Breaking News! Free Gas for All Canadians for one day. Seriously!

Free Gas

Free gas is a dream come true for many Canadians. Yes, this is not a fiasco. This is true. 

How do you get free gas for one day?

If you are a Canadian citizen or Permanent immigrant, and are a qualified home buyer, then you are eligible for getting full tank of gas for up to 4 cars in a household. 

Here's how.

1. You will be an active buyer client of Paul Cheema, Sales Representative, RE/MAX Professionals Inc., Brokerage (Independently owned and operated).
2. The term 'Qualified buyer' applies to one who is pre-approved for mortgage and has requisite down payment.
3. The term 'Active Buyer Client' refers to one who has signed Buyer Representation Form with RE/MAX Professionals Inc. Brokerage through Paul Cheema, Sales Representative only. Any BRA signed with any other agent of aforementioned company doesn't qualify for this offer.
4. The brokerage RE/MAX Professionals Inc. is in no way associated with this offer which is being offered solely by Paul Cheema, Sales Representative.
5. Purchase price to be between $200,000 onwards and any kind of property.
6. The offer shall begin on the day of waiver of all conditions and firming up the offer of purchase and sale.
7. Married Children excluded from the offer.
8. Ownership documents and photo IDs shall be requested.
9. Ownership documents and photo IDs must show same municipal address.
10. The gas will be filled in the presence of Paul Cheema or his representatives/team members.
11. No restriction on quantity of gas that your car tank can take.
12. The offer is for passenger cars/trucks only. Commercial vehicles excluded from this offer.
13. This is not a solicitation of active clients with other brokerages/companies.
14. This is not redeemable for cash.
15. The day of filling can be chosen by the clients at their own convenience.
16. The buyer undertakes to return the cost of gas if for any reason the transaction is not closed.
17. The offer is valid from Jan 12, 2013 to September 30, 2013.

Come for a joyful driving after your home purchase.

Not intended to solicit buyers already under Buyer Representation Agreements with other brokerages. It will be the buyer's own obligation to disclose the existence of any such valid and existing contract with any brokerage. Paul Cheema's obligation shall only be to verify if someone is registered client on the Toronto MLS's BRS system.

Fake home renovations- Home buyers beware!

Exercise caution! Fake Renovations need to be figured out

We are seeing more and more of 'Extensively Renovated' homes in the market. The house looks better than a brand new home with stucco on exterior, newer roof, basement apartment with separate entrance, new light fixtures, and what not! 

Are you a first time home buyer and have decided to put an offer on such a home?

You need to read this first.

Do you really need all those renovations for which you have agreed to pay more than area price?

Most of the renovations are meant to attract the unsuspecting homebuyers. Specifically, the one, who just falls for the shiny counterstops, nice gleaming floors and doesn't know about how the electricals should be or how the structure is, and which are more critical to making an informed decision.

Remember: All that glitters is not Gold!

I routinely come across many such stories of aggrieved buyers who get stuck with the property. Even five years later they can't recover their equity as they bought a home too high in the first place. Why should a buyer be forced to pay for some renovations that one can live without?! For example stucco on the exterior. Sure it looks nice, but if the seller is looking at $30,000 hike in price because he did stucco, why should the buyer pay for it? 
Some times even the so called 'investors' end up spending too much because they were told by someone that they can sell this home later at a very high return and end up seeing their home on market forever.

A few renos do help in longer run as they reduce the recurring costs like hydro, gas and water bills. While there may be a few frivolous upgrades as well which are more of cosmetic nature than actual use.  If I am buying a home I will least consider the following upgrades:

1. Paint in home - Won't cost a fortune and I can do it myself
2. Electrical fixtures - Great to  have them. But if the seller is looking to suck money out of my pocket, I will ask him to take them away. Why pay $200 for a fancy flush light fixture when I can get away with $35?
3. Hardwood floor- At a reasonable charge, it is okay to have it. So long as the floors are not squeeking, I will be okay with laminate or broadloom (Has to be neat though)
4. Backsplash-If I am tight on cash and there's another home at a lesser price, I will go for that house.  The backsplash is not a rocket science and I can do it later.

Renos which are advantageous

1. Furnace- A newer energy efficient furnace is the most important upgrade. It reduces gas cost and also hydro cost
2. Windows and Doors- helps conserve energy of the home and decreases the utility cost
3. Roof shingles - helps conserve energy
4. Enhanced ventilation - Roof ventilation helps avoid mold formation. Older roofs have less ventilation and are more prone to mold growth
5. Exhaust in kitchen/bathrooms - helps remove moisture, cooking vapors/smoke and minimizes the risk of mold formation
6. Bathroom renovations and plumbing- This is hygienic for occupants and avoids wastage of water. Dual flush tanks reduce a lot of water and waste water bill
7. Roof insulation - Retains heat and cold of the home
8. Copper electrical lines and breaker switches- Reduces insurance cost

Do you have a professional agent working for you?
Some homebuyers are under the impression that going direct they will get a better price from the homeseller. But who will determine the best price?  The area sales are a good starting point. But are they sure that the home being compared to the subject home is similar or that price adjustments have been made to account for the asking price.

