Selling your Winnipeg home – Here’s some simple home repairs

Drywall Corner Repair and Maitenance Tips

Are the corners of your drywall chipped from moving furniture, or kids’ play? Chances are if your walls have any damage, it’s at the corners. Fortunately, repairing drywall corners is a fairly easy DIY project. The instructions below assume you already have metal or plastic corner beads installed in the drywall.
What you’ll need:
  • Safety goggles and work gloves for safety
  • Utility knife
  • Hacksaw or metal shears
  • Floor scraper
  • Metal snips
  • Power drill or driver
  • Drywall knives
  • Corner bead
  • Drywall screws
  • Drywall joint compound
  • Sandpaper
  • Hammer
  • Taping knife

How to Repair Drywall Corners

Step 1: Cover your work surface with several layers. If you’ve never cut glass or plastic before, practice with your straight edge to make sure you can measure accurately and score exact lines before you begin. Use a framing square for perpendicular.
Step 2: Using a utility knife, cut away a rectangular section around the damage. This will prevent tearing of the rest of the wall.
Step 3: Saw through the metal corner guard above and below the damaged area with a hacksaw or metal shears.
Step 4: Pull out the old nails using a pry bar and the claw end of a hammer.
Step 5: With metal shears, cut a replacement piece of corner guard. Remove paper and gypsum from area.
Step 6: Screw the new guard in place so it lines up with the old guard.
Step 7: Apply three coats of drywall joint compound using a drywall knife. Let dry and sand lightly between coats.

Regrouting Bathroom Tile: A DIY How To Guide

Grout lines are the week point of a bathroom tile installation. Even sealed grout attracts mildew and becomes discolored. When grout fails and begins to crack, water can seep into cracks and collect behind wall tiles, causing them to separate. And when that occurs in one tile, the adjacent tiles will begin to separate too. Fortunately, regrouting bathroom tile is a simple project you can do yourself and will keep your tiled walls looking their best.
Before you begin re-grouting, you have to repair or replace any loose or broken tiles. Scrape away ridges of old adhesive from wall and back of tile, apply new adhesive layer and reset tile.
Remember that grout, caulk, and sealant must cure anywhere from several days to a few weeks before using the shower or tub, so plan accordingly.
Safety Recommendations:  Wear safety goggles when working with grout, sealer, or caulk.  Rubber gloves should be used. Properly ventilate work area.
Things you’ll need
  • Utility knife
  • Awl or nail and dowel
  • Razor knife
  • Grout
  • Sealer
  • Sponge faced float or squeegee
  • Bucket
  • Toothbrush or striking tool
  • Clean cloths
  • Silicone caulk
  • Caulking gun
  • Screwdriver

1. Remove existing grout. Scrape away the old grout using a utility knife or a grout saw.  Use an awl or nail hammered into a dowel to remove grout from narrow spaces.

2.  Remove existing caulk. Using a razor knife, cut back old caulking from tile perimeter.
3.  Mix grout. Follow manufacturer’s instructions and mix enough grout to complete your wall. Some tiles need to be sealed to protect the finish before applying grout.
4. Apply grout. Trowel grout across wall using a sponge faced float or a squeegee.
5.  Polish. When you have finished grouting joints, wipe away excess using a damp sponge. When a dry haze has formed, polish using a damp cloth. When grout has dried thoroughly, a sealer can be applied.
6. Caulk. Seal seams around tub, corner joints, and edges where tile meets another surface using silicone caulk. Never use latex painter’s caulk for a tile job.
7. Tool caulked areas. Use a toothbrush handle, gloved fingertips, or a striking tool to smooth the caulked areas. Allow all materials to cure for the period recommended by product manufacturer’s before using shower.

Contact TONY MARINO for more information on WHAT YOU SHOULD DO TO GET YOUR HOUSE READY FOR SALE in the Winnipeg Real Estate Market

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Purchasing a New Home in Winnipeg – is now more affordable!

