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Avoid top five home buying errors, Ontario Realtors advise

Posted by StagingWorks on December 22nd, 2011

The following article from OREA was published in Canada NewsWire on December 13, 2011.

As housing market increases homebuyers need to be informed about costly oversights

According to a recent RBC report, the number of homes for sale in Ontario is on the rise and affordability province-wide is stable. The rush to buy with more available homes on the market could mean more mistakes made by consumers.

A panel of experts from the Ontario Real Estate Association (OREA) board of directors advises against making hasty or uninformed choices by avoiding five common errors:

1. Not knowing what you can afford
Barbara Sukkau, president of OREA and a Realtor based in St. Catharines, says that mistakes made in a competitive environment can be costly and restrict lifestyle choices.

“Many people don’t know that there’s an easy way to calculate how much house they can afford to determine, regardless of competing bids, what lifestyle they want to maintain within the market,” says Sukkau. “In addition to the cost of the home, potential buyers should consider the land transfer tax, closing costs, moving costs and leave room for any unforeseen extras.”

In fact, Realtors often use a calculation called the Gross Debt Service Ratio. Sukkau explains how to calculate what you can afford at http://bit.ly/OREAaffordabilty.

2. Not preparing your finances, or getting pre-approved
“Many sellers will require a potential buyer to get pre-approved. When there are competing bids on the house of your dreams, pre-approval could give you the edge,” says Patricia Verge, OREA board member working out of Ottawa.

“Pre-approval can take up to a few days after you provide your bank with things like verification of income and down payment,” Verge adds.

If a buyer meets the lender’s requirements, then written confirmation of pre-approval will be provided. According to the Canada Mortgage and Housing Corporation, this pre-approval is time sensitive and is not a guarantee of receiving a mortgage loan.

Verge also cautions buyers against using their pre-approval as a final budget. “Potential buyers should balance their debt load and other financial commitments with what the bank is willing to lend,” she says.

3. Not knowing your must-haves
Tom Lebour, OREA board member working out of Mississauga, notes that his clients aren’t always sure about what they’re looking for.

“Clients often fail to consider what amenities are in the neighbourhood they’re looking to buy in, especially when relocating from the city to the suburbs. How ‘walkable’ is a neighbourhood to places like grocery stores, schools and banks? This feature is important to many homebuyers, but they can fail to think about it in the excitement about the number of bathrooms a house has. Create a list by thinking about a day in your life and the various things important to you and your family.”

4. Not getting a home inspection
“I always advise buyers to have their own home inspection done, even if the seller offers the results of a previous inspection and even if others are keen to put in an offer,” says Phil Dorner, OREA board member working out of Belle River.

“Ensure that you have a qualified and bonded home inspector perform a full inspection as part of your offer. An investment of a few hundred dollars could save you thousands down the road.”

5. Getting emotions involved in negotiations
Buyers and sellers will often let their emotions get the best of them, says Mike Douglas, OREA board member from Barrie.

“Emotions can get in the way of negotiations because sellers inadvertently assign real value to their memories, which don’t hold financial value for the buyer. We do our best to help our clients keep their emotions out of the equation,” Douglas says.


Independent of market conditions, home staging is a highly effective marketing tool used to maximize the selling price of Toronto area homes and condos.

StagingWorks is the premier Toronto home staging company. We provide a complete range of professional services which include vacant home staging, occupied home staging and condo staging. We have staging packages to accommodate most budgets and serve Toronto, GTA and surrounding areas.

Please visit our home staging portfolio for more samples of our staging projects. Give us some some details on your home and when you’re planning to sell, and get a free home staging estimate. Or, call us for a free estimate at (647) 409-2091 or anne@StagingWorks.ca.

StagingWorks has been voted Toronto’s top home stager by Toronto Life.

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GTA Realtors Report December and 2010 Sales

Posted by StagingWorks on January 22nd, 2011

TREB reported December and full year 2010 sales.

