wiring, plumbing or heating systems are usually best left to professionals. Some municipalities, in fact, require certain kinds of work to be done by certified tradespeople.

There is also the question of equipment: if you don’t own the tools, you’ll have to buy or rent them. If you run into problems, who will you call? Renovation is a big responsibility, and at times it can be stressful.

Most people find that contracting-out the work is best. But choosing the right renovator is extremely important.

Who’s Best for the Job?

Many small jobs can be done by your local handyperson. For larger or more complex projects, however, it’s a good idea to consult an architect, a design firm or a full-service renovator. Their involvement can range from taking a simple walk through your home to come up with ideas to taking responsibility for the entire renovation.

In addition to drawing up plans and layouts and hiring a contractor for you, these professionals can obtain zoning approvals and building permits, supervise the progress and quality of work, and approve payments.

Favour local firms that have been in business for a number of years. Ask for client references: satisfied customers are the best recommendation. You may even wish to tour the renovator’s current job site before making a decision.

The company and its subcontractors should have proper licences to do your work, as well as adequate insurance. Don’t be shy about asking: reputable firms won’t hesitate to answer your questions.

Even if you give an architect or designer the fullest degree of responsibility, you should understand the renovation process, including budgets, quotes and contracts, in order to protect your interests.

Choosing your Renovator

Ask for recommendations from:

  • friends and colleagues
  • building supply and hardware stores
  • local home builder and renovator associations
  • Better Business Bureau
  • municipal building departments
  • satisfied people who have recently completed a renovation
Beware of contractors who:

  • quote a price without seeing the job
  • demand a large down payment to buy materials: all reputable renovators maintain charge accounts with suppliers
  • refuse to provide a written contract that specifies exactly what they will do
  • come to the door offering a “special price” because they happen to be working in the area
  • promise a discount in exchange for using your home to “advertise” their work — the same offer will have been made to everyone
  • can’t give you an actual business address, only a post office box, telephone number, or the address of an answering service
Estimates

Get written estimates from at least two, and preferably three, of the renovators recommended to you. An estimate is a renovator’s best prediction of the charges you can expect to incur, based on his or her understanding of what you want, labour and material costs, and any anticipated difficulties.

An estimate should be in writing and include a job description, the full price, terms of payment, a schedule of work, and start and completion dates. Don’t mistake an estimate for a guarantee, though, and remember that it’s no substitute for a written contract.
Is the Lowest Bid the Best Bid?

Not necessarily. Renovators who submit unusually low bids may have made a mistake, or may be too inexperienced to estimate properly. When they find out they are going to lose money, they might look for ways to cut costs, add unjustified extras to the bill, or abandon the job.

Cashing Out

Some contractors may offer a discount for payment in cash with no written contract. Don’t be tempted. “Underground economy” transactions are risky, and the pitfalls can easily offset any promised savings.

A contractor who insists on cash with no contract may be unlicensed and uninsured — meaning your cash advances are unprotected. He or she could neglect to obtain the required building permits, licences and certificates, or fail to arrange for inspections, landing you in trouble with your municipal building department.

As well, many product warranties are invalid unless the items are installed by a recognized contractor. And you could face personal health and safety problems because of poor workmanship.
Liabilities

If the contractor’s crew is improperly trained and a worker damages your property or someone else’s, or is injured on site, you may find your homeowner’s insurance won’t cover you. You’d then be held financially liable for any damage or injuries.

Should something go wrong or the work prove unsatisfactory, or if the contractor walks off the job without finishing it, you may have no legal recourse. Cash payments make it difficult to prove the contractor was ever there. You could end up having to pay another contractor to finish the job properly or make repairs.

After paying in full, you may discover that the contractor has not paid for materials and labour employed at your site, and you may be held accountable for those bills.

Protect Yourself

Your home represents the largest single investment you’re ever likely to make. Protect its value — and yourself — by dealing with a reputable firm that operates in the open market, legally and responsibly. Your peace of mind is worth it.

