Why you NEED a Buying Agent

One of the questions I often get asked is "Do I need a buyers agent?" 

You see, many people go to an open house see THE house of their dreams and will put it an offer with the listing agent. 

While with my listings this approach can offer savings, with respect to my commission rates, many agents will not offer savings and using the listing agent can result in you paying more for your home then is necessary and here is why; 

• The Listing Agent is the Seller's representative in the transaction, and is charged with helping the SELLER get as much as possible for their home. 

• As a Buying Agent I represent YOU and can look objectively at the property and assess fair value based on many things including market conditions, recent sales, how the home fits YOUR needs, and assessment of the home's future value. 

• A Buying agent's job is to negotiate as hard as possible to get you the best value for YOUR money and if that particular home is not the best value, we move on to others. A listing agent wants you to buy that home only. 

• A Buying agent will work closely with you to determine your must-haves, needs, and nice-to-haves and with that knowledge will find you the best home possible at the lowest possible price.

 

• A buying agent is FREE to use! The seller pays all the commission and therefore it costs you nothing to have a skilled and professional negotiator working for you.

Your home is one of your biggest investments, isn't it worth it to have someone who is exclusively on your side? 

I am always available to answer questions and you are under no obligation if you do ask.  If you see any listings that you are interested in, please feel free to forward them on and I can show you their true value and what price is fair for that home. 

Call me today 416-256-7000 or email me anytime at marianog@sutton.com and let me help you find your next home. 

Mariano

Follow my tweets www.twitter.com/marianogigante 

Gain Negotiating Advantage When Buying

Buying a property requires good knowledge of market conditions, personal finances as well as the ability to judge what is a good investment. Equally important is being in a position to negotiate realistically when you do decide to make an offer. That comes of doing as much up-front thinking and preparation as you can before you are actually in the position of preparing a formal offer to purchase.

Market conditions
Look at the long-range prospects of your borrowing commitment. For instance, in a period of low interest rates, you should take into consideration whether or not prices are expected to increase in the future. In that case, you may want to seriously consider locking in at a reasonable rate for the opportunity of considerable gain in the future.

How Much Can You Afford?
Before you go into the market to look for a house, review your current spending and loan commitments. A mortgage lender will use a ration of about 30% of gross income as the amount of mortgage you can carry. You will have a good idea of your own capacity if you review your finances beforehand. Property tax is an additional cost that must be factored into the equation.

Having settled on a price range for your prospective house purchase, the next step may be locking in a mortgage interest rate with a pre-approved mortgage. Knowing that you already have your mortgage arranged can increase your comfort level at the negotiating table. To arrange a pre-approved mortgage, you meet with a lender who will confirm your borrowing capacity, perform the required credit review and make an agreement to honour a particular interest rate for a specified time.

Existing Mortgage
If there is an existing mortgage on a property you are selling or on one you are looking at, there is more to consider than simply the balance outstanding and the interest rate. You should know, before you get into negotiations, whether or not the mortgage is assumable by the purchaser or is it due upon the sale. If it is assumable, must the new purchaser qualify in order to take it over and what is involved in doing that?

Be aware, as well, of any pre-payment terms. If your mortgage is open, of course, you can repay it at any time without penalty. However, a mortgager may have "lock-in" clauses. These may include payment of a bonus or the lender's interest revenue loss for the balance of the term should you repay early. You should clarify all this with your lender.

Portability
A very popular feature now is mortgage portability. That means that you can transfer your existing interest rate, loan balance and remaining term to a new mortgage without penalty although there may be some restrictions. Be sure you understand what they are before you get into negotiations.

Mapping the Route
Just as you would orient yourself beforehand to the law of the land in a country where you were going to live or even to visit, the same holds true for preparing your journey into the property buying market.

Open House Alert!

Hi everyone,

I have been neglecting my blog lately. It has been  crazy out there!  The historically low interest rates out there and great inventory levels make this the perfect time to find your next home.  Blog post to come on this later I promise.

This weekend is extremely busy for me. I have two open houses that I would love to see you at.

On Saturday October 16th, I will be at 7120 Baskerville Run from 2-4pm. 

This great family home in historic Old Meadowvale Village boasts tons of light, hardwood throughout, renovated kitchen with granite counters and breakfast island, generously sized bedrooms, and a fantastic backyard with deck and brick BBQ.  The lot is perfect for building a pool and entertaining all your family and friends.  

