Time To Talk Real Estate

by Darrin DeRoches December 12 - 18, 2013

A popular topic of conversation over the holidays seems to be real estate. Some people like to quote the increase in their homes value and others like to talk about their plans for 2014. The holidays are usually spent with family and after you talk about how your year was, real estate seems to creep into every conversation. This may be a good time to talk to your family about “gifting” funds to help you buy your first home or to “invest” with you in your future. If you are considering a real estate purchase next year, and need a down payment, you can be “gifted” the money from your family. Banks allow your family to give you money for a down payment since they are helping you in your future. These funds cannot be borrowed but a gift of money is fine. Instead of asking for some big ticket item for Christmas, consider asking for your down payment.     Real estate has increased in value in the area of seven per cent for the last couple of years. Ask your family how their GICs have paid out, two per cent, maybe. You can also inform them about using their RRSP to invest in real estate up to $25,000 dollars each. This money will not be taxed when it is used for real estate and the increase in value of real estate will more than cover the money earned in an RRSP. Plus, you cannot live in an RRSP. I am not suggesting that you hit up every family member you meet over the holidays, but a little bit of knowledge can be dangerous. Everyone likes to talk about how their investments have paid off this year and some people have extra money at the end of the year that they are looking to invest with. Again, real estate is paying off and is pretty safe when investing. Consider buying condos in 2014 and you will be able to make a good return on your investment. This past year, certain projects made speculators in excess of 60 grand per unit where others may have only made seven per cent but that is still a better return than GICs and less risky than the ever volatile stock market.             There are a lot of great projects coming up next year and picking the right one can make you a great return. Over the holidays, take time to consider your next move in the real estate market. It may be time to buy your first home, invest in a second property or upgrade your present home. Talk to your family and see how well they have done in real estate over the years and see if they want to grow with you in the future. The market looks strong for the next few years so use the holiday time to consider your next move. Then give us a call to find you the right property in the right area to maximize your biggest return on investment. The right broker can make you a lot of money. 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 sold@uniquerealty.ca.

Broom Swept Condition

by Darrin DeRoches December 5 - 11, 2013

When you are selling your property you have to leave it in “broom swept condition.” This means that the property must not have any debris left and must be completely empty.  If you are unable to remove that old desk or forget to take out the garbage, you may be sued.  You would think that most people are happy to sell their house and would leave it in good condition but you would be surprised.  If an agent suspects that the property will not be cleaned or debris may be left, they will set up a walk through on closing day.  This is when they will check out the property to make sure that the seller has removed all belongings and it’s clean before the new owners take possession.     I have had an agent call me on closing day to accuse the seller of stealing the curtains and would not close the deal. After a heated exchange between the agent and myself, I had to explain to her what would happen if they did not close the deal. The reality of the situation was that the curtains were not stolen and they were in fact the exact curtains that were there when they viewed the property.  They were looking for a $500 reduction for the curtains and I had to explain that they were not getting a reduction and if they did not close the deal then I’d be calling the lawyer. I would make sure they would lose the house and their deposit.     You would think it would be a waste of time and energy for a buyer and an agent to view the property on closing day to try to squeeze more money out of a deal.  In some cases agents will split the cost from their commissions to get the deal done.  Good agents will not fall into such a pathetic tactic and actually stop the deal from closing and will make the selling agent pay for the costs plus the cost of wasting their time.  In some cases the seller is actually in default and can be sued for leaving the property in a condition that may have costs involved.  They can stop the closing and the cost may have to be negotiated.  I have dealt with this situation and it can be pretty touch and go.     The property must be in “swept condition” and if they leave a bunch of debris, they will have to pay. I have spoken with sellers daily on  the week of closing with them assuring me it is just a couple more trucks to the dump and it will all be taken care of.  Closing day comes and the house is still a dump. The buyer’s agent calls and we have to work out a deal, call the lawyers and make an adjustments to the closing costs.     Take it seriously when closing a property and make sure you are prepared to leave the property in good condition and maybe even go the extra mile and leave a six pack in the fridge as a welcome gift. 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 sold@uniquerealty.ca.

Hamilton Heritage

by Darrin DeRoches November 28 - December 4, 2013

I had the pleasure of attending a panel discussion of the Economics of Heritage Preservation at the Hamilton Club. Every time you hear about “heritage” in a city, you think of stuffy people trying to save old buildings and slow up the progress of new properties. I figured I would enjoy the beauty of the Hamilton Club, some food, and a few drinks and that would make it worthwhile.     The room was filled with a diverse group including the who’s who of Hamilton builders, politicians and city employees. The mayor started off with a warm welcome and positive outlook on the evening’s speakers. The speakers came from Toronto, London, Buffalo, Ottawa, Waterloo, and New Hamburg. They all had a different perspective on saving “heritage properties” and the costs of doing so. Each speaker could have held their own night and gave a lot of information about the pursuit of transforming a heritage property into a successful, profitable property. I was impressed by each speaker and their candor and willingness to share their experiences. They freely showed the cost per foot and the “premium” people will spend to be in an updated heritage property.     You can replace the windows with replicas for a lower cost than removing, restoring and re–installing the existing ones. The costs, preservation and even landfill ethics when it came to windows was discussed. This all just proved a point as to where does heritage take over function and costs. I was most impressed with Clayton Smith from Commercial Realty Group who is, in my opinion, doing restoration the right way. He is taking underserved properties in downtown Toronto and restoring them to their glory. I spoke with him over a beer in the meet and greet and his openness to share the real costs and the higher returns he gets from his properties really drove home the message of the night.     Take an old building, update it to today’s standards but keep all the history in place. I always thought that a “heritage designation” would hurt the process but listening to the discussions throughout the night, everyone is happy to have a building saved and repurposed properly. I walked away with a new perspective and a kind of excitement to see what Hamilton has to offer with our old buildings and our builders restoring them. Stinson School, Dundas School and the Royal Connaught are all going to be proof that restoration and heritage will bring great profit and a greater pride in our city. I applaud everyone who was involved in the night and look forward to the future of our heritage! 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 sold@uniquerealty.ca.

