Merry Christmas!

As we enter the holiday season, this article on the front page of the Waterloo Region Record caught my attention this morning.

A father-son coaching partnership in Waterloo Minor Hockey has won an Ontario award from the hockey coaches association for the work with the house league team they coach in Waterloo. The remarkable part of the story is that the son Tony, is 12 years old and has Down Syndrome.

You can check out the article HERE. It's a great story, and really appropriate for the holiday season.

Having raised two sons, I have learned and strongly believe that children become a product of their environment, or as they say, "the apple doesn't fall far from the tree." You can bet that when the kids on that team grow up, they won't have a clue how many games their team won or lost, but for sure, they will remember the coaches.

Hats off to Mark and Tony... and Merry Christmas!

Tightening Credit

My son, Craig (who is presently studying economics at Brock University) sent me this link this morning. With my blog entry yesterday, it seems appropriate to pass along the basics of freeing up cash. We've heard lots in the news about how the American lending practices have dried up even when the cost of borrowing is almost "free".

This Marketplace video explains what the American federal government is doing to try to get the money available to the grass roots business people who need the money to grow the economy.

Let's give the federal economists on both sides of the border some credit for their efforts to fix the problems. Working in the real estate business in the early 90's when we were last in a recession, it felt like we were in a sailboat on a very still day. I am not sure if it is intelligence or collective wisdom from past mistakes. They are trying hard.

Interesting. Enjoy!

Quantitative Easing

Money Lending is Tightening

The housing market in Canada is nothing like the situation in the United States. But, as time passes, more and more of the lending policies are rubbing off on us.

A couple of months ago we heard that some conventional lenders were adopting a policy of not funding student income properties.

Today I heard that a number of lenders will no longer underwrite mortgages for private sales. The reason given is the potential for fraud and other undesirable possibilities associated with private sales.

All being said, this may well be an opportunity for agents in these slow times.

The Greenrealestate Designation™

Through the National Association of Green Real Estate Agents and Brokers, (a Canadian affiliation), you can attain a designation in Green Real Estate. You can do this by taking courses and paying an annual fee.

Three of the courses (which you can take online or in the classroom) qualify for RECO credits. The courses which are good for credits are:
"Green Heating and Cooling Options for the Home" - 2 credits
"Home Energy Efficiency" - 3 credits
"Home Hydro Usage - A Primer" - 3 credits



There is also an American designation available through Ecobroker, which offers courses and a designation as well. Prudential Real Estate presently offers a $ 50.00 discount for agents who join ECOBROKER before December 31, 2008. Although the site has a Canadian section, it appears lightly used at this point in time.

Going Green!

Times change. And I think truthfully, for all considered, I think I keep up pretty well. But, I must admit that, although not a total ignorant, I have been a little slow to pick up the pace on this issue. I think the first time my eyes were opened was with the movie, An Inconvenient Truth with Al Gore speaking out.

For the most part, I have "acted" green. Susan and I both drive cars that are at the top of the spectrum in fuel efficiency. We have replaced our old furnace with a high efficiency furnace, and we've replaced most of our windows. There are numerous other things we've done but you know they're not enough. It truly is an area where you can always do better.

My son, Kyle, arrived home recently for his Christamas vacation and I was a little surprised how big his focus is on being green as a university student. I must admit he has raised my awareness level.

So... here's the first of many posts on Going Green.

I'm just going to post a couple links here. I hope you take the time to read what is happening out there related to the real estate industry.

Check out : National Association of Green Agents and Brokers

Here's another one that doesn't appear to have regular updates but none the less hass some very good points to make. The address is my greenhomeblog.com

Rest assured, there is much more to follow on this issue.

Profile: Celina Kiel, Kitchener Office

Celina Kiel is 29 and has had her real estate license for 4 months. The areas of real estate that she focuses on are Kitchener and Waterloo.

Celina moved to the Kitchener-Waterloo area 6 years ago from Poland.

Buying a Private for Sale

It happened again this week. It seems to happen in our brokerage several times a year, and it's the same story over and over again. It's just different people and different houses, but the same story.

When buyers are looking for a house, the human nature is to look at everything. Most have a real estate agent, but they look on their own, too. The internet, weekly and monthly print publications, for sale signs, and even private for sales.

When they see a house they like, and in this particular scenario, the house is usually staged to its optimum, and decorated beautifully. The buyer finds this property on their own as a private for sale. They fall in love with the house, and make a quick emotional decision to buy the house, without consulting with an agent. The asking price is too high but that's OK because they really love the house. I truly think that, in some cases, they don't even think about the price. They just want the house. (We're all guilty of that, but in most cases, it would be on much smaller ticket items.)

So, as the story goes, two or three years pass and family circumstances change and they need to sell the house. They call over an agent and, it becomes apparent that the house is not worth what they think it is worth. Often it doesn't show as well as when they bought it because they don't quite have the flair for decorating as the previous owner. They now have two choices, list it at market value and take a hit or list it proportionately high to the mistake they made when they bought it.

