Wednesday, December 11, 2013
Making Your Kitchen More Attractive to Buyers
Ottawa December 12, 2013
What's one of the most important rooms in your home? When it comes to
selling your property quickly, and for the best price, the answer is clearly the
kitchen. In fact, one of the most common explanations a particular buyer
gives for not making an offer is, "I liked the house, but I wasn't too keen on
the kitchen."
That doesn't mean you must do a major renovation. However, you should do
what you can to make the kitchen as attractive as possible to buyers.
Here are some ideas:
First, clear the countertops. Put away the toaster and other items. You want
to make the entire countertop area seem as spacious as possible.
If the cabinetry is old, you can spruce it up by installing new knobs, handles
and other hardware. A fresh coat of paint on the walls and ceiling can also
make the kitchen look like it has had a major renovation – and it will only cost
you a few hundred dollars. According to an article on the website HDTV.com,
"The fastest, most inexpensive kitchen updates include painting and new
cabinet hardware."
Replacing the countertops is a more expensive renovation, but it may be
worth it if the current counters are old and worn.
Finally, when preparing your kitchen for a viewing, make sure it's clean and
tidy. The garbage and recycling bins should be empty. Buyers will open
cabinets so make sure items on shelves are neatly organized with the front
labels facing forward.
There are many other ways to make the most important room in your home
look great to potential buyers. Call Ian 613-222-2662 or email ian@royallepage.ca today for more ideas.
Thursday, October 31, 2013
Proper use of an Amendment to the Agreement of Purchase and Sale-
Originally published in the OREA Newsletter November 2013
An amendment – a change to one or more terms in an agreement – is a tool commonly used in real estate. A latecomer to the transaction, an amendment is proposed after an offer has been accepted and a valid and enforceable agreement of purchase and sale (APS) is already in place. When an amendment is presented, a party to the agreement seeks a change to the original deal -- technically, it is an offer to amend.
Amendments happen on a regular basis and you should be prepared and knowledgeable in dealing with them, according to several REALTORS® interviewed for the EDGE newsletter.
You will likely encounter situations in which one or both parties wish to amend an agreement. However, both sides must still agree in order for an amendment to take effect. If you wish to amend an agreement, it is suggested that you use OREA’s Standard Form 120. When first submitted by one party to the other, this form is an “offer to amend” the signed APS that exists between the parties. As an offer, it is open to acceptance or rejection by the other party. That document also contains an irrevocability clause so that the offer to amend is open for acceptance until a specific time, after which it is void. This form does not, however, void the original APS. It changes the APS to reflect the amendment to which both buyer and seller have agreed. It also specifically confirms that all other terms and conditions of the original APS remain the same.
Amendments are often used to change a closing date or adjust a selling price after an inspection unearths an issue that the buyers feel warrants a lower price, says Nancy Bloom, a Toronto REALTOR® and OREA instructor.
For instance, an inspection may reveal issues with well water quality at a cottage. The buyer still wants the cottage but now needs to spend more money improving water quality, so he proposes to amend the APS to a lower purchase price.
On the other hand, sometimes a seller requests an amendment. She may suddenly realize she wants to keep something -- such as the chandelier in the family room -- but forgot to specify in the APS that this fixture should have been excluded.
An amendment means a change is requested, says Bloom, and it can be used to correct any errors that may have been missed, such as a spelling mistake. However, she has also seen amendments used in transactions when another document might have been more appropriate. “An amendment should not be used to remove a condition,” she says “If a condition is met, a notice of fulfillment should be used. If a condition is not met but the client still wants to proceed with the transaction -- such as when a home inspection reveals deficiencies that the buyer is willing to accept -- a waiver should be used.”
Amendments are sometimes misused when the negotiation is not completed to everyone’s satisfaction at the offer table, in the view of Doug Monett, a Huntsville REALTOR®. “My belief is that if a deal is done right, an amendment is not usually required. However, sometimes an amendment is needed when a deal is going off the rails. It is the document of choice that saves a lot of offers at the eleventh hour.”
Sometimes the bank simply needs more time to get its paperwork in order, says Monett. “Still, the transaction can fall apart right there. That extension has to be agreeable to both sides, and an amendment often does the trick.”
Financing arrangements often lead to proposals for an amendment, says Monett, who is also an OREA instructor. “I’ve had situations where we’re dealing with a mortgage company or working through a mortgage inspection and the buyer needs a few more days beyond the time frame in the condition in the original offer. The only way to achieve that is if the seller agrees. In that case, an amendment is a tool we must use.”
Some years ago, he recalls an offer with a closing date agreed to by both parties, but no-one realized it coincided with a new statutory holiday. “The buyer rep called me back to say the bank would be closed that Monday. I thought he was pulling a fast one until I checked into it. That was the first year Family Day was celebrated in Ontario. We used an amendment to change the closing to Tuesday.”
