Who really "wins" in a bidding war?

With the Toronto market basically on fire, and decent performance in our local market in Woodstock, its time to discuss "bidding wars"

First, I'd like to talk about terminology:

I hear a lot of my cohorts in the Real Estate business use sports / competitive terminology to describe the process of offering on a home in a multiple offer situation.  I often hear colleagues say things like "we lost our second bidding war in the past week" or "my buyers won in a bidding war!"  It reminds me of how emotional the home buying process is for our clients.  I am not a huge fan of inserting even more emotion into the situation by using motivational terms like WIN or LOSE....  I question whether being a "Winner" in a bidding war has a long term effect on the happiness of our clients.  Sure, they "got" the house they "had to have" however, it is likely they paid too much for the home, and also likely that they went in without conditions that SHOULD have probably been in the offer to protect the buyer.  Hopefully none of those decisions come back to haunt the Buyer, but the likelihood is that they will.

So you've just found out the house you LOVE is going into multiple offers....  What to do....

Well, if you're a rational thinker, and not tempted by your emotions, in some cases you have the option of walking away.  In some white-hot markets like Toronto, you may have to wait for the market to soften in order to buy a home.  Don't worry, it may seem like forever, but it will happen at some point.

If you're absolutely smitten, and/or you HAVE to buy the home, here's what you need to do:

1. Remove as many conditions as you are comfortable removing.  Make sure you have a solid preapproved for your financing, and that you are comfortable with the conditions on the pre-approval.  For example, that you have all of your letters of employment, paycheck stubs, and have paid off your consumer debts.  I would never recommend not getting a home inspection, but if you're confident that you know the product in question, or you're a handy person, eliminating the home inspection clause can be the clincher for a multiple offer situation.  You can also get a home inspection done BEFORE you make an offer, with the seller's approval.  Minimize or eliminate as many of the other conditions as possible from your offer.

2. Put your deposit on steroids.  The deposit is the only protection that a seller has if you decide to walk from the deal.  Make it as large as you can afford, if you are serious about buying the house.  

3. Get your agent to go fishing.  Is closing date important to the sellers?  Are you flexible on close?  That can be HUGE for a seller.  Do they LOVE their pistachio green electric stove?  Better not ask for it to be included.  Do they have white doily lace curtains that you'll just rip down anyway?  Leave them off the offer.  What I'm getting at here, is that a properly trained negotiator (Your BUYER AGENT) can call the listing agent and go fishing for clues that might aide your negotiations.  A solid listing agent won't divulge any motivations, but we all know that no two Realtors are created equal...  It's worth a try. 

4. Know your comparables.  Your BUYER AGENT can provide you with recently sold comparable homes, and interpret the information contained herein.  Coupled with market trend information, he/she can advise you on an accurate market value estimate, and what offer price should be fair, given your conditions.

5. Put your best foot forward.  Although as mentioned earlier, I dislike the "win/lose" terminology associated with multiple offers, it's best to have given it your best shot and "lost" than to hold back and regret it.  Don't be silly though, like that guy who paid $421,800 over asking price.  Fairly certain there will be some regret in that situation, should the need to sell arise in, oh, say, the next decade.

6.  HAVE FUN.  Most consumers only buy a home once every 3.5 - 5 years.  If you happen to find yourself buying during a feeding frenzy, take it all in.  After all, its the kind of thing they make TV shows out of!


Ben Sage, Sales Representative. www.facebook.com/SageAdviceRealEstate  www.bensage.com www.oxfordcountyhomes.ca RE/MAX a-b Realty Ltd., Brokerage. www.a-brealty.com

We safeguard your private info. The government wants to crack it wide open....

Original Press Release HERE

_____

Competition Bureau Threatens to Dismantle Privacy Safeguards of Home Sales... 75% of Ontarians Opposed

March 14, 2012 – Today, the Toronto Real Estate Board (TREB) released the results of an Angus Reid Vision Critical poll. The vast majority of Ontarians clearly expressed their opposition to abandoning the privacy safeguards of the current MLS® system.

When asked about the consequences of the Competition Bureau’s actions, Ontarians expressed concern:

• 75% of Ontarians believe that personal information such as name and final sale price should be kept
confidential by REALTOR® professionals. Commissioner Aitken wants to release this information.
• 70% of homeowners do not want their personal contact information released to the public. Commissioner
Aitken wants to release this information.
• 67% of Ontarians oppose any measure to make personal contact information such as name and address
available to others who are not subject to a professional code of conduct. Commissioner Aitken wants to
release this information.

“The results of this poll are overwhelming,” said TREB President Richard Silver.” TREB strongly believes that REALTORS® have an obligation to protect consumers’ personal information. That’s why TREB and REALTOR® Members are fighting for the privacy rights of consumers.”