Purchasing new home now more affordable

By: Mike Moore

Updated: January 21, 2012

The Bank of Montreal recently announced a five-year fixed mortgage rate of 2.99 per cent, the lowest advertised rate for that term by any major Canadian bank ever. Other banks and credit unions have responded to this with their own fixed rate deals, some a full point less than what they were previously offering.

Although this is being promoted as a short-term deal with additional restrictions, it does mean that qualified persons in the market for a new home are going to be able to take advantage of the savings like never before.

There are a variety of schools of thought for why the borrowing rate has decreased. The bottom line for consumers is that it has decreased, and fairly significantly. What makes this more dramatic is that for months we have been hearing from some sources that rates were going to increase when, in reality, the exact opposite came true.

Before going any further, I want to clarify that this change in rate has not made money easier to access; it has not suddenly become open to unqualified shoppers; and this is not some bargain basement sale to encourage Canadians to take on more debt. It is a realization that for those persons who are in a positive financial situation that enables them to purchase a new home, some financial incentive is being provided to do so.

The savvy buyer has the opportunity to create a payment schedule that fits within their existing comfort zone and to pay it off faster. For those concerned about their debt load over a period of time, this lower rate will permit the consumer to better stay within their means while continuing to save money for other expenses or emergencies.

In a competitive market, the consumer definitely wins.

This column has been espousing for some time that it was a good time to buy a new home. Manitoba new homes continue to increase in value over time, thereby making a new home a much less risky investment than many other ventures. Manitoba new homes are the best built and most energy efficient in Canada, also making them more healthy homes.

With the lowering of mortgage rates by various financial institutions, purchasing a new home has now become more affordable, another reason why now may be the best time to build a new home.

Mike Moore is president of the Manitoba Home Builders’ Association.

For More Information on Building a new home, contact The Tony Marino Team  , (204)792-8525 or (204)942-2583

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FOR SALE – East St. Paul – 2306 Rothesay Street – Country Side Crossing

EAST ST. PAUL

2306 Rothesay Street

COUNTRY SIDE CROSSING

TO BE BUILT!

 

 

 To be built in East St. Pauls NEWEST subdivision!

Sytko Homes award winning “Belmont”

This 1817 square foot bungalow with a “look out” basement will feature 3 spacious bedrooms and 2.5 baths.  Master suite will “awe” you!  11 foot ceilings in the Great room & Kitchen area.  Modern kitchen with Island & Granite counter top.  Mud room off the three car garage.  The side of this lot is on a creek!!

***Price is subject to change due to extra items added prior to completion.  Exterior elevation may change due to subdivision guide lines.

 


Listing Price: $674,900
Address: 2306 Rothesay Street
City: East St. Paul
MLS # (if any): 1206686
Square Feet: 1817
Bedrooms: 3
Bathrooms: 2.5
Basement (full, 1/2, finished, unfinished):
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Put your money where your house is…or not?

Pay your mortgage or contribute to an RRSP: How many times have you asked yourself or someone else which to do?

The first thing you should do is condition your mind to filter out biased advice. The last thing in the world a bank wants you to do is choose to pay off your mortgage. Assuming you pay no penalties, the bank loses income if you pay your loan off early. But it also loses out on potential fees it might earn from selling RRSP-eligible investments.

Banks do what’s good for banks first, not what’s good for you, necessarily. Having said that, there are clearly instances where doing one or the other is the proper thing to do. If your mortgage rate is four per cent, for instance, it doesn’t make much sense to race to pay it off. Four per cent money is a pretty good deal historically. The case for not touching your mortgage and making that RRSP contribution makes even more sense if you pay a relatively high marginal tax rate, say 45 per cent.