Monett has also seen amendments used when another document would have been more suitable. “Once in a while, buyer reps produce an amendment when a notice of fulfillment or a waiver would be the better tool. Their intent was clearly to drive down an already-agreed upon price at the last minute by raising an issue ‘discovered’ at the home inspection when the seller and listing rep assumed the negotiations were already complete. This is heavy-handed negotiating, to say the least. I always warn sellers of this slight possibility and prepare them ahead of time with their response. Often the buyers back down because they really wanted the house all along – they’re just trying to squeeze the seller for a better deal.”
Christian Allan, a REALTOR® from Perth, Ontario, says amendments are sometimes sought by buyers who want to re-open a transaction to a lower price. “I’ve worked with amendments quite a bit, and most occur when buyers are trying to renegotiate the price or delete conditions to make the offer more attractive to the seller,” she says.
Amendments are often proposed in real estate, but sometimes they are not the best thing for the deal, says Allan. She was recently involved in a deal in which the APS was accepted by both parties but a small amount of galvanized plumbing was discovered in the basement that she felt a minor repair could fix. “The buyer insisted on a price reduction and wanted an amendment. Sometimes it’s a case of saying to the buyer, ‘You’ve got to be more realistic here’. Buyers sometimes see it as their right to come back with an amendment, whereas sellers are surprised to be asked to renegotiate.”
“If my buyers want to revisit something really small, I try to coach them to reflect on whether that is the right move. I hate to see them go back to the seller to renegotiate an agreed-upon offer over a minor issue. On the flip side, I also coach my sellers that they have the right to refuse that amendment.”
An amendment is not always a simple solution. Clients should be advised to proceed with caution in proposing an amendment. In some cases, that action -- especially if not accompanied by well-drafted irrevocable provisions -- may be viewed as “re-opening the deal” and the other party may then be able to treat the original APS as terminated.
The OREA Standard Form 120 contains an irrevocability clause, which means that the offer to amend is open for acceptance for a certain time period. If the offer to amend is properly accepted during the irrevocable period, the terms of the original APS are amended. If the offer to amend is not accepted during the irrevocable period, the offer to amend is void and the original APS is not changed (by virtue of the wording in that irrevocability clause).
Setting the irrevocable time period in an offer to amend is also very important, especially when the offer to amend is made within the conditional period and when the proposed amendment deals with the conditions. For more details on setting the irrevocable time period and other information on amendments, see “Amending the APS” in the OREApedia section of www.orea.com.
If any questions arise as to the validity of the APS as a result of proposed amendments, the parties should be referred to their lawyers before they even attempt to renegotiate.
An amendment – a change to one or more terms in an agreement – is a tool commonly used in real estate. A latecomer to the transaction, an amendment is proposed after an offer has been accepted and a valid and enforceable agreement of purchase and sale (APS) is already in place. When an amendment is presented, a party to the agreement seeks a change to the original deal -- technically, it is an offer to amend.
Amendments happen on a regular basis and you should be prepared and knowledgeable in dealing with them, according to several REALTORS® interviewed for the EDGE newsletter.
You will likely encounter situations in which one or both parties wish to amend an agreement. However, both sides must still agree in order for an amendment to take effect. If you wish to amend an agreement, it is suggested that you use OREA’s Standard Form 120. When first submitted by one party to the other, this form is an “offer to amend” the signed APS that exists between the parties. As an offer, it is open to acceptance or rejection by the other party. That document also contains an irrevocability clause so that the offer to amend is open for acceptance until a specific time, after which it is void. This form does not, however, void the original APS. It changes the APS to reflect the amendment to which both buyer and seller have agreed. It also specifically confirms that all other terms and conditions of the original APS remain the same.
Amendments are often used to change a closing date or adjust a selling price after an inspection unearths an issue that the buyers feel warrants a lower price, says Nancy Bloom, a Toronto REALTOR® and OREA instructor.
For instance, an inspection may reveal issues with well water quality at a cottage. The buyer still wants the cottage but now needs to spend more money improving water quality, so he proposes to amend the APS to a lower purchase price.
On the other hand, sometimes a seller requests an amendment. She may suddenly realize she wants to keep something -- such as the chandelier in the family room -- but forgot to specify in the APS that this fixture should have been excluded.
An amendment means a change is requested, says Bloom, and it can be used to correct any errors that may have been missed, such as a spelling mistake. However, she has also seen amendments used in transactions when another document might have been more appropriate. “An amendment should not be used to remove a condition,” she says “If a condition is met, a notice of fulfillment should be used. If a condition is not met but the client still wants to proceed with the transaction -- such as when a home inspection reveals deficiencies that the buyer is willing to accept -- a waiver should be used.”
