In spite of the busy market with some local listings selling the day they're listed and others selling for well-over-asking price... others fail to sell and the listings expire or keep being renewed. Usually, the reason is quite obvious- the price is too high, the property is in disrepair, the location is a problem, nobody will insure or mortgage it or there is some stigma attached to the property.
Pricing too high is usually the result of a Seller having unreasonable expectations and Realtors who are willing to take the listing, regardless. There are a number of reasons that some Realtors will take an overpriced listing. Some are just happy to have a sign location to self-advertise- their name and phone number on the lawn will generate calls from ready buyers and they can sell other homes to them. Others are looking for the opportunity to have a high priced listing that they can advertise in print, fielding calls from buyers and selling them other properties that are worth the higher prices. More often, the Realtor hopes to use feedback from the market to convince the Seller to reduce the price.
Location, location, location. A good Realtor factors location into pricing and doesn't try to hide the fact that the property is next door to an auto-wrecker or doesn't have road access... keeping that detail for a surprise during the showing is usually a great deterrent to prospective Buyers who wonder what else you might be hiding. The same goes for properties that exaggerate their condition and disappoint Buyers who are unprepared or unable to invest in necessary repairs.
Stigmas include any non-physical, intangible attribute of a property that may elicit a psychological or emotional response on the part of a potential Buyer- for instance, a previous owner was a criminal, the property was a grow-op or meth lab, there was a murder in the home or on the property, the property was used as a brothel or chop-shop, there was a suicide at the property, it was formerly a funeral home or waste disposal site, there's a decommissioned mine on the property, the house was previously infested with pests or allegedly haunted... and the list goes on.
A competent Realtor does their homework and discloses the challenges that exist on or about the property. It's the law.
I recently blogged about the foreign investment issue that's driving house prices up in the Toronto Area. I had read a lot of articles relating the situation to what went on in Vancouver and, I have to admit, I found it all a little discouraging. While I've happily made my home in cottage country since 1992, I am a Toronto girl... and just yesterday I was thinking how you can take the girl out of Toronto but you can't really take the Toronto out of the girl.
While the cityscape has changed dramatically over the past twenty-five years and I don't often get there, Toronto is still my city and I've always seen it as the mosaic in which most Canadians take great pride. Toronto has always made space for new Canadians and while some find it easier to integrate than others, on the whole it's really a very friendly place, where people warmly make new friends. I've been chatting to some of my colleagues in the city... and they reminded me of this bright side to the Toronto market situation.
Apparently, there is a great deal of interest in the secondary school and post-secondary education available in Canadian schools- both the private and highly-rated public schools. In Canada, graduates are allowed work-visas for a period after their studies and this means that at least part of the family can move to our cities for several years- and, of course, they need accommodations. Purchasing a home is a smart investment and what better place than a beautiful city where you are bound to find others who know your first language fluently?
Bats are essential to our ecosystem. Some prey on night-flying insects that threaten agriculture, others play a major role in dispersing seeds and some species pollinate flowers. Our bat populations are threatened by habitat loss and pollution, roost destruction, diminishing food supplies, disease and fearful killing. Many species of bats, around the world, are in serious danger of becoming extinct.
Loss of habitat has forced bats to avail themselves of our attics, roof voids, vacant building and barns where they can find warm, safe roosts to live in and raise their young. Yes, the bats that infest your attic are females. They hang around in groups know as maternity colonies, often returning to the same location, year after year. Males generally roost outside in tree bark at the like.
Once in a while, a lone bat or two might take up residence under an eave, these are generally short-term visitors that will leave when the cooler weather arrives. Some people try to dissuade bats from this type of roosting, by suspending balloons or strips of aluminum foil which interfere with the bat's echo-location instincts.
Bat colonies don't cause real structural damage and they don't chew on wire, however, they can create a great deal of noise, odour and create a mess with their droppings. One bat excretes about 20 pellets a day and if you multiply that by hundreds or thousands of bats, it doesn't take long for you to have an attic full of bat guano. Even in average infestations, there are enough droppings and urine, in average cases it is enough to corrode wood and dry-wall and create a great deal of mold.
