Buyer Representation Agreement - Protecting Consumers

Have a look at any contract you’ve signed…phone, internet, gas, etc.  If you read the clauses, you’ll discover that most of the time the contract protects the company more than it protects the consumer.  Most contracts are extremely long and you likely won’t be able to get an explanation or clarification from a company sales rep. You may have limited choices on the duration of the contract and if you decide that you want out, it’s likely going to cost you.  Frankly, it’s no wonder there are a lot of people who are apprehensive when it comes to The Buyer Representation Contract with Realtors.  This is, after all, a house/condo not a cell phone!  The thing you might not know is that a Buyer Representation Agreement actually protects consumers.

Generally, a Buyer Representation Agreement outlines the parties in the working relationship and the expectations from both parties. In this case, what is to be expected of us, as Realtors and what is to be expected of you as the Buyers. Buyer Representation Agreements document the type of property the buyer(s) is looking for and  puts everything on the table so there are no misconceptions or misunderstandings. It also give house hunters the freedom to choose the duration of the contract - how long you want to work with a certain Realtor for.

How is this good for you?

Simple…you’re protected in several ways.  It starts with the fact that you’re entering into this contract with the Brokerage (Office), not the specific Realtor. This means that if there are serious problems with your Realtor, the owners of the Brokerage are responsible and accountable.  The contract also outlines several possible scenarios that Buyers might encounter while working with a Realtor (working with other Buyers, Multiple Representation, Customer Service with Sellers, etc) and how it affects the working relationship.  It requires your Realtor to explain the different types of representation to you, giving you the necessary knowledge and understanding of what to expect during the process.  MOST IMPORTANTLY, however, a signed contract with a Brokerage means that any information you share with your Realtor is kept 100% confidential.

What about the commission clause?There are a few clauses on the contract that protect your Realtor and the Brokerage.  This is one of them.  If you think about it, no one wants to work for free. A Realtor is no exception, but until you actually buy a house, that is essentially what a Realtor is doing.  That’s why this clause is on the contract. By asking you…the person who has been benefiting from our efforts…to provide that compensation IF we are unable to get it through the seller. This clause protects our compensation for all the work we’ve been putting into finding you a property. 

There‘s still going to be protection for you because this clause should be discussed up front.  You’re not going to be blind sided with a bill for a Realtor's commission.  You should be informed asap if this is a possibility, giving you the freedom to consider your options before you even walk in the door of a house.

 

Posted by Sylvia Robbins on January 18, 201

http://www.century21.ca/Blog/Buyer_Representation_Agreement_-_Protecting_Consumers

Changes to Mortgage Rules

On Monday, the Government of Canada announced adjustments to the rules for government-backed insured mortgages. These changes are an effort to address concerns about the increasing levels of Canadian household debt. They are designed to ensure that homebuyers don’t risk their financial security by buying more than they can afford.

So what do these adjustments mean to the average homeowner?

Here’s a look at the new rules that were announced by Finance Minister Jim Flaherty:

Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent.

By reducing the amortization period for new high-ratio mortgages, monthly payments may be more, but Canadians will be able to decrease the amount of interest paid on their mortgages. According to Adrienne Warren, Senior Economist for the Bank of Nova Scotia, the impact of the change to amortization would be relatively modest, at about $100 more per month in carrying costs for an average home.

The new rule takes effect March 18, 2011 and will only affect people buying homes after this date. If you already have a mortgage (either a 35 or 40 year) you should be able to keep it through your renewals.

5% continues to be the minimum down payment.

Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 % from 90 % of the value of their homes.

This new rule is an attempt to promote “saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers”.

This rule also takes effect March 18, 2011

Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit (HELOCs).

According to a Globe and Mail interview with personal finance expert,Rob Carrick, there has been no indication of upcoming changes to how lenders do business. In theory though, by withdrawing government-backed insurance, lenders could start charging higher interest rates on new credit lines or create tougher qualifying requirements.

Home equity lines of credits have been growing in popularity as a borrowing tool and the Federal Government is attempting to slow the growth of this type of borrowing.