Avoid The Media Hype

by Darrin DeRoches November 21 - 27, 2013

As the year is coming to an end the experts are starting to make their predictions for the Canadian Real Estate Market. We are being warned to raise our interest rates from a European council based in Paris who believes our market will no sustain its present strong increases. They then go on to predict our market will increase from 2 to 3 per cent in the coming years?  Are they really looking to help themselves by asking us to raise our rates?  Then you read about this “bubble” coming in the market.  A “bubble” happens when there is too much inventory on the market and not enough buyers and it will finally burst and the market is flood with lower priced inventory to try to right itself. You read about the Toronto and Vancouver markets where they are building condos at a high rate and many are sitting empty. I myself was in Toronto this weekend and everywhere you look a new condo is popping up. All these glass towers may become Toronto’s problem in the future but they are more concerned about the glass pipe right now.      So how do you know what is real and what is just media hype? Stop believing what everyone is writing. But of course you are reading my article right now so what makes me right?  I look past all the media hype and the company slogans. I am involved in real estate in market daily. I speak with real estate agents, brokers, banks, lawyers and credit councilors weekly.  These people are dealing with the market and these are the real indicators.  This time of the year is slow for real estate, so you start to look ahead in to the New Year and figure out what is going to happen.  It has been a strong year for real estate and Hamilton is moving at a good pace. There are investors coming to town.  Companies are relocating. A good amount of “Toronto buyers” are buying in Hamilton. The new GO Station is coming next year and sure it will have some impact but not as strong as “all day” trains. All this “growth” shows a strong movement in the coming years.     Hamilton’s real estate market has been moving upward for the last fifteen plus years. We have kept up with the pace of the market but lately we are now on top of this growth. I would not say that Hamilton’s real estate market is “hot” or the “next best thing” but who wants to be that? Warren Buffet invests in strong, steady and robust companies and that is what Hamilton is right now. Ambitious City is what is being thrown around right now but I believe strong and steady will always win. Throw in a little ambition and you have a great future in the market within a great city!  Lastly, Oskee Wee Wee — Tiger Cats — bring home the cup!  It would be great way to finish the year at being # 1. 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 sold@uniquerealty.ca.

Sellers' Market

by Darrin DeRoches November 14 - 20, 2013

October was another strong month in the Hamilton – Burlington real estate market. We continue to increase the sales and prices while the amount of listing decreases. This is the reason it is a sellers’ market. The low inventory allows the seller to increase their price since competition is low and buyers are out there looking for properties. The average sale price of $397,403 was an increase of 3.9 per cent over the previous October. There were 1730 properties listed in October, an increase of five per cent over October of last year.  End–of–month listing inventory is 6.3 per cent lower than last year.     The fact that the average sale price is almost $400 grand in Hamilton is big news. It was not long ago Hamilton broke the $300 grand mark and the last couple of years the market has been increasing at 6 and 7 per cent. All the so called experts are now calling for the market to stay strong through 2015 which tells you to invest now. Hamilton is still undervalued and will continue to grow until it levels off to the surrounding areas levels. One day there may be a slight “adjustment” in the market but Hamilton will weather the adjustment. If you look into the future there are a lot of developments coming in the condo market, residential and most importantly commercial lands. These factors will strengthen the Hamilton real estate market and where else will you get a 7 per cent return.     The old Lifesaver Building near Gage Park just announced it will be converted into condos and the city property in the old Banisters strip club is open looking for rents higher than they expected. There is also a business park being built downtown on old brownfield properties. These projects have taken over five years to come to market but they are finally happening. The condos in the old government building on Caroline are about to be closed in and the sign is almost up to start selling them. The building on the corner of Hess and King has drywall up and looks to be almost ready to sell and rent. These projects are varied in size and uses but all of them are showing a strong market and huge success. Brownfields, burnt out buildings, old unused spaces are finally coming back to life.     These are all indications that the market will remain strong and you should be considering on investing in your city. The phones keep ringing from out of town investors looking to buy up property in our city and we should reap the benefits as well. The big question is which ones will be the best investment. Take Burlington for example, the condos on the water gave huge returns as compared to condos being built by Upper Middle Road. The right investment in the right project will be the big question 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 sold@uniquerealty.ca.

Call A Broker First

by Darrin DeRoches November 7 - 13, 2013

If you are considering selling your property in the near future, consider calling your real estate broker first. Sellers think they may have to do extensive renovations and spend a lot of money with the belief that they will make more money when selling. This may be true in some instances, but most of the time less can be more. An experienced broker can help you make the right decisions on which renovations you should do to increase your selling price.     The easiest and cheapest is a professional cleaning team who will do all the little things which will show your property in the best light. Painting is the next best thing a seller should do and brings the biggest bang for your buck. Carpeting is the last and most economical facelift to your property. These three things are the cheapest and easiest things that will make a huge difference when selling any property. If you bring in an agent and they start rhyming off a huge list of things to do, you should maybe consider doing nothing. Every property has its price and sometimes the best thing to do is nothing.     Some agents think that they know everything and want the seller to invest a lot of money to sell their home when the real answer is to market the property as a “fixer upper” or “updates required”. These properties may be more appealing to the market depending on timing and price. A lot of agents want you to do everything under the sun to make it easier for them to sell the house when the right answer is to do nothing and sell it ‘as is’ and make more money. A properly marketed property will sell in any condition.     Calling your broker first can save you a lot of time and money. A good broker will be more than happy to advise you on what work should and should not be done. They should even know what colours to paint to be “on trend” and help sell the house. A good broker should be able to suggest a painter, carpet company, and plumber etc. who will do the work right and for a good price. Again, if an agent comes in and gives you a huge list of improvements and does not help with the process then maybe you should call a different agent and get their opinion. Brokers go into hundreds of homes every year and they should know what is working to help sell a property. You may think that you need to spend thousands of dollars when all you need to spend is a couple of hundred on new outlets and a thorough cleaning. I have waited over a year for some clients to get their property ready and then sold it within a week. I have walked into a property that was in terrible shape and sold it within a week. Listen to a broker who has the experience and can help you make the right decisions and in the end make you the most money. 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 sold@uniquerealty.ca.

Fixer Upper

The Fixer Upper

by Darrin DeRoches October 31 - November 6, 2013

Everyone watches the HGTV shows about fixing up a house and making a huge profit. People think it is so easy to flip a house and you hear about it all the time in real estate. Talk to any agent and they always have people who tell them to “call me when you see a house to flip”     The problem is – by the time you call these people the house is already sold. I recently listed a “flip house” on the market and it usually goes something like this. The first day it is listed you get calls from about a dozen agents and you set appointments all day. Day two another dozen agents call and they want to get in and you allow them through. By the end of day two you have had a couple of calls about buyers wanted to pay a low ball number. You explain to them it will not sell that low and yes you agree it will take “30, 40 or 50 thousand dollars to fix up and the selling price will be – whatever they think and yes there is no profit in it”. Day three it hits the MLS system and you start getting inquiries from buyers without agents who want to buy their first “flip” and “can they now set an appointment?” You also get a couple of your own buyers through who also agree the profit is too small for their time.     By this time you have had every “flipper” and so–called builder through the house and you may even get some quick “low ball” offer. If you did your homework you should know what the top dollar the property can get and where the number should reasonably fall. By the end of the first week you should have had a couple of low offers and one offer that may be close to what the seller is looking for. A good agent will make the sale with a good offer. A bad agent will take a lowball offer and explain to the seller that the house needs a ton of work and you should take the offer before the house sits on the market forever. A great agent will take the close offer and get it up to a number the seller deserves and close the deal to the highest bidder who will get the opportunity to the “flip” and make a nice profit once they do the renovations.     Some builders will not take on a project for less than a twenty thousand dollar clean profit but others realize they can do the work and make a quick profit, even if it is a little less. They can then move on to the next “flip” to continue to make more money.     There are a lot of unknowns when taking on a flip but a great agent should know the real costs of a flip to help the seller or the buyer make a proper business decision so everyone wins. The seller should get top dollar and the buyer should make a nice profit. Win, win! 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 sold@uniquerealty.ca.

