Tag: Property Advice

The past few months have been a whirlwind of emotions for many people. As we all wrap our minds around the current situation, there’s no doubt that coronavirus has dramatically affected the way we live and how our society operates. There is no clear answer on when things will be back to normal, but the real estate market persists.

While real estate continues to be an essential service, homebuyers and sellers will be required to evolve the standard process to protect against spread of the virus. The short answer is, yes, you can use remote closing to complete your home sale. In fact, over the last decade digital home closing has been a trend, but in this environment more people will be leaning on it than ever before.

Typical process to close a home

Home closing consists of a lot of moving parts that will require a little bit of creativity to adjust to the current social distancing measures. The good news is that the government supports real estate activity and the sector boosts the economy. As a result, lenders, lawyers and real estate agents are still very much in business.

So, don’t fret! As the closing date approaches for both buyers and sellers, there are ways that you can seamlessly close the sale of the home using the power of technology and other hybrid strategies.

Homebuyers and Sellers

1. Obtain a home inspection

Normally a home inspection is necessary during the home closing process. The inspector, along with the buyers, would complete this together in-person. However, with social distancing measures you will need to determine other ways to get the home inspection checked off your list.

If sellers agree to have an inspector visit their home, new protocols seem to be that inspectors arrive alone and wear protective equipment such as a hazmat suit and respirator when inside the home. After the inspection is complete, they share their findings with the buyer using digital technology such as video conferencing.

READ: Open For Business: Canadian Real Estate and the “New Normal”

Alternatively, homebuyers can choose to forgo the home inspection part of the closing if they don’t want to take these other steps. However, this can be risky, since inspections can turn up large repairs or other structural challenges in the home which buyers will likely want to know about prior to closing.

2. Final walkthrough of the new home

Having the final walkthrough of a new home is important to ensure everything is in order and in the same condition as when the homebuyer signed the offer. In the midst of coronavirus distancing measures, there are other ways for buyers to have a final walk-through of their new home.

Buyers can ask sellers to leave the key to the property in a safe place (lockbox). If you’re a homebuyer, you can enter the home privately to complete the final walkthrough prior to taking possession. Wear a mask and gloves to reduce risk to both yourself and the sellers.

Alternatively, if you would rather not attend the walk-through and your real estate agent is comfortable, they can do this independently and virtually walk you through the home. With the aid of 360-degree video technologies, you’ll be able to see exactly what the home looks like in real time.

3. Title Review and Title Insurance

Your lawyer will review the “title” (deed) to the home, which is the transfer of ownership between the seller and buyer. They will start the title search process to see if there are any obstacles that could stop the sale of the home. These can include zoning issues or outstanding mortgage payments by the former owners.

It’s also your lawyer’s responsibility to set up your title insurance. This protects you from any ownership challenges, including if the initial title review missed something.

Speak to your lender and lawyer to see if the title review and title insurance can be done to their compliance standards with digital signatures.

4. Exchange of funds

It’s critical that all parties receive the payments they’re owed during the closing process. Typically, real estate lawyers would have cheques couriered with the homebuyer’s mortgage funds and down payment. However, now they are leaning on transferring funds digitally, with their accounts set up to accommodate bill payment and e-transfers.

This allows for a seamless exchange of funds between the two parties. The homebuyer can digitally transfer the funds to their lawyer and then their lawyer can digitally transfer funds to the seller on the closing date.

5. Getting the keys

One of the best parts of closing your home is finally getting the keys! Similarly, the hand-off of the keys can be challenging since people want to maintain physical distancing. As a result, sellers may use a lockbox to leave the keys for the buyer on the property. This ensures it is a secure exchange for both parties, while reducing unnecessary risk.

Buying or selling a home in these conditions may involve taking a different approach. Yet, there are ways to close the sale of your home during this time. Discuss how you can make adjustments to typical processes with your real estate agent, lawyer, lender, and, home inspector.

It seems difficult to forecast the future of the Canadian real estate market during this time. Many of us have questions about when social distancing measures will be loosened, and life will return to normal.