This rule takes effect April 18, 2011

No matter what situation you’re in, whether you are a current homeowner or are in the market for a new place, it’s a good idea to take a hard look at your finances and know where you’re money is going.

There are still many mortgage options for homebuyers. Do your research and talk to a Realtor or a mortgage broker to find out what your options are.

Posted by Don Lawby on January 19, 2011

How to Make the Most of Your Open House Set your house apart with these simple tips

You've got better things to do on a Sunday than hold an open house. It's not the greatest feeling having your home opened up for strangers to ogle at your closets or poke through your shower. And while experts may debate the value of open houses, you want to get that property sold, so you do what you have to do.

Your Realtor or agent should fill you in on the basics, such as getting the house as clean and tidy as possible for the big day, making sure both yards are trimmed and some fresh flowers are sprouting, and always hiding money, medication, jewelry or small valuables. In addition, here are some extra tips to make your open house count (and make you feel like you were productive during those precious Sunday hours):

• Make It Generic -- Yes, it's still your home, but you're trying to get other people to picture it as their home. Put away all of the family photos, the children's art, the shopping lists and doctor visit reminders from the refrigerator. And turn the volume on the message machine to "off" so potential buyers aren't screening your phone messages.

Clear the Decks -- Stick the fancy electronic toothbrushes, irrigators, deodorants, perfumes, etc. under the sink in the bathroom, and find a hiding place for your coffee maker, Cuisinart and juice maker in the kitchen. The more spacious countertops look, the more people will remember your house. "Nice clean counters give people ideas. They want to know if they're big enough to store their own appliances and products," says Lance Mohr, a Tampa, Fla. Realtor.

Dinner! -- Put out your best place settings on the dining room table. It adds a touch of class, making it appear that you're going to be serving a fabulous dinner party later in the evening after the potential buyers have scooted back home, even if you're really planning on KFC in front of the TV.

The Doormat Trick -- Just before most people enter a house, they reflexively glance down and give their shoes a rub on the doormat. If you're selling, now's the time to go all out and invest in a nice one. It's a subtle sign that you care about the property and that you're no slob (even though you may have gotten along just fine without one for the last few years).

Way to a Buyer's Heart -- Bribes. In this market, try anything. If your open house is occurring when the weather is cool, leave behind a big tray of freshly baked cookies or brownies or a canister of hot chocolate and paper cups. In summer, a big pitcher of lemonade or mini-bottles of cold water can cause some thirsty soul to pause and take a good look around at your house.

Take Off -- It can be intimidating for a potential buyer to ask an agent frank questions about a property with the owner trying to listen in the hallway. Plus, buyers are expecting to see the house, not you, sorry. "I had an owner who came back home early from a hike during the open and took off his shirt," says real estate agent Rob Smith of San Diego. "It was a great house, but people came in and saw this sweaty guy without a shirt and they were grossed out." And don't forget to take your barking dog with you.

By John Morell, FrontDoor.com | Published: 7/10/2008

 

http://www.frontdoor.com/Sell/How-to-Make-the-Most-of-Your-Open-House/2112

 

How to Make the Most of Your Open House Set your house apart with these simple tips

You've got better things to do on a Sunday than hold an open house. It's not the greatest feeling having your home opened up for strangers to ogle at your closets or poke through your shower. And while experts may debate the value of open houses, you want to get that property sold, so you do what you have to do.

Your Realtor or agent should fill you in on the basics, such as getting the house as clean and tidy as possible for the big day, making sure both yards are trimmed and some fresh flowers are sprouting, and always hiding money, medication, jewelry or small valuables. In addition, here are some extra tips to make your open house count (and make you feel like you were productive during those precious Sunday hours):

• Make It Generic -- Yes, it's still your home, but you're trying to get other people to picture it as their home. Put away all of the family photos, the children's art, the shopping lists and doctor visit reminders from the refrigerator. And turn the volume on the message machine to "off" so potential buyers aren't screening your phone messages.