Amendments are sometimes misused when the negotiation is not completed to everyone’s satisfaction at the offer table, in the view of Doug Monett, a Huntsville REALTOR®. “My belief is that if a deal is done right, an amendment is not usually required. However, sometimes an amendment is needed when a deal is going off the rails. It is the document of choice that saves a lot of offers at the eleventh hour.”
Sometimes the bank simply needs more time to get its paperwork in order, says Monett. “Still, the transaction can fall apart right there. That extension has to be agreeable to both sides, and an amendment often does the trick.”
Financing arrangements often lead to proposals for an amendment, says Monett, who is also an OREA instructor. “I’ve had situations where we’re dealing with a mortgage company or working through a mortgage inspection and the buyer needs a few more days beyond the time frame in the condition in the original offer. The only way to achieve that is if the seller agrees. In that case, an amendment is a tool we must use.”
Some years ago, he recalls an offer with a closing date agreed to by both parties, but no-one realized it coincided with a new statutory holiday. “The buyer rep called me back to say the bank would be closed that Monday. I thought he was pulling a fast one until I checked into it. That was the first year Family Day was celebrated in Ontario. We used an amendment to change the closing to Tuesday.”
Monett has also seen amendments used when another document would have been more suitable. “Once in a while, buyer reps produce an amendment when a notice of fulfillment or a waiver would be the better tool. Their intent was clearly to drive down an already-agreed upon price at the last minute by raising an issue ‘discovered’ at the home inspection when the seller and listing rep assumed the negotiations were already complete. This is heavy-handed negotiating, to say the least. I always warn sellers of this slight possibility and prepare them ahead of time with their response. Often the buyers back down because they really wanted the house all along – they’re just trying to squeeze the seller for a better deal.”
Christian Allan, a REALTOR® from Perth, Ontario, says amendments are sometimes sought by buyers who want to re-open a transaction to a lower price. “I’ve worked with amendments quite a bit, and most occur when buyers are trying to renegotiate the price or delete conditions to make the offer more attractive to the seller,” she says.
Amendments are often proposed in real estate, but sometimes they are not the best thing for the deal, says Allan. She was recently involved in a deal in which the APS was accepted by both parties but a small amount of galvanized plumbing was discovered in the basement that she felt a minor repair could fix. “The buyer insisted on a price reduction and wanted an amendment. Sometimes it’s a case of saying to the buyer, ‘You’ve got to be more realistic here’. Buyers sometimes see it as their right to come back with an amendment, whereas sellers are surprised to be asked to renegotiate.”
“If my buyers want to revisit something really small, I try to coach them to reflect on whether that is the right move. I hate to see them go back to the seller to renegotiate an agreed-upon offer over a minor issue. On the flip side, I also coach my sellers that they have the right to refuse that amendment.”
An amendment is not always a simple solution. Clients should be advised to proceed with caution in proposing an amendment. In some cases, that action -- especially if not accompanied by well-drafted irrevocable provisions -- may be viewed as “re-opening the deal” and the other party may then be able to treat the original APS as terminated.
The OREA Standard Form 120 contains an irrevocability clause, which means that the offer to amend is open for acceptance for a certain time period. If the offer to amend is properly accepted during the irrevocable period, the terms of the original APS are amended. If the offer to amend is not accepted during the irrevocable period, the offer to amend is void and the original APS is not changed (by virtue of the wording in that irrevocability clause).
Setting the irrevocable time period in an offer to amend is also very important, especially when the offer to amend is made within the conditional period and when the proposed amendment deals with the conditions. For more details on setting the irrevocable time period and other information on amendments, see “Amending the APS” in the OREApedia section of www.orea.com.
If any questions arise as to the validity of the APS as a result of proposed amendments, the parties should be referred to their lawyers before they even attempt to renegotiate.
Wednesday, October 16, 2013
Preventing Basement Leaks
If you have a basement, or even just a crawlspace, the last thing you want is
water infiltrating the area. Even a minor leak can cause damage to walls
and flooring, and may even lead to mould issues. Here are some
precautions worth taking:
•
• Every spring and fall, check the grading around your home. The ground should gently slope away from the foundation. Pay particular attention to areas where shrubs and other foliage make the grading difficult to see.
• Look for cracks in the foundation. Get them fixed right away. Even a minor crack that doesn't appear to penetrate all the way through can cause problems eventually.
• Check the caulking on basement windows. If it's worn and cracked, it's time for recaulking. The lifespan of most exterior caulking is less than five years.
• Watch the eavestroughs when it rains. (You'll get wet, but it's worth it.) Make sure the water drains well away from the foundation.
• Doing these simple inspections takes just a few minutes. Yet, if they prevent a basement leak, it's time well spent!
• Every spring and fall, check the grading around your home. The ground should gently slope away from the foundation. Pay particular attention to areas where shrubs and other foliage make the grading difficult to see.
• Look for cracks in the foundation. Get them fixed right away. Even a minor crack that doesn't appear to penetrate all the way through can cause problems eventually.
