Condo versus Freehold Townhouse- what about maintenance fees?

One common question that I see is regarding the maintenance fees on a condo townhouse. Many buyers ask for freehold townhomes, but condo townhomes can have low maintenance fees and there are other benefits too.

I hope this finds you Happy and Healthy!

All the Best!

Mark

---

This is the question I received from: GR
Subject: RE: townhomes

Thank you for getting back to me.

My only trepidation with condo townhomes is the arbitrary increase in maintenance fees that can happen. What range would you say the low maintenance fees are in?

thanks,

GR

__________________________

This is my answer to her question:

__________________________

Hi GR,

I understand your hesitation and have had other purchasers feel the same way. What I have found is that maintenance fees must be voted on by the board of directors and then the owners must ratify any increase. Normally, maintenance fees would only go up by 1 to 5% at about the most.

With the newer complexes they are fixed for the first 3 years and then escalate very slowly. The status certificate is a document that shows current and future budgets and will indicate any potential increase in maintenance fees over the next year and sometimes longer. Just depends on the range of the future budget.

Low maintenance fees would be in the range of about $90 to $175. I would think that higher maintenance fees are in the range of $250 and up. There are many complexes in Mississauga and surrounding areas that have low maintenance fees.

Also, the maintenance fee covers grass cutting, snow shoveling, garbage removal, common area lighting etc. Most important it covers your building insurance. Thus, you require less property insurance as you only need to insure your contents. I would say that you would save about $200 from your insurance premium in a condo townhouse versus a freehold townhouse, maybe more.

We will email you some listings with lower maintenance fees so you can see what you are getting into.

Thank you,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Fit to Sell New Program by RE/MAX helps Canadian homeowners

This is an interesting new program that RE/MAX has just launched. It will allow home owners to see what areas of the home the owner can prepare to help them attain the highest price in the least amount of time.

I hope this finds you Happy and Healthy!

All the Best!

Mark

New RE/MAX program helps Canadian homeowners
secure the value of their biggest investment


Mississauga, Ontario (February 19, 2009) – As home sellers across the country adjust to new market
realities, RE/MAX is set to launch Fit to Sell, an innovative new program designed to secure home
equity in uncertain times.

“The stark reality is that more than 2,000 properties are listed for sale every day in Canada,”
explains Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic
Canada, “yet only a quarter of them will be sold. With the creation of Fit to Sell, RE/MAX is
intent on helping Canadians get the most out of their biggest investment – their home.”

RE/MAX has enlisted the help of popular staging expert Carla Woolnough, host of the DVD series
‘How to Stage your own Home’ and owner of Nex-Step Design, to develop Fit to Sell. The program
encourages existing homeowners to increase their stake in the home-selling process by working with
their real estate professional to bring their home to the market. Fit to Sell ultimately rewards their
participation by maximizing sale price and minimizing on-market time.

“Sellers are no longer in the driver’s seat but there’s also no reason for them to take a back seat,”
explains Polzler. “We know that location, price, and condition are the three major factors that come
into play when selling a home – and while location and price are clearly choices made by the buyer at
the onset, condition is the one factor that a seller can influence. Sellers who make the right moves in
preparing their home for sale can maximize their housing potential and ultimately improve their bottom
line. After all, there are still buyers in the market and they are looking for quality product.”

RE/MAX and Carla Woolnough, the national spokesperson for RE/MAX Fit to Sell, have created a
checklist of the top 10 priorities for preparing a property for sale, ranging from air quality to furniture
placement and lighting. The checklist and tips can also be found on www.fittosell.ca

“By following these simple and inexpensive tips, homeowners across the country can secure top dollar
for their properties,’ says Carla. “All it takes is a little upfront planning and some advice from your
RE/MAX sales professional.”



The official launch of RE/MAX Fit to Sell will coincide with the opening of the National Home Show,
presented by RE/MAX, at the Direct Energy Centre on February 20 through to March 1. RE/MAX will
be presenting tips for consumers, with four scheduled appearances by Carla during the 10-day event.

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

current trends in the economy as reported by RBC

These are the current trends in the economy as reported by RBC today. Not the greatest news, but there is hope in the future.

