Education « The Gord Piper & Associates Real Estate Blog

Archive for the ‘Education’ Category

Another REALTOR® Says They’ll Buy My House. Should I Be Wary?

Tuesday, February 4th, 2020

Wary might not be the best word, but you do need to make sure you understand the details of the offer. This type of offer is a guaranteed sales agreement, and while there is nothing illegal or wrong with a real estate company offering this kind of arrangement, it is rarely the best option for consumers.

In a guaranteed sales agreement, a real estate brokerage agrees to buy a piece of real estate from a seller at a previously agreed upon price, if it hasn’t sold to someone else before a certain date. Only real estate brokerages can offer these agreements, not individual real estate professionals.

What sellers need to keep in mind in these arrangements is that the real estate brokerage wants to minimize its risk.

For example, it’s rare that a guaranteed purchase price will be based on the property’s listing price or the property’s market value. In most cases, the brokerage calculates the guaranteed purchase price using a formula where legal fees, carrying cost, and commission on the resale are subtracted from the purchase price. This minimizes the brokerage’s risk, but it can also greatly reduce how much that seller receives for their home.

Brokerages that offer guaranteed sales programs are required to have policies for those programs. Those policies should include how the brokerage sets the guaranteed sales price and who is in control of the property’s listing price during the listing period; it may not be the seller. It’s not unusual for a guaranteed sales agreement to include a clause that requires a seller to lower their listing price during the term of the listing. Remember, your real estate brokerage wants to minimize its risk. It prefers to sell your property to a buyer rather than to use the guaranteed sales agreement, and lowering the listing price can sometimes help that happen.

Posted in Blog, Education, Home Sellers | Comments Closed

Alberta Condominium Act Changes and how they affect you.

Thursday, January 9th, 2020

The Alberta government changed the Condominium act which became law in Jan 2020. If you own your condo there are a few key points that you need to know.

Insurance: Effective Jan. 1, 2020, condominium corporations will be able to seek recovery of the deductible portion of the corporation’s insurance claim — up to a maximum of $50,000 — from a condo owner for any damage that originates in their suite or private area.

“That means that if something happens in the unit and it’s not your fault — the toilet explodes, there’s water loss, water damage goes through to the floors below — and there’s a $50,000 deductible or a $25,000 deductible, the owners are now responsible for the deductible,”

Why this is critical now is that insurance rates for Condo Corporations has skyrocketed and so many boards are increasing their deductible.

Recommended Action

Find out from your condo board what their insurance deductible is
Call your insurance company and make sure your personal policy covers paying the condo boards deductible if something happens.

Insurance tip: When talking to your insurance company also make sure your policy covers any renovations that have been done to your unit as the standard insurance policy normally covers only original finishing.

Condominium Documents

The other large change is that the government has put a cap on the cost for owners to obtain documents. This only becomes relevant when you go to sell but at that time it will save you some money.

Tags:Alberta condo act changes, Calgarycondoowners, Condo Insurance
Posted in Blog, Condos, Education, Northwest Condos | Comments Closed

Guaranteed Sold – My personal opinion!

Tuesday, February 19th, 2019

If it sounds too good to be true then it probably is!

In my opinion the program is simply a lead generating tool that earns Realtors business. They use “Guaranteed Sale” on their marketing to attract leads but when the consumer finds out the “Terms and Conditions” there is not a chance they will use the program but they often end up listing with the Realtor anyways.

Why do I say this: I looked into a Real Estate Website development company and here is what I found. This company creates web sites for Realtors and below are a couple of clips from their site.

Here is another clip selling this to Realtors.

This quote I found on an agents website. “Many homeowners are not initially pleased with the guaranteed price of their home because it does not reflect the true value of the property”

I was able to get my hands on a couple of agreements from different Brokerage’s and here are just some Terms and Conditions you might see. It is important to know there are other agreements out there that may be substantially different – this is just one example.

How is Price determined? They complete a Comparative Market Analysis and then deduct the Realtor commission and then deduct up to 10%. In other words a house with a market value of $400,000 the Guaranteed Sales Price would be less than $350,000
- As a Realtor I know that if you put any property on the market for even 5% under true market value it will most likely be sold in a day and most often with competing offers.
No One Ended Guarantees – It is a requirement that the seller purchase another property of equal or greater purchase price.
If you cancel the contract then you must still pay full real estate commissions.
The contract will be conditional to a home inspection at Sellers cost and seller shall be responsible for fixing all defects identified. If not completed the brokerage can terminate the entire agreement

Just my opinion it’s no wonder consumers would not sign an agreement like this.

