Michael Ireland Real Estate Podcast

What Is a Home Inspection Worth?

michael@michaelireland.ca (Michael Ireland) — Tue, 25 Jul 2017 13:42:00 -0700

There are a few different ways to determine the value that a home inspection will bring to your specific property.

I hear a lot of questions about inspectors. Who are they and what do they do? How do you know you’re getting good value for what you’re spending?

About two decades ago, home inspectors were virtually nonexistent. Today is a far different story. About 90% of buyers hire a home inspector. So how can a buyer know that they’re getting a good value and a good inspector?

Well first of all, inspectors go largely by reputation. Be sure to ask your agent to recommend one that they think will be best for you and your situation. Also remember that inspectors do not hold liability in the event they overlook something, which is something most buyers might not be aware of.

Inspectors will, though, be able to bring information to the buyer which will play a key role in calculating the long-term costs associated with the home as well as any repairs that may be needed.

In many cases, the buyer and the agent will be using the inspector’s report to revisit negotiation terms with the seller. Sometimes this can result in some form of compensation.

About 90% of buyers hire a home inspector.

However, when it comes to attached homes like townhomes or apartments, the value of the inspector is inherently limited because they will only be able to focus their inspection on the interior. The exterior of the property is under the jurisdiction of the strata. In this case, the information provided by the strata managers will often be more valuable than the inspection report.

The services of an inspector can be valuable on the other side of the transaction, as well. Sellers may want to consider having an inspection done on their own property before listing so that they can take care of any issues before the buyer sees, and likely also inspects, the home. This way, the seller can present the inspection report, as well as any invoices proving repairs have been made, to the buyer.

This will give the buyer confidence, and could potentially lead to a quicker offer.

If you have any other questions or want more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

The Latest News From the Fraser Valley Real Estate Market

michael@michaelireland.ca (Michael Ireland) — Wed, 21 Jun 2017 13:45:00 -0700

I'm back with an update on the real estate market for the Fraser Valley.

What's been going on here in the Surrey real estate market? Recent trends in the market should give us a good idea of what we can expect moving toward the summer and beyond.

We saw 5,302 sales in May, which was a 21% increase from April. Compared to last year, it was the best month on record since last June when the market was one fire. It is also the second-best May we've seen in the history of our real estate board. That's good news.

Inventory is down by 9.5% in our market compared to this time last year. Looking at the new listings gives us an idea of how the market has replenished, and it was virtually the same as this time last year with 3,712. The average days on market—which tells us how quickly homes sell—is at 23, which is well below the historic average of 51 days. That's a sign of very strong demand here in our market.

So where is all this demand showing up? A lot of the stories we hear about high demand and multiple offers are happening in the apartment market. First-time homebuyers are creating much of this demand. Townhouses—which have become the new standard for younger families that can't afford a single-family home—also have high demand from people downsizing.

We expect the strong demand to carry through the summer and well into August.

With detached homes, inventory is doing well in price points up to about $1 million. You actually see a slowness in the market when you get into the nicer neighborhoods with homes in the $1.5 million range, or the luxury market. This segment tends to be the slowest to recover from a market correction like the one we saw last fall.

This strong demand will carry into the summer, but remember, most buyers want to buy their house before August, which is traditionally the slowest month of the year. It's when they need to transition into the school year. Given the current momentum, we actually expect strong sales activity going well into August.

There will still be opportunities in the market, however. With the vacancy rate below 1%, we've seen renters struggle to find a place. This has not only driven up rental rates, but also demand for multi-family rental units. This is where investors seemed to be focused right now.

If you or anyone you know is considering buying or selling a home in our market, give me a call or send me an email soon. I'd be glad to help!

How Buyers & Sellers Can Win a Multiple Offer Situation

michael@michaelireland.ca (Michael Ireland) — Thu, 8 Jun 2017 10:08:00 -0700

Multiple offer scenarios are pretty common in a hot market like ours. Whether you're a buyer or a seller in this scenario, there are a few things you can do to prepare yourself to come out ahead.

We always associate multiple offers on a property with a really hot market like the one we're currently in, but a property could receive multiple offers in any market with the right pricing and promotion. Of course, the goal is always to get the highest price the market will bear.