All Cash Offer

by Darrin DeRoches October 24 - 30, 2013

What is the big deal about an all cash offer? It sounds impressive and some people like to brag but does it have any advantage? An all cash offer is supposed to be exactly like it sounds. The buyer is paying cash for the property and there are no conditions of getting a mortgage arranged. There are a few agents out there who watch a little too much television and throw around this term “all cash” to sound impressive but then they start to do some backtracking.     The best offer to make on a property is all cash with no conditions. This means if the seller agrees with the price and closing date they can just sign the deal and it is done. The buyer cannot back out and you do not have to wait a week to see if they can arrange a mortgage, do an inspection etc. These types of offers gives the buyer a great advantage since they usually will offer a little lower than the seller is willing to take but the idea of the property being sold – this minute – is very enticing. The agents love it since it is done and nothing can come up to kill the deal and the seller can stop showing the house and move on.     Some agents use the term “all cash” but then add in a clause or two which gives them the out in case they are unable to get the mortgage. I know it is hard to believe agents may be less than truthful but they like to use the term to reap the benefits of the lesser price and appear to have the upper hand. In the past I sold a “fixer upper” which brought a ton of interest and competing offers. This one agent thought his “all cash” offer which was about seven grand lower than the competing offers would win. In most cases a true “all cash offer” would be the best offer to take in a multiple situation since the money may be less but the property is sold and you are guaranteed the number on the paper. If you took another offer that had conditions and they may come back to you asking for a rebate etc. The only problem with this agent was his “all cash” offer was bullshit. After asking a few questions and the agent asking to have the buyer’s son take a look at the property again, the red flags started to pop up.     The agent then calls and making complaints about the roof and this and that. I stopped him in mid–sentence called his bullshit and we went with a true all cash offer for the same price and sold the property to another buyer. This agent was trying to use the “all cash” offer to get our attention then he was trying to negotiate the price down further since they had this big bag of money – supposedly. Their loss, since it was a fixer upper and the second group went on to fix the property. They then sold it for a very nice profit which made them “a lot of cash”. 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 sold@uniquerealty.ca.

Hamilton Condos

by Darrin DeRoches October 17 - 23, 2013

For over the last six years we have been hearing about how Harry Stinson was going to revolutionize the condo market in Hamilton. I have written about his projects and plans over the years and I was skeptical in his progress and outlook. The word on the street is the first occupants will be moving in to the Stinson Lofts on October 24. I can insert a few skeptical lines about no occupancy permits and ongoing construction but why knock a guy who is delivering a beautiful if not gorgeous condo product to our city.     It is so easy to complain about the time it took and the promises that came and went but have you ever done a major renovation or building? It takes a lot of time and delays happen daily. The Stinson Lofts are not a cement and glass building you can build in months; it’s a heritage building with amazing architecture and grand designs. The fact they have kept the integrity of the building intact and did not just use the structure as a façade for a new build, as others do all the time, should be not only applauded but appreciated. The next great build in Hamilton condo market is the Royal Connaught where they are also preserving the grand beauty of our heritage with the newest in today’s building techniques. If all goes well they will add towers to the property but the grand lobby will always be the jewel of the city. The Witton Lofts kept the old and mixed in the new in the condo market with great success. There is talk now of the Tivoli with keeping the theatre with new construction that is already facing criticism from people who would never buy a condo anyways and do not even know how the project will be built.     Harry Stinson was recently quoted as saying “Hamiltonians have a schizophrenic relationship with the city,” Stinson says. “There’s a great deal of boosterism and talk of how much they like the city. But there’s not much confidence...” And I agree whole heartedly. I love to knock Toronto guys who tell us their opinions on our city but “boosterism” is probably the best way to explain it. These condo builders need to sell their units and when the project is announced everyone shows up for the free champagne, they all start to tweet about it and then? Nothing.     The point is, stop jumping on the bandwagon of the newest and latest condo project or even worse, criticizing the developers for doing it. It takes a lot of guts to create a Witton Lofts, Stinson Lofts, Royal Connaught as well as building any condo project. These projects are increasing our tax base and bring new people to our community. Support them as they do their part to grow our city. 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 sold@uniquerealty.ca.

Strong September in Hamilton Market

Strong September

by Darrin DeRoches October 10 - 16, 2013

Sales are up for the month of September and came close to setting a ten year record. The best news is the average sale is a whopping $392,013 and this is a 6.7 increase from the same time last year. The total sales of homes were 1207 for the month. Luckily, listings increased since they have been scarce in the last while so the market is still a little shy on listings but homes sure are selling. If you read all the stats there are adjustments for seasons etc. But, the big news is homes average time on the market is down by eight days and the year to date increase is 7.7 per cent higher than last year.     This means your home just made you a 7.7 per cent return on your investment and all you did is live in it. Hamilton is continuing to be a front runner in the real estate market and outside interest is strong. The best part of all these stats is not just the increase but that they are real increases. Hamilton is not flooding the market with thousands of condos that are bought up for the purpose of flipping which inflates the market which does not give a true reading when looking at the market. Our numbers are showing actual houses selling for top dollar. The future looks good and the market is staying strong. So when should you jump into the market? Yesterday.     The interest rates are supposed to stay low until at least 2015 but most likely longer. If you look at mortgage rates the lowest are the two year rates since the banks know this is the time it will rise. They want you to be re–mortgaging at this time to pay a higher rate. The savvy investor can play the two year rate and hope it has not jumped up too high by the time it comes to negotiate a new mortgage. All these indicators are showing a strong market with continuing great rates. This is why you should make the move soon. Of course you can look back ten years and say what if I bought then my property would be worth so much now. Instead, you should look ahead ten years and figure out how much a property should be worth then.     The Hamilton market has been steadily increasing for over the last 15 years and it will continue to grow. We are in a resurgence that will most likely weather any storm the market will bring us. Larger cities with inflated prices and unaffordable mortgages will feel the hit, but we should be able to stay on course to “catch up” with the surrounding market. Be smart, buy the right property at the right price and you will see a great return in this city. Put a little bit of work into a property and you can cash out even higher in today’s market. More on that next week. Happy Thanksgiving! 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 sold@uniquerealty.ca.

