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

Buying a new property? Here is what you need to know.

The first rule of real estate is simple: Never make an emotional decision.  

The second rule of real estate is Murphy's Law: When things can go wrong, they will.  

Realtors® have a code of conduct. I take this very seriously.  It was developed in 1913 and there is a reason we still use it. 

“A REALTOR’s® ethical obligations are based on moral integrity, competent service to clients and customers, and dedication to the interest and welfare of the public. The REALTOR® Code, by setting high standards of professional conduct for REALTORS®, helps to protect Canadians’ rights and interests. It also creates a level of trust between REALTORS® and their clients.”

— Canadian Real Estate Association

But I also see my job as protecting people from the first two laws of real estate: making emotional decisions and avoiding calamity.  Here is the advice I give to my clients when I walk them through one of the most important decisions of their lives. 

Stay Focused on Your Needs.

I did not get into business to lecture first time buyers about how to compromise - I am all about making things happen on your terms.  And I've been doing it for almost three decades in the same small town.  Do not let anyone, and we mean ANYONE, drive you off of your square when it comes to your budget or deal-breakers.   Work hard, be demanding of your help, and stay focused on your budget and your needs - now is not a time to keep up with the Joneses.

We have come up with a pre-form specialized for the first time home buyer. Taking the time to fill this out will give you a leg up in the market and help to organize your thoughts.  Print it out and complete for every new place you look at. 

Get the Right Help.

The people that you bring into your life should be professionals at transferring your strategy into reality. If you find people lecturing you on what you "should have" or about "seller's markets," run, don't walk, in the other direction. There are always deals  if you look hard enough and have patience, and you should always reserve the right to walk away from any team member if they are not giving you the insight that you need.

Know Your Rights.

Learn The Real Estate Council of Ontario's Three Pillars of Protection: Insurance, Knowledge and Professional Standards.

“Knowledge

Real estate professionals must complete courses before they can enter the real estate sector. And once they are in the profession, they complete additional courses every two years to keep their knowledge up-to-date and their skills sharp.

Professional Standards

Brokers and salespersons are required to uphold professional standards that emphasize treating anyone involved in a transaction with fairness, honesty and integrity, and following rules and regulations that are there to protect consumers. In the rare instance that something goes wrong and you want to complain about your representative or the brokerage, RECO will investigate the complaint and take steps to hold the real estate professional accountable for their actions.

Insurance

Deposit insurance provides you with peace of mind knowing that your hard-earned deposit will be held in trust and insured against loss, insolvency or misappropriation by a brokerage.”

— RECO

Making your initial moves in a real estate market is hard, and you are entitled to the protection ensured by working with a great Realtor®. 

Know the Offer Process

This video from RECO is one I send to my clients to help them understand the high level details around the offer process and subsequent transactions. 

Happy buying and selling!

Sharon