Here is what the Real Estate Council of Alberta has to say about Guaranteed sales programs.

RECA

In summary, If it sounds too good to be true then it probably is! The Brokerages offering this Guarantee want nothing to do with buying your home – it is simply a lead generating tactic.

As a Realtor, I do not and would not ever use this program as I feel that it deceives the public and in my opinion that is not right!

As a consumer if I called a company to sell my home based on Guaranteed Sale advertising, I would feel tricked once I learned the details and that is not how I run my business.

Tags:Guaranteed Sale, Guaranteed Sold
Posted in Blog, Education, Home Sellers, Home Sellers | Comments Closed

Calgary Real Estate Market Forecast

Friday, February 1st, 2019

What is happening in the Calgary Real Estate Market?

Every year the Calgary Real Estate Boards Economist prepares a detailed report forecasting what she believes will happen in the Calgary and area Real Estate market. What I find best about the report is it shows the why and really puts things in perspective.

For your copy click here, and I will email you a copy of the 2019 report.

Tags:2019 Calgary Real Estate Market Forecast, Calgary Condo Prices, Calgary House Prices, Calgary Market Trend
Posted in Articles, Education, Property Values, Real Estate Board's Statistics | Comments Closed

Real Estate Sold Data – big news about nothing!

Thursday, January 10th, 2019

Home Sales Price Data will soon be available to the public, a Realtor perspective.

Background: The competition bureau recently won in it’s ruling that VOW Websites are allowed to show Sold Real Estate data. The opposing position from Toronto Real Estate Board argued that doing this is a breach of privacy. Since the competition board won in Toronto it is felt that any further challenges will be won by the competition board so I believe most boards across Canada including the Calgary Real Estate Board have decided to allow this data to be put on VOW Websites.

What makes this change ironic is that in 15 years of Real Estate if anyone asked me for sold data I would give it to them so it has always been available, just now it will be on websites.

Moving Forward: Realtor.ca has announced that it will include Sold data on it’s website – what that looks like nobody knows yet. As for this data being put on Realtor websites my opinion is that it will happen but will take some time.

In Calgary we are waiting for instructions from the Calgary Real Estate Board to determine what we are allowed to do. Even after a decision is announced it will take some time as a change of this magnitude is a huge project in Web-site redesign and there is a huge cost.

What effect will this have on Real Estate in Calgary?

In my opinion little to none. People do not hire Realtors for Sold Data. Even with sold data people will still need Realtors expertise to sort through the data, figure out what is relevant and what is not to help homeowners determine the value of their home. This opinion is based on my experience in the industry and even when we give people the sold data many still have a hard time figuring out a competitive price resulting in all the overpriced listings you see sitting on the market.

Lastly, if you have sold a home you know the value a Realtor brings to the table including advice on pricing, staging, fixing items, renovating, resale value, marketing strategies that work, what attracts buyers ect ect ect.

Tags:Calgary Real Estate Sold Date, Home price sold data
Posted in Blog, Education | Comments Closed

Watch Out for Carbon Monoxide In Your Home

Friday, September 21st, 2018

Carbon Monoxide (CO) is invisible and odourless, so you can’t actually “watch out for it”. However, you should monitor for it because an excessive build-up of this gas in your home can be deadly.

Fortunately, there are many types of Carbon Monoxide detectors you can purchase — and most are effective and affordable. Some models simply plug into an outlet. (Many also have a battery backup.) Carbon Monoxide is caused by the incomplete burning of fuel. It can be released by a faulty gas furnace, kerosene heaters, and gas fireplaces.

If you live in Alberta, Atco gas will come out and so an inspection on your furnace to ensure it is healthy – This is a FREE service!

That’s why it’s a good idea to install detectors in areas close to these fixtures, as well as near bedrooms. Experts say you should always follow manufacturer’s instructions when installing CO detectors, and test them regularly. You want to make sure you can hear the alarm from your bedroom.

CO build-up in homes is rare. So your detectors may never go off. But, if the alarm does sound, get everyone (including pets) out of the home and into the fresh air. Then call 911. Typically, the fire department will do an inspection and determine the source of the carbon monoxide.

A final tip: Never use your BBQ or outside grill in the garage or, especially, anywhere inside your home. The risk of CO exposure is very high and definitely not worth the convenience of a grilled burger!