If you receive multiple offers, it will probably be in the first few days on the market. In order to leverage them, it’s important for your real estate agent to have a pre-market routine to build up the demand for the property while fielding inquiries like disclosure statements, title searches, or a bank appraisal.

Since the majority of offers will happen in the first few days, it's important to have this routine because if they don't, the seller could accept the wrong offer. If that offer falls apart, the seller will have to try to resurrect all the interest in the property a week or two down the road, which rarely results in another multiple offer situation.

If an early offer falls apart, it's hard for a seller to resurrect that early interest in the property.

We've been involved in enough of these situations where all parties have been informed, allowing our sellers to get up to hundreds of thousands of dollars more than their asking price for their home.

On the buyer's side of the equitation, their agent needs to be sure they are pre-qualified for financing and allow them to review all documentation regarding disclosures on the property in a multiple offers situation. Remember, many sellers will accept a lower offer price if the offer is firm and gives open dates or doesn't have conditions attached. Buyers need to be just as well prepared.

If you or anyone you know is thinking of buying and/or selling a property, just give me a call or send me an email. I'd be honored to serve you!

What Our Real Estate Numbers Tell Us About the Market

michael@michaelireland.ca (Michael Ireland) — Fri, 19 May 2017 13:18:00 -0700

What do our market numbers tell us about what we can expect to see in real estate this year? I’ll go over those numbers and answer that today.

What can the latest numbers tell us about our real estate market?

There were 2,230 sales in the month of April, which is a very strong performance of the market. In fact, last April only saw 2,213 sales. Of those 2,230 sales, 438 were apartments, 567 were townhomes, and 1,225 were detached homes. As far as prices go, we saw a 5% increase in detached homes compared to last fall.

There were 4,913 active listings in April, down 13% from last year, which made it the lowest inventory for April in 10 years. 2,950 new listings came on the market compared to 3,942 last April. That means new listings were down 25%.

Buyers have fewer options and as a result, their offers are higher. Over the past year, detached home prices rose 14.5% to $888,900, townhome prices rose 26% to $446,000 and apartment prices rose 29% to $285,400. So what’s influencing the market?

Unfortunately, the production of multi-family homes is lagging.

First, we’ve got a lot of first-time homebuyers taking advantage of new government down payment options. Then we’ve got people who are downsizing. Unfortunately, the production of multi-family homes is lagging. We probably won’t see production start to catch up until later in the year.

If you’re a buyer in our market, you need to be really well prepared with your financing and well represented when you negotiate on a home in case it turns into a multiple offer situation.

As a seller, you want to make sure that you’re getting the right price for the product that you have. You also need to make sure you are represented by the right agent to ensure your home sale goes successfully.

If you or anyone you know is planning on purchasing or selling a home, feel free to give me a call or send me an email. I’m happy to answer any of your questions.

Little Things You Can Do to Sell Your Home for Top Dollar

michael@michaelireland.ca (Michael Ireland) — Thu, 27 Apr 2017 12:51:00 -0700

Here are some little things you can do as a home seller to make sure yours sells for top dollar.

Today, I want to share some little things you can do to sell your home for top dollar.

That might sound like a cliche, but let me tell you a quick story. We recently listed a home that had been sitting on the market unsold for months. We moved in our professionals, did some basic merchandising, repairs, and cleaning, and sold that home for $22,000 more than what the previous company was asking for.

What little things can you do to achieve the same effect?

To start, examine how your yard looks. Are all the garden beds trimmed? Is the lawn mowed? As buyers walk up to your home, they’re usually walking on concrete or exposed aggregate, so make sure that area is power washed and glazed so it has a fresh look. As they approach your front door and look around, the trim must be clean and freshly painted. The front door must also be clean and freshly painted with polished hardware.

Pay careful attention to your home’s curb appeal.

Don’t forget about the threshold—every buyer looks at one before they step over it. As they enter the foyer, they’ll make the decision to buy your home or not based on a couple of different factors. As they look through the home, it needs to be uncluttered and have good passage. All the lights must also be bright and working properly. Lastly, get rid of the old doormat that you wipe your feet on and buy a new one.

