January is turning into one of the hottest months ever for real estate sales. Realtors say they have never experienced such a busy January.

What’s Behind the Boom?

Its being fueled by BMO’s move earlier this month to lower its five year fixed rate to 2.99 per cent. That’s the lowest posted rate from a major bank in Canadian history. The other banks have followed offering their own version of fixed rates below prime.  This historic event is pushing home buyers back into the market.

Royal LePage, which franchises brokerages across the country, recently forecast the Canadian real estate market will rise 2.8 per cent in 2012. That is slower compared to 2011, when the market rose 4.8 per cent.  But that forecast did not know banks were going to move fixed rates as low as they have.

Real Estate Poised to Heat Up

In my opinion, 2012 could be one of the hottest years for real estate.  The mini boom the country is experiencing now will only grow as we move into the busiest real estate season. March is traditionally the month when inventory of homes for sale increases and more buyers are out looking for a place to buy that will close during the summer months.

Canada’s Excellent Track Record is Paying Off

Why are mortgage rates so low in Canada? Our country’s reputation is driving international demand for bonds from Canada’s biggest banks. Foreign investors are fleeing to safety in Canada.  In the case of BMO, it was able to sell $1.5 billion worth of five-year bonds at a rate of 2.544 per cent, this month.  Making it easy for them to offer consumers the historically low-posted fixed rate. The lower the yield the better the signal that investors have confidence in a lender’s ability to live up to the terms of the loan.

These bond sales are moving through the system and pushing mortgage rates to record lows. It means homeowners can benefit from even cheaper money as more foreign investment moves into Canadian bank bonds.  With the Europe debt problems still spiraling out of control and the U.S.economy still on shaky ground the push for Canadian bonds could continue for the long run.

A Warning About Cheap Money

But as it’s been for three years, lower rates threaten to move Canadians into dangerously high debt levels. Many may be unable to afford their homes down the road. Anyone out shopping for a home should continue to calculate their own affordability at least 2 percentage points higher than what they are being offered.

The BMO special rate offer has now ended but fixed rates still remain unbelievably low at close to 3 per cent. Variable mortgage rates continue to be offered below prime and that means anyone searching for a new mortgage can explore this option. Low rates won’t last forever, but they seem to be here to stay for 2012. And the Canadian market stands to gain from it in a big way.

Despite what all the real estate market pessimists might say in my opinion there is no condominium bubble in Canada.  All signs point to Canada’s real estate market remaining strong for this year and well into the rest of the decade. But that doesn’t mean home prices are falling. In most major urban centers the average resale price is at historic highs.  This indicates an even greater need for condominiums, which are often seen as a more cost effective alternative to single family homes. The dense makeup of multi family dwellings also allows more people to live in the core of Canada’s biggest cities.

Here are the major reasons that debunk any theory that Canadian condominium prices are bubbling.

Higher costs

The average cost of a resale home in Canada was $363,900 in 2011. Economists at the Canada Housing and Mortgage Corporation, estimate that cost will rise to $368,200 this year.

These costs are much higher in bigger centers like Toronto and Calgary. Where home prices on average are more than $400,000.   In Vancouver the average cost of a resale home is expected to climb above $800,000 this year.

This is drawing more attention to smaller family dwellings like condominiums. Especially for the homeowner who’s main factors are location and affordability.  For example, the average price of a condominium in Toronto is $234,680. Condominiums create a good alternative for anyone looking for a more cost affective alternative to a single-family home.

In its latest Housing Outlook the Canadian Housing and Mortgage Corporation says, “demand for denser house types, particularly condominiums, will reflect demographic trends such as an aging population. There are also affordability concerns and transportation considerations, as condominiums tend to be priced lower than single-detached homes, are located near major transportation routes, and can require less home maintenance.”

Immigration

According to Canada Citizenship and Immigration Canada more than 280,000 people immigrated to Canada in 2010 alone. Many of these people went to major centers such as Toronto, Vancouver and Calgary because of better job prospects and family connections.

There is an influx of a quarter of million people every year that need to find a place to live. For many new immigrants starting a new life in Canada a condominium is the first place they could land because of the affordability factor.

Low rental vacancy and ownership affordability

Rental vacancies in Canada are extremely low.  The average rental apartment vacancy rate in Canada’s 35 major centers decreased slightly to 2.2 per cent in October 2011, from 2.6 per cent in October 2010, according to a recent Rental Market Survey by CMHC. In Toronto vacancy rates are at a mind blowing 1.4 per cent.

