Holding Steady in an Uncertain Market: The Rural Boom

Spending time in your family home in the wilderness a few months is restorative.  For many, hunting and fishing can make time stand still, in a good way.  

That’s why people love my neck of the woods.  Bancroft is a sanctuary for many, even those who don't live here year round.  

Make no mistake though, the real estate market has changed in rural areas.  It will change more.  The Globe and Mail reported in March on the growth of towns within 100km of the GTA.  They're becoming commuter towns, even if the commutes are crazy. Then the Toronto Star reported just this week on the cost of recreational homes and cottages in Haliburton soaring.  It is happening in Bancroft.  We are no longer an affordable Muskoka.  

Vacant land is becoming difficult to get hold of on some of the most popular lakes in the Bancroft area, like Paudash and Baptiste.  

Should you wait much longer to get your lake home search started?  

Or should you hold out on your higher price if you have such a property for sale?

Will small lake cottages even be an option in five years?

In many areas, the answer could be no.

I know people who have been waiting to buy until the bubble bursts.  They've been waiting almost a decade.  I know people who become rushed to sale, convinced the peak is here.  They missed out on higher returns.  We don't know.  The cooling of the GTA market, by legislation, will come to mean something for rural Ontario over the next few seasons but luxury properties could be safe for yet a few more.  

I think now is a good/great time to sell but I can't tell you it's the best time to sell.  We will only know that in hindsight.  You will do well if you sell now. 

Now is not the ideal time to buy, but things could get more expensive.  The march of time shows us this.  Move now, but go in with a good down payment and lock in low interest rates.  That is the best way to protect yourself from volatility. 

Change is not necessarily a bad thing.   Our industry has dealt well with the shift to digital real estate searches on REALTOR.ca and clients are better informed of their rights and obligations now.  Cell phones allow me to handle multiple transactions at once.  I can get signatures from clients around the world to ensure deals get done in a timely manner.  It's good!

My hope is that residential homes that aren't as recreational, and not as attractive to city buyers, remain affordable and attached to the cost of living here.   

I have been adapting to change in this industry for almost 30 years.  I will continue to change and grow.  I've seen three recessions and uncertain times in global markets at least eight other times.  I look forward to helping you through this next round. 

Check out RECO for more information on the changing real estate landscape.

Warmly, 

Sharon

The Pen is Mighty: Your Guide to Fine Print in Real Estate

I wonder if I would have even needed glasses were it not for all the fine print I’ve read over the years in real estate.  Yes, the pen is mightier than the sword, even when the print is as tiny as it is on real estate contracts.

Many people assume all the paperwork involved with buying and selling real estate is always perfect. After all, these are professionals drawing up the contracts, right?

Right, but professionals are humans too. And we know that humans are prone to….. mistakes.

So when I tell you to read all the fine print (actually, read the big print as well), it is mandatory. You are signing contracts for large amounts of money. Do not take these binding documents lightly.  I ask all my clients to look closely, ask questions and never sign something they don't understand.

It’s one thing to sign your child up for tae kwondo instead of ballet.  It’s quite another thing to sign up for a mortgage that has holes in it.  Maybe the area in which you are buying doesn’t allow certain sized homes on less than two acres?  Or you sign up for a mortgage five years longer than you had originally intended.  Not a good way to start your retirement!

What if your property taxes are not included in the monthly mortgage payment like you were told?  Terrible things like that really do happen if you don’t pay attention. Or if you have a real estate agent asleep at the wheel.

Being sharp is part of my promise to my clients. The reason is, often I am called on by them to answer questions about contract details.  Sometimes, answering these questions requires some research.  I do that part too.  This afternoon, a property that I have almost sold half a dozen times has a new interested party.  But they have really good questions, ones I haven't been asked.  So I am digging and working to make sure everyone understands the deal.

Clients trust me to be in their corner to fight the devil that hides in the details. And if I can’t answer them with absolute certainty, we will call upon our trusted real estate lawyer to help us.  You never want a Realtor® too proud to look it up or pick up the phone.

At the end of all real estate transactions you will receive a copy of the contract. Make sure you have plenty of room in your filing cabinet by the way. But having a copy won’t do much good if you failed to read it carefully, or left questions unasked to your Realtor®.