Your $10,000 contribution gets you a $4,500 refund. You are effectively $4,500 richer. It’s true you’ve also created a future tax liability. That is, when you withdraw that money, plus what it’s earned, in your golden years you will pay income tax on it. I’ve heard a lot of financial planners strive to make the point RRSP refunds aren’t yours, it’s still the government’s cash and you’ll eventually have to pay it. True, generally. But that’s no reason not to take advantage of it.

Remember, the money you put away is compounding tax-free and your tax refund can be put to work, too, either saved in a tax-free savings account as a reserve to pay that tax bill or applied to a mortgage.

And the further off in the future your retirement, the less this matters because of what we call the time value of money. Just as saving money today and watching it compound over the years can lead to a huge amount of money in the future, a future expense is worth less today — and a lot less if there are a lot of years between now and when you have to pay it and/or the rate at which you can save money is high.

Your $4,500 compounding in a TSFA at the same rate as your RRSP will most likely pay your tax bill and then some. More importantly, having the money in your RRSP gives you a lot of flexibility to control your tax bill. It’s hard to put a value on that, but it’s worth a lot.

Not all arguments on the subject are financial. I know people who literally get ill at the thought of their savings dropping in value. They can only invest in GICs and money market funds. These people might be better off just paying the mortgage because they can’t really take advantage of interest rates. They’re hurt by them.

That’s just one example of the kind of considerations you should make when it comes to these decisions. Some, in my view, are a lot easier, like RESPs. These are a no-brainer because the government gives you, free, 20 per cent of what you put in (to a certain limit). That’s a guaranteed 20 per cent return. It’s just foolish not to find a way to take advantage of that — even, in the right circumstances, if it means borrowing. Rates are low, and the money you put away today will save you a lot in the future.

Fabrice Taylor is an award-winning financial journalist and analyst and author of the President’s Club Investment Letter. Email him at:

fabrice.taylor@gmail.com

Republished from the Winnipeg Free Press print edition January 14, 2012 B5

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Retire without a Mortgage

6 Ways to Retire Without a Mortgage

Admit it: Whether you’re 35 or 65, the prospect of retiring without a mortgage is an attractive one. No more monthly checks to your lender means extra money to spend on having fun once you exit the workforce. After years of punctual principal-and-interest payments, it’s the least you deserve, right?

There are several smart ways to retire without a mortgage. We’ve come up with six that fit a variety of retirement scenarios. Some approaches benefit from an early start — so if you are able, try to plan ahead. Other mortgage-free-retirement options can be put into effect even if you’re close to collecting Social Security.

Some retirees don’t mind a mortgage, be it for the tax write-off or to prevent too much money being tied up in home equity. But if your goal is the peace of mind that comes with paying off your loan before you reach retirement, check out these six ways to retire without a mortgage

1.  Make Extra Mortgage Payments

Over time, a few bucks here and there tacked on to your mortgage payment can translate into thousands of dollars saved on interest and years shaved off the repayment period. The trick is to find small ways to cut corners on other household expenses so that you can apply those modest savings toward your mortgage. Simply swapping out traditional incandescent light bulbs for CFLs, for example, can save you $50 a year in energy costs. A programmable thermostat can save you up to $180 annually.

A little extra goes a long way. A $200,000 mortgage at 6% over 30 years works out to a monthly payment of about $1,200 (excluding taxes and insurance). You’ll pay just over $231,000 in interest alone. But put an extra $100 a month toward the same mortgage and you’ll save nearly $50,000 in interest and retire the loan five and a half years early.

2.  Refinance Your Mortgage

 A surefire way to trim the bill for your home loan is to refinance your mortgage to a lower rate for an equal or greater period of time. You’ll enjoy reduced payments and less strain on your bank account. Not a bad idea if money is tight. What you won’t enjoy is a mortgage-free retirement.

