To FSBO or not to FSBO
April 7, 2009
I wrote this article a while back and wanted to share with you the Top 6 reasons to NOT to sell privately. Sure, you’re thinking, yeah, yeah, she’s in real estate, of course she’s going to discourage selling a home privately.
My answer to that is yes, you’re right, with my first hand experience and education in real estate, it would be negligent to sell privately. You open yourself up to way too many risks and at the end of the day, I would rather go with an expert, and you should too.
For Sale By Owner Cartoon
Real Estate Professionals Are Insured
Similar to driving a vehicle, you need to be insured to protect yourself should you get involved an accident. The same goes with real estate. With the increase in number of real estate transactions, the number of mistakes and lawsuits generated from listing properties, financing, misinformation in advertising, permits, legal and title issues and so on, are also increasing. Mistakes and negligence made by an unrepresented homeowner can result in a costly affair, one that could have been avoided. An unrepresented seller who overlooks even one required form or legally mandated disclosure could face a protracted and expensive buyer lawsuit after the transaction closes.
Security and Safety
Selling a home, unfortunately, can give rise to serious security threats, especially when it’s done by someone who is inexperienced, and unprepared. The use of a Realtor provides another added benefit in that every showing or open house conducted by the listing or cooperating agent is recorded by the respective brokerage. It is the Real Estate Agent’s duty to his or her client to ensure that the home is being cared for in the absence of the owner and prospective buyers are being chaperoned by their agent.
Privately Listed Homes Are Poorly Marketed
Just like the fisherman who uses a trowel as opposed to a single line to ensure the best and most plentiful catch, a well marketed home on the market acts in a similar way. By attracting a large volume of potential buyers, a seller can bring forward more prospects and offers as opposed to accepting the first buyer that comes along. This is achieved by use of MLS (Multiple Listing Service), networking with other agents within the brokerage, institutional advertising, mass marketing via flyers, newspapers, email campaigns, etc.
An Unrepresented Seller Will Typically Overprice Their Home
This one may seem surprising to some. Why would a homeowner, who is trying to save on real estate costs, list their home above market value? The answer is simple; the seller believes that their home is worth more than comparable homes in the same neighbourhood. Overpricing a home is a sure way to deter potential buyers and the longer an unsold home is on the market; the more people will think there’s something wrong with it.
FSBOs Sell Their Homes for Less Money
According to a report conducted by the National Association of Realtors in 2006, homes that were sold with the help of a real estate professional in 2006 sold on average for 32% more than FSBO sales. The median FSBO selling price in 2006 was $187,200, compared with $247,000 for agent-assisted transactions.
Time is money
One of the most famous phrases coined by Benjamin Franklin in 1748 has become the mantra for those who value smart, well thought out choices in the business world including real estate. Sellers who choose to forgo representation and sell independently face time preparing for open houses, showings, and juggling consistent calls from potential buyers who may or may not be serious.
The inability to effectively prescreen for serious buyers, financially or otherwise, can be stressful on anyone. Sellers also face an emotional roller coaster when a prospective buyer views their home and frequently will offer sharp criticism as a strategy to cut down price, a licensed Realtor offers a buffer in order to reduce all of these unnecessary stresses.
Harmonized Tax in Ontario
April 7, 2009
HST in Ontario - UGH!
So, we all know that effective July 1, 2010, we will have a new tax system in Ontario - “Harmonized Tax”, and there isn’t really anything harmonious about it. I used to be one of those proud Ontarians who would pity other people from other provinces (mainly Maritimers) who have HST in place. Now word on the street is other provinces will likely follow suit.
Gas Prices will cost more with HST
What makes me laugh is how McGuinty is going to mail out cheques to help with this new HST implementation. Wow, gee thanks Dalton, that’ll really help us recoup the costs of paying more taxes over the many years to come.
For those who are worried about paying a chunk of tax change when purchasing a home, well, fear not, because on resale homes, taxes are usually “included in” the purchase price. What’s going to hurt is when you purchase a new home. Developers are going to have to be more creative as paying 13% tax (rebate or no rebate) is going to be a turn off for many. Plus, there’s the added cost upon closing: legal fees, real estate commissions, inspections, moving expenses and so on.
What’s also tough is the cost of paying higher taxes on basic goods such as diapers, shoes and children’s vitamins. What about small retail businesses that will lose customers as consumers will look to discount stores in order to save?
It’s interesting to see that the last couple of cheques some families will receive will line up nicely with the next election. Coincidence? Yeah, right.
10 Reasons to Move to Toronto
April 2, 2009
I‘ve wanted to compile short list of reasons on why Toronto is a great city to live in for some time. If you’re thinking about moving or relocating to Toronto, here are some of the reasons why (in no particular order) Toronto rocks!
Donald Trump beside a maquette in Toronto
9. Tim Horton’s - Ohhh, how I love the sweet delicious smell and wonderful taste of these roasted beans. A “true” Canadian will opt for a Tim Horton’s coffee than any other “unmentioned”, “overpriced” brand. I always look forward to hot summers and my Tim Horton’s iced cappuccino.
Cup of Tim Horton's Coffee
8. Culture - The great thing about the city is the cultures. Torontonians can really boast about the diverse cultures this city has. Chinatown, Greektown, Little Italy, Koreatown, Little India, and so on.
7. People - Sure, every city or town for that matter has its share of kooks. However, Toronto is so diverse in its people (somewhat ties in with #8), even the off beat ones are “normal”. Anyone can walk around in this city and completely blend in and become a Torontonian without missing a beat.
6. Food - I love the food here. It’s amazing. There are so many restaurants, grocery stores, different types of food, different price points. You can have an amazing meal here without breaking the bank. Going to Lawrence Market on the weekend for fresh food is so much fun. How about the blue chip truck on Queen? Have to give a shout out to his poutine.
Taste of the Danforth - Megas Restaurant in Greektown
How about Canada’s Wonderland? In all fairness, this should be a separate category all in itself, but it technically falls under entertainment. Who doesn’t enjoy a fear inducing roller coaster ride? One word: Behemoth. Try it, love it and do it again.
Top Gun Rollercoaster at Canada's Wonderland
4. Parks - Parks are somewhat taken for granted here in Toronto, and those who enjoy nature and have a furry friend who needs to be walked every day, know what I mean about having Parks on this list. There are so many gorgeous parks in the city and we work hard to keep it clean and beautiful all year round. I love the fact that you can take a hike and it feels like you left the city when you really haven’t really left at all.
3. Its Safe and Clean - Our city is one of the safest and cleanest cities out there, and trust me, I’ve seen so much worse. I’ve been to large cities (rather not mention them here), but they were polluted, smelly, smoggy and very very dirty. Toronto’s streets are on the most part litter free, and our air quality is pretty good.
2. TTC! - Who doesn’t love the TTC? It’s economical, fast, easy and green! For anyone needing to get around fast and without feeling the pains of rush hour traffic, take the streetcar or subway and get a coveted metropass.
TTC Streetcar at Dundas and Spadina
1. Sports and Hockey - Toronto has some pretty awesome teams. We have the Leafs, Argonauts and Blue Jays to name a few. We have the Hockey Hall of Fame which boasts our love of a cold rink and a puck. Toronto and the Leafs really go hand in hand and well, we’re a hockey nation.
Hockey Night in Toronto
Honourable Mentions
The Toronto Islands
Harbourfront
Distillery District
The Toronto Zoo
Exhibition Place