Economy falters badly

• GDP dropped 0.7% in November following a 0.1% drop in October. The big decline is consistent with our current forecast of an annualized 2.5% decline in the fourth quarter overall. This is expected to mark the first of two quarters of declines and thus flag that the Canadian economy has fallen into recession.
  
• Employment fell by a record-smashing 129,000 in January and the unemployment rate jumped to 7.2%. The decline was concentrated in full-time jobs (-113,900) and hit Ontario, Quebec and British Columbia the hardest.
  
• With new motor vehicle sales tumbling and gasoline prices coming down rapidly, nominal retail sales fell by 2.4% in November, their biggest one-month decline since January 1998, thus painting a weak picture of the Canadian economy.
  
• Housing starts fell 10.9% in January to an annualized 153,500 from 172,200 in December. Urban singles plunged 20.2%, while the multiples component dropped 12.2%. This weakness is increasingly a reflection of the macroeconomic impact of the credit tightening on employment growth.
  
• The merchandise trade balance posted a deficit of C$0.5 billion in December, the first since March 1976. Exports fell C$3.8 billion (9.7%) — the largest monthly decline since October 1982 — but imports fell by C$2.2 billion (5.7%), which tempered the deterioration in the trade balance.
  
• Consumer prices fell 0.7% in December and the year-over-year rate slipped to 1.2% from 2% in November. Canada's inflation rate averaged 2.3% in 2008 — the fastest increase since 2003. RBC forecasts that Canada's inflation rate will dip into negative territory mid-year and average just 0.5% this year

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Should you do renovations on a fixer upper or sell as is?

I received this question today and thought I would post my answer here.

In a market such as the one we are experiencing now, I would suggest that you don't spend too much money at all on renovations.

Quick and inexpensive cosmetic fix ups are fine, but don't spend too much, you just won't get it back.

Pricing is everything in our marketplace.

When you have unfinished floors or stairs, I think you should put down the flooring and try to finish hardwood stairs.

Paint is not the end of the world, many will repaint once they move in.

With regards to the heaps of dirt or debris in your back yard, let's pray for more snow! :-)) Just kidding, and backyards are not deal breakers.

We will probably have another few weeks of harsh winter, but in my 21 years of real estate experience, one of the best times of the year to list your home for sale is just before or just after March break. People seem to begin their house search at that time and you may benefit by this.

Please let me know if you have any other questions.

I hope this finds you happy and healthy!

Thank you,

Mark

Shortage of supply? and Little competition? You're kidding!

People are asking me when I make comments such as there is a "Shortage of supply? and Little competition?" and this is the truth in many areas of Mississauga.

That's exactly what we are finding. I know it's not intuitively correct, but many of the properties currently on the market have been there for some time, are tired and not updated.

There is a serious shortage of good homes on the market, especially in some higher demand areas of Churchill Meadows. I've sold two homes in Churchill Meadows, both sold in less than 10 days because they showed very well and were priced right.

Credit Pointe is also an area that is in good demand and you live on one of the nicer streets, so if your home shows well and is priced right, it will sell.

It's not catastrophe out in our Mississauga marketplace, just a slower paced market, there are still hundreds of homes selling each month.

I feel we are about near the bottom, we many stay here for 2 to 6 months, but I don't see prices falling too much more. I may be wrong, but there is much pent up demand out there, many people with cash waiting to hear the news that the market has turned and by then it will be too late.

At any rate, just wanted to clarify and post here on my blog for all to see my comments!

Thank you,

Mark

What happens if a buyer does not close on a real estate sale?

This is a common question that I receive from sellers that I deal with, such as "what happens in the event when the purchaser does not have the funds upon closing and will not have the funds, regardless of any extensions"

Please understand that I am not a lawyer and cannot give legal advice to this question, this is a question for a lawyer to answer in full. I can shed some light on my experiences and teachings with such matters.

If the purchaser does not close on a sale on the agreed upon date, then it's incumbent upon the seller to put the property back on the market and try and resell at the best price and terms. In law, it's called, you have to "mitigate your damages". This means that you, the seller, has to try and reduce any potential loss you may incur when you resell. If there is a shortfall from the second sale compared to the first and you may incur extra costs, the seller would go after the first buyer for costs and additional out of pocket expenses.