Baby Daddy Drama

by Darrin DeRoches October 3 - 10, 2013

Lately I have been involved in the sale of the matrimonial home in a couple of messy divorces. Divorce is a big part of real estate; they saying go with the big three D’s “Death, Divorce and Debt”. These are the main reasons for selling property. Moving on up to the bigger home and the first time buyer are the other half of all real estate deals.     I am currently selling a home where the one partner does not want to sign the deal. We have a great offer ready to close, greater than their expectations, one wants to sign but the other will not. We spoke with her lawyer and he advised her to list and sell the house since it was in her name and they have not lived “as a couple, for over two years”. We took the lawyer’s advice and listed the property a week ago. Within three days we had a great offer and she accepted it. Then, let’s call him “baby daddy” who is not involved made a fuss over the sale and asked how much did “we” get for the house. She informed him of the price and that was that. A day later he started to ask a ton of questions about the house and she told him to speak to myself or the lawyer to answer all his questions.     Within a day he had a lawyer and was claiming the home to be the matrimonial home. He did not pay one mortgage payment, gas bill or hydro bill. His lawyer is calling it the matrimonial home and he is claiming 50 per cent ownership. His name is not on the title but when they started out together three years ago, they had a child and they lived in the home as a couple. Two years have passed but he is now trying to get 50 per cent of a property he has paid nothing into. The women’s lawyer now changed his tune and asked us to get him to sign the agreement. Problem is the deal is accepted and we are waiting for them to remove conditions. We ask the “baby daddy” to sign and of course he says, “No, and I want 50 per cent of the profit”. They have never been married, he has never paid a dime into the house and he has now almost killed the deal since he will not sign. They are going to sit down with their lawyers and try to work it out but if he does not sign the deal will be dead. In all fairness, he legally may have a right to try and get money out of the house but morally, I think he is in the wrong. It just goes to show you the biggest issue in divorce is the money and it usually involves the biggest asset; the home. I would usually get both parties to agree before listing a property but in this case the lawyer instructed her that he had no legal claim. The lawyers may be the ones making all the money in this case. 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 sold@uniquerealty.ca.

The Art Of The Deal

by Darrin DeRoches September 26 - October 2, 2013

In real estate the “art of the deal” can be the most important part when selling your home. There are tons of real estate agents out there who can write up a deal and then there are the ones who know how to structure a deal. In Hamilton — Burlington there are about 2500 agents at any given time. So your chance of getting the best agent or one of the best is kind of a crap shoot. Some people go with the agent who has the most advertising. They figure the agent must be the best if he constantly sells the most. Others go with a friend or family member. Again, any one of these can write up a deal but very few know how to structure a deal.     Last night I made a deal with an agent who had been in the business for over 20 years and I had never worked with her before so I did not know what to expect. First things first, she showed up and presented the deal in person. Secondly, the opening offer was reasonable and the clauses were pretty standard. Finally, she was likeable, talkative but still business minded. These three things seem standard to any agent but you would be surprised. In today’s world of real estate a lot of agents do not “present” their offer they just fax or email it in. This impression gives the seller very little to work with. We can ask all of the standard questions – are they pre–approved, first time buyer etc. but having the agent actually sitting across from the table, the answers and information they give you is invaluable. Sometimes the way that they say it or their reaction to a “tough question” gives you a lot more information than an email.     Negotiations start with the first phone call, first impressions and all the way through to the last word. Anyone can list their house on the internet and wait for someone to come with an offer but how you present the property and most importantly negotiate the deal — this is where you make your money. The agent presented a good deal and we were fifteen thousand apart and if we went the regular route of negotiations we would have ended up at $290,000 for the property. This is only the first step in making the sale because, again, anyone can make an offer and sign an agreement but it is more important that they can close the deal. The agent showing up and explaining their clients, time frame and all the little details help with the negotiations. My clients felt as though these buyers would not only pay a fair price but close the deal, so we could move forward. My client wanted to sell to move on with their life but also to get top dollar so price was just as important as time and hassle. We got $292,000 which is over their expectations but more importantly we have a deal that will close fast with no hassles. 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 sold@uniquerealty.ca

James Street North

by Darrin DeRoches September 19 - 25, 2013

All eyes were on James Street North last week with the biggest event of the year in Hamilton – Supercrawl. For those who have not attended, it is a great opportunity to see your city in a different light. The first year I went I walked up and down the street and I noticed buildings and architecture I had never seen before. Now, I drive down James Street at least once a week and you probably do not see the street as I did when the festival was going on and everyone was having a great time. This past week I walked the street with investors from Toronto and showed them all the opportunities that the street has to offer when it comes to real estate.  We walked all the way down to Pier 4 and I had to point out all the investments, new restaurants, the future go station etc. They were impressed and felt it was like Rosedale area in Toronto from twenty plus years ago. A couple of properties “popped out” to them and they asked me to find out more information.     I already knew the prices and once I told them they were less impressed. A lot of prices are “aggressive” to put it nicely. I did the history on the properties and with using a comparative analysis I cannot justify the prices to the investors. Sure, the area is “hot” but what defines it? Price, return on investment, future investment? The area is doing amazingly in comparison “but anyone who is cool knows money does not buy you cool” – Fonzi. Money buys you what the property is worth today not what the future holds. So I took them up to the Durand neighbourhood to a property I believed was worth investing in with a good return and future improvements. They loved it and I had to do the reverse explanation of why has no one bought this property. Again, the price was aggressive but the neighbourhood can justify the price point. Doing a history on it we see the seller dropping the price over 10 per cent within months and it is finally price right. This area is also considered desirable and it has proven to be a great place to invest in with great returns over the years.     We are going to keep an eye on James Street to see if the prices come back down to reality and make a move on the property in Durand neighbourhood. You should take a second look at your city and it’s culture, architecture and artistry. The city looks amazing through the lens of how fast a street can move from nothing to becoming the jewel within the core. Artcrawl, Supercrawl and all those people who are rejuvenating the core from the Witton lofts to the storefront businesses are making it a great area to invest in. Be proud 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 sold@uniquerealty.ca

Mortgage Rates Rising

by Darrin DeRoches September 5 - 11, 2013

Mortgage rates are slowing creeping up from historical lows. It has been more than three years since we saw any real movement in mortgage rates — so why now? Simply put, bonds yields rise and mortgage rates follow. This is happening because the United States is slowly recovering from their real estate catastrophe and they are taking their money out from Canadian markets where they put it for safe haven. This is the reason that we are being given. You will also hear about how our housing costs are cheap compared to other markets, the market is going to hit a bubble, things are slowing down etc. They will give you 101 reasons why it is rising but the rates have been low for a long time and the big banks are looking for any excuse to raise the rates. One bank did it and the others slowly followed. Last year a bank would raise the rates slightly and the other banks would offer a “deal” to steal some of their business. This year they are going to raise them up to secure themselves against the bond rates.     The next logical questions are how high will these rates go? Again, who really knows, we were all paying up to 6 per cent before the drop. It will take time to get there but it definitely will hit a strong 5 per cent next year. This will not affect anyone who just renewed but if you mortgage is coming due in the next 12 months you may want to look into an early renewal. A mortgage broker can figure out the costs of an “early renewal” and secure you a today’s rate. You most likely will be paying the mortgage over the next five years so if you can secure a lower rate today, the savings will really add up. No one can really predict the future but the rates are definitely going to rise over time. The bank rate will most likely follow this trend upwards and we will be paying higher mortgage rates for years to come. This adjustment will help the loonie become stronger which will only help if you invest in currency or take a vacation in the states.     The American economy is once again costing us money in the costs of our mortgages but it is supposed to strengthen our economy with jobs and maybe we will be able to afford these big houses we bought over the last five years. The other side of the coin is that the prices of our properties will settle and we will be able to get more house for our dollars. We have no control over the economy but we can negotiate the right mortgage to save ourselves money in our homes. If you need advice I can refer great mortgage brokers who can explain the savings to “break” or “renew” your mortgage to set you up before the rates get to high. 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 sold@uniquerealty.ca.