The Competition Bureau is taking action that would force TREB to abandon the safeguards in the MLS® system and make personal information publicly available on the Internet, threatening the privacy and safety of GTA consumers.

If the Competition Commissioner gets her way, consumers’ private information, which is currently protected on our secure MLS® system, would become freely available on the Internet, including:

• Seller’s name and address
• Property floor plans
• Sensitive Property access information
• Negotiated sale price
• Mortgage details

“Ontarians clearly oppose what Commissioner Aitken is trying to do. They’ve said they want their personal and private information kept confidential,” said Von Palmer, Chief Government and Public Affairs Officer and Chief Privacy Officer for TREB.

If Commissioner Aitken gets her way, Ontarians won’t. Privacy matters. TREB is standing up for GTA consumers.

Visit www.ProtectYourPrivacy.ca for more information.

Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Over 34,000 TREB Members serve consumers in the Greater Toronto Area.  The Toronto Real Estate Board is Canada’s largest real estate board


Ben Sage, Sales Representative. www.facebook.com/SageAdviceRealEstate  www.bensage.com www.oxfordcountyhomes.ca RE/MAX a-b Realty Ltd., Brokerage. www.a-brealty.com

Woodstock Recreation and Leisure Fair

The 8th annual event is Sunday, March 4, 1-4 p.m. at Cowan Park on Ridgewood Drive.

Organized by Woodstock Recreation Advisory Committee this free community event features information on minor sports, adult sports, hobbies (photography, crafts, etc), groups who research history, collecting clubs, choirs, dancing, acting, singing, musicians (arts and creative arts), service clubs, and sports clubs to join -- perhaps badminton, cycling, lawn bowling, curling and even kids' tackle football.

For more details contact Glynis Hill at the City's Community Services department at 539-2382.

Ben Sage, Sales Representative. www.facebook.com/SageAdviceRealEstate  www.bensage.com www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Title Insurance - More Than Just Fraud Protection

How much do you really know about title insurance? This article explains how title insurance can protect you against more than just fraud...

What's in a title? - Mortgage Broker News


Ben Sage, Sales Representative.
Re/Max a-b Realty Ltd., Brokerage.
519-536-7535
521 Dundas St.
Woodstock, ON N4S 1C3
www.facebook.com/SageAdviceRealEstate
www.bensage.com
www.oxfordcountyhomes.ca

I am excited about Re/Max Curbside Marketing

For almost a year now (I keep telling you we're ahead of the curve), the office of RE/MAX a-b Realty ltd and its agents have been working with Quick Response Codes.  Many of us have implemented these codes into our marketing program, using them on our business cards for profile/contact information, or inserting them into feature sheets or onto lawn signs for quick access to information.



With the launch of Curbside Marketing, RE/MAX has made it absolutely simple to implement an advanced information system as a key part of marketing your listings.

For my listing clients, I am now including a custom sign rider (I'm sure you've seen these before) that doesn't simply have a URL on it (www.whateveraddress.com) as it has in the past.  The sign rider will now contain TWO methods of gathering information; the first is a "Short Code" that you may text on your phone (free of charge, of course), and receive INSTANT information on the listing you're sitting in front of! (Photos, description, property description and details, as well as video!).  The second is the trusty QR Code, which, for the more savvy Smartphone users, can be scanned by your phone's camera, and bring up the listing information without keying a single digit/letter into your phone!

Cool eh?


Watch this space for more, as I roll out this amazing service for my selling clients.


Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
www.facebook.com/SageAdviceRealEstate  www.bensage.com www.oxfordcountyhomes.ca

Panicky Beurocrats threaten to put a damper on the Real Estate Market again....

In a chilling reminder of what happened to our market as of July 1st, 2010, it is today being speculated that Jim Flaherty, our wonderful Finance Minster may act to stem the scourge of consumer credit that us Canadians are apparently awash in. 

Pundits have been ironically warning us for nearly a year, as our spending lifts the country further from the throws of a double dip recession, and distances us from our under-water American counterparts, that our growing household debt is a problem. 

Am I talking about raising interest rates?  Not likely at this point.  This certainly wouldn't help our escalating Loonie keep pace with the rest of the world.  What is being suggested today has far more sinister consequences for the real estate market.  For buyers and sellers alike. 

The reduction of the maximum mortgage amortization from 35 years to 30 years (or even 25?). 

Two years ago, maximum amortizations were reduced from 40 to 35 years. The results on the Real Estate market were difficult to track, as local pricing / market trends were all over the place in 2008. 

This time around, I'm 100% certain that it will chill an otherwise recovering new and re-sale housing market in Woodstock.  Let's look at a scenario.

December 2010's average sale price in Woodstock was $183,107.

