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Archive for the ‘Uncategorized’ Category

Market Moderation – Solid Returns Continue

Posted on: December 12th,2018 By Rod Friesen

As the market balanced, the media focused on the negative stories about real estate. It’s nothing new.  Looking ahead, CREA forecast that the national average price will increase by 2.7% to $508,400 in 2019. This outlook reflects modest average price growth in several provinces and the return of the normal seasonal patter for sales and average prices in other provinces. 

The media is presenting this as an awful. But let’s pause for second. A 2.7% gain on a relatively risk free investment, that you can live in and build equity on, is fantastic. Especially considering that most of us don’t buy homes with cash, we use a down payment. We ‘leverage’. 

Let’s say a homes average price only increased by 2% a year.

A $50,000 down payment on a $500,000 homes that grows at 2% a year delivers an annual gain of $10,000 because of leverage. That’s a 20%  return on the downpayment. As you move up, a $300,000 down payment on a million dollar home at 2% growth delvers $20,000, still a 6.5% gain.

Return on investment is the bonus of home ownership. With the Bank of Canada nudging it’s key rate up to 1.75% on Sept. 24, some expect rising interest rates will hold price gains in check. Plus, there is long term equity growth from the amortizing a mortgage, even if there’s only a modest inflation of prices. There is no amortization from rent cheques. 

Like at investment, buying or selling decisions want solid information, good plans and terrific representation. A solid negotiator. Smart marketer. Just a phone call away. 

Instant Market Snapshot

Posted on: August 4th,2016 By Rod Friesen

Instant Market Snapshot
  • View recent sold prices
  • Average asking prices
  • How fast are homes selling
  • Is it a buyers or sellers market

Vacant Possession of a Foreclosure – They’re still here!

Posted on: December 19th,2014 By Rod Friesen

Just a quick thought, as recently I have had a few experiences where the owner living in the home has been foreclosed on and once the property sells they do not move out on time. I was surprised to learn the process can take up to 3 weeks to get the person removed from the home.

The police cannot do anything about it. The process is to go back to the lawyer for the lender who foreclosed on the property and have them file for a writ of possession. They are then in a position to get a sheriff and/or a bailiff involved to evict the person living there.

I have had 2 recently where the day of possession came and the new owners were greeted with people living in their home and refusing to leave. You would think with a moving truck in tow and a court order granting ownership of the property to the new owners that the police would be able to evict the person living there for trespassing. Not the case (although, I still do not understand why).

With that said, there are ways to ensure this does not happen to you. You can have the lawyer for the lender file a writ of assistance on the day the court approves the sale. This does allow the police to assist. I have yet to see a lawyer do this, but it is an option.

It is a sad thing to see a family trying to move into their new home with kids, dogs, movers etc… waiting to go in, only to have someone deciding they are going to trespass.

Can your real estate agent trust you?

Posted on: March 5th,2014 By Rod Friesen

Realtors are generally normal people with kids, lawns that need to be cut, golden retrievers and mortgages just like you.

They have chosen a difficult but rewarding career.

Difficult because they are expected to always be on call and work many days of the week totally unpaid, willingly offering free advice and showing properties to folks who don’t buy.

Difficult because of the mountains of legislation and legal updates they need to be aware of so they don’t get sued while navigating a normal working day in the real estate business.

A trusted agent will jump on-line or step away from a turkey dinner with all the fixins’ to answer your question on the phone about the size of a second bedroom.

Don’t break your agent’s heart by being disloyal

You used good judgement in choosing your agent and you have promised to communicate all your thoughts, ideas and questions to them as you navigate this process together.

Believe it or not you have to trust each other through over 200 steps in a normal real estate transaction.

Great agents live by their positive reputation. Don’t worry.
Pushing you to sell your home for under market value or not representing your interests is not
beneficial to their long term careers in any way.

Allow yourself to trust your agent and stick with them through the ups and downs that always happen in the market.

This will go a long ways towards your agent trusting you.

It’s just human nature

A great agent that trusts you completely will always go the extra mile.

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