Commercial Investment

by Darrin DeRoches August 22 - 28, 2013

Commercial investment in downtown Hamilton is continuing to grow. I spoke with a commercial lender today about a possible new mortgage for a downtown property and the bank was very open to lending. You hear everyone talking about making an investment in the core but when you get down to securing a mortgage things usually get tough. Most landlords were forced to go to “private lenders” and pay upwards of 18 per cent for a mortgage. A few years ago no major bank would lend for  purchasing downtown commercial properties and now they are asking for your business. The broker today said that he can get a four or five percent mortgage on a commercial property. I thought he made a mistake and asked him a second time and he said five per cent tops!     He also went on to talk about several properties that were sitting idle — waiting to develop — that are now moving forward. People are always asking why certain properties are sitting dormant and becoming eyesores in the core. The simple answer is because banks were not lending money to develope the properties. Things have been slowly changing and now they are talking about lending at five per cent. This is the reason why you will see changes happening fast and furious in the core. I have a property that is for lease and I get at least two calls per month with people inquiring about buying the property. I thought they were just “fishing around” but the banks are lending and people want to buy. This is just the first step in bringing buildings back to life. You now have to fill them with tenants, but they too are slowly starting to move back into the core. I just signed a five year lease with a company from Burlington that decided to move into Hamilton’s core to be part of the “shift” or “movement”. The cool factor is there but the architecture and community is what is really selling it. You cannot find “cool spaces” in the suburbs and the core is starting to shine.     The city has won awards and accolades about being the best place to invest in and we are starting to see the first wave of people moving into the core. The Witton Lofts are now being occupied and they turned out great. The “seedworks building” is coming on strong and several other buildings are slowly being redeveloped. It takes time, money and usually a lot of hard work but the “overnight success” of downtown is happening and we should stand up and take notice. Sure the big papers spout all this excitement about a “possible” casino and blah blah blah about any major company opening its doors in our downtown but we have to take real notice of all the development happening by our own citizens. This community is the reason everyone else is taking notice and let’s not overlook the great strides these people are making and shaping our downtown, not just the big guys and big money. 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 sold@uniquerealty.ca.

Testing The Market

by Darrin DeRoches August 15 - 22, 2013

I have clients looking throughout the city at different types of homes – single family, new builds, commercial – and it seems there are a few properties listed way above market value. Some sellers are putting up their properties “just to see” if they can get the money they are asking. Some agents will list a property at any price just to get the listing and it seems to be happening a little more frequently. This week I took a client to a home that had just put up their sign and it was not even listed in the system yet. We knew that she wanted a certain area and we drove through it on the weekend and noticed the sign. The agent did not even have a lockbox on the house yet. First thing Monday morning we were the only people through the property. The client was excited about the house but I had misgivings.     The first problem was the price. This house sold two years ago for $190,000 dollars and now it was listed for $260,000. Maybe they did a total gut job and the house is worth every penny. The second red flag was that the seller was not going to accept offers until a week later. Agents do this to create a false sense of urgency and hope for a bidding war. If the property is worth it, this might work and they could get top dollar. This was an income property and the area and size of the property does warrant a price in the mid $200’s. We were the first ones in and if it was all renovated we would write up an offer for over asking and try to get the seller to agree before their so called offer date.     Bright and early Monday morning we got to the property. From the outside it looked exactly like the old pictures in the listing – maybe they did all the work to the interior. We opened the side door and there was newish laminate – maybe? We walked into the first room and with all certainty we realized it was a dump! The sellers did not spend one dollar on improvements. The old listing even stated the “new” laminate from two years ago. My client loved the area and the house still gave her a “good vibe” but I had to point out that it was overpriced by at least fifty thousand dollars. We agreed to sit and see if anyone would make an offer the following Monday and see if the seller would rethink their strategy.     The agent texted me for my feedback and I told him straight that it was fifty grand overpriced and that my client loved the area and would make a realistic offer in the low 200’s once the offer date comes and goes. His response was that his seller “wants to see the action”. It’s August which is slow and it’s overpriced by a mile so I would expect there will be little action. I will update you next week on what happened! 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 sold@uniquerealty.ca.

Timing Is Everything by Darrin DeRoches August 8 - 14, 2013 In real estate timing may be the most important factor in a successful sale. Most people think you just list a house and it sells but there is a lot more too just throwing it up on the market. A good agent understands timing and it can make all the difference. A client just contacted me about selling her home and wants it on the market ASAP. She has been going through a long and drawn out separation and after a year of trying to make her partner realize the relationship is over it is time to sell the matrimonial home. She wants me to list it now while the iron is hot. Problem is it is August. This is the slowest time of the year and timing can make a huge difference on the bottom line.     You only get to enter the market once and the timing of this can make or break a sale. The first week on the market is crucial and you want to make a great first impression. The month of August is so busy for families with all the vacations and getting ready for the start of school — real estate is the last thing on their minds. Once everyone is settled in school and all the summer activities are over everyone starts to look towards the end of the year. This is when the market is hot and the perfect time to list your home. August is the slowest time of the year but September is then the hottest time of the year. I can easily list the property today as it is in a great area and it will sell but why not wait a month and list it in the hottest market. They will get top dollar in September and then she can find a property to downsize into once the market cools into October. The good old sell high and buy low scheme.     Timing also comes into play when selling your home in a hot market. Picking the right offer to work with can make or break your sale. In a typical sale the buyers will take five business days to do home inspections and get bank financing. These five days can be an eternity in a hot market. If they do not remove clauses and your property is forced to sit off the market you can lose your momentum. A good broker will know how to handle this type of situation and use it to their advantage. Your home can be the perfect property but if it goes on then off the market — potential buyers have moved on to the next one and it can very difficult to attract their attention again. If you are considering on buying or selling soon take the time to meet with a broker now. You should have a game plan in place, pictures taken; brochures printed and are prepared to list your property the right way at the right time. Need help figuring it out just give me a call or email. 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 sold@uniquerealty.ca.

Fix Your Issues

by Darrin DeRoches August 1 - 7, 2013

If you are trying to sell your house and you keep hearing the same complaint – do something about it. Every home has something that does not work for potential buyers. It could be parking, paint color, price, carpets etc. Every home has some drawback to potential buyers and if you hear it more than once it is an issue.     I have a listing which has a cat smell and mold. The property is listed as a fixer upper and even priced accordingly but all the feedback comes back to two issues. An offer fell apart due to these issues and now showings are going well but the smell and mold are hurting the potential sale. I had a conversation with the sellers and they are starting to realize that with a little work and money they can easily fix these simple issues which will bring them a sale. The problem is that they are divorcing and neither party will take the initiative – yet.     The husband is starting to realize that he should take on the two issues and help me sell his house but time and money are an issue.  As a real estate broker you can only work with the hand that is dealt to you. So what can we do to get a deal done? I have to think outside of the box and adjust our marketing. I called in a favour and obtained a home inspection which clearly lays out all of the faults, mold, smells and defects of the property. I will send this report to all interested parties to ease their “what if” concerns and show them exactly the scope of the issues. Information can make or break a deal even if it is bad information. Full disclosure shows everyone what they are dealing with and we will also send them all the comparables in the neighbourhood to prove the true value of the home. We could go one step further and get quotes to fix all the problems but sometimes too much information can be detrimental. You have to let the buyer come to their own conclusions and if you lay it all out they may start to smell something is fishy (but really it is the cats).     People are constantly asking me to call them with a “fixer upper” and when you have such a “diamond in the rough” everyone starts making excuses. They try to find a reason why they are not willing to do the work. We tell them it will only cost 10 grand to fix everything then they say 20 grand is the price. You have to let the buyer believe they know best and if they fix the property they will be 10 grand ahead of the game. In time with an open and honest marketing plan the house will sell. Someone can finish the upgrades and have a great home in a great neighbourhood if they can just get over the smell – damn cats! 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 sold@uniquerealty.ca.