Earlier this year the market was sizzling and in most major cities, such as Toronto and Vancouver, it was a sellers’ market. Right up until early March it was projected to be a busy Spring homebuying season. Yet, things have cooled down significantly as a result of the covid-19 pandemic lockdown.

Many people are not sure what the future of the Canadian housing market holds. This uncertainty has caused the market to dry up. Yet, many are predicting that this is a momentary sting to our economy and housing market.

Here are a few indicators of what we may be able to expect in the coming months and years:

Real Estate Market Activity in the Short-term

The Toronto Regional Real Estate Board (TRREB) is projecting that as social distancing measures loosen, real estate market activity will quickly ramp up again. This is expected to happen near the end of Summer and likely early Fall. The organization believes that the economy will recover, as business operations go back to normal and unemployment rates decrease.

Homebuyers will have more financial power and will be more inclined to start their home search again. While, sellers will feel more comfortable allowing people to visit their homes for open houses.

For now, some economists are predicting that property values will fall temporarily, and lower home prices will be on the table due to tight market conditions. Sellers will be forced to negotiate on price opening the door for buyers who have job security and financing to swoop in.

Relief measures

The Canadian government has stepped in during this time to bolster the economy and aid to Canadians across the country. They’ve created financial relief measures to help soften the impact of the coronavirus on our economy. These benefits have been put in place to reduce household debt as people navigate this challenging time.

The Canadian government has also created specific measures for businesses. As a result of social distancing, many businesses have taken revenue hits or have had to close their doors for the unforeseeable future. Yet, financial benefits will allow more businesses to keep people employed and provide job security. This could encourage more Canadians to continue to engage with the real estate market

However, it’s unclear how much these financial relief measures will entice Canadians to enter the market and to what degree they will.

Interest rates

The mortgage stress test along with high-interest rates have made it challenging for many homebuyers to qualify for a mortgage. This is especially the case for first-time homebuyers who typically don’t have as much money available for a down payment. The good news is that the stress caused by these obstacles may be eased by recent interest rate interventions.

In the short-term the Bank of Canada has significantly lowered the benchmark interest rate to 0.25% to help boost the economy and keep inflation stable. This is the lowest the rate has ever been. For those who want to jump at the opportunity and take advantage of low interest rates, they can qualify for more affordable mortgage payments. This can also allow them to borrow a larger amount, which could help to finance a home with more square footage include features they desire.

For first-time homebuyers who don’t have cash tied up in stocks or other investments and have enough money for a down payment this can be an ideal time to make a purchase. Other key considerations include having job security to ensure they’ll be able to make their mortgage payments even a few months from now.

As the coronavirus situation unfolds, it is hard to say how much lowered interest rates will entice people to purchase homes.

Real Estate Market Activity in the Long-term

Data from Google trends  during the recession in 2008-2009 caused by the housing crisis, show that the search volume for homes for sale in the US and Canada continued to increase through these years into 2010/11. This trend provides evidence that following the economic downturn, the market recovered at a relatively fast rate.

This can be promising data that can put people at ease that after the coronavirus pandemic, our economy is likely to rebound. Employment rates will increase since businesses will be able to operate fully again. As a result, household debt will decline because people will be able to afford to pay their bills.

The demand for homes will grow and we will likely see a lot of pent up demand from the time of social distancing that will push people back into the market. This will especially be true in markets where there has already been a lot of interest, such as Vancouver and Toronto. Coupled with the low inventory we saw before this issue occurred; competition in the market will cause housing prices to be on the rise again.

You may be concerned about the direction the Canadian real estate market may take in the future. However, with government intervention the impact of the coronavirus may not hurt the economy as bad as we think. It’s also important to note that previous recessions have shown us we’ve made strong recoveries. The real estate market has been hot the past few years. Once the coronavirus pandemic is under control, we will likely see the market heat up once again.

Buying or selling a home is one of the most complex transactions most of us will ever make, and Coronavirus hasn’t made the process any easier. While some agents are advising their clients to wait until the pandemic and social distancing orders are lifted before proceeding with non-essential transactions, some people still need to buy or sell a home, and they need help doing it. As a consumer, you have a choice in representation. When choosing to work with real estate agent, you should expect a professional with market experience and an intimate knowledge of your preferred neighbourhood and housing type. Throw a pandemic into the mix to quickly find out which agents are worth their salt. Indeed, current market conditions have many people asking, How do you find a real estate agent virtually?