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New Rule! CMHC Changes the Game… Again

February 16th, 2010 | Posted in Mortgages, Real Estate News Edmonton

The Honourable Jim Flaherty, Minister of Finance, today announced a number of measured steps to support the long-term stability of Canada’s housing market and continue to encourage home ownership for Canadians.

“Canada’s housing market is healthy, stable and supported by our country’s solid economic fundamentals,” said Minister Flaherty. “However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing.”

The Government will therefore adjust the rules for government-backed insured mortgages as follows:

Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
“There’s no clear evidence of a housing bubble, but we’re taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it,” said Minister Flaherty. “If some lenders aren’t willing to act themselves, we will act. These measures demonstrate the Government is committed to taking action when necessary to support the long-term stability of a sector that is so vital to our economy and the financial well-being of Canadian families.”

These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010.

___________________________________
For further information, media may contact:

Annette Robertson
Press Secretary
Office of the Minister of Finance
613-996-7861

Jack Aubry
Media Relations
Department of Finance
613-996-8080

This post was copied from http://www.fin.gc.ca/n10/10-011-eng.asp

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Property Tax Buster

February 15th, 2010 | Posted in Edmonton Home Maintenance

Taxes suck. I don’t know anyone who likes to pay them. I know I sure don’t!!

I really don’t like it when my property tax assessment comes in, and my taxes go up because the city thinks my property is worth more this year than it was last year. That REALLY sucks.

But there’s hope. You can challenge your tax assessment. We can help.

Provide us with the information below, and we’ll send you our Property Tax Buster CMA, which you can use to challenge your property taxes.

How cool is that?

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read John’s privacy policy

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Is Your Home Prepared For A Sale?

February 13th, 2010 | Posted in Selling Edmonton Home

A home is a home, so what’s the big deal about preparing it prior to a sale? Here’s the big deal: If your home doesn’t look attractive enough; you will not get the few hundred thousand dollars that you were banking on. Yes! That’s the harsh reality!

Look at it this way – If you were searching for a home to buy, would you invest in a home that looked like a huge dustbin from the inside or would you choose something that gave you a sense of peace? The general assumption is that you would go for the second one because of the attractive value it has. No one in their right frame of mind would love to settle down in a pile of dust and dirt!

You are probably wondering how you can beautify your home and get a millionaire to buy it. It’s quite simple. There are several ways of doing it and here are some of the aspects that you really need to consider:

Point #1: De-clutter your Home

Yes, we often clutter our home with the required and ‘not required’ items and things. Most often than not, old issues of Maxim or National Geographic are probably lying all around the house and not to forget the soiled clothes. First things first:

1. Remove, throw away, or donate whatever is not required. I held a garage sale and earned a nice sum from it.

2. If you have a book rack, ensure that everything is arranged alphabetically

3. Clean your kitchen and put all utensils in their right place

4. Remove everything that is lying around and give the home a nice vacuuming

5. Paint the home if it is required

6. Check for leakage or broken valves and have them repaired

Point #2: De-Personalize your home

This can be quite tough because most of us get emotionally attached to our home over a period of time. Basically, you will have to start by removing all personal photographs, personal artifacts, certificates, trophies, and any object that will make the prospective buyer feel it is your home. When a buyer walks in to your home, he or she should be able to say, “This is my home!” That’s when you will know that you have clinched the deal!

Point #3: Shine and sparkle your home

This is a time consuming process but then you need to start early. When a prospective buyer walks in then your home should look as good as new – as if no one has really lived in there. You are probably thinking, “Damn! I will have to work weekends!” So be it!

Here is what you need to do:

· Wash all the windows from inside out.

· You can rent a pressure washer and clean the exterior of your home

· Remove the cobwebs, dust and dirt on the floor, and no Dog or cat poo please!

· Re-caulk the showers, tubs, and sinks. Polish the faucets as well

· Wax marble floors and vacuum carpets. Replace the carpet if it is worn out

· Clean the air – use room freshener (Don’t smoke in the home!)