To pay off your mortgage early via refinancing, you’ll need to switch to a shorter-term loan. In 2011, a popular refi option for homeowners who weren’t underwater was going from a 30-year mortgage to a 15-year loan. Let’s say you have 25 years left on a 30-year mortgage at 6% and still owe $175,000. You’d pay about $163,000 in interest over the remaining quarter century. For just $167 more per month, plus one-time closing costs, you could refinance to a 15-year mortgage at 4% and save $105,000 in interest. And, of course, you’d be mortgage-free a decade earlier.

3.  Downsize Your Home

 Think about it: At a time when you’re supposed to be enjoying the simple life, do you really need a formal living room, separate dining room and two spare bedrooms that you never set foot in? If your answer is no, think about downsizing your home.

The beauty of downsizing to a smaller home in the same area is that you don’t need to say goodbye to your friends, family and community. Of course, beauty can also be found in the fact that you might be able to pay cash for your new abode. That means no mortgage.

And don’t limit your notion of downsizing. Just because you spent the past 30 years in a traditional ranch doesn’t mean you need to purchase another ranch with less square footage. Check out conventional alternatives (condos, townhouses) as well as unconventional options (houseboats, RVs and even tiny homes).

4.  Relocate to a Cheaper City

Can’t find the right place at the right price to retire in your hometown? Move somewhere cheaper. Sure, there will be sacrifices, but what you’ll give up in familiarity you’ll make up for financially. The best places to retire combine ample activities with affordable real estate. And moving to an affordable locale will boost the odds that you won’t have to take out a new mortgage.

Home prices aren’t the only factor. Consider property taxes and homeowners insurance premiums as well. Both affect the overall affordability of a home.

Feeling adventurous? You might be able to pay even less for a home and enjoy lower living expenses if you retire overseas. Look into bargain-priced and retiree-welcoming countries such as Belize, Mexico, Panama and Vietnam.

5.  Get a Roommate

Don’t discount the financial advantages of taking on a roommate. By letting out a spare bedroom and applying the rent you collect to your mortgage, you can knock years off the time it’ll take to repay the loan. An extra $250 a month toward a $150,000, 30-year mortgage at 6% will erase the debt more than 13 years early. An extra $100 a month retires the mortgage seven years early.

The benefits to your bottom line extend beyond the mortgage. Rental income can help defray the cost of utilities — gas, electricity, phone, cable, Internet — and maintenance. Annual upkeep on a typical three-bedroom, two-bath detached home runs $7,910, on average, according to Homewyse.com, a homeownership Web site. As a bonus, a roommate can help with chores, providing a welcome respite for any homeowner weary of doing dishes and dusting bookshelves alone.

6.  Rent Instead of Owning

A guaranteed way to retire without a mortgage is to sell your current home, pay off the loan in full, pocket the profits, and use the proceeds to rent a place to live instead. Although it might seem as if you’d just be writing a check to a landlord instead of a lender, the differences between renting and owning are considerable.

Among the advantages of renting in retirement: no lawn to mow; no leaky roof to replace; no property taxes to pay; no assets tied up in illiquid real estate; and no residential albatross around your neck preventing you from moving around as you wish. You can even save on little things, such as insurance. The average annual premium for renters insurance is $176, compared with $791 for homeowners insurance. As for losing the ability to deduct the interest you pay on your mortgage — a popular argument in favor of homeownership — keep in mind that the amount of interest due declines over time, so later in the life of a mortgage there is less and less interest to write off.

The single biggest risk of renting in retirement instead of owning is that you might run out of money to pay the rent. If you own a home, by contrast, you could probably resort to a reverse mortgage when savings dry up. This is a legitimate concern, and one that you should address with your financial adviser. A well-structured portfolio can provide a reliable income stream deep into retirement. A part-time job can also stretch your nest egg.

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Royal LePage Predicts Further Home Price Appreciation

Royal LePage Predicts Further Home Price Appreciation Contrary to Recent Talk of Decline

National real estate price correction not likely until 2013 at the earliest

TORONTO, January, 2012 –The Royal LePage House Price Survey and Market Survey Forecast released today showed the average price of a home in Canada increased between 3.6 and 6.1 per cent in the fourth quarter of 2011, compared to the previous year. Royal LePage expects average price growth to continue through 2012 and predicts national average prices to increase by 2.8 per cent by the end of the year.