Tags:CO2 detectors in home, Home safety
Posted in Blog, Education | Comments Closed

The Basics of Do-it-Yourself Video-based Home Security

Friday, September 7th, 2018

According to law enforcement experts, a video-based home security system is significantly more effective than a simple alarm system. The reason is obvious. Burglars don’t want their crimes captured on video, which can then be used as evidence in court. So it’s no wonder that many homeowners have, or are considering, video-based security.

These days, most video-based home security systems are wireless. The cameras either record to your DVR (just like recording your favorite TV show), or to a cloud-based server provided by the manufacturer. There are many do-it-yourself systems on the market. You simply place the cameras around your property and do some initial setup. Most of these have motion-detection that records automatically when someone comes into the frame of the camera. These are typically installed at your front door, patio door, main floor windows, and garage door. Some systems will even alert you when a camera turns on, and let you see the action on your smartphone or computer.

If it’s a burglary attempt, you have the opportunity to call the police. Although most of these products are weatherproof, check and confirm before purchasing. The packaging will say something like, “Suitable for outdoor use” or “Suitable for all-weather conditions”. Also look for night vision capability. Not all security cameras have that feature.

Tags:DIY home security, Home Cameras DIY
Posted in Blog, Education | Comments Closed

5 Ways to Make the Selling Process Stress-Free

Thursday, September 6th, 2018

For some homeowners, the process of listing, showing and selling their home can be stressful. Fortunately, there is plenty you can do to make it much less nerve-racking—and even exciting and enjoyable. Here are some ideas:

1. Make a plan. Decide when you’re going to show your property, search for a new home, view listings, etc. Block out these times in an agenda book or calendar. That way, you and your family can see what’s coming up. 2. Be flexible. Few things go exactly as planned! So, it’s important to build in flexibility. For example, you may plan to see homes for sale on Saturdays, but if an opportunity comes up on a weeknight, give yourself room in your schedule to jump on it. 3. Eat well. There are numerous studies that connect poor nutrition with increased stress. When people are selling and moving, there’s a tendency to rely on quick fixes, such as hot dogs and pizza! Try to plan more nutritious meals that will keep everyone healthy and energized. 4. Get stuff done early. Doing things last minute, such as finding a real estate lawyer or getting rid of clutter, can quickly lead to stress and frustration. Whenever possible, get tasks done early. That way, you won’t have to worry about them. 5. Hire the right professionals. By far, the surest way to a stress-free move is to get the right professionals working for you: everyone from contractors to mortgage brokers to movers. By the way, a big part of what I do for clients is help make every aspect of buying, selling and moving go smoothly. Contact me to learn how I can help you.

Tags:Hiring a Realtor, Home Selling TIps, Stress free sellling
Posted in Blog, Education, Home Sellers, Home Sellers | Comments Closed

Calgary Real Estate Market Snapshot Sept 1, 2018

Tuesday, September 4th, 2018

What is really Happening in the Calgary Real Estate Market?

What is really happening in the Calgary Real Estate Market?

Stay ahead of everyone else by following our Monthly Market Snapshot of the Calgary Real Estate Market. This shows what’s really happening! The market is driven by supply and demand so here we show the inventory (supply) and sales (demand) and most importantly the relationship between the two and how it affects the price of Calgary Real Estate. A simple way to keep up to date with how the market is trending and to stay ahead of most! All numbers are taken from the Calgary Real Estate Boards Stats package for Realtors. I have also included some general comments which are simply my opinion.

Months of Inventory/Absorption Rate – the inventory divided by the number of sales in the last month). What does this mean you might ask?

Buyer’s Market	>4.0	Drives prices down
Balanced Market	Between 2.4 to 4.0	Prices typically remain stable
Seller’s Market	<2.4	Drives prices up

Current Months of Inventory: If we did not list any more homes this is how many months it would take to deplete inventory.

In August the months of inventory remained fairly flat with the exception of Attached-Row homes which decreased by .56 I see this as a correction as last month this number went up by over 1.0

End of	July 2018	Aug 2018	Change
Detached	4.72	4.78	0.06
Semi Detached	6.07	6.45	0.37
Attached – Row	6.78	6.22	-0.56
Apartment	7.01	6.86	-0.16
Total City	5.46	5.45	-0.01

Calgary Listing Inventory

In August, our inventory decreased in all sectors and overall, the highest decrease was in the Detached home sector. This is totally normal at this time of year and we should expect this trend to continue for the rest of the year.