Greater Toronto Realtors reported 4,395 existing home sales for the month of December, bringing the 2010 total to 86,170 – down by one per cent compared to 2009. “Market conditions were anything but uniform in 2010. We went from super-charged sales activity during the first four months of the year, to a marked drop-off in transactions in the summer and then in the fall saw sales climb back to levels that are sustainable over the longer term,” said TREB President Bill Johnston.

“New Federal Government-mandated mortgage lending guidelines, higher borrowing costs and misconceptions about the HST caused a pause in home buying in the summer. As it became clear that the HST was not applicable to the sale price of an existing home and buyers realized that home ownership remained affordable, market conditions improved,” continued Johnston.

The average home selling price in 2010 was $431,463 – up nine per cent in comparison to the 2009 average selling price of $395,460. In December, the average annual rate of price growth was five per cent.

“At the outset of 2010, we were experiencing annual rates of price growth at or near 20 per cent. This was the result of extremely tight market conditions coupled with the fact that we were comparing prices to the trough of the recession at the beginning of 2009,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“Balanced market conditions in the second half of 2010 resulted in more moderate home price appreciation,” continued Mercer. “Expect the average selling price to grow at or below five per cent in 2011. With this type of growth, mortgage carrying costs for the average priced home in the GTA will remain affordable for a household earning an average income.”

Home sales in the GTA were spread across a number of different housing types in 2010. Detached homes accounted for 49 per cent of total sales. Condominium apartments accounted for an additional 25 per cent per cent of sales. Other housing types including townhomes and semi-detached houses accounted for the final 26 per cent. In some areas like TREB’s central districts the mix was quite different, with condominium apartments accounting for 61 per cent of total sales.

“Ownership housing is available in a diversity of types and price points across the GTA, allowing plenty of choice for first time buyers and experienced home buyers alike. This housing diversity is one factor that continues to make the GTA a popular choice for households and businesses,” concluded Johnston.


Independent of market conditions, home staging is a highly effective marketing tool used to maximize the selling price of Toronto area homes and condos.
 
StagingWorks is the premier Toronto home staging company. We provide a complete range of professional services which include vacant home staging, occupied home staging and condo staging. We have staging packages to accommodate most budgets and serve Toronto, GTA and surrounding areas.
 
Please visit our home staging portfolio for more samples of our staging projects. Give us some some details on your home and when you’re planning to sell, and get a free home staging estimate. Or, call us for a free estimate at (647) 409-2091 or anne@StagingWorks.ca.

StagingWorks has been voted Toronto’s top home stager by Toronto Life.

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Toronto Real Estate in Review

Posted by StagingWorks on January 22nd, 2011

The article below was published by CTV.

The Toronto Real Estate Board pegged the median price of a home at $366,000 last month. That figure is a 3.4 per cent increase over the November 2009 median of $353,800. The median is the point at which half the homes cost less, and half cost more. It is considered less distortion-prone than the average price.

Skip back one year. As 2009 wound down, homeowners could crow about their properties having increased by 13.4 per cent, as the median price in November 2008 was $312,500.

Toronto elected a new mayor on Oct. 25, and Mayor Rob Ford has vowed to eliminate the Municipal Land Transfer Tax (MLTT), which is charged on real estate transactions. For example, a home with a consideration value of just over $500,000 would pay a total MLTT of $5,725.


Independent of market conditions, home staging is a highly effective marketing tool used to maximize the selling price of Toronto area homes and condos.
 
StagingWorks is the premier Toronto home staging company. We provide a complete range of professional services which include vacant home staging, occupied home staging and condo staging. We have staging packages to accommodate most budgets and serve Toronto, GTA and surrounding areas.
 
Please visit our home staging portfolio for more samples of our staging projects. Give us some some details on your home and when you’re planning to sell, and get a free home staging estimate. Or, call us for a free estimate at (647) 409-2091 or anne@StagingWorks.ca.

StagingWorks has been voted Toronto’s top home stager by Toronto Life.

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A tale of two Torontos

Posted by StagingWorks on December 23rd, 2010

The article below by Margaret Wente was published in the Globe and Mail.