On Sunday October 17th, I will be at 2185 Thorn Lodge Drive from 2-4pm

This home is in Sheridan Homelands which is a fantastic school district and home to a great French Immersion program.  The house itself has been upgraded with everything you can think of including a gorgeous kitchen with stainless steel appliances, fabulous  master ensuite (rare in this neighbourhood) and renovated basement with large windows perfect for family gatherings. 

As always, I will be personally hosting both open houses and would be happy to answer any questions.  You can check out both listings at www.marianogigante.com 

Hope to see you there,

Mariano

May brings lower homes sales and fewer new listings - CREA

OTTAWA – June 16th, 2010 – Statistics released by The Canadian Real Estate Association (CREA) show that home sales activity and new listings in Canada declined in May.

Seasonally adjusted home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards declined nationally by 9.5 per cent in May from near-record level activity the previous month. While activity declined in more than 70 per cent of local markets, the lower national figure resulted largely from fewer sales in Toronto, Vancouver and Ottawa.
Actual (not seasonally adjusted) national sales activity was down 4.3 per cent in May from the same month last year. In a departure from the normal seasonal pattern, national activity levels in May were also down from April levels. This suggests that the combination of changes to mortgage regulations and rising mortgage rates pulled forward a number of sales into April that would have otherwise taken place at a later date.

“May was the first full month in which sales activity was affected by these changes,” said CREA President Georges Pahud. “An accompanying decline in new listings and housing starts means these changes are also affecting the supply side, which will keep the market balanced and Canadian home prices stable.

The seasonally adjusted number of homes that were new listings on Canadian MLS® Systems in May 2010 declined by four per cent from the previous month. This marks the first monthly decline in new listings in eight months. New listings had been climbing sharply, rising from a four-year low last September to the second highest level ever last month.

The number of homes listed for sale on Boards’ MLS® Systems at the end of May was up 5.4 per cent from levels at the same time last year, when the supply of homes for sale on the market had started declining.

The national average price of homes sold via Canadian MLS® Systems rose 8.5 per cent in May from a year ago. This is a smaller increase compared to those recorded over the past nine months.

“Supply and demand has become more balanced in a number of major markets,” said CREA Chief Economist Gregory Klump. “Homebuyers now have more choice and are likely be in less of a rush to purchase than they were recently, so the amount of time it takes to sell a home is expected to rise in the coming months.”

With last year’s string of downwardly skewed average price values having now mostly passed, year-over-year national average price comparisons are coming back into line with changes in the national weighted average price.

The weighted average price compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. It climbed 8.4 per cent on a year-over-year basis in May 2010. Similarly, the residential average price in Canada’s major markets was up 9.8 per cent year-over-year in May, while the weighted major market average price rose 10.7 per cent.

The actual (not seasonally adjusted) number of months of inventory stood at 5.3 months in May 2010. This is up from 4.8 months at the same time last year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

On a seasonally adjusted basis, months of inventory stood at 6.1 months in May, the highest level since last April.

“The number of months of inventory may rise further in response to easing sales activity and a further rise in the number of active listings,” said Klump. “However, the number of newly listed homes will ultimately retreat in response to a more competitive sales and pricing environment in a number of local markets. The outlooks for the Canadian economy, employment, and mortgage market trends remain upbeat, so supply and demand will remain balanced on a national basis. Canada will avoid a U.S.-style home price correction.”

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month.

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 96,000 REALTORS® working through more than 100 real estate Boards and Associations.
Further information can be found at

http://www.crea.ca/public/news_stats/pdfs/Media_May10rpt_e.pdf

GTA REALTORS® Report Monthly Resale Housing Figures

TORONTO, JUNE 3, 2010 ‐ Greater Toronto REALTORS® reported 9,470 sales through the Multiple Listing Service® (MLS®) in May, representing a one per cent dip from May 2009. In comparison to previous years, this was the third highest May sales result on record.

"The pace of transactions slowed in May following record‐setting sales in February, March and April,” said Toronto Real Estate Board President Tom Lebour. “Buyers who otherwise would have been purchasing a home in May moved more quickly this year, likely to get ahead of mortgage rate hikes.”

New listings were up 38 per cent annually to 18,940. The average price for May transactions was $446,593 – up 13 per cent compared to the average of $395,609 recorded in May 2009

"The gap between listings and sales has widened, which means there is more choice for buyers," said Jason Mercer, TREB's Senior Manager of Market Analysis. “The annual rate of price growth will slow in the second half of 2010, from the current double digit pace into the single digits.”
 
