Muddy York: Toronto Real Estate Blog

Entries from June 2009

Mortgage Uncertainty

June 30, 2009 · Leave a Comment

By Laura Fernandezmortgage-key

The economic landscape is weighing heavy on consumer’s minds these days. The recent increases in mortgage rates and bond yields have many wondering what is going to happen with rates, how soon they will go up and how much. With interest rates having come down to such unbelievably low numbers, it was clear that it would only be a matter of time before they started their hike upwards, where this will end up no one really knows.

Homeowners are in confusion as to whether they should lock in now or stick with a lower variable mortgage rate or whether now is the time to renegotiate their mortgage to try to take advantage of a lower rate for the long term. Aaron Gampel, Scotiabanks’s deputy chief economist stated ‘My crystal ball looks rather murky at that point.” “It looks more like a bowling ball” The truth is no one is certain what will happen and economic forecasters are staying away from making predictions. Ontario mortgage rates are currently ranging between 4.25% to 5.85% .

Rob Fairholm at The Center for Spatial Economics thinks the bond market has gone too far, he expects the 10 year bond yield will be down to 3.25 % by year end and rise no higher than 3.9% by 2010. Intertest rate forecasters are predicting that there could be a risk of inflation due to the coordinated global efforts  to stimulate economic growth. However Fairholm is not one who expects there will be a rise in inflation with the rise in unemployment and the general uncertainty.

Chief economist Craig Alexander at TD Bank Financial Group feels there should be no risk of price inflation or a resulting increase in interest rates  for the next 2 years. He predicts that US banks will be much more conservative in their lending practices until they have rebuilt their capital reserves which could slow down the recovery and also put off the risk of inflation.

Canadian Homeowners considering their mortgage options over the next couple of years should have time to consider their options.

Laura Fernandez is a sales representative with Royal LePage R.E.S./Johnston & Daniel Division.  Laura is a contributor to the Muddy York Real Estate Blog.  Laura’s website is located at www.laurafernandezrealtor.com.

Source:  Originally taken from an article by James Daw of the Toronto Star.

Categories: Mortgage Information
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Choosing the Right Salesperson to Market your Home

June 29, 2009 · Leave a Comment

By Erin Fritzbusiness-people

When it comes time to sell your house, your very first hurdle is to find the perfect real estate salesperson. However, with 1000’s of salespeople in Toronto alone, choosing just one becomes very difficult. As everyone knows, good marketing is the key to a successful business or product. It is very important to remember that putting a “for sale” sign on the front lawn does not sell a house alone. A home needs to be marketed, just like any other product and it is important to choose an agent who is passionate about exposing your home.

There are some key things that you, the consumer should look for when you interview agents to list your house. The first thing is picking someone who you trust to sell your home. A good agent should prepare a listing package, personalized with information about your home, your neighborhood and their company. A listing package is important because not only does it show that an agent has done their homework, but that they are interested in gaining your business.

The second thing you should ask to see prior to choosing an agent is copies of old feature sheets. You want to ensure that an agent has experience with home marketing, and by seeing older feature sheets, you can get an idea of what to expect when they market your property. It is a good sign if you see a variety of property types and a variety of different feature sheets, as it shows the range of the agent’s experience and knowledge of property.

Third, it is very important to ask questions. What is this agent going to do for you? What is this agent going to do to sell your home for the maximum amount? What suggestions does the agent offer you?  Is the agent willing to spend money to help you market your property? You should choose an agent that has a good website, with up to date information and listings. The internet is becoming the number one source of information, and many first time buyers are taking to the web to find listings.

A good agent will advertise your property and open houses on their own website, on MLS, Realtor.com, and even on a site such as craigslist. Do not be afraid to ask which website your home will be featured on. Some agents may even suggest buying a domain name for your property. This is a great idea because you can direct family, friends and potential buyers to a website that is advertising your home alone. Another place where agents can market your home is in newspapers and realtor magazines. It is important to ask whether your property will be featured in print media and if so where it can be found. If you live in Richmond Hill, it’s a good idea to place an ad in a local newspaper to encourage local residents to see your property. Another way agents can market your property is by mailing out a “Just Listed” card to the homes in your area. This small post card can be a very effective way of reaching potential buyers, by providing them with some information on your home.

Lastly, does the agent have any tips to make your home more appealing to the consumer? A good agent should suggest you de-clutter and de-personalize your home. Don’t forget, you want people to see a home they want to live in, not the home you do. Some agents may suggest using a home stager. Although this too can be very effective, it’s not always necessary. Make sure if an agent is suggesting this, they have a competent stager they work with frequently. Remember there are never any stupid questions and you are entitled to straightforward answers. Just be upfront and you will be able to choose an agent that best suites you and your home sale.

