****Good Morning Bloggers: for this am, I am grabbing the info I have at www.arianaleroux.blogspot.com as I can not get into that account anymore, so we will be using this blog from now on. Hopefully it does not cause any confusion as I am trying to get google to take down the other blog (which is turning into a huge hassle). ****
DID you know that real estate commissions are considered negotiable? ....
Real Estate Commissions
Did you know that real estate commissions are considered negotiable? That being said, there is a standard that many real estate professionals use when it comes to what commissions they require based on the services they offer. The general consensus among Edmonton REALTORS® is based on 7% - 3.5% on the first $100,000 and 1.5% on anything over $100,000 for both the buyers agent and the sellers agent.
What's All The Buzz About "Flat Fee" MLS® System Services? Some companies have started offering "flat-fee" or low fees for listing services from agents, however, we advise to be weary of these "selling tactics" as in many scenarios a lower commission rate can result in less service from your seller agent. Be careful and read through the fine print - as often times, the savings may cost you in the long run.
What Is Included In The Commission Structure? When the Sherri Naslund team lists your Edmonton Home - we pride ourselves on the service and value we provide to you as our client. We work with you to sell your home in a timely manner, for the best price possible through smart marketing initiatives. We will spend the time and energy needed to showcase your home in the right light to potential home buyer's. By requesting a Free Edmonton Home Evaluation from us, we will visit you in person to discuss the service and commission options available to ensure a great sale.
When Do We Discuss The Fees Involved In Selling My Edmonton Home? Prior to assessing a fair commission structure, my team will want to perform an in-person home evaluation. During the home evaluation, we can take the time needed to assess the services that your home will require to ensure selling success. We will also discuss how hands-on or off you would like to be during the entire selling process. Once we determine the services that you will want included, we can determine a fair commission structure and create a win-win situation for everyone involved. Remember - there is a fine balance between focusing on service value and price. A lower commission structure - may not always result in a "higher" net rate of return.
Can We Negotiate A Buyer Agent's Commission As Well? Typically this is not recommended. Why? In order to be marketable to other agent's buyer's, it is important to remember that an Agent will always try to steer their client to a home that not only will be what the buyer is looking for, but also one were the agent makes their desired income. Imagine if there are two homes on the same block - with virtually the same features. The only difference is that one house is offering the buyer's agent 2.5% on the first $100,000 and 1% on the remainder versus the other home that is offering the standard. If you were that agent, which one would you try to promote more to your clients?
Click to get access to Realtor Website...
www.sherrinaslund.com
Remax Agent
Housing Starts Moved Higher in March!
Housing starts moved higher in March
OTTAWA, April 8, 2011 — The seasonally adjusted annual rate1
of housing starts was 188,800 units in March, according to Canada
Mortgage and Housing Corporation (CMHC). This is up from 183,700 units
in February 2011.
“Housing
starts moved higher in March mostly because of increases in rural
starts,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis
Centre. “Urban starts saw little change as the increase in Ontario’s
multiples segment was off-set by a decrease in British Columbia’s
multiples and a decrease in single housing starts in the Prairies.”
The
seasonally adjusted annual rate of urban starts increased by
0.4 per cent to 163,500 units in March. Urban multiple starts were up by
6.6 per cent in March to 101,400 units, while single urban starts
decreased by 8.3 per cent to 62,100 units.
March’s
seasonally adjusted annual rate of urban starts decreased by
23.4 per cent in British Columbia and by 19.3 per cent in the Prairies.
Urban starts increased by 13.6 per cent in Ontario, by 11.5 per cent in
the Atlantic region and by 8.6 per cent in Québec.
Rural starts2 were estimated at a seasonally adjusted annual rate of 25,300 units in March.
As
Canada's national housing agency, CMHC draws on more than 65 years of
experience to help Canadians access a variety of high quality,
environmentally sustainable and affordable homes. CMHC also provides
reliable, impartial and up-to-date housing market reports, analysis and
knowledge to support and assist consumers and the housing industry in
making informed decisions.
Sunday, April 10, 2011
Still have some 35 and 40 year amortizations!
Yep, that is right! Some lenders for conventional mortgages, so 80% loan
to value or less, are offering the higher amortizations! Some with out
an appraisal cost as well. This is good news for some first time home
buyers with cash to put down, but they would prefer lower payments, or
maybe this is an investment property for a seasoned buyer that would
want to take advantage of the lower payments!
For the insured mortgages, the 30 year amortization is now the norm... but having this option if you want to have more down, or have more equity, is a nice silver lining that is staying around I think for awhile. With rates going up again and the housing marked really picking up steam, options are always a good thing!
For the insured mortgages, the 30 year amortization is now the norm... but having this option if you want to have more down, or have more equity, is a nice silver lining that is staying around I think for awhile. With rates going up again and the housing marked really picking up steam, options are always a good thing!
1st Time buyers contribute to strong upward momentum in residential housing markets
Driven
by the threat of higher interest rates down the road, first-time
buyers are contributing to strong upward momentum in residential
housing markets across the country, according to a report released
yesterday by RE/MAX.
The RE/MAX First-Time Buyers Report, highlighting trends and developments in 19 major Canadian centres, found that low interest rates and balanced market conditions have provided significant impetus in 2011, particularly at lower price points.
Just over 30% of markets are reporting sales in excess of 2010 levels as a result, while almost 70% have experienced an upswing in average price.