Twenty-five years ago, my husband and I moved into a charming little cottage in Toronto’s Beaches neighbourhood. He’d bought it as a fixer-upper. The older working class was moving out, and the young professionals were moving in. By the time we sold the place, it was almost the only little cottage left. Soon it will be bulldozed and replaced by a McMansion.

As went our street, so goes Toronto. It’s becoming a city of extremes. The middle class is disappearing, and the affluent and the poor are increasingly segregated by neighbourhood. The two groups live in different worlds. And these worlds rarely overlap, except perhaps in ethnic restaurants or, occasionally, on the subway (but not the bus).

Wednesday’s front-page story in Toronto editions of The Globe on this accelerating trend drew a blizzard of highly emotional responses from readers. Right-wing policies are to blame! No, left-wing policies are to blame! There seems to be only one point of agreement: Toronto is no longer the city that works.

In fact, Toronto is no different from the rest of the developed world. “It’s the pattern you see in all big cities,” says Joel Kotkin, an expert on urban demography. As cities reach certain levels of affluence, the middle classes move to the periphery. Just look at New York, London, Los Angeles, Vancouver and Chicago – once middle class, now sharply polarized between rich and poor. Even cities in egalitarian Scandinavia are splitting into income extremes.

The most extreme example of this trend is London, where, a few blocks from the Thames, you might think you’ve stumbled into the Second World. As Mr. Kotkin has written, “Cities often offer a raw deal for the working class, which ends up squeezed by a lethal combination of chronically high housing costs and chronically low opportunity in economies dominated by finance and other elite industries.” Once the cost of living is factored in, more than half the children in inner London live in poverty. In Toronto, the child poverty rate is as high as 32 per cent.

Meantime, as real estate prices soar, middle-income folks move out. From Toronto, they move to Ajax, Barrie, Guelph and anyplace where they can buy a house for less than $466,000 (the current Toronto average). Jobs have migrated, too. In Southern Ontario, the greatest job growth is outside Greater Toronto.

Even people who can afford the high cost of city life are choosing to get out. Over the past decade, Mr. Kotkin points out, the biggest migration of Americans has been to cities with populations between 100,000 and one million. Who needs the hassle of congestion and commuting when you can live in a secondary centre, make the same salary, and get twice the house? The same thing is happening here, too. Of course, Toronto’s latte classes may look down on you if you move to Guelph. But these days, even Guelph’s got latte.

But poor people can’t afford to leave the city. They need access to public transit (however lousy), subsidized housing (however crummy), social networks and social services. Besides, as Mr. Kotkin says, “there aren’t many jobs for poor people at RIM.”

The income polarization of the cities is almost universal. Yet, the answers are elusive – especially when, as Mr. Kotkin argues, many city governments have been focusing on all the wrong things. He is highly critical of “progressive” governments that believe the future lies in bike lanes, sustainability and better ways to attract the hip, cool, creative class. Like it or not, he argues, the real challenge is how to grow, promote and sustain the middle class. “Cities have been so dominated by promoting hip coolness that they haven’t focused on creating good new blue-collar jobs.”

That won’t be an easy task. More business-friendly policies would help. But cities such as Toronto also face the larger challenges of the post-industrial revolution, where upward mobility is sharply diminished and where education and technology are creating much greater separations between the haves and have-nots. Toronto’s struggle to restore the middle ground will be long and hard. It will be the greatest challenge the city’s leaders face in the coming generation.
 
 
Independent of market conditions, home staging is a highly effective marketing tool used to maximize the selling price of Toronto area homes and condos.
 
StagingWorks is the premier Toronto home staging company. We provide a complete range of professional services which include vacant home staging, occupied home staging and condo staging. We have staging packages to accommodate most budgets and serve Toronto, GTA and surrounding areas.
 
Please visit our home staging portfolio for more samples of our staging projects. Give us some some details on your home and when you’re planning to sell, and get a free home staging estimate. Or, call us for a free estimate at (647) 409-2091 or anne@StagingWorks.ca.

StagingWorks has been voted Toronto’s top home stager by Toronto Life.

Best of the City Toronto Home Staging

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