Then there is the issue of the deposit that my real estate company is holding in trust for the buyer. It remains in our real estate trust account until one of the following occurs.

My teaching and experience regarding closings that fail is that there are 3 'typical' methods that a deposit comes out of trust.

1. If there is a successful sale
2. if there is a mutual release and
3. if there is a court order

There are others, but these are the main methods. Thus, if you sale does not close, you attempt to resell, any loss you incur you will attempt to go after the money in trust and attempt to negotiate with the first buyer to cover these costs.

On the mutual release you and the original buyer would agree to an amount of the deposit that comes to you and an amount that goes back to the buyer. If you cannot agree on the terms of the mutual release, you would have to go to court and sue the buyer for what is called 'specific performance' since the buyer did not consummate the sale.

Again, I am not a lawyer and you should ask your lawyer to further clarify what happens if a sale does not close.

Thankfully, this situation of a buyer not closing does not happen too frequently in real estate so we don't have to deal with it too often.

I've been in the real estate business for just over 21 years and this has never happened to any of my sales over the course of my career in real estate.

Thank you,

Mark

Price reductions In Mississauga to sell current listings

The reality of our current GTA and Mississauga marketplace is that you have to price aggressively in order to get sold. When I say aggressively, I mean that you have to be priced within 2% or so of market value, otherwise you may not sell in this marketplace.

I've had 3 listings that have been on the market for just over a month and although we are receiving showings, we've now had to reduce the prices to be price leaders in order to sell.

One listing is located at 3120 Turbine Crescent, a freehold townhouse in Churchill Meadows and it's now reduced to 299,999

See details and slide show at this link for Turbine:

http://www.mississauga4sale.com/listings/3120-Turbine-Crescent.htm

I also have two semi detached homes that are side by side (attached) where one is currently owned by the parents and the other by the children. This is a perfect setup for people that would like to have separate homes, but attached!

The one semi is located at 1185 Prestonwood is now asking $354,900 and the next door attached semi is now reduced at 1187 Prestonwood to $334,900

See details and slide show at this link for both properties at Prestonwood at this link:

http://www.mississauga4sale.com/listings/1185-Prestonwood-Crescent-Heartland.htm

and

http://www.mississauga4sale.com/listings/1187-Prestonwood-Heartland-District.htm

Please let me know if you would like to see inside any of the above great homes!

Thanks

Mark

Beware of Oil Tanks in a Residential Home Sale

I just took a real estate course and we were talking about the hazards and
pitfalls to try and avoid when selling a property with an oil tank.

One of the things that the instructor said to give some perspective on how
little of an oil leak or oil spill is necessary to contaminate ground water
drinking levels was:

1 cup of oil from an oil tank will contaminate water the size of an olympic
size swimming pool, which is threshold of 20mg of hydrocarbon per litre, or
20ppm

The point is that does not take too much of an oil spill or leak to ruin
well drinking water! Beware and make sure you do your testing before you
buy a home with well water, especially if there is an oil tank on the
property.

All the best!
Mark

What A Staging Consultant will do for your house

This page will give you ideas and tips when it comes to selling your home and staging it, this is one in a series of articles on staging your house

You will benefit by using the information contained within these articles.

Enjoy!
Mark

What A Staging Consultant will do for your house:

Ñ Look at your house through those highly critical eyes of the buyer

Ñ Highlighting selling features

Ñ Enhancing functionality and visual flow

Ñ Make your house appear bigger, brighter

Ñ Enhance the positive features and minimize the negative

Ñ Furniture layout, lighting, traffic flow, repairs, focal point

Ñ Appeal to more mainstream taste

Ñ Respect your individual situation, timeframe and budget

Ñ Make that all important first impression memorable

Ñ Critique and recommendations – a room by room, step by step, prioritized assessment of what needs to be done to get your house ready for sale

Ñ Maximize your return on investment, and protect your equity with an honest, unbiased and professional opinion.

In the end, it is you that will decide what recommendations you will implement.

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,
Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Home staging tips for your front entrance front entrance home tips when you are selling

This page will give you ideas and tips when it comes to selling your home and staging it, this is one in a series of articles on staging your house

You will benefit by using the information contained within these articles.

Enjoy!

Mark

The Entrance – Welcome!

Here are some tips for your front entrance to welcome the prospective buyers.

• install a new front door glass insert to let the light pour in
• clean up your interlocking bricks
• you could place an item that is in season on the font door
• make sure your front door looks good
• make sure front door hardware is in good condition
• plant some nice flowers out front
• clean your lights
• get a new mailbox
• get new house numbers so the agents can find your home
• use a quality door bell that works
• get a new front door mat
• make sure front entrance is clean

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,
Mark A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Should House Staging includes Repairs of your house

This page will give you ideas and tips when it comes to selling your home and staging it, this is one in a series of articles on staging your house

You will benefit by using the information contained within these articles.

Enjoy!
Mark

Home Staging includes Repairs

10 Fast and Easy Repairs – Show Pride of Ownership

1. Wall cracks, holes or dents – fill and touch up, repair torn or loose wall paper
2. Window trim and baseboards – either touch up or replace if cracked, scratched or faded
3. Windows and window panes – replace cracked windows, make sure windows are operate properly
4. Switch plates and electrical sockets – if cracked, outdated or not working, replace them
5. Faucets and toilets – repair if leaking or dripping
6. Toilet seats – replace if cracked, broken or hinges not working
7. Flooring – repair or replace flooring that is chipped, scratched, loose, broken or missing
8. Carpets – professionally clean all carpets so they look their best
9. Cupboard doors – repair any doors that do not swing smoothly
10. Replace light fixtures that do not work properly, or are outdated, replace burnt out light bulbs

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,
Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

What happens if a buyer cannot close on a real estate purchase?

I had a very good question asked today and I will show the question and my answer below.

The question was: Hi Mark, I've read your article regarding sale and purchase agreement. http://www.mississauga4sale.com/Agreement-Purchase-Sale.htm It is very helpful and professional article. I have one question, what happens in case of cancellation after all conditions went through? Lets say, after certain amount of time there are financial difficulties and there is not enough money for the closing. Thank you a lot, Have a great day, T.

This is my answer to this situation:


Hello T.,

Thank you for your kinds comments about my site.

Your question does not have a simple answer. There are many options and obligations open to each party when a purchaser does not have funds to close. First, I must tell you, if this is your situation, you must consult your lawyer for professional advice in this situation, this is a very serious situation and requires a lawyer to interpret and advise when a buyer cannot or does not close.

Many believe that the deposit is automatically forfeited to the seller if the buyer does not close. Nothing could be further from the truth. The deposit is only a sign of good faith in the transaction and remains in the real estate broker trust account until there is a mutual release, court order or a successful closing. There are a few other ways a deposit comes out of a trust account, but these are the main methods.

In my experience, some of the options open to one or the other or both parties when a buyer cannot close are:

• One option is to mutually release each other from the sale and sometimes the purchaser compensates the seller in some way.
• Another option is to put the property back on the market, try to re-sell the property and depending upon whether the property sells for more or less than the original sale, and taking into account other expenses, the original purchaser and seller can come up with a compromise
• The seller can tender on the purchaser to close the transaction and if they do not close the seller can sue the purchaser for specific performance for not completing the transaction as per the terms of the original agreement of purchase and sale. Again, this is complex and legal advice is required.

I think in all cases where a buyer cannot close on a sale, the seller should try and re-list the property back on the market, get the real estate board to reverse the previous reported sale and remove all the sale information, so agents no longer see what the original sale price was and try and re-sell the property.

I hope this helps.

Read more about the agreement of purchase and sale at this page:
http://www.mississauga4sale.com/Agreement-Purchase-Sale.htm

Please let me know if you have other questions,
Mark

Does "Buy and Hold" Work When the Market Goes Up and Down like a Yo-Yo?

This came in my inbox and was too interesting of an article to read.

We may benefit by following this advice!