See how easy it was – all in a day’s work!

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Can We Price It Higher?

February 12th, 2010 | Posted in Ask John Carle

hi John;

Thank you for meeting with us the other day. We liked what you presented and your marketing approach. But we had another agent in who told us she would price the home $45,000 higher (15%) and see if a buyer would be willing to make us an offer. She also said that she would reduce the commissions to help us save some money.

We are having troubles making a decision, because we know you’re the better Realtor but $45,000 is a lot of money… can you match what she’s offering us?

- Name withheld

Hello {name}

Thank you for the email, I appreciate your honesty here.

You’re right, $45,000 is a lot of money. A whole lot! It’s also a lot of money to the buyers out there, who are comparing your home directly against your competition.

If you recall from our meeting, we looked through the active competition and recent sales. We agreed together that your home was worth a certain amount, not based on what we would LIKE to get, or what sounded really nice, but based upon what real buyers are willing to pay for similar homes to yours. The numbers, to be blunt, didn’t lie.

The link below will give you access to the homes you’ll be competing with at the higher price point. As you can see, they’re larger than yours with more features, and in many cases significantly newer than yours. Realistically, you can’t possibly compete with those homes. They’ll slaughter you and you won’t sell at that price. As we move into the spring market, competition is going to increase; which isn’t good for a home that’s over priced.

{link removed}

Even if we were to find a buyer willing to pay $45,000 more for your home, the banks would never appraise it at that value. Which means the sale wouldn’t complete even if we managed to put a sale together! The only possible buyer is someone with 100% cash to buy your home, and no intelligence to notice that you’re over priced. I’ve noticed that people with that kind of money aren’t usually the type who over spend; which is why they have that much money.

The danger of over pricing your home is very real. Realistically, once buyers have “written off” your home, they won’t reconsider your home simply because of a price reduction. Remember that you have the most buyers for your home in the first 3-4 weeks of being on the market, after that the only people who will consider your home are the new buyers coming into the market. That’s a significantly smaller number of buyers, probably only about 5-10% of the buying population.

By over pricing your home, the other agent is achieving a simple goal for herself. She’s “buying your listing” with the hopes of reducing the price at a later date. But that price reduction will have to be significant to attract buyers, and will likely result in a lower sales price than if you price it properly to begin with. Unfortunately, you’re bound to a contract with her by then and as such she’s guaranteed the sale when you do reduce the price.

As for the offer of a reduced commission, I have a lot to say about that point. None of it complimentary.

1. If she’s reducing the buyer agents’ commission, she’s slitting your throat. Offering a reduced commission results in fewer showings. If you’re going to over price your home, you’re going to be desperate for showings. Cutting the agents’ commissions means that you’re less likely to get those rare few showings.

When over pricing a home, you should actually offer out a larger commission. Bribe the agents into showing it, and writing offers. You might get lucky.

But a reduced commission on a home that’s over priced means that the agents have no motivation to show your property; neither a big commission nor value for their clients to make them want to show the house.

2. If she’s willing to cut her commission significantly, what’s she going to use to market and advertise your property? Again, you’ll get less activity because she can’t afford to get your property out there in front of the buying public.

If the Realtors won’t show your home, and the public don’t know about it because of a lack of marketing… where are you going to get a buyer?

Finally, there’s the desperation factor. The promise of a higher price and lower commission are often a sign of an agent who’s desperate to “do a deal”. I don’t know who this agent is, but I’ll bet that if you look at her inventory and recent sales you’re not going to see much. She’s very likely desperate for this sale, and will promise anything for a chance to make a commission. Be very careful who’s negotiating your sale. Are they looking out for your best interests or their own?

One of the reason I have such a high average sale price is not only because of the extensive marketing and advertising that I do, but because I negotiate for my clients’ best interests more than to just put a quick sale together. While I have expenses and need to earn commissions to stay in business, I’m not desperate for the next sale in the hopes of avoiding a foreclosure of my own home or grocery money. Again, know who your agent is working for!