If you’re considering selling in this spring market, don’t hesitate to reach out to us so we can get these things dealt with in a professional manner. The difference will be remarkable in terms of how your home looks and what goes into your pocket when you sell it. Just give us a call or send us an email, and we’d be happy to get started.

What's in Store for the Spring Market?

michael@michaelireland.ca (Michael Ireland) — Fri, 14 Apr 2017 13:37:00 -0700

Looking at the market's numbers from March always provides a good idea of what we can expect from the Spring market.

Taking a look at the market from March always gives us a good idea of what will happen in the Surrey spring market. The good news is that March was an extraordinary month!

In fact, it was the second-best sales month in the last decade with 2,213 sales. Townhome sales made up 638 sales and apartments made up 526. Basically, attached housing made up about half of everything that sold over the month. That's a lot of demand for that type of home, much of which is fueled by the first-time homebuyer program brought in by the government.

As a result of this kind of absorption rate, what can we expect? Well, looking at the inventory levels in March, we can see that we peaked at 808 homes, which is fairly low compared to previous years. With supply this low and demand this high, prices will move up.

With supply this low and demand this high, prices will move up.

In March, attached housing prices continued to rise from more than 5% from January. With detached housing, there has been a rebound after last year's bad news in the wake of the market correction.

This all tells us that consumer demand in the housing market is clearly very strong right now, suggesting that we're in an inflationary environment for the year. This should keep sellers very alert that if you plan to sell in this market, you need to work with a great agent to get the right price for your house and to make sure you know where you're moving and that you have enough time for that purchase.

If you're buying a home, it's vital to have your financing prepared to capture the opportunity. We're now seeing a lot more time required from lending institutions to get these deals approved, so buyers need to be ready to write an offer when their agent finds a home.

If you or anyone you know is thinking about making a move this season, we'd love to help you. Just give us a call at 604-908-0804 or send us an email, we're always here to help!

The Benefits of Buying a Home with Us

michael@michaelireland.ca (Michael Ireland) — Mon, 13 Feb 2017 13:14:00 -0800

There are a lot of services we offer to buyers and they all come at no cost to you. Today, I’ll explain everything we offer.

Today I wanted to give you a quick overview of the services we provide to homebuyers. Of course, these services come at no cost to the buyer.

We start with the consultation where we determine what’s important to you in your new home. Then, we help you determine some of your financing options from banks or credit unions.

Once that budget is set, we’ll go to work to find your next property. We use the MLS for active listings, but there is so much more that we can resource.

We look at listings that recently expired or canceled, and we can look to private listings (or ‘for sale by owner’) as well. We’ll also look at specific neighborhoods or complexes where sellers may want to sell to you.

Once we find that home, we conduct a market evaluation to make sure we’re paying the right price. Once we have this established, we’ll draft the offer. At that time, we work with various banks and inspectors to do our homework and make sure you’re comfortable and confident. That’s when we’ll actually issue a deposit.

Once we find the right home, a market evaluation ensures we’re paying the right price.

When the conditions are removed and the deposit is set, you have a certain completion possession date. We then begin to work with all various professionals involved to make sure the transaction closes properly and on time.

The includes the banks, the appraisers, the inspectors, the seller’s agent, the insurance agents, and anyone else involved to make sure it goes through properly.

Once you move in, we’ll follow up to make sure everything is going well after the sale and handle any issues that might arise. We want you to be a client for life!

If you have any other questions about the home buying process or the services we provide, don’t hesitate to give me a call or send me an email. I’d be happy to help!

Can You Benefit From This New Down Payment Program?

michael@michaelireland.ca (Michael Ireland) — Fri, 20 Jan 2017 14:10:00 -0800

If you’re worried about coming up with a down payment for a new home, this new down payment assistance program might be the answer.

Today I want to talk to about the new program that matches dollar for dollar what a first-time home buyer can come up with as a down payment.

This program began the 16th of January and will end in March 2020.

So how do you qualify?

You must have a maximum household income of $150,000, be a Canadian resident, and to qualify under the bank’s five-year rate of lending. Also, you must have the money on account. In other words, it cannot be a gift from your parents that is then matched by the government.

