Archives for Realtors

Home-Grown Issues:

The impacts of home-grown marijuana and legalization

Many Canadians are awaiting this July 2018 with much anticipation, as Bill C-45 will allow the legalization of marijuana, including their ability to grow up to 4 plants within their residence. However, without the proper protections and awareness in place this new legislation could cost home owners thousands, or even their mortgage. The increase of private residence grow-ops that will begin following legalization is a major concern for the real estate industry. Experts say that everyone from “buyers, to sellers, to real estate agents, and home inspectors” will be affected by the consequences produced by home grow-ops.

Issues with Home-Grown

There is currently no legal benchmark in the definition of a grow-op. This means, that whether it is a large-scale operation, or a single potted plant, the home is viewed in the same light. Although this doesn’t seem like a big issue to some, the underlying damages that can result from growing marijuana plants within a residence have serious ramifications on insurance, mortgages, and future sales.

Damages and building inspections

The humidity and power required to grow larger quantities of plants can lead to electrical system damages, and mold, fungus, and moisture issues within the home. These issues, and others can completely destroy the framework of the house. Building remediation is not mandated by the province with legalization, and there is no official registry of illegal grow-ops that allow future home buyers to be forewarned of the possible damages and health risks they may encounter.

These damages don’t need to be evident for a home to be labeled a “grow-op”. As there is no “definition” of size to label as a grow op, the house can be stigmatized whether it is one or one hundred plants in the house, in the case of illegal operations. These houses can be heavily damaged, and often covered up to make the home saleable.

“History has shown us that some shady property owners will go to great lengths to hide signs of a former grow operation”Tim Hudak OREA CEO

When it comes to future sales on a home with a grow-op label, evidence shows that these homes sell for less than the surrounding houses, even if the proper repairs have been performed. Legalization including home cultivation can lead to unsuspecting buyers purchasing homes that are damaged, and could leave building inspectors on the hook if any damages are missed prior to purchase. The Ontario Real Estate Association (OREA) is urging policy makers to include protective measures for home buyers, and the future of Ontario’s housing stock.

Marijuana and Mortgages:

As it stands currently, most mortgage lenders have a very conservative approach when in comes to homes where marijuana growth has been present. Typically, traditional mortgage lenders such as banks, will deny the mortgage altogether. This denial is based on the premise of resale value being decreased in homes where cultivation of marijuana has occurred. Without this knowledge, individual’s seeking to purchase a home can run into red-tape when it comes to financing a property once used to grow marijuana, and once legalization is in place – home cultivation can lead to damages in multiple homes and minimize the available houses that will be approved by bank lenders. This results in borrowers needing to use alternative lenders. The process of approval with alternative lenders, especially where growth of marijuana is concerned requires a lot more detailed paperwork, air/mold testing, and typically a case-by-case evaluation of each home to determine approval.

Insurance Policies:

If the home’s status is compromised, then the home becomes more difficult to insure. Without insurance companies who are willing to approve a home insurance policy, the mortgages will be unapproved by default. Because marijuana growth requires a large quantity of electricity, the home is at higher risk of fire. Fire insurance is a mandatory portion in ensuring approval of a mortgage.

It is unclear at this point if insurers will adjust their policies post-legalization to account for these new possibilities. This could mean those who grow within the legal limit are still risking their home coverage to do so. Many insurers are discussing the possibility of introducing policies that allow for home-growing, but it is not yet determined how that may effect a home-owners insurance premiums.

How is Home-Grown going to change Ontario?

Simply put, the ability to grow up to 4 plants legally in ones home could  jeopardize their current mortgage, insurance, and future sale-ability of their home. At this time, there is currently no legislation or protection in place that will guarantee home owners their home value, insurances, or mortgage approvals should they choose to go with the crowd awaiting home-grown this summer. There is certainly a lot to consider when it comes to homes and home-grown this July.

