Tip for sellers…don’t roadblock the path to a Sale
It boggles my mind how many times I run into situations where sellers or their respective agents set up road blocks in marketing their home.
I’ll give you an example of a recent run-in.
My clients were a professional couple with 4 lovely children that were residing in a 4 bedroom home. One of their primary reasons for considering a move was the desire to upgrade into a 5 bedroom home. The availability of 5 bedroom homes in Vaughan (and specifically in the Woodbridge area) was quite limited at the time of our search. Most of the 5 bedroom homes that were available were part of larger estate properties or quite simply beyond my clients’ budget.
One of the alternative options we considered in the interim were 4 bedroom homes with a large 2nd level floorplate and layout that could lend itself to renovations and conversion to a 5 bedroom layout (including two sets of semi-ensuites bathrooms). During my search, I came across a prospective home that seemed to fit this bill. When I read through the listing, the feature sheet’s list of inclusions noted that the seller had original builder plan drawings available. This was very significant since it would be very difficult to develop a good estimate on the renovation without access to proper plans. (Note: While builder plans can be accessed by the general public in Vaughan in certain circumstances, the community in question was an area in Weston Downs which was built over 20 years ago. Accordingly, plans were not archived this far back as I had already enquired on my clients’ behalf in respect of another home.)
When we inspected the home, we quickly noted that the layout lent itself to the conversion we hoped for. The following day, I contacted the listing agent and requested a copy of the plans. My clients had a designer ready and available and raring to start up their Autocad program.
You can imagine the look on my face when that request was met with the following reply: “The seller would like to see an offer before he releases the plans”. Naturally, I re-iterated my clients’ reasoning for the plans. Again, I was met with a similar head-shaking reply from the agent: “You know, you will likely never get a copy of builder plans with any other home you consider, so why not just put in an offer, tie up the property and make the plans a condition of the offer”.
Although I can write a dissertation on the problems with that last comment, suffice to say that my clients decided to move on.
That was about 4 weeks ago.
The home remains unsold.
GTA resale market experiences frostbite
Resale home transactions in the Greater Toronto Area declined in the first two weeks of February, Toronto Real Estate Board President Maureen O’Neill announced today.
The first half of the month yielded 2,775 transactions, down 14 per cent from the 3,240 sales recorded in the same timeframe last year. The moderation in sales was more pronounced within the City of Toronto–down 18 per cent to 1,066 from last February’s 1,308—than in the 905 suburbs, which saw transactions off 11 per cent.
The pattern I noted in my last article continues in the Vaughan Real Estate market. As at the time of this post, the average inventory in district N08 has trickled up to 4.26 months based on the interim February unit sales. A better measure will take place at month’s end given the typical bulge of sales which tend to occur. Time will tell.
“It’s important to recognize that the mid-month report provides an indication of market conditions based on a very brief period,” said Ms. O’Neill.
“However, we believe the harsh winter weather we’ve experienced in the early part of the month has had a negative impact on both sales and inventory levels. If you can’t get buyers out to your open house, then you are less inclined to list. And fewer listings means less appealing product for the potential home-buyer. It’s a compound effect.”
Although sales eased, several positive factors were also noted. At $385,735, the average price in the GTA rose seven per cent compared to $358,533 recorded in mid-February 2007. Within the City of Toronto, the average rose 11 per cent to $434,657, although pockets within the East end (Agincourt, for example) rose at the more affordable pace of around five per cent. As well, properties are remaining on the market fewer days.
The average number of days on market is currently 31 versus 35 days at the same time last year.
Furthermore, a few neighborhoods both within and outside of the 416 area code saw increased sales over the first half of February, 2007.
In Ajax (E14) sales were up 11 per cent compared to mid-February 2007, based mainly on an increase in detached home sales.
In the West region, the W3 (York South) district saw a 41 per cent increase in transactions, driven by strong sales of semi-detached homes.
Central Richmond Hill (N04) also experienced a notable increase in sales compared to the same timeframe last year. Transactions were up 21 per cent, primarily due to an increase in attached row sales.
“We are optimistic that we will see a strong spring market because the economic fundamentals remain in place,” said Ms. O’Neill. “Prices are still particularly affordable in Toronto’s East end.”
Source: Toronto Real Estate Board
Is Jack Frost responsible for cooler real estate sales?
As the GTA quickly approaches record snow accumulation records , there are a few trends which point toward softening residential real estate activity in Vaughan.
Vaughan’s primary MLS real estate district (N08) had January unit sales decreased by 2.3% from January 2007. Furthermore, the average inventory of active listings has trickled it’s way up since October 2007 from a level of 2.5 months, to 4.2 months in January 2008. (Average inventory represents the ratio of active listings to sales for the month).
This pattern was reflective in the Toronto Real Estate market where sales in January were off 2% from last year’s January performance.
This is also in keeping with the overall Canadian residential real estate market which may finally be showing some signs of a slowdown. According the the Canadian Real Estate Association (CREA), last month, seasonally adjusted unit sales declined by 0.4 per cent from the month before and 8 per cent from January 2007.
Is unit sale activity and montly inventory conclusive measures and indicators of impending doom and gloom? Certaintly not. There is no magic formula to conclusively predict real estate activity, much like the weather itself.
Source: Toronto Real Estate Board
Vaughan Quick Facts
City of Vaughan
Quick Facts
*Current list of development charges, property taxes and utility costs are available from the City of Vaughan, Economic & Technology Development Department or at www.vaughan.ca/business.
Source: City of Vaughan, Economic & Technology Development Department 2007; Statistics Canada, 2001 Census and 2006 Census; Ministry of Ontario, 2007; Greater Toronto Marketing Alliance,
2006; York Region Employment survey 2007.
“Buying a New Home” Seminars
Considering a new home purchase in Vaughan or any other municipality in Ontario? The Tarion Warranty Corporation website is a great source of relevant and timely information for new home owners, including both freehold and condominium homes.
Tarion Warranty Corporation is the Regulator of the new home building industry in Ontario. Their primary role is to license all new home and condominium builders in the province and ensure that all new homeowners receive the new home warranty coverage that they are entitled to by law.
As the regulator of Ontario’s new home building industry, Tarion registers new home builders and vendors, enrols new homes for warranty coverage, investigates illegal building practices, resolves warranty disputes between builders/vendors and homeowners, and promotes high standards of construction among Ontario’s new home builders. Tarion also works with the building industry to help educate new home buyers about their warranty rights, and about how to protect and maintain their warranty.
Tarion offers regualar New Home Buyer and Warranty seminars at their Toronto offices.
For dates and further details, please visit: Tarion New Home Buyer Seminar Information
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