The Bower Blog

The Night the Lights Went Out

The (incredibly loud, laughing) lasses and their significant others met at my condo at 1050 The Queensway last night.  You know, it was really relaxing and really fun but I have to tell you, not nearly as dramatic a shut down of the city lights at 8:30 p.m. that I thought it would be. The papers all said today it doubled last years kilo-mega-watt-whatever thing but the only significant thing I noticed from our balcony was the CN tower have less lights than usual.  Interesting.  I expected to see this great shut down across the entire city and barely a blip.  Cineplex Odeon shut down the Cineplex part so it just said Odeon, but that was about 20 minutes into the "event".  Oh well.  Better late than never.  We had painted a picture of some guy running around the movie theatre looking for the electrical panel and mistakedly turning off movies instead.  It became quite a hilarious skit thinking about it.  I finally booted everyone out around midnight and today I openly apologize to my upstairs, downstairs and sideways neighbours for our frivolity.  We are a fun group, laugh a lot and needed the break-we've been working really hard.  Next year; somewhere in Scarborough!

Earth Hour March 28, 2009

On March 28, lights around the world will be turned off as over 2,700 cities representing 83 countries celebrate EARTH HOUR 2009. It is estimated that over 1 billion people worldwide will participate in this global initiative organized by World Wildlife Fund International. That evening, from 8.30 pm to 9.30 pm, homes and businesses around the world, including TREB, will turn out their lights in a symbolic gesture to combat climate change.

TREB is encouraging all offices and Members to participate in Earth Hour.

Most municipalities around the GTA will be participating in Earth Hour and many have planned special events to mark the occasion. For information on events in your area, check your local newspaper or go to http://wwf.ca/earthhour/

Why Realtors are Valuable

I have had a relatively good start to the year in sales; when the global uncertainty hit back in October, there was a lot of fear with both buyers, seller and us realtors.  Uncertainty breeds that; not knowing if you will have job security, wondering if the sky is going to fall and real estate goes to hell in a handbasket, etc.  As a result of this, most of us were quite slow in our sales in November and December.  Coincidently, this is when we are usually slow-people wind down and start to think about Christmas, Hanakah and the holidays. 

So when January came around and despite negative media attention to the economy, the sales slowly started to trickle in again.  By March, I have been run off my feet.  What happened?  Why the turnaround?  You can even see it when you are driving around; instead of sad flapping FOR SALE signs, we see, SOLD, SOLD, SOLD.  I think what happened are a number of things:

1. we have record low interest rates; my friend, Dianne Chafe of Oriana Financial (www.OrianaFinancial.com ) sent an interesting little ditty to our emails last week.  If you have a mortgage of $500,000.00 on last year's rates: (about 5.99% at one point), the monthly is:  $3,200.00.

If you buy a new home and your mortgage is $600,000.00, your monthly is (currently 3.99% for 5 years): $3,156.00 (less than a year ago!!)

Great news for trade-up buyers!

The other thing that has happened is a transition from a seller's market to a balanced or leaning toward a buyer market.  Make no mistake, there are still multiple bids in key areas of the city.  I have been on 4 offer presentations lately and all had more than one offer. We are not seeing the crazy escalations above the list price (in my case, some were only $3,000 to $5,000 over the asking price). 

The combination of above is a wonderful opportunity for our key people, our first time buyers to enter the marketplace.  When the first-timers come in, it allows this movement, trade up, trade down, go to an assisted living facility.  It's a wonderful circle.

Why are we valuable?  We can advise people of the wonderful opportunities out there; but most importantly, for me, we are in this intense contractual relationship with our buyers and sellers for a few weeks or months.  Shouldn't we as agents, all feel a sense of responsibility in counselling these important people?  Our job is not over after the sale; we owe it to these folks to help up to and including the day of closing....and beyond.

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

Countdown to Earth Hour

Last year a group of girl pals and our significant others met at Laura's for the inaugeral first year of Canada's Earth Hour.  The hype beforehand was staggering and we decided to make quite a night of it.  Since it was my brainchild, I made the main course while everyone else brought pot luck additions.  At around 8:20, we started to count down.....30, 29, 28...finally to zero when all the lights went out and we were bathed in candlelight.  We ended up chatting that way until well past 11 p.m. when we said our good-byes. 

I own a condo at Queensway and Islington.  The views are captivating; south, an expansive view of Etobicoke and Lake Ontario; the west terrace, full on view of Mississauga and Oakville; the south-east views, full on of the City of Toronto, downtown view.  Rob and I are downsizing this condo and it has been sold but not before Earth Hour on March 28.  I've invited everyone over and we are going to watch our entire city shut down at 8:30 p.m.  Can you imagine anything more beautiful?  I can't.