I realize this is a long email, but I hope it’s been helpful in explaining the position you are putting yourself in, either with me or with the other agent. Either way, I wish you the very best of luck and success with the sale of your home. I’m sure that whatever decision you make it will be because you feel it is the right thing to do.

All the best,

John Carle
ReMax Real Estate
www.Knock-Knock.ca

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Renovating Step By Step- Part 2

February 11th, 2010 | Posted in Selling Edmonton Home

Renovation, Step by Step

Step 1. Set your priorities

If you’re considering several projects, rank them in order of importance. Maintenance items should be given top priority. You’ll want to fix a leaky roof before refinishing the floor beneath it!

Step 2. Know what’s possible

Every house has unique strengths and weaknesses. Hire a qualified private home inspector or architect to give you professional advice on what your home needs and what it can — or should — do.

Just remember: consulting a qualified professional before you make a big decision is the best way to avoid costly complications down the road.

Consider the impact of your intended renovation. The addition you want may look great on paper, but can your heating, plumbing and electrical systems service it? Remember that although your house looks like a static structure, it’s actually a collection of components that interact continuously. If you change one part, another may be unexpectedly affected.

For example, by adding insulation and installing new windows you can make your house more airtight, and therefore, more energy efficient. But your furnace may no longer operate properly or safely! Increasing airtightness affects heat flow, air flow and indoor moisture levels. You have to understand how these factors are inter-related before you can upgrade effectively.

Remember that building codes and local by-laws may also limit what and how you renovate. There’s nothing worse than discovering the project you’ve painstakingly planned is not allowed. Talk to your municipal building department and find out about zoning and permits.

Step 3. Do the math

Can you really afford to renovate?

To know, you need a clear idea of the costs involved. Get quotes from at least two reputable local renovators, architectural firms or materials suppliers. Explain exactly what you want to do and discuss various options. Then, take the most reasonable quote and add 10 to 15 per cent for unexpected costs.

Discuss the financial implications of the project with your real estate agent, banker or financial adviser. If you need financing, you may be able to renegotiate your mortgage or apply for a personal loan. You may even be eligible for assistance, as some utilities and provincial and municipal governments offer incentive programs for energy-efficiency upgrades.

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Is This the End of MLS?

February 10th, 2010 | Posted in Ask John Carle, Real Estate News Edmonton

For some time now, the real estate industry has known of the Competition Bureau’s dislike for the MLS system. They feel that Realtors do not allow for other business models to exist (ahem, Comfree? WeList? Canadian Tire Orange Signs?) and thrive.

Unfortunately, I feel that the Bureau’s hunger for MLS blood will result in a lot of blood being spilled. Specifically these “alternate business models” will be forced to compete with already giant companies like ReMax and Century 21 without the MLS system to balance the playing field. Specifically, ReMax will be free to engage the marketplace in any way they see fit and will literally rip these smaller companies to pieces. Why? When buying a home, people will only go to the companies that offer large inventories of homes to show them. Small offices of 3-4 agents won’t have nearly the volume of homes listed, and the public won’t come to them for buying property because of the limited inventory available. Without an MLS these small brokerages won’t have access to the properties being marketed by ReMax or other large brokerages, access which they currently enjoy.

Further, the demise of the MLS will have little-to-no negative impact on these larger brokerages. In fact, it will eliminate the levelling effect that exists now. Currently, you can list your home for sale with a small brokerage and have equal exposure through the MLS as I can provide with ReMax. But when the MLS dies, these smaller brokerages won’t get the business. Why? Because the public will go to known brands like ReMax and Century 21, and small companies won’t be able to compete with the existing brands and massive marketing budgets that these companies can leverage. Simply put, the non-franchise companies will cease to exist. Large brands will have less competition as a result and will be able to control the market even further.