Aerotropolis

by Darrin DeRoches July 11 - 17, 2013

The biggest ruling in Hamilton’s history on boundary expansion happened this week and the Ontario Municipal Board has ruled for a 555 hectare expansion around the airport. This ruling allows the expansion up until 2031. This will open the doors for companies to create an estimated 80,000 related jobs and bring in a huge amount of new tax revenue – $70 million. It has taken 10 years for this ruling and the airport is going to become a huge asset to the city. Opening up this land is opening up our city to huge opportunities not only around the airport but within the city itself.     The government recently opens the doors for another regional airport in the Pickering area and this development could stall the growth of our airport and city. The recent ruling allowing the land to be developed will give us a fast start to grow our airport before the Pickering airport gets off the ground. We have had recent success with our business parks with huge national companies moving out of the congested – and flooding – city of Toronto. These moves are only the beginning. Major companies can now set up in Hamilton and by–pass the high costs and congestion of Toronto. Our rail, ports, highways are a great link to millions of potential customers and these companies can just build new headquarters right beside an international airport.     This will create amazing developments and the city will continue to grow. The real estate market is strong in the city but this influx of development will only create an even stronger market. You will not only see the increase in Ancaster but also downtown, east and west. Our city is very accessible, where you can get anywhere within 15 minutes, so everyone will feel the positive impact of this huge change in our airport and the lands around it. More investments and more jobs will only increase the values of your homes. The fact there will not be any increase in residential land around the airport will help the whole city to fight urban sprawl and force us to expand our downtown and underdeveloped areas.     I do not think we understand how important this ruling really is. If we just announced that we were getting a NHL team the city would be dancing in the streets. The fact the lands around the airport are now prime and ready to be developed has more impact to the city bottom line and standing in the golden horseshoe. Huge companies will be setting up shop in our city and this alone may help us one day land the NHL team will have always long for. The corporate money is what the NHL is looking for – not the rabid hockey culture we can provide. Major companies setting up shop around our jewel of an airport may be the missing link we need to lure the team we deserve. If not I am happy to welcome the investment in our city and help us become the city we deserve to be. 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 sold@uniquerealty.ca.

Buyers With Cold Feet

by Darrin DeRoches June 27 - July 3, 2013

The first time buyer has a lot going on when making the hundreds of decisions on buying their first property. They have to work up all their nerve to take the plunge and sign on the dotted line. Finding the right property is the easy part when working with first time buyers. The hard part is managing all of the opinions of the friends and family. Buying any property is a huge decision and a big financial move so most first time buyers will look to family and friends for advice. The only problem with this is most of these friends give advice and opinions without knowing anything about the property.     A recent deal fell apart in the last seconds on the advice of a friend. The buyer was so excited about buying his first home and was moving pretty fast. We showed him eight properties and he picked his favorite. We signed a deal for a great price and he was pre–approved for a mortgage and was ready to finalize the deal. We put in the clauses of financing and home inspection. At first he was not interested in doing a home inspection so we sent the deal off to his bank to get the mortgage and waited for the answer. A day later the buyer called me and wanted to set up a home inspection. We had a discussion about the house and he spoke to a friend and they strongly suggested he do a home inspection. Not a problem, so I sent him three home inspectors and he picked the one he wanted and set up the inspection. The inspector did the inspection and sent the buyer a 96 page detailed inspection via email and then the phone started ringing.     The buyer was milling over the very detailed inspection and had a few concerns. I explained the problems and had him call the inspector to get more information. After a couple of days of explaining the inspection, everything seemed fine and the bank had approved him for the mortgage so we just had to remove clauses.  We set a time to remove the clauses and firm up the deal. We meet and the buyer starts to change his tune. The buyer and his friend had gone over the inspection and could not get over one major issue. I understood his concerns, called the sellers agent and expressed our concerns and they agreed to have the issue resolved at their expense. Sounds great. Issue resolved – let’s buy this house. Cold feet!     The buyer and his friend could not get over all the minor issues with the house and did not feel comfortable buying the property. The sellers were willing to fix all issues, the inspector explained these were minor things and the house was in great overall shape but the wisdom of a friend and cold feet prevailed. No deal. One word of advice — listen to the professionals and your gut — not a friend. 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 sold@uniquerealty.ca.

Look Back To See The Future

by Darrin DeRoches June 20 - 26, 2013

We are breaking records in sales and everyone is jumping on the bandwagon that the bleak outlook for the real estate market in 2013 was completely unfounded. Sounds like the same old broken record if you ask me. At the beginning of the year they always forecast the “big doom and gloom”. Now that we are in the middle of the year, and hitting above average in sales and listings with an increase in values, well let’s all agree it will not be that bad. At the end of the year we will beat all expectations but next year will be a “huge bubble burst!” again, which never happened.     Let’s be realistic about the real estate market and realize that it has to level out and maybe even dip in the near future. The best way to predict the future is to look into the past and see that the market always corrects itself. The mortgage rates are staying low and the rules have been tightened but people are finding a way to still buy more and more expensive homes.  I can hit you with all the statistics but when you read them it is a bit confusing. Sales are literally about one or two homes higher than last year but the average sale price has increased and that is the real news. Get used to the fact that Hamilton is not a second class city and people are investing in our real estate and companies are moving from Toronto and Burlington and new companies are sprouting up. Why?     Hamilton is the only real city next to Toronto and you can get so much more for your money in Hamilton. Whether it is commercial, land or residential, our values are holding strong. Barton Street just had a successful “open house” on their street and people are taking notice. Sure the street is a little rough but one by one it will become better and better. I had a past client contact me yesterday to look at properties in Hamilton and his big question was where to buy? He is not ready to buy until next year and by that time prices will still be rising and he will be priced out of certain areas. Look at James Street. There are properties listed for over a 1.2 million dollars and quite frankly it seems a little high. Five years ago those same properties would be crazy to ask for half of that price and no one would even think about buying them. Barton Street has a long way to go as does the rest of James Street but the new Go station and new football stadium will help tie these areas together and you will see a big difference.     Five years from now the waterfront, James Street and Barton Street will be drastically different and if you buy into it now you will be able to double your investment. Quality real estate will always sell or rent for a high price so buy low today and sell high in five years. 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 sold@uniquerealty.ca.