Despite calls in some quarters for Canadian house prices to soften in 2011, the market proved resilient as demand created by low interest rates and a relatively stable national economy created upward pricing pressure for all housing types surveyed. Further, recent high profile reports forecasting significant house price declines in 2012 are not supportable.  Nationally, consumer confidence in the housing market was high in the fourth quarter as real estate brokers witnessed an unusually high quantity of multiple offer situations, including over the holiday season, compared to same period in previous years.

In the fourth quarter, standard two-storey homes rose 4.2 per cent year-over-year to $375,427, while detached bungalows increased 6.1 per cent to $344,392. Average prices for standard condominiums increased 3.6 per cent to $234,680.

“In the recovery period following the 2008-2009 recession, I found myself repeatedly speaking of ‘irrational exuberance’ in the Canadian housing market,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services. “Expectations were too high and the pace of expansion unsupportable. With this report, I find myself in exactly the opposite position. Widespread calls for a major real estate correction in 2012 simply can’t be justified. The industry has significant momentum entering the year, and buoyed by the stimulative effect of very low interest rates, we expect the market to continue to expand – albeit at a slower pace.”

While 2011 was a very strong year for price growth, over the past five years, including the recessionary period, Canada’s average home prices have grown by only 3.5 per cent compounded annually, well below the long term average rate of appreciation. Canada’s GDP has also grown modestly over the same period and the economy is expected to expand by approximately two per cent in 2012. While unemployment remains stubbornly higher then pre-recession levels, sustained employment at today’s levels in a low interest rate environment can be expected to support continued average house price appreciation across the country.

Canadians remain confident in their real estate investments. Throughout 2011, buyers took advantage of low rates to enter the housing market or move-up to homes that better suited their family’s needs or wants. All regions included in the Royal LePage Market Survey Forecast anticipate positive average price growth in 2012. This includes the relatively expensive Toronto and Vancouver regions, where rising home prices have consistently out-paced the other urban centres.

”We believe calls for falling prices and more affordable housing in 2012 are unlikely to materialize,” said Soper. “While this will comfort the seventy per cent of Canadians who are homeowners, there is cause for concern when house price growth outpaces increases in wages and salaries for an extended period of time. Coupled with more restrictive mortgage regulations that have made it more difficult to obtain financing, those who aspire to own a home may find it increasingly difficult to enter the housing market and, in some regions, it may leave people out entirely.”

Regionally, Royal LePage expects to see cities with commodity-based economies, such as Calgary, Regina and Winnipeg, outperform larger urban centres such as Toronto and Vancouver. Royal LePage has forecast Calgary’s average house prices to climb 3.6 per cent in 2012. In 2011, the largest average price increase was seen in Regina, where average prices for standard two-storey homes rose 19.5 per cent year-over-year.

Regional Market Summaries

In Halifax, strong consumer confidence and low interest rates led to healthy year-over-year price appreciation for all three housing types surveyed. Average price gains ranged from 4.5 to 6.7 per cent for the housing types surveyed. At the end of 2012, average house prices in Halifax are forecast to be 3.4 per cent higher than 2011. 

First-time buyers and consumer confidence helped push Montreal’s prices up in the fourth quarter of 2011. At the end of 2012, average house prices in Montreal are forecast to be 1.3 per cent higher than 2011. 

A strong local economy and low interest rates resulted in healthy year-over-year price appreciation in Ottawa with gains ranging from 5.0 to 6.7 per cent. At the end of 2012, average house prices in Ottawa are forecast to be 3.3 per cent higher than 2011. 