Erin Fritz is a marketing consultant and a regular contributor to the Muddy York Real Estate Blog.

Categories: Commentary
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Muddy York Update – TREB Market Update – Mid June 2009

June 28, 2009 · Leave a Comment

trebThe Toronto Real Estate Board released the mid June 2009 statistics for the Greater Toronto Area.  The number of sales to date was 5,185 in the first half of the month compared to 4,374 in mid-June of 2008.   The average price for the GTA was $398,542 mid-May of last year compared to $407,716 this year.

In the Central District of Toronto, the average price was $449,946 compared to $439,469 last year.  The number of sales to date was 2,023 compared to 1,733 in mid-May of 2008.

Source: Toronto Real Estate Boar
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Categories: Market Information · Muddy York Quick Tip
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Top 5 Canada Day Fireworks Celebrations in Toronto

June 26, 2009 · 1 Comment

By Morgan Dumas and Diti Dumas

With Canada Day quickly approaching, deciding where to take your friends and family to view the most enjoyable fireworks show of the city can be quite the challenging task. Before making your final decision, visit: www.toronto.ca/labour-relations/index.htm to ensure your fireworks display of choice is still happening.canada day

A Wonder of Fireworks at Canada’s Wonderland

Canada’s Wonderland, located just north of Toronto, will be hosting a fireworks show at 10pm on Canada Day like none other. Designed by FX WORXS, one of Canada’s leading creators of pyrotechnics, fire works and special events. The show is planned to feature 4000 explosions and customized fireworks designed just for Wonderland. As an added bonus, the show will be set to music which will feature some of Canada’s biggest hits. Canada Day Fireworks are included in the park’s admission and it is an event you and your family won’t want to miss.

Ontario Place’s Fireworks Extravaganza
On July 1st, Ontario Place will be in the midst of its Canada Dry Festival of Fire which includes three themed nights of firework displays. On these days (June 27th, July 1st and July 4th), Ontario Place’s attractions will be open from 10am-9pm (8pm for the water park) and the grounds will remain open until 11pm with regular admission prices in effect. If you don’t want to visit Ontario Place during the day you can purchase a ticket for the reserved bleacher seating during the displays of fireworks. For a less costly evening, you can park or walk nearby Ontario Place and keep your eyes focused on the sky to see the spectacular show.

Downsview Park
Canada Day activities will start first thing in the morning at Downsview Park (located east of Allen Rd. and north of Wilson ave.) including free rides, games, face painting, parking and fun for all. Visit Downsview Park after 10pm to see an explosive array of fireworks that is sure to beat last year’s show.

Canada Day Ribfest at The Rotary Club of Etobicoke

The Rotary Club of Etobicoke hosts a huge family festival in Centennial Park (located just west of Renforth and Rathburn) each year to commemorate Canada’s birthday. Enjoy live music, rides, carnival games and best of all, a wide selection of ribs! Ribfest runs for an extended version of the long weekend, from June 26th to July 1st.

Fireworks Display for Free at Ashbridges Bay

The Firework Festivities start after 9:30pm, but make sure you arrive early to get a prime seat on the wide expansive beach. Don’t forget to bring beach chairs or blankets as the evening may be chilly!

Diti Dumas is a Sales Representative with Royal LePage R.E.S. Ltd./JOHNSTON & DANIEL DIVISION, Brokerage.  Diti is a regular contributor to the Muddy York Blog.  Diti’s website is located at www.ditidumas.com.

Morgan Dumas is an aspiring writer and journalism student from Ryerson University in Toronto.

Categories: Neighbourhood Information
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Undertaking a Home Repair

June 24, 2009 · Leave a Comment

By Carson Dunlop & Associates

Let’s start by differentiating between a home improvement and a home repair. A home improvement, as the name implies, means improving something. It is usually a renovation to create more space, change the layout of the house, improve energy efficiency, or to make aesthetic changes. This report will deal with the simpler topic of home repair–basically replacing things that are worn out or fixing things that are broken. Here are some very basic rules to follow.

Know what you want done.If you are replacing a worn out furnace, for example, do some research to find out whether you want a mid-efficiency furnace or a high-efficiency furnace. If you are repairing a roof with a leaking valley flashing, determine whether you want the valley flashing replaced or just patched to last a few years until the whole roof needs re-flashing.

If you know what you want done, you can compare apples to apples when reviewing quotations. Otherwise it would be very hard to compare various quotes if every contractor has a different repair strategy.

Be prepared to stick to your guns. Many contractors will tell you that the job is much bigger, much harder, or it must be done his way (because if you don’t, it will be dangerous, or much more expensive the next time).