Break That Mortgage!

by Darrin DeRoches May 30 - June 5, 2013

I may not be a mathematician but I do understand when it is a good time to make a move and make money. I have spoken with several mortgage brokers about current rates and where they are going. They are all saying the same thing. If you have a current mortgage over 4 per cent, then it is the time to break it open and re–mortgage. At this point I could pull out some charts or graphs to explain the savings but let me put it in simple terms.     Today’s mortgage rate is as low as 2.79 per cent for a 5 year term so if you are paying over 4 per cent then it is worth it to make the change. Yes there is a cost to break a mortgage but it usually cost about .05 per cent which is nominal. Take this half of one percent and the 1.2 per cent difference it can really make a difference. I renewed my mortgage last year since it was up for renewal and it saved me almost $250 a month. Back then I wrote about it and suggested everyone should take a look at their mortgages and do the same. A year later mortgage companies are now advertising for you to break your mortgage and realize the savings. The reasoning is pretty simple – competition.     The mortgage game is starting to get more and more competition and that is good for the consumer. Some companies will even cover the costs of breaking a mortgage and switching over to them. Some offer free gifts but the best way to go is look for the best deal. The rates are supposed to hold until at least next year but they have to rise sometime and if your mortgage is over 4 per cent you will be renewing when the rates are rising and this is the real problem. You break your mortgage today and take the longest term with the lowest rate. It is generally a 5 year but some companies are pushing the 4 year since they know the rates will be higher then and why give you another year at these ridiculously low rates.     So where do you start? Take a look at your mortgage rate and if it is over 4 per cent then send me an email. I can recommend you to several different banks or brokers who will help you make the best decision and show you not only the savings but the peace of mind that knowing that you will have the best rate possible for the next five years. These brokers will shop your mortgage around and find you the best deal out there. If you are comfortable at your bank then just email me which bank you would like to be at and I can refer you to the best mortgage agent in that bank. I stayed with my bank by simply “negotiating the rate” and by doing this we have a great low rate and they paid all costs. Break that mortgage! 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 sold@uniquerealty.ca.

Don't Believe The Hype

by Darrin DeRoches June 6 - 12, 2013

This past weekend there was an article written about Hamilton Real Estate Market called Housing Gone Crazy: Bidding Wars and I am a huge supporter of the city but don’t believe the hype. In any market, there are always bidding wars and houses going over asking but you have to look at the other side of the story to really understand what is going on in our housing market. The article is not wrong in its reporting of these situations, the fact that listings are way down, and it is a seller’s market, but let’s not get excited that the market is becoming unaffordable and that all these deep pocketed Toronto buyers are running into town and buying anything they can find.     The situation where a home went $170,000 over asking is a reflection of the situation and not of the market itself. The agent “purposefully” listed it $70,000 under their perceived selling price, which is a risky way to sell a home. This is done to create interest and create the “bidding war”. In this case the home sold $170,000 over asking and in reality $100,000 more than the agent expected. Who cares what they did? It worked this time, but this type of “salesmenship” does not always work and what if the home is priced way under asking and no one offers that price? The house sits and does not sell and when remarketed it is a real hard sale since you have to explain the huge rise in price.     Pricing a home under or over the “real” market price can really mess up a sale and then bring bad press to the market. If this house was priced accordingly and then sold for a great price fast, the owners would still have the sale and money in their pockets but no headlines or story to tell “$170,000 over asking.” You do not read about the houses that sell for the right price and fast. Which is the real story in today’s market. The home that is priced right is getting a lot of attention, maybe multiple offers but most importantly – they are selling quickly. A fast sale is the best indicator of the market. Most agents do not price homes way under value to create headlines but rather price them right and sell them quickly at top dollar. This is what is happening in our market today and that’s what makes it a strong, vibrant market.     The market has not “Gone crazy” but rather it is strong and powerful like the city it is in. I feel bad for all the agents who had calls this week from their sellers quoting the article that the market has gone crazy and asking why their property is not selling. The indicators are showing faster sales and an increase in selling prices, but don’t get caught up in the hype and list your house too high because it will just sit on the market. For every pseudo success story there are five homes sitting on the market priced wrong. 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 sold@uniquerealty.ca.

Divorce, Death & Debt

Death, Divorce And Debt

by Darrin DeRoches May 23 - 29, 2013

In real estate there are the three big D’s. Death, Divorce, and Debt. Whenever these arise, you call in the real estate agent. In most cases you are looking for an Opinon of Value of your property before moving forward. The home is usually the biggest asset in one’s life so this is usually where everyone will start before making decisions. In some cases, a real estate agent is called in to value a home before the body is even buried or before the spouse even asks for a divorce. Everyone wants to know what their property is worth in today’s market and a lot of times the agent they call in is not the one who will list the property.    I deal with the three big D’s all the time and you have to watch how you evaluate a property until you have all the information. If you get a call for an evaluation and the first question is “how much does it cost?” then you know someone is just looking for a quick idea on how much their home is worth and may not ever really sell their home. A good client can call asking about their properties and without being too evasive I always ask “why?” It usually comes back to debt or divorce and it can be a touchy subject and can get pretty personal. Sometimes debt is tougher than divorce and it may even lead to divorce. Recently I had a client going through a divorce and they already had an agent come through and give them an Opinion of Value so they could decide to sell or buy each other out. His evaluation was about $30,000 over reality since he was trying to get them to sign with him. He was not aware of the pending divorce and some agents will give you a high evaluation so that you will pick them to work with. In this particular case, I was called in to give a “real” value to which I am now listing it for a price that will move it fast since they are not talking and want to get it done.     Some would think there is a deal here, since they are not talking and want to dump the house, but when you look further into it they are divorcing for a reason. This reason is usually debt and the house is just going to pay it all off and once they settle everything there is not much left. Selling the house is harder than signing the divorce papers since the money, debt, possession and memories all tie to the family home and you have to handle the situation appropriately. I deal with each side separately, very straight forward and business minded so they both will come out of the sale with the feeling that they have been dealt with fairly and had control over the final sale. You can come out ahead when selling the home due to divorce, it is all in the way you market it.