Spanish paella, and middle Eastern fare is on the menu; that, coupled with lots of wine, candles and lichee martinees....too much fun.  There is a huge environmental impact with these events; they are world-wide, however to be frank, I am in it for the social, fun aspect of it all.  My girlfriends and I work really hard, even harder now that times are different than before...we need a break and we need to see each other to re-connect.  For me, that's what Earth Hour is all about-community.

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

Energy Audits for the Home

One of the neat and great things about Facebook is the connection we have to old friends from High School, Public School and our neighbourhood.  Recently I reconnected with a neighbour from my street in Etobicoke.  Bill was a few years older than I was and had a lot of knowledge, well, about almost everything.  In conversation on Facebook, I have discovered Bill is an advisor for the EcoEnergy Program.  I asked him for his take on the new energy audits being legislated for homeowners.  Here is my friend Bill's take on it:

Subject: Energy Audits

Energy Audits:  They will be mandatory in two years and will be the responsibility of the seller.  There will not be a requirement for the seller or the buyer to carry out any recommended energy improvements but the incentives will be available to both.  Currently the timeline is a maximum of 18 months from the time of the first evaluation to complete the work and have a  follow-up evaluation to apply for grants.
For my part, I think that this can benefit the buyer a great deal when purchasing a home.  I've seen many cases where unexpectedly high energy costs were unclear at the time of purchase and became too high to for people to manage.  In extreme cases, it has forced the homeowner to sell. 
As an Energy Advisor certified by Natural Resources Canada, I'm convinced that there is no better investment than upgrades to the energy efficiency of homes.  They continue to return real value for many years.  Making audits mandatory may be effective in forcing the public to learn this.  At present, most of my clients are positive and willing to carry out much of what is recommended to them.  I'm worried, however, that we will be dealing with a large number of clients that are annoyed at the need to spend more money and time to sell their homes and will simply cast aside the report and go on with the sale without making any improvements.

Read this article that speaks to the many positive aspects of this new initiative: 

www.yorkregion.com%2Farticle%2F88916.

Bill Oates

 

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

The GEESE are home; therefore, I declare, SPRING has arrived!

I saw them, those messy things that leave doo all over parks and take a run at you if they are angry.  They are however, my sign that Spring is around the corner.  Of course I'm talking about geese.  The beautiful V-formations travelled over me on 3 occasions this weekend while driving along the Gardiner Expressway.  That sight is spectacular.

The other reason I know IT is coming is that the area around Bayview and Eglinton, my  ole' stompin' ground, is flooded with walkers and stroller moms and joggers and well, people (and dogs).  It's difficult to dodge your car around the people even if you have the right of way, which apparently is never when you are a driver.They look at you as if you have done extreme ecological harm to the environment because today..you had to drive.  I am not a great driver.  The nickname in the family is Crash Junior (my dad was Crash Senior) however I do drive slowly which annoys the rage-a-holics and I am careful around people.  The area I fall down in when driving is stationary objects like posts and walls-very poor vision in this case.  In the past my bumped up car was a testament.  Right now, there are bumps but they were obtained by people who decided to hit me, then run away.  Oh, well...I'm alive to tell the tale. 

I'm cautiously optimistic but I do believe....SPRING has arrived!

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

Glass Half Full

I'm a glass half full kinda gal; always have been and I guess since I'm now in my 50's, probably always will be.  I believe that when dealt a lemon, make lemonade. 

It interests me that as of late, the press is looking for those big stories that sell newspapers and blanket us with negative thoughts.  Take for example The Toronto Star.  Recently Tony Wong posted an article from a broker in my industry saying that he was downsizing his company because of the recession and a lot of his sales representatives had left for bigger companies.  In my estimation, the best thing someone can do is to solicit more agents to join you not less; don't downsize, expand, for heavens sake. 

Smaller brokerages do not have a better chance of surviving in this new market unless they're selling   a lot of houses.The posted statistics of his brokerage showed his agents are "not" selling a lot of houses.  Given the small profit margin that is typical in real estate brokerages and given the generous packages they have to offer the agents to retain them, this formula is not designed to make money.

I am not a fan of the how big my company has become; it's lost the family-ness I experienced in 1990 when I joined RE/MAX from another company; however, I feel very secure in my organization because we have attracted the cream of the crop. Educational opportunities, coupled with a great group of people make a great company, a sustainable company, plus I know my Brokers will always keep our company monetarily safe. The more signs my company has, the easier my presentations to buyers and sellers are.  Reason?  Market Share.  At some point, I believe we will have 50%-55% of the market in Central East Toronto.  That's a lot of business.  We already exceed 40%.

I guess the good thing about negative thinkers are they eventually burn themselves out, leave the business and the strong survive.  In 1991-1994, the realtor "population went from around 30,000 to 17,000.  That's good; it shows the strongest surviving and the part-time agents or people not cutting the mustard, getting out.

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

 

The Stars are Aligned-there is no better time to buy Real Estate than now!