As home inspectors, we are often faced with contractor opinions that differ drastically from the recommendations in our reports. In most of these cases, the contractor is proposing unnecessary work.

Find at least 3 experienced, reputable contractors who are capable of doing the work.This may sound easier than it is. While it is best to rely on personal referrals from people you trust, these referrals must be taken with a grain of salt. Former customers of contractors are not usually in a position to comment on the quality of the installation of a furnace, for example. Also be sure the type of work that you are planning to have done is similar (in size and scope) to the work done for the person providing the referral. Many contractors who are geared to do major renovations are not well suited to do minor repairs and vice versa.

Obtain 3 written estimates.Our experience has shown that contractors quotes can vary as much as 300% on any given job. This is sometimes due to different perceptions of what needs to be done. This can be avoided by following Step 1 carefully. However, sometimes the variance is simply the result of how busy the contractor is.

Get three references from each contractor.Better than three references is a list of the recent clients that the contractor has worked for. That way you get to choose who you would like to select as a reference. Follow up with these references bearing in mind the comments in Step 2.

While you are at it, ensure that the contractor has appropriate licences and insurance.

Choose the contractor.Don’t necessarily base your choice on price alone. Look carefully at what has been included in the estimates. Select the contractor with the best reputation, provided that the price for the job is fair. Avoid paying cash. The benefit of a cash deal is typically far greater for the contractor than it is for the homeowner.selecting renovator

Have both parties sign a contract.The contract should include a complete description of the work. It should also include details as to who is responsible for obtaining permits (if there is any doubt regarding the necessity of a permit, contact your local building department).

The contract should have a start date and a completion date. (On larger contracts, sometimes a penalty clause is included for each day the job extends beyond the completion date.)

The contract must also contain a payment schedule. The schedule should not demand very much money up front and the payment should be based on stages of completion as opposed to pre-determined dates.

Remember to hold back 10% of each payment for 45 days after the completion of the job to determine whether any liens have been placed on the property (as a result of the contractor not paying his sub-contractors).

Also, don’t expect much in the way of a guarantee if you are simply asking a contractor to undertake band-aid repairs. Many contractors will not simply patch a damaged valley flashing, for example, even if they are 95% sure that the repair will work. This is because there is still a 5% chance that they will get complaints to fix a subsequent leak. In fairness, the leakage is not their fault. They just do not want the hassles. Consequently, many contractors will suggest repairs which are overkill (replacing the entire side of the roof, for example) to reduce the potential for complaints. A significantly lower price can be obtained, if you explain to the contractor that you expect him to do his best, but you aren’t going to make him responsible for the future of the entire roof based on a $300 repair.

Expect delays.Any type of home repair seems to take longer than was first predicted. If the repairs involve any sort of interior demolition, expect divorce dust.

Have a contingency fund.Many home repairs end up unearthing something else that requires repair. While this is very common, ask lots of questions if your contractor is proposing additional work.

Summary

We trust that the above information will help people in their dealings with contractors, realign expectations, and perhaps avoid pitfalls. And by the way, Carson, Dunlop & Associates Ltd. does not make recommendations for contractors.

Carson & Dunlop Associates is a consulting engineering firm which has been devoted exclusively to building inspections since 1978.  Their website is located www.carsondunlop.com and they can be reached at (416) 964-9415.

Categories: Home Inspection Information
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Pricing Your Condo or Loft Properly the First Time – A Toronto Real Estate Agent’s Guide

June 23, 2009 · Leave a Comment

By Evan Sage

There are very different tactics used when pricing a house versus pricing a condo or loft. Houses use frontage and depth as a base price for land value and then adjustments are made for the actual dwelling. The physical house can vary in value based on its age, quality, renovations, functionality, which way it faces and surroundings. If it is in really bad shape and has to be torn down it can actually detract from the land value. On a house it is good to get a pre-inspection done so that there are no surprises when you come to looking at offers.

Condo and loft properties rely heavily on the price per square foot of previously sold properties. Adjustments are made for the differences in time since the last sale, size, location in building, view, layout, outdoor space, parking, etc… Every condo building is fairly unique so price comparisons should remain within the building. Pricing a house gives you a bit more latitude with looking in different parts of a neighbourhood. Especially when pricing condos it is best to compare apples with apples with as few differences as available.

If it has been a long time since a similar property has sold you can look at a different building or area and see what the percentage increase or decrease has been over time, and apply that percentage to your specific property. It is important that all details are considered and assessed a value. Sometimes a property is just on the other side of the street but it backs on to the train tracks, so it won’t be a valid comparable.