Of greatest concern is the potential for diseases such as histoplasmosis which is caused by a microscopic fungus that grows in bat droppings. When the droppings are disturbed the fungus spores become airborne and may affect the lungs. Rabies is also a possibility, although only a small percentage of bats is infected. Generally speaking, bats should never be held. If a bat is found, it should be left alone or moved with a shovel to someplace far away from people and pets. Dead bats should be disposed of in a plastic garbage bag.
If a person or pet is bitten by a bat they should be taken to a doctor immediately. If the bat can be caught, place it in a hard sealed container, such as a coffee can, and take it to be tested for rabies. Very thick leather gloves will protect hands from a bat's tiny teeth. If rabies is not treated it is always fatal.
So how do you keep your house from becoming infested? Bat houses do not lure bats out. It often takes years for bats to discover and adopt a bat house. There are ultrasonic devices that are supposed to deter bats, but they're not really effective and some experts suggest they may even attract bats. The only way to prevent bats from getting in, is to seal up any crack or opening with weather stripping, caulking or polyurethane. If you're already infested, don't do this until you've evicted the bats.
How do you know if you have a bat infestation? You are most likely to smell a strange odour first or hear them. You might notice staining, brown or grey streaks, near the soffits, the roof, chimneys and other areas that bat could use to enter your home. The stains are left by the oil on the bat's skin and/or their urine.
Check the attic for smelly evidence that looks like clumps of dark brown grains of rice.
& if you find it, now what do you do? Bats are protected by law. You are not allowed to kill them- besides it's very difficult to poison the food supply of flying insectivore. People who do try to poison bats are not just violating the law, they're risking creating a health risk as bats tend to live inside the walls and as the bodies rot there, they create bacteria.
Traps are ineffective and extremely inhumane.
The only safe, humane method for evicting bats is by exclusion. In other words, making it possible for the bats to leave the but impossible for them to re-enter the space. This means that you have to find out how the bats are getting in and out. They fly out at dusk and re-enter at dawn and make several trips in and out at night. They often crawl down walls and wedge themselves into gaps behind wooden beams, or facia boards.
Bats should never be evicted when there are young present and in winter, it isn't easy to be rid of hibernating bats. You'll need to find out what species of bat you have; because they all have different behaviours, including birthing seasons. It's best to contact the Ministry for help determining the species and figuring out when you can take care of the issue. Once they're out, seal up every crack, gap or hole in your house- paying particular attention to the roof lines, gable vents, peaks, soffit and facia gaps. Remember, bats don't chew, caulking and polyurethane sealants work well.
It's a misconception that bats are related to mice- they aren't and they don't chew. They don't generally carry rabies, either. Bats are not aggressive but unscrupulous pest control companies will take advantage of the common fear of bats and charge a lot of money to eliminate them. You can do it yourself, it's a difficult, but not impossible, process. It's important to understand that bats can leave a lot of droppings and urine, in average cases it is enough to corrode wood and dry-wall and create a great deal of mold. Interior clean up is very important!
You'll need to wear protective gear and use an air filter mask. The droppings should be lightly misted with a bleach and water solution before being shovelled, swept or vacuumed. People with lung problems should have someone else clean up the droppings.
You'll likely have to shovel out the droppings, into plastic bags and then vacuum the remaining bits. Then, you follow up with a special enzyme based cleaner that eats away the remaining organic matter and kills pathogens. Professionals use products like Bioshield, or Bac-a-Zap, there are a number of similar special cleansers.
And what to do with the bagged treasures? Bat Guano makes a wonderful garden fertilizer. Add one cup of bat dung per gallon of water, mix together, allow the mixture to sit overnight, then strain and apply to plants.
Locally, talk is that the real estate market is HOT. We're experiencing pressure from the squeeze that is happening south of us. It's a natural occurrence. The dollar volume of trading is actually down slightly- but that is due to the lack of properties listed and available. This means demand is higher than inventory which drives prices up. As I mentioned in another recent blog, there is an influx of foreign investment in Toronto, in response to the regulations having recently changed on the west coast, as well.
Just this morning, I noticed a couple of Facebook Friends had posted status comments that were interesting to say the least. These discussions seem to corroborate my suspicions about the local market and explain why so many city dwellers, particularly artists, are leaving the city and moving to places where they can not only stretch their dollars but enjoy a healthy and quiet lifestyle.
The first I want to share is a Toronto Facebook friend (a musician) who had written this status:
"We are losing our city to speculators and developers. It's a horror show."