What is Agency Representation?

Agency Representation (or fiduciary representation), simply means that the agent you hire is legally bound to represent your interests. This involves the highest standard of care and loyalty to you, the “client.” Some agents will work with you as a “customer,” which carries a different level of responsibility. Most real estate professionals require a client relationship because it allows them to provide the full range of services to homebuyers. Your agent will discuss representation with you and will request your commitment in writing in order to receive this level of service.

Virtual Real Estate: The New Normal

It goes without saying right now, but we’ll say it anyway: technology is everything. Tech has long loomed over the real estate industry, and agents who have already embraced it in their day-to-day business are now reaping the rewards – and so are their clients. Social distancing measures have disrupted traditional real estate practices like open houses, showings and face-to-face meetings of any kind, but technologically adept agents have found effective ways to complete real estate transactions virtually and from a safe distance. Your search for a real estate agent should include a virtual consultation and preliminary interview. Make this your first evaluation point. How did the agent handle his or her technology? Did your video meeting run smoothly? This may be a good precursor for what you can expect during the transaction itself.

More Tips for Choosing a Good Real Estate Agent

Do your due diligence. Research real estate agents online, read reviews, and solicit recommendations from family and friends. At RE/MAX, client and agent referrals account for 70 per cent of business.

Choose someone you trust. A home is a very intimate, very expensive purchase. It’s critical that your real estate agent makes you feel comfortable, listens to you and respects your views. Choose someone you trust.

Look for experience. Ask questions to ensure the agent is knowledgeable about current real estate market conditions and other factors affecting market activity, such as mortgage rates. An experienced, full-time real estate professional will likely have already experienced market ups and downs, and will know how to navigate current conditions to negotiate the best deal on your behalf.

Undivided attention. While you want an agent with lots of experience, ask how many other clients he or she is working with currently. Generally speaking, if it’s a high number of homebuyers or sellers, question whether you’ll get the attention required. RE/MAX agents who carry the ABR designation (Accredited Buyer Representative) are skilled in understanding and responding to the specific needs of buyers.

Regardless of the market conditions or the specific details of your purchase, the right real estate agent will ensure that your interests become their interests. Contact us for more information on how we can guide you through each step of the home-buying process.

As the days continue to get longer and the weather begins to get warmer, now is the perfect time to dive into working on yards and preparing them for the spring and summer months. With social distancing regulations being in place now as well, working on your yard is a great way to get outside and get some fresh air while still maintaining the appropriate distancing measures. Plus, sprucing your yard up may give you a great new outdoor space to spend time while in isolation.

We’ve put together a list of some things that you can do to begin to prep your yard for the sunny, warmer months ahead.

Clear Dead Growth from Flower Beds & Flower Pots

Some of the first new signs of life that will begin to appear in your backyard after the snow melts are the new growths popping up in your flower beds. Make sure you cut back and clear away any dead growth from last year to allow sunlight to reach the new plants beginning to grow! Clearing away the dead growth in your flower beds will also help to clean up your back yard and get a feel for what new plants and flowers you may want to plant this spring.

Cleaning out last year’s flower pots is also a great way to clean things up. While it may be too cold still in some provinces to be planting flowers just yet, clearing out the dead growth from last year can help you start to plan what flowers you need to pick up at the greenhouse once the weather is appropriate for planting!

Give Your Lawn Some Love

Giving your lawn some TLC is a great way to begin to spruce up your backyard. Tune up your lawnmower to ensure it is in good working order, sharpen the blades and aerate your lawn to help promote new grass growth. Give your lawn a good healthy haircut as soon as the weather permits and spread some fertilizer to help kick start the growing process. Patch any bare spots that may have appeared from underneath the snow, spread some fertilizer and if the weather permits, let your sprinkler run to help kick start the growing process.

