UNIQUE Buyer Questions in Real Estate Transactions

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos Real Estate: http://www.JasJagpal.com

Here are some unique buyer questions that are not commonly asked.

 

1.  Can Seller Pay Buyers closing costs including property transfer fees? (land transfer tax)

-  Absolutely!  It must be written into the Purchase and Sale Agreement.  It could be an incentive offered by the Seller to sell his house... especially in a slow market.

 

2.  I have a rental property and I'm looking to buy my own home.  What percentage will I need to for a down payment?

-  5% down is all you need.  Obviously you need to have good credit and be approved for the mortgage and will incur CMHC insurance costs... unless you can come up with 20% down.

 

3.  Does a railroad in your backyard ACTUALY decrease value?  Does it matter if it is behind an opaque fence?

-  Think like a Buyer.  Would you buy a property with a railroad running behind you and pay the same as if you were on a quiet circle?  No!  So definitely it will decrease the value.  How much?  Well that would depend on the distance from your house, the noise level, the frequency the trains run, passenger or freight.  These factors will influence how much the Buyer is willing to pay and it is best to talk to an agent and get right market selling price.

 

4.  Why are maintenance fees calculated by square foot, not number of people residing in a condo?

-  Excellent question.  Why a family of say 2 pay the same as a family of 4 who live in a 1BR + Den apartment.  We'd probably think the family of 2 should pay less for they will be using less water, hydro and amenities.  That is not necessarily the case.  A family of 2 can be irresponsible... taking 1 hour showers, leaving the lights on, wired up many gadgets, and feel cold so have the heat setting at high.  Just say that isn't the case.  How would you manage a condominium when people buy and sell, every week, move in an out, and recalculate the maintenance cost every week.  That would be a logistical nightmare.  So like the province, who charges property tax, depending on the value of the home and not how many residents live there,  Condo Corp. that maintains the building, finds it a lot easier, simpler to charge per the size of your unit. 

Formula:  Total expenses / Total square footage  = Cost per square foot. 

Maintenance Fee:  Cost Per Square Foot  x  Your Unit Size

 

If you are a buyer, looking to buy or sell in the GTA and have any questions.  Give me a call at: 647-272-6629 or visit my website at www.JasJagpal.com where you will find many tips and information.

Jas Jagpal, BSc. is a Remax professional helping clients buy, sell and invest in Condos and Homes, primarily in Markham, Scarborough and the GTA.

© 2010- Jas Jagpal

Jas Jagpal, Remax Sales Representative, jasjagpal@gmail.com ; 647-272-6629

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos, Toronto Real Estate: www.JasJagpal.com

Posted on: www.1stoprealestate.ca : www.LinkToMorningside.com: www.MarkhamBoxgrove.com

 

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Who Is going to Clean my Toronto House?

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos Real Estate: http://www.JasJagpal.com

I was talking to a fine real estate agent in my mastermind group about a listing of her's that she is frustrated with.  The house has been on the market for a little over a month, in a nice neighborhood and is not selling.  The photographer who took the online pictures has done a fabulous job that they have had plenty of showings but people walk away disappointed. 

Why you might be asking?  Because the Seller isn't on board to help sell the house!   

How and  Why not?

Why not,  I don't know;  But how the Seller is sabotaging the success of selling his home is by not cooperating and heading the advice of his Realtor.

You see, if the Seller would cooperate by cleaning the house and keeping it presentable this house would have sold by now.  The Realtor advised the Seller to thoroughly clean the basement, get rid of pet odours and cigarette smoke and keep the house tidy when Buyers come for viewings. 

The Seller is under the impression that Buyers will over look these "nuances" and see the space for what it is and decorate it according to their own likes and he shouldn't have to clean and paint the basement with the bucket of white paint that is already sitting there.

Further more the Seller couldn't even get rid of the dead flowers that were used a few weeks earlier for an open house.

If the Seller persists in this manner, the Seller will end of losing a lot of time and money when eventually he gets lucky and a "handyman" Buyer puts an offer in that is $30K or more less than asking.  This could be avoided if  the Seller would spend a couple of thousand upfront to get cleaners come in and do all the necessary work to stage the house or take steps to do it himself.  Not only would the home sell faster but also for near asking.

I can't stress out the importance of CLEAN.  We've all walked into a home that is spic and span and we fall in love with it.  Remember, for most people, Buying is an "emotional" process not a logical decision.  So if Sellers want to take advantage of this information, they must attempt to create an emotional liking to the house for the Buyer.  By keeping the entry way clean, the bathrooms spic and span, the home decluttered of personal belongings and removing the offensive odours, you will have taken the most important steps to help Buyers create a emotional bond. 

Sellers... if you want to get top price and sell fast then: clean, clean, clean and clean!

