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.

It’s good to be Canadian. While the U.S. housing market crumbled – to a certain degree bringing the global economy along with it, after some slight hiccups, the real estate markets in most Canadian cities have continued a slow and even climb.

And where European governments have been tottering on the verge of bankruptcy, threatening the very existence of the Euro, the loonie is more-or-less on par with the once-mighty (and still default global currency), the U.S. dollar.

But only a fool would think that the Canadian economy is not heavily influenced by events in the U.S. and Europe. Here, we review what various economic soothsayers from around the world predict 2012 will have in store for the global economy.

The Outlook for the US

It’s not just a cliché to say that Americans love to shop. Consumer spending accounts for some 70 percent of economic activity in the country that receives three-quarters of all Canadian exports. So when shoppers stay home from the malls, there’s a trickle-down effect that has negative impacts across the board, and the border.

One forecaster, Macroeconomic Advisers, predicts very modest growth of just 2 percent for the first half of 2012. Mirroring that figure, Morgan Stanley and Goldman Sacks both predict U.S. GDP will average about 2 percent in 2012.

On the housing front, prices continue to drop in many regions – in some parts of Detroit you can actually buy a house for less than $1,000. And by one estimate, one in five homeowners is “underwater,” meaning the amount they owe on their mortgage is higher than what the place is currently worth.

That said, there are some promising signs of a potential recovery. The national unemployment rate was 8.2 percent in November 2011, down from 9.3 percent the previous year. That same month, new construction starts in the U.S. jumped 9.3 percent. The 685,000 homes (and condo units) that ground was broken on that month is the highest level in nearly two years.

Also in November, existing-home sales totaled 4.42 million, a 12.2 percent increase over November 2010. Helping home sales is the fact that it seems unlikely that the U.S. Reserve will raise interest rates until sometime in 2013. Adding some clarity to the situation, starting January 25, 2012, the Fed will regularly post its long-term forecast for interest rates.

The Outlook for Europe

The outlook is worse in Europe. Scotiabank predicts zero growth in GDP for Europe as a whole (with modest gains for the UK, German, and France negated by negative GDP figures in countries like Spain and Italy). The fact that there are more than 16-million unemployed people in the European Union countries certainly won’t help.

Spain enters the year on the verge of an official recession – defined as two successive quarterly contractions – and the country suffers from astonishing levels of unemployment: 22.9 percent overall, and nearly 50 percent amongst young people.

Things aren’t much better in the U.K. (Canada’s second-largest trading partner). The Bank of England predicts a mere 1 percent growth in GDP, hampered by an 8.3 percent unemployment rate – equating to 2.62 million people out of work – the highest level since 1996. And, as if it weren’t hard enough to buy a house when you’re unemployed, the British Chambers of Commerce predicts that interest rates will start to rise in August.

Even economic powerhouse Germany, with its low unemployment rate of only 5.5 percent, is predicted to have less than 1 percent growth.

Until the hard-hit economies of Spain and Portugal are stabilized, it looks like Europe as a whole will remain in flux.

The Big Unknowns

Economic stability relies in large part on social stability. It’s not a far stretch to call 2011 The Year of the Protest. In fact, Time magazine named “The Protestor” as its annual Person of the Year. From the Arab Spring, which brought down numerous dictatorial regimes across the region, to the Occupy Wall Street movement, which spawned offspring Occupy sit-ins in cities large and small across the Western world, there was an unprecedented show of dissent with the status quo.

Add in the uncertainly over how Iraq will fare after the U.S.-pull out, a relatively unknown leader taking power in nuclear-armed North Korea, the ongoing threat from global terrorism, and countless other variables that could cause wild economic swings, the short-term economic future doesn’t look too bright.

Then again, if you believe what Hollywood and the new age shamans tell us, it’s all a moot point: the Mayan long-count calendar ends on December 21, 2012, so we’re all going to die anyway…

It’s the time of year when we shake off the old year and look ahead to guess what the new one will bring. 2011 was a mixed bag of economic drama: real estate, stock market, jobs and other indicators seemed down as often as they were up. It was an uncertain year money wise.

What about 2012? The verdict is mixed, the debt crisis in Europe being the pivotal factor. If these nations can get a grip on their monetary problems, the rest of the world should see gradual growth. If things slip into meltdown, we could be looking at a global double-dip recession.

In Canada, the numbers over the last month or so look promising and predictors seem to be leaning towards the former, more positive, scenario — with the debt crisis worsening in early 2012 but improving by mid-year. Here’s what’s up for the year:

Economic Growth

Our economy is going to grow this year, but not by leaps and bounds. Expect about 1.9% growth in GDP, according to the Bank of Canada. RBC is forecasting as much as 2.5% growth.