This loan will require the buyer to accept a second mortgage registered on their property. This means even though it’s 0% interest for five years, five years from now that buyer will have an additional payment running alongside of their mortgage.

Experts are concerned this will impact a buyer’s ability to hold onto their home. We may see a lot of buyers selling their properties when that second payment kicks in.

Additionally, the purchase price has to be 80% loan-to-value ratio, which means buyers qualifying for the program will need to have CMHC or mortgage underwriting insurance, which can run from 2% to 3.5% of the purchase price. It will create a premium for some buyers in order to jump into the market with this program.

The government has intervened and created a stimulus, bringing future buyers into the market today. This creates a bump in demand, but it ultimately depresses the market in the long term because those buyers are no longer there.

So who are the winners in this program?

Banks, underwriters, and buyers who can qualify will benefit from this program. Any property up to $750,000 will experience a really strong demand, which is good for developers and Realtors.

Qualified buyers will benefit greatly from this program.

If you have any questions about this program please feel free to give me a call or send me an email. I look forward to hearing from you!

Which Events Had the Biggest Impact Our Real Estate Market?

michael@michaelireland.ca (Michael Ireland) — Tue, 20 Dec 2016 14:08:00 -0800

Today I wanted to give you a quick look at what happened in 2016 in our real estate market and how some major events affected pricing and opportunities.

The first big event was this summer when the federal government said that foreign non-national buyers would pay an additional 15% on property transfer tax. On the high end of the market, this pulled back demand significantly and immediately.

Then, in October, the Bank of Canada levied a change of policy that requires buyers to qualify under a five-year rate. This effectively reduced affordability by 20% or more for most buyers. Of course, this pulled back demand on the lower end.

So how resilient was the market to these events and the overall uncertainty with the election issues all the other sentiments of the market?

If we look at the median price for detached homes a year ago versus where it's at now, it went from $700,000 to $785,000. That's a 21% increase. The townhouse median price went up from $354,000 to $462,00, a 31% increase. Finally, apartments are up from a $211,000 median price a year ago to $249,700, which was an 18% increase.

Why did townhouse prices do so well? We can likely point to affordability since a lot more buyers were pressed into that product type. What do these numbers mean for opportunities? For buyers, when inventory rises and demand gets pulled back, we see more favorable pricing and more options.

It's also great news for sellers because a year ago, many of them couldn’t move up market because there was so little inventory to choose from. Now, they have far more options and they don't have inflation working against them.

In short, there are good opportunities for everybody coming up, and it looks like the market has been very resilient. If you or anyone you know is planning on making a move, give me a call or send me an email. I'd be honored to work with you. Merry Christmas to you and your family!

What’s Happening in Our Real Estate Market?

michael@michaelireland.ca (Michael Ireland) — Fri, 18 Nov 2016 10:38:00 -0800

We’ve seen some interesting changes in our market in the last 30 days. The average sale price is down and the average days on market is up.

Today we’re going to look at what’s going on in our current market based on what has happened in the last 30 days. Let’s start with the statistics.

There are currently 18,861 homes available on our MLS. In the last 30 days, we saw 2,636 of those homes sell. In that same 30-day period, we saw an additional 5,648 new homes on the market, which represents a real replenishment of the inventory.

If you would have sold your home a month ago, it would have taken, on average, about 14 days. That number has since stretched out to almost 17 days. If we look at the pricing that has resulted, you can see that while last month the average sale price was $602,667, it has been adjusted down to $595,745. This price adjustment is more in the top end of the market than in condos or townhomes, which are a little more stable.

What does this mean in terms of opportunity for sellers and buyers? For sellers, you’ve got to choose the right price and market your home aggressively to capture this opportunity. For buyers, you need to make sure you’re pre-qualified so you can purchase that perfect home at the right price when it comes along.

Sellers have to choose the right price and buyers need to be qualified.

If you or anyone you know is thinking of buying a home in Surrey, don’t hesitate to give me a call or send me an email. I would love to answer any questions you may have.

