Condo Launch Parties

Condo Launch Parties

There are two condo launch parties coming up in June and they both look to be great events. The Connelly is first to launch on June 13 & 14 at 11:00 am at the Art Gallery.  If you are unaware of this project than you must be living under a rock as they have done a pretty good job communicating with the market. It is located on James Street across from the YMCA and steps to the GO station.  They have kept the 1800 church façade and are planning a 30 story condo project that is aimed to the young and young at heart.  They are offering special incentives at the launch party which usually means upgrades and you can be one of the first to buy and hopefully get the unit you desire.

The second launch is the Tiffany Square project on June 18^th at the Royal Yacht Club from 5-8 pm.  This project boasts water views and is the first project to build in the underdeveloped bay front.  It has a mix of suites geared to all age groups and families.  I would think those looking to downsize and wake up looking over the bay every morning is the target market for this project.  That is not say an investor or first time buyer can also be in the mix as they have a good mix of plans for the entire market. This project is the first to take advantage of the underserved area of the bay and I am sure it will do very well also. 

Going to any condo launch party you have to understand the process and what to expect.  They usually create a sense of urgency to help the sales happen but some projects sell themselves.  It is true the early bird gets the worm and if you want to get the best deals you should show up early to be first in line or better yet get with a broker who can arrange everything.  The prices tend to rise as the event goes on so acting fast or with the right broker can make a huge difference.  When it comes to buying a new product you have a cooling off period which means that you have 10 days to make sure you bought the right product.  This only applies to new condo projects and you do not have to give any reason just cancel the deal and your deposit is returned.

If you are considering on buying a new condo in one of these new projects or others coming to market you should call your broker or myself to understand the in’s and outs of the market and plan your game plan.  You can not only save thousands of dollars in your purchase but if you pick the right floor, exposure, with or without parking – you can make thousands and thousands more when you sell down the road.  Picking the right project, floor, size etc. is critical and making the right move will not only make you money but it will make the whole process stress free and enjoyable.

REAL ESTATE IN 2015

by Darrin DeRoches January 8 - 14, 2015

The experts from around our nation are toting Hamilton as the only market to make gains in real estate this year in all of Canada.  We already have won the best place to invest, and now our residential market is going to rise up even more.  This all begs the questions of why, and when will it stop? The easy answer is because, and never, but let’s go a little deeper than that.     Hamilton should be at the same level as Oakville. Some might think I am still drunk from New Year’s celebrations but that is where we should be.  If you draw a line from Toronto to Hamilton the exact same property is at least $100 thousand dollars lower in Hamilton.  That means Mississauga is $25 grand less than Toronto — Oakville is $50 grand less — Burlington is $75 grand less.  This is just a broad stoke, and the numbers are a little higher actually, but the point is the line should be straight one down to Burlington, then curve upwards as it hits Hamilton into a hockey stick. (Player of the game in the world cup finals: Darnell Nurse: Hamiltonian) This means we would come in somewhere around Oakville, maybe about Third Line.  This where the city will end up and when it does that is when the increase or correction will stop.     The reason we should be at that price point for real estate is based on many factors, but asically it is because we are a real city.  Airport, waterways, docks, university, colleges, leading hospitals, Ti–Cats, industries, innovation parks, Go trains and the list goes on.  In relation to Toronto we are the far enough away to be priced lower but big enough of a city to command higher price in real estate.  We are poised to grow into our own and it is happening every day in the city.  There are a reported twenty new residential projects coming downtown, expanding lands at the airport, more and more freight at our ports, new industries, new hospital project, innovation at the universities and colleges.  These all contribute to raising  the demand and value of our real estate.      Investment dollars are coming to our city and we need to control the growth and make sure the dollars stay in the community. The inventory is getting a little low — so new home starts and building permits should be on the rise.  You should be investing in your own real estate market because by the end of the year it may be too late and too expensive.  I see the prices rising and some sellers are being unrealistic but are getting their price.  If you presently own property in the city you are making money every minute of every day so it may be time to tap into that money and double down while the market continues to grow into the big hockey stick we deserve in 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.

CONTINUING CONDO NEWS

by Darrin DeRoches December 25, 2014 - January 7, 2015

I have to continue on the conversation about condos in Hamilton as this week announcements of two projects brings more information.  The Acclamation condos are being reserved and the sales team believes they will have the majority of them gone before the official launch.  This project is on James Street across from the armories.  It will be 60 units from $249,000 to the $949,000 dollar range.  I stated that a million dollar condo will be sold downtown and maybe this is the one of many to come.  They are taking reservations for units and six sold in the first 48 hours. Most people are not even aware of the launch and it may be sold before the actual launch party.  The questions must be asked — why?     Is it because of the location? The amenities? The price? The demand? The condos themselves?  Is it a mix of everything? I would say it to be a bit of all of those reasons, but the major reason is that we do not have a ton of condos in the city.  The condo market has been underserved, and it is the time to flood the market with these projects.  I believe the timing and hype is the real reason these projects are finding success, and good for them.  The good people of the Acclamation project have been working on this for years, and I believe they deserve the good fortune.  It is their time and money that should bring them, and the city, a great return on their investment.      The second project that has quietly surfaced lately is the Tiffanysquare.ca condo project.  It is located between Tiffany and Bay streets.  It is steps to the new GO train and Pier 4.  The views will be the best the city has to offer and mark my words this is the best project to invest in. It will have a mix of residential and commercial, with views of the city and water.  Anyone that knows how to speculate on real estate knows views and water sell condos.  They are taking registrations right now and you should get on the list.     Every condo project has its positives and negatives, but you have a great selection of product to choose from today.  The Connaught, The Connelly, Acclamation, Tiffanysquare and the list goes on.  Buy now, and by the time the project is built you can see a small, or big return on your investment.  Buying the right condo will determine the highest return.  The right condo in the right project — that is.  If you are considering on investing, downsizing or just want to get a great condo, the time is now and if you want help on making the right decision on your investment contact us and we can help you make the best return!  Happy Holidays and see you in the New 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.

DUNDAS: MILLION DOLLAR CONDO

by Darrin DeRoches December 18 - 24, 2014

I read an article recently that explained the story behind the Dundas District Loft project. It was a glimpse into what a couple of brothers have been building in the city for the last thirty or so years.  Dave and Mike Valvasori have done great projects throughout the years and I personally believe they should be recognized by our community. I doubt they would like a plaque or something but I believe we should organize a seminar on how to invest in Hamilton — lead by Mike and Dave.  You can go back to a time where banks would not lend in downtown Hamilton but they still found a way to make things happen. They are a Hamilton family who better the city by each project they conceive, finance and build in our city.      They just finished the Dundas District Loft project which they sold out by themselves with units going from three hundred grand to a million dollars. That is right, there is a million dollar condo sold in Dundas without all the glitz and glamour of out of town brokerages or slick marketing.  That in itself is a testament to the project and Dundas as a whole.  They are about to embark on a new project in the Queen and Bold area on a piece of land I myself had shown “so–called investors”.  My clients, as many others, overlooked this plot of land that could be built into a 12 story building but they are doing nineteen units on four floors.  This will be another home run for these builders — mark my words.  Yes, around the corner are a couple of tough rental towers with issues but the rest of the neighbourhood will make the project shine.     People get excited about certain projects from “out–of–towner’s” but I believe Hamilton has all the talent we need to develop our city.  The construction companies, realtors, banks, lawyers, architects in this city can take the real estate market into greater heights than some out of towner’s who do not understand what the city needs or wants.  I keep my eye on certain projects that use out–of–towner’s and you can see the sales falter for various reasons. They build the wrong product, or use the wrong brokers, and the sales are reflected in these decisions.  I would like to see someone sell a million dollar condo in downtown Hamilton as they did in Dundas. It will happen, in time, but you have to offer more than a white vanilla box to sell such a unit.     I personally look to work with someone local before I do anything.  It’s not because I am trying to pander to the community, but rather I like to know the person I am working with, and support my city.  There are a lot of creative people in this city but more importantly there are people of character who can not only deliver, they can knock it out of the park!  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.

DEBT

DEBT.DIVORCE.DEATH

by Darrin DeRoches November 13 - 19, 2014

These are the three D’s we deal with in real estate most often. We do get first time buyers, investors and families moving on up but Debt.Divorce.Death come up daily.  The problem with these three D’s are each have their own set of circumstances and each need to be dealt with on their own.  So I will write three consecutive articles on these occurrences in real estate. First comes debt.     There are many reasons why we get into debt and they all come down to one thing and one time – you have to pay. I have dealt with this personally over my lifetime, and professionally all the time.  The important part to remember is you are going to have to pay sometime. It is amazing how long you can put it off but sometime, somewhere, debt is going to raise its ugly head and bite you in the asset – your house.  You probably thought I was going to say ass but eventually it comes right down to your house, since it is usually the last asset.  Car companies will repose your car by simply towing it away but your house is harder to remove.  It is very emotional and it can get hard to remove a family from a home – emotionally and physically.  The creditors will send letters and letters and hope you will respond but if all else fails they will send a sheriff to the property to give you five days to vacate.     This last attempt to remove you from your home is very harsh, but you should be aware of your rights, and how to handle the situation.  Once you receive letters from the bank or creditors you should contact a debt counselor and try to remedy the situation.  They can knock down your debt by upwards 80% and help make a plan to keep your house and pay down the debt.  In some situations you may not be able to bounce back from debt and that is where you should call a reputable broker.  We can help sell your property and keep the bank at bay.  The bottom line is the bank does not want your house, they want you money. Put all the emotions aside and realize they just want your money, which they believe is their money, with interest and everything.  If you contact a broker who knows how to deal with the banks you can also save a ton of money in the short term.  If the bank takes hold of the property with bailiffs, sheriffs and property managers someone has to pay them.  That someone is you.      Take control of your debt and try to resolve it or call a great broker who can put your house up and sell it fast to pay the debt and come out ahead with money in your hand instead of the banks. We know how to deal with the situation before it is too late and you can take control of the situation and save your house or sell and walk away with debts paid and money in your hand.

Mortgage News

by Darrin DeRoches September 18 - 24, 2014

It’s a busy time of the year for the real estate market and mortgage brokers and banks are hustling and bustling.  I recently spoke with a few mortgage specialists and a few comments got me thinking.  I was surprised to hear people are still shopping around their deals.  Of course you want the best rate out there even though the rates are so low — why not get the best.  Sometimes it does not come down to the rate — it comes down to service.     It is really easy to go online and email several brokers looking for the lowest rate.  Sometimes you might save a few bucks and you might even believe you got the best deal but you may be sadly mistaken.  Personal service and creative ways to structure a deal can not only make or break a deal it can save you tons of money. An example of this is a person was bought a new house and went in firm with no conditions even though they had to sell their house to make the deal work. Weeks pass and their house does not sell. Six days to closing they call the bank and inform them about the deal and say that they need money to buy the new house. The bank had spoken with them two months ago and laid out a plan but they figured it would all work out and ignored the plan from the bank.  Luckily they have enough equity in their home they can arrange a short term mortgage with a line of credit and virtually “bridge” the two mortgages. Sounds good and they can move forward. The problem is that is comes with higher rates, costs and fees and will end up costing about five thousand dollars. Had they kept the personal contact with the broker, and not shopped around, he would have been able to set a line of credit for a new mortgage at a low rate and save them thousands and thousands of dollars today plus more in the future.     People have to realize that some banks can do things others cannot and that some brokers will do some things others will not. A client of mine was told they are approved for half a million but only spent $400,000 but the broker could not “bridge” finance. This seemed a little out of sorts to me so when I presented it to their bank they were approved for a bridge mortgage in hours. Fortunately we did not need the bridge and their house sold in the first week but if we did need it and listened to the broker they may have lost their dream home.     Work with those who work with the right people and you will not only get the best rates you can make deals others cannot.  When it comes to money — stop shopping on line — renew or create your relationships with lenders and brokers.  A great real estate broker knows when to call bullshit and help you find the right bank or broker!   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

Be Ready To Sell

by Darrin DeRoches September 11 - 17, 2014

When selling your property you must have “real expectations”.  The biggest mistake is to list your property at a price that you believe you need rather than the price that is right.  A real estate agent cannot create showings for your property out of thin air; the property has to sell itself. There are tricks to sell properties but tricks can be exactly that — tricks.      You can create urgency or inflate a property’s value but in the end everything you do to sell your home will have to answer to someone.  If you overprice your home and someone actually pays the exuberant price one would believe they will be laughing all the way to the bank but the bank may be laughing at you.  In today’s market banks are requesting more and more appraisals because the property may sell to some over eager buyer but the bank will not lend the money just because the buyer was “tricked” into the price.  Banks are approving a mortgage but when it comes time to hand out the money they are asking for appraisals to insure the numbers add up.  If they don’t the bank will require the buyer to come up with more money or they will outright refuse to provide the mortgage.  The mortgage clause use to be all about the buyer being approved but it is leaning more towards the property being approved. There was a time banks would not lend in certain postal codes but now they will not lend in certain price ranges in certain areas.     Another real expectation is that it still takes on average about 45ish days to sell a property. That is an average so your property could be on the market for months if you are not realistic.  Everyone reads about how hot the market is but that does not mean your overpriced, bad location, beat up house will sell in days.  Sellers like to blame their agents when no one calls about their house but maybe it has to do with price and location.  You have to be realistic and work with your agent to get your house sold.  Instead of complaining about the progress, make some changes and create some momentum.      Be realistic about your property and listen to your agent.  It is easy to just keep dropping your price to get a property sold but it does not always work. You hired an agent to sell your property so maybe you should listen to them and follow their lead and experience.  Timing has a lot to do with it.  The last three weeks have been a little slow due to school, work etc. but the market is still strong and will be moving fast in the next month or so.  Be ready to sell now or you will find your property sitting on the market while everyone else is on the move!  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

Pricing It Right

by Darrin DeRoches September 4 - 10, 2014

I may repeat myself a few times in this article but one of the most important things to do is price it right. The market is moving fast and if your property sits too long no one will pay it any  attention. Pricing the property right the first time can make a huge difference in the final outcome.  I did a deal this week where the property was priced at $415,500. The property was on the market for over a month and we were pretty surprised when we viewed the property. It needed some work but you would have thought it would have had some action on it during the month. My clients were really interested in the property since it was on a great street and had all the must haves on their wish list. So they wanted to do an offer and we started to negotiate.     I spoke to the neighbour and he gave me all the background on the property and what he thought it was worth.  A few things he told me were just his opinion but some of the information was very valuable.  I went back to the office and did a history on the property and then discussed our game plan with my clients.  We knew the house needed some work and factored that into our offer and then pushed the agent to do an offer on Labour Day.  Most people are relaxing and getting ready for the school year but we were trying to buy a property before the market starts to heat up once again.  The property had been reduced by ten thousand but it still was not priced right.     The only reason no one had bought the property was it was over $400,000 dollars. If you look at the MLS site you can pick properties in increments and anyone looking for a house at $450,000 dollars would not consider this property since it is a $400,000 dollar house.  The people who can afford a $400,000 dollar house did not even see this property since it was priced at $405,000 and did not come up on their search.  Most real estate agents do not do searches over the approved amount for their clients since they may fall in love with them and then not be able to afford them.  The only real issue with this property was it was priced wrong.     We had spoken to the agent and knew another price drop was imminent and we did the deal fast so the house would not come on the market under $400,000 and draw attention. We brought an offer far under the asking and settled five thousand less than my clients were willing to pay.  If the sellers had priced the property originally at $399,900 they would have had more interest and sold it for a higher price faster. Knowing your market and doing your homework can be the difference in this real estate market. 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.

Where You Are Buying

by Darrin DeRoches August 28 - September 3, 2014

It amazes me that certain properties are getting a lot of interest and multiple offers on them even though you would not find one Hamiltonian putting an offer on them. Recently there have been a lot of posts on the internet to “expose” properties that have had murders, meth labs or deaths in them. These posts get their information from either police reports or newspaper reports and then they tag them as “undesirable” properties. The interesting part is not these deaths etc. but properties that look so amazing but are on less desirable streets or areas.     This week clients of mine got a great deal on an income property and were willing to go into competition to get it. There were over twenty viewings on the property but when it came to offer day – we were the only ones. The funny part was on the same street, a similar property went through the same thing a few weeks ago. The big question is why? The house needed no work. The area is prime for rentals and as I stood outside waiting for the sellers to sign back the offer I had three people stop and ask me the price, condition etc. Everyone was looking at the property but no one was offering? The simple answer is timing and vision. This area was a mess ten years ago and it is not only an up and coming area it is already there. There are new condos and townhouses being built and sold for top dollar but people from Hamilton still look at the area as old and undesirable. Out of Towners take a look and they see the downtown feel, walkability and great price for what you get. Hamiltonians look at it as old, no parking and overpriced for what you get. My clients will be making money the second they move in and in ten years people will be saying “I wish I’d bought in this area ten years ago!”     On the other hand, the same agent had multiple offers on another cool, Victorian property in an area that will be still rough and undervalued in ten years. If you were to look at both properties and invest your money –the one my clients bought will bring you more return today, tomorrow and definitely in ten years. The house may be smaller but the numbers don’t lie. You have to be aware of the area and be realistic in how the market will grow. Out of Towners were making offers on the other property and their agents just do not know the market. I would not go into Toronto and pick the next great neighbourhood and their agents are coming here without doing their homework.     Be aware of where you are buying and better yet, hire a local broker who knows the market and has a proven track record. Ask the right questions or you will end up in a cool house in a terrible neighbourhood. Remember the three most important words in real estate – location, location, location! 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

Huge Jump In July Market

by Darrin DeRoches August 14 - 20, 2014

The Hamilton–Burlington real estate market saw 1559 property sales during the month of July, which is a 21.5 percent increase over last year’s sales in July. The average sales price broke the $400 thousand mark to $409,538 for the month. The average days on market dropped from 42 days to 36 days. In a nutshell, this means that the market is moving fast and selling for top dollar!     If you look back at the market in recent years, July is typically a little slower and you do not see sales at this level let alone over a 20 percent increase.  At the beginning of the year I wrote that the average house sale will be over $400 grand and it took six months to do it.  At this rate we will have record sales by the end of the year at top prices. The local papers are starting to write about the “condo boom”, which seems a little late to the party but the proof will be in the sales of the units which will take time to prove such a change in our landscape.  If the condo builders keep prices in line then they can compete in this fast moving market when you realize a home is hitting over $400 grand and if they price them in high $200’s then they will sell.  Everything is relative to what the market is doing on a day to day basis.     This week two properties came up on Herkimer and one sold within hours and the other on the weekend.  Both of these properties were priced on the top end of the market and both had about 9 out of 10. Unfortunately they were not what my clients wanted and we will wait for more to hit the market, but August is usually a quiet time and properties are still selling fast and for top dollar. The problem is that not all of the market is moving as fast.  If you listed two homes in the east end on the same street they will sell but it will take some time and more effort. The market is hot in Hamilton but in certain areas it is scorching hot — like the west end.     Last week I had several inquiries on student homes, investment properties, homes in west end, cottages and properties in the east end.  As I said before, August is usually pretty quiet but these calls and listings are showing that the fourth quarter of the year is shaping up to be strong.  Listings are still the issue and quality properties will sell fast! So if you are thinking of selling, take the time to call us to get things ready for a scorching hot end of the year to the real estate market. Be prepared so you don’t 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.

