Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Sharing the Cost of Home Ownership

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Sharing the Cost of Home Ownership: Sharing the Cost of Home Ownership The high cost of real estate in some Canadian markets can present a challenge to people wanting to enter...

Sharing the Cost of Home Ownership

Sharing the Cost of Home Ownership

The high cost of real estate in some Canadian markets can present a challenge to people wanting to enter the housing market.  First-time buyers in particular may find they have to make adjustments to their vision of a dream home, and start with something more realistic.  It’s no wonder that young people in Canada are staying at home longer these days, in order to save for a down payment.  In fact, in these days of employment uncertainty many homebuyers today want a home that has the potential to generate income, and are looking for a property with a rental apartment or flat to help offset their mortgage payments.

There are other home-ownership alternatives to help buyers build some equity in the real estate market.  An option that may be of interest to some individuals is the joint purchase of a multiple-dwelling property by more than one group of buyers.  For example, a legal duplex might be jointly purchased by friends or relations, with each family group occupying one of the property’s units.  The duplex approach can work well in situations where young people plan to move away to marry, leaving their parents as “empty nesters”.  In this scenario, the family home is sold, with the parents buying one unit of a new duplex outright, and then banking their surplus funds. The younger generation then assumes the more manageable mortgage payments on the remaining half of the duplex’s price.  In this way, they can start to build equity immediately without having to come up with a large down payment, or getting into a high ratio mortgage.

In less formal arrangements, two couples might elect to jointly buy one single-family residence and share all the living space. This can prove to be a very stressful situation, and the best chance for success is usually when there is a family relationship between the two couples, such two siblings with their spouses.

Whatever method you use to ease the cost of homeownership, the most important thing to remember is to get the all the details worked out before you buy.  Everyone involved in the purchase should agree on all sub-lease and re-sale provisions “up front”.  For example, can one party move out and sublet their living space to someone else?  How will the upkeep and chores of the property be handled?  Who will decide what maintenance expenses are incurred and how will they be funded?  What happens when someone wants to sell? Does one party get the first right to buy out the other’s interest?  If so, how is a fair price determined? How long does the other owner have to make up their mind before the remaining partner sells their unit?  Or, is the entire property put on the market with all parties sharing the proceeds and then going their separate ways?

As you can see there are a lot of variables to consider.  Such important issues should not be left to chance.  Don’t expect that they’ll be sorted out easily when the time comes. The best course of action is to get a lawyer involved and draw up an agreement that clearly sets out the rights and obligations of all co-owners.

Remember, when you’re thinking of creative ways to ease the cost of owning a home, talk it over first with the expert.  Tell your real estate salesperson all about your plans, so they can ensure that you’re shown homes that conform to the appropriate zoning and municipal by-laws.  Best of all, your Realtor® may be able to suggest options that you’d never considered, and help you make your home ownership dream a reality.

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Open House viewing made easy

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Open House viewing made easy: Open House viewing made easy Today’s buyers have a lot to choose from these days, with a large inventory of homes listed for sale. Some r...

Open House viewing made easy

Open House viewing made easy

Today’s buyers have a lot to choose from these days, with a large inventory of homes listed for sale.  Some real estate representatives hold Open Houses in an effort to attract potential buyers to their listings.  There’s a lot of information available about Open Houses from the seller’s perspective, but surprisingly few guidelines for the buyers who come to view them.  Here are some helpful tips on Open House viewings from the buyer’s side.  

• If you plan to visit an Open House, inform your sales representative prior to your visit.  You may be surprised to learn that visiting an Open House without your sales representative present may result in conferring certain rights on the salesperson who is showing the property.  It all depends on the rules of the real estate board where the property is located and any other agreements that may be in place.
• Ask your sales representative for information about the surrounding neighbourhood. Your Realtor® can be a valuable source of information about planned developments in the area and other aspects that may impact a home’s resale value, and may even be familiar with the individual property.
• If you’re planning a tour of several Open Houses, start out with a map.  Plot out the addresses where the Open Houses are located and the times of showings to ensure that you make the most productive use of your time.  Make sure you identify where schools, amenities and major transportation routes are located. The Coldwell Banker Web site, www.coldwellbanker.ca can help make your planning process easier with helpful location maps.  The site even flags properties that are holding Open Houses, so your list is made for you!
• Start your Open House tour with a drive to get a feel for the entire neighbourhood before you devote any time to viewing individual houses.
• When you visit an Open House, be direct and ask questions.  You’ve got a lot at stake, so this is no time to be diplomatic.  The salesperson showing the home is well aware that it won’t be right for everyone.   Being open and direct allows the hosting sales representative to better understand your needs and objections and then offer solutions to meet them. 

Do you have any other questions about viewing homes for sale?  Or about home prices and affordability in today’s real estate market?  Call me and take advantage of their helpful advice.  It’s a great time to buy, so why not make the most of it!

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Sizing up your new neighbourhood

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Sizing up your new neighbourhood: Sizing up your new neighbourhood Buying a home can be a confusing and even overwhelming experience. One of the best ways to take the my...

Sizing up your new neighbourhood

Sizing up your new neighbourhood  

Buying a home can be a confusing and even overwhelming experience.  One of the best ways to take the mystery out of the process is with good information.   When you’re looking for the right home, your success can often depend on knowing what questions to ask – not just about a prospective property, but also about the surrounding community.  Here are some questions that can help you size up a neighbourhood before you decide to make an offer on a property:

• What other homes in my price range are currently listed for sale in this community?
• How affordable is this housing compared with other nearby markets?
• Where are schools and other amenities located?
• What age groups are predominant in the community?
• What is the average household income of the residents?  
• What is the level of education of the residents?
• What is the employment rate or future job prospects in the community?
• Where can I find more specialized information about this community?

These questions can help you to develop an in-depth community profile.  But now that you know what the questions are, where do you go to find the answers?  Your local Realtor® is a great point of contact for real estate information, whether its about an entire community, a neighborhood, or even your own street.  They can provide you with comprehensive and up-to-date pricing information and housing options in your target market and help you select a community that best suits your family’s needs and lifestyle.  If you prefer to web surf for your facts, the answers to these and other home buying questions are just a mouse click away at www.coldwellbanker.com and www.tomflatt.com .  There’s a wealth of consumer-friendly buyer tools and resources to help you evaluate and compare properties.  You’ll also find thousands of listings from communities across Canada and all around the world.

Why not logon to www.coldwellbanker.com or visit www.tomflatt.com and use our community profile information to your best advantage?   And when you decide it’s time for a one-on-one conversation or taking a first-hand look at some property, you can also find contact information on the site to put you in touch me.  Call me and let’s talk real estate.  You’ll be glad you called me first!

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Don’t refuse that low offer - Keep negotiating!

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Don’t refuse that low offer - Keep negotiating!: Don’t refuse that low offer - Keep negotiating! Receiving an offer to purchase is one of the most emotionally charged events in the entir...

Don’t refuse that low offer - Keep negotiating!

Don’t refuse that low offer - Keep negotiating!  

Receiving an offer to purchase is one of the most emotionally charged events in the entire selling process.  Sellers should try to bear this in mind, and make a conscious effort to stand back and take an objective view of the situation.  Most Realtor®’s have seen sellers who let their personal attachment to their home cloud their judgment. Their emotional reaction makes them lose sight of the importance of working with an offer, even if its a low one.  Sometimes when an offer comes in that is quite low, homeowners take it as a personal insult.  They react so strongly that they just refuse the offer out of hand.  If you let this happen to you, then you could be missing out.

Even if it looks like you and the potential buyer are very far apart, the important thing to keep in mind is that a serious buyer has made an offer that has opened negotiations. Your goal is to keep them open until you get the results you want.

When considering an offer, bear in mind that prospective buyers usually don’t expect their first offer to be accepted outright.  Don’t let your emotions drive your decision.  Look at it as a purely business proposition.  There are several positive aspects to receiving an offer, even if it’s not what you hoped for.  First of all, you’ve made contact with a serious buyer who’s ready to purchase.  Secondly, you know the buyer prefers your property over any other in your price range.  Don’t slam the door on this prospect.  You can keep negotiations going with a counter-offer (or “sign back”).  A sign-back doesn’t mean you have to make major concessions to your desired price or terms.  Even if you send the offer back with the same terms as your listing, it gives your sales representative one more opportunity to meet with these interested buyers to promote your property, and counter objections.  They can also offer creative financing options that might encourage a better offer.  

When coming up with a counter offer, its important to keep in mind that other aspects of an offer have value besides price.  Even if you can’t move very far from your list price, you may be able to offer other concessions such as including fixtures (lighting, appliances, draperies) or changing your preferred closing date to accommodate the buyer.

Keeping the lines of communication open gives your sales representative a chance to do their job.  Want to know more about effective negotiating strategies?  Ask your local Realtor®.  You’ll be glad you called us first!