Agent recruiting will become almost impossible for these small brokerages. “Come work with us, and you can show our 8 Edmonton real estate listings to your clients.” vs. “Come work with ReMax and show our 1,500 Edmonton real estate listings to your clients.” That’s pretty powerful stuff. ReMax and C-21 will see swelling agent populations as small brokerages fizzle and go bankrupt.

Smaller companies will be left with few agents, to sell no inventory to non-existent clients. Consumer choices will shrink, and ironically the remaining giants will be able to demand a higher price for their services as a result of fewer competitors.

That’s anti-competitive, and will be caused by the specific actions of our own Canadian Competition Bureau. Isn’t that ironic?

Should ReMax increase my desk fees dramatically, and I have no alternative but to pay them, I will either have to reduce service to my clients (not good) or increase my pricing to cover the extra cost (also not good).

Personally, I’m a ReMax Realtor. I like this company and I have no intention of changing brands. I know that part of what makes this company great is that it competes fairly in the market with small brokerages, and must maintain pricing that is competitive with these small companies. But once the Competition Bureau is done with my industry, it won’t matter because I won’t have any other options. The small brokerages will simply not exist.

CREA Disappointed By Bureau Tribunal Filing

OTTAWA, Ontario – February 8, 2010 – The Canadian Real Estate Association (CREA) learned today that the Competition Bureau filed a Notice of Application with the Competition Tribunal against CREA.

“CREA views the Commissioner’s decision as surprising and disappointing,” said Dale Ripplinger, President of CREA. “We do not agree with the Bureau’s position that certain CREA rules are anti-competitive, either as a matter of fact or as a matter of law. CREA’s rules allow for innovative business models and provide a broad range of choice for consumers.”

In good faith, CREA engaged in settlement negotiations with the Competition Bureau for several months in an effort to arrive at a consensual resolution. Unfortunately, the parties were unable to reach an agreement. This is very disappointing, since CREA has consistently indicated – right from the outset – that it has always been prepared to work with the Competition Bureau to revise its rules to clarify the way the rules operate.

Last week, CREA advised the Commissioner of Competition that CREA had made the business decision to move forward with rule changes to address the issues raised by the Bureau, whether or not a settlement with the Bureau could be reached.

“In making these clarifications on a proactive basis, CREA believes that it is fully addressing the Competition Bureau’s concerns, while ensuring the accuracy and quality of MLS® information that Canadians have come to trust and REALTOR® compliance with a code of ethics” said Ripplinger.

The Commissioner’s press release states that CREA’s rules restrict consumer choice and prevent innovative business models. That is simply false. CREA is disappointed that the Bureau would make this statement in view of the months of discussions about CREA’s rules and CREA’s consistent position that its rules are not intended to and do not restrict any business models.

The real estate industry in Canada is highly competitive and thrives on small businesses with independent agents, brokers and franchises conducting a wide variety of transactions every day. CREA currently has more than 98,000 members operating independently across the country to compete for consumer business, offering a wide array of services and pricing structures.

“CREA’s interest and that of its members is to ensure consumers have choice, that they are protected during one of the most significant transactions they will undertake, and that the integrity of the MLS® system is preserved for the benefit of REALTORS® and the Canadian public” added Ripplinger.

About The Canadian Real Estate Association

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 98,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations.

For more information, please contact:
Alyson Fair
613-237-7111 or 613-884-1460
Email: afair@crea.ca

Ray Sapiano
613-237-7111 or 613-290-8902
Email: rsapiano@crea.ca

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5 of Edmonton’s Best Buildings

February 10th, 2010 | Posted in Around Edmonton, Sarah Dulmage

A young city, Edmonton’s historic structures are still relatively new, and they are complimented with the more creative structures found around town. Here are 5 of my favourite Edmonton buildings. What are yours? I’d love to hear!

1) AGA – It’s grand re-opening was January 31, 2010 and the new Art Gallery of Alberta (formerly the Edmonton Art Gallery) is an 85,000 square foot state-of-the-art facility and a premiere presentation venue. Designed by Randall Stout Architects, Inc. of Los Angeles, the building is in itself a work of art and has created a buzz while we each interprate it’s design in our own way. Located in the heart of Edmonton’s Arts District on Sir Winston Churchill Square, the gallery secures Edmonton’s reputation as a world class city and centre for visual art.