Clear the Decks -- Stick the fancy electronic toothbrushes, irrigators, deodorants, perfumes, etc. under the sink in the bathroom, and find a hiding place for your coffee maker, Cuisinart and juice maker in the kitchen. The more spacious countertops look, the more people will remember your house. "Nice clean counters give people ideas. They want to know if they're big enough to store their own appliances and products," says Lance Mohr, a Tampa, Fla. Realtor.

Dinner! -- Put out your best place settings on the dining room table. It adds a touch of class, making it appear that you're going to be serving a fabulous dinner party later in the evening after the potential buyers have scooted back home, even if you're really planning on KFC in front of the TV.

The Doormat Trick -- Just before most people enter a house, they reflexively glance down and give their shoes a rub on the doormat. If you're selling, now's the time to go all out and invest in a nice one. It's a subtle sign that you care about the property and that you're no slob (even though you may have gotten along just fine without one for the last few years).

Way to a Buyer's Heart -- Bribes. In this market, try anything. If your open house is occurring when the weather is cool, leave behind a big tray of freshly baked cookies or brownies or a canister of hot chocolate and paper cups. In summer, a big pitcher of lemonade or mini-bottles of cold water can cause some thirsty soul to pause and take a good look around at your house.

Take Off -- It can be intimidating for a potential buyer to ask an agent frank questions about a property with the owner trying to listen in the hallway. Plus, buyers are expecting to see the house, not you, sorry. "I had an owner who came back home early from a hike during the open and took off his shirt," says real estate agent Rob Smith of San Diego. "It was a great house, but people came in and saw this sweaty guy without a shirt and they were grossed out." And don't forget to take your barking dog with you.

By John Morell, FrontDoor.com | Published: 7/10/2008

 

http://www.frontdoor.com/Sell/How-to-Make-the-Most-of-Your-Open-House/2112

2010 Awards

We would like to take this opportunity to thank all of our clients, friends and family for helping us to achieve the Winnipeg Realtors Silver Medallion award for 2010 and for Century 21's Centurion Producer award for the 3rd year. We couldn't of done it without your help! Thank You!

DECEMBER AGLOW WITH BRIGHT MLS® NUMBERS

PRESS RELEASE

January 11, 2011

For Immediate Release

 

 

DECEMBER AGLOW WITH BRIGHT MLS® NUMBERS

 

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Highest Monthly Average Home Price at $252,000

 

WINNIPEG - December was a month to remember with WinnipegREALTORS® recording its highest average monthly home sales price ever at $252,414. The previous high was June 2010 at $250,440. This record is not typical of a December. Historically, the highest monthly average sales price tends to be in the busier spring months. The month of the year is becoming far less significant as a determining factor of average monthly sales price and not surprisingly the prevailing tight housing market conditions is the primary cause.

 

A real driving factor behind the higher average sales price in December is the large influx of new immigrants in combination with historically low rental vacancy rates (currently at .8%). As a result, resale housing and converted condos become the most viable option to meet the shelter needs in the Winnipeg marketplace. 

 

Another December number worth highlighting is the dollar volume of over $150 million. It shattered the previous highest December dollar volume mark set in 2009 by 22%. Prior to 2009, no December dollar volume exceeded $100 million. Helping December 2010 along was another million dollar house sale in Winnipeg, bringing the year-end total to 11.

 

Not to be outdone, December MLS® sales of over 650 are the highest on record for this month and it is the second year in a row this month’s sales surpassed 600. Similar to December 2009 when one in three active MLS® listings sold, December 2010 outperformed 2009 due to a higher inventory. A 14% increase in new listings added to the overall supply.

 

December MLS® unit sales were up 5% (653/619) while dollar volume soared 22% ($153.0 million/$125.3 million) in comparison to the same month last year. 2010 MLS® sales ended up ever so slightly to less than .5% (12,236/12,182) while dollar volume rose 11% ($2.73 billion/$2.47 billion) in comparison to 2009. 17,792 listings were entered on the MLS® system in 2010; up less than 3% over 2009. Conversion of listings to sales fell below 70% in 2010; the first time it dipped below this percentage mark since 2001.