What the Numbers Tell us About the Current Market

michael@michaelireland.ca (Michael Ireland) — Fri, 28 Oct 2016 09:52:00 -0700

What are the numbers saying about the real estate market here in Surrey?

We’re currently looking at 5,565 homes listed on the MLS. In the last month, we saw 1,245 of them sell; those homes were then replaced by 2,245 new homes. That left us with 22% of all homes being sold.

If you compare this activity to the previous 30 days, when 29% of all homes sold, you can see that the sales-to-list ratio is beginning to drop. What does that tell us?

That tells us that the anticipated impact of the foreign buyer transfer tax is already starting to put gravity on prices. We’ve seen foreign buyers pull to the sidelines in many cases, and now a new phenomenon has been introduced into the market, of which we have yet to see the full impact of. What I’m referring to, of course, is the new mortgage qualification criteria that was introduced at the beginning of October.

This new criteria specifically affects first-time buyers. How? Prior to this legislation being enacted, a buyer who could previously qualify for a $700,000 mortgage can now only afford a $550,000 mortgage because their purchasing power has been reduced under the new five-year rule. As a result of this, the demand will likely decrease overall in the market.

Inventory is rising and demand is dropping.

With inventory rising and demand dropping, prices will likely also drop slightly. Fortunately, because we have good fundamentals supporting the conditions of the market, we can better accept the fact that the market has changed from where it was in the spring and summer.

If you or someone you know is planning to buy or sell property, I invite you to give me a call or send me an email. I look forward to helping you!

How the New Transfer Tax Amendment Affects You

michael@michaelireland.ca (Michael Ireland) — Thu, 4 Aug 2016 14:21:00 -0700

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How does the new 15% transfer tax amendment on the purchase of residential real estate in the Vancouver region affect you?

As we know, there is already currently a property transfer tax amendment surcharge on the purchase of residential real estate. It is 1% on the first $200,000 and 2% on any balance above that until the price hits $2 million, in which case the surcharge increases to 3%.

The introduction of this additional 15% tax surcharge for the purchase of property, however, applies only to non-residents. In the luxury arena - where most of these people are active - this represents only about a 5% component of all transactions. Of course, if you go into the mid-range market, it represents an almost negligible figure of the overall transaction. Remember - this only applies to the residential purchases; it does not apply to commercial transactions or agricultural land. The implementation is also only enforced in the greater Vancouver area, where the majority of market activity occurs.

"Markets have a funny way of becoming the stories people tell about them"

As an example, if a foreign buyer purchases a $2 million property that closes before August 2nd, their current transfer tax payable would be $38,000. This, of course, translates as a total purchase cost of $2,038,000. If that same $2 million transaction closes after August 2nd, the buyer would incur the installation of the 15% transfer tax. In this case, that 15% amounts to $300,000. So, in addition to the $38,000, the total transaction cost amounts to $2,338,000.

Our question becomes, then, how does this translate to the greater market? Consider this - with only 5% of the buyers impacted by this new tax, it shouldn’t make too much of a difference, right? Possibly, but markets have a funny way of becoming the stories people tell about them, so even on a sentimental basis we can see how some buyers may refrain from buying until this news filters through the market. They may wait by the sidelines and hope the prices start tilting their way. At the same time, we might see sellers panic and react by dropping their prices in the hopes of snagging a buyer.

Overall, it’s clear that this tax news will favor buyers over sellers. If you have any more questions about this, shoot me an email or give me a call at (604)-541-4888. Thanks for your time.

Why For Sale By Owner Transactions Net 14% Less Money

michael@michaelireland.ca (Michael Ireland) — Wed, 3 Aug 2016 14:22:00 -0700

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What are the pros and cons of selling a home For Sale By Owner (FSBO)?

The National Association of Realtors has determined that 98% of all homes are listed and sold by a professional agent, meaning 2% are sold privately by the owner. Usually it's because, in those cases, the buyer and seller had an existing relationship.

The shocking fact is that the average FSBO sells for 14% less than it would with a real estate agent. Most qualified buyers want to work with a professional agent because that professional can both give them access to all the inventory and handle the entire transaction. And of course, the buyer doesn't pay anything or those services. Contrast that buyer with a private buyer who wants to forgo those professional services and go directly to a FSBO sale. This buyer is typically unqualified and wants to save money.