Bring Out Outdoor Furniture & Prep your BBQ

If your furniture has been packed away in a storage shed for the colder months, now is the time to bring them out and clean them up. The warm weather is also a great opportunity to break out the barbecue and get it cleaned and ready for the summer months. Check the levels on your propane tanks, scrape down the grill so you have a fresh grilling surface and if your barbecue has been tucked away to stay out of the elements, bring it out into the light!

Clean Your Deck/Patio

After the winter months, your deck or patio is most likely covered in a good layer of dirt and grime. Before you begin enjoying happy hour on your deck, it is probably a good idea to give it a good wash before the spring and summer months. Move off all deck furniture and decorative pieces and hose your deck or patio down. Use an old broom and a pail of water with a cleaning solution to scrub the deck down and rid it of any stubborn grime. Hose down any outdoor furniture cushions and leave them out in the sun to dry.

Once everything is clean and dry, you can put everything back together and if you’re feeling like a change from last year, move things around and rearrange!

Start Planning for Some Colour

While the temperature might not yet be cooperative for beginning to plant flower beds and fill flower pots, now is a perfect time to start planning what plants, shrubs and flowers you are going to want in your outdoor space. Do some research on what flowers are going to be the most tolerant to your outdoor conditions and plan accordingly. Begin to place your flower pots around your space to start planning which flowers will go where. If you are wanting to go with a certain colour scheme with your flowers, figure out what other shrubs and grasses will compliment and add some greenery to your backyard space.

The Toronto housing market was on an upward trajectory at the start of 2020, picking up right where the fall market left off in 2019. Sales were on track to surpass 2018 and 2019 levels. While the impact of COVID-19 put a pause on the busy spring market, industry experts anticipate a return to an active state once social distancing measures are lifted.

Housing affordability and low inventory continue to be an area of concern for Toronto homebuyers, who range widely from households with and without kids, to luxury seekers and Baby Boomers / retirees.

So, what are the best neighbourhoods in Toronto to buy a house? RE/MAX explores more than 300 of Canada’s most liveable hot spots in the new 2020 Liveability Report. Here are our top picks in Toronto.

10 Most Liveable Neighbourhoods in Toronto

1. Corktown
2. Kensington Market
3. West Don Lands
4. Bay Street Corridor
5. North Riverdale
6. Chinatown
7. Danforth
8. Grange Park
9. Summerhill
10. Alexandra Park

Most Affordable Neighbourhoods in Toronto

The most affordable neighbourhoods in Toronto are Trinity Bellwoods, East York and The Junction. These neighbourhoods are also among of the most up-and-coming in the region. East York has been a sought-after neighbourhood for a number of years, thanks to its very family-friendly atmosphere and proximity to downtown, while Trinity-Bellwoods and The Junction have experienced recent gentrification and an improvement in proximity to bike lanes and walking paths, independently owned retail/gyms/bars and restaurants.

Toronto’s Future Liveability

Toronto liveability is expected to continue improving in the next three to five years, based on ongoing improvements in homes and local businesses. “It’s become increasingly common for homes purchased in Toronto neighbourhoods to undergo immediate renovations, which has a positive impact on its entire respective area. Toronto has so many incredible amenities as is, so these aesthetic improvements make a big difference on the look of its neighbourhoods.”

Toronto at a Glance

Toronto is both the most populous city in Canada and the provincial capital of Ontario. Located on the northwestern shore of Lake Ontario, Toronto features an urban downtown core and is surrounded by the region best known as the “Greater Toronto Area,” which features a breadth of suburban and urban city centres. Known as one of the most multicultural cities in the world, Toronto is a centre for business, finance, culture and arts.

Canada’s Most Liveable Neighbourhoods

Liveability is about quality of life at a local level. A neighbourhood’s dynamism, or lack thereof, involves a delicate convergence between independent small businesses, public institutions, arts and culture, green spaces and housing, to name a few. The COVID-19 tragedy will impact neighbourhood ecosystems differently across the country, just as the virus itself has. Yet, civic/local pride has been proliferating throughout this crisis in inspiring ways, giving Canadians hope that micro-economies, including real estate, have the resilience to be restored in the near and mid-term.

To learn more about liveability in Canada’s biggest housing markets, read the RE/MAX 2020 Liveability Report.