 

“The numbers do speak for themselves this month as homes were clearly part of consumer’s year end big ticket purchases,” said Claude Davis, outgoing president of WinnipegREALTORS®. “As a result of this record December, WinnipegREALTORS® was able to finish the year edging out 2009 in annual MLS® sales and it eclipsed $2.7 billion in dollar volume for 2010 – another annual dollar volume record.”

 

“2010 will go down as a year with continued price pressure thus driving up dollar volume,” said Davis.  “Sales still held their own despite affordability becoming more of an issue, especially at the lower end of the market spectrum.”

 

He added, “In 2010, more affordable property types such as condominium townhouses and apartments were sought after as there was an increase in condo sales activity and fewer residential-detached sales.”

 

There was an actual 13% drop in residential-detached sales activity from 2009 to 2010 in houses selling under $250,000. Another sharp contrast between the two years is the fact residential-detached sales under $200,000 in 2010 represented 39% of total sales whereas in 2009 the percentage was 50%. In comparison, condominium sales under $200,000 captured 59% of total condo sales.

 

Whether it is choices of various MLS® property types, MLS® neighbourhood areas, street location, house size and condition, they all become factors in determining what a home buyer may qualify for to purchase. Given the ebb and flow of our dynamic housing market with the factors noted above, buyers should be contacting a REALTOR® to advise them on what options best suit them.

 

The most active residential-detached price range in December was the $200,000 to $249,999 price range with 20% of total sales activity. This was the case for the year with this price range leading the way with 23% of total sales activity.

 

The average days on market for residential-detached sales in December was 33 days, 1 day off last month and 2 days quicker than December 2009. The year finished off with an average days on market of 27 days, two days quicker than 2009.

 

Condominium sales in December were most dominant in the $150,000 to $199,999 price range with 35% of all sales while the $200,000 to $249,999 price range was not far behind at 31%. For the year, the most active price range by far was from $150,000 to $199,999 with a market share of 33%. Trailing a distant second was the $100,000 to $149,999 with 22% of total sales.

 

The average days on market for condominium sales in December was 26 days, over a week faster than last month and one day slower than December 2009. For 2010, average days on market for condo sales was 30 days, a 3 day quicker turnaround than 2009.

 

More detail on the year that was will be elaborated on at WinnipegREALTORS® 2011 annual forecast breakfast slated for Wednesday, January 19^th.  As in past years, a thorough review of the year just completed proves extremely beneficial to extrapolating and gauging trends to help come up with a forecast for the current year. 

 

Established in 1903, WinnipegREALTORS® is a professional association representing over 1,600 real estate brokers, salespeople, appraisers, and financial members active in the Greater Winnipeg Area real estate market.  Its REALTOR® members adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service® (MLS®) designed exclusively for REALTORS®.   WinnipegREALTORS® serves its members by promoting the benefits of an organized real estate profession.  REALTOR®, MLS® and Multiple Listing Service® are trademarks owned and controlled by the Canadian Real Estate Association and are used under licence.

 

For further information, contact Peter Squire at 786-8854.

 

 

Untitled

Big firsts are always exciting. Your first bike, your first kiss, your first job, your first car; these are all things you'll remember for the good. But a first move is something you'll remember forever, but most likely for the bad. To avoid the "first move woes," try following these tips to make sure everything goes smoothly:

Don't be afraid to ask for help. You've never moved before, so you're not really sure what you need or what the move is going to be like. So get someone who has moved before and ask for some advice. Whether it's about packing, things you need to bring, or just cleaning tips, an experienced mind can give you some valuable help. You'll be kicking yourself if you realize you forgot to bring a trash can, a blanket, a fan, dishes, silverware, socks, a toothbrush. A second mind can help make sure you have everything you need.

Don't lose your patience. Unless you've lived on your own before, it's hard to know how much you eat, especially when you've been sharing with your family for your entire life. So when you move to your new place, don't over-stuff your fridge and cabinets with food because much of it can become spoiled. For the first month, just buy what you need for a few days. At the end of the month you should better be able to judge how much you really eat.