In the meantime, mortgage rates remain near historic lows, making home ownership possible for more people.

CMHC says in its forecast for 2012 that more affordable condominium projects are now competing with the resale market and enticing some renters to move into new condominium units. It adds in 2012 demand is expected to improve with rising incomes and new household formation.

Final thoughts and observations

Anyone driving down the main highways in Canada’s major cities can see lines of cranes indicating more buildings are coming up. The forecast is that despite the high level of construction, inventory levels will remain in check, as units are absorbed quickly in both the rental and condominium markets.

As long as immigration rates and interest rates remain where they are, and every indication says they will, the notion that Canada’s condominium market is in a bubble is simply fear mongering.

Although real estate has been on a bull run for the better part of the last decade, prices are not inflated as they were in the U.S before the housing crash. As well, Canadians are still carrying significant equity in homes giving options if interest rates were to rise to sell their home and downsize.

Don’t expect to make a quick profit by buying a condominium today to sell next year, but as a homeowner planning to live in the dwelling those homes in the sky are still a valuable alternative to higher home prices on the ground.

Fractional ownership of recreational properties is, as the name suggests, a way for you to become the part owner of a cottage at the fraction of the price of purchasing the whole thing.

These setups – somewhat akin to a timeshare – first appeared in Ontario’s cottage country about a decade ago. Just don’t make reference to timeshares with the brokers selling them: they’re sensitive about being associated with some of the shadier developments in sunny Florida.

Today, there are dozens of options throughout Ontario, and across the country from the Maritimes to Vancouver Island. The styles of fractional properties range from relatively rustic digs reminiscent of a backcountry fishing lodge to luxurious accommodations in some of the country’s most desirable destinations, including Ontario’s Muskoka region and Whistler, B.C.
Regardless of location, the setup is more-or-less the same. For a one-time purchase price, you get to use the same, fully furnished cabin or resort room, a set number of weeks per year, in perpetuity. Since you actually own your share, like any cottage, you’re able to sell it for market value whenever you wish.

But, unlike a typical cottage filled with family mementos, you have to cart away or store your personal belongings at the end of your visit to make way for the next set of owners.

The properties are usually divided into 10 shares, giving each owner five weeks’ use per year. (The two remaining weeks on the calendar are typically used for general spring and fall cleaning of the whole property.) Each owner gets one week in the prime summer months, with the remaining four scattered thoroughly the rest of the year.

Ownership shares range in price from less than $35,000 (about a tenth of what you’d pay for a starter cottage in much of Ontario) to several hundred thousand dollars for the more luxurious properties. The purchase could be financed with a loan or a small mortgage.

If one summer week isn’t enough, you can buy multiple shares. And if you don’t want to use all five weeks at the lake, most resorts allow you to rent your extra weeks out, and many belong to timeshare exchange programs like RCI or Interval International that enable owners to swap weeks at their cottage for time at thousands of timeshare resorts around the world.

While you’re not personally responsible for groundskeeping and other annual maintenance that occupies many a weekend at the lake, there are condo-like fees that cover the cost of that upkeep.

All that said, another – far more popular – alternative for those who want to cottage without the expense and commitment of owning one, is to rent. The beauty of the rental market is that you can try out different regions each year – from the wide sandy beaches of Lake Huron, the big water boating on Georgian Bay, the hustle-and-bustle of Muskoka, then a small, quiet lake in the Kawarthas or Haliburton. Once you’ve found the region that suits you best, many renters book the same place year after year, getting that sense of familiarity, at a greatly reduced cost.

Allan
Writer for RateSupermarket.ca

It has always made sense to run your home as efficiently as possible, energy wise. But the stakes are higher these days. Gas and electricity prices are on the rise. Will they go higher? Oh, you bet!

Buying energy efficient appliances, sealing up your windows and doors, getting better windows and doors, insulating your roof and basement, upgrading your furnace, turning down your water heater, getting a tankless water heater: all these household changes mean dollar savings every month when you get your energy bills.

These savings add up fast. Replace five of your most commonly used light fixtures or bulbs with Energy Star rated versions and save $70 a year. A new Energy Star window will save you $20 to $95 dollars a year in wasted heat and cooling. Install a programmable thermostat (and program it to work around when you work and sleep) and save as much as $180 a year. Switching to Energy Star appliances will save you between $300 and $600 a year (the fridge is the big one: you save $100 or more a year by replacing an old one and even more if you chuck the basement beer fridge).

