Hamilton Is Still Undervalued

by Darrin DeRoches December 29, 2011 - January 4, 2012

I read an interesting article about the top condo price in Mississauga this week. The building is referred to as “Marilyn Monroe” and has a listing of a penthouse in the price range of 3.2 million dollars. It seems absolutely ridiculous that this property has such a high price tag in this bedroom community. The article goes on about how if this property was in Toronto it would be worth a ton more and the latest high price condo sold for over 30 million in Toronto. What the f#@*!     Mississauga is nothing but a bedroom community of the big city of Toronto. They are reaping the benefits of being just 10 minutes down the road from the country’s biggest city. Our community is only about 40 minutes down the highway from the big city, but it seems to be taking longer and longer to get there. So if Mississauga has a 3.2 million dollar condo for sale we must have at least a 1 million dollar condo in our city. Of course we do! Well, not really. Our highest priced home with acreage probably does not even reach the 3.2 million dollar condo price tag. Which brings me to the point that Hamilton is still undervalued.     I don’t know if we need an NHL team to be taken serious, or if we need to start tooting our own horn. But we as a city, need to realize what we have here! McMaster just rated on the top of the list for something about Research and Development and they responded with – we need to maybe promote the fact we are doing a great job when it comes to inroads in published papers and research. Whereas another reporting firm rated Toronto as one of the top medical research cities in the world and they are shouting from the rooftops.     Developers are coming to town and making inroads with no fanfare. Vandrich companies are building a whole new block in the downtown with no interviews or fanfare, since he has only been burned and raked over the coals in the past on every development they have done. Other developers have had full page spreads and articles written about them even though in the last five years they have not done one development. Lots of ink, no buildings. A new year is coming and we should start celebrating our achievements and boasting about our future. If Mississauga can have a 3.2 million dollar condo then Hamilton needs to start realizing our own value and promoting ourselves to everyone that we are the best place to invest and our real estate is undervalued and will only make a lot of money in the future. Happy New Year. Will 2012 be the year for Hamilton? V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Flood Of Bad Debt

by Darrin DeRoches December 22 - 28, 2011

They are tearing down houses at an alarming rate throughout the United States. Thousands of perfectly good homes are being torn down, one after another.  Is it due to drugs, crimes, bed bugs? Is it to clean up a natural disaster? Asbestos, insurance claims, health reasons? Why are thousands and thousands of perfectly good homes being demolished? They are being demolished due to the term “mortgage is underwater.” Oh, so a flood then, right? Kind of, a flood of bad debt – no water required.     Many cities throughout the states are demolishing homes in their communities to save the city or town from a bigger “flood” of bad debt. Ever since the crash of the real estate market in the states, banks have not only allowed homes to sit and rot – they are not even trying to sell homes in most cases. The banks that caused the problem in the past are now causing the average value of properties to decrease due to the alarming rate of empty homes. A city like Cleveland is demolishing two homes a day at a cost of about $10,000 dollars a home. The bank has decided not to even take ownership once the mortgage holder walks away since they owe more than the home is worth which is referred to as “underwater mortgage.” Some people are working hard on still paying a mortgage that is underwater but the majority have decided to walk away and start over. These homes are then left for the bank who does not want to take possession of them since the cost involved in maintaining them and eventually demolishing them will add to the “loss” they have already incurred.     The bank created these ‘bad mortgages’ and are now leaving the costs and rotting properties to the communities they have gutted in the first place.  One street may have a dozen homes with half of them empty. These empty homes create a depreciated value on the whole street, so the people who actually pay their mortgage are losing equity in their homes. The city of Cleveland has decided to take on the cost of demolition and to ‘save’ the rest of the communities. In most cases they give the land to the neighbour who is paying their mortgage and they will maintain the property in the hopes their street will not become deserted and will regain the value it once had. They are trying to save their community while the banks just sit and hold on to the money they have already made. The ridiculous side of this is that if the banks would just “adjust” the mortgages they hold then they would make more money in the long run. Communities throughout the United States are being devastated by the largest disaster they have ever seen – corporate bank greed.V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Location, Location, Location

by Darrin DeRoches December 15 - 21, 2011

The most expensive real estate in the world is on Severn road in Hong Kong it will cost you $43,526 a month for two bedrooms and three baths. The same type of accommodations in our city would cost you under $2000 a month. It would not seem sensible to compare Hamilton to the most expensive city in the world, but Canada as a whole, did not even hit the top 10.     The second priciest street in the world goes to Kensington Palace Gardens in London, third is in Monaco, fourth in France. Fifth and sixth spot goes to New York and Paris, then seventh to Geneva, eight to Italy. Ninth is in Australia and the 10th priciest street in the world is in Moscow. The comparison is the priciest street in our neck of the woods is the bridal path in Toronto which is only worth about 10 percent of the world’s most expensive street in Hong Kong.     Should we be upset or proud of this?     A home on the bridal path will be a huge mansion, without buildings, land, garages, fountains etc., whereas in Hong Kong it is a townhouse/condo with a backyard as large as yours and mine. I usually would not concern myself with the ‘rich and famous’ but the perspective and magnitude of the differences intrigued me. The area and ‘prestige’ really affects the price of a property. In our community a piece of land in one neighbourhood can be worth about $30,000 and the same exact size of land can sell for $300,000 in another neighbourhood. Same size, same dirt, 10 times more costly because of location. I get the whole location, location, location of real estate but where is the dividing line? A property can be worth a certain price due to perception, its neighbours or the clout attached to it.      You really see this in the commercial property world. If you buy a property in a so called “bad area” and you fix it up it is only worth so much. Years later the city buys the corner property and pumps in 30 million into a building and Starbucks is now looking to open on the street, all of a sudden your property is worth a great deal more? The area is still underdeveloped and the dirt, cost of building etc. all cost the same but due to some investment and perceived value – the cost of a property can double, triple or more? We are seeing this happen on James Street and King William to a certain extent. Lister Block, Film Work Lofts, Central Police Station, theatres, restaurants all on King William which just finished construction. Word of a Starbucks coming to the area. How much is this street now worth? It is no Hong Kong or Bridal Path but properties on King William  with certainly be asking for a “King’s ransom” in the near future. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Strong Outlook For The New Year

by Darrin DeRoches December 1 - 7, 2011

The market is looking a little thin right now. It seems that since the weather is holding off, buyers are still looking to buy before Christmas. In real estate terms it is a buyers’ market. We have a house conditionally sold until Wednesday and we keep getting calls hoping the deal falls apart since their buyers want to make an offer and we have a couple of showings for Thursday if the deal does fall apart. An income property that has been sitting quiet for a month has received a lot of calls and a couple of showings with agents asking to be kept in the loop in case an offer comes forward. They have not even seen the property but the price is right and there is not much left on the market. It usually slows down this time of year and the weather has a lot to do with it.     If you were thinking of putting your home on the market in the New Year you may want to consider putting it up right away. To be a strong property on the market may cause a ‘feeding frenzy’ instead of being one of many in the New Year.  The snow is all around us and we are going to hit soon and the cocooning will begin, it’s now or never.     Season two of “My House Your Money” on the W network (Tuesday nights) is beginning to film in late January 2012 and Unique Realty has been approved to film an episode. The production company will pay $2,000 to a family that is willing to be filmed through the process of buying a home with Unique Realty. The show is based on a family member helping another member with the down payment on a new property. Plus you must be willing to be filmed for four days to do the episode. If you or someone you know are considering on buying a property in the New Year please contact us at 905.523.SOLD.7653 or email us at tv@unqiuerealty.ca for more information.     The year is almost over and I will be doing a year in review next month so if you have any questions about the real estate or mortgage market this year or in the coming year just email us at mail@unqiuerealty.ca and we will include your questions in the end of the year review. The predictions from last year were pretty dismal though the real estate market has been strong this year and the mortgage rates stayed the same all year. It will be interesting to see what the so called experts are predicting on the doom and gloom of 2012. I believe they will be blaming the “Eurozone” for all the projected doom!  V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Merry Christmas or March Break