This wonderful exert from Paul Meredith (Citycan Financial) www.Citycan.com

Since the drop of 50 basis points (1/2%)to the prime rate by the Bank of Canada last week, we have seen virtually every lender adapt this change by lowering their prime rates to a new record low of 2.5%. 

  The next Bank of Canada rate announcement is set for April 21st, where a cut of another 25 basis points is expected.   This will most likely be the final cut, after all, anymore cuts and they would be paying us to take mortgages!   Anyone with a 'prime minus' variable rate should have a very large smile on their face :)   The prime rate is then expected to remain relatively stable for the remainder of the year. 

As of today, we are starting to see some downward movement on fixed rates.    The lowest available 5 year fixed rate now  is 4.19% (30 day quick close)  and the one year fixed as dropped to 3.25%!     Will the fixed rates come down further than this?  We will have to wait and see.  

 

With mortgage rates this low, and with the fallen prices of  homes, there has never been a better time in history to buy real estate then right now.   This is a time that anyone in this business should be excited about.  Encourage people to pull the buying trigger based on mortgage rate, market inventory and price.   Even if homes depreciate another 3% for the year, the amount they end up saving at todays interest rate more than makes up for it!   

Last year at this time, the lowest 5 year fixed rate was 5.99%..... a 1.8% difference from the lowest rate today.   Here is an analogy you can give your prospective buyers:   A $300k mortgage at 5.99% amortized over 25 years would have a monthly payment of $1,917.   The same mortgage at 4.19% would have a monthly payment of $1,609..... a difference of $308!   Multiply that difference over the 5 year term and you have saved $18,480.   That's $18,400 that stays in your pocket as opposed to going into the banks.  

 

Today's lowest rates:

1 year fixed 3.25%

2 year fixed 3.99%

3 year fixed 3.99%

4 year fixed  4.25%

5 year fixed  4.34%

5 year fixed 4.19%  (30 day quick close)

 

Paul Meredith

 

 

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

Biggest Complaint at The Toronto Real Estate Board?

The number one call to the Toronto Real Estate Board is "How do I get out of my contract with my existing agent?"  That is a sad commentary on our profession, don't you think?  It may be like that in other businesses with poor service, but nowhere is it as blatant as ours.  Let me explain.

As realtors, we are hired for a service for a comission; this comission is payable upon the "delivery of the service".  In other words, when we complete the job we were hired to do, we get paid. If we spend money on marketing and the property does not sell, we don't get paid. Consequently  a number of factors contribute to our receiving a paycheque.

1.  Doing the research necessary to ascertain the price of a seller's home.  This means an analysis of comparable homes and descriptions.  It means determining fair market value for that home and doing the necessary due dillegence in determining that.

2.  We prepare a contract with all the necessary details about the home; lot size, room sizes, lot and plan number, area codes, descriptions, extras.....etc. etc.

3.  We market the home: in my estimation next to pricing, this is the most important thing we do.  We owe it to our clients to offer suggestions on how to present their home, have professional photographs taken, prepare 'take-away' feature sheets highlighting their home and making sure there is an internet presence.

I often wonder what the counsel is of the Toronto Real Estate Board when these calls come in.  I believe a solution could be something I've offered for years; a cancellation contract.  This contract states that in the event the seller was unhappy in any way, that I would cancel the listing.  Clients have asked me before why I offer this and I state simply that I stand behind every promise I make when taking a listing, I believe customer service to be of paramount importance and I am proud of the marketing I do.  As a result, I take pride in my service.  Maybe that is the solution...we do what we say we're going to do and not pay lip service to it.

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

Price Point- Important in this Buyer's Market

So, what's moving in Toronto?  The magical price point of condominiums is $170,000.00 to $280,000.00 (depending on size). One bedroom condo units sit longer, while the 1 bedroom plus den and two bedroom units are flying off the shelf.  The demographic is about 75% new home buyer with an age group from 24 to 35.  The rest of the condos being purchased are by the empty nesters, single professionals and seniors downsizing.

The price point of housing resales that are popular and have a "shelf life" of about 2 weeks range from $350,000.00 to $600,000.00.  Some areas of the city are still seeing multiple bids; Riverdale, East York, The Beaches, Upper Beaches, Bloor West Village, Central Toronto (if you can find that price) and Cabbagetown.  I was on an offer Friday; there were 26 showings booked on this place; we got it because we were second offer in and had moved quickly.  The property had been on the market 2 days when the deal was finalized on Friday.  The good news for the buyer was, there were not 15 offers on the table like in the past and home inspection/finance clauses are kept in the offers.  These clauses protect our buyers when purchasing the biggest investment in their life.

The great thing about the conditions right now in our city is, a softening of prices and record-breaking interest rates.  I counsel my buyers to not focus too much on the price of the home (provided they qualify for the range I am showing them).  It's better to see what these rate reductions will provide them on a monthly basis.  I'm on a variable rate; it is 2.5% right now.  Boy, does that feel good!

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.