Enjoy,

Mark

Does “Buy and Hold” Work When the

Market Goes Up and Down like a Yo-Yo?

I don’t know about you, but I’m a bit freaked out about the stock market. I know I’m relatively young, have a lot of time to recover, and that I don’t have a million dollars the market, but it’s very uneasy to think about the security of my invested assets in such a volatile market.

The day that I wrote this the S&P 500 index went up and down nearly 10%. To say that is volatile is an understatement.

You know what everyone says: If you are in the market for the “long-term” you don’t have to worry about the short-term volatility or losses.

I guess that sort of makes sense doesn’t it? Or does it?

This is a new very volatile world and I wrote this newsletter to give you something to think about and determine if buying and holding stocks right now is a good idea even when looking at the long term?

Ask yourself this question: If the stock market goes up and down and up and down over a ten year period with the average rate of return equalling ZERO, will the account balance be the same at the end of the ten-year period?

Put another way, if you invested $100,000 in the S&P 500 index where the index went up 10% the first year, then down 10%, then up 10%, then down 10%, and if this cycle continued for 10 years with the average rate of return equalling ZERO, would your initial investment still be $100,000?

The answer is NO!

Look at the following chart where I assumed a very volatile market that goes up and down 10% every other year and after ten-years the average return is ZERO. You’ll notice that the account value is $95,438.

Never go backwards and lock in gains

Most of you know that I’m a big fan of Fixed Indexed Annuities (FIAs) to hedge a client’s risk in the market and to earn decent returns when the stock market does well. FIAs are not a cure all. Not every penny of someone’s money should be in them, but as an asset allocation model, the older you get the more money you should have in a wealth building tool that will not go backwards.

What if the $100,000 invested in the above example instead went into FIAs? If I make a very conservative assumption that over time the cap on returns will be 8% annually, look at the results.

Initial Annual Return Acct. Initial Annual Return Acct. S&P 500 Investment Value Investment Balance Index FIA End Year 1 $100,000 10% $10,000 $110,000 $100,000 8.00% $8,000 $108,000 End Year 2 $110,000 -10% ($11,000) $99,000 $108,000 0.00% $0 $108,000 End Year 3 $99,000 10% $9,900 $108,900 $108,000 8.00% $8,640 $116,640 End Year 4 $108,900 -10% ($10,890) $98,010 $116,640 0.00% $0 $116,640 End Year 5 $98,010 10% $9,801 $107,811 $116,640 8.00% $9,331 $125,971 End Year 6 $107,811 -10% ($10,781) $97,030 $125,971 0.00% $0 $125,971 End Year 7 $97,030 10% $9,703 $106,733 $125,971 8.00% $10,078 $136,049 End Year 8 $106,733 -10% ($10,673) $96,060 $136,049 0.00% $0 $136,049 End Year 9 $96,060 10% $9,606 $105,666 $136,049 8.00% $10,884 $146,933 End Year 10 $105,666 -10% ($10,567) $95,099 $146,933 0.00% $0 $146,933 Ave.Return 0.00% 4.00%

Why did the FIA end up with an account balance of $146,933 instead of $95,099? Simple, in down years the FIA returned ZERO instead of -10% and in up years it returned 8%.

Are these examples real world? Prior to 1998 you would have said no way? Are these examples real world? Who knows, they could be. The question of the day is: are you doing everything you can to help educate and protect your client’s money in this uncertain world.

It’s one thing to have a conversation with your client where they are upset they only earned 8% when the market was up 10%+, it’s another to have one with them when their money earned ZERO when the market was down 10%. The first one I don’t mind having, the second one is really painful (especially if your client is over the age of 60-65and close to or in retirement).

-20%

Just in case you are curious, if the market has wild swing of 20% every other year (up and down), the account balance at the end of 10-years would be $81,537 and the FIA account balance would remain at $146,933.

Conclusion

I’m not sure if the days of “buy and hold” have come and gone as a tried and true way of growing your wealth. That may or may not be the case. What I know is that it’s time to have a discussion with your clients to help them understand ALL the various options to grow and protect their wealth and I think that conversation should include the information discussed in this newsletter.