For more specifics on what you would save, check out Natural Resources Canada’s Energy Star calculator.

But turning your home into an energy smart zone has benefits beyond saving on gas and electricity. Here are a few benefits you might not have considered:

Your mortgage

Energy efficient mortgages (EEMs) give you financial incentives to either buy an energy efficient home, or upgrade your existing or newly bought home to make it greener.

The Canadian Mortgage and Housing Corporation (CMHC) has a great plan for first time homebuyers. CMHC is most famous for offering mortgage insurance for people with too-small down payments for their first home. Under the organization’s green mortgage program, you can get a 10 per cent refund on your mortgage insurance if you buy a green home or make energy efficient renovations. You can also extend your amortization up to 30 years under the program (why you’d want to do that we don’t know, longer amortizations cost you money in the long run!).

Meanwhile, private lenders have programs too. RBC’s Energy Saver Mortgage for instance, offers $300 back when you get a home energy audit. (An audit involves a trained expert going through your home to identify where your home is inefficient and suggest where you can make changes to save money and energy loss.) TD Canada Trust runs a Green Mortgage that offers you 1 per cent off the posted rate of a five year fixed mortgage, gives you up to 1 per cent cash back on your mortgage and donates $100 to the TD Friends of the Environment Foundation when you buy Energy Star products for your home or install solar panels.

Resale value

Kitting up your house with green changes big and small will one day impact your home’s attractiveness on the market. (Case in point: a recent build in my neighbourhood went for a startling price because the house was going to cost just $500 a year to heat.) Buyers are keen to walk into a house that’s been fully insulated has the most energy efficient appliances installed and has an appealing energy bill to back it up. There’s a growing trend among real estate agents themselves to think green and these types of professionals will be drawn to buying or selling your home.

Rebates

If you do it right, you can get hundreds or even thousands of dollars back from your eco-friendly home changes. The biggest deal in rebates right now is the newly relaunched federal EcoEnergy Retrofit Program. It requires a home audit but gives you as much as $5,000 back for making home improvements such as insulation and new windows or furnace. It runs just until next March, and you need to make the upgrades before that time to get the money back.

As well, most provinces have a wide range of rebate programs for doing things like taking away old fridges, giving you money back for new Energy Star appliances, offering rebates on windows and giving you money for switching to a tankless water heater. Natural Resources Canada has a pretty up-to-date list on the current programs available, but look to your province’s office of energy efficiency and hydro corporation for more information to be sure you catch all the deals.

When you spruce up your home to not just look good but run more efficiently, you can save a lot of money. Some of it right away, more over time. And it’s also just simply the right thing to do if you can afford it.

Diane
Writer for RateSupermarket.ca

Recently, there was an interesting article published in the Toronto Star about home inspections. Four months after the home inspection and two months after closing, it was obvious that Glenda Halliwell’s new home had some major issues. There were clear signs of water damage, moisture, mold, mildew, rot, dust and drywall deterioration in the basement – signs that should have been addressed before closing. The discovery was soon followed by legal action. Ms. Halliwell sued her real estate agent, the inspector and the seller.

Since the sellers had made no attempt to cover up the damage, probably because they were completely unaware of the problem in the first place, they were declared free of responsibility. The home inspector, however, was found 50% responsible since it was his duty to clearly inform the buyer about potential issues. The real estate agent was found 25% at fault because he took a “hands-off” approach and also did not inform the buyer of any potential problems. Ms. Halliwell was left to assume the remaining 25%, since it was her responsibility to read the report and ask the appropriate questions before waiving the home inspection condition.

This situation is more common than one would expect and it begs the questions, just whose responsibility is the home inspection anyway?

The Buyer’s Responsibility

At the end of the day, if this is going to be your home, you want to make sure that it’s in a livable condition before closing. Do not skip the home inspection. Too many problems – problems that don’t immediately stand out – come to the surface after closing. Things to look for include:

• Mold and mildew
• Damp basements and crawlspaces (indicating foundation issues)
• Roofs and chimneys
• Plumbing issues
• Electrical systems

If and when the issues are discovered, you can make a clean inspection a condition of your offer. Make sure that the problem has been fixed at its source – it’s all too easy to cover up the issue, making it appear as if it has been repaired. If you waive the home inspection later, then any problems that arise are your responsibility. Don’t be discouraged if the report comes back with a few negative notes – a perfect inspection is extremely rare and the inspector is obligated to report everything they find. Keep in mind that the home inspection is not a buyer’s wish list. It simply dictates which systems should be in good working order at the time of closing.