Remember: The pen is mightier than the sword even in the world of real estate. And guess who is holding that powerful instrument at the end of the day?

That’s right. You are.

So make sure you don’t use it until you are 100 percent sure you know what’s on the papers in front of you.

Each and every one of them.

PS: You should get familiar with the many real estate forms listed below.  They are all standard for real estate transactions in Ontario.

Click on a form title in the list below to download. You need Adobe Acrobat Reader to view these forms. Acrobat Reader is free to download here.

•    Agreement of Purchase and Sale
•    Buyer Representation Agreement
•    Buyer Customer Service Agreement
•    Confirmation of Cooperation and Representation
•    Listing Agreement - Authority to Offer for Sale
•    Seller Customer Service Agreement

Check out this resource detailing consumer data on not reading sales contracts fully and this RECO resource cited in this post.

Don't worry.  I have been doing this for almost 30 years.  I have your back.  Call me or click here to book a conversation or showing at a time that works for you.

Thanks!

Sharon

Is house flipping on TV anything like real life? Kind of.

Wiki

Yes, I watch home decor and renovation shows.  I too can get pulled into some of these reality shows about easy real estate deals on TV. Flipping houses like you're making burgers and turning a mundane backyard into an oasis in 30 minutes….wow!

It’s hard not to fall in love with these programs.   But I know the reality and it can be quite satisfying, but rarely do projects tie up neatly in a little bow. 

We live in the real world of real estate in Bancroft where not everyone working on the remodeling crew can be on the cover of a fitness magazine. Are these television contractors personal trainers or builders?

I don’t want to sound negative about these reality shows featuring home buying and selling.  There are some similarities with real life.  The reason everything goes so smoothly on a show about renovating a home or getting a house sold in three days is because of the unseen magic behind the cameras.  

It’s the team in the background, off camera that makes everything come together.

Likewise, I see this happen week after week as I connect buyers and sellers. I have had great success selling homes for motivated sellers. The same holds true for the nice folks I’ve assisted in buying their first house or a cottage for their family or retirement dreams.

And yet, there is the unseen with me as well.  I am not a one woman show.  I too have a team.  My team is made up of a network of solid people I’ve met over the years in my community.

From my fellow Realtors®, to contractors, to local shops and restaurants, to community leaders and local newspapers, I have a slew of wonderful people who make my job possible. 

In the real world, there are speed bumps on the path to buying and selling homes. We can’t just edit out the problems that pop up here and there.  That could be stressful if I were going at this business all alone. However, these challenges are hardly ever a big deal because I know I am not in this business by myself:

1. I have inspectors I can call on a day’s notice.
2.  I have go-to service providers who know home maintenance like the back of their hand.
3. I have two local newspapers where I advertise for my clients, and the papers help me with graphic design and branding. 
4. I have help answering my phone and organizing my contacts. 
5. I have mortgage brokers, lawyers and environmental service companies that help structure deals in our region. 

Now, don’t get me wrong. The network I have behind me didn’t happen overnight like an HGTV backyard waterfall installation.  It’s taken me decades to learn the ins and outs of the real estate scene in the Bancroft area. Along that journey, I’ve met quality people whom I can trust.

They make me look good and make life easier for the clients who trust me with their real estate deals.

You can’t believe everything you see on TLC when it comes to home remodels and house flipping.  There is no doubt however, that the teams behind the scenes of these shows help make them a hit.

Similarly, my team has helped me clear the path for plenty of customers. We may not work out a deal in 30 minutes like on TV. But we work together to make the process a pleasurable one for all involved.

See you soon!

Sharon

Does staging a home really work? Sharon White gives you the goods.

Be Home Smart: What to Look for Before You Buy

Does Staging a Home Really Work?

There is a great deal of strategy that goes into selling a home, and a huge part of that strategy is staging.  However, you must understand what staging actually accomplishes before you put too much faith in the process.

Raising the Perceived Value of a Home

Raising the perceived value of real estate is not the purpose of staging.  Unless the staging furniture and accessories are a part of the deal, no savvy buyer is going to be fooled by an extravagant arrangement into putting more value into the base home and paying more for it.  As a matter of fact, suggesting this even indirectly may offend a more experienced type of buyer, and it definitely should not be done for higher level properties.

What is the Purpose of Staging a Home?