by Darrin DeRoches November 24 - 30, 2011

The time of year and weather can really affect the sale of your home. Last night we received an offer on a home that we had listed for the last three weeks. The average home takes closer to 60 to 90 days to sell so we should be happy with our offer and time frame. We have to wait and see if the deal closes and if we tie up the house for a week. Based on all the conditions we may actually be in a tough spot, if the deal does not close. What is a week? At this time of the year, a week can actually feel like months – let me explain.     The first week of November we put up a property and we had a lot of showings with all positive feedback. We even had one agent call to express interest and to keep them informed if an offer came in. The second week the showings kept coming and the feedback was still positive. The third came and the phone stopped ringing. The sellers were concerned that something was wrong. Are we overpriced? Can we make some improvements? What is going on? I reassured them this was normal for the time of the year, the price is right and the house looks great. So why no calls? The time change. Once the clocks moved back people were adjusting to the days becoming shorter and darker. We were still getting a ton of hits on the MLS and our Virtual Tour – but no calls. I received a second call later in the third week where they made some suggestions to the listing and we updated and made some minor changes. The beginning of the fourth hits and the phones start ringing.     Did the changes on the listing make the difference? Nope. The weather is holding, everyone has adjusted to the time change and the phones are ringing. I had four calls on another listing that did not have a call in a month. I also showed a commercial property to a Toronto Architect who said “I flagged the property a month ago and was so busy and when I look at the listing today I was relieved it was still available.”     Timing and good weather are the major factors to how the market is acting right now and the weather will be bringing a deep freeze soon. So why am I worried to tie up a property for a week right now? If the house does not sell this week, the market will basically hibernate until the third week of January. So if the deal does not close, we have a week or two of activity until next year. Then the market will pick up and if you are lucky enough to get a sale in January the closing will likely be in March. So either we sell now and have a Merry Christmas or hold tight and hope for a March Break getaway.  Here’s to hoping for a Merry Christmas! V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Apartment Rentals

by Darrin DeRoches November 17 - 23, 2011

My brother just moved back to the city and was looking for a two bedroom apartment and I was surprised at the prices and lack of inventory. I told him to look on kijiji and to drive around his desired neighbourhood and look for ‘for rent’ signs. The first couple of weeks he came up empty and when we discussed his search for a two bedroom in the Durand neighbourhood was averaging over $1,100 dollars a month. All the apartments that he was looking at were either old or dumpy or over his budget of $1,000 dollars a month with heat and hydro. I have a couple of rentals in the area and my rents are in his budget– so I was a little surprised. I began to look a little closer at the rental market and realized that he was indeed correct. A decent two bedroom in a house was averaging around $1,100 plus utilities.      I bought my first duplex about 15 years ago and the two bedrooms were going for $865 plus hydro. That same apartment is renting for $1050 plus hydro today. About a 20 percent increase in 15 years, which is behind the allowable increase or rate of inflation? If I was to actually calculate the proper increases the apartment would be over $1,200 dollars a month. The value of the house the apartments are in has actually doubled plus in the 15 years but the rent seems to be under market value. My brother found a very nice older apartment in the heart of the Durand neighbourhood for $995 a month with utilities but has no parking and is a little small – but a great area and very nice apartment. It took him about a month and he viewed only eight apartments, since there were not that many available.     A couple of months ago I sold a home to an investor on Aberdeen. He is in the process of waterproofing the basement and is preparing to convert the home into two apartments with two bedrooms each. He brought by an older investor/property owner and showed her the progress of the project. She asked him what he was going to ask for rent on each of the apartments. He told her about $1,000 a month for each two bedroom. She told him he was nuts and he would be lucky to get $800 a month. He called me in a panic since he is relying on the income to make the project work. I brought him over to my duplex on the same street and showed him the apartments that are rented for $1050 a month and he was impressed. The apartments have hardwood, granite kitchens and updated baths. His project will have all of this plus glass showers, dark woods, brand new windows and doors etc. After viewing my property he is comfortable to rent his apartments for at least $1100 each though I suggested he ask $1200.     Moral of the story is a quality apartment will get top dollar!   V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

October Numbers

by Darrin DeRoches November 10 - 16, 2011

The real estate market continues to show increases in listings, sales and average sale price in the month of October compared to last year’s numbers. The condominium market had the largest increase with 11.8 percent increase in sales in October.  This would work out to be about 199 condominium sales which beat the 10 year sales average of 194 units in a month. This is just one month out of the year but when the numbers come out for the entire year you will see a large increase in condo sales. The City Square Project in the Durand area of Hamilton announced their second tower will be on sale this month and with the successful sellout of the first tower they made adjustments to make the majority of the condos to be in the 650 to 700 square foot size. This condo seems to be high on the list of condo buyers and I am sure the numbers for condo sales in November will beat last year’s numbers as well. The average sale price for a condo in 2010 was $237,119 and is now at $251,012 year to date which is a 5.9 percent increase.  This being said, if you were to buy a condo today and it is ready in two years you can make at least 10 percent on the value of the property before you even move in.  Basically the money you put down on the down payment will be recouped!     The residential freehold market also increase by only one percent in October over 2010 but the interesting part is the average sale price is up 5.1 percent – that is a great number! Where else, beside the real estate market, has there been such a strong and steady increase in value? Year to date the average sale price is at a four percent increase over last year. The average price for a Residential property in our market is up from $297,562 in 2010 to $311,591 so far this year.  The real estate market continues to grow and will hold strong in the future.  All the turmoil in Europe and all the natural disasters have not affected the real estate market in Canada and more importantly here in our neck of the woods.     We are in the beginning of November and the market has begun to slow down from the strong fall market. There may be less people looking to buy and sell but this too may be an advantage. A potential client wants to wait until January to list their property since this is when the market starts to pick up. I mentioned to them would they like to be a listing today that stands out in the market or a listing in January that is just one of hundreds a day that come out daily?  What do you think?  V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