2) Telus World of Science – Renowned for its striking and innovative buildings, Douglas J. Cardinal Architects Ltd. was appointed to design the science centre and bring it to life. For 25 years, children of all ages have enjoyed a positive science and technology destination in our City that inspires and motivates people to learn and discover. See the sky from a new vantage point in the observatory, catch a film in the IMAX theatre, or buy an “at home”experiment in the gift shop. Whether you have an hour or an afternoon, you will leave with an expanded mind!

3) Muttart Conservatory – The conservatory, designed by architect Peter Hemingway, is composed of four glassed pyramids built around a central service core, and is sure to catch your eye as you approach Edmonton’s lush river valley. The four pyramids of the Muttart shimmer in the sun and are home to thousands of species of plants, both domestic and exotic. Three of the structures have individual climates (arid, tropical, and temperate), while the fourth offers a changing theme. Visitors may recognize the glass and metal pyramids as bearing a striking resemblance to the four that sit outside the Louvre, Paris’ premier art gallery and museum.

4) Hotel MacDonald – The Fairmont Hotel Macdonald (affectionately called “The Mac” by Edmontonians) was built in 1912 by the Grand Trunk Pacific Railway and was designed in the Château-style characterized by 16th century French castles. It is named after Canada’s first prime minister, Sir John A. Macdonald, and is laced with Indiana limestone and roofed with copper. Today, it is popular for weddings and is frequented by Edmontonians in search of a celebrity sighting!

5) Alberta Legislature – Built from 1907 to 1912 in the Beaux Arts styles of architects Allan Merrick Jeffers and Richard Blakey, the province’s foremost historic structure is set amidst beautiful gardens and water displays. Inside and out, the Legislature offers a rich experience in exploring Alberta’s past and present as the focal point of the province’s democratic process. Alberta’s premier architectural attraction overlooks Edmonton’s river valley and is steps away from the heart of downtown Edmonton.

There are too many beautiful and unique buildings in Edmonton to detail them all at once, but I look forward to hearing your favourites to add to my next blog on our most spectacular structures! In the mean time, if you or someone you know is looking for a new vantage point from which to call home, I look forward to hearing from you! Also, become a fan of our new Facebook page at www.facebook.com/EdmontonRealty

Sarah Dulmage, Realtor
Re/Max Real Estate
Cell: (780) 934-8514
www.Knock-Knock.ca
www.facebook.com/edmontonrealty

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Annual sales activity in 2009 tops previous year

February 9th, 2010 | Posted in Market Review Edmonton, Real Estate News Edmonton

Annual residential sales in Alberta were up in 2009 from 2008 levels, bolstered by a stronger performance in the second half of the year.

According to statistics provided by real estate boards in Alberta, home sales numbered 3,042 units in December 2009, an increase of 62 per cent from the same month in 2008. Current sales are on par with the month in 2007, but remain below activity in the peak years from 2004 to 2006. Nationally, home sales jumped 72 per cent from one year earlier.

Calgary contributed most to the provincial increase in monthly activity, with a gain of 77 per cent from one year earlier. Sales activity in Edmonton saw an increase of 56 per cent from December 2008.

On an annual basis, provincial home sales were up three per cent from 2008 to 57,786 units in 2009. It was the fourth best year on record for sales activity.

The provincial average price for homes sold in December 2009 was $350,896, up seven per cent on a year-over-year basis. This is the fifth consecutive rise in the average home price. By comparison, the national average price was up 19 per cent from a year earlier to $337,410.

The average price for all homes sold in Alberta in 2009 was $341,201, down three per cent from 2008.

Monthly residential average prices were up from year-ago levels in December in Calgary (+9 per cent), Central Alberta (+3 per cent), Edmonton (+3 per cent), Fort McMurray (+5 per cent), Grande Prairie (+5 per cent), North Eastern Alberta (+2 per cent), and South Central Alberta (+9 per cent).