Bidding Wars

by Darrin DeRoches August 21 - 27, 2014

All of a sudden there seems to be an epidemic of hold back offers in Hamilton. A hold back offer is when the sellers decide that they will not look at any offers until a certain date. They want the market to have a week or so to look at the property and then, on a certain date, send in offers. The real intention is to create a “bidding war” which makes buyers compete against each other. This works in some cases but it seems to backfire more often than not.     I have several clients that will not even look at properties if there is a hold back date. They do not want to be “duped” into a false sense of urgency and over pay for a property. These hold back dates are causing more harm to a property than good. It also gives clients a week to change their minds — over and over again.     I showed a great little cottage in the west end and we left feeling pretty good about the property but had four days until offers accepted. The night before it was time to make offers, my clients decided not to write an offer. They fell out of love with the property and if we could have made an offer the first day, I am sure we would have closed. The property hit all the boxes on their wish list but when you have time to think about it, you think “there might be better coming out”. I checked today on the property and it is still on the market. I guess all of the other buyers felt the same way.     On the other side of the spectrum, I see good agents putting up properties that sell within days for top dollar and everyone wins. The agent makes a quick sale. The sellers get it sold without weeks of showings and disruptions. The buyers are excited and pay the market value. Everyone wins. If you really think about it, are you selling a property or are you squeezing out every penny you can? A good agent will negotiate the best price with one buyer instead of multiple offers that may or may not close the deal.     The hold back does bear fruit in some instances but lately I have seen more failures than successes and agents are over using a tactic that can hurt a property’s sale and make them sit on the market and go stale. This time of the year is usually pretty slow for real estate, as everyone is on vacation and getting ready to go back to school. Often you can find a good property while everyone is too busy, and I have seen a listing that would work great for my clients, but then I saw a hold back. These properties should wait a couple of weeks for the market to pick back up and then it would work. We are going to wait to pass the date and then see if it is still on the market and scoop it up for a better price. Timing can be everything! 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

Competing In Today's Market

by Darrin DeRoches August 7 - 13, 2014

If you want to sell your home for top dollar, you have to understand your market. Just because you hear the media saying it is a sellers’ market and Hamilton is having a boom in real estate does not mean your house will sell fast for top dollar. You have to understand your competition and beat them!     I recently did a home evaluation in the central part of Hamilton and once we did the walk through we discussed the renovations and possible price. The house needed paint and touch ups throughout and the seller was already doing the work. We discussed how they were going to finish the bathroom which was already under renovations. The final point was the kitchen which was in need of repair. The homeowner was going to try to match more recent renovations and do the paint, update hardware and simply “put lipstick on a pig”.     We sat down and looked at the comparables and came up with a price and a game plan. Some agents would have the sellers paint the entire home and put thousands of dollars into renovations when a simple cleaning and minor update would sell the property. This particular property had several homes for sale in the neighbourhood and all were recently renovated. We had to renovate the kitchen, do less painting and spend the time and money wisely as there is a limit to what the market will pay and you do not want to over improve the property. We saw the renovations that they had already done themselves and the quality was impressive so we discussed doing a total remodel of the kitchen by going to Ikea and slapping it together in two weeks. The kitchen was small and with new cupboards and counter it would only cost around $2500 dollars but the impression on perspective buyers would be priceless.     We convinced them to leave the upper floors with the paint that is there and spend the money and time on the kitchen. The house will then be ready to compete within its market with the other homes that have been on the market and are not selling. Everyone thinks houses are selling fast and for top dollar in Hamilton and in some areas that is true.     The last part of the game plan once the house is ready to hit the market is timing, price and commissions. I recently closed a condo that had its corporation collapse and no one else in the building has sold. We found a buyer and negotiated a deal and sold it. We have other agents calling us asking how we sold it and the answer is simple. We did our homework, presented the property properly, priced it right and offered the right commission. Five other units are sitting unsold, some are going power of sale and none of them are selling. Know your market! 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 Value Of Pools

by Darrin DeRoches July 31 - August 6, 2014

The idea of adding a pool and spending close to $50,000 once it is installed and landscaped is based on emotions, not economics. This time of year we all wish we could come home to a pool and we dream of having one installed. I have been thinking about it year after year and every time I try to justify it, economics win out over emotions. If I spend $50,000 on a pool and landscaping will it increase the value of my house?     The pool is just part of your landscaping and if it is just sitting there in the backyard all by itself then it really does nothing to add to the value of your home. If it is part of a great landscaped entertainment backyard, then it helps to sell your home, especially in the summer and fall. The emotions of a pool and the part that it plays in the landscape of a great yard will increase the value of your house but nowhere close to the tune of the total investment. It comes in around 10 per cent of the value of the pool if it is incorporated in a great back yard. Everyone who buys a home with a pool falls in love with it until it costs them money and this emotion helps sell a home.     If you had two exact homes in a neighbourhood — which is very common these days — with new builds and one had a pool, which one would you buy? Think about a finished yard with a pool and a totally landscaped yard that is priced higher than the competitor without the pool. If you could afford to buy the one with a finished yard with pool, your emotions would take over as well as your imagination of summer fun. If the agent explained the owners spent an extra $50,000 on the pool and yard but are only asking and extra ten or twenty grand, you would perceive its value and buy the house with the pool. The reality is that you would pay more for the house with the pool and they would get closer to their asking price than the house without a pool. This does not make you money, since you spent the $50,000 on the yard, but if you spent the same money on the kitchen, would it bring you the same return? A kitchen would bring you maybe an extra ten grand in return but you cannot swim in your kitchen sink!     The bottom line is that paint and flooring are the only two improvements you get a full return on its investment when it comes to improving your property. A pool can bring you years of enjoyment and in the end it will help sell your home, not hurt 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 sold@uniquerealty.ca.

The Art Of Debt

by Darrin DeRoches July 24 - 30, 2014

This week I had client who wanted to offer on a house that just came out and was set up for competition. They would not accept offers until one week later, after the open house. We viewed the property and I tried to show them that the house was not worth the asking price. I saw a lot of work and the price did not reflect the scope of work and market value. We left the showing and I thought that they would not want to make an offer, but they went to the open house and figured they were up to the task of doing the work if we got it for the right price.     The day arrived for offers and I called the company to register our offer, and asked if there were any other offers coming in. They said that it was early and no other offers were registered. I called again a half hour before presentation time and still no other offers. This just proved to me that the house is not worth its asking price and no one else was going to make an offer. We wrote up our offer just about 5 per cent below asking and drove to the office to present it. We were the only ones there and we presented the offer and waited for their response. They did not counter our offer and decided to put the house back on the market for 5 per cent higher than it was for the last week.     This is where the Art of the deal comes in and before the agent could even explain the reason, I stepped in and explained it. The sellers are so far in debt that they figured if they created “competition”, they would get over asking and be able to sell. Obviously my clients will not pay over asking and putting it back on the market higher than asking is only going to make the property sit for a long time. The agents are only doing their job for their clients but who is going to pay over market value for a property that needs a lot of work?     It is not my clients, I or the seller’s agent’s job to pay the debts of the sellers. They convinced the bank to lend them money on the property and ran up their debt and credit cards to a point that they now want a certain price to clear all the debts. Problem is, the property is not worth it. The only solution for this type of deal is to talk with a debt councilor and clear enough of the debt so that you can then sell the property – pay off all of your debts and even walk away with some money. The strategy they are using will just create a ton of time wasted and no sale. I cannot get involved with their clients and make the deal come together but I have done this for clients of my own and everyone walks away with money in their pockets! 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.

No Inventory In West End

by Darrin DeRoches July 17 - 23, 2014

I have clients who are looking to spend $400,000 dollars for a property in the west end and we are unable to find a suitable property. Ideally we would like an investment property and if not they would spend a little less and buy a single family. The inventory is so low and we have looked at everything that has hit the market, so we started to re–look at what is out there and it amazed me how out of whack some properties are priced.     This week an investment property dropped their price again to $399,000 so my clients got excited and figured it was a deal since it was originally priced around $490,000 months ago. We booked a viewing and were ready to make an offer before anyone else noticed the drop in price. Once we viewed the first unit we realized the property was in need of major repairs. On paper the property hit all the right boxes and it should have an income on $2400 a month and would work at the $399,000 price. Once we viewed the second unit it would take over $50,000 to update the property but its layout would still be an issue and it would be hard to rent the property at full value.     We moved on to another property that was listed last week and it was over our budget but we figured we could get the bank to go higher if the property was move-in ready. The listing did not mention anything about “as is” or “renovation” so again we were hopeful. Once we walked into the open house the agent immediately explained that the house needs about $50,000 in renovations. New furnace, kitchen, bath and the list went on. I was again amazed at how they could list a property that seems to be a little overpriced for the market but since inventory is low maybe they could get it. Now it needs over fifty grand which brings the house to at least $70,000 dollars higher than what we can afford, but in reality at least fifty thousand over what the market will pay.     I noticed that there were a lot of real estate cards on the mantle and asked the agent how the showing was going and he mentioned that there was an offer but that it was “low ball”. I had to bite my tongue since the amount of agents through the property tells me that they also believed the house was move in ready and the low ball offer was probably on the money.     This time of year the market slows down and what is left up for sale tends to be a project or overpriced. My clients are eager to buy and they will move fast to get a deal done but you have to step back and wait until the market starts to move again and enjoy the summer. A few good properties have come up and have sold quickly. We will keep on the ball and wait until the right one hits the market. I am pretty sure that the ones that are sitting on the market will still be there. 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.

