Jeff Stern's Blog

Government of Canada announces changes to mortgage lending Effective March 18, 2011

2011-01-17T14:13:00.001-06:00

Today, the Government of Canada announced new mortgage lending regulations that will affect every home owner or potential future home buyer. There are 3 main changes namely,

Mortgage amortization will be reduced to 30yrs from the current 35yrs.
The maximum borrowed to refinance a mortgage will be lowered to 85%. Currently it is 90%.
The government will withdraw its insurance backing on secured lines of credit, such as home equity lines.

In essence, these changes likely will not have any effect on home buyers in the Winnipeg area, however can affect those looking to refinance their existing mortgage.

For further information on hoe this may affect you, please call me at 204.946.5333 oe email BloggerHelp@jeffstern.com

Lets Pay Our Fair Share Of Property Taxes

2011-01-14T12:25:00.000-06:00

It is nice that Mr. Katz is seeking another tax freeze but if costs are increasing in one area of infrastructure, another area will likely "feel the squeeze". As a homeowner and I am pleased that our properties are increasing in value after so many years lagging behind National averages. What I do not understand is why our property taxes are tied to the assessed value (the City of Winnipeg's opinion of Market Value) rather than the actual cost that the homes and commercial properties in their catchment utilize in comparison to other area's.

Why is it that the property owner is even likely penalized for maintaining their property therefore increasing the demand (which is the driver of market value) increasing their assessed value when they may not even be using the same percentage of infrastructure costs than another area. As an example, older areas have a back lane that adds additional cost to snow clearing and road repairs versus a newer community that does not. Areas of high appeal/demand as an example, likely do not have the same emergency services costs and yet pay more in taxes towards the costs supporting a higher demand area. There are property owners that do not even have children so they do not use the schools or community centre's but must still contribute!

Why not apply the property taxes on a user-fee basis so that actual use results in a fairer charge-back? Just because one home owner's property is worth more, does not necessarily mean that they earn more income (take senior citizens for an example who are on fixed income) so may not be in a financial position to "carry more of the load" as the system currently works. How much could we save in tax dollars by reducing the assessment department overhead?

Perhaps simply charging by frontage foot (times 2 if a back lane) and then dividing the use versus cost of City services by area using the voting constituency map is fairer than by assessed value as when looking at the assessment website they calculate lot square footage not frontage however the frontage is on the tax bill so the city already has that data and the frontage reflect the actual cost of road maintenance and snow clearing.

Isn't it time for our property taxation system to be more fair?

2011-01-06T12:00:00.000-06:00

In an era of online socializing, keeping your information safe is a full-time task. Here is something I learned from a friend of mine,Lesley Wagstaff, a fellow REALTOR® in B.C. (Thanks Lesly!) NEW PRIVACY setting called "Instant Personalization" that shares data with non-Facebook websites and it is automatically set to "Enable." Go to Account(top right) >Privacy Settings > Applications and Websites >Instant Personalization > Edit Settings, and un-check "Enable" (bottom of pg)BTW if your friends don't do this, they will be sharing info about YOU. PLEASE COPY & REPOST

Competion Bureau and Canadian Real Estate (CREA) - What Does The New Agreement Mean To You As A Home Buyer or Home Seller???

2010-12-23T10:56:00.000-06:00

Now that the media buzz has dwindled, as a home buyer or home seller, what does the agreement between The Canadian Real Estate Association and the Canadian Competition Bureau mean to you?

Please let me first state that this is my own personal feeling and not necessarily that of the government, my colleagues or The Canadian Real Estate Association (CREA).

Competition was and now is definitely alive and well in the real estate industry, at least it always was in Winnipeg, Manitoba. In fact the issues that arose 30 years ago and in recent years were in Ontario and Alberta. Winnipeg's real estate agents always offered a varied menu of services and real estate commissions have been negotiable for 3 decades so the agreement that transpired between CREA and the government in October 2010 really does not impact the way buyers and sellers in our province can obtain Professional Representation.

The biggest change in Manitoba from this agreement is that a seller and their respective Broker, can instruct a buyer agent to contact the seller directly to make an appointment to show their home and even present offers directly to the seller. In fact up until the mid-1990's agents had at times instructed to contact the seller to book appointments - so nothing new there!

As for direct presentation of offers, time will tell how many sellers will want to go this route as the Offer To Purchase is a complex document and requires care and skill in not only preparation, but in consideration before an acceptance otherwise problems can occur. Yes, a lawyer can review an offer before it becomes final and binding, and there are instances where that is definitely a good idea such as in the case of an estate, but in more common transactions, REALTOR's® are well trained on the completion and presentation of this document that having a lawyer review it can "disrupt the apple cart" as negotiation is an emotional process that requires continuity to keep the parties moving forward to an agreement.