The Big Wieners

by Darrin DeRoches October 27 - November 3, 2011

The biggest real estate deal in Hamilton was kept a secret. Finally city hall is acting like a business instead of a three ring circus with 16 councillors trying to be the ring leaders. Maple Leaf announced a $395 million dollar meat processing plant to be built in the Redhill Business Park right next door to their bread plant. This deal would never have been granted to our city if even one of the councillors got wind of it. They would have used this platform to blow wind so they can get face time in the media. Politicians have no place in the business of the city of Hamilton, they just need look over the proposals and to vote for us citizens when the deal is done. Yes – if it helps our city. No – if it does not.     If the city managers had taken the proper business approach in the past debacles – football stadium, NHL hockey teams, and waterfront – we would have grown as a city. 100+ years ago Hamilton was one of the top cities in Canada, next to Montreal and Toronto was called Cowtown since all they had was cows. Toronto exploded into a world –class city and we have stayed stagnate mostly due to how our politicians handled business in our city. We now just had our city general manager of economic development; Tim McCabe tell the councilors to “trust me” when he explained the deal to them and only the councilor Brenda Johnson voted against the deal. She later changed her tune and is now behind the deal, but it is just a prime example how “politics” made her vote no with the excuse she was not given enough time or information to vote yes. The development is in her backyard and I am sure her constituents would have voted yes to the development since it will bring more money and higher real estate values to their land.     Our community has won hundreds of new jobs, more tax revenue by the hard work of the top managers in our city – not by the politicians grandstanding and media spin. I hope this is a lesson to the city and the managers continue to keep a ‘lid’ on business developments until they have everything tied up in a proper business plan and agreement. Maple Leaf is bringing all their production to our city and will make over 400 different products. They are starting by making all the hot dogs for the entire country in our city.  Hamilton will not be known just as the steel city but as the “Big Wiener City.” Kitchener, Toronto and Burlington have all lost jobs and taxes and for once it feels nice to be the big wiener – or winner that is! V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Interesting View of the City

by Darrin DeRoches October 20 - 26, 2011

I had an interesting view of the city this week through a Toronto investor. This investor owns a ton of properties in the Greater Toronto Area and he wanted to see firsthand what is going on in Hamilton. A mortgage broker I work with asked our company to do an Open House Tour of possible investments in our downtown and university areas. We began our tour on a proposed condo development; we then took him through a successful project – the film work lofts. He was impressed with the price per square foot and that the units all sold. We hopped back into the limo and drove down to the old knitting factory to show a project that is years away, we swung by the Witton lofts and saw the barriers are up and work has begun. We continued on throughout downtown and saw the crane up and work happening at Caroline and Bay and pointed out what is happening there and the future corner with the McMaster proposed medical building.     We then swung by the New Horizon project on Aberdeen and Dundurn and saw the hole is dug and rebar and cement are being laid for the foundation. I then showed him a house I just sold on Aberdeen which is going to be converted into a duplex with a positive cash flow of $700 a month. Our next stop was just around the corner at McMaster Innovation Park where they are finished the 60 plus million new build and beginning the 26 million dollar renovation on the warehouse. We proceeded to look at a couple of student houses in Westdale and pointed out one listing I have where you can buy the property and have another home with at $700 plus monthly cash flow. By this time we have given the investor a ton of information and all possible investment opportunities in Hamilton. I then asked him what his thoughts were on Hamilton.     He said he has heard Hamilton was the “next big thing since 1985.” 25 years later and is it really happening? I pointed out how high our rents are and how much lower our property values are. He was concerned about the strikes at the steel factories but I reminded him about the high paying “new jobs” being created at McMaster Innovation Park. He wondered aloud: “who is buying the condos?” and I answered with the successful Core Lofts and Film Work lofts plus pointed out that new projects are now pre–selling and moving forward. We concluded our tour with the Toronto investor heading for lunch at one of our institutions of Hamilton – Denninger's. We could have taken him out to a fancy place but he understands Hamilton as a hard–working middle–class good–value–type–of–city and he wanted this comfort food. We finished the tour and I really enjoyed seeing our city through the Toronto investors’ eyes. Hamilton may not be flashy and hip as the next best thing, but rather comfortable and a good value where you can invest for the long term. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Buyer Beware

by Darrin DeRoches October 13 - 19, 2011

A few weeks ago I wrote about a house that was overpriced by close to $100,000 dollars, guess what? It sold. The house had had a couple of $10,000 dollar reductions and we viewed the home when they were still asking about $445,000 dollars. The agent called me and asked for “feedback.” In today’s market a lot of agents call each other to get their remarks. They are trying to find out what is wrong with the property and any suggestions one can offer to help sell the house. So when I was asked about the problem with this overpriced house I told her that it priced about $70,000 dollars to high. She then asked if we would consider writing an offer. I just told her that her listing is pretty much ridiculous and she is hoping I can write a ridiculously low offer to “shock” her clients into reality. Of course I declined since my buyers were not interested but more importantly why should I be doing her job? It is the realtor’s job to properly price and market their client’s home. So without being too condescending I simply told the agent she is not even close to reality.     A week passed and the same agent called me with a smug call. The sellers have drastically reduced the property by $50,000 grand. That is a lot of money. The property was now listed at $399,000 which is now priced close to the right price. It sold for around $390,000 which is still a very high price but about $75,000 dollars under the original asking price. Who knows what would have happened if it was priced at $399,000 originally. More buyers may have considered it and they may have sold for higher or may have not. The thing that amazes me is would you ever think of using that agent again? If you want an agent that will list your home for any crazy price, waste a lot of time, miss a great deal of potential clients – than you get what you deserve. More mortgage payments and less money.     The house sold and everyone moves forward but the part that really bugs me is the agent is expecting for everyone else to do her job. If you cannot convince your sellers to price it right than you should not be an agent. The seller is walking away with a bad taste since they probably believed they were going to get a lot more money for their home since their agent agreed to list the property $100,000 dollars over reality. The buyers may be happy since they just bought a new home but when their time comes to sell they will realize that they over paid. This property is above the top price for its area and unless they live in it for a long time, they are going to have a hard time when they sell it. I would usually not comment on a property unless I was 100 percent positive about the background, neighbourhood etc., but in this case I helped the original owner who did all the amazing renovations etc. and I just sold him a new project. Buyer Beware! V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Invest In Hamilton

by Darrin DeRoches October 6 - 12, 2011

I had a long conversation with a mortgage broker this week about income properties. They are keen on coming into Hamilton to look at the possibilities of investing themselves and also bringing clients into the Hamilton market. I sent him a current listing of a student home I have listed. The tenants just moved out and we put the house on the market for $319,000 dollars. It has seven bedrooms and two full bathrooms. The landlord has rented all seven rooms for a total of $2800 in the past. With 20 percent down (you have to put down on an income property) the mortgage would be around $255,000 with a 30 year amortization and a 3.9% mortgage you will pay about $1,200 a month. Add taxes, insurance, heat and hydro the total carrying cost will be another $600 a month. This brings the home to a total of $1,800 a month with a positive cash flow of a $1,000 a month.     The mortgage broker is impressed with how you can buy an investment property and make a good positive cash flow. He just helped another client of mine get a mortgage for 2.9% on a $212,000 dollar mortgage where they are just paying $780 a month. This property is going to be converted into a duplex which will bring in at least $2,200 a month. The cost of renovation will be rolled into the existing mortgage and when it is done the property will be worth at least $280,000 even though they will only have about $260,000 invested in the property. The mortgage will be about a $1,000 a month plus insurance and taxes, tenants will be paying heat and hydro. The house will cost under $1,500 a month, therefore a positive cash flow of $700 a month, the house valued up by $20,000 plus the pay down of the mortgage and value of the property rising, these clients will be making money – for years to come.     Hamilton is the last major city in Ontario where you can buy a property and the rents will carry the property and in some other cases create positive cash flow. The real estate investors are really looking at our city and realizing they can buy properties for a fair price and command high rents to carry the properties. The mortgage broker is so impressed he is bringing his family and clients into the city to do a tour. My company limousine will be driving them around on our Open House Tour and educating them on the correct properties and areas they should be investing in.      When considering on buying investment properties one must realize that you do not just sit back and collect the checks. You have to be able to rent the properties and maintain them, but with a little bit of work these investment properties in Hamilton can really create wealth!  V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