Assuming 5% down over 35 years at a fictional rate of 3.94%, your payment would be $760.65

At 30 years, payments translate to $821.28

Under the same terms, at 25 years amortization, the payment balloons to $909.37

With Woodstock property taxes increasing at par with assessment phase-in, HST now in full effect on Hydro, gas, and other services,  the dawn of Metered Water services, Time-of-day Hydro usage, Rising Garbage tag prices, and other financial pressures on the household, what do you think could happen to the value of your home? 

Fewer buyers able to buy, fewer sellers able to sell for "what they need" out of a home... 

Basically, a big chill.  2007-2008 all over again.

The time to list is now.  Seriously!



Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

The Status Report - Woodstock Residential Market Update, January 2011

2010 was a very interesting year in Real Estate Sales in the Woodstock and District Real Estate Board.

Here's a look at some of the numbers:

The average sale price in 2010 was $218,216, up  3.44% from an average 2009 sale price of $210,957. For reference, 2008's average sale price was $215,202, and 2007 was $210,510.

Here you can view a Line graph of Historic Sales Values in Woodstock for the 2009 and 2010 Calendar year, as well as a bar graph illustrating the number of Residential homes sold in Woodstock for the same period.

It is interesting to note the trend - As predicted by myself and many in the sector at the conclusion of 2009, due to low interest rates and deferred purchasing, the first half of the year would be a busy time, with prices being pushed higher by steady supply and increased demand. Take a look at what happened to average sale prices after July, 2010.  The impact of the HST  had a large psychological effect on the buyers in the marketplace.  Additional factors that caused the decrease in sales volume and subsequently in the average sales price (by tipping the supply and demand scale) include the threat of rising interest rates ("buy now before the rates go up!), and tighter lending requirements. 

Going forward into 2011, I am confident that we will see very much a repeat of 2010 in terms of overall volume and average sales prices.  We've seen a pretty stagnant growth pattern year over year since 2007, and next year should look somewhat the same.  I expect slightly fewer number of sales year over year from 2010, and average sale prices to remain strong, but not growing much past the $220,000 mark.  It is expected by many industry analysts that we will have a very strong first half of 2011, followed by a stagnation in the latter parts of this year.  In other words, the graph should look strikingly similar.

Though we do not have any major factors on the horizon that might influence the market (such as the HST introduction), we do have several smaller factors influencing market strength.  The ongoing threat of higher interest rates has been somewhat subdued by latent recoveries in the domestic and American markets, but the recovery is gathering steam.  This means that EVENTUALLY interest rates will start to climb, and when they do, this is bound to have a negative impact on housing values.  It's been said that rates may begin to climb at the conclusion of spring 2011.

What does this mean for you?

Well, if you're thinking it's time to sell, the time to act is NOW.  Catch the wave that is likely to crest in March or April if you're looking for the best value in 2011. 

If you're buying, suppressed demand in the market means you will have time to act, but shorter supply trends indicate that prices are likely to increase throughout the year.  Be aware of interest rate trends, and make sure you get a RATE GUARANTEE if you are planning to buy.  If rates go up, you will be able to purchase less house for similar cost, so it makes sense to act soon. 

If you have questions about this post, or Real Estate in general, feel free to email me here.

I wish you all a safe and prosperous 2011.  I'm here, and ready to help!



Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Fall/Winter 2010 Woodstock Condo Report

After a tough year for Condominium sales in 2009, the prospects for selling a condominium in the Woodstock market are definitely improving, as signs of stability are returning to the broader economy.  A return to moderate confidence in the market has fueled a rebound in the Condo market throughout 2010.  Compared to only 60 condominium units sold (4 new) in the entirety of 2009, the market has shot back with a 21% rebound this year, with Year to Date sales of Condominium units in Woodstock totaling 73 (and we sit at November 30th).  5 of these reported sales were of new condominiums.

We have also seen some new and exciting condominium developments in Woodstock, including Woodstock's first "Stacked Townhouse" Condominium Complex in the South end of Woodstock.  With prices starting at $169,900 with a garage, this style of affordable luxury is certain to catch on.  They are a commuters dream, just seconds from Highway 401.

In the northeast end, The Builders Group is listing Residential attached condominiums, in 2 storey non-traditional style.  For the budget minded, these units start at $219,900.

In the Alder Grange subdivision, on the north end of Woodstock, sales continue of new Ranch-style attached condominiums, with either single or double garages, in 2 - 3 bedroom configurations, while across Highway 59, you have additional choices available, with Bungalows and Loft style Condominiums.

Employment prospects in Woodstock and Area remain promising, with CAMI on 6 day rotations indefinitely.  This plant is expected to churn out 250,000 vehicles in 2010, a record for this facility.