As a buyer agent, I personally see concerns for my client buyer dealing directly with the seller (known as mere postings, not having their REALTOR® present or even having a broker represent them - known as an unrepresented Seller) as the seller is not regulated by the Manitoba Securities Commission, only licensees (real estate agents and brokers are) so not bound by the same regulatory demands which can cause chaos. Imagine if a buyer agent is told that multiple offers are present, with REALTOR's®, we are bound to follow a Multiple Offer Protocol (a set of guidelines that I proudly was involved on the taskforce to present to the Registrar of the Manitoba Securities Commission) that ensures that there is a level of transparency for the competing buyers so that there is a level playing field.

I will add more thoughts on this as time goes on, so please check back. Your comments and questions are most appreciated so please either call 204-946-5333 or email me at BloggerHelp@jeffstern.com.

For more helpful tips, please visit http://www.jeffstern.com/ and http://www.freewinnipeghomeinformation.com/, email: BloggerHelp@jeffstern.com or call 946-5333.

I have heard that if you make your offer subject to an inspection, you have no chance of winning a bidding war. Is that true?

2010-03-06T15:51:00.002-06:00

In most cases, you will not win a bidding war if you make your offer subject to an inspection. This is the case even when the sellers have nothing to fear from an inspection.

To understand this, look at it from the home sellers’ point of view. Let’s say they are looking at four offers. Three of them have no inspection as a condition of the sale while one has included an inspection as a condition of the sale. If the offers are similar, the one with inspection attached will be the first one rejected, even if their home is in immaculate shape.

That is because inspections have been used by buyers to get out of an offer. The home sellers fear that the buyers may “cool off” on the home by the time the inspection is done. They may even find another home they like better. As well, with any condition such as this if the buyer decides not to proceed the seller loses the sale and then is left to return to the market with hopes of an equal or better offer.

The offers without inspections are viewed as “solid”. The one with the inspection is only “possible”. To win this particular bidding war, the offer with the inspection would have to be for significantly more money than the other offers. Offering “significantly” more money for a home is not a strategy to avoid overpaying.

But this does not mean you have to make an offer without an inspection. This can be dangerous. A home is a big investment. You should have it checked out by an qualified inspector before you make an offer. This as well will provide you with the confidence that other buyers won't have being that you had performed due diligence and now have comfort of knowing the status of the home.

Your REALTOR® can explain how to get this done before the offers are made. In this way, you can be protected and still compete on an equal basis with other buyers. If you would like to have a FREE Report on knowing how to select the right Home Inspector, please email your request and include the following:

In the subject line, specify the FREE Report: Choosing a Home Inspector
Your name
Full mailing address
Phone number

to FreeBloggerReport@jeffstern.com

For more helpful tips, please visit http://www.jeffstern.com/ and http://www.freewinnipeghomeinformation.com/, email: BloggerHelp@jeffstern.com or call 946-5333.

Can I win a bidding war even if someone offers more money than me?

2010-03-02T16:07:00.000-06:00

Yes. Price alone is not the determining factor for sellers when they select a specific offer. The offer that is for the most money is not always chosen by the seller.

There are various strategies to make your offer more attractive to a seller even if you don’t offer the most money. Your REALTOR® can guide you through these strategies to determine which ones would work for you.

For more helpful tips, please visit http://www.jeffstern.com/ and http://www.freewinnipeghomeinformation.com/, email: BloggerHelp@jeffstern.com or call 946-5333.

How can I win a bidding war without paying too much for a home?

2010-02-21T22:49:00.001-06:00

Your REALTOR® can help you determine the market value of any home by researching the selling prices for homes that have been on the market recently. Knowing the selling prices of homes you have viewed will also help you understand what you can get and what you can’t get for the amount of money you want to spend. Your REALTOR® can set up it up so that you will be notified when these homes sell, along with the selling price. This will empower you to be knowledgeable of the prices of homes in your interested areas and criteria allowing you to make an informed decision on the maximum price you would pay for a home rather than feeling any "pressure" to pay more than you are comfortable with or that a home should reasonably sell for.

For more helpful tips, please visit http://www.jeffstern.com/ and http://www.freewinnipeghomeinformation.com/, email: BloggerHelp@jeffstern.com or call 946-5333.

How do I know what to offer if I get involved in a bidding war?

2010-02-14T01:29:00.003-06:00

Before you write an offer, you should get an idea of the market value of the home. Your REALTOR® can do some research for you. This will give you the selling prices of similar homes.

It is also important to know how many offers are being made for a particular home. A house that receives eight offers will sell for more than a house that receives two offers. Your REALTOR® will be able to inform you of recent comparable sales and current available homes.

In doing so, your REALTOR® will be able to give you a “ball park” figure of how much money is required to purchase a certain home. This figure will be based on the list price of the home itself, the condition of the home, the prices of comparable homes, and the number of offers received. It is then up to you, as a buyer to decide how you will offer.

This decision, although not an easy one, can be one that you make with the proper information so that you can be comfortable with the final selling price whether or not you are the successful buyer. This would result in no buyer remorse.