The Walk Through

by Darrin DeRoches September 29 - October 5, 2011

Some agents try to minimize or even eliminate the all–important walk through.  This happens once the deal is finalized and the buyers take an hour or so with the sellers and do a “walk through” and go over the property.  It may seem trivial to some, but it can be so important in the stressful times of buying a house.  A lot of agents will try to avoid this part of the transaction for one reason – they’re lazy.  They think it is a waste of time and since the deal is done why bother wasting a couple of hours with their clients when all you need to know is the where the main water shut off is.  Nowadays there are some many reasons to make a walk through a priority.     The buyers intention during the “walk through” is to understand where everything is and to really know what they need to take care of before moving in.  The sellers can show them where the main water shut off is, they are usually hidden. Is the satellite dish staying – which company is it? Is the surround sound that is installed in the walls working? How do you hook it up? Will the flat screen bracket hold up to a 60 inch screen? Garage doors openers and the codes to them?The alarm company and their codes? Is their oil in the tank for the winter season and where do you buy it from? The pool is closed properly but who opens it how do you heat it, where is the diving board? Is the cistern full of water, where are the pumps, who do you, buying water from? Last time the septic system was pumped and where is it? How does the fireplace work? Who insures the property now and is it worth staying with the same company? Is anything rented and do you want to take on the rental agreement. What day is garbage day? Mail delivery or keys to the mail box? Are there warranties on any of the appliances?  Neighbours, how are they? Local markets, kids sport leagues, volunteer or charities?     All these questions and more come to the surface once you begin to really look into your property.  Yesterday we did a walk through on a country property and the gun safe, garlic bulbs, weather system, manure, bird watchers, snow blower, generator, water purifier, driveway sealant, owl roost and donating white oak seedlings all came up in the conversation about the property.  The day started out with the buyers wife feeling overwhelmed to them walking up the laneway holding hands and she says “I love it here.” I had done my job and now they can focus and getting their house ready to sell and start packing to move to their dream property.  The walk through is invaluable in today’s market, the sellers liked my buyers so much they decided to leave the weather station and a big screen TV !  V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Let's Talk About Real Estate Agents

by Darrin DeRoches September 15 - 21, 2011

Last year I wrote about a brand new agent who cornered me at a birthday party and asked for my advice. She wanted my opinion on which company she should go with, a large office or small, by herself or join a team, etc. I suggested she should go with a smaller agency who will take the time to help train her and if possible get a seasoned agent who would be in the position to mentor her. Well this weekend the same birthday party happened and she gave me a synopsis of her first year in real estate.     She decided to join the biggest office in her area and to join the biggest team in the office. She felt the office had a great training program for new agents and the team was so busy she would be involved in more deals and learn a ton. She lasted barely three months and broke down in tears. The large company did have ‘seminars’ that are intended to help the new agent, they are listed on the website but these seminars never actually happened. The team brought her into their high pressure cold calling boiler room tactics which only taught her how desperate and conniving a real estate agent can be. Of course she was not making any sales and basically doing all the paperwork to learn what she just was taught in real estate school! When she finally got a lead on a property the “team” took over and let her watch from the sidelines. After months of doing nothing but paperwork she finally realized she was just there as an unpaid intern. The last straw was when she had a client who wanted to list with her and the team insisted they take the client, she decided to leave. The team tried to bad mouth her and take the client, but the client realized what was going on and decided to use her instead of the team.      She passed the client on to a new agent while she handed in her resignation papers and left the team, company and almost her burgeoning real estate career. The team accused her of stealing a client threatened her with lawsuits, fines etc. She went in tears to a family friend who is a long time agent with a different company. The new agent set her straight to the ins and outs of real estate, explained the team could not sue her and offered her a job as an assistant/buyer agent – on the spot. She now has a mentor who is splitting commissions and teaching her the real estate business from the inside out. She has made sales and takes care of all the new buyers.     The moral of the story for new agents is to find out what is suited for you. Ask a couple of different brokers their thoughts and find what fits you the best. She ended our conversation with “I should have listened to you, you were exactly right.” I gave her a couple of other suggestion on how to increase her business, let’s see what happens next year.  V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Phones Are Ringing

by Darrin DeRoches September 8 - 14, 2011

August is always a slow month for all business and real estate is no different. We are now into September and the kids are back in school and all the moms or dads finally have the house back to themselves. This is when everyone starts to think about what is next? Thanksgiving? Christmas?  The next couple of week’s people start to focus on a new home purchase for the holidays. The market starts to pick up mid–September and stays pretty strong until mid– December. So what does this mean for buyers and sellers?     First things first if you are thinking of selling – take pictures. The weather is already feeling like fall, but before it changes take a lot of outside pictures if you are even thinking of selling in the next eight to 10 months, especially if you have a pool. These pictures can be invaluable to sell your home in the coming months.  Most people cannot picture your yard and pool when it is all covered up. If the trees provide you privacy in the summer months a prospective buyer may be swayed by your pictures. A virtual tour with summer pictures will make your home stand out against your competition in the colder months.  People will be sitting at home searching homes on the MLS and when they click on your home, you have vibrant flowers, green grass, sky blue water in the saltwater pool and your competition only has a frozen driveway, grey cement pool and leafless trees – which house would you pick? If a picture is worth a thousand words, I am positive summer pictures of your home will be worth thousands of more dollars the sale of your home.     If you are looking to buy in the next couple of weeks make sure you have an agent who is on top of the market. They should have you on an email blast that will send you a prospective home the second it comes out, usually days before it hits the MLS.  Competition will be tight in the coming weeks since more buyers will be looking and you need to be on top of the market.  Some agents do not move “as fast” as other and you may lose out on your dream home or even worse get into competition and pay thousands of more dollars than you would if your agent is on top of their game. The second thing you should be looking at is older listing that has become ‘stale’ in the market. These are listing that have been sitting all summer and have probably dropped their price and are hoping someone will come by during this next little while and snap them up.  These homes are on shaky ground since they have been on the market for a while and the owners want to sell. There are deals to be made and I know of a couple listing in this situation and I am taking clients to see them tonight before the market heats up and so do prices.  V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Commercial Properties

by Darrin DeRoches August 25 - 31, 2011

I have a couple of commercial properties for sale right now and I have steadily been receiving calls on them.  The interesting part is that nine out of ten inquiries are from outside the city. The latest inquiry was for commercial space in Westdale.  The property we have listed is for lease and they are looking to buy a property for their expansion.  I was able to send them three suitable properties in their price range, though you would think more properties would be available.     You keep hearing how downtown Hamilton is dead, but if you look for properties for sale there are not many to be had. There is a lot of talk about the James street revival and the prices have jumped on the entire street.  It seems those who have bought commercial properties in the downtown are looking to lease instead of selling.  This is a big indication that downtown may be having a comeback. Yes we have heard about this time and time again, but this time things are actually happening. Treble Hall is on its way, several condo developments are selling, they are breaking ground on two hotels, condos and commercial space on George Street. Shovels are in the ground and things are happening.     The rumor mill is buzzing about another possible revitalization of the Royal Connaught. The Lister Block is just about done. All these projects will give a new life to the downtown and commercial business will follow. All these projects along with a new McMaster building will bring a lot of new people to downtown. More people bring more money.  This is when you will start to see more and more commercial businesses re–open in the downtown core. American chains are slowly entering our city with a new Marshal on upper James Street with Target coming in mere months. All these indicators show a compelling growth in our city.  Recent articles are highlighting the growth in people from Toronto moving into our Residential market. The commercial market is seeing the same influx.     What does all of this mean? Growth. Money is flowing and if you are thinking of selling or buying a commercial property in this city – the time is now.  You can still find a bargain in certain areas, but if you have a building in the more desirable areas – companies are buying.  It may be the time to re–think your property and look for a better tenant or sell your property for top dollar.  They are all looking for high traffic areas and if you have a property in or around these areas be selective about your tenants since higher end tenants are now looking closely at our city for expansion.  V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

You Get What You Pay For

by Darrin DeRoches August 18 - 24, 2011

So I was reading the Wall Street Journal the other day! Ok, I was on Facebook and a link popped up to a story at the Wall Street Journal about the founder of ForSaleByOwner.com. This site and type of sale is usually referred to as a FSBO.  It is where a seller of a property pays a salesman for a sign, online exposure and other basic real estate information in the pursuit of selling their home –by themselves – without the aid of real estate professionals.  I have written about these systems before and they advertise themselves as the alternative to $15,000 commissions for only $199 for their system.     To be fair – some people use the system and sell their homes.  Others view these systems as just multi–level marketing systems that are simply selling you a sign and forms and leave the rest up to you. I personally know people who have used these systems and sold their home. But they then used a real estate person to buy their new home. They tried to avoid the commissions but in the end they actually sold their home lower than the market value. They listened to the FSBO Company who had them price it on the low end of the market, and it sold. So did they really avoid commissions or lose out on profit?     So the founder of the website ForSaleByOwner.com – Colby Sambrotto had an apartment of his own to sell in Chelsea, New York. So of course he used a real estate agent, instead of his own system.     “A founder of a website dedicated to direct sales of homes by their owners has sold his two–bedroom apartment in Chelsea for $2.15 million with the help of a real–estate broker and a standard 6% commission...”     The interesting part of the story was not that he used a professional real estate broker but what the broker had to say “At first he wouldn’t let me increase the price,” [the broker] said. “I told him I know what I am doing – the market is picking up.”       I wonder if the owner was buying a bigger place for millions more since he is making money on people selling real estate with his website or was he selling because he is losing money on his website?  It just goes to show you that the owner of a website that sells real estate has no idea what he is doing when it comes to real estate.  His broker had to argue with him to increase his price and he went with a broker in the first place, so they can sell his property.  So he sold for over two million and paid in excess of $120,000 in commissions with all the money he made from people paying him $199 to sell their real estate? Irony or the old saying “you get what you pay for!”  V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Seeing The Potential by Darrin DeRoches August 11 - 17, 2011 My client this week is looking for a property in the Westdale area where he can add value. We selected two properties which needed updating and set appointments for both.  The first one has been on the market since the beginning of the year and is vacant and is currently priced at $229,000.  The second one was on the market for $249,000 and just dropped down to $199,000.     We viewed the first property and it had great hardwood floors and large rooms. The basement was as they say “high and dry” but was unfinished.  They added a back room on the house but they used cheap materials and it showed. My client and I love the location and the potential for the property is there. So why is it still on the market?  Price! The agent selling the property is related to the seller and they did a small price reduction of five grand. This indicates they believe the property is worth the asking of $229,000.  Based on location the property would be worth $265,000 when updated. The update would include a new kitchen and bath upstairs that would cost about $20,000.  The basement can be converted into a new two bedroom apartment that would bring in a minimum of $900 a month and it would take about $30,000 to complete. Plus all the windows would have to be replaced, so the house is really worth $200,000 for my client to move forward with the project.     The second home just dropped $50,000 dollars and is located in a prime rental area also. The problem is the owner has lived in the house for nearly 40 years and has not done any updates to the property. The roof has four sets of shingles; the floors are sagging, knob and tube electricity etc.  The agent is aware of all the issues and is trying to convince the seller to drop the price again. This property will need in excess of $80,000 dollars to bring it up to today’s standards and will be worth $260 to $275 thousand dollars when completed.     There is potential in both properties but an investor will need a down payment and a line of credit to do all the fixups and there are not a lot of people out there with this kind of money. You have to also include the “unknown cost” plus you would like to make a profit for doing all the work.  There is a lot of potential in both properties due to the area and income potential. The only issue is getting the properties at the right price. We are going to keep our eyes on these properties and wait till the timing is right to make an offer.  This is where you make your profit.  It is not how much you can sell the property for; it is how much you pay for the property.   V                                      Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Casting Call!

by Darrin DeRoches August 4 - 10, 2011

We are looking for families who are looking to purchase a property with a family member who are interested being on a new TV show called “My House, Your Money!” Below is the email we received from the casting director which explains the show:     Good Morning, Darrin!     We are still looking for families for a brand new show, from the producers of quality real estate programs “Property Virgins,” “Property Brothers” and “The Unsellables” and I wanted to contact you again, as our episodes are quickly being cast.      Since our last messages, the show has been re-titled, “My House, Your Money” but its focus remains the same – parents, assisting their adult children with the purchase of a home.  A couple of examples:  Parents contributing to the down–payment of their adult child’s first home (or second or third...); Parents purchasing a student house, for their University–bound child.     Each episode features a family, maneuvering through the excitement of property purchase, with their unique dynamic and the agent who guides them on their journey.     A time commitment of about four days is required to shoot one half hour episode. All the best, Debra Taylor (Casting Director) MY HOUSE, YOUR MONEY         We have been chosen to do an episode of the show and are trying to find a family who is interested in purchasing a new property and are willing to be filmed during the entire process. The show will pay up to $2,000 dollars as an appearance fee for the four–day commitment, which will really help out with your down payment. Unique Realty will take care of all your real estate needs and the filming company will pay you for appearance on the show, even if we do not complete a purchase of a property.  The show is very specific about the dynamic between the parent and child who are buying the home.  The child can be the one buying the home for the parent or vice versa. Both the parent and child have to be willing to be on camera for the four days.     We are excited that a production company would come to Hamilton and film throughout our city and we would hate to miss this opportunity to showcase the real estate market in our city.  We have already filmed an audition for the show and the process is very easy and laid back and you will not really notice the cameras once the process begins, so give us a call and we can give you more information about this unique opportunity!   V                                      Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