They basically fall into two categories:

The buyer who is a savvy investor who wants to buy a home at a deep discount
The buyer who cannot qualify for traditional financing terms, so they want the seller to do some kind of financing, or do some kind of creative rent-to-own deal

They typically realize that most homes listed on the MLS have a commission built in, and they want to negotiate that commission cost back into their own pocket at the seller's expense.

Even after a commission, you'll net more money with an agent.

So what are the advantages that an agent has in providing services to a seller? Agents are able to get sellers more money for their home in less time with less hassle for three reasons:

Agents can give a home exposure to thousands of buyers and agents out there.
Agents can pre-qualify buyers and negotiate the highest price
Once the transaction is done, agents can work within the relationships with banks and lenders to make sure you close successfully and on time.

So you can see that agents can offer a lot of advantages in bringing you value in a real estate transaction.

If you or someone you know is interested in buying or selling a home, I'd love to work with you. Give me a call and let's talk soon!

A Look at what the Surrey Market Numbers Say About the Future

michael@michaelireland.ca (Michael Ireland) — Fri, 22 Jul 2016 12:14:00 -0700

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Let’s take a look at where the market is at and where it’s going based on what the numbers are telling us. We can see that in June, 51% of all available inventory in Surrey sold. We’d call that a seller’s market.

If we contrast that with a year ago when only 26% of available homes sold, we can see that what we call the absorption rate actually doubled. For buyers, that means far fewer choices, and for sellers, it means getting prices that were very strong.

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Compared to just a year ago, the average sales price has jumped 23%

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When looking at the questions of whether or not it’s going to continue, we just have to look at the overall picture of where prices have gone in the last year. Looking at this June, we see that the average price was $703,207. Looking back to June of last year, this figure was $571,595. Average prices for the same home are 23% higher, and in some cases, much more.

This is because a lot of buyers who could have afforded a single-family home a year or two ago can now maybe only afford a townhome.

If we look at where the real winners in the market are going to be, we can see that townhomes are doing well because there’s a lot of demand for them. We can also see that because of interest rates being five-year rates at 2.25% a lot more buyers will enter the market.

If we’re looking at what’s going to happen in the summertime - generally between mid-July and August - many home buyers have purchased and are now in moving time. We can see beyond that that we do not have enough inventory to level out demand, so prices will continue in the upward trend.

If you or someone you know is looking to move in the market, I invite you to give me a call. I look forward to hearing from you soon!

We Appreciate Your Business, We Hope You Had Fun

michael@michaelireland.ca (Michael Ireland) — Fri, 8 Jul 2016 13:18:00 -0700

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Have I ever told you how thankful we are to have you as a client?

Our client appreciation event is a great way to step back and separate the business from the fun times, and just have a good time with their families. We received great feedback from our clients, who enjoyed the family affair and were thankful for the time. Our private showing of Finding Dory was a hit.

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I really enjoy spending time around our clients.

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"I think it's great for the kids, it's great to give back to the community, and it's awesome to be able to come together," was one of my favorite pieces of feedback from the event. One of our clients had the chance to take his young son to his first movie ever, and we were proud to be able to provide this day to our wonderful clients.

I really enjoy spending time around our clients. We have great relationships, and it's great to have an opportunity to talk with them in person and not just over the phone. This is a great event that gave us the chance to come together, and everybody learns something great from a Disney movie, right?

Thanks again for making our company what it is today! I hope you enjoyed our event!

Join Us for a Free Screening of Disney’s 'Finding Dory'

michael@michaelireland.ca (Michael Ireland) — Tue, 31 May 2016 14:58:00 -0700

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I’d like to take a moment to invite you to our annual client appreciation event. We’d love for you to join us for a screening of Pixar’s Finding Dory Saturday, June 18th at 10 a.m. at the Caprice Cinema in South Surrey!

Over the next week, we’ll send you an RSVP. Let us know if you’ll be joining us!

We want to thank you again for letting us take care of your real estate needs, and for being such amazing clients. We hope to see you there!

Check out the trailer for Finding Dory here: