Myths Busted

There is a disturbing trend in real estate these days. The ability of people to google, check mls, zoom on Google Earth has empowered Buyers ....mostly in a good way! Buyers are educated, they know what they can get for their money, they can check the neighbourhood and search out statistics. All good.
What it has caused though is a sense of "I know the market", "I watch mls", "I will just work with the listing agent". Here are some points to keep in mind:
1. Knowing what is for sale does not tell you what a property ultimate sold for - there is often a big gap! Therefore a Buyer can easily overpay;
2. What you see on the internet is often deceiving. Good photos can make a property look incredible, and not show the drawbacks. Equally so, and more importantly.....bad photos can have you overlook the perfect property, extending your search time;
3. MLS does not provide a good feel for different areas. A property in the Haliburton Highlands compared to a property in Muskoka or The Kawarthas are not all equal. Your Realtor can explain why there are differences and what your money truly should get you in each individual market;
4. Calling the Listing Agent each time you see a property causes extra work for you, the prospective Buyer. The Listing Agent, until a Buyer Representation Agreement is signed, is working for the Seller. They do not know your likes, dislikes, price point, area of interest. Therefore you continue to call agents, only to find out that the property is not for you, and you start again.
4. Working with the Listing Agent does not give you a better purchase price. At the end of the day, the Brokerage gets paid, and the Seller wants the price that the Seller wants. The listing agent will sell the property - if not to you, then to someone else, all they have to do is wait. Remember, the listing agent's job is to get the Seller the best possible price for their property, not create a fire sale so they can get paid quicker.
One of the scenarios that we are seeing today is a couple drive to the area on Saturday to look at cottages. They have 4 appointments with 4 different listing agents (tough to coordinate to start with!). The couple sees each individual property - none are what they are looking for, they have lost a full day with no results, and each of those 4 agents knows nothing about the Buyers or their goals. The day is a loss, and the next weekend the couple start the dance all over again!
Here is what should happen: the couple talks to 3 or 4 different agents to get a feel for each of the agents. Are they a good fit? Are they truly interested in my goals? In my wishlist? Do I get a sense that this agent will spend time on my behalf? Do they seem to have a knowledge of the listings currently on the market and the area/town/lakes? Once the "right fit" is found, the legwork is in the hands of the Buyers' agent. That agent will look at what is on the market, with their knowledge of each lake (big, small, weedy, good boating, good swimming, quiet), they will weed out the listings on lakes that don't fit the Buyer's wishlist. Then they will look at factors such as seasonal, access, water frontage, # of bedrooms, move-in ready or needing tlc.....THEN, and only then, will they forward possible properties to the Buyers. The Buyers only look at properties that are true candidates. A date is set, the Buyers come up, and the agent takes them to each of the potential properties. The Buyer may not like what they see...that's o.k. It's a process. But that initial meeting is also crucial, because the agent is going to learn even more about you by your reactions to the properties that he/she has shown you that day.
Buying a property should be fun and exciting....not a huge amount of work. Let someone be on your side, work for you, and care for your happy ending.

Fireplaces and Woodstoves...again

I know .... a broken record, but a GOOD broken record. Last year I talked about woodstoves and fireplaces when purchasing a property - either home or cottage. It seems each year, lessons are learned over again, and it is all worth repeating. Two property sales recently with stories.....
Story #1. A house with a large, floor to ceiling fireplace.When listing the home I recommended the homeowner get a WETT certificate to ensure their fireplace was safe. A Buyer cannot get insurance without one now (yes -- rules have changed again). The owner was positive their fireplace was maintained in perfect condition and they never had a problem. It "heats the house beautifully". That being said, a working fireplace or woodstove does not mean that it passes certification by today's standards. The house sold (Buyer requested a WETT certificate in the offer which the Owner agreed to). Turns out the fireplace required replacement - all stone removed, etc. for a cost of $6,000. OUCH! Story #2. A house was undergoing a home inspection by the potential buyers when the inspector said there was some issues with the chimney and it would not pass certification. The owner had also informed their realtor that the woodstove in the basement was brand new - never used. There was another Buyer waiting in the wings hoping the home did not pass inspection, or that the Buyers would try to renegotiate so they could present their offer. Because of the other offer, and fear of losing the home they wanted, the Buyers signed off on the home inspection, prepared to pay for the repair in the chimney and get the fireplace and woodstove certified. As soon as they took possession, they called the professionals who quickly told them that the insert in the fireplace was completely finished, along with the chimney, and the woodstove in the basement had been used, was installed wrong, went through drywall, and was a serious fire hazard. A quote of $8,000 was given to bring the two up to certification standards.

Am I scaring you? That is not the intent, but please beware. Do your homework -ask your home inspector questions about the woodstove or fireplace. More and more agents are recommending that Sellers get certifications before they list to prevent problems at point of sale. But not all Sellers are willing to do this, then it becomes a negotiation issue. Everyone wants a fireplace - especially at a cottage. Along with the obvious heat they provide, they create atmosphere, coziness, and enhance memories. Done safely there is nothing better!

Luxury Properties

Haliburton County has seen a rise in luxury properties in the past few years. People have been moving away from other traditional high-end vacation areas and noticing what they can get for their money in the Highlands. Taxes are considerably lower than neighbouring tourist areas. The trade off is the size of lakes. We do not have a Lake Joseph in our County. What we do have is 600 lakes of varying sizes. Our lakes have a wonderful mix of the beginner cottager, the old traditional family cottage, and the beautiful new cottages with spectacular views and amazing water frontages. There are large, grand boating lakes, chains, and quiet, exclusive lakes. In 2011 there were 31 waterfront listings at a price range from between $800,000 and $2,800,000. Through all that choice, there were only 6 sales in that price range. The reason? Buyers do not yet think of Haliburton County as a choice for their luxury vacation property. Some of the properties in our area are outstanding, but we do not yet have a lot of buyers. Time will fix this, but it does show opportunity for Buyers to look at our County now. As more and more luxury properties are being built, there will eventually be more and more on the market. Because we are a "new" area to this specialty market, values will only grow, so a purchase now could provide good gains in the future. Worth considering!