The Quiet Storm

by Darrin DeRoches July 21 - 27, 2011

I was in line today getting a great sandwich when I overheard a couple of gentlemen talking about the sales of condos downtown Hamilton.  A recent project in the Durand neighbourhood just launched a few weeks ago and it sold over 70 percent of its units.  It will take at least a year and a half to construct but I would bet on two years till occupancy.  The gentlemen were talking about this project and how selling was “no problem” and they are looking at “what’s next?”  That is exactly what we all should be looking at….what is next?     The “quiet storm” of condos building is brewing in Hamilton.  The first wave was the film work lofts.  Then the Herkimer Apartments came in quietly, and then they sold the Witton Lofts. The Stinson Lofts are over 70 percent sold and supposedly the Hamilton Grand is starting to be built.  This is a huge influx of condos with a great deal of others in the works.  Five years ago you would not even think of buying a condo in downtown Hamilton, but now they are selling “pre–sale” at a rapid pace.  This is a big deal and nobody is really talking about it.  I had a conversation with an agent who sells new high end homes and his question was “who are buying these condos?”  Well according to the two gentlemen in the sandwich shop 90 percent who are buying are going to live in them.     These condos are selling upwards at $300 plus a square foot.  That is big dollars when compared to a newly built house or townhome. The reality is they are selling!  The investor should be looking at these condos and consider buying them as an investment.  You can pre–buy them at the lowest price and when they are finally built, two years later, the increase in value all but covers your down payment.  Rent them out and they will cover the mortgage and low maintenance fees.     So what is next?  They have started to break ground on the project on Dundurn and Aberdeen.  The announcement of the purchase of the old knitting factory by Beasley Park will be the one to watch.  They have supposedly passed enviromentals and since they bought it for a “song’ they will be able to develop it and make a tidy profit, even if the neighbourhood is rough.  There is a project for 50 units in the works on Locke Street which if priced right will be a great investment for the future.  Let’s not forget the projects at Caroline and Bay, which will be a biggest development in downtown. Condos downtown are going to change the landscape of the city.  They are going to be bringing people back to our core and I believe this is just the beginning. If the city does get the “ALL DAY GO TRAINS” then these condos projects will be the biggest investment for the next 20 years in our city.  Pay attention and get in while you can!   V

Summer Real Estate

by Darrin DeRoches July 14 - 20, 2011

It is the time of the year to enjoy the cottage and take that well deserved vacation. So who is buying or selling right now? A prospective client called me last month to do a market analysis on their property since they want to sell and move to the country. They figured they would be ready in two weeks and let’s get it sold! Two weeks pass and I contact to arrange a time to list their property and I wait for the response. A week passes and the response is  “we cannot agree to sell right now, he is still fixing the attic, and we think we should talk after Labour Day.”     What might seem like an excuse, isn’t really. Who in their right mind wants to be working in the heat in the attic right now?  It is hard enough to get through the week without losing it. Once the weekend comes around, the last thing you want to do is work on the house.     The timing of selling a house can really affect the price.  If this particular property was ready to sell today we would have very little competition and I would believe we would sell before Labour Day. The home is located in a great family neighbourhood close to schools and I am sure there are families out there looking for a home they can move into before school starts. So we will wait to after Labour Day and the home will still sell, but it will have way more competition and may not reach its full value. It is just a missed opportunity.     Buyers who are looking for a property can start to see prices dropping in the coming weeks.  If a property has been on the market for a little while they have become “stale.”  These properties will not be getting too many showings and the sellers will start to wonder if they should be dropping the price.  Summer is a slow period in real estate and some buyers may have to sell and they will be more willing to drop the price to get the deal done.  So if you are considering on buying this year, now is the time to give a broker a call and look to see if there are deals to be made in your desired area.  A good agent can do some research and find that diamond in the rough.     Life gets in the way sometimes, but if you are looking to buy or sell this year, the next six to eight weeks can be a great opportunity. It may be tough to get all the things done to sell but it will be worth it.  If you are looking to buy, it is a good time to at least look to see if there are any deals out there right now – worst off you can educate yourself and be ready to buy when the time is right.   V      Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Gordie Moonie

by Darrin DeRoches July 7 - 13, 2011

All remaining charges have been dropped against Gord Moonie. Who cares? We all should. I have had the pleasure of working with Gord in the past and he did great things, in a very short time, for the City of Hamilton.  He got things done and he single handedly brought some of the biggest developers to our city.  He came from a business background and installed it into a political arena.  This business ‘get it done’ background was the demise of a not only a great man doing great things for our city, but in typical fashion of the city – they hung him out to dry.     Gord Moodie was the head of the city’s downtown residential loan program. He was charged by the OPP with municipal corruption and breach of trust. They said he took $5,000 from a developer to obtain city loans for downtown development. Of course it is a complete and utter lie. The mayor, Bob Bratina, has been quoted as saying “There was never any question in my mind that Gord Moodie did his job honestly and with integrity.”     Too late now or is it? I applaud the mayor in making such an honest and forthright comment on a man who the city itself threw to the wolves. The city used a DUI conviction as the veil to remove Gord from his position, but is that to say all city employees shall be fired for a DUI conviction? I doubt it.      Gord Moodie brought over 100 million dollars in development to the city in his short tenure of four years. What have we lost in investment over the last three years since he was ousted? Probably another 100 million of investments, at least. We need people to work outside of the political games inside our city.  Gord not only did this he also produced!  So now we talk about his legacy and the mayor went as far to say “...the name Gordie Moodie will have to be on the plaque,” on how other projects Gord stared are now coming to fruition.     A plaque does not help the city.  A plaque does not help Gord’s family. The mayor always  supported Gord – so give him his job back!  That’s right, you are the mayor, and you know he did his job with honesty and integrity.  He brought in 100 million dollars of investments.  The city is doing better since Bob became mayor, we will do even better if we had Gord Moonie back running our development.  Hell, offer him a raise – five grand is a good start!   V                    Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Relocating To Hamilton

by Darrin DeRoches June 30 - July 6, 2011

I have had to help clients relocate to our area in the past and it can become quite an ordeal to do so.  The first client contacted us to look for a property for her son and herself in the Westdale area since her son was attending university.  They were looking to sell their home in Windsor and purchase a new home here. The first thing was to understand their expectations and to be able to deliver on them. When you compare a home in Windsor to a home in Hamilton you have a pretty big difference.  A large four bedroom home in the best area of Windsor will sell in the mid–500s where the comparable home in Ancaster would sell for at least the 800s.  Big difference.     I have good connections in Windsor so I am able to refer a local agent I have worked with in the past and they would be able to better serve the family home in their city. Yes I could be greedy and sell their home in Windsor, I lived there for six years and I understand the market, but a local agent who is five minutes away can sell the home for the highest price instead of me driving three hours to close the deal. Now that the house is in good hands I have to find them a comparable home in Hamilton. Their home in Windsor is selling for the mid–300s and their budget will be the same.  In a comparable area the homes available are quite dismal in comparison. They had a double garage, three bedroom, cathedral ceilings, dream kitchen and I am able to find them a “fixer upper’ or small bungalow with no garage, no high ceilings, ok kitchen.     Now take the same clients with the same budget moving from Toronto. The have a condo for mid–300s and want to move to Hamilton. They get a house, yard, driveway, full size kitchen in a great area. The house is the same one but the Toronto couple will be ‘over the moon’ with all they will get within their budget, whereas the Windsor family has a lot to get used too.  Hamilton has a lot to offer to both families but affordability is in the eye of the beholder. The Windsor family is moving because of the university and the need for change, Windsor is having a tough time for middle class families.  The Toronto family looks to have a home, yard for their growing family and sees Hamilton as a great opportunity to raise a family outside a cement condo tower.      Relocation has its ups and downs and as a real estate broker one must understand their expectations and try to fulfill them.  Know the limitations and work hard to find them their best options when relocating.   V                    Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Business Coaching

by Darrin DeRoches June 23 - 29, 2011

I met with a client the other night and a real estate broker was sitting at the same table.  I recognized him from his ‘bus bench ads’ so I introduced myself and we started to have a little small talk and a few drinks. Eventually the talk rolled around to the topic of real estate and when I referred to my clients latest sale the real estate broker asked my name, again, and immediately referred to my company as the one with “the limo!’ and how he reads my articles. So, a few more drinks and the “bus bench guy’ and the ‘limo guy’ start to talk real estate.     As a seasoned real estate broker he understood the ins and outs of the industry and he could really relate to the effectiveness of our company limousine and the use as a mobile office. “Brilliant” was a word he kept using when referring to the limousine and the service we provide.  It was refreshing to hear his perspective and how he understood how Unique Realty strives to provide full service when it comes to real estate.  Our conversation covered all the bases of real estate but we both kept asking what each other thought was the best avenue to reach potential clients.     The big thing in today’s world of business is “coaching.”  There are businesses coaches who- for a fee – will help you improve your life and increase your business.  There are several different approaches and fees involved.  Some top agents talk to a coach daily and spend thousands of dollars a month for this service; others may talk weekly and spent about 500 bucks a month to have a ‘coach.’  A coach may be successful themselves but like a coach in any sport he may have never succeeded but he knows the ‘game’ and how to motivate.  The game today is to really connect with a perspective client.  Years ago you did direct mailing, then email blasts, now Facebook and twitter.  Thank you cards with a personalized note are the latest and greatest marketing tool.  I agree with all these methods and I use them all to stay in contact with clients, but what about getting a coach?     I have another business friend who used a coach in his business and he was all head over heels with the coach – at first.  A coach will keep on you and use all the buzzwords – but what really resonates with a buyer or seller in today’s market? We both came to the same conclusion that old school service and the personal touch will never go out of style or become a buzzword. You are making the biggest financial decision in your life, service and knowledge will go a longer way than a coach or a buzzword!   V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Simple Questions, Lots Of Options...

by Darrin DeRoches June 16 - 23, 2011

Sometimes you forget that not everyone understand the process of buying and selling property.  This week on Facebook I had a friend ask for some advice on real estate. Her question was simple: “Darrin, how do you know how much is too much when it comes to renovations on a property you plan on selling in the near future? And at what point do you contact a listing agent when you are preparing to sell? And should you use two different agents when you are selling and buying?”     I have personally renovated several properties, from commercial to residential and I have also consulted on countless others. I suggested I should go to a “Market Evaluation” of their property before they started the renovations. I can show them what their home is worth today and also give them an idea of what the home will be worth when they are done the renovations.  Unlike many other brokers I am honest with your expectations. If a simple paint job will do the trick — than that is it.  Kitchen and bathrooms are “as is” and reach the same goal without the time and costs of a renovations.     The fear of doing “too much” is very real.  People put in so much effort in renovating their home and once they are done they sell.  You finally have a dream kitchen, but now let’s sell.  Seems odd to do all this work and then move on.  Why not sell your home today and buy another home that needs work.  Put all the money and time in a new home that you will be living in. You get to enjoy the fruits of your labour for years to come.  For every dollar you improve your new home you will enjoy it, the same dollars you put into the old home – someone else will enjoy.  The goal is always to get top dollar, but you can market your house as a “fixer upper” and still reach full potential.  If you put in a new $20,000 dollar kitchen you will not necessarily get $20,000 more for your house, plus all the time, effort and stress.  Put that kitchen into your new property and it will be a better investment. Every home and situation is unique, so take the time to really look at the numbers and see what is best for you and your situation.     The second part of her question is do you use two different agents when you are buying and selling? No! The same agent will be able to assist you in both buying and selling.They should be accountable to get your home sold and then find your next property.  If they cannot sell your home you probably do not want them to find you a new home anyways. A good agent will price your home properly, market it and get it sold with 60 to 90 days.  If this is not achieved someone is not being realistic. One good agent can help from the start of the renovations, throughout the sale and right up to securing your dream home.  V

Eviction Specialists

by Darrin DeRoches June 9 - 15, 2011

One of my clients decided to sell his student rental last month. We put it on the market and received great attention and a firm offer for a great price. At the same time he still had it up for rent. The landlord decided to go with the renter, signed a year lease and took the deposit check to the bank. I had to tell the prospective buyers the bad news and that was that.     Two weeks have passed and the new tenants are all moved in, all the little fix–ups were completed but he gets a call from the bank – the deposit check for $1,800 has bounced. The landlord stops by the rental to see what is going on.  The house looks great, kids bikes are in the backyard, they even set up a kiddy pool – everything looks good – must have been an oversight.  The tenant starts out the conversation saying the fridge does not work properly, the grass needs cutting blah, blah, blah. When asked about the check the tenants states, “I am not going to pay.” The landlord is a little taken back by all this, they get into a heated discussion and the last words from the tenant are “I know the game!”     What game? The landlord calls me for advice and I tell him some very unfortunate news that it will take a minimum of 60 days to evict but it would likely be about 90 days.  The landlord is losing it, thinking up all these schemes of how to remove the tenant but I remind him the loss of three to four months of rent will add up to about $8,000.00 dollars but it is a lot less than potential damage or legal proceedings. He found it hard to swallow so he called his lawyer and he was referred to an “eviction specialist” who basically tells the landlord the same thing we discussed, except he says they can get them out in 60 days. A month has already passed so 90 days is the real cost, I doubt they will get them out in 60, but we’ll see.     The game is the tenant knows how the Landlord tenant acts works, so he moves his whole family in to a new property and does not pay. He knows it will take 60–90 days to be evicted.  He does not pay the utilities, does not have to pay for lawyer’s fees and basically takes the landlord for six to 10 grand in the process. Then the last month of occupancy he looks for another property and does it all over again.  The kicker is the “eviction specialist” knows the tenant by name.  He just evicted him from a property seven blocks from my client’s property. Cash the deposit check first before they take possession, call past landlords, only accept first and last and if they are in a rush to move in, offer cash, give you a story – lose a month’s rent now instead of  a ton of stress and thousands later.  V       Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Home Evaluations

by Darrin DeRoches June 2 - 8, 2011

I just love  when I get calls from clients wondering how much their home is worth. Last night, a client who bought five years ago, calls and asks me to do a Home Evaluation on their property.  My first questions is “are you ready to sell” and they standard answer is “no, but we are thinking about it.”  So I do the search, find the comparable, put it all in a neat little presentation and send it to them. They bought the property at $216,000 and my evaluation comes in around $239,000 to $245,000. A $20,000 increase in less than five years is pretty decent.      So I call them to discuss the evaluation.  We talk about the comparable and the one that sticks out is a house four doors down that just sold. The husband goes on that it sold for $240,000 and it has no garage and needed work.  Why then would theirs be worth only $245,000. We start to look at all the other comparable and start to discuss the difference and similarities and we keep coming back to price.  I explain we need to look at the one comparable four doors down and I agree with them that the house is very close in size and yes it needed some upgrades and we both agree their garage adds value. Once we narrow it down to this one comparable we take a closer look.     Again the husband points out it was up for over $240,000 and that he has upgraded his house with a driveway, flooring, paint and some new counters and tile. I have seen all the improvements and I ask him how much did it all cost?  After some back and forth we agree the upgrades over five years were about in the 10 to 12 thousand marks.  So it has taken about 15 minutes to go through all this, now it is time to explain why their house is worth only $245,000 maximum.     The house four doors down was up for over $240,000 but it sold for $227,000. So if we take ten grand for a the fix ups they have done over the years and add ten grand for a garage (all high numbers) then add it to the price it sold for it comes up to $247,000.  The price I told them would be the highest they would get.  It took a bit to sink in but they agreed their house is worth the $245,000 dollar range, but I had to ask why they thought their house was worth more? Their neighbour just renovated their kitchen and had an agent come in and do an evaluation and the agent said it would sell for $280,000.  The house is much larger, has a pool, brand new kitchen and the agent is trying to get their business so he most likely bumped it up so they would consider selling. Greed is good but reality is reality.  I am sure next year they will be ready to take their increase and upgrade their house. V                                 Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Economic Summit

by Darrin DeRoches May 19 - 25, 2011

This year’s economic summit spewed a lot of success stories or was it just the same projects from last year, rehashed? The biggest topics of success in this year’s economic summit was McMaster Innovation Park, Treble Hall and two animation companies moving from Toronto to Hamilton. I think it is great that MIP is up and running but let’s realize it's just the beginning and the real work that needs to be done is filling in the rest of the park.  They filled one building with innovative companies, built a government funded building — now what? McMaster is one of the biggest economic forces in our city and they should be “knocking it out of the park” with development and announcements. It has started but I do not want to see the big field of dirt sitting there for years to come.     Treble Hall was the darling of the summit.  It is great that someone has bought a building that is in dire need of restoration. I am not knocking them at all but they have the plans in place and it looks good but I think we should have been applauding guys like Jamie Kara who completed the Film Work Lofts and is looking to do more in our city. He “knocked it out of the park” and will again if the right project is there.  I would also applaud the development on Wellington where a self–made man is risking his money on a 10 unit condo building.  They are close to completion and deserve the recognition.      My point is that these “summits” are a great place to talk about all the government projects from MIP to Mohawk College.  Everyone is self-promoting how they are doing their job and bringing development to our city.  I applaud you doing your job but I believe another economic summit should be held to present the “Oscars” for the hard working, risking it all, developers or companies that are putting their money and hard work in to Hamilton, to make it grow.  It is great two companies are moving from Toronto to Hamilton – love it – but they are only doing it because of grants in place by the government to make this happen. I hope this is just the beginning of a wave of companies leaving the GTA and landing in our great city.     As a real estate broker in Hamilton I am receiving more and more inquiries from outside the city.  I have several student homes for sale by McMaster and I would say only two out of ten inquiries are from agents in the city.  Mississauga, Milton, Oakville and Toronto agents are all calling and are excited to show the properties to investors from the GTA.  Hamilton is moving in the right direction but let’s not overlook those who are “risking it all” to make the city great!  V

The Gift!

by Darrin DeRoches May 12 - 18, 2011

In today’s real estate market it is hard to save up for a down payment. The government has taken away the 100 per cent financing of a property so you have to have at least 5 per cent of the purchase price as a down payment. If you have 20 per cent of the down payment you can avoid the “mortgage insurance” which is about $7,000 dollars added to the average house deal today.  You also have to prove where the money for the down payment comes from, meaning you cannot borrow the down payment.  Except for the “gift clause” which is a document signed by a family member stating they are “giving” you the money.  Just as it sounds the money is a gift – not a loan.     A gift of the down payment can be a great tool to save money.  Not only can you avoid “mortgage insurance” by increasing the down payment, you can negotiate a better rate for your mortgage with a larger down payment. In essence if you avoid the insurance and negotiate a better rate the money you will save over the course of the mortgage will pay back the down payment itself.  Let’s say your parents have money in a RRSP collecting little interest. They plan on letting the money grow to a point where they will be giving it to you as an inheritance.  If they took that same money out today and gave it to you as a “gift” this money will not only grow in value as the house does – you now own a home.  They will also be able to claim the money as a deduction and there is no tax on taking the money out of the RRSP when used to purchase a property.     The reason this all came to mind today is that I was contacted by a production company looking to shoot a pilot episode of a new real estate show for the W network.  The premise of the show is parents helping out their children throughout the process of buying a home. We are looking for buyers who are willing to be on camera throughout the entire process. It can also be children helping their parents downsize.  The production company will film the process and our company takes care of all your real estate needs. It will take about four days to shoot and they also pay a fee for your ‘appearance’ on the show which will aid in the down payment. This company has done Property Virgins, Property Brothers and the Unsellables.  So if you or someone you know are looking to buy property with their parents give me a call or email today and I will fill you in on all the details! Unique.  V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Downtown: The future is now

by Darrin DeRoches May 5 -11, 2011

There has been a lot of hub bub about what is going on downtown and its revitalization. The first person to knock what is going on simply has not walked around downtown lately.  I finally got to walk through the new glass enclosed market and library this weekend and overall I’ve got to give it top marks.  Some people complain the aisles are too tight and the selection is limited but overall the only problem I can see is keeping it clean.  It may only be months old but the white walls and glass needs to be cleaned. The design is awesome but the upkeep must be a priority.  There are a lot of other buildings in various stages but it seems as spring has sprung, so has the activity on many properties.     The burned out building on the corner of Hess and King, finally has a crew in there cleaning up the debris. Word is they are going to rebuild the floors and put a roof on.  At least this is a step in the right direction. The Hamilton Grand at the corner of John and Main has the construction boards up and they are starting to get all the soil out for remediation.  People having been knocking this project as another pie in the sky but you have to understand how long things take to get permits and plans all in order. It will be an odd site to see a crane in downtown, but I hope to see it soon with many more to follow.      McMaster University is putting money where their mouth is on a proposed project at the corner of Bay and King.  They are doing a study to see the real cost to build a medical building at this location.  They are talking up to 100 million.  We are still waiting to see the construction begin across the street with a new hotel, condos, etc. Everyone loves to give their opinion to this site but the owner has invested millions and I mean millions in our city and when he is done the city council should not only apologize for their skeptics, they should rename a street after him.      There are a lot of other condo projects in the works and some other exciting announcements coming soon for our downtown.  In the next few years the new projects will change the landscape of our city.  The all–day GO trains and being listed in the top 10 cities to invest in are all steps in the right direction.  It takes time for all these things to be built and let’s not forget how tough the last two years were. Condos, hotels, medical and new artists buildings are all the right factors to show the future of our city is happening now! All we need to do now is to start boasting about our city instead of knocking it.  V                                   Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.