For more information or for a personal no obligation home evaluation please contact me at marianog@sutton.com or follow my tweets @marianogigante

April Experiences Record Number of Buyers and Sellers

Greater Toronto REALTORS® reported 10,898 sales through the Multiple Listing Service® (MLS®) in April, representing a 34 per cent increase compared to April 2009. There were also 20,683 new listings in April – a 59 per cent annual increase. Both the sales and new listings results amounted to new records for the month of April under the current Toronto Real Estate Board (TREB) boundaries.

“The GTA resale market is functioning properly. Sales were high as buyers continued to take advantage of affordable home ownership opportunities. Listings grew as home owners reacted to strong sales and price growth,” said Toronto Real Estate Board President Tom Lebour. “More balanced market conditions will result in sustainable rates of annual price growth in the second half of 2010.”

The average price for April transactions was $437,600 – up 13 per cent compared to the average of $385,641 recorded in April 2009.


“Home sales continue to be driven by many different segments of the market, with sales growth for all major home types in both the City of Toronto and surrounding 905 regions,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “Home sales will remain strong in the second half of 2010, but will slip from the current record pace as borrowing costs rise.”

Median Price

In April, the median price was $373,000, from the $330,000 recorded during April of 2009.

If you are thinking of selling, now will be the best time to get top dollar for your home for the next few years.  Selling now will also let you take advantage of the record low interest that won't last forever.

Please visit http://www.marianogigante.com/ to learn more. 
Follow my tweets @marianogigante

Rising Mortgage Rates - what does it mean?

Hi everyone,

These past few weeks have been extremely crazy in real estate particularly with yesterday's news that three big banks are raising interest rates on their closed rate mortgages.  This rise signals the end of some of the lowest rates we have ever seen.  What does this mean?

Well, consumers now have an additional dilemma, either stay flexible, hope for the best and ride out the next several months or lock in to long-term loans.


Most of the industry say that this is just the beginning of future increases that will make home ownership more expensive for the rest of 2010. .



Realtors and other experts say they ex­pect to see a flurry of activity over the next few weeks as some homeowners and homebuyers scramble to lock in their mortgage rates before they go any higher and should further fuel this extremely hot real estate market in the GTA by motivating home buyers eager to cash in on still low mortgage rates. 



For homeowners or homebuyers who are nervous about Monday's rate increases, the security of five-year, or longer, fixed loans may be the best option, say mortgage experts.  "If that (rising rates) causes you discomfort then per­haps a fixed rate's where you want to be," said Robert McLister, a mortgage planner and editor of the Canadian Mortgage Trends website.  "If you're closing in the next six months, I suggest people do that quickly."

The changes affect closed mortgages with terms of three, four and five years at RBC Royal Bank (TSX:RY), Laurentian Bank (TSX:LB), and TD Canada Trust (TSX:TD). Rates for mid-term mortgages like these tend to reflect the banks' borrowing costs on bond markets, where mortgage loans are financed.

Other banks are expected to follow suit.



The biggest increase announced Monday affects five­year mortgages. All three banks are hiking their posted rate by six-tenths of a per cent to 5.85 per cent from 5.25 per cent. That means a homeowner taking on a mortgage of $250,000 at the new posted rate of 5.85 per cent over a 25-year amortization period would pay $1,577 a month. Prior to Tuesday's hike, that mortgage would have cost $1,489 a month, or $88 less.



Many people with decent credit history who are ap­plying for mortgages can negotiate better than posted rates.



The Bank of Canada is expected to begin raising lend­ing rates this summer as it moves to fight growing infla­tionary pressures in the economy. The bank has kept its key overnight rate at a historic low of 0.25 per cent for more than a year to help stimulate the economy.



The latest increases reflect real-time market inter­est rates, which usually signal future central bank rate jumps months in advance.


Now is the best time to sell your home and get into a new one.  Homebuyers are eagerly seeking homes in Olf Meadowvale Village, Levi Creek, Churchill Meadows, & Sheridan Homelands.  Don't miss your chance to get into your dream home while you can still afford it while getting top dollar for your home. 

Please visit http://www.marianogigante.com/ to learn more or follow me on my twitter for more market updates.
www.twitter.com/@marianogigante.

Happy househunting everyone!
Mariano

Mortgage Brokers Demystified

What is a mortgage broker?


Simply stated, a mortgage broker is an agent for lenders in much the same way an insurance broker is an agent for insurance companies. Mortgage brokers act as agents for banks, trust companies, credit unions, mortgage corporations, mortgage investment corporations, finance companies and individual private investors. Some mortgage brokers are exclusively lenders of their own money and provide a direct source of mortgage funds (a topic to be discussed in a later issue). Mortgage brokers are trained professionals that have to meet a satisfactory educational requirement before they may become registered. As such, this requirement ensures you are being provided with a duty of care, a working knowledge of mortgage products and a standard of service to meet individual needs.