Inventory	July 2018	Aug 2018	Change
Detached	4578	4433	-145
Semi Detached	911	909	-2
Attached – Row	1187	1113	-74
Apartment	1774	1666	-108
Total Calgary	8450	8121	-329

Calgary Sales:

Sales were down in all categories (except Attached-Row which increased by 4) , This is normal for August as we are moving out of our busy season and people are focused on vacations and outdoor activities and now back to school.

Calgary Sales	July 2018	Aug 2018	Change	% Change
Detached	969	927	-42	-4.33%
Semi Detached	150	141	-9	-6.00%
Attached – Row	175	179	4	2.29%
Apartment	253	243	-10	-3.95%
Total City	1547	1490	-57	-3.68%

Sales Compared to last year: Thought this is a number that deserves a look as the trend is changing. Chart shows this year’s sales as a percentage of last years so yes sales are down but they are down less than at the beginning of the year.

Jan	Feb	Mar	Apr	May	June	July	Aug	Sept	Oct	Nov	Dec
102%	82%	72%	80%	82%	89%	95%	93%			‘

Calgary Real Estate Sales Prices:

As you can see prices in all sectors decreased in August. As we are now in a buyer’s market we should expect prices to decline slightly which is what happened.

Sales Prices	July 2018 Benchmark Price	Aug 2018 Benchmark Price	Change
Detached	501,300	497,000	-4,300
Semi Detached	416,200	411,300	-4,900
Attached – Row	300,300	296,700	-3,600
Apartment	259,700	258,100	-1,600
Total City	435,200	432,000	-3,200

Sales Prices “Year to Date”

Same as monthly number

Sales Prices	Jan 1, 2018 Benchmark Price	Aug 2018 Benchmark Price	Change $	% Change
Detached	499,600	497,000	-2,600	-0.52%
Semi Detached	416,600	411,300	-5,300	-1.27%
Attached – Row	299,500	296,700	-2,800	-0.93%
Apartment	257,700	258,100	400	0.16%
Total City	433,200	432,000	-1,200	-0.28%

**Please note that these numbers include only Calgary homes and do change on a community basis and more so for towns. This report does not include rural properties. If you would like to find stats on your community just let me know. If you have any questions about this summary or about Real Estate in general, please feel free to contact us.

Tags:Calgary Home Prices, Calgary Housing Market, Calgary Housing market Snapshot, calgary real estate prices
Posted in Blog, Education, Market Snapshot | Comments Closed

Calgary Real Estate Market Snapshot – Aug 1, 2018

Thursday, August 2nd, 2018

What is really happening in the Calgary Real Estate Market?

Months of Inventory/Absorption Rate – the inventory divided by the number of sales in the last month). What does this mean you might ask?

Buyer’s Market	>4.0	Drives prices down
Balanced Market	Between 2.4 to 4.0	Prices typically remain stable
Seller’s Market	<2.4	Drives prices up

Watch the Trend

On the above graph it is important to see the trends – As you can see the apartment condo absorption rate is has been trending down however in July it reversed and when back up.

Current Months of Inventory: If we did not list any more homes this is how many months it would take to deplete inventory.

In July the months of inventory increased in every Category. If you have been following my monthly snapshot you will notice that most months when this changes it changes only a little where this month the numbers have increased substantially. This change puts us deep into a Buyer’s market in every category.

End of	June 2018	July 2018	Change
Detached	3.98	4.72	0.74
Semi Detached	5.04	6.07	1.04
Attached – Row	5.73	6.78	1.05
Apartment	6.41	7.01	0.60
Total City	4.65	5.46	0.81

Calgary Listing Inventory

In July, our inventory decreased increased in all sectors and overall. This is totally normal at this time of year and we should expect this trend to continue for the rest of the year.

Inventory	June 2018	July 2018	Change
Detached	4817	4578	-239
Semi Detached	922	911	-11
Attached – Row	1209	1187	-22
Apartment	1872	1774	-98
Total Calgary	8820	8450	-370

Calgary Sales:

Sales were down in all categories and again this is normal for July as this is moving out of our busy season when people are focused on vacations and outdoor activities.

Sales Compared to last year: Of interest if we compare to last year Sales in June we were 11.3% down from last year while July we were down only 4.8% from last year – a big improvement.

Calgary Sales	June 2018	July 2018	Change	% Change
Detached	1210	969	-241	-19.92%
Semi Detached	183	150	-33	-18.03%
Attached – Row	211	175	-36	-17.06%
Apartment	292	253	-39	-13.36%
Total City	1896	1547	-349	-18.41%