After you have done your assessment there are some ways to double check whether it is accurate. It is common for a good real estate agent to ask a colleague to come through the property and give their thoughts. This is important if the property is very unique. We sometimes use the cities tax assessments and add a commonly accurate percentage to get the ball park figure. The common percentage is different for each neighbourhood and changes each year.

The average real estate agent will be involved in more home purchases and sales in a one year than the typical buyer or seller will be in their entire lifetime. Sometimes pricing is a combination of quantifiable variables and a gut feeling based on exposure and experience. A good agent is great with pricing.

Evan Sage is a Sales Representative with Royal LePage R.E.S./Johnston & Daniel Division. Evan is also a regular contributor to the Muddy York Blog.  Evan’s web site is located at www.evansage.com.

Categories: Commentary
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Weekend Walks: Leslieville and Astronomy in Toronto (June 20th)

June 19, 2009 · Leave a Comment

Date of the Walk:  SATURDAY, JUNE 20 – 10:00 AM
Leslieville: In the mid 1800s, gardener George Leslie began a plant nursery business near the shores of Ashbridges Bay. Hear about his contribution to Toronto’s forest and gardens as well as stories of some of the other residents and businesses of this one-time postal village.

LEADER: Joanne Doucette
START POINT: Ashbridge Estate, 1444 Queen St E, just west of Woodfield Rd
FINISH POINT: Leslie Grove Park, Queen St E at Jones Ave
LENGTH: Approx. 2 hours
FOCUS: Historical, architectural, natural
DIFFICULTY: Pavement, park grounds, one long slope

After the tour, join Heritage Toronto and local residents at Leslie Grove Park at 12 noon for a Heritage Toronto plaque presentation in celebration of George Leslie.

Date of Walk:  SUNDAY, JUNE 21 – 1:30 PM
Campus and Cosmos: Astronomy in Toronto

Celebrate the 400th anniversary of Galileo’s development of the telescope and the International Year of Astronomy with this tour exploring Toronto’s astronomical heritage. Hear about the people and organizations who have contributed to the development of astronomy in Toronto, an international centre
for astronomical research and education, on this stroll around the University of Toronto area.

LEADER: John Percy, University of Toronto
START POINT: Bloor St W and Devonshire Place (near Varsity Stadium)
FINISH POINT: St George St and Russell Ave, 1 block north of College St
LENGTH: Approx. 2 hours
FOCUS: Natural, historical
DIFFICULTY: Average walk on lawn, pavement, some rough ground

Source:  Heritage Toronto

Categories: Neighbourhood Information
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Dating Houses

June 18, 2009 · Leave a Comment

By Carson Dunlop & Associates

The hardest house to date is a link home. They appear to be single, but if you do some digging they’re actually attached.

As home inspectors, we have some tricks for figuring out the age of a house. In newer subdivisions we pick up dates from manhole covers, sidewalks, and curbs. This will give you an idea of when the subdivision was built. This obviously doesn’t work in older neighborhoods

Thermal pane windows usually have a metal strip which separates the two panes of glass. On that metal strip you will often find the manufacturer’s name, a CMHC number, and the date of manufacture. Again, this information must be used carefully. It will tell you the age of the window but not necessarily the age of the house. Check several windows. If they are all the same, you have just figured out how old the house is or the date when all of the windows were upgraded.

On houses built within the last 20 – 25 years, you will often find a sticker on the outside of the electrical panel indicating the possession date of the house. The Ontario New Home Warranty Program (in its earlier days know as HUDAC) placed these stickers on the electrical panel so that the warranty period could easily be established.

If you can be sure that the furnace or the water heater is original, the gas inspection sticker on either of these appliances is a good indication of the age of the house.

Porcelain plumbing fixtures usually have a manufacture date stamped into them. The easiest place to pick up a date is off a toilet (no jokes). If you remove the lid from the tank, the date will often be stamped on the underside of the lid and also inside the tank near the water line. The date is usually on the right hand side of the rear portion of the tank when you are facing the toilet. The date inside the tank is more reliable than the date on the lid because sometimes lids get broken and replaced. Again, you must look for other clues to convince yourself that the toilet is an original one. Otherwise, you have only established the date when the bathroom was renovated.

Certain building materials can be clues about the age of a house. These clues can vary dramatically by region. For example, in Toronto, virtually all houses with stone foundation walls were built before 1930. If you go to Kingston, Ontario, however, and ask when they stopped using stone foundation walls, the response might be “You mean they stopped using stone foundation walls?”.

In Toronto, brick foundation walls were also popular until about 1935. In other parts of the province, you will find no brick foundation walls at all. With the exception of custom built houses, most houses built with concrete block foundations are pre 1970. Most subdivision houses built in the 70’s or newer have poured concrete foundations.

Most brick houses in Ontario were solid masonry construction (two wythes of brick) up until the late 1960’s. Most brick houses built after 1970 were brick veneer construction (one wythe of brick with a wood stud wall behind).

If you stand in an unfinished basement and look up at the subflooring, you will find that most houses before 1965 used plank subflooring. After 1965, most houses had plywood subflooring, until the early 1980’s, when waferboard subflooring became popular (with the builders at least).

Aluminum wiring began to be used residentially in about 1965, however, it did not really catch on until about 1970. When was it banned? It was never banned, however, it received so much bad press, that aluminum wiring stopped going into houses in about 1978. To this day, aluminum wiring is still used to bring power into the house from the street!

As you are probably aware, knob and tube electrical wiring makes insurance companies very nervous. Knob and tube wiring was superseded by conventional modern wiring in the late 1940’s. Even though wiring looked modern through the 1950’s, it was not until 1960 that modern wiring contained a ground wire. Therefore, houses built before 1960 have two prong outlets as opposed to modern electrical outlets which are designed for three prong plugs.

Before 1950, supply plumbing was galvanized steel. Houses with galvanized steel supply plumbing also tended to have cast iron waste plumbing.

In about 1955, waste plumbing was more likely to be copper than cast iron. In the late 1960’s, the price of copper went through the roof. Waste plumbing very quickly became plastic. (It was this jump in the price of copper that also lead to the use of aluminum wiring.)

Old houses have plaster on the walls and ceilings whereas new houses are built with drywall. When did the change occur? While there was no magic day when plasterers quit and drywallers began, most houses built before 1960 were plaster and most houses after were drywall.

Dating houses can be helpful for a number of reasons; for example, the type of furnaces installed 20-25 years ago have a life expectancy of 20-25 years. Therefore, most houses built in the early 1970’s have a new furnace or will need one shortly. Most houses built in the early 1980’s were built with asphalt shingle roofs that lasted up to 15 years. Again, most of these houses either have a new roof covering or need one. The good news about a 1982 house in need of new shingles is that it couldn’t possibly contain Urea Formaldehyde Foam Insulation. It was banned in December of 1980!!

Carson & Dunlop Associates is a consulting engineering firm which has been devoted exclusively to building inspections since 1978.  Their website is located www.carsondunlop.com and they can be reached at (416) 964-9415.

Categories: Home Inspection Information
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2nd Annual Waterfront Nautical Festival

June 17, 2009 · Leave a Comment

June 19th to 21st, discover a weekend of waterfront adventure as Redpath Sugar
presents the 2nd Annual Waterfront Nautical Festival.

FESTIVAL Highlights:toronto waterfront nautical

Learn to Build a Wooden Rowboat On-site at the Toronto
Nautical Festival to give kids and adults the opportunity
to participate in building a wooden boat, Youth Boatworks
is a youth mentorship program providing kids with the
opportunity for skills enhancement and team-building
through construction, preservation and competitive
interaction with wooden boats.

Toronto Brigantine Sail Training Exercises Learn skills
such as rope coiling, sail-hauling and watch them climb
the rigging! Each year, Toronto Brigantine offers a unique
summer sailing experience for youth, training aboard
one of two 72 foot traditional Brigantines, Pathfinder
and Playfair. At the Waterfront Nautical Festival, it’s
your chance to try your hand at Tall Ship sail training
techniques with Toronto Brigantine!

Nautical Craft Demonstrations Watch traditional nautical
craftsmen at work, including a blacksmith, knot expert,
leather worker, barrel maker and woodworker!

HTO Park East Hospitality Area Enjoy music, food, and
refreshments in this tented rest area in the park, east end
of the Urban Beach, sponsored by Amsterdam Brewery and
Shopsy’s.

The Waterfront Hunt Take part in the Waterfront Hunt!
Nautical Guides meet every 30 minutes at the monument
in HTO Park East – or start hunting anytime at the
Redpath Museum in Queen’s Quay Terminal. Follow the
“Red Path” through HTO Park East and track the clues in
Queen’s Quay Terminal to win prizes and collect stamps
to qualify for a chance to win the grand prize package!

Redpath Museum Visit Redpath Sugar’s mini-museum
in Queen’s Quay Terminal for a “taste” of the history of
this 155-year-old company – or to get involved in the
Waterfront Hunt!
Be one of the lucky few to sail aboard a 35’ Niagara sail
boat departing hourly from HTO Park East.

First come first served – space is limited. Sat., Sun. only.

Categories: General Information
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