Instead of looking at a home staging operation as a value grab, look at staging as a way to improve the quality of the potential buyer. Because you are showing how a home could look when properly furnished, you give a strong visual to a buyer with the money to actually make that look happen.  Although you be less likely to squeeze more dollars from the buyer as a result of staging, you WILL have more buyers with money looking at your property.  This puts you in a better position to sell over or above asking.  You end up gaining money from a shorter time on market, a smoother closing process and less negotiation over repairs and other particulars.

The Difference Between a Home Stager & Staging Photographer

Properly staging a home is done in two separate steps.  A professional home stager is the equivalent of the merchandising agent for your home; this is the person with the interior design experience to properly match colors, space the home, offer the advice to remove family photos from the stage, etc. 

A staging photographer will find the best angles and lighting for the staging once it is set. You should not look to the photographer for tips on interior design; this is done during the first part of the process! Make sure that you understand the two distinct stages of staging so that you get the best look for your impending sale.  Home staging definitely improves your chances of making a real estate deal smooth and profitable.  

If you have any questions about home staging, give me a call.  We can connect you to the right people, and I certainly integrate some home staging guidance into my support for clients.  I am here to help you improve the volume and the quality of buyer looking at your property so that you have an easier time selling!

Warmly, 

Sharon

Explained: Real Estate Jargon for Newbies!

The 5 Industry Abbreviations that First Time Home Buyers Need to Know

To get the best deal on your starter home, it can seem like you need an encyclopedic knowledge of local real estate, a great agent to navigate the deal, and a solid grasp of real estate lingo.  If English is your first language, imagine the entire closing table discussion taking place in Korean. Do you think you might lose a few bucks in the exchange? 

Lingo is that language that makes the small print even smaller.  Here are 5 industry abbreviations that you need to know about as a first time home buyer.

CMHC - The Canada Mortgage and Housing Corporation

The CMHC acts as administrator of the National Housing Act for the federal government and sells many mortgage insurance products that may help first time home buyers more cost effectively purchase a home.  If a buyer places less than 20% down on a home, an extra insurance payment must be made to the CMHC, and this is the organization that regulates many of the uses of a particular property.

xB/xB - The Bedroom/Bathroom Count

Rewind back to algebra class and look at the above abbreviation like a math equation. "X" is usually a variable that gets replaced by a number, right? You have undoubtedly seen a listing in the formal "3B/3B" or "2B/2.5B." This is the number of bedrooms and bathrooms in a home, the most important rooms to consider when it comes to assessing value and determining the function of a home.

"3B/3B" is fairly straightforward - this is a home that has three bedrooms and three bathrooms. However, a listing such as "3B/2.5B" may be a bit confusing.  A half-bath simply means that the bathroom only has a toilet and a sink.  You may also see a listing with 2.75B or 1.75B, meaning one of the bathrooms has a shower without a tub.

f/fin bsmt - Fully Furnished Basement

If you are looking for a basement space that has the same amenities as a bedroom, then you need to look for the abbreviation "f/fin bsmt" or something similar.  A home may be listed as fully furnished; however, the basement is not included unless you see this abbreviation specifically.

Other helpful sites:

Here is a list of almost every real estate abbreviation I can think of, and it doesn't appear to be industry sponsored if that makes you more comfortable. 

I also like this list from the guys over at Bigger Pockets. 

And I am always happy to help you further, just send me a text at 613 334 5614 or call toll-free to 888-667-7653.

Happy searching!  

Sharon

Welcome to the Country

Welcome to the Country!

The Welcome to the Country blog series is a seven part review of some really essential ideas about rural real estate in Canada.    

Wayne and I are have been in business in rural Ontario since 1989 and we have sold thousands of country properties to people from urban areas all around the world.  The challenges of the transition are real but, in our experience, are so worth the effort. 

There major draws to rural living in Canada include:

Brilliant landscapes enmeshed in a natural world.  The northern lights are visible in October from most properties because our skies are relatively pollution-free.  Our lakes have excellent fishing and, just last week, I met a fisherman from Virginia at the Eagle’s Nest Restaurant who said he has been coming to Bancroft to fish for 40 years. 

A truly low cost of living.  We aren't far enough north to run into food access problems but far enough that we aren’t part of Toronto’s urban sprawl.  Property prices are a far cry from even those in more Southern areas like Peterborough and Barrie.  And coffee is just a little over a buck. 

