Have a Walk Away Number !

Hey everyone,

Just thought I would give you a quick update with what is happening in the market out here.   Buyers are completely frustrated and so are the agents.  The prices are going up every day.  This weekend a house in Whitby listed for 7 something sold for over ONE MILLION dollars... Complete craziness.

So I guess what I am trying to say is work with someone you trust.   Don't get talked into some of this nonsense.  There will be another house... be informed and be ready ... but don't be stupid.

AND... don't put in conditional offers .. chances are you are going to lose (at least out here anyway) and you are only boosting up the prices because the other firm offer, isn't being told yours is conditional.  They just see another offer and then jack their offer up another 10K to beat you and yours wasn't even in the running.

So please use good judgment.   Have a walk away number !  Don't get sucked into the emotional roller coaster .. be smart !   Yes the house prices are on the rise and yes you are going to pay top dollar but you don't have to be reckless.   Stay calm, listen to your Realtor and follow their lead.  They are working for you. They know the market.  They want YOU to win as much as YOU do.  They don't earn a living either when they lose.  They are writing offers and and losing all the time.  Imagine if someone said to you, go to work and if you win you get paid (not right away mind you but in a couple months when the deal is closed) or go to work and do your best with what you have and lose and don't get paid... and keep doing it, week in and week out... for FREE.  So please understand not all Realtors are making tons of money like the media portray.  We have a lot of great agents that are working 10 times harder and making ZERO !!

So let's all work together, quit blaming each other or the Seller or the agent.  It is just a crazy time in real estate and hopefully we get some more inventory so this crazy pace slows down and people can negotiate again... like the good ole days !

But when you are ready to make an offer, be careful.  Don't get caught up in the winning of it.  Have a WALK AWAY number... Play until you hit it and then throw in a towel.  It is just crazy what some of these houses are selling for and I wonder how many people are waking up the next morning sick thinking what they just paid for that house !!   It is supposed to be a special time, buying a home ~ not a game.   Surround yourself with professionals that know the market and understand how to play the game ~ because right now it is a game !

Don't get so invested in a home that you can't walk away.   It's bricks and mortar. Another one will come out tomorrow and probably better than the last..... Slow and steady wins the race.  Be patient.  Do you homework.  Get pre-approved.  Be informed and work with someone you trust to direct you to the finish line !

That being said, enjoy your evening.  Super Bowl Sunday !!!   If I can ever help or answer a question, don't be shy.  I am always here to help.   Hang on to your hat though, I think we are in for quite the ride ... :)

Cheers to that my friend !
Signing off, your real estate friend,

Michelle xo

It's the Wild Wild West Out There

I have to say the market is going full steam ahead.   Was in multiples last night again for a client.  Once again we did not improve high enough to win BUT at some point, integrity has to prevail.   How much is too much ???   I seems to me the prices are moving way too high, too fast.

People say Realtors are making a killing this year.  Well as a partner in a

brokerage with over 100 agents, I can tell you firsthand, they are working ten times harder to put one deal together.   The market is lacking inventory and the buyers are at the mercy of the seller.  Agents are showing and writing offers that go no where and are back at it the next day trying again.    

In the heat of the bidding war, when do you say, "Ok, I think we need to walk".  I think I have said it several times this month... LOL... because I just feel like the home does not have that value attached to it.  If I wouldn't feel comfortable paying that for the house or selling it to my kids for that price, I certainly cannot advise my buyer to pay that.

At some point, you have to say, "It's your call" to them and let them decide how much is too much.  

Has Durham Region been undervalued for too long and we are just paying catch up to York Region and GTA?   Are we now just being seen as the closest pocket to Toronto that is affordable?   I would like to think so because nothing else seems to justify this huge spike in prices.

In 2006 a detached home in Pickering the average price was $344 approx.  In 2016 the average price for a detached home in Pickering is close to $700K... so you have a 100% increase in value in 10 years.   Prices have doubled for conversation sake.  

If only we knew then what we know now !  :)   So do you think in 10 more years, the average house in Pickering will be 1.4M.... Hey it doesn't sound so crazy anymore !

Will the market slow down?   I hope it balances out.  A market like this is a slippery slope.  When it is balanced, people can have home inspections, negotiate sale prices etc.   Right now, it is the Wild West out there.  Seems like common sense is out the window and it is just "pick a number" ...

Agents need maybe to list higher to stop all the multiple offers.  That might put the brakes to this... Who knows... But at least I know I can sleep at night because I am not letting my clients pay some of these ridiculous prices.....

Happy House Hunting Everyone..... May the best offer win !  