The comments were interesting to say the least. The discussion seems to corroborate my suspicions and explain why so many city dwellers, particularly artists, are leaving the city and moving to places where they can not only stretch their dollars but enjoy a healthy and quiet lifestyle.
I found it such an interesting read that I'm going to share these comments below:
Well.. we have a long history of disliking developers.. They turn nice places into unliveable areas. Usually city council members are in cahoots with the developers. Money talks.
It's scares me
Making all these condos out of duck tape with no rent controls.
My realtor told me that the heavy Asian money is now moving into the GTA, now that they've changed the rules on the west coast. Last year, a townhouse like mine sold for $650,000. Last week, a similar unit sold for $906,000. gasp emoticon:-o)
Yes, it's a problem. But: Toronto is the economic engine of Canada. People want to live here. Would you rather that every piece of open land from here to Barrie get covered with suburbs? You don't like condos? Fair enough. You want nothing but single-family dwellings on big lots with yards front and back? Of course you do. That's what most people want - which is why, when they come on the market in Toronto, the price starts around a million bucks. Okay, you'd rather have fewer people and less economic activity in Toronto? Who will pay for the upkeep of the existing infrastructure, let alone improvements without new tax dollars? None of this is to say that better planning and design control wouldn't be a good idea, but once you've let off steam about how you don't like high-rises, what would you actually do?
RESPONSE to 4 from another Facebooker:
They're gonna do both.. What ever makes $
Who the hell can afford a million dollar mortgage? Have a look around. Young people don't have this kind of money. This will drive thousands out of this city as properties are sold
You said it, I don't know anyone can afford a million dollar mortgage! Homes that I can afford are minimum 3 hours away
gutting the city of young artists and the movers and shakers of tomorrow...
I have to move back into this! It is frightening!!!
It's truly sickening.
The only people who can afford a million-dollar mortgage are inheritors or those in the upper reaches of the finance industry. But they're almost never going to be first time home-buyers. Increasingly, they're foreign buyers (although it would be a mistake to overstate the number of those buyers). Toronto real estate is still pretty cheap when compared to the likes of Paris or New York. The economy is reasonably stable and Canada is a safe haven for investors. All this tends to increase prices as demand increases. You don't have to like it, but you can't deny it. There's certainly plenty about the present situation to dislike. On the other hand, the exodus of home buyers who can't afford Toronto prices is having a reviving effect on communities like Hamilton.
If only we took our cues from cities like Paris and Berlin who value and thank their artists for contributing so much to the fabric of their local cultures by federally subsidizing their artists.
'Artists' subsidies are an important part of France' - France 24
france24.com|By FRANCE 24 English
I don't disagree, but this is not an urban issue - it goes to the root of our national character. This country was founded, and is still largely owned and run by people who view the arts as a nice-to-have frill, not a must-have necessity. It's by no means as bad as it was, but we're a very long way from a European level of regard for the arts, and I don't think we'll ever get there. Especially if Conservatives ever regain power.
I've lived here forty seven years. I would like to live out my life in the city I love. It's not looking promising. If this keeps up it will be a city owned by foreign investors. There's no way in hell these homes are worth a million plus. Many are sh*t holes.
I would suggest that you stay in your current home for the rest of your life, assuming that you're mortgage free. Then it's only the creeping property taxes that will catch up to you. frown emoticon:(
This is a housing market bubble.
100%. As a rabid chart reader (stocks, bonds) this will end badly.
In fact, we are coming to the end of the euphoria stage - and this will turn blood red in the coming stage - which is aptly named "panic" Anyone purchasing a home yesterday, today and tomorrow will need to sit tight and wait for the mean reversion to bring back their home appreciation back up - and this takes 7-15 years.
This is not a supply issue - This is a cheap money issue.
I'm seriously considering 'cashing out' right now. I bought my place for $203K, I own it outright, and they're selling for over $900K now. I'm 56, and I'm happy to rent a brand new condo for a couple of years and then prepare to exit the GTA...
RESPONSE 14: I looked at 4 properties in NOLA but couldn't quite pull the trigger. Very inexpensive and just 12 to 20 blocks from The quarter. 15 minute bike ride. going back to soon to look again during Jazzfest.