 

Buyers Toolkit – Springtime

Spring is in the air, and the real-estate market is ramping up for the beginning of buyers’ season.  Things tend to move faster in the spring and houses for sale are often sold shortly after they are listed.  As a potential home buyer, it is important to be prepared as possible before you start looking at potential homes – that way, the chance of losing your “dream home” to another buyer is greatly decreased. You may be wondering … “What are some of the important things that can help you stay on-top of, and ahead of this year’s spring market?”  Have no fear, in this toolkit we have everything you need to know, and do, to make the buying experience go smoothly for you!

Your “Tools”-What you want to be prepared with ahead of time:

Mortgage Information & Pre-approval

Find out what mortgage you qualify for, and get your mortgage pre-qualification.  By taking this step you’ll know exactly what you can afford to buy and when you’re ready to make an offer, you can be confident knowing you are staying within your financial boundaries.  A financing condition is pretty standard in an agreement of purchase and sale; after your offer is accepted by the seller the time you have to meet the conditions is best spent finalizing your financing on a specific property rather than starting the approval process.

A Realtor

Although that seems like a no-brainer, making sure you have hired the realtor who is right for you is very important when it comes to purchasing a home.  Do some research, ask questions, interview a few realtors, check online profiles and reviews.  You’ll be spending a lot of time with your real estate agent; make sure you trust them, that they’re knowledgeable and that you’re comfortable with them.  Quick and easy contact with your agent is another key piece when it comes to signing and sealing a deal.

Your List of Needs vs. Wants

Knowing what you’ll need in your future home, and things that you want (your wish-list) is one of the most important aspects when it comes to looking for a new home. Needs are things that you must have in your new home (e.g. minimum number of bedrooms, a yard for the dog, a safe neighbourhood) whereas the wants’ or your “wish-list” are things you don’t necessarily need, but you’d like to have (Example: Granite countertops).  Your “must-have” list will help you rule out homes for sale that aren’t suited for your needs rather than spending valuable time on those that don’t.  This process can also open up your search options if some of the things on your need list actually turn out to be wants.

Pro-Con List

It’s important to keep a list of the pros’ and cons’ of each property that you visit, in order to have a better recollection of the home that is best suited for your family. Remember to check small details in each home, like testing the lights, and plumbing, and make note of the neighbourhood characteristics.

Trust Your Gut

When it comes to knowing what home is the right choice for you, you can use the simple tools listed above to help make an informed decision, however the most important aspect of home-buying is knowing when to trust your gut. The spring market moves quickly, and sometimes being prepared, and trusting your instincts are the two key factors standing between you, and successfully making an offer on your future home in time. If the potential home is in your price range, and has the combination of needs and wants you desire – don’t take the time to sleep on it, or you may lose the opportunity to make an offer. Trust your intuition and keep in close contact with your realtor to have the best support and knowledge while making these decisions.

There are many different aspects that are key elements to finding the right home. Working with your realtor to negotiate for a fair price, finding the neighbourhood you’re comfortable with, and ensuring you have the right credit and down-payment for the home you’re interested in are just some of these factors. The home buying process doesn’t need to be complicated – tool kit in hand, and realtor by your side, will make this spring market a piece of cake for you.

Let us know how we can help!  Contact us info@teamrealty.ca

 

What a difference a day makes!  An extra day in February saw 46 sales on that day (February 29th) as per the Ottawa Real Estate Board’s news release March 3rd.   See the full Ottawa Real Estate market snapshot for February and the full story from the Ottawa Real Estate Board below.

With spring around the corner, we’re starting to see more homes come on the market, if you’re thinking of selling now is a great time to get your home listed with a real estate professional.  While statistics are useful in establishing trends they should not be used as an indicator of an increase or decrease in value of specific properties. If you are curious about the value of your home and/or specific neighbourhood statistics we would be happy to provide you with a no cost no obligation market evaluation of your property.  Contact any one of our 23 offices or email us at info@teamrealty.ca

From the Ottawa Real Estate Board March 3rd, 2016

Extra day in leap year causes jump in sales for February

Members of the Ottawa Real Estate Board sold 911 residential properties in February through the Board’s Multiple Listing Service® system, compared with 850 in February 2015, an increase of 7.2 per cent. The five-year average for February sales is 908.