March 2016 - Market Report - Just Released

Market Stats Just Released for March 2016 - WOW from Michelle Makos

Looks like April will be much about the same or better.... Strong real estate market and low interest rates are making it hard to buy resale homes as the buyers are competing in many of today's sales.  Prices are at a record high. Multiple Offers are now the norm and inventory is key to stabilize this market. The more listings we have, will create more competition... it will then be best house and price wins ... NOT just only house on the market wins regardless of price and condition.   If you are thinking of moving, I would say, now it the time to capitalize on your investment.

Enjoy the information.  It provides year over year statistics as well average prices in the 416 and 905 areas.  Have a great day !

MULTIPLE OFFERS AGAIN ~ SOLD OVER ASKING

Here we are at the end of July almost and no slowdown in sight.  Interest rates still at an all time low and housing market still going crazy.  Not enough inventory for the buyers.  Bidding wars are the norm now.   Most homes that are listed are holding offers until a certain date.  The key is to not hold them that long and not price it too high.  Sometimes this is backfiring on agents who are not pricing the home correctly in order to entice a multiple offer situation.

The benefit to the Seller is that it is done in a short period time - I usually do Thursday to Sunday or Monday - and then best offer wins... this last property had over 100 showings between Thursday and Monday...Multiple offers were registered and then "Best Offer" wins.

Word to the wise, if you are participating in a multiple offer situation, don't bring an offer conditional on financing and home inspection with 8 or more offers, you aren't going to get it and you are only increasing the value of this home by adding your offer in the mix.   

In this market, it is hard when there are so many players to win in a multiple situation like that .. so you need to scope out a listing that has been on the  market a while, maybe needs work, or overpriced and try your conditional on financing and inspection offer but not when a house has 7 or more offers... I feel bad for the agent and for the buyers waiting ... but that is the game of real estate right now.

Its tough to buy a home when you are constantly in a multiple offer situation. Last night was the same thing.  Seven offers.  One winner.  Happy to say my client was thrilled with the results and the winning Buyer Agent was as well.

If you are looking for an aggressive approach to selling your home and an up to date market evaluation, call a local full time Realtor .. or call ME... :)   Have a super week everyone... Mine is off to a great start.
Cheers !

1875 Malden Crescent, Pickering - SOLD OVER ASKING !!!!

Thrilled to have been able to get my Sellers the highest price on their street !!! The market is smokin' hot !!  Thinking of selling your home, NOW is the time. Should you need a complimentary Home Evaluation, contact a local full-time Realtor in your area and get your home on the market !  

This home showed pride of ownership and the SOLD PRICE reflected that. Bidding wars are a thing now.  Make sure you are pre-approved when going out to find that perfect home.   Multiple Offer Presentations usually end up going to the agent that has pre-approved clients and them with them at the home. Congrats to all involved in this sale and thank you for your business.  ALWAYS APPRECIATE REFERRALS.  

Holding Offers - Who is REALLY Benefiting??

Ok here goes !!!  Being a full-time professional Realtor, I can honestly say that I have an equal amount of Buyers and Sellers this year, so this is being written with no pull one way or the other,  BUT in my experience, it has become apparent that holding offers is very prevalent.   My concern is this ... as a Buyer Agent - Is it not hard to keep your client motivated to participate in what I call a "goat rodeo"?????....They see the house, they love it and then you tell them, "Great, we have to wait until Monday night:"   Do they lose interest?  Do they talk themselves out of it?   Are they eager to participate in Multiple Offer situations?   I would have to say NO.

So now you have Buyers who are disengaged with the process.  They think we are holding them hostage and agents are over selling the properties and then saying, you need to go firm to win.   Is this really representing their best interest?

Then you have the flip side.  The Seller who thinks this is the way to do it.  List a bit lower than last sale and let people pay higher than asking and sell it in a weekend.   Sounds like the Listing Agent wins in that case and really would have to wonder if the Seller would not have gotten that price regardless if it was just priced at "market value" and let the offers come in as they are viewed and if a multiple offer situation occurs, so be it but don't force it.

I guess it depends on what side of the fence you are on.  I am not saying I don't hold offers ~ because now, most Sellers want that ... BUT ... even as a Listing Agent, if you get an offer priced way over asking and is firm, are you not a little worried at if it will appraise?   Just me speaking out loud here.  

I have walked away from offers when the prices seemed so inflated ~ I advise my Buyer "let's wait"... because honestly, "this house isn't worth it".... and I guess maybe that comes from having experience and knowing the homes in the Durham Region.   These crazy bidding wars usually are from out of the area agents coming into Durham Region and truly I have to wonder if they even know where the Durham/York Pipeline is or if they know about the Whites Road extension and so on.

So the bottom line, no matter whether you are a Seller or a Buyer, choose an agent you feel comfortable with, who KNOWS your neighbourhood and will REPRESENT YOUR BEST INTERESTS.

Happy House Hunting to  All and to all a Good Night !  :)

Multiple Offers Everywhere !

Well I cannot believe the prices some of these homes are selling for?   Please, please, please make sure when you are purchasing a home to use a LOCAL agent ... they know the neighbourhoods and the comparables.   When you use an agent who is from another area, they don't.   People are paying ridiculously high prices for homes which in my humble opinion aren't worth it.

I understand there is a shortage of listings but does that mean Buyers are to be pressured into paying some of

these crazy prices... I say NO !!  I have told my clients on many occasions, walk away !

People are going in firm on homes that clearly have issues with no inspection conditions.  I have been in numerous houses and after inspections found mould in the attics, faulty wiring, etc.   Make sure you know what you are getting into and that your agent knows the age of the property etc.  

It is great to win in multiple offers and see your happy Buyer's face but make sure you are doing it for the right reasons.   I always say, "If I meet you at the local grocery store or park, I don't want to run and hide because I feel you overpaid."   People hire Realtors to protect their interest and from some of the shananigans I have seen lately, I have to wonder.

If you are a Seller, this clearly won't mean much other than you are going to get TOP dollar for your home right now.  But if you are Buyer, choose wisely.   Choose someone who knows the market and is diligently working on your behalf to protect your interests and your money.  

Ok my rant is over ... just looking at some of the sales the past few weeks and shaking my head.   I hope the market continues to stay strong but if it doesn't, I hope you have a lot of equity in some of these homes because if the market drops ... they won't even be able to sell them and get their initial downpayment out of them.

All I am saying is GET REPRESENTATION that you TRUST.  Yes it is great to win but at what cost !  

Good luck to all the buyers out there and to all the sellers... who are getting top dollar for their homes.  If you are thinking of selling - TRUST ME, now is the time to sell.  I have never seen a market so busy and desperate for listings.

To your success !!!  

If you have any real estate questions, please feel free to call me or email me ... I love what I do and will be only too happy to answer them.  Cheers !!!

20 Romulus Drive - SOLD OVER ASKING !!!!

Bidding Wars are happening in Durham Region... HUGE !

It can be very frustrating if after months of looking for the perfect house, you find out there are six other offers that

Bidding Wars

are registered. Most people do not want to even entertain submitting their offer at this time. Sometimes couples decide to go head first and throw their bid in. There are many different strategies to going about winning a bidding war and every situation is different. When you are trying to win a bidding war you must do things that you normally wouldn’t do in purchasing a house. Some of them are risky and sometimes you could pay later even more because of your decisions.  The problem is some people put in an offer that isn't even close to asking and full of conditions and it only is driving up the prices.   If you are going to get into a bidding war, here are some useful techniques that may help you win.

Strategies to winning a bidding war.

1. Remove clauses: Removing financing, home inspection clauses and other clauses are very risky but it is a sure way to entice the seller to accepting.  The cleaner the offer, the better.

2. One strategy is to offer more than asking and remove conditions before they are accepting offers. This is a very frugal way to win but if you are considering not bidding this could work and give the owners something to think about. 

3. Offer a large deposit. A large deposit indicates you have the funds to close the deal. 

4. Closing Date: Give them the closing date they desire. 

5. Know your highest amount and do not go higher. If you know you cannot spend more than a certain amount do not sway and get into trouble later trying to find thousands of dollars. (This is for your peace of mind)

In the end bidding wars are a lot like poker, you have to bring your best hand and you must watch out for bluffs. A good rule to use is to put yourself in their shoes.

Winning in Multiple Offers

THINKING OF COMPETING IN MULTIPLE OFFERS?   BIDDING WAR BASICS

When you've found that perfect little house you'd like to call your home, the last thing you want is to have to compete with other potential buyers.
But bidding wars - especially in hot real estate markets and urban centres - are more of a reality now than ever. So what do you need to know to stand the best chance at signing on the dotted "sold" line? Winning a bidding war is always a roll of the dice, but read on for the real deal on how to prepare before entering the multiple-bid realty trenches.

Have Your Pre-Approval In Place
Get pre-approved for a mortgage so you know the maximal financing available to you.
By pre-qualifying for a loan, you'll not only be aware of your offer's ultimate ceiling, but you'll shop around - and bid - accordingly. Speak with a broker to evaluate your options before you settle. A thumbs-up from the bank, along with agreeing to put down the biggest deposit or downpayment you can afford, can also help establish to sellers that you're serious about buying their property.
Keeping Up with the Jones'
You don't have to actually keep up with the Jones family, but when it comes to the houses you're serious about bidding on, you do need to be aware of comparative market analysis. In other words, do research to learn what the fair market value for any house you're interested in is considered to be, as well as the fair market value of similar houses that neighbour them. Real estate websites are good resources to get a sense of what's out there. When you find out what comparable houses to the ones you're looking at are going for, you'll know if you're shopping way beyond your means, or well within it. Knowing the current market value a house will fetch may also help you determine what you think other bidders will offer, to in turn establish the bid you want to make. Your Realtor should be protecting your best interests.  Keep in mind, if the bank appraises the home and it doesn't appraise for the price your offered, then what????