So, how would I benefit by using a mortgage broker?


Using the services of a mortgage broker for the first time usually results in the following testimonials:


I originally thought you only used mortgage brokers if you couldn't qualify at the bank….I was wrong.


I didn't feel intimidated or left in the dark for days on end wondering if I would qualify;


My mortgage was approved the very same day I applied;


I didn't realize there were so many terms and conditions that vary among the different institutions. My mortgage broker took the time to explain them to me;


I didn't realize many mortgage products and discounts were available exclusively through mortgage brokers;


I always thought you had to pay fees but because my mortgage was approved based on my credit history and income, there were no lender or brokerage fees charged;


I didn't have to leave my home or take time off work to apply;


The broker clearly explained the interest rates, prepayment privileges and other important terms and conditions which helped clarify some of my many questions and helped save me a great deal of money as a result;


Within five minutes, the broker explained how much of a mortgage I qualified for;


Within five minutes the broker told me that I had enough income to qualify for my $160,000 condominium purchase;


The application process was pleasant and over the telephone;


I didn't have to take the time to shop financial institutions for the best mortgage myself, the broker did everything and got me what I wanted;


The broker was always accessible on evenings or weekends when I needed an important question answered before making an offer on a property;


What will the mortgage broker need to know? As you probably already know, lender terms and conditions are not created equal. So, whether you are purchasing a property or refinancing an existing mortgage, there are many factors to take into consideration. A quick analysis of your personal situation by a qualified mortgage broker, lets him/her know where to shop the market. Some things he/she will need to know are:



Net worth (i.e. your assets less your liabilities);


Income (i.e. income from employment or self-employment);


Credit history (i.e. your payment history with your other creditors, loans credit cards etc.);


Property type (i.e. Residential, Land only, recreational, remote location etc.);


Down payment amount;


Once your application is complete, the mortgage broker knows where you will qualify. With the click of a few buttons, he/she can tap into the vast network of computers which connect lenders and brokers electronically. As mentioned above, the broker can obtain rate discounts for you that you cannot obtain yourself.


Where will your next mortgage financing experience be?


Volumes of detailed important information are available to consumers right now but do you have the desire, time or where-with-all to effectively examine what's out there? It can be a daunting, frustrating task. To limit your frustration, consider using the expertise of a qualified and knowledgeable mortgage broker to help you understand the mortgage process and meet your financial needs.


Remember to choose your Mortgage Broker carefully, don't be afraid to interview a few and find the one you feel most comfortable with.
 
For some of the best mortgage rates in the market don't forget to visit www.marianogigante.com

Great Semi in Levi Creek for Sale!

This Upgraded 3 Bedroom, 4 Bath home with over 1,674 aquare feeet of gracious living space has over $50,000 in upgrades.  Upgrades include

• Hardwood & Marble Floors
• Oak Stairs
• Tall Baseboards And Wide Trim,
• Pot Lights
• Finished Basement(500+Sqft)
• Shed
• Patterned Concrete Front, Side, Back And Landscaped.

This wonderful family home is close to top ranked public and private schools all highways and great shopping at Heartland Town Centre.  Live right near all the amenities and beauty of Old Meadowvale Village without paying Old Meadowvale Village Prices. 

See pics of this fantastic deal at http://youtu.be/uAVajDM6eyI


This home is curently leased with great tenants until June 1 2010. Tenants who ore willing to say if needed.  Owner And Agent Do Not WarrantRetrofit Of Basement.

This house is a great deal and won't last long in this market.   Call me today at 416-256-7000 or visit http://www.marianogigante.com/ for more details on this great listing.

Ever Wonder What Your Neighbours Are Really Like?

Sorry everyone, these past 2 weeks have been crazy busy. I have some great listings in Mississauga that you can find on www.marianogigante.com if you are interested.

I found this neat little tool called Prizm C2 today from Environics Analytics. You type in your postal code and it gives you a quick analysis and puts your neighbourhood into 1 of 66 clusters. It could be a great little way to further scope out a neighbourhood during a home search.

Here is the official description below;

"With its 66 lifestyle types, PRIZM C2 provides insights into the behaviour and mindset of Canadian consumers. The second generation of our popular segmentation system, PRIZM C2 has been updated with the 2006 Census, newly released Social Values research and our 2009 Demographic Estimates and Projections."

PRIZM C2 can be found at the Environics Analytics website

http://www.environicsanalytics.ca/

For the record, I am cluster 11. I found mine to be spot on when I look at our family and our neighbours.