“Although the weather was very unpredictable this month, with many highs and lows and several winter storms, the Ottawa resale market only saw activity pick up,” says President of the Ottawa Real Estate Board, Shane Silva. “Residential and condo sales combined increased by 52.3 per cent since last month. However, we need to factor in the leap year, which added an extra day to the month of February, and 46 sales on that day.”

February’s sales included 199 in the condominium property class, and 712 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.

“In February, 2,312 homes were listed, up 26.6 per cent since January, and inventory on hand at the end of February rose by 10.7 per cent since January,” says Silva. “We’re starting to see more homes coming onto the market in preparation for the busy spring selling season. If you’re thinking of putting your home on the market, this is a great time to do so.”

The average sale price of a residential-class property sold in February in the Ottawa area was $384,632, an increase of 1.2 per cent over February 2015. The average sale price for a condominium-class property was $249,727, a decrease of 6.8 per cent over February 2015. 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.

“The highest concentration of properties sold continues to be in the $300,000 to $400,000 price range, followed by the $200,000 to $300,000 range,” says Silva. “These price ranges continue to have the highest concentration of properties sold – residential and condo – while two-storey, bungalow, and one-level condos have the highest concentration of buyers. In addition to residential and condominium sales, OREB Members assisted clients with renting 414 properties since the beginning of the year.”

Feb 2016 Statistics Info Graphic-final

The post Real Estate Snapshot February 2016 appeared first on Team Realty.

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At Royal LePage Team Realty helping YOU is what we do and we couldn’t do that without a dedicated network of real estate professionals.  We would like to take this opportunity to congratulate our 2015 Award winners and thank them for their hard work and dedication.  We are so proud to work with those who consistently go above and beyond to ensure their clients are provided with excellent real estate service.

Looking forward to an awesome 2016!

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The post Congratulations to our Award Winners appeared first on Team Realty.

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Mild weather and post-election enthusiasm spurs on home buyers!

 

Statistics are useful in establishing trends but should not be used as an indicator of an increase or decrease in value of specific properties. If you are curious about the value of your home and/or specific neighbourhood statistics we would love to help. Contact us.

 

 

December 2015 Market update graphic-Team

 

 

Information below provided by the Ottawa Real Estate Board December 3rd, 2015

Members of the Ottawa Real Estate Board sold 990 residential properties in November through the Board’s Multiple Listing Service® System, compared with 891 in November 2014, an increase of 11.1 per cent. The five-year average for November sales is 944.

“Mild temperatures in November, combined with increased activity post-election, were key factors in the Ottawa resale market performing exceptionally well in November,” says David Oikle, President of the Ottawa Real Estate Board. “The positive increase in condo sales may be explained by buyers moving to Ottawa to accept positions with the new government. There may have also been some pent up demand of people who chose to sit on the sidelines until after the election was over.”

November’s sales included 199 in the condominium property class, and 791 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked 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 condo market has picked back up over the past few months – a very positive change from the first half of the year, and now year-to-date condo sales have surpassed the numbers of units sold in 2014,” says Oikle. “Inventory levels are balancing out, cumulative days on market increased to 104 days, and average residential sale prices remain steady. This is very typical of a market that’s heading into the winter season.”

The average sale price of a residential-class property sold in November in the Ottawa area was $380,761, a decrease of 0.4 per cent over November 2014. The average sale price for a condominium-class property was $275,332, an increase of 9.9 per cent over November 2014. 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.

“The highest concentration of properties sold remains in the $300,000 to $400,000 price range, followed very closely – behind by only 26 properties – the $200,000 to $300,000 range,” says Oikle. “In addition to residential and condominium sales, OREB members assisted clients with renting 247 properties in November, and over 2,800 since the beginning of the year.”

Source: Blog