For more helpful tips, please visit http://www.jeffstern.com/ and http://www.freewinnipeghomeinformation.com/, email: BloggerHelp@jeffstern.com or call 946-5333.

How can I avoid a bidding war when buying a home?

2010-02-08T22:55:00.004-06:00

There are a few strategies that will enable you to buy a home without getting into a bidding war. The simplest strategy is for a buyers’ REALTOR® to find out if there are other offers being presented for a particular home. If there are competing offers, the buyers who do not want to compete will simply look for a different home.
Typically the bidding war occurs on the first day homeowners are accepting offers. If the home doesn’t sell on that day, there is an opportunity to negotiate on a one to one basis. Some people who wish to avoid bidding wars only look at homes that are still on the market after the initial date set for viewing offers.

There are some types of homes that do not usually involve multiple offers and bidding wars. Your REALTOR® can identify these types of homes for you.

For helpful tips, please visit JeffStern.com and FreeWinnipegHomeInfo.com or contact me at 204-946-5333 or BloggerHelp@jeffstern.com

Can I buy a home without getting into a bidding war?

2010-01-31T22:39:00.008-06:00

While bidding wars have becoming commonplace in Winnipeg, they do not occur when every home is sold. There are many homes being sold that are negotiated between one buyer and the home seller.

The likelihood of a bidding war seem more prevalent on homes in the price range of the first-time buyer, currently in the range of $140,000 - $250,000 however, as mentioned in the above paragraph not all homes in this range will result in this.

Bidding wars generally occur when the asking price is in-line with the other competitive homes that other buyers would consider, but if the asking price on a particular home is higher (or possibly even lower) than the attractive price point that other homes asking, that particular home, even if it was the intent of the seller, may only garner one offer or even no offer.

When only one or even no offer surfaces on the "offer date", the next few days following that date are crucial to the likelihood of more than one offer ever happening. With proper consulting by a REALTOR® a wanting buyer can strategize for presenting the seller with an offer that they would consider.

For helpful tips, please visit http://www.jeffstern.com/ and http://www.freewinnipeghomeinfo.com/ or contact me at 204-946-5333 or BloggerHelp@jeffstern.com

Bidding Wars in Winnipeg

2010-01-24T12:42:00.008-06:00

Bidding Wars (also referred to as Multiple-Offers) have been a love-hate issue in the Winnipeg Manitoba real estate MLS market for a many years now. This post should clear up the confusion.

For home sellers, these bidding wars have been a real treat, and for home buyers, this can create fear and confusion.

Frequently, I hear home buyers getting mis-information causing them undue stress, that I will address in the coming posts, helpful information to assist in enjoying the home-buying process.

For this post I will address How bidding wars work. Bidding wars occur when more than one offer is received on a home. Potential buyers write up their offer and put it into a sealed envelope. The home owners’ REALTOR® will collect the offers and meet with the owners. Each offer is opened, reviewed and the winning one is chosen by the sellers.

In dealing with multiple offers, the seller has the right to see all offers before deciding what offer (or offers) they wish to consider. Their REALTOR® in many cases are asked advice on how to consider these offers and in giving advice, the seller is generally looking at the most money, however that does not necessarily mean that the seller will accept the highest offer, there are many other considerations such as the terms e.g. possession date, included items such as appliances or even conditions such as the buyer obtaining financing approval or even home inspection.

The seller can, through their REALTOR® communicate with the potential buyers REALTOR® while not disclosing terms of the other offers in consideration as to whether or not their buyer is willing to make any changes to their offer prior to final consideration by the seller, or the seller may respond to one of the offers with a Counter Offer (Offer To Sell) and give a deadline to accept otherwise rendering that particular offer as rejected.

Many buyers I have spoken with over the years (and some sellers) were of the false impression that the seller can only look at one offer at a time and either accept, counter or reject before looking at another, which is not the case. The seller may look at all offers and their REALTOR® must make the seller aware of all offers and cannot divulge the terms of one offer to another party. Only the seller knows the contents of all the offers that are presented.

The seller's REALTOR is bound by this rule, a rule in place and strictly enforced by The Winnipeg Real Estate Board (also known as WinnipegREALTORS), The Manitoba Real Estate Association and the Manitoba Securities Commission, whether or not the home was marketed on the MLS (Multiple Listing Service) or an exclusive listing, not published on the MLS.

Future posts will cover other questions such as:
- Can I buy a home without getting into a bidding war?
- How can I avoid a bidding war when buying a home?
- How do I know what to offer if I get involved in a bidding war?
- Can I win a bidding war even if someone offers more money than me?
- I have heard that if you make your offer subject to an inspection, you have no chance of winning a bidding war. Is that true?

Many tips for home buyers and home sellers can also be found on my personal website: http://www.jeffstern.com/and as well http://www.freewinnipeghomeinfo.com/ or you can email your questions to BloggerHelp@jeffstern.com or by calling 204.946.5333