Toyota has been and continues to produce the RAV4 in its Woodstock facility, and many Woodstonians make the 25 minute drive up the 401 daily to produce Corolla's in the Cambridge facility.  The Woodstock factory employs roughly 2000 people and produces 150,000 RAV4's annually.

If you're making the commute from Cambridge or London into Woodstock, may I suggest looking at some affordable Condominium options?  With Condos ranging from $65,000 up to $300+, we certainly have something that suits your budget, and needs.

I'd be happy to help.

For more information on Condominiums in Woodstock, head on over to Your Condo World website, or email me and we can chat!










Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Housing Demand Perks Up

*Article courtesy of Heather Degraaf @ Scotiabank
Contact Heather for all your mortgage needs. 519-535-7890

Housing Demand Perks Up

After a seasonally uncharacteristic spring and summer slump, Canadian home sales appear to be stabilizing at a new lower, but more sustainable level. National MLS sales volumes increased 3% m/m in September, building on a similar gain in August. Sales activity is still down almost 20% y/y but the decline is accentuated by las August's record monthly sales pace. Two-thirds of local markets reported higher sales last month.

The moderate pickup in housing demand is being aided by lower borrowing costs. While policy tightening by the Bank of Canada has led to a modest backup in variable mortgage rates, fixed rates have come down across the maturity spectrum in recent months, mirroring the drop in bond yields. We expect interest rates will stay lower for longer, underpinning steady housing demand through the fall, contingent on at least a modest pace of job growth.

With new listings edging up only marginally last month, the new-listings-to-sales ratio edged down to 2.0. Meanwhile, the month's supply of active listings fell for a third consecutive month to 6.6. Both metrics suggest a more balanced national market. Sellers (and builders) in Canada remain highly responsive to underlying market conditions. Unlike in the United States, Canadian foreclosure rates are low and not a significant source of downward price pressure. New construction too is gradually moderating. As would be expected given generally balanced conditions, average prices are essentially flat (+0.2% m/m and -0.2% y/y). Prices were overbid last fall as buyers outnumbered sellers, but have fallen back to more reasonable levels.

While ultra-low interest rates remain highly supportive for the interest-sensitive housing market, moderate economic growth and hiring, debt-leery households and high home prices will keep many buyers on the sidelines for now. Look for a flattish fall national market from a sales and pricing perspective.







Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Chicken Little and Media...

If you're anything like me, you're a compulsive news reader. I have a love-hate relationship with news-media. I feel it is very important to be in touch with the world around me, as it impacts my business on a day-to-day basis, as well as shaping the future of my marketing avenues, and business planning, however, it can be very difficult to overcome the overwhelming, and CONSTANT negativity in the news.

At this time I am in a position, thanks to some wonderful Realtors and Industry analysts, to repeat a prediction that I encountered recently. Brace yourself for it - THERE WILL BE NEGATIVE MEDIA regarding the Real Estate market, very shortly. Yes, I know, this is a shocking revelation!

My goal today is to soften the impact of this sensationalist media by preparing you. By arming you with the facts.

Most of this content is "borrowed" from a gentleman named Doug Hannan, who is a Broker/Manager for RE/MAX West on Bloor st in Toronto (Another universe in Real Estate land, but nevertheless, seemingly the sole focus of real estate media in Ontario).

Doug obviously follows the Toronto Real Estate Market very closely. He has noted that in the month of July. TREB's (Toronto Real Estate Board) sales numbers were slightly lower than expected. He also noted that inventory had dropped a proportional amount, indicating balance in the market. Sales for the month were 6,566 units, down 1,900 from June of the same year (a typical seasonal drop - Vacation time!!). New listings this month are down 3,000 units to 21,096. It is to be noted that RE/MAX Realtors have been predicting a decrease in inventory since late 2009.

Where the media sensationalists will galvanize, is in the Year over Year numbers. It stands to reason that a July 2009 vs. July 2010 drop in sales of 35% would yield some alarm bells, but I am predicting that the media will have a decidedly un-elephant-like memory. They will fail to note (as they have previously failed to note) that July of 2009 was an absolutely ABNORMAL month, even in an extremely hot year. July 2009 Sales set a record at 9,967 sales (up 28% from July 2008). Benchmarking against the best July of ALL TIME is an unfair method of assessing the health of our market. The media won't mention this, save for a tiny disclaimer at the end of their "Real Estate Bubble is HERE, the sky is falling, depreciation is just around the corner, thousands to be left over-leveraged on inflated prices" reports.

The Sky is not falling, friends. Balance and sustainable growth will be the cornerstone of the immediate Real Estate market.

Thanks Doug - for the insight!

To Reach Doug Hannan of Re/Max West, try this:
doug.hannan@sympatico.ca

Thanks for reading!

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON