Coffee Round Table

by Darrin DeRoches October 18 - 24, 2012

I was invited to a coffee round table by Glen Norton our Urban Renewal Manager which featured Mathieu Langelier – Executive Director, Hamilton Halton Builder Association and Cameron Nolan the President of Realtors Association of Hamilton Burlington. To be honest, I thought that it would be a boring, stuffy type of stale coffee, big winded talk from people who had an agenda and who were forcing it down your throat kind of deal. But I was totally wrong.     The meeting was held at the Mulberry Coffee Shop, which provided the space, great coffee and amazing muffins. The informal setting and talk really brought out a casual, yet I say, cool – vibe. The open form brought out architects, realtors, investors, property owners, landlords etc. Everyone had an open forum to discuss topical points that related to our city. The two big topics were the new but dreaded legalizing apartments and the creation of more condos/apartments in the downtown. Everyone is up in arms in registering all apartments with the city. It is not the costs of doing it; it is the ramifications that come with it. Every landlord wants their units to be legal since it will make insuring and renting easier but at what costs? The zoning nightmares will be insane, costly and next to impossible. The second topic about bringing new builds to the downtown boiled down to the same concerns – City Hall. Builders are not worried about selling the units; they are concern with all the red tape in city hall – period.     It is easy to blame City Hall and our politicians for all of our problems but from a neutral point of view – City Hall has made vast improvements but it still has a way to go. Twenty years ago I dealt with city hall for a business downtown and they were like dinosaurs in the building department. I had to challenge, argue, go to the OMB and finally just correct all of their assumptions with the facts in order to move forward on a simple 15 person patio. In today’s building department there is still a pass-the-buck, cover-your-ass type of attitude. This culture has to change and it has to change from the top down. The city says they are open for business and they are BUT and it is a big but, the building department has to get up to speed. I can sit here and suggest what they should do but really they should sit with a bunch of builders, realtors and landlords and ask them what needs to be fixed and FIX IT!     Our downtown and our city as a whole can grow exponentially if only we really open the doors to the developers, builders and businessman who are scratching at our door but are afraid to really commit.  Streamline our building department, remove obstacles and let our city grow to its full potential – it may all just start with a simple conversation over a coffee. 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.

Fast Moving Market

by Darrin DeRoches October 11 - 17, 2012

Let’s look at the real estate numbers so far this year. For the first 9 months of the year, our market is up 7.5 per cent from last year. In comparison, the overall for last year was a 7 per cent increase and since the first nine months are up 7.5 per cent, we should easily beat last year’s increase. It is easy to say that in the past two years, real estate value has grown by over 7 per cent - that is a great increase. In today’s market, homes are selling faster – 45 days on the market compared to 54 days last year – and for higher prices. September actually had a 13 per cent increase in value compared to September, 2011. In short, fewer homes are on the market but are selling at top dollar.     The average home price during September in our market is $369,032. That is pretty impressive. The next question is, has it become a sellers’ market or is it a buyers’ market? The reality is it is pretty balanced right now but you can call it a sellers’ market since listings are way down and prices are through the roof. So what does this mean? Sell your home now! If you are even considering selling your property, this is the time to get top dollar. If you sell now, you will get the best price but you may also have to pay top dollar for the next property – or will you?     If you consider the reality that all properties are getting top dollar in today’s market, how can you take advantage of this? The first thing you do is prepare your property to get top dollar and once you hit the market, start looking at properties that have been on the market for over 45 days. If they have not sold, they are either overpriced, in need of repairs or have been over looked. These properties have become the “ugly ducklings” and there are deals to be made. A savvy real estate broker can pinpoint these properties where you can actually use the strong market as your bargaining chip. If a property is not being sold – something is wrong. Point out the issues and make an offer with these in mind and properly negotiated you can find the right property for a great price.     The market tends to slow in mid-November/December and if a property has been up since September they will be concerned that they cannot sell before Christmas. In some cases they have already bought and they will just want to sell to move on. I saw a property sell for $20,000 less than market value since he was satisfied to get his money out and move on to his new project. A quick closing can save you thousands of dollars right now. V     Darrin DeRoches is a local real estate and mortgage broker. H

Agent Goes AWOL by Darrin DeRoches October 4 - 10, 2012 What do you do when your agent goes missing? I received a call today from a buyer who had made an offer on an investment property that we had listed. He was looking for his deposit back since he could not get financing and he had called his agent three times in the last week with no response. Exasperated, he called me asking if I could write him a check. Unfortunately, I could not do that. So I called his agent and I’m still waiting to hear back from him.     This whole deal was wonky from the beginning and now I have to explain to my seller that the deal is dead. I have to call the other company, talk to the broker of record, request the paperwork and probably even deliver the deposit check back to their office. We have to put the property back on the market and start all over again. Oh, and I almost forgot – no commission, not a penny. So if it sounds like I am complaining about the lost sale – I am not – it’s the other agent that is going to get an ear full.     The agent showed the property to multiple buyers, which puts up a red flag that they are trying to ‘convince’ buyers to buy an investment property. The offer was mediocre at best and they had a quick closing date which would be very difficult to meet. The most telling part that the agent was full of it was that if you called his voicemail, it stated “if you leave a message, I will get back to you within 24 hours”. I would not hire an agent that would get back to me within 24 hours. I realized the agent was not only part–time but had a 9 to 5 job since all calls were returned just after five o’clock when he got off work.     The reason he was not answering the phone was because he was not making any money. I believe his client was not aware that you have to put 20 per cent down on investment properties and tried to “pull the wool over the eyes” of the bank. Of course it did not work, banks are not that blind. So not only did he not inform his client about the costs involved, he is now being totally unprofessional by not answering their calls.     The moral of the story is – you get what you pay for. If you are looking to buy an investment property, talk to an agent who has investment properties and works full–time. They will provide the proper answers and give you expert advice on the investment. So now I will do the other agents job and remember his name because if he calls again – I will suggest he sticks with his 9 to 5 – he has no business working in the real estate business. V

Quality Selling Fast

by Darrin DeRoches September 27 - October 3, 2012

Fall is officially here and it is starting to get cold but Hamilton’s real estate market is getting hotter by the minute. We should all know by now that we are number one in Canada and Ontario for real estate and investment (if not hit up viewmag.com and look at my past articles) but all I see around the city is “sold” signs. I am getting calls about properties even after we have a conditional offer with people hoping the deal falls apart so they can jump in and scoop it up. This is not just happening in one part of the city, it is happening all over.     One agent listed a property in Rosedale area with three bedrooms, garage, driveway, deck, steel roof, new windows, new kitchen and 2 baths. I am familiar with the property. Since I was doing a market analysis for a property I am listing it was a great comparable. I called the agent who informed me that the seller had already purchased a new home and wanted a quick sale – so they decided to list at $264,900. They put the property up on the market in the morning and within 9 hours it sold for over asking. Since I knew the agent, I had to ask if they had priced it low to get multiple offers? He stated it was priced to sell fast since the client had already bought and did not want to wait to sell. This only confirmed that my new listing can ask even more than what the seller was thinking.     Later in the week I was talking with a colleague who had a property sell in Ancaster. It was priced over a million dollars but sold within days for top dollar. It was a beautifully built builder’s home and worth it’s price tag but to have a home over million dollar sell that fast was impressive. The common thread in both of the properties – Quality.  If you have a property that is in good shape, and priced right, it will sell fast. There are other homes in both of these neighbourhoods that have been listed and sit on the market, but properly marketed homes, staged and priced right are blowing them out of the water.     So if your property is worth 100 thousand or over a million dollars, consider the time it will take to properly market the property and the rewards you will reap in time and money. Take a little time to do the staging, cleaning, painting etc. Since the market is moving fast it will be time well spent. You can only make a first impression once, make it count and you will sell your home fast and you can then spend your time counting the extra money you made on selling your home in a hot 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.

Your Fifteen Minutes

by Darrin DeRoches September 20 - 26, 2012

Fall is just around the corner and the casting calls are coming in. We had our first episode debut this week on the W networks’ My House Your Money  and we received two new casting calls this week.      The first show is a new show with Property Brothers Drew and Jonathan who are looking for a couple who have found their dream home, but find themselves scrambling to put their current home on the market. Are you stressed about viewings & deadlines? Does your old home need a face-lift to make it more appealing to buyers and maximize its value? Let their team of design experts help speed up the sale and get you into your new home. Families moving within and around the Toronto area are invited to discuss the possibility of obtaining a renovation completed on their current home.     The second show is a new program called: Inside Outside Upside! From the producers of Sarah’s House - Inside Outside Upside! is a new HGTV series currently looking for homeowners who have recently purchased their dream home and need help fixing up their existing property before it goes on the market. They are looking for couples located in the GTA (Greater Toronto Area) who have a minimum of $12,000 to put into interior and landscaping renovations and are available to go through renovations in September/October. Participants will receive a sizable amount of product and donated labour for participating on the show. Participants must be willing to appear on air.     If you or someone you may know is interested in one or both of these show just give us a call or email and we can answer all your questions and put you in touch with the right producer to make it happen for you. Filming a real estate TV show can be a very fun and insightful time. The excitement and exposure can also help the resale of your home. They use the top designers and production people to create an amazing end product that will definitely put more dollars in your pocket when selling. We enjoyed filming our episode in and around Hamilton and there is no better way to create a buzz about a property than filming a television show and being able to put the stamp of their designer on your listing.     We also have a close friend who just shot a pilot real estate show produced / directed by Mike Holmes about renovating the space of a single father to set up their place for their children. When this pilot gets picked up they will be looking for single fathers looking to renovate.     So tap into the magic of television and take advantage of all it has to offer. Your home will be the leader in the market and you will get top dollar! Give us a call or email for more information. 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.

Number One Again

by Darrin DeRoches September 13 - 19, 2012

Hamilton has been named the top city in Canada to invest in. Hamilton has attracted more industrial and commercial development than any other city in Canada over the past year. The Site Selection Magazine analyzed projects with at least one million invested and at least 50 new jobs created or at least 20,000 sqft of new construction.  I will now include a typical email I received after writing about the accomplishments of Hamilton:     “Hey Darrin, enjoy your column, especially the recent one on REIN’s selection of Hamilton as the top investment market in Ontario for the next few years. First I need to check some facts with you. I read recently, I think it was in the Downtown BIA newsletter, that Hamilton had been picked as number one in Canada. Was that last year? Were we not number one in Canada this year, but still number one in Ontario? Can you clarify this? Secondly, and I’m going to be a bit of a skeptic here, but don’t take that personally – I’m skeptical about everything. I’d be curious to know what cities had been picked by REIN in the past, and did those cities actually experience substantial growth and increased market values in the ensuing years after they were picked ? Thanks for shaking the Hamilton pom poms. Regards, Mike”     This email is exactly what I would expect after writing about we are now number one in Canada not just Ontario and, yes, we beat Quebec City who have 16 projects and also that little town down the road called Toronto with 15 projects. We had 20 projects over a million dollars in the last year and we are on track to have a great year with Navistar and the downtown hotels and condos.      So to clarify our recent accomplishments we are number one in Ontario for the top place to invest in according to REIN’s data and we are number one in Canada for the place to invest according to Site Selection Magazine.      We have all the infrastructure, highways, railways, ports, airports, in place to grow inside of our city’s boundaries to become a force to be reckoned with. Stop living in the shadow of the city down the road because their tower isn’t even the biggest in the world anymore.      I do not blame Mike for being a skeptic and I do not take it personally but the city has to start realizing what we have before someone comes in and buys it all up. If you look at what other cities have accomplished by moving forward instead of dragging their feet, you will see the rewards.     Brantford’s casino has proven its worth and we should consider our opportunities. The harbour is the next jewel to be reckoned with and let’s keep the ownership as local as we can. Invest in your own real estate market before outsiders buy it all up and you miss the boat. 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.

Picking Up More Steam by Darrin DeRoches September 6 - 12, 2012 First bread, now auto parts – Hamilton business parks are picking up some steam. It was announced today that Navistar, which is International Harvester, is bringing a parts depot to the Redhill business park across the street from Canada Breads new plant. It is planned to be up and running in 2014 and will replace their present plant in Burlington. The plant will be 250,000 sq. ft. and will bring 50–60 jobs. This very company left Hamilton years ago and the fact that they are returning is the big deal behind this development.     The mayor was quoted “To have this company return to our community is another major step in our continued renaissance. It also demonstrates that the investment this Council made in our Economic Development function was money well spent as it continues to provide measurable returns in non–residential assessment and jobs.” To put this quote in layman’s terms, it is good to see the city actually doing their job. The Economic Development has been doing an excellent job by moving fast and not allowing the councilor’s time to screw things up by grandstanding and prematurely letting the cat out of the bag.     The NHL and the placement of the new stadium for the Tiger Cats are prime examples where the past and some present councilors put their agenda and egos before the needs of the city. They spent more time getting press and puffing out their chests than actually doing their jobs and they screwed it up. The Canada Bread development was all done before the councilors were even told about it. They had a meeting, gave them all the information and asked them to vote. This is the way it should be done and this is why we have these developments.     The developer of the project, Mr. Joe Hamadi, stated “On Friday, May 4th we requested a meeting with the Mayor, City Manager and Senior Staff. That meeting was convened on Monday May 7th and a pre–consultation meeting for the project was held with Senior City staff four days later. This is clearly a municipality that wants investment and can deliver service.” This quote says it all and does not have to be deciphered as a politician’s quote does. Taking care of business is what the business world wants, not a dog and pony show. The city responded in a businesslike manner and nobody was scared away from grandstanding in the media. Take a second to close the deal – then tweet about it to your heart’s content.     These developments are bringing jobs and people to our city which creates a strong real estate market. We have a great base to build on and it seems that city hall is finally getting it right. I hope they are learning from their recent success and we will be making the right choices for our future. If they pick the right company to run Copps and Hamilton Place, future hotels, condos and maybe even a NHL team may come out of this decision. These developments impact everyone's taxes, equity etc., and if they keep going in the right direction we will all be winners! 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