More often than not, they take the higher route, because it is less painful. But, of course, the house never sells. So later they reduce and take the hit. When the market was good, it sometimes seemed less dramatic because prices were going up and the property caught up to the market. It seemed that way, but the mistake was really made when they made the purchase, not later.

This brings me to my point. Why would any buyer go out and make the biggest investment of their life without a professional to guide them? Especially, when their fee is being paid by the seller! It makes absolutely no sense! There are so many things to consider when looking at a house and drafting an agreement of sale. Most buyers don't even know what to look out for. Pricing , of course, is one of the biggest issues. A salesperson can show a buyer what comparable houses in the neighbourhood have sold for recently. Do you think the seller is going to show a buyer comparable sales that show his property is $ 25,000. higher than the last comparable sale?

November 2008 Monthly MLS Statistics

Sorry for the delay. There were issues with vacation and the official statistician, (AKA Debbie). There is not much of a surprise here. My only comment would be based on press releases over the past week or two, that Waterloo Region is not as bad as the rest of the country. Canadian Press had a headline this week stating that Canadian real estate prices are down 10 per cent. This is truly not the case locally. We did not have the big spikes seen in Calgary, Vancouver, or Toronto, so we are not seeing the declines either.

Here are the November 2008 MLS monthly statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 267,423	$261,467	$244,189	$242,673
Percentage Change	+2.3%		+0.6%
Properties Sold	296	501	123	196
New Listings/Sales Ratio	53.2%	84.9%	33.9%	65.4%
Properties For Sale Now	1316	1137	846	733

Appealling Ontario Assessments

One thing that seemed to have slipped through the cracks with regards to the new 2008 Ontario property assessments, is that when a property owner wants to appeal an assessment, the assessor now has the obligation to prove the assessment is correct rather than the taxpayer having to prove the assessment is wrong. This is the exact opposite of how it used to be.

If your client wants to appeal their assessment, you should direct them the MPAC website where it describes the new procedures.

It explains how your assessed value was arrived at, gives you an opportunity to look at other comparable properties, the procedures to follow to apply for an appeal, and the relative forms.

From past experience, and I assume that the policy is the same, I have found they are very receptive to your requests, and will listen to your argument. If you can back up your claim, they will certainly change your assessment. I am not sure if the new policy will change this. I guess we'll have to wait and see.

Rural Properties and Well Water Testing

When you are selling a rural property now, more than ever, you must cover your bases to protect your buyers and sellers. Since the Walkerton situation a few years ago, the province has taken an agressive stance to ensure safe water for all of us. Clean drinking water is no longer an assumed.

When listing a rural property with a well, the prudent thing to do is take a water sample right away. You can get a well sample bottle (the only sample bottle acceptable)at Waterloo Region Public Health located at 99 Regina Street South in Waterloo (3rd floor) or at 150 Main Street, Cambridge (Main floor) between 8:30 and 4:30 Mon-Fri. You can also pick one up at the Township Offices during regular business hours. Water samples must be filed in the name of the property owner and their address. Samples done through an agent and their address are unacceptable.

Take your water samples into those two main locations early in the day to ensure they get to London for testing the same day. Results are mailed back to your Seller quickly at the address specified on the form.

Locally, tests are sent to London daily for testing. For accurate results, you should either take the sample early in the morning before submission, or late the day before, and refrigerate. Property owners are encouraged to take test 3 times a year, but we usually find out that this is not the case. Make sure you let the water run for a while before taking the sample.

Tests are required by the buyer, not only for peace of mind, but usually the Mortgage Company requires it as a condition of financing. Tests are done for bacteria, including total coliforms, and E. Coli bacteria. Normally, an acceptable clean test in the time range around closing meets the condition for the agreement.

Should the results come back with unsatisfactory results, the problem needs to be rectified. In the situation of a poorly maintained well, it may require a well disinfection to "shock" the well. This is a relatively complicated exercise that requires care and skill. The Seller should seek help from the local authorities. Often, after a shocking treatment, the second water test comes back with a good report.

If a satisfactory test result is unattainable, there are other options. Chlorinators, ultra violet light filters, distillers, and ozonators are options. But, of course, these options cost money and somebody has to pay. That's why it is important to look at the test results when you are listing the property. It makes for less surprises later on. If the buyer is going to have to deal with unacceptable water, then the issue becomes part of the negotiation into the sale price.

Kathleen Anne Clyson - Kitchener Office

Kathleen Anne has been licensed for 2 years and specializes in residential resales. Kathleen Anne has received the President’s Circle Award and the Honour Society Award.

Kathleen Anne grew up in Windsor, Nova Scotia, and moved to the Kitchener Waterloo area 19 years ago. Before entering the Real Estate Profession Kathleen Anne worked for Rogers for 10 years as a manager. Kathleen Anne is also a paramedic by training with Advanced Cardiac Life Support designation.

Kathleen Anne works in a team with her mom in the real estate field.

Kathleen Anne and her husband Rob have two children, Grace (4) and Gryffin (2). When she isn’t busy selling houses Kathleen Anne is active with her church and enjoys travelling and outdoor activities with her family