Sales Up, Inventory Low

by Darrin DeRoches July 10 - 16, 2014

The month of June has shown big numbers in Sales and Listings. The market is strong and people are on the move. There were 2215 properties listed in June which was an 11.5 per cent increase over last year but the inventory was down by 5 per cent by the end of the month. The sales for June were 1572 properties with and average sale price of $399,917. This represents a 15.6 per cent increase in sales from the same time last year.     This is showing how strong the market is plus the fact that people are making moves in the market. Prices are rising by about 5 per cent from last year and everyone is reaping the rewards from this strong market. The average time that a house sits on the market is about 35 days which is down from last year. This all points to a strong market which creates a low inventory and this means that if your house is not selling, it can be due to one of two things. Either it is overpriced or your agent is not marketing it properly.     Every house has a buyer out there but in some instances it may be hard to find the buyer if you are priced wrong or not being serviced properly. Some agents just put the house on the system and wait for the phone to ring. The problem is that the phone is not ringing because the house is overpriced. Then there are the properties that are priced properly but the agent is not actively working the leads and making a sale happen. Some agents do not help the process along and buyers decided to purchase competing homes instead. If your home is sitting on the market longer than the average home, you should take a serious look at your situation. Is it the price, the agent or the home itself? You may need to do some painting, landscaping, change the price or change your agent.     This strong market does not create dumb buyers or huge competition. Buyers are still informed and you have to present your property in its best light to get the fast sale. Top dollar and quick sales only happen when everything is working in alignment. The agent and the seller work together to make the property presentable, priced right, and marketed properly. This time of year you have to watch out for long weekends and weather to hit the market at the right time. Having an open house on a long weekend and asking for offers that same week is a huge mistake. You cannot do a price drop when nobody is paying attention.     The sales are up and inventory remains low but you still have to work to get the best price. There are still good deals in the market you just have to know when to make an offer and see what the market has missed since everyone is about to either go fishing or take a vacation. Timing can be everything. 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.

No Inventory In West End

by Darrin DeRoches July 17 - 23, 2014

I have clients who are looking to spend $400,000 dollars for a property in the west end and we are unable to find a suitable property. Ideally we would like an investment property and if not they would spend a little less and buy a single family. The inventory is so low and we have looked at everything that has hit the market, so we started to re–look at what is out there and it amazed me how out of whack some properties are priced.     This week an investment property dropped their price again to $399,000 so my clients got excited and figured it was a deal since it was originally priced around $490,000 months ago. We booked a viewing and were ready to make an offer before anyone else noticed the drop in price. Once we viewed the first unit we realized the property was in need of major repairs. On paper the property hit all the right boxes and it should have an income on $2400 a month and would work at the $399,000 price. Once we viewed the second unit it would take over $50,000 to update the property but its layout would still be an issue and it would be hard to rent the property at full value.     We moved on to another property that was listed last week and it was over our budget but we figured we could get the bank to go higher if the property was move-in ready. The listing did not mention anything about “as is” or “renovation” so again we were hopeful. Once we walked into the open house the agent immediately explained that the house needs about $50,000 in renovations. New furnace, kitchen, bath and the list went on. I was again amazed at how they could list a property that seems to be a little overpriced for the market but since inventory is low maybe they could get it. Now it needs over fifty grand which brings the house to at least $70,000 dollars higher than what we can afford, but in reality at least fifty thousand over what the market will pay.     I noticed that there were a lot of real estate cards on the mantle and asked the agent how the showing was going and he mentioned that there was an offer but that it was “low ball”. I had to bite my tongue since the amount of agents through the property tells me that they also believed the house was move in ready and the low ball offer was probably on the money.     This time of year the market slows down and what is left up for sale tends to be a project or overpriced. My clients are eager to buy and they will move fast to get a deal done but you have to step back and wait until the market starts to move again and enjoy the summer. A few good properties have come up and have sold quickly. We will keep on the ball and wait until the right one hits the market. I am pretty sure that the ones that are sitting on the market will still be there. 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.

Thirty Day Closing

by Darrin DeRoches July 3 - 9, 2014

The market is moving very fast and this week I spoke to two different sellers who have thirty days to close their property and move on. Where are they going to go? The first seller sold their home by themselves and figured they could do it without an agent. They received an offer from someone who had to sell their present home and waited for months to see if the deal could come together. Last week they had a second offer to close the home in thirty days. They were very stressed and had to figure out who was going to buy the property, when, for how much and most importantly, if they took the second offer with a quick closing – where were they going to go?     As a broker I would have handled the whole deal in a different manner and dealt with all of those issues. The property is listed for $589,000, when it is worth over $630,000, and they would have had more offers – especially in this market – if they used a broker who would have marketed it and had a lot more exposure. This alone would have brought better offers and a higher price. They went with the quick closing and lower price and now have to find a place to live temporarily as they wait on their next move. Again, we could have arranged a better time frame to align their move and dealt with other agents to accommodate the right terms etc.     The second seller is a guy who split with his common law girlfriend who sold their property and now have thirty days to close. His situation is a lot simpler as he will just pack his bags and couch surf until his next move. This situation happens all the time. It seems men just want to “get out” of a situation and have no real need to make the next move. Then they realize it is time to buy another property as they do not want to rent forever. Once the deal is closed and they have the money figured out and a big cheque gets deposited in their bank, then they want to buy. Even though they know the money is coming they usually do not want to make the move until they actually have the cheque in their hand. Then we get the call to buy and buy something quick.     The market is still moving fast and you have to have a game plan to deal with it. This time of the year is when thirty day closing happens more often as people want to take the summer to make the switch and get into a new property before school starts. Think ahead and communicate your plan with your agent. Time and money are what most deals come down to so being prepared will bring the best results. 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.

Cooling Off Period

by Darrin DeRoches June 26 - July 2, 2014

When buying a new condo in Ontario there is a ten day “cooling off” period where you are allowed to walk away from the deal. This is when you can take stock of what the condo has to offer and if you bought the right condo. Your deposit has to be returned to you in full and you can walk away from the deal with no deductions. This only applies to “new” condos and not resale condos, but if you are working with a real estate professional they would have similar clauses to enable you to rethink your purchase.     This cooling off period is a time to get your lawyer to look at all the documents. A condo developer can put in a lot of clauses and descriptions that may or may not be what a buyer wants. There can be hidden fees; costs etc. and a buyer will want to have their lawyer take a good look at all the documents. The buyer will also want to check out other developments around the new condo to make sure their views, amenities and overall prosperity of the development will be delivered as laid out in the sales brochure. During these ten days, a buyer should also get their bank involved to make sure that they will have a mortgage on the unit once it is completed. If a bank does not like the development, they may not fund your mortgage.     Most of the legal and financial things will work themselves out during these ten days but buyer’s remorse may kick in. This is usually the biggest problem with people walking away. In most new sales of condos there is a big kick off and frenzy can occur. New buyers get caught up in buying a condo and they do not really take into consideration all of the factors. A couple of days later you tell your friends and family about your new purchase and someone who thinks they know it all starts to put doubt in your mind. They ask how much did you pay per sqft? What floor is it on? Do you know what else is in the neighbourhood? You answer all their questions and no matter what you tell them – you are a sucker!     No one is happy that you just bought a new condo and most likely will make thousands if not tens of thousands of dollars on your investment. They will tell you that you paid too much per sqft. Who is going to live there? You have no view. Everything and anything to discourage you from completing the deal. You can tell them the project sold out and that you made thirty to sixty thousand dollars on the unit once it is completed. They will still give you an opinion on why you should walk away because they are jealous.     During your ten day cooling off period, take everyone’s opinion into consideration but remember why you made the decision to buy in the first place and close on the deal. Trust your gut, do not be influenced by others’ opinions, and look at the numbers – they do not lie. 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.

Downtown Condos

by Darrin DeRoches June 12 - 18, 2014

This past week the condos at the old Royal Connaught went up for sale and a few other projects also made some announcements. The Tivoli released a picture of their renderings of the upcoming project and the tower seems pretty big. The Artizen condos beside the Lister Block also put up a sign to announce their project. Both of these projects are still far away from selling and are announcing their project because the Royal Connaught was on sale.     My client is very interested in buying condos in Hamilton since we’re named number one city to invest in. For years, people have bought condos as an investment in Toronto and their condo market is so huge that some fear that the capability to make money in prospecting condos has come and gone. This has then brought attention to the Hamilton market, but after this weekend I wonder if we get it. The idea of buying a condo below market rate and then reselling it in 18 months to two years when the project is completed only works if the original price is low enough and the resale market raises enough to make a profit. If you were to buy a condo at $390 per sqft and then sell it two years later at $410 dollars per foot, then on a 1000 sqft foot condo you can make $20,000. This speculating buying process helps the condo builder’s ability to sell all the units and get the project built and at the same time allows for investors to make a better return on their money than sitting in the bank. The problem is that the builder has to be willing to sell at the right price and the market has to continue to rise. This is why it is called speculating.     The Connaught, Tivoli and Artizen condos are all big projects and will have to sell a lot of units. Collectively they will bring in over eleven hundred units to the downtown plus the other projects that are being built will bring a huge influx of people living in the downtown in the next two years. The first question people ask is “who is buying these units?” and the answer is simple – everybody. I spoke with young and older people who have the desire to buy condos and live downtown. The downtown area is changing in the right direction and the Royal Connaught will be the turning point.     Sales are the answer to everyone’s questions and sales are happening. Condos have been in the downtown for many years and different projects have had different levels of success. Over the next six months to a year, you will see the success of these projects selling. The next 18 months to two years you will then see the influx of people moving into these condos and downtown will have the biggest growth it has seen since the Royal Connaught was first built. 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.