Lack of inventory in Toronto produced strong year-over-year price appreciation in 2011. Average price gains ranged from 3.4 to 7.2 per cent for the housing types surveyed. Migration and low interest rates also continue to drive real estate prices. At the end of 2012, average house prices in Toronto are forecast to increase 2.6 per cent over 2011.

Immigration and low interest rates produced healthy year-over-year price appreciation in Winnipeg’s real estate market with average price gains ranging from 3.7 to 5.0 per cent. At the end of 2012, average house prices in Winnipeg are forecast to be 4.2 per cent higher than 2011. 

Lack of inventory and strong demand drove average year-over-year price gains in Regina. Price appreciation ranged from standard condominiums posting a 7.9 per cent gain to standard two-storey homes posting a 19.5per cent gain, the largest gain among housing types surveyed across Canada. At the end of 2012, average house prices in Regina are forecast to be 5.0 per cent higher than 2011. 

Calgary witnessed modest year-over-year price gains in two housing types – standard two-storey homes and standard condominiums, while the detached bungalow rose 6.2 per cent. Lack of inventory for detached bungalows was cited as the reason for the increase. Edmonton, posted modest gains for all three housing types surveyed, which ranged from 1.3 to 3.2 per cent. At the end of 2012, average house prices in Calgary are forecast to increase 3.6 per cent, while Edmonton house prices are expected to increase by 2.6 per cent compared to 2011.

Vancouver continued to experience some of Canada’s largest year-over-year price increases ranging from the standard condominiums rising 10.7 per cent to detached bungalows rising 14.1 per cent. At the end of 2012, average house prices in Vancouver are forecast to be 2.3 per cent higher than 2011.

About the Royal LePage House Price Survey

The Royal LePage House Price Survey is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast.  This release references an abbreviated version of the survey, which highlights house price trends for the three most common types of housing in Canada in 80 communities across the country.  A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca.  Current figures will be updated following the complete tabulation of the data for the second quarter. A printable version of the fourth quarter 2011 survey will be available online on February 10th, 2011.

Housing values in the Royal LePage House Price Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts.

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An impressive finish to 2011

January 10, 2012

For Immediate Release

AN IMPRESSIVE FINISH TO 2011

 

- – -
Best December Ever At Just Under 700 MLS® Sales

 

WINNIPEG – Based on the busiest December on record in WinnipegREALTORS® 108-year history, you have to surmise that some of all those gift cards being purchased in December had to be house-warming gifts. December sales have never been at the 700 level mark before nor has dollar volume climbed so high to $182 million – a total that is leaps and bounds over any previous December. Prior to 2009, no December dollar volume ever eclipsed $100 million.

The strong finish to 2011 encompassed the entire second half with new monthly sales records or near best results. It led to WinnipegREALTORS® having its first $3 billion year worth of MLS® sales and the second best MLS® sales year – only nudged out by 13 sales in 2007. There is no question something special and significant happened to this city when the announcement was made of the return of Winnipeg to the NHL. Buyers gained confidence and were clearly motivated by the low borrowing costs that persisted throughout 2011 given the uncertain global outlook.

A real encouraging sign in December, as well as the year as a whole, was the improvement in MLS® inventory. New listings in the last month of the year were over 600 for the second year in a row. Total listings entered on MLS® in 2011 went over 18,000 for the first time in many years. The distinct advantage of more choice of new MLS® listings this December was a factor in almost catching the best annual sales on record in 2007. It is worth noting 2011 is only the second time WinnipegREALTORS® has had MLS® sales go over 13,000.

December MLS® unit sales increased 7% (698/653) while dollar volume shot up 19% ($182.0 million/$153.0 million) in comparison to the same month last year. 2011 MLS® unit sales ended up 7% (13,065/12,236) while dollar volume rose 12% ($3.06 billion/$2.73 billion) in comparison to the 2010. The 18,381 listings entered on MLS® in 2011 were up 3% from 2010 and conversion of these listings to sales finished at 71%, an improvement too over the previous year where it had fallen under 70 %.