The value of all home sales in the province totalled $1.1 billion in December 2009, jumping 73 per cent from year-ago levels. Nationally, the dollar volume of all home sales more than doubled from one year ago. The annual dollar value of all homes sold in Alberta in 2009 was $19.7 billion, edging down one per cent from 2008.

Total sales in Alberta numbered 3,333 units in December, an increase of 61 per cent from December 2008. The value of those sales amounted to $1.2 billion, rising 67 per cent from year-ago levels.

New listings on the MLS® Systems of real estate boards in Alberta continued trending downward in December, though the pace of year-over-year declines has slowed considerably. New residential listings were down three per cent from year-ago levels to 3,975 units in December 2009.

The combination of strong demand and fewer new listings continues to draw down the supply of homes available for sale on the MLS® Systems of boards in Alberta. Active residential listings dropped 26 per cent from one year earlier to 16,737 units at the end of December 2009. This is the 10th consecutive decline from year-ago levels.

There were 5.5 months of inventory at the end of December, well below the recessionary peak recorded one year earlier (12.1 months). The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The combined value of home sales activity in Calgary was $541.8 million in December 2009, a 92 per cent leap from year-ago levels. A total of 1,374 home sales were recorded through the MLS® System of the Calgary Real Estate Board in December, up 77 per cent from one year earlier.

The total value of home sales in Edmonton was $302.6 million in December 2009, rising 60 per cent year-over-year. There were 948 home sales recorded through the MLS® System of the Edmonton Association of REALTORS®, an increase of 56 per cent from December 2008.

Alberta December 2009

Residential MLS®

All MLS®

Average MLS® Price
Calgary $      541,768,225 $    594,084,285 $ 394,300
Central Alberta $       50,952,875 $    65,357,050 $ 279,961
Edmonton $    302,602,292 $    341,875,832 $ 319,201
Fort McMurray $    73,312,073 $    73,312,073 $ 551,219
Grand Prairie $      22,944,467 $      25,588,467 $ 257,803
Lethbridge $      21,551,128 $      23,251,453 $ 224,491
Lloydminster $      11,280,725 $      12,593,071 $ 230,219
Medicine Hat $      17,476,500 $      19,801,700 $ 242,729
North Eastern Alberta $      6,412,500 $      8,216,504 $ 278,804
South Central Alberta $        5,045,060 $        5,852,560 $ 201,802
West Central Alberta $      14,079,550 $      19,903,150 $ 276,070
Provincial $ 1,067,425,395 $ 1,189,836,145 $ 350,896

Important information

Please note the Brooks Real Estate Board Co-operative Ltd. is now called the REALTORS® Association of South Central Alberta.

The average price information quoted can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

The Alberta Real Estate Association represents over 10,185 brokers, salespeople and affiliate members throughout the province. AREA serves its members through a wide variety of educational programs, publications and special services. REALTOR® is a trademark, which identifies real estate professionals who are members of The Canadian Real Estate Association and, as such, subscribe to a high standard of professional service and to a strict code of ethics.


For further information contact:
Bill Fowler, Director of Industry and Government Relations
bfowler@areahub.ca

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6 Questions Every Home Seller Should Have Answered

February 8th, 2010 | Posted in Selling Edmonton Home

There are certain questions that come up whenever we’re showing a home in Edmonton, and it really helps us when we already have these answers. These questions go beyond square footage and # of parking spaces. So if you’re planning to sell your home in Edmonton or area, you should look into getting the following answers.

1. How old is the roof?

Specifically, people want to know how long until they have to replace it. Roofing can be a major expense, and as such it will factor into their opinion of value on the house.