Play Clean
Don't add unusual requests, terms or conditions to your bid, like, for example, buying someone's home on the basis that you'll first sell yours. Additional clauses contingent upon any extenuating circumstances can cause headache to vendors, who may have another offer at the exact price you're tendering, but one without any loopholes. Which one would you choose? By nixing the contingency plan and making a "clean" or firm offer, you stand a better chance at getting what you want.

Inspect the Goods
Set aside a fund for pre-buy home inspections, which should cost about 1 per cent of the house's asking price. This is often money well spent. If it turns out that the house you think you want to buy has a roof that's about to fall in, better to know before you bid - especially since it might make you look twice at a very similar piece of property around the corner that is going for the same asking price, but with, for example, a recently renovated roof. Consider setting up a home inspection fund in case you end up in a bunch of bidding wars on houses lost to other buyers, since you'll also have lost your home-inspection fee.
Don't Get "Fluffed"
Fancy art, furniture that's moving out with the homeowner and gorgeous draperies may make a formerly drab house look fab, but none of those things will be there when you buy the house. As soon as the showing's over, the homeowner may well ship that Persian rug back to the prop rental store it was leased from. Also, the drama in the colour of the paint in the living room, dining room and bedroom might look impressive, but might not suit your furniture...at all. Just because a house may show famously, doesn't mean it's the right one for you. Make sure you're not being taken in by the smoke and mirrors of objects that are not part of the home's innate architectural charm.
Uneven Steven
Don't bid $250,000 on a house whose asking price is $250,000 when you're in a bidding war and your budget could easily permit you to extend $251,200. It may seem as though bidding an odd number would make little difference, but not only will your bid stand out from the rest, it may just beat an offer that came in at a slightly lower figure with a more common-sounding bid.
Revisit Kansas
Try to go back to see the house that seemed so magical to you on first viewing more than once - and more than a couple of times, if possible. One reason is that what strikes you as a great first impression may make a poorer second or third impression. Another reason is that more than a few sentimental homeowners have sold their house to a young family that somehow reminds them of themselves when they were starting out. Often, if you are able to meet the homeowner and they establish a connection with you, they may look upon your offer more favorably than that of another bidder - even if your competitor's bid is higher.
Pull the Trigger
Try to figure out the vendor's "trigger" - what it is that would make them sell. If you know that the homeowner has a certain closing date in mind which differs slightly from yours, offer to meet their ideal terms - sometimes this is all it takes to be selected over another bidder, even if the competing offer is higher. If you can afford to, add incentives like agreeing to pay all closing costs. And if you know the sellers are not looking forward to moving their weighty piano or basement-assembled pool table because it's expensive to move and the closing date is tight, inquire about buying it to see if that will sweeten the deal.
Hide Your Hand
Bidding wars are a lot like gambling - the stakes are high and a lot of luck is involved. Rather than trying to figure out how much you can afford to bid without breaking the bank, try to strategically figure out the highest competing bid you're trying to beat. If you don't have finely honed psychic abilities, what helps is knowing the true value of the house. Let's say you're pre-approved for a $400,000 loan and the house you're interested in bidding on would, according to your realtor's estimation, be fairly priced at $350,000 as compared to other similar houses in the same 'hood. If you know that the homeowners are not accepting offers 'til Saturday, and have listed the asking price at $345,000, and then find out Saturday that there are two other offers, think about what those two other offers might be. You may be smart to bid higher than their asking price and more than fair market value but still less than $400,000.
Know Right from Wrong
In the end, don't get caught up in the excitement of bidding. There's an age-old maxim: "buy the most expensive house you can afford." This is a savvy real estate suggestion, because if you can afford a $325,000 three-bedroom home but instead settle for a $275,000 one-bedroom home thinking you've saved some money, you could regret it sooner than you think. Consider that if you need that extra bedroom space - like if you and your partner decide to have kids - you'll be looking to buy a new house, sell your current living space and move house in a relatively short period of time. It's just common sense to make the highest offer you can afford that you're comfortable with. Every time you visit a new property ask yourself: Is this the wrong house? That's right, the wrong house. Rather than falling blindly in love with any given dwelling, play devil's advocate with yourself, scrutinizing how the house you're looking at right now is any different from the one around the corner that you just looked at. In bidding wars, there's a grave danger of overpaying if you get swept up in the auction-like fray - know when to fold 'em, walk away and run.
So before you engage in battle, arm yourself with credit pre-approval, a little research, an arsenal of financial strategies, heightened market value awareness and a great realtor. Then cross your fingers and go forth to find your own home sweet home.

Call Michelle Makos, Re/Max First if you would like to feel like your best interests will ALWAYS come first.