The Seller’s Responsibility

Think of your house like a product – a product that is about to compete with similar products on the market. Potential buyers are not interested in purchasing your good intentions; they want to know that the house is good and ready to go, as is. They definitely do not want to inherit your maintenance and repair hassles. Although it is your responsibility to make sure that the home is livable for closing, don’t feel that you must comply with unreasonable demands for repairs. You do have the right to say no.

“Pre-listing home inspection”

It is standard procedure for the homebuyer to order a home inspection, but you can get ahead of the game by springing for it yourself. Although you are in no way expected to conduct a pre-listing home inspection, the Canadian Mortgage and Housing Corporation suggests that it is a really good idea. Here are some reasons why:

• Allows you to take care of serious deficiencies beforehand
• Reassures homebuyers, providing them with peace of mind
• Keeps you in the driver’s seat
• Can lead to a much quicker close
• You are more likely to get your asking price

Uncovering problems before they arise later will help you in two ways. You can choose to deal with the problem by getting the repairs done, or you can lower your asking price to make it better reflect the value of your home. Foundation problems, for example, can be quite costly. If you discover an existing problem, but cannot make the repair yourself, you can at least adjust the price of your house upfront. The price can, therefore, reflect the true value of the house, foundation problem and all. You could also provide the buyers with an allowance that allows them to make the repairs after closing, although some buyers may find this situation less than desirable.

Hiring a Home Inspector

When it comes time to hire the home inspector, whether you’re the buyer or the seller, make sure that the person you choose is qualified and experienced. Visit the Canadian Association of Home and Property Inspectors (CAHPI) website to find out where you can find a qualified inspector. Ask questions. Quite often the inspector will happily explain proper maintenance and operating procedures. Finally, keep in mind that the home inspector is not there to make the buying decision for you. Ultimately, the home inspection is the buyer’s responsibility – if you choose to waive an inspection at closing, any problems that arise are yours to deal with.

Melanie
Writer for RateSupermarket.ca

RBC just released their 18th Annual Homeownership study, which found that a majority of young Canadians will put off buying a new home until next year.  The report said that 55 per cent of people aged 18-34 will delay stepping onto the property ladder, up 10 per cent from the national average.

It’s not at all surprising to hear that young people are acting with caution when it comes to making such a large commitment as buying a house.  This is an understandable reaction to the recent talks about worrying consumer debt levels and increasing interest rates, not to mention the speculation of a housing bubble in some areas across Canada.

According to the survey, young Canadians are most concerned about having a good down payment and raising home prices.

Other insights that came from the report include:

• 43 per cent  of young Canadians plan to purchase a home in the next two years (the national average is 29 per cent)
• Young people are more likely to use real estate websites and advice from family and friends when buying, versus older Canadians who relay more heavily on real estate agents
• Older Canadians (aged 35-54) are concerned about increasing home prices and mortgage rates

If you’re a first time home buyer facing the decision of whether or not to purchase a home, here are a few tips to consider:

Build a budget

Figure out how much you can afford.  This needs to cover two areas: 1) How much money can you afford to pay on a monthly basis for your home – make sure you’re including household expenses such as heating, insurance, cable, telephone and repairs, and 2) Find out exactly how much money you can borrow.  The banks typically follow the same rule of thumb: your gross debt service number (GDS) should not exceed 32 per cent of your gross monthly income. Your GDS number is the percentage of gross annual income required to cover payments associated with housing, including mortgage payments, property taxes, and interest. In order to calculate what you can afford as a monthly mortgage payment, simply multiply your gross income for the year by 32 per cent and divide it by 12.

Don’t forget to consider all of the costs associated with buying a home as well.

Understand the responsibilities

When it comes to homeownership, make sure you know what you’re getting into.  Speak to other homeowners about their first home buying experience, find out what they wish they knew before they bought.  Also, try to get a better idea of the type of extraordinary expenses that might come up throughout the year and how much money you need to put aside to manage these costs. It’s always a good idea to do a detailed comparison of renting versus buying a home to weight out your options.

Be informed

Don’t just talk to your bank when you’re looking for advice on a mortgage, compare the market and use a variety of resources to help you become an informed shopper.  Mortgage brokers can be a fantastic source of information.  Online websites can also help to answer any questions you might have and offer mortgage tips to help with the process.  And don’t forget to ask around, countless home buyers will tell you about the decisions and mistakes they made the first time around that they wont repeat on their second purchase.

Don’t stretch yourself

Once you’ve decided how much you can afford, make sure you stick to your budget.  Be prepared for situations that will arise that will encourage you to stretch your budget.  For example, if you enter into a bidding war or view a property that is listed at the top end of your budget, you might be faced with a difficult decision.  Try to avoid these situations all together so you don’t get tempted to go beyond your budget, or look for properties that are slightly below your price range so you can participate in bidding wars and have some room to move.

Be patient

Once you’ve made the decision to purchase a house, don’t get caught up in the excitement of home shopping.  Take your time and wait for the right property to come along.  Your real estate agent might try to encourage you to jump on a property that you’re not 100 per cent sure about, hold your ground.  Rest assured that your dream home is out there and waiting for you.

Kelly
RateSupermarket.ca

The weather is slowly getting warmer. That means many things, but for those interested in real estate, spring is all about a sizzling, busy market.

This year, reports are warning us this could be the last hot spring market for awhile. Yeah, right. I bought my first house a decade ago, when the market was hot. It hasn’t cooled since.

Still, warnings about the economy, housing market and interest rates are putting a spotlight on this year’s real estate activity. If you are buying or selling soon, this puts more pressure on you.  As if there weren’t enough already.

Working a real estate deal when the market is hot adds in a whole extra list of factors. Are you ready? Here are some suggestions for staying cool when the housing market is on fire all around you:

If you’re selling

Forget certainly. Your agent will suggest how much to list your house for and how much interest it should generate. But your agent doesn’t know, really, how much you will get for your home and how many offers will come in. That’s because anything can happen. Something in the news, like a big layoff in your area, could impact buyers. Or a fabulous house down the street could go on the market at the same time and outshine your abode. A water main could burst outside your house and city crews could hamper buyers.

Don’t get greedy. Even if prices are soaring in your neighbourhood, be cautious about asking the moon for your place. A too-high price can turn off buyers, even when there are lots of them.

Think like a buyer. It’s difficult to see your home with fresh eyes. But even if the market is on fire, buyers may still shy away from your place if you have no backyard, your kitchen is seriously outdated or your condo faces a highway. Listen to your agent and make the kind of upgrades and repairs that will satisfy today’s buyers, even if you’re not crazy about them.

If you’re buying

Know your budget. It’s a risk for any buyer to get in over their head with a too-high investment. But you’re at higher risk of bidding $20,000 or even $50,000 over your budget price when there’s a bidding war afoot. It’s difficult when you fall in love with a place, but you may need to walk away if the price gets too steep. Just remember to factor in all costs associated with buying a home and owning a home. You’ll need to make the mortgage payments, pay the utilities, do household repairs (which will run you an average of one to three per cent of your home’s purchase price every year), plus shell out for all your other regular expenses.

Know your budget for the future. Interest rates are at historical lows. Inevitably, they will rise. Before you sign a deal, calculate how much you’d be paying a month for your mortgage if rates rose to 5 per cent. (When I bought my first house a decade ago, my mortgage was 7.5 per cent. And honestly, no one made a big deal about it at the time). You’ll probably sign a 25 or 30 year mortgage, and most of those years you’ll be paying a higher interest rate.

Crunch the numbers again. Not to harp on the money issue, but buying outside of your price range is a sure way to put you on the slippery slope of racking up consumer debt. Don’t just turn to your bank for advice on how much you can borrow. Talk to a financial advisor, accountant or run the numbers carefully yourself to be sure you truly can afford the mortgage on the table.

Get out of the pack. Some houses attract a big group of buyers and provoke a bidding war. Where I live in Toronto, nicely renovated homes and those just steps from the subway make people crazy. Get out of the group mentality and look for a house that’s a 15 minute walk to transit, needs some renovation work, has a shared driveway or another feature that other buyers might shy from. A colleague of mine who was buying in a tough time a few years ago purposefully targetted homes that were sitting on the market. He eventually got a house simply by bidding on one at the right time, when the seller was fed up with waiting and accepted a low-ball offer.

Know your needs. Make a list of what you truly need in your new home (ample backyard perhaps; maybe an office space). And make a separate list for wants (fancy kitchen, hot tub!). Don’t sacrifice your needs or buy a house you truly don’t like, simply because you can get it. Remember: you can only make a house bigger if there’s enough land (and money) and while you can renovate, you can’t fundamentally change a home’s layout or its location.

Stay cool. Choose an agent who can help you navigate bidding wars and keep your head when things get intense. Make a pact with your partner (or find a close friend if you’re buying alone) to keep your price and needs list in mind at all times.

For anyone, buying or selling in a busy spring market, probably the best advice is to be patient. Sometimes you don’t have a choice and need to get in or out of a home quickly. But if there’s flexibility time-wise, lay low and wait for the right house or the right offer to come your way and snap it up when it truly makes sense for your heart and your budget.

Diane
Writer for RateSupermarket.ca

CMHC’s latest report on Canadian housing starts was released this morning and showed that the seasonally adjusted annual rate of housing starts in April 2010 was up 2,500 units or 1.3% over March 2010 to 201,700 units.

This is the latest evidence that Canada’s housing market is still doing exceptionally well and driving Canada’s economic recovery, and comes on the heels of Bank of Canada Governor Mark Carney’s comment last month that he expects the housing market to cool over the next few months as mortgage rates increase and HST comes into effect on July 1. I guess the cooling just didn’t start in April.

April’s provincial seasonally adjusted annual rate of urban starts housing start saw increases as follows:

• +16.4% in British Columbia
• +6.7% in the Prairie regions
• +4.5% in Ontario
• +1.1% in Quebec

Last year 465,251 homes were sold through MLS at an average price of $320,333. Owned by CREA, MLS aggregates listings from Canada’s 101 local real estate boards. Only registered real estate brokers can get key information such as past selling prices, and only these professionals can use the the site to connect buyers and sellers. Housing information is freely available in other countries, such as the UK, where the property market is massive, and anyone can find out how much their neighbours sold their house for, or how much a prospective purchase was sold for in the past, with a simple search on the internet. It provides transparency and empowers consumers to do alot of their own research, to help them make informed decisions, without relying on a real estate agent, who has access to “secret” information, and you have pay 5% of your property value, to have them share this with you.

The federal Competition Bureau, is now interested in this, and is questioning whether consumers be forced to use a real estate agent to represent them throughout the entire buying/selling process.

One of the largest for sale by owner websites in Canada, is Propertyguys.com, which enables buyers and sellers to connect through their website, with the onlly costs being a small charge for the house owner to list their property on the website. This is usually for around $500 and is an amazing deal if you compare this to $15,000 in commissions that would be due based on a sale of a $300K house at 5% commission.

The Globe and Mail had a live blog session with Walter Melanson, the VP of Propertyguys.com today, and here were some of the key comments:

Question: People have no limitations on selling their own homes – if they want to sell their homes – they can – if they want to use a real estate sales rep. they can – why all the big fuss?

PG: That’s exactly our sentiment. You are right – It’s all about options. I think the fuss is all about what the market perceives their options are. Given the state of the industry it doesn’t seem like many options exist.

G&M:
Some people think private sellers are at a disadvantage because the homes can’t be posted on the MLS, which is owned by the Canadian Real Estate Association. If you want your home on there (that’s where it’ll get the most eyeballs), you need to employ and agent through the whole process. Some feel that isn’t fair, that you should be able to post your listing there and still handle most of the details yourself.

Question: Aside from the obvious $ saved are there more benefits to both parties that are not so obvious?

PG: We don’t feel that Private Sellers are at a disadvantage at all. Our feel is that the internet levels the playing field. Selling a house is all about letting people know its for sale. We’ve been successfully doing that!

Question: Are there any legal risks or pitfalls that a real estate agent will help to prevent a seller or buyer from encountering? Can a lawyer fill this gap at a much cheaper cost?

PG: Our system weighs heavily on interaction between lawyer and seller. Most people are totally comfortable with that. We feel that a lawyer is best equipped to handle situations surrounding mitigation of fraud or any other legal concerns.

Question: I have heard of people having deals not go through because CMHC has denied the deal because it was being handled as a private sale. Can you explain what that situation is?

PG:No. We don’t see that mortgage insurers are predjudice on types of deals. They are simply mitigating risk on a property by property basis. In our case – we help parties supply all relevant information for CMHC to input into their system.

Question: What is the average difference in time on the market for a private sale vs. one with an agent? ?

PG:When we examine data, we see that private sellers (given proper mix of Price/Product/Exposure) sell on average sooner.