Matrimonial Home

by Darrin DeRoches December 13 -19, 2012

Last week I wrote about death or “estate sales” so the natural progression would to discuss “divorce” which to some is just as bad as death. I have a client looking to separate from their “common law” or “baby daddy” depending how you look at it, and the question of the matrimonial home is the issue. In most cases the home that a couple lives in becomes the matrimonial home and it is the largest asset. Most couples will simply put the home up for sale, pay their debts and split the remainder monies evenly and move on with life. Then there is the couple who cannot come to an agreement and all hell breaks loose.     My client wants to move on with her life but the “baby daddy” does not agree on anything. She has tried to negotiate and his answer is he will not sign the agreement. The sale of the matrimonial home has to have both parties’ signatures to make it legally binding. His name is not on title but since they have shared the home as a “common law” couple, he has rights to the asset. I can list the property with her signature since she is the only one on title but when an offer is received and we negotiate a deal, I have to get the “spouse” to sign the agreement or the deal cannot close. This is where things can get pretty messy. He has already made it perfectly clear that he will not sign and he has even threatened to put a lean on the property. I have heard horror stories from agents and things do change as time goes on. The reality of the house selling is more of a wakeup call than anything else. Once they sign the house away, the next signature is on a divorce or support paper, so things can get out of hand.     I was selling a home for a divorcing couple years ago and we had a good offer on the table so I called both parties and arranged a meeting. We were sitting in the back yard and the tension was pretty high between the couple. I explained all of the details and when they agreed on the amount, the wife expressed concern was that the husband wouldn’t keep to the deal that they had made between themselves on the amount paid to her. I obviously had no dealings in their deal so I just sat there while looks, glares and a lot of silence ensued for the next few long minutes. The gate opened and the new boyfriend walked in. I was sitting there thinking “I am either going to get a signature or be breaking up a fist fight”. A few words were exchanged and she signed the paper to “end it all”. Interesting to say the least.     Prolonging the inevitable will just cost you a lot more money and grief. In the end I will get the spouse to sign the papers – I always find their motivation. 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.

Estate Sales

by Darrin DeRoches December 6 - 12, 2012

There is a big misunderstanding when it comes to estate sales that the estate has to be settled before the “estate home” can be sold. This is far from the truth and in reality the home is usually the biggest asset and has to be sold to close the estate. If you do not know what an estate sale consists of, it is usually when the parent or parents have passed on and their home becomes part of their estate. There may be multiple family members involved or it can be the government and banks. In most cases it falls to the family to settle the estate, with wills, assets and debts involved. Most people wait until the lawyers have all of the other matters settled before they sell the home but it should be one of the first assets sold.     The home usually holds the biggest value in one’s estate and once it is sold the proceeds are entered into the estate and then divided up amongst the parties involved. Unfortunately family usually gets involved and their emotions take over any business logic. Whether it is due to the fact that the homes hold so many memories or it holds so much money – families start to disagree about how to handle the home. I have seen families argue, cry, hire multiple agents or worse – allow the lawyers to become involved and drag on the inevitable and bill large fees in the meantime.     When an estate sale is listed, most agents look at them as “power of sales” in our market. Everyone is always looking for a “power of sale” but these are controlled by the banks and they will not sell it lower than the amount owed. An “estate sale” is usually a fast sale which means the property will be listed at value or under so the estate can be settled and the family can get their money – as fast as possible. The homes are usually in great structural shape, new windows, doors and roofs but they are usually lacking in new updates and style. The savvy buyer realizes a new kitchen and bath will bring it up to today’s requirements and they look to buy such “undervalued” homes.     The key to selling an “estate home’” is to contact a broker, like myself, who will take care of the transaction with your families wishes in the forefront. Properly marketed, these homes can get multiple offers and sell quickly so that you can settle the estate and make sure that the home goes to a family instead of a “flipper” who is looking to make a quick buck. Be wary of agents whose cards and flyers show up in your “estate sale” homes mailbox because there are agents who read the obituaries and target these homes. It may be hard to believe but I have actually seen it happen, it is not a myth. Properly handled, an estate sale can be a smooth transaction and garner a great result. 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.

Going Alone

I had two different scenarios this week one with a long time client and one with a new client.  They both believe they can do a real estate deal by themselves – but they called me for advice.  The new client was looking for a space around 1000sqft for a café in the downtown area.  They had called before and I explained to them I was aware of about three spots that would work and if they wanted to view give me a call.  A couple of weeks passed and they contacted me again asking for suitable space.  I reminded them about the location I knew would work and they started asking questions about zoning, price, location etc.  I explained a location in the heart of all the action and they responded with interest. Then the first red flag popped up when I told them I spoke with the agent and they asked me to have him email them directly.  I explained that I would arrange everything and represent their interests, they agreed and we went to set up a showing time.  I texted the agent back to set up a time and his response was” do you clients know how it works?”  At first I was confused but I quickly realized they took my information and contacted the agent directly and started to go on their own. Most people would think it is no big deal and I just made a phone call – right?  Absolutely wrong!

In today’s market more and more people think they can go it alone.  They do not realize how a brokers experience and knowledge can not only save them time but a lot of money.  This group has to take into consideration zoning, new “handicap rules”, location, lease terms, permits etc.  They have talked with the city and are under the understanding they will have to build new washrooms, access etc. - but they do not have if it can be “grandfathered”.  This alone can save tens of thousands of dollars and months of time.  Dealing with the city can be a nightmare but if you know the right questions to ask it can be an easy transaction.  My commission would have been about $1,500 but they will be spending over ten times that without the proper information.

The long term client calls me out of the blue and asks about HST? I ask why and he says he is looking at new build in Toronto worth about a million dollars and was talking to the listing agent who may have not included it in the possible deal.  I explain that will cost him about $130,000 dollars but if he did a few things in the negotiation I could get that included in the deal.  He is still paying the listing broker the commission regardless but he did not explain the inclusions or excluded clause 7 about HST. Luckily he called me in the last moments and I can still represent his interests and show him how to structure the deal where he can save interest and money in the long run and I will earn my commission while saving him money. Use a broker!

When To List Your House

by Darrin DeRoches November 22 - 28, 2012

The phones have been ringing this week with clients asking about the market and when they should list their properties. It seems to happen every year around this time because people want to start off fresh in the new year. The holidays are fast approaching and everyone will be talking about what happened in 2012 but more importantly they want to talk about their plans for 2013. The buying or selling of a house usually creeps into the conversation. People want to sell now to close out the year but most people realize it is not the best time of the year to sell. The holidays, weather and a slower market usually deter people from buying and selling during December. So when is the right time to put your house on the market?     Sellers who want to start the year off right may think that everyone is ready to start buying in the first week of January but it usually takes a couple of weeks to kick start the market. If the weather is not too bad then the second week is a good time to list a property since everyone has shaken off the hangovers and are back to their regular routines. If there is a snow storm happening or a deep freeze then wait until the third week to put your property on the market. If you do an open house during a deep freeze it will be quite hard to cause excitement about your property when everyone is cold and bundled up. You can only make a first impression once and you want to enter the market when the market is paying attention. Weather is a huge factor in January and it has to been considered.     The clients who called me this week all mentioned that they wanted to put their properties up in March and when I asked why then they all answered “the Spring Market”. After a couple of simple questions I realized that they are not taking into consideration the timing and closing periods. If you list a property in March it takes about 45 days on average to sell the property and anywhere from 30 to 60 days to close the property which will take the sale into mid–summer or late July. Just because you have a pool and you think that it will show better in March, you actually have a better chance of a sale in January or February for a closing in the beginning of the spring when the pool can be opened. A simple presentation of the summer backyard via pictures or video will sell the “dream backyard” while the prospective clients are looking at an ice cold backyard. This strong contrast will be more impactful during the cold winter instead of the drab pre–spring market. People buy their vacations from online pics and brochures of the “hot get away” in the winter months while they are sitting in a cold house looking outside at snow and ice. List in January for the spring 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 mail@uniquerealty.ca.

Investment time

by Darrin DeRoches November 15 - 21, 2012

It’s coming close to the end of the year and the phones are starting to ring on investment properties. Investors start to realize that they need to either invest their earnings for the year or they will be paying tax on these earnings in a short six weeks. Every year at this time all the investors I have been working with over the past ten months start to come out of the woodwork. The only problem is that the inventory is low and the prices are high.     I spoke with a building owner this week that has had his downtown property up for sale for at least six months. I asked how it was going and he told me he had three offers on the place. Sounds good but why is it still on the market? First two offers were “lowballs” and the third was right on the money but the buyer could not get the money. Unfortunately this seems to be the pattern for this year. There are the same few investors who take a look at every property that comes up and then they wait to see if it sells. When the listing gets a little old they come in and make a “lowball offer” to see if they seller is desperate enough to sell. It may work one time out of a hundred but it just wastes a lot of time and energy. The second scenario of an accepted offer and the inability to raise the money is more common.      It is still hard to raise the money needed to buy a property in downtown Hamilton. Yes, we are rated the best place to invest in, but the banks are still slow on the concept of lending money to investors looking to invest in the number one community in Ontario and Canada. This particular property and a couple of the others that I have been involved in this year have all had a few stumbling blocks to get sold but things are getting better. I was looking to send commercial properties in the downtown area to my client today and I saw three conditional sales on properties that were listed in the past 60 days. They are not sold yet but the offers have been accepted and I am confident that they will sell. The companies selling them deal with a lot of commercial properties and they tend to have qualified buyers who are serious and dedicated investors.     The residential market begins to slow down for the upcoming holidays but the commercial market tends to spark up for the same period, so if you are considering selling your commercial or income earning property you should put it on the market and take advantage of the strong economy and high interest in our city. The government is not raising taxes for next year and the economy is looking strong which translates into money flowing into investments. Real estate is the best investment one can make in today’s economy and Hamilton is going to be number one all year long! V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Downtown Rumours

by Darrin DeRoches November 8 - 14, 2012

It seems that interest in our downtown is still pretty strong. Over the past couple of weeks, I have had conversations with several people about the next great thing coming downtown. There are two restaurants that must be opening soon since they have removed the paper from their windows.  One is on James Street and the other on King Street in the International Village. There is also the Burrito Boys in Gore Park ready to go (who have had the longest hanging of an “opening soon” sign that I have ever seen), and the promotion of the Anchor Bar which is currently renovating the old location of Waltz.     That brings us to the rumour of Waltz reopening on King William but it’s only talk right now. The old Grapes N Things is being worked on right now which creates a lot of activity in that area.     At my last count, I can speculate that there are six different groups presently looking at properties to buy or lease for new restaurants in our downtown. This may not seem like a big deal but it really is. The old Windsor and Junction properties are being considered as well as others. It seems as though every single property that was a restaurant, nightclub, lounge etc., are all in the running. The most interesting thing about these rumours is that all but one of these groups are Hamiltonians, not outside parties. This says a lot about our confidence in our city. We are looking to put our money into our city. There are some restaurants looking to open a second location downtown and a few are considering relocating to somewhere downtown.     The obvious question is “why?”     We have to look inside the minds of restaurateurs and business people and consider what they are seeing that others may not be. It is not as though there are line ups for all the restaurants and that we need to open more but maybe that is not far off. Hooters are opening a downtown location so that must means something – right? All of this interest may be the next step in bringing back the excitement and nightlife to our downtown. To answer the question why is pretty simple – new  hotels and condos and more entertainment.      The removal of HECFI and the building of condos and multiple hotels are the reason that the soul of the downtown is starting to resurrect. People will be coming to town for more concerts and corporate events, and those who realize this are looking to invest in places for these people to visit. Corporate and independent investments are going to change the landscape of our downtown and it is just around the corner, not a pipe dream of yesteryears. Rumours are becoming reality and if you are considering real estate in our downtown, move now before it’s too late. Investors, restaurateurs, co–ops and corporations are all making moves – today. 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.

Debt Advisor

by Darrin DeRoches November 1 - 7, 2012

I had an interesting lunch this week with the owner of Ontario Debt Advisors– James Woods. I was interested in the difference between a “debt advisor” and a “bankruptcy lawyer” or “trustee”. The reason I was interested in finding out how this all works is because as a real estate broker we are contacted frequently for an “opinion of value” on people’s real estate. These opinions are required when someone is considering going bankrupt or arranging a consumer proposal. Ninety-nine per cent of the time, the person who is asking for an opinion of value is not going to sell their home but rather are looking to control their debt. In most cases they ask a real estate agent to come out to their home, do the five minute tour and then ask for a written opinion of value, so they can fix their debt — not sell their home. I have no problem giving someone an “opinion of value” just let’s skip the tour, time, lies etc. The first step in fixing your debt problem is being honest to yourself and your advisors – numbers don’t lie.     To best explain what a debt advisor is, the explanation from ontariodebtadvisor.ca is “Ontario Debt Advisors is a Debt Consulting Firm driven to help Canadian consumers living in Ontario that are struggling with overwhelming debt. We are not trustees in bankruptcy. Trustees must consider the interest of your creditors and maximize the amount paid to your creditors and in turn, the trustees earn more of your hard earned money. Ontario Debt Advisors acts solely in your interest to ensure that you get the possible results by utilizing Federal Government options to eliminate or reduce your debt — immediately.”     By using a debt counselor you can reduce your debt by up to 70 per cent and keep your credit score, house, cars etc. It seems that everyone went bankrupt years ago and now a “consumer proposal” is the new norm. The difference is huge and of course every case is different but you should take impartial advice from a Debt Advisor before making a rash decision. Most people wait until the last minute when their house is going to be put up for “power of sale” and they are being harassed by their creditors.  Call an advisor before it’s too late. They can arrange your debt, reduce it by a large margin, and set up “interest free” payments to get you back on track. Creditors will tell you anything to get their money and most of the time they will go to any lengths to get it. A debt advisor can stop all the calls, arrange an affordable payment plan by reducing the amount owed — it is that simple.      As a real estate broker I would rather sell your home and help you downsize than get a call from the bank that has it up for power of sale and you being put out on the street.  If you need help with your debt email me darrin@unqiuerealty.ca and I will have a Debt Advisor contact you. 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.