A sense of community.  We have been so fortunate to have people move to Bancroft from all over the world.  They bring with them their talents and their time for community initiatives, like the Art Gallery and the Summer Theatre.  As a born-and-raised Bancroft person, I see the ways in which our town benefits from a mix of old and new.  A client who moved to Bancroft with his wife while in their early 60s remarked, “Everyone here cares about who you are, not your career or what you’ve accomplished.  It’s very refreshing.”  One of my favourite new places in town is “This is a Place for the Arts.”  It is a shared workspace and gallery.  The selection of paintings, photography and sculptures is clean, bright and so alive with the spirit of rural Canada.  We are so blessed to have them, and I would like to publicly thank the group of artists who founded the centre.  

Access to the essentials.  We live in one of Canada’s wealthiest provinces.  Like any large country with rural populations, ensuring that every person has fair access to health care, government programs, education, environmental protections and legal representation is difficult.  I am so proud of what our town has accomplished in maintaining access to these resources despite a changing, and aging, demographic.  Our population quintuples in the summer and our tiny town meets the demands every year.  Rural Canadians are used to these mighty efforts and newcomers will soon find that they also get along quite well. 

Our market research indicates that there are six groups of people moving to rural Canada. 

They share a respect for the natural world, an interest in cutting out the noise of urban life and a desire for affordable living.  These groups are:

• New Canadians:  People coming from India, Pakistan and China, in particular, are increasingly settling in the country.  The properties are affordable and there are real business opportunities, especially in franchising.  This is a really important source of diversity which absolutely enriches the fabric of our town.  My experience with clients who are new to Canada have always been positive.  I feel myself beaming with pride whenever I get to show off our country. 

Back Row Left to Right : Dipika (Deepa) Shaw, Ravi Shaw, Sarah Vance with her youngest daughter Laura Vance, Sukhan Bains, Avneet Bains, Deepu Singh Verma, Alok Verma
Middle: Tasha Shaw and Riya Shaw (twin daughters of Ravi and Deepa) Bottom: Suneet Bains, Lily Vance, Clara Vance, Yash Bains from living life in the slow lane by pradip rodrigues

• Retirees:  With longer life expectancies, retirement savings must be stretched.  There is little better way to do this than to reduce the carrying costs of a mortgage.  With our excellent hospital, our well-ploughed roads and our abundance of one-storey homes, this is a place where aging well is a real option. 

two of my special clients, john and carol kirby.  john and carol have given back so much of their time and attention to bancroft since moving here 12 years ago. 

• Minimalists and Live-Off-The-Landers:  People keen to live differently.  They make sustainable houses or micro-houses.  They adopt systems to minimize waste and don’t collect objects because they’ve got nowhere to keep them.  They can grow and create and that's what life is about for this community.  Also, their cost of living is so low that sometimes they don’t need to work in a traditional job.  They can grow their own sustenance and bring with them a great respect for our shared world.  

• Remote Workers:  My brother-in-law, Paul, was one of the earliest remote workers in the area.  Paul works for a technology firm in the GTA but has a completely decked out office that allows him to be a valuable asset to his team with a view of the lake.  It has worked out really well for Paul and his family and, increasingly, people are finding that their work can be done from anywhere even if they’re not consultants or independent contractors. 

• Essential Industry Workers: People in nursing, medicine, engineering, law and paramedicine.  The situation for teachers is more complex, as it is everywhere in Ontario, so there are less opportunities in education in our region.  Positions do still exist in the far north and will also evolve as the tail end of the baby boomers retire.  The job market for these essential professions in rural areas is relatively stable so a reliable income in a beautiful area attracts a lot of mid-career professionals.  

• Retournees:  This group consists of people who were raised in Bancroft but left to go to school, travel or seek employment elsewhere.  They’ve gone off to see what's out there.  They realize that their dollar goes quite far in the rural housing market and they miss the fresh air, being able to see the stars, park without paying and empty roads.  I was one of these people and, now, so is my daughter.  

These groups represent the future of growth in our community and we are so excited to be making the kinds of improvements needed to attract new residents.  

Do you see yourself in one of these groups? 

Leave a comment below because I would love to know why you selected Bancroft and how you came to a rural life.