Buying Paper - Risk And Reward

by Darrin DeRoches May 16 - 22, 2013

You hear people talking about “buying paper” and that is just what it is. The investor is looking to buy a property before construction “ on paper” with the intention of selling it when the project is complete. It can be a profitable endeavor but it is still risky. It’s happening in our market with condos but also townhouses and freeholds. People always wonder why homes go up for sale when a new sub division is built or when a condo development is completed. How can they make money?     An investor will purchase a property from the plans when they are first introduced. They are able to get the best deal on a unit. It may be discounted as high as 10 per cent less than the final sale price. They buy the unit and wait for the construction which usually takes at least a year but in most cases two years. The Hamilton market has gone up about 7 per cent each year so if you take the original discount and add the natural market increase the investor can be in for a 25 per cent return. So if they bought a $200,000 unit and paid only $180,000 then it increased by 14 per cent or $28,000 they stand to make $48,000 on a unit they only owned the “paper”.     So if it is so easy why wouldn’t everyone do it? There is a risk that the market will not increase and you will have a property you never wanted to live in. The smart investor will then rent out the property and wait until the market increases and then they will realize their return. Most investors also buy multiple properties at a time and will make $150,000 for three or $200,000 for four units. One hundred grand a year is not a bad return on “buying paper”. Of course you have to have money to buy the units and depending on your bank you can buy them for just 10 per cent down and sell them before the mortgage kicks in. It can be a risky time but if you know how to invest and have the wherewithal, you can do pretty well with very little effort.     A new client from out of town contacted me about doing this in our market and there are a few good opportunities out there. He is interested in buying at least three condos before construction begins but doesn’t know which ones. You have to really know which size, location and project to buy in. If you buy the wrong ones you will have a really hard time selling them before your mortgages kick in and it can be a tough time. Every market is different and just because it worked in Vancouver or Toronto does not mean it will work in Hamilton. Picking the right broker can make or break your investment. Risk and reward! 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 sold@uniquerealty.ca.

Spring Market: Don’t Get Burned

by Darrin DeRoches May 9 - 15, 2013

Spring has sprung and the real estate market has responded. It is still a seller’s market and the listings are lower than average. It is interesting when you read the statistics since they are somewhat confusing. There is a 6.5 per cent increase in the amount of properties listed over last year and an increase of sales by 5.5 per cent so you would think there is 1 per cent of listing still on the market and that would constitute a buyer’s market. The statistics go on to say that the sales have gone up 5 per cent and the overall price increase is 1.9 per cent higher than last year in April. The most telling statistic from April is that more listing and sales were recorded than last year but the second highest in April for the last 20 years. This statement is the real tell-tale sign of the market and if you are considering selling – this is the time.     April’s weather sucked this year. It was cold and rainy and this does affect the market more than you would think. The first seven days of May have been glorious and the phones are certainly ringing. May will be much stronger than April and the spring market will be one of the best we have seen in 20 years. The statistics say listings are up from last year but at the same time there are fewer listings on the market which is confusing. The bottom line is that properties are selling and houses are not sitting on the market. The average days on the market are 38 to 40 days which in means houses are moving. 60 days is the norm for houses to sit on the market so 40 days is impressive. So what does all this mean to the buyer and seller?     Simple – the buyer better move quick and seal the deal because a quality home will be snapped up fast and may go into competitive offers if you wait around. Spring may have sprung in April but May is where you will see the sales and competition happen. So if you are buying, be prepared and work with a broker who is also prepared or you will lose out. Sellers have to also realize the market is moving fast but do not think you can ask for the sky and get it. A properly priced and presented home will get the offers not an overpriced lipstick wearing pig property. Yes it is a sellers’ market but the buyers can see a “lipstick” job a mile away and if you over price you will scare away the buyer. You also run the risk of sitting on the market where people will ask “why has it not sold?” Do not be greedy when selling – even in a sellers’ market because just as fast as spring has sprung the buyers will be buying and if you do not sell it will be a long hot summer market sitting and waiting for a buyer. Strike while the market is hot and try not to get burned. 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 sold@uniquerealty.ca.

First Time Buyers

by Darrin DeRoches May 2 - 8, 2013

I have written about first time buyers before but every time I work with a new client that has never bought before, I learn something new. First time buyers may be just as informed about real estate as other buyers but unique questions always come up and the interesting part is that the questions usually come from friends and family. The first time buyer has to stop listening to everyone else and trust their own instincts. The dumbest questions are always from the people giving them advice and never from the buyer themselves.     This is why I usually put a first time buyer with a Mortgage Broker so that they can ask all the questions and get the banks working for them. I have seen too many banks take advantage of their naivete and sign high rate mortgages with bad terms because the buyer has “blind faith” with their bank. They usually say “I have been banking with them since I was a kid” So what! This is the exact reason why they will hit you with a high rate and finally make money on you since they have given you a free account for years. Think about it! Another problem that happens with a first time buyer is moving too slowly. They listen to their friends who say you should look at “twenty to thirty homes” before making a decision. Wrong! The right home, location and price are the deciding factor not the number of homes you look at. You can miss out the best deal waiting to find the “perfect home”. Most are afraid if they move fast they will be ridiculed by their family. If your family’s last name is Trump, then maybe they can give you advice, otherwise listen to your broker.     That brings me to the most important decision – picking the right broker. First things first – you are probably buying the most expensive thing in your life and picking the right broker can make or break your financial future. Just because your cousin Johnny just got his real estate license does not mean he is the right person for the job. How do you pick the right broker? Ask yourself these questions: Has the broker been successful in buying real estate for themselves? Are they full-time  real estate brokers? Are they approachable and take time to answer questions? Lastly, have they been successful in winning against multiple offers? Anyone can write up an offer but it takes the right broker to write up the “winning offer”. Even if you are not in competition, the way you write an offer can make a deal a steal! Time after time I have clients excited about buying their home and getting it for a price they cannot believe.     Listen to your gut, move quickly when it is the right home and most importantly pick the right broker. Business is business and family is there to support you, but when buying your first home – go with an experienced professional! 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 sold@uniquerealty.ca.

How To Approach Downsizing

by Darrin DeRoches April 18 - 24, 2013

Downsizing can be a hard thing to do but if you approach it the right way it can be the right answer. People have to purchase smaller homes for a variety of reason but the main two are divorce and retirement. Divorce usually means a split in income and the ability to maintain the matrimonial home can be difficult. The two parties need to buy new homes that they can afford and keep their children in the same school and also fit all their belongings etc. The reality that the house will be smaller and lack all the bells and whistles is usually hard to come to terms with. A recent client of mine is going from a $500,000 home into a $250,000 home but wants a $300,000 dollar home. The problem is the size and location of the new property and the reality is that their income will only support a smaller home. The process can be very emotional and sometimes it is hard to come to the reality of their future. They need to be honest with themselves so they do not become house poor. My advice to them is to be brutally honest and buy an affordable property and if in time their financial standing improves, their children grow older and move out then they can reconsider a larger property in two or three years. The most important thing is to own a home and be able to afford it.     The retirement home is becoming more and more needed in today’s market. The population is aging and they require different things from their home today than they did 10 years ago. Most people require a bungalow where everything is on one floor. Laundry, bathrooms, bedrooms all need to be on the same level and their family home usually becomes too large and hard to handle. They have options and can even consider “retirement communities” but the majority of clients wants to maintain their independence and do not want to pay condo fees. I have found the best answer is one floor freehold townhouses that are mixed in communities with all different age groups. These properties are not as easy to find but they are the best option since they still have the feel of your own home but with the comforts of a community.  The grass cutting, snow removal and the ability to live independent and safely on one level is what you want and to be able to sit on your porch and watch the world go by is what you may need. This way you are able to still be involved without be separated from your community.     When downsizing, one must really look at what they need today and in the near future and figure out what works best for them emotionally and financially. Get rid of all the clutter, simplify and enjoy the next chapter of your life while staying in your community. It may be hard to find the right property but by using the right broker you can certainly improve your chances. 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.