“Pleasantly surprised and pleased at how we finished 2011 would be an accurate reflection of how we feel given our expectations were more muted at the beginning of the year,” said Ralph Fyfe, outgoing 2011 president of WinnipegREALTORS®. “As the year progressed it became evident momentum was on our side and it carried us all the way through to a record dollar volume year and a near miss on achieving a new benchmark for sales.”

Here is how things shook out in terms of the different MLS® property types. Residential-detached closed the year out with a 6% increase in sales over 2010. The over 9600 sales transacted represented 74% of total MLS® market share. Condominiums reached their highest level ever at close to 1,600 sales and were up 10% over 2010. These sales account for another 12% of MLS® activity in 2011. The biggest improvement however in sales as far as property types goes is the 27% increase in vacant lots from 414 in 2010 to 525 in 2011.

Owing to the outstanding MLS® residential-detached sales activity in the Steinbach MLS® area where sales alone exceeded 500, the rural MLS® areas grabbed 24% of all MLS® residential-detached sales. The southwest quadrant of Winnipeg was second at 19%.

As for average residential-detached sales prices for the different quadrants of the city and for rural municipalities, there is a significant spread between the highest and lowest prices. The southwest quadrant of Winnipeg is $341,461 while West Winnipeg, neighbourhoods north of the Assiniboine River and west of the downtown finished at $202,152. Winnipeg’s southeast quadrant for the first time reached $300,000 and rural municipalities ended up third highest at $250,000. The overall average residential-detached price reached its highest level on record at $256,748. It is up 6% from 2010.

“When we say all real estate markets are local it certainly applies to Winnipeg and is readily apparent when you see how divergent some of the prices are within the overall market region,” said Fyfe. “The most important statistic to you is the home you are selling or buying so you really do need to enlist a REALTOR® – a local expert – to interpret and assess your particular situation and advise you accordingly.”

The most active residential-detached price range in December was from $200,000 to $249,999 at 19% of total residential-detached sales activity. In sharp contrast, the most active condominium price range was from $150,000 to $199,999 at 53% of total condominium sales activity. For the year, the same price ranges were dominant for the aforementioned property types with percentages of 23% and 42% respectively.

The average days on market for residential-detached sales in December was 28 days, 1 day slower than last month but 5 days quicker than December 2010. As for the year, the average days on market was 26 days, just a day faster than 2010. For condominiums, the average days on market to sell in December was only 21 days, 11 days quicker than last month and 9 days faster than December 2010. For the entire year, the average days on market for condominiums was 29 days, one day faster than 2010.

The highest residential-detached sale price in 2011 was $1,750,000 while the lowest was just $14,000. The highest condominium sale price was $649,900 and the lowest was $35,000.

More detail on the year that was in 2011 will be reviewed at WinnipegREALTORS® annual forecast event to be held on Wednesday, January 25

th 
 
Established in 1903, WinnipegREALTORS® is a professional association representing over 1,600 real estate brokers, salespeople, appraisers, and financial members active in the Greater Winnipeg Area real estate market. Its REALTOR® members adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service® (MLS®) designed exclusively for REALTORS®. WinnipegREALTORS® serves its members by promoting the benefits of an organized real estate profession. REALTOR®, MLS® and Multiple Listing Service® are trademarks owned and controlled by the Canadian Real Estate Association and are used under licence.

 

For further information, contact Peter Squire at 786-8854.

. Predictions will also be made for MLS® sales activity in 2012.
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Canadian Mortgage Appraisals

What is a Canadian Mortgage Appraisal?

Appraisal is a document that gives an estimate of a property’s fair market value. An appraisal may be required by a lender before loan approval to  ensure that the mortgage loan amount is not more than the value of the property.

The appraisal is performed by an “appraiser” who is typically a licensed individual trained to render expert opinions concerning property values. In an appraisal, consideration is given to the property, its location, amenities as well as its physical conditions.