At the end of 2011, the BOC had expected GDP growth in Canada for Q3 to hit 2.0%.  Actual growth turned out to be 3.5%. And in Q4 they expect 0.8% growth, while most analysts think Q4 growth in Canada was about 2%.

Only time will tell if we will once again surpass the forecasts.  And if so, for how long can  it go on?

Interest Rates

Low, low, low! With all this uncertainty, and inflation numbers looking very low, there are few plans here or south of the border to raise rates. Some are saying we won’t see a rise in the overnight rate of 1% until 2013.

Until the worldwide economy has truly stabilized, you’ll be able to get those dirt-cheap mortgage rates and loans, so enjoy them a little longer.  Experts predict that once rates start to raise at the end of 2012 or in 2013, the increase will be slow and steady, going up 1-3% by the end of 2013.

To keep on top of interest rate changes, check out the Mortgage Rate Outlook Panel for a monthly prediction on whether or not rates will go up, down or stay the same in the short term.

Real estate

The predictions, of course, depend on where you live. Experts are saying the high-flying Vancouver and Toronto markets are overvalued and we should see a correction. But with high gas prices and job growth focusing on cities, there’s still a lot of interest in living in our biggest centres.

One thing the experts seem to agree on is the oversupply of condos in these cities. They’re expecting a dip in prices and buyers getting pickier about location, square footage and outdoor space.

Check out Melanie’s post from yesterday to find out more about what’s in store for Canadian’s when it come to home prices, home sales and housing starts in 2012.

Currency

With ongoing problems in the US and overseas, economists are predicting weakness in the US dollar and the Euro throughout the year. As a result, the Canadian dollar is expected to stay high in 2012.

Employment

The jobs story has been much worse in the US than it has been here. Already in late 2011 the US jobless rate moved down and is around 8.6% right now. Experts are predicting a modest descent through 2013 to around 8%.

Here, our situation is better, and we’re hovering around 7.4% unemployment right now. It’s predicted Canada will see a jobless rate of about 6.9% by mid 2013. Better news still: those experts think wages will start to rise and skills shortages will make looking for a well-paying job easier for some.

Regions

The prairies are so hot right now. Alberta and Saskatchewan have low employment rates and high growth, and those are expected to continue into 2012.

All in all, I’d say it’s not quite time to break out the champagne over the economy. 2012 promises to be another roller coaster ride of ups and downs, but those who can manage their money wisely and keep their debt to income levels in check, will come out on top.

It’s the beginning of a new year and everyone’s dying to know; how will the real estate market fare in 2012? Will home prices continue to escalate? Will housing starts continue to rise, or will they slow this year? And what will home sales be like this year?

To answer these questions, I’ve done extensive research, gathered the thoughts of some of Canada’s top economists and compiled them here. Please feel free to share your thoughts on our real estate market for the upcoming year in the comment space provided at the bottom.

Home Prices

As of November 2011, the average selling price of a Canadian home sat at $360,396, a 4.6% increase from November 2010. Canadian home prices might be currently overvalued by as much as 15 per cent, says CIBC economist Avery Shenfield. He doesn’t expect to see a major correction this year, though, especially since Canada’s economy and the job market both remain fairly strong.

“The catalyst for correction just isn’t there,” he says. “We’ve largely lent to those who have the income and ability to pay.”

It is said that home prices are rising much faster than income. Shenfield hopes to see zero growth in 2012. Zero growth could effectively give the market an opportunity to let off a little steam, allowing incomes to catch up to overinflated prices.

Low mortgage rates, employment opportunities and immigration will continue to support Canada’s housing market. But It is expected that home prices will stabilize in 2012.

Housing Starts

Last year, housing starts (the number of new homes being built) showed an annualized reading of approximately 190,000 units, says the Globe and Mail. CIBC World Markets economists Emanuella Enenajor says, “Analysts in recent months had been expecting housing construction to slow, led by weaker multiples construction – with the heated condo market losing its affordability edge over detached properties.”

CMHC also expects housing starts to decrease this year. They estimate that new housing starts will fall to 186,750 units from an estimated 191,000 in 2011 – a 2.2 per cent decline.

Some cities, such as Montreal, Regina and Saskatoon, already have a high inventory of new homes, which will definitely limit new starts there. In Manitoba, however, housing demand continues to be fuelled by strong levels of migration, according to one report.

Home Sales

The Globe and Mail reports that economists think that the Canadian housing market will lose steam overall in 2012. Although they don’t predict a bust, they do predict that valuations will be a main concern. In particular, TD predicts that both B.C. and Ontario could see real estate troubles over the coming years.

According to senior analyst Jacques Marcil, B.C. could have it worse. He says that the Vancouver housing market likely reached its peak, and predicts that they will probably see “a significant correction” this year.

The TD report suggests that home resales in B.C. will fall by 3.7 per cent, and prices will decline by 3.5 per cent. In B.C. last year, sales rose by 5.9 per cent from 2010. This December, sales were down by 12.7 per cent. Prices, on the other hand, were up by 7.6 per cent – but still down from June’s highs.

Thanks to an overabundant supply of condos, buyer confidence and an unstable economy, Ontario’s housing market is expected to be sluggish as well, especially where Toronto’s condo market is concerned.

In a separate report, Sal Guatieri of BMO Nesbitt Burns says, “Outside of Toronto and Saskatchewan, home sales have moderated since new mortgage rules were introduced in March (for the third time in four years).”

“Markets are balanced in over half the country,” he continues, “But sellers still rule in Toronto, Saskatchewan and Manitoba.”

Guatieri projections: “’Modest gains’ in Canadian home sales this year, steady prices, a dip in housing starts and a moderation in mortgage growth from its pace of almost 8 per cent.”

Meanwhile, the Canadian Mortgage and Housing Corporation predicts slight gains in 2012. “Sales of existing homes will edge up to 458,500 in 2012 from an estimated 450,100 this year, a 1.9% gain, while the average price is forecast to rise by a moderate 1.2% to $368,200 in 2012 from $363,900 in 2011.”

It is their belief that buyers will likely continue to be encouraged by record low interest rates.

In conclusion

Overall, many economists see Canada’s real estate market stabilizing in 2012, especially due to slow job growth, waning consumer confidence and tighter mortgage rules. As Canadian households rack up record high debt, the allure of low interest rates is thought to be waning. For these reasons, we can expect a cooler pace in real estate this year.

When my wife and I were shopping around for our first house, we actually looked at a number of homes in three vastly different and far-flung neighbourhoods within the City of Toronto. Along with a checklist comparing the pros and cons of the various houses we looked at, we also came up with a list of the attributes – and potential downsides – of each neighbourhood. Here’s a list to help get you started on your hunt.

Commute time
Unless you’re fortunate enough to work from home, the length of time it will take you and your partner to get to and from work will be a key deciding factor. Of course, proximity to the subway and easy access to highways can also drive up the selling price. In the end, it comes down to balancing how much you can afford to spend with how much time you’re willing to sit stuck in traffic or squeezed onto an overcrowded bus.

But keep this anecdote in mind when weighing the pros and cons: a friend of mine once lived in a small condo a five-minute walk from his office. Then, with a baby on the way, he and his wife fell for the attraction of a big house on a big lot in the suburbs. But after living for a year with the hour-plus commute each way (at the best of times), they sold and moved back to a bungalow in the city.

Schools
For parents (or parents-to-be), the quality of local schools can be a make or break item on your neighbourhood-rating list. I know people who would only consider houses that were within a specific school catchment zone.

Aside from heard-it-through-the-grapevine recommendations and reputations, you can find a fair bit of info about specific schools online. The Ontario Ministry of Education, for example, has a database of all publicly funded elementary and high schools in the province, searchable by city, school board, school name, or postal code. Along with basic details about each school, the reports also include student average test scores and how they compare to the rest of the province, and student body population and demographic info.

Another option for school comparisons is the Fraser Institute, which rates elementary and high schools (on a scale of 1 to 10) in Quebec, Ontario, Alberta, B.C., and the Yukon.

Neighbourhood vibe and amenities
This one’s hard to quantify, and is really dependent on your personal desires. Do you need the urban hustle-and-bustle of cafes and patios steps from your doorstep? Or would you prefer a more suburban vibe with large private lots and houses set well back from each other?
When comparing similar hoods, note the number and variety of shops, restaurants, and bars within walking distance, the number of parks and other public spaces, and the specific attractions that appeal to you.

Consider also the stage of life you’re in, and how long you realistically plan on staying in that house or neighbourhood. Being a short stumble from the city’s club district may seem ideal when you’re a 20-something; unbearable when you’re trying to get an infant to sleep on a raucous Saturday night.

Safety
While you can certainly get a deal by buying in an “up and coming” neighbourhood, you have to assess how long the “up” will take and whether or not you’ll be comfortable walking your local streets at night. Community papers usually have a crime beat section that can give you a cursory sense of how often homes are burglarized or purses snatched in a particular area.

For more specific details, try the local police department to see what stats they have. The Toronto Police Service, for example, has broken the city into 140 neighbourhoods, with a clickable map showing precisely which type of crimes were committed in each within the past month.

Property taxes
Keep in mind that if buying in a more-desirable location, you’ll not only spend more upfront on the house, your annual tax bill will also be higher. Each home’s property tax rate is based on its value compared to other recent nearby sales. When you start looking at multiple properties in the same area, look for the tax rate figures included on the selling sheets.

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

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.