What are you? Do you think your cluster reflects you and your neighbourhood?

As always, feel free to visit www.marianogigante.com or follow my tweets www.twitter.com/@marianogigante

Making Offers in a Hot Market

These past few weeks have been extremely busy and in a hot market as we have been seeing, many houses are now again going to multiple offers. I have had clients who have lost out on homes due to not listening to professional advice and being afraid of “overpaying”

In market hotspots such as Old Meadowvale Village, Levi Creek, Churchill Meadows & Sheridan Homelands offers must be approached very carefully to ensure that you win in a multiple offer situation.
These include;

1. Come prepared with your best price but do your research carefully. Look at other properties in the area that have sold and their upgrades – compare with the property you are bidding on and know the true value of your potential home.

2. List Price doesn’t equal purchase price. Many homes in hotspots are priced fairly or even below market value to obtain multiple offers. Don’t bid lower than asking just to feel like you are getting a good deal.

3. Consider adding things to your offer to make it more appealing to sellers. Match your closing date as closely as possible to what the sellers need or include a generous deposit cheque to make your offer more attractive to sellers. Where offers are very similar, including these important elements may help you win the deal.

4. Listen to your Realtor®. They know the true value of the home and will work as hard as possible to get you the deal.

5. Ensure you are comfortable with your offer but do not miss out on a great home in order to save a few dollars.

Following these simple steps will ensure you win in a multiple offer situation and get into your dream house quickly.

For more information or to contact me with any questions please visit www.marianogigante.com or email me today at marianog@sutton.com

Things to Think About When Buying a New Home

"Home is an invention on which no one has yet improved."
- Ann Douglas

So you've made the decision to buy a new home. In the excitement of beginning a search for a home, many people jump right in without considering all of the elements that make a home truly right for them. It is a complicated and personal process. An unsuitable choice can be costly in many ways - you could lose money, waste time and effort relocating, or even put your family's health in danger. The following are some things to consider when identifying your ideal home and planning a successful purchase.

Choosing a Neighbourhood
Remember that you can renovate a house but neighbourhoods take years to change and there's no guarantee they'll change for the better! On the other hand, if you really love a certain part of town but it's out of your price range you may want to consider buying a less-than-perfect home then doing renovations. They can be quite expensive so try to make improvements that will be reflected in the value when you sell. These renovations have been found to have the greatest payback: kitchen 70%, bathroom 68%, interior painting 65%, exterior painting 62%.

Tips on choosing a suitable neighbourhood:

•When you find a locale you like, walk around it. See what it's like from street level.
•Are the people friendly?
•Are there stores and recreation facilities nearby?
•Contact the local school board if you have children. Do local schools provide good education opportunities? If applicable are there private/religious schools?
Figure out what you can afford:
Consider how much you currently need to live on and how much you actually have leftover every month. People have a tendency to create budgets that look nothing like reality - when we should have $400 left over, for some reason we only have half that.

Consider these basic costs of buying a new home:

•Most homes require a down payment of several thousand dollars.

•Monthly mortgage payments can be 1/3 of the average person's annual net income.
•You may want to pay for a home inspection. Consider more than just the structure. Ask the inspector to check for asbestos, radon, animal infestation and lead.
•Moving costs can be from a couple hundred to several thousand dollars depending on the distance of your move and the quantity of belongings.
Financing
The sort of home you can afford depends on several things:

•How much you have saved

•How much you earn

•Past earnings
•Your credit rating
The past has a way of haunting new homebuyers. If you are concerned about your credit rating you can usually get a free copy of your rating report from your local credit bureau. Normally all that's required is a couple pieces of photo identification. Remember, a few late payments or disputed bills can besmirch your record. Try to pay everything on time and don't have more than two credit cards. A bad rating can spell trouble getting a mortgage or you end up paying more for your mortgage as a form of insurance to the lender.

Pre-Qualification
This refers to documents from a bank or other lender indicating that you have the financing to back up your offer on a house. Pre-qualification is free and most lenders are happy to sit down with prospective buyers and figure how much they can afford. Having an accurate idea of price range will save time in the bidding process. If there are several people making offers on your dream home, being pre-qualified can make your offer more attractive since financing is not in question. It is important to note, however, that lending institutions will base their final decision about a mortgage on ability of the buyer to service the debt as well as the property. Most lenders state that the two components go hand in hand - the buyer with the ability to repay a mortgage and the property as security in the event of default on payment.

By taking all these points into consideration, you can worry less about the process of buying and get busy finding your ideal home!

Please visit www.marianogigante.com for the best new listings and real estate resources you will find.