Ask for my 9 Page Seller REPORT ($49 value for FREE) at www.JasJagpal.com

29 Essential Tips to Sell Your Home Fast (And For Top Dollars)

 

Jas Jagpal, BSc. is a Remax professional helping clients buy, sell and invest in Condos and Homes, primarily in Markham, Scarborough and the GTA.

© 2010- Jas Jagpal

Jas Jagpal, Remax Sales Representative, jasjagpal@gmail.com ; 647-272-6629

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos, Toronto Real Estate: www.JasJagpal.com

Posted on: www.1stoprealestate.ca : www.LinkToMorningside.com: www.MarkhamBoxgrove.com

 

 

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Posted via email from Markham Boxgrove Real Estate Blog

Whose going to clean my house?

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos Real Estate: http://www.JasJagpal.com

I was talking to a fine real estate agent in my mastermind group about a listing of her's that she is frustrated with.  The house has been on the market for a little over a month, in a nice neighborhood and is not selling.  The photographer who took the online pictures has done a fabulous job that they have had plenty of showings but people walk away disappointed. 

Why you might be asking?  Because the Seller isn't on board to help sell the house!   

How and  Why not?

Why not,  I don't know;  But how the Seller is sabotaging the success of selling his home is by not cooperating and heading the advice of his Realtor.

You see, if the Seller would cooperate by cleaning the house and keeping it presentable this house would have sold by now.  The Realtor advised the Seller to thoroughly clean the basement, get rid of pet odours and cigarette smoke and keep the house tidy when Buyers come for viewings. 

The Seller is under the impression that Buyers will over look these "nuances" and see the space for what it is and decorate it according to their own likes and he shouldn't have to clean and paint the basement with the bucket of white paint that is already sitting there.

Further more the Seller couldn't even get rid of the dead flowers that were used a few weeks earlier for an open house.

If the Seller persists in this manner, the Seller will end of losing a lot of time and money when eventually he gets lucky and a "handyman" Buyer puts an offer in that is $30K or more less than asking.  This could be avoided if  the Seller would spend a couple of thousand upfront to get cleaners come in and do all the necessary work to stage the house or take steps to do it himself.  Not only would the home sell faster but also for near asking.

I can't stress out the importance of CLEAN.  We've all walked into a home that is spic and span and we fall in love with it.  Remember, for most people, Buying is an "emotional" process not a logical decision.  So if Sellers want to take advantage of this information, they must attempt to create an emotional liking to the house for the Buyer.  By keeping the entry way clean, the bathrooms spic and span, the home decluttered of personal belongings and removing the offensive odours, you will have taken the most important steps to help Buyers create a emotional bond. 

Sellers... if you want to get top price and sell fast then: clean, clean, clean and clean!

Ask for my 9 Page Seller REPORT ($49 value for FREE) at www.JasJagpal.com

29 Essential Tips to Sell Your Home Fast (And For Top Dollars)

 

Jas Jagpal, BSc. is a Remax professional helping clients buy, sell and invest in Condos and Homes, primarily in Markham, Scarborough and the GTA.

© 2010- Jas Jagpal

Jas Jagpal, Remax Sales Representative, jasjagpal@gmail.com ; 647-272-6629

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos, Toronto Real Estate: www.JasJagpal.com

Posted on: www.1stoprealestate.ca : www.LinkToMorningside.com: www.MarkhamBoxgrove.com

Posted via email from Markham Boxgrove Real Estate Blog

August- Toronto Real Estate Report- The Tide Has Turned

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos Real Estate: http://www.JasJagpal.com

It seems the tide is indeed turning... for the rest of the year I wouldn't expect multiple offers and the same high prices that we saw in May 2010.  Sellers be warned to make sure your houses are staged to sell and priced right. Buyer's do your planning and be ready to walk away as there is plenty of choice to find your dream home.  Read full report in the newsletter below.

 

© 2010- Jas Jagpal

Jas Jagpal, Remax Sales Representative, jasjagpal@gmail.com ; 647-272-6629

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos, Toronto Real Estate: www.JasJagpal.com

Posted on: www.1stoprealestate.ca : www.LinkToMorningside.com: www.MarkhamBoxgrove.com

 

 

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Tony's Question: How much HST will my Mom pay when selling her house?

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos Real Estate: http://www.JasJagpal.com

Just the other day Tony called and had a few questions on HST.  You see his Mom is looking to sell their house and they were terrified at the prospect of having to pay 13% HST on the sale of their house.  I'd be petrified as well.  Imagine paying 13% tax on a house worth $400,000, yeah that is $52,000 big ones!

I assumed with all the talk about HST in the media and having written a few blogs on it that people understood the basic rules but I think it would be a great idea to refresh everyone how the HST affects you when buying or selling real estate.