2. How old is the furnace? Hot water tank?

In Canada, specifically in northern cities like Edmonton, we take our heat very seriously. I think it’s the whole “freeze to death” fear. So we want to know that there’s a good furnace in there. Ideally we want a furnace that’s under warranty so that when it conk’s out in the middle of January at -35 degrees, we can call someone to fix it and not have to take out a 2nd mortgage to pay the guy. Same goes for the hot water tank. Knowing how old the furnace is counts a lot towards the salability of the home, and being able to prove a reliable and consistent maintenance schedule would be great too.

3. What do the utilities cost?

Similar to point #2 above, utility costs are a big part of our life here in Edmonton. Given the huge expense that a home can bring, it’s only reasonable to be concerned about the other costs.

4. What year is the home? Who built it?

It’s easy enough to find the age of the home, it’s on your tax assessment or previous MLS listings. But like anything else, it’s an important fact to know, as homes from certain age brackets have certain issues that need to be addressed. Asbestos? Aluminum wiring? Pine shakes?

Your home is 50 years old… skip to #5.

But for those of us with newer homes, the name of the builder is kinda important. Like cars, we all have brand preferences. (I drive a Lincoln, my wife is a Honda girl, and we live in an Avi home.) Some brands instil confidence, others make buyers flee with fear. Here’s the problem; what gives confidence to one buyer will cause another to flee. But both buyers will ask the question: Who built it?

5. Is there hardwood under these carpets?

If your home is built in the 70’s, 80’s, 90’s or later.. move along. Nothing to see here.

But for older homes, original hardwood is a big bonus to many buyers. They LOVE it; heck it’s probably the reason they’re buying this home and not a newer one. There’s a charm about beautiful old hardwood that draws people to these older character homes. Here’s the issue; they don’t trust that it’s there automatically. So they usually go to a heat vent and pull up your carpets when you’re not looking. It’s better just to tell them if it’s there; doing so is more gentle on your current flooring than having every single showing result in pulling up your carpets.

6. Which schools?

Having kids made me a better Realtor. Admittedly, having 4 of them in 5 years was overkill.

Knowing which schools the kids will be attending is far more important than just about anything else to a parent. OK, to a mother. Dad’s really just care if there’s a place to hide from the kids (den! Theatre room! Back door!) and a decent garage (to also hide from the kids). But the school question comes up. A lot. Especially in “young neighbourhoods”. A lot. Seriously, at every single house, we get asked “and which school do the kids go to?” Sometimes the answer is: “the same school as the last house we saw that was 4 doors down the street.”

Best to know the 3 levels of schools that you’re zoned for, because seriously… that question will be asked. A lot.

*I was at a Realtors conference in the U.S. in 2009, and many of the MLS systems are starting to allow searches based on school zoning. That’s how important this question is!*

There you have it; your homework if you’re going to be selling your home. While you’re at it, you probably want to know how your neighbourhood is performing in comparison to the rent of the city. You can do that by visiting my Neighbourhood Value Assessment service, which is completely free.

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How Do Realtors Qualify Buyers?

February 6th, 2010 | Posted in Ask John Carle

The question below was sent to my via FACEBOOK, by a great client.

So I’m curious about the ads on TV about benefits of having a realitor: that they screen prospective buyers. How is that done? What info do you get?

- Loretta

Hi Loretta;
It depends on the context and the Realtor, to be honest. Many agents will show homes to anyone anytime anywhere.

Personally, I screen prospective buyers on my own listings by asking a series of questions. For instance:

- Do they have a Realtor already?
- Have they been pre-approved?
- Are they currently renting (with a lease end date) or do they need to sell a home?
- Why are they buying?
- What is it about the specific property that interests them? (Why do they want to see it).

If it’s a buyer that I’d be showing multiple properties to, I ask similar though not exactly the same questions. Unfortunately, when the buyer is represented by another Realtor, my ability to control the buyer and qualify them is obviously limited. That’s where my past experiences with that Realtor come into play.

I’m sure that you don’t recall me qualifying you when we first met, but we did talk about most of this stuff before we went to look at the condos in downtown Edmonton. I just roll it into the conversation, to make it less intrusive.

I hope that answers your question!

John

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