That's what I did two years ago. Sold the house. It was like a lottery win. Renting now and regularly checking out properties in Prince Edward County but I love Toronto.
So nice to have our lives sacrificed on the altar of greed. By the time you pay your rent and your hydro, you don't have much left. Then you see those "property flipping" tv shows.
Once gone you won't get it back
I had to leave because of it. The whole thing gives me the creeps.
Same has happened here in Australia with foreign investors. The prices of homes are insane today.
And somehow the city of Toronto doesn't have enough money. Something isn't adding up.
Real estate, renovation and all the $bits that come with it, are the economy...It's all way too big to fail, so we juice it with minuscule rates, marketing madness and own avarice, while a handful of suits at the OMB control our destiny
It's going to burst - inflated beyond reality
Something has to give
It is easy for the property owners to cash out and leave or downsize. For renters it is a nightmare. While the landlord is the same and they stay put they are protected from gouging rents, once the property is sold or they try to move all that is lost.
Sadly this town is going to card board buildings ! My building is on the verge of being sold ! Being bought maybe by investors from India !!! They built a building across the street In One year !!! It's nothing ! Renting 2 b 2 b 4500 month ! Paper walls ! Very sad !
I'm in the fairly close 905 and had a real estate agent at my door today who led me to believe my place is worth somewhere around $150K more that I thought it was -- and my thoughts were a 35% increase over the appraised value at this time next year. I my place is worth somewhere around $150K more that I thought it was -- and my thoughts were a 35% increase over the appraised value at this time next year. I haven't got a big mortgage. But I can take equity out of here and buy something cash down, say, Niagara way and probably put money in the bank. ...I'm beginning to think I'd be a fool not to do that.
Nothing stays the same.
landlord just sold our townhouse for close to 2ce the value - nice unless he needed to buy something similar & we'd be buying at 2ce the value
I often feel like Chicken Little... The sky is falling...
They chased me out of Vancouver. Got to the point where we owned this over-inflated house, and couldn't actually afford to enjoy any of the amenities of living in a city like Vancouver. So we sold for a disgusting profit... feeling terrible knowing the... knowing the tear-down of a house wasn't "worth" anything close to what it sold for.... the guy who bought it did some renovations and I think if he sold now it would probably be for triple or quadruple what he bought it from us for nine years ago. And it's still essentially a tear-down. I don't feel so bad about that deal anymore but I'm still sad for the city that I can now barely tolerate even visiting.
It's even worse in London, U.K.
We lost a conservation area, which was also a protected bird and fish sanctuary. Metrus threw enough money around. cry emoticon:'(
We visited Toronto in 1984. The tour bus driver drove us through a line of brownstones, close to downtown. I was not impressed, because it reminded me of some rundown streets in Louisville. He pointed out to one and said "This house just sold for 500K last month" I was floored! In Louisville it would bring 135K, tops. I can only imagine what it is like 35 years later.
The city is beautiful. A detached home starts at a million. It's killing the heart and soul of this city. Rents are astronomical.
I lived in the west end in the 90s. You could buy a semi for $160,000. The neighborhood was full of artists and musicians buying cheap housing and re-gentrifying the neighborhood.
Now the same is $1.5 million.
So much for the arts
and this thread is from a Bancroft Facebook Friend:
" A house on our lane sold this week for over asking price.
Buyers purchased it online - sight unseen!
How do they do that? I can't even buy a sweater without trying it on."
RESPONSE 1 (from a colleague Realtor)
I knew it went fast - that is crazy that they did not see it - we have no inventory in our area and tons of buyers. Great time to list. We listed one last Monday at 199,900 and had 3 offers submitted on it by Tues!
Curious. ...what did the house look like?
Four yrs old, small and geared for seniors but tons of stairs to the lake.
They must've heard what great neighbours they were going to have.
The market hasn't slowed down one bit. We've got beautiful snow and the winter enthusiasts have kept us hopping. With the spring market just around the corner, it's still a great time to look at property-especially acreages, before the leaves entirely obscure your views.
It's a good idea to do your homework early and be ready to make an offer on a property that meets your criteria as things are moving fast. Bidding wars are becoming a little more common here, but not like in the cities and we certainly respect people who don't want to get caught up in that sort of hectic negotiation.
It's important to carefully consider your investment... particularly in areas where you aren't hooked up to municipal water and sewer.