Why get an Appraisal?

The most common reason for ordering an appraisal is to obtain a loan on a property. However, there are several other reasons why an appraisal might be needed. Below are just a few:

  • to establish the replacement cost (insurance purposes).
  • to contest high property taxes.
  • to settle a divorce.
  • to settle an estate.
  • to use as a negotiation tool (in real estate transactions).
  • to determine a reasonable price when selling real estate.
  • because a government agency requires it.
  • lawsuit.

 

What are Appraisal Methods?

Appraisers use three common approaches when establishing the value of a given property:

1. Cost Approach: In this approach the following formula is used to arrive at the property value: Value of the land (vacant), added to the cost to reconstruct the appraised building as new on the date of value, less accrued depreciation the building suffers in comparison with a new building.

2. Sales Comparison Approach: In this approach the appraiser identifies 3-4 comparable properties in the neighborhood which have recently been sold. Ideally, the properties are close in vicinity (within a 1/2 mile radius of the subject property) and have sold within the last six months. The appraiser then compares the sold properties to the subject property. The factors used in the comparison include square footage, number of bedrooms and bathrooms, property age, lot size, view, and property condition.

3. Income Approach: In this approach the potential net income of the property is capitalized to arrive at a property value. This approach is suited to income-producing properties and is usually used in conjunction with other valuation methods. The process of converting a future income stream into a present value is known as capitalization.

After thorough exercise of the three approaches, a final estimate or opinion of value is correlated. When evaluating single-family, owner-occupied properties, the sales comparison approach is most heavily weighted by an appraiser.

Who owns the Appraisal?

Even though the borrower pays for the appraisal, the mortgage company owns it. This is because the mortgage company orders the appraisal on the borrower’s behalf, and the appraiser lists that mortgage company on the appraisal report. However, the borrower has the right to receive a copy. It is at the mortgage company’s discretion whether or not to give the borrower the original appraisal.

Can I use another mortgage company even after the appraisal has been completed?

Yes. In most cases, changing your mortgage company does not mean you will have to pay for another appraisal. The first lender can transfer the appraisal to your new lender. Some appraisal firms may charge a small fee, however, because there is clerical work involved in editing the appraisal to reflect the new mortgage company. This fee is called an “Appraisal Retype Fee.” The original mortgage company has the right to refuse to transfer the appraisal to another lender. In this event, you will need to get a new appraisal.

Who determines the market value of a property?

The seller of the property is the person who sets the price of the property (specially residential property), and not an appraiser. This is because sellers normally do not order an appraisal when selling their homes. Sellers wish to obtain the highest selling price possible for their homes and hence do not want to be bound by the appraiser’s assessment of their home. The real estate agent, who receives a percentage of the price as compensation and often represents the seller in the transaction, normally assists the seller in setting the sale price.

The real estate agent performs a comparative market analysis (CMA). The appraisal laws allows the real estate agents to perform CMAs without an appraiser’s license or certification. A CMA is a necessary part of the agent’s preparation for a listing and consists of examining sales of properties in the area to arrive at a listing price. The reliability of the CMA depends upon the agent’s experience and the characteristics of the property and the surrounding area. Typically, the agent will suggest a selling price to the seller based upon the analysis. However, the seller may not accept that price and choose to list the property for a higher price.

Assisting your Canadian Mortgage Appraiser

In order for the appraiser to perform his/her job properly there might be requirements for additional information. Some information that may be requested is as follows:

  • What is the purpose of the appraisal?
  • Is property listed for sale and if so, for how much and with whom?
  • Is there a mortgage? If so, with whom, when placed, for how much, type of mortgage.
  • If it is an income-producing property, a breakdown of income and expenses for the last year or two and a copy of lease might be required.
  • Provide a copy of deed, survey, purchase agreement or other pertinent papers pertaining to the property.
  • Provide a copy of current city assessment.
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