Leading the country in terms of percentage increases in the number of homes sold are Western Canadian markets, including Saskatoon (up close to 15%), Greater Vancouver (up close to 12%), and Winnipeg (up just over 11%). With an average price hike of close to 20% year-to-date (February), Greater Vancouver continues to show unprecedented strength, followed by Hamilton-Burlington (8%), Quebec City (7%), Winnipeg (close to 7%), Greater Toronto (5%), and Greater Montreal (5%).
The RE/MAX First-Time Buyers Report, highlighting trends and developments in 19 major Canadian centres, found that low interest rates and balanced market conditions have provided significant impetus in 2011, particularly at lower price points.
Just over 30% of markets are reporting sales in excess of 2010 levels as a result, while almost 70% have experienced an upswing in average price.
Leading the country in terms of percentage increases in the number of homes sold are Western Canadian markets, including Saskatoon (up close to 15%), Greater Vancouver (up close to 12%), and Winnipeg (up just over 11%). With an average price hike of close to 20% year-to-date (February), Greater Vancouver continues to show unprecedented strength, followed by Hamilton-Burlington (8%), Quebec City (7%), Winnipeg (close to 7%), Greater Toronto (5%), and Greater Montreal (5%).
Click this link to see Remax article and video
http://www.remax-oa.com/media-newsroom/article/65/
Difference between debt in Canadian and the US
Last
week CIBC Chief Economist Ben Tal appeared on BNN discussing the
quality of Canadian debt and the difference between debt in the Canada
and the US.
Click here to watch the BNN link:
http://watch.bnn.ca/#clip441031
IRD PENALITY COMPARISON RATES
IRD Penalty Comparison Rates
People loathe it, largely because they don’t understand it. We continually come across folks who read their entire mortgage contract and are still confused by the IRD calculation.
Fortunately, federal disclosure guidelines are on their way later this year. These guidelines are supposed to standardize the explanations of IRD penalties to make them more comprehensible.
There is one element of the IRD calculation, in particular, that gets people all tied in knots. It’s called the “comparison rate.”
Here’s a real-life example of how the comparison rate can spoil your day: Customer fee to pay out mortgage doubles (CBC News).
The story features a regular guy (Mohsen Movahed) who learned how to calculate an IRD penalty…the hard way.
It seems Movahed relied on a penalty quote, only to find some months later that his penalty had doubled.
The culprit, says his bank, was the comparison rate used in the IRD calculation.
A comparison rate is the rate a lender compares to your current contract rate in order to calculate the IRD penalty on a fixed-rate mortgage.
The comparison rate is usually the lender’s rate for the term that most closely matches your remaining term.
For example, if you have 22 months remaining on your fixed mortgage, a lender will typically (there are exceptions) use a 2-year term as your comparison rate.
As a sample test, we ran a quick penalty calculation for breaking a hypothetical $250,000 mortgage. Our example was based on actual historical and current bank rates. It assumed the customer had about 2.5 years remaining on their term and had received a 1.50% discount off posted rates.
Depending on the effective date of the penalty calculation, a bank could quote the penalty based on either a 2-year or 3-year comparison rate. That’s relevant because the penalty difference between these two comparison rates (as of today March 24, 2011) is more than $3,700!
In other words, if our hypothetical customer waited until she had slightly less than 2.5 years remaining in her term, the bank could apply the lower 2-year comparison rate (instead of a 3-year) and her penalty would increase 28%. (A lower comparison rate makes the IRD bigger.)
The moral is that timing matters when calculating an IRD penalty. A good mortgage advisor can help you plan properly to minimize the IRD, if and when you have to pay it.
Rob McLister, CMT
The story features a regular guy (Mohsen Movahed) who learned how to calculate an IRD penalty…the hard way.
It seems Movahed relied on a penalty quote, only to find some months later that his penalty had doubled.
The culprit, says his bank, was the comparison rate used in the IRD calculation.
The comparison rate is usually the lender’s rate for the term that most closely matches your remaining term.
For example, if you have 22 months remaining on your fixed mortgage, a lender will typically (there are exceptions) use a 2-year term as your comparison rate.
The kicker is that banks often subtract the discount you received at origination from their posted (comparison) rate—which makes the interest rate differential and penalty even worse!In any case, Mr. Movahed discovered that the comparison rate can drop considerably as time goes by. That drop can boost the interest rate differential and cost you thousands more.
Some lenders use bond yields for their comparison rates (example). This method can sometimes be far more costly depending on yields and mortgage spreads.
Conversely, some non-bank lenders use regular discounted rates for their IRD calculations, which can be more favourable for the customer.
As a sample test, we ran a quick penalty calculation for breaking a hypothetical $250,000 mortgage. Our example was based on actual historical and current bank rates. It assumed the customer had about 2.5 years remaining on their term and had received a 1.50% discount off posted rates.
Depending on the effective date of the penalty calculation, a bank could quote the penalty based on either a 2-year or 3-year comparison rate. That’s relevant because the penalty difference between these two comparison rates (as of today March 24, 2011) is more than $3,700!
In other words, if our hypothetical customer waited until she had slightly less than 2.5 years remaining in her term, the bank could apply the lower 2-year comparison rate (instead of a 3-year) and her penalty would increase 28%. (A lower comparison rate makes the IRD bigger.)
The moral is that timing matters when calculating an IRD penalty. A good mortgage advisor can help you plan properly to minimize the IRD, if and when you have to pay it.
Rob McLister, CMT
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