Don't worry. You probably will feel really exhausted after you move in. This is because you've been cleaning, shopping, organizing, cleaning some more, and going to sleep late. Don't worry about it. After you've really settled in and have everything cleaned and under control, you should get your energy back again.

Don't forget to eat. I said not to worry, but I didn't say not to eat. You may be so overwhelmed by your first move that you might forget to feed yourself. When you're done with the day's cleaning, make sure you eat and drink something. Even though you might not be hungry, you don't want to go a whole day of cleaning without nourishing yourself.

Don't forget to do your laundry. Maybe your mom has been doing laundry for you your entire life. If so, you don't want to find yourself realizing you have no clean clothes to wear.

 

Good luck on your first move!

 

http://www.frontdoor.com/Move/Tips-for-Moving-Out-of-the-Family-Nest/756

FrontDoor.com's Top 10 Tax Tips for Homeowners

Some of the best perks of owning a home are the tax breaks. Know what expenses you can deduct, and understand how new laws affect you. If you're currently renting, consider the tax advantages of homeownership. This may be the time to buy a home. Remember to consult your tax advisor.

1. Deduct mortgage interest and real estate taxes.
   Interest paid on home loans is deductible up to $1 million for a principal residence plus a second home. Property taxes on all real estate are fully deductible. 
   Mortgage interest and real estate taxes are deductible

2. If you bought a home this year, deduct any money paid toward points or origination fees. You cannot deduct closing costs.
   Points paid on a new mortgage loan for the purchase or improvement of a principal residence are deductible for the year in which they were paid.
   Tax deductions for first-year home owners

3. If you refinanced your mortgage this year or took out a loan to buy a second home or investment property, deduct any points you paid equally over the life of the loan.
   Any points paid on a refinanced mortgage or a loan to purchase a second home or income property must be spread over the life of the loan. Some exceptions apply.
   How to deduct points from a refinanced mortgage or loan for a second home

4. Deduct private mortgage insurance (PMI).
   Taxpayers with adjusted gross income of $100,000 or less can fully deduct premiums for private mortgage insurance (PMI). The deduction is allowable only for insurance on loans that were originated after Dec. 31, 2006, and before Jan. 1, 2011.
   Deduct PMI from taxes

5. If you moved 50 miles or more for a new job, deduct moving expenses. 
   If you relocated for a new full-time job at least 50 miles away from your previous home, you can deduct the cost of packing, transporting or storing your household goods.
   Tax deductible moving expenses

6. If you sold your house this year, see if you're subject to a capital gains tax.
   If the profit you received from the sale of your house is under $500,000 for married couples or $250,000 for single owners, you are exempt from the capital gains tax. 
   Sellers could be exempt from Capital Gains tax

7. Home improvements and mortgage closing costs are not tax deductible. But, when you sell your house, they can be used to offset your capital gains tax burden, should you have one.
   Keep all receipts of permanent home improvements and mortgage closing costs so they can be figured into the adjusted cost basis of your home when you go to sell.
   Remodel your way to tax deductions

8. If you did a short sale this year, the debt forgiven by your lender can be excluded from your taxable income.
   Thanks to a new law, you can exclude debt up to $2 million if it was discharged by the lender in 2007, 2008 or 2009.
   Learn how forgiven mortgage debt can be excluded from taxable income

9. Take advantage of energy efficiency tax credits.
   Going green is good for the environment and your wallet. You can qualify for a tax credit with documentation of energy efficient updates to your home. 
   Go green to save green

10. If your home was damaged from a sudden, unexpected event, such as a natural disaster, fire, vandalism, or theft, deduct some of the loss.
    You may deduct all expenses not covered by your homeowner's insurance, minus a $100 deductible and 10 percent of your adjusted gross income. 
    Get tax relief after a natural disaster or theft
    

http://www.frontdoor.com/Buy/FrontDoor-dot-coms-Top-10-Tax-Tips-for-Homeowners/1369/

By FrontDoor.com | Published: 3/14/2008