• Check the caulking on basement windows. If it's worn and cracked, it's time for recaulking. The lifespan of most exterior caulking is less than five years.
• Watch the eavestroughs when it rains. (You'll get wet, but it's worth it.) Make sure the water drains well away from the foundation.
• Doing these simple inspections takes just a few minutes. Yet, if they prevent a basement leak, it's time well spent!
Thursday, October 10, 2013
Canada Emerges From “The Housing Market Correction No One Noticed” | Royal LePage
Select the links for more detailed information for your area.
Canada Emerges From “The Housing Market Correction No One Noticed” | Royal LePage
Canada Emerges From “The Housing Market Correction No One Noticed” | Royal LePage
Wednesday, October 09, 2013
How Long Does it Take to Find a New Home?
If you're planning to look for a new home sometime in the future, you
may be wondering how long the process will take. How much time
should you set aside for viewings? How many of the listed homes
should you see?
Of course, the process varies from person to person. According to
the Department of Housing & Urban Development, home buyers view
an average of 15 properties before finally choosing to make an offer
on one of them. That number may be a good benchmark for you.
On a Saturday afternoon, you can comfortably look at three or four
potential properties. You can see more if you want to make a full day
of it.
One factor that impacts the home shopping process is how clearly
you know what you're looking for.
For example, if you're certain you want a three bedroom backsplit,
backing onto a wooded area or ravine, in an upscale neighbourhood,
then the process is going to be fairly simple. You're just going to view
properties that closely meet that criteria.
But if you're the kind of person who simply says, "I'll know it when I
see it", then you'll need to look at several homes on the market. That
means carving out plenty of room in your schedule for viewings.
A good REALTOR can help you understand what's available on the
market and which homes are worth seeing. He or she can also help
you determine how long the process will likely take, and show you
ways to make the process go more quickly and smoothly.
Looking for a great REALTOR? Call Ian today.
Monday, September 09, 2013
Ottawa Real Estate Market on the Up and Up
Courtesy of the Ottawa Real Estate Board
OTTAWA, September 5, 2013 -Members of the Ottawa Real Estate Board sold 1,219 residential
properties in August through the Board’s Multiple Listing Service® system, compared with 1,145 in
August 2012, an increase of 6.5 per cent. The five-year average for August sales is 1,202. “It has been one year since the Canadian Government introduced the new mortgage rules, and although the Ottawa market has been slow moving since the beginning of the year, this month’s numbers are quite
the opposite,” says Tim Lee, President of the Ottawa Real Estate Board. “With both residential and condo units sold up a respectable amount since last year, it breaks the downward cycle. In addition, average sale prices evened out in August, creating a welcomed lull in inflating property prices.”
August’s sales included 272 in the condominium property class, and 947 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties. The average sale price of residential properties, including condominiums,
sold in August in the Ottawa area was $348,519, a slight increase of 0.4 per cent over August 2012. The average sale price for a condominium-class property was $257,494, a decrease of 5.4 per cent over August 2012. The average sale price of a residential class property was $374,663, an increase of 1.8 per cent over August 2012. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have
increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold. “Inventory on hand has decreased since last month, and is starting to return to more normal levels,” says Lee. “Ottawa continues to be a healthy, balanced market, and as always, a great city to live in. With a strengthening economy and historically low interest rates, Ottawa consumers remain in a very enviable position.” Talk to Ian Ponting an Ottawa area REALTOR® today for help with buying and/or selling a home.
properties in August through the Board’s Multiple Listing Service® system, compared with 1,145 in
August 2012, an increase of 6.5 per cent. The five-year average for August sales is 1,202. “It has been one year since the Canadian Government introduced the new mortgage rules, and although the Ottawa market has been slow moving since the beginning of the year, this month’s numbers are quite
the opposite,” says Tim Lee, President of the Ottawa Real Estate Board. “With both residential and condo units sold up a respectable amount since last year, it breaks the downward cycle. In addition, average sale prices evened out in August, creating a welcomed lull in inflating property prices.”
August’s sales included 272 in the condominium property class, and 947 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties. The average sale price of residential properties, including condominiums,
sold in August in the Ottawa area was $348,519, a slight increase of 0.4 per cent over August 2012. The average sale price for a condominium-class property was $257,494, a decrease of 5.4 per cent over August 2012. The average sale price of a residential class property was $374,663, an increase of 1.8 per cent over August 2012. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have
increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold. “Inventory on hand has decreased since last month, and is starting to return to more normal levels,” says Lee. “Ottawa continues to be a healthy, balanced market, and as always, a great city to live in. With a strengthening economy and historically low interest rates, Ottawa consumers remain in a very enviable position.” Talk to Ian Ponting an Ottawa area REALTOR® today for help with buying and/or selling a home.
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