1.  If you are buying or selling a house that was built and occupied before July 1st, 2010 then you do NOT pay HST when you sell it.  This is called the RESALE market.  In other words, you are reselling a house you previously purchased.  The majority of the real estate transactions come from resale market so most people won't be affected detrimentally by the HST.

2.  If you buy NEW from a builder, be it Condo, Townhouse, Semi, Detached, etc.  you will be paying HST.  Yeah that Sucks!  To make it suck less... the government decided to provide a 75% rebate on the first $400,000 (average price in Toronto).  So instead of paying $52,000 in taxes on a $400,000 new residence you pay $13,000. 

Obviously if the new house is worth $500,000  you will pay $13K on the first $400,000 and another $13K for the next $100,000 for a total of $26K in HST tax.  Most builders will incorporate the HST tax in their selling price to keep advertising simple and consistent and so they do not alarm Buyers who are looking to buy new.  I'm sure many Buyers would walk away from the builders if they were asked to pay an additional $26K plus for HST on the advertised price.

3.  Lastly, HST is charged on all services that occur in a real estate transaction.  So on an average priced home you will pay around $2000 in HST tax.  This covers tax on Realtor commissions, Lawyer Fees, Bank Appraisals, Inspections,  Movers,  Closing adjustments, etc. 

In a NUTSHELL ... HST is definately an added cost to the real estate transaction in Ontario.  For most resale homes you can think of it as a cost of home ownership and a cash grab by the government,  just like the Toronto Land Transfer Tax.  However, if you want the bells and whistles of buying new and living large you won't mind paying for it.

© 2010- Jas Jagpal

Jas Jagpal, Remax Sales Representative, jasjagpal@gmail.com ; 647-272-6629

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos, Toronto Real Estate: www.JasJagpal.com

Posted on: www.1stoprealestate.ca : www.LinkToMorningside.com: www.MarkhamBoxgrove.com

 

 

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Sam's Story - Sacrifice ........ 1st Time Home Buyer - by Jas Jagpal - Morningside Heights, Toronto Real Estate

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos Real Estate: http://www.JasJagpal.com

Sam, his wife and their young son- new migrants to Toronto from Mauritius called me as they were looking to buy a house.  They had received my newsletter from their child's school back in November 2009 and felt comfortable calling me and knew of the community work I was doing in the Morningside Height's community including the Brookside soccer program I run.  After consulting with them for two hours I left the meeting and thinking "WOW! What remarkable people they are!"

 

I saw parents leaving their homeland Mauritius, once again, to give their child(ren) more opportunities and hence a better life.  Currently their top priority is to become home owners and they are so dedicated that they are sacrificing today's simple pleasures for tomorrows gains.  I was reminded of my parent's time where my father would bag his lunch and tea to work to save his quarters... which all added up.  If you consider today's lunch and coffee at about $10-$15 a day.  That is easily $75 a week.  Multiply by two people - $150 a week.  Which is $600 a month.  By sacrificing on many pleasures we take for granted Sam and his family in under a year have saved over 10K to put towards their dream house.

I'm sure it is no fun renting and living in a tiny basement 1BR apartment and I know they would love to have their own place now.  I know the Sam's will need more space to accommodate the birth of their second child and it would be easy to sell them a condo today that would fit their $150K budget.  But even with everything pointing to finding them a place, I know for "this family"-  who has made many sacrifices, it is not the right time to buy just anything now!  

I know the Sam's are looking for safe environment and have a dream to own a semi or a townhouse in a nice family neighborhood.  I know they want a yard for their kids to play in and family to gather and enjoy fine home cooking.  I know they see their house as an investment and to get the greatest return they should be there for 3-5  years before moving up to a larger house.  I know they are 1st time Buyers and they get certain tax incentives.  Knowing all this I advised them to wait... save some more money and buy something they want and in the meantime I'll look to see if their is "anything" that fits their "needs".

I know some Realtors will say Jas, you are just plain stupid and kicking yourself in the foot!  You never know if this person will buy with you down the road.  You just gave away potentially more than $3000 in commissions.  I realize that.  But I wouldn't feel good, sleep well, if I got them a place, just because they could really use it now and knowing they'd most likely move in a year and lose money in the process.

We all know... money comes and goes. It's like a river flowing from one bank to the next.  It never stays with anyone forever and we too are not immortal.  I feel when I help someone by guiding them to what is best for them, the Law of Karma, will eventually pay back in kind.  I can only control my actions and do what I feel is morally right.  The rest I leave to the universe.

So did l lose $3000 in commissions or gained $10,000 in good will.  Only the universe knows.  One thing I do know is that I feel happy and always get a good night's sleep. 

Jas Jagpal, Remax Sales Representative, jasjagpal@gmail.com ; 647-272-6629

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos, Toronto Real Estate: www.JasJagpal.com

Posted on: www.1stoprealestate.ca : www.LinkToMorningside.com: www.MarkhamBoxgrove.com

 

 

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