A real estate sales representative has tools at his disposal that tell the whole history about the home under consideration. The realtor has the professional capability to make adjustment in price vis-a-vis another sold in the neighbourhood.  Why not use that expertise which, for a home buyer, is completely free? There are many cases when the homebuyer didn't know that the home is located right under the air corridor and that about 70-100 flights pass through that corridor shaking windows and that a train track just nearby shakes the entire house resulting in cracks in foundation.
Check out www.Howrealtorshelp.ca for more insight into this.

A professional realtor will negotiate for the best price and for a best home only.

I recently happened to see a house for a client a few months back which was on sale for $380,000 plus. The seller had just bought it a few months back for about $250s and after doing stucco, electricals, flooring, windows, doors is trying to cash over $ 100,000 while the renos may not be worth more than 30,000. Just for info the house is about 900 SF with one bedroom basement.The roof doesn't have soffits and I suspect poor insulation and ventilation there too.  My advice to the client was not to buy it and he understood. Wisdom prevails.

For more information on what should or should not be done when you go for purchasing your first home, don't hesitate to call me or text me or leave a voice mail. You will always be responded back promptly.

Dripping 'upgraded' light fixture in porch

An electrical shock/fire risk awaits to happen

(C) PAUL CHEEMA-2012, No part of this blog to be reproduced without attributing proper citation to the author. Protected with anti-plagiarism software.
DISCLAIMER: These are my personal thoughts based on my own experience with home buyers and home owners. You may have different experiences and yes, there are always exceptions to everything in this universe. Definitely this content is not provided with an intention to solicit clients already under contract with other brokerages.



 

Should you Buy a home now?

The market is cooling its heels after a brisk run in the past months. The inventory is there and the sellers are beating each other by lowering their asking price. Some sellers are desperate as they have another closing approaching for them. The mortgage rates are still low. Yes, under the current scenario I believe it is the right time to buy for a buyer with good credit, good job, and good down payment.

So, what you need to know to reap the benefit of fallen market?

The foremost is maintaining your credit score.  If you are really planning to buy a home, hold on to your car loan or any other consumer goods loan. This loan will immediately lower your affordability and put you in jeopardy of home purchase.

1. The next is to go for pre-approval. Though pre-approvals don't mean much, but it does one thing and that is hold on interest rate.  Rest all is conditional on this and that condition. So make sure you lock into a rate.  The benefit of pre-approval is that if the interest falls you get lower interest and if it goes higher, you are still at a lower rate. Sound good? Speak to your mortgage consultant and don't shy away.
2. The pre-approval does another great thing.  It tells you your affordability. Stick to that and you won't get into trouble.
3. Some sellers will settle for less if you can close early.  See if it is possible for you.

There are more to what can be written in this post. One must make a diligent decision to have them enjoy the home rather than getting into financial crisis.

Call me to discuss your home purchase today. I can be reached 24/7/365 at 416-232-9000 or you can drop me a line at paulsellsfaster@yahoo.com. You are encouraged to visit www.quicksellnbuy.com for many tools like mortgage calculation, affordabilty calculators and many new listings.

Happy Home buying!




Disclaimer: The information is provided as a research and information help.  Please use your best discretion when buying real estate. Though it is deemed to be reliable, no warranty of any kind is implied.

 

Bank of Canada - Overnight rate remains unchanged

Today was a scheduled BoC "Rate Review Day." The news is, BoC left the Key Lending Rate flat. This is in stark contrast to 6 weeks ago - where the rhetoric was "rates are going up, and soon."
But since then, the ongoing economic turmoil in Europe and weaker than expected U.S. employment numbers, have added up to renewed Global uncertainty. So what began as a quiet whisper, just days ago, is now a growing opinion that the BoC may even trim the Key Rate - down.
The other side of the coin - low mortgage rates continue to be a plus for homeowners, homebuyers, and sellers too. And according to reports from the Big Five and BoC - Consumer debt is beginning to correct too.
On another note, OSFI is about to announce a major set of guidelines for Federally Regulated Lenders that will affect mortgage lending and reach renewals too. Some of the ideas they have floated in public have raised eyebrows - more to come as the facts become known.
The next scheduled date for announcing the overnight rate target is 17 July 2012. A full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 18 July 2012.

What does Walk Score mean for a First Time Home Buyer

Walking is good for  health and savings

While I was showing homes  to my young couple clients, they asked me to get them a home with the lowest walk score. Heard this first time?! What is this walk score anyways? Most of us don’t know about it but believe me it is becoming a new concept in home buying or renting. Walk score is emerging as a new trend in the minds of people when they plan to buy/rent their first home. As you would have guessed, a walk score is a measure of closeness of many facilities close to your place of residence.  The walk score is measured over a scale of 0-100 with 100 being the best. A walkshed is defined as a distance from your place of living to the amenities like school, hospital, shopping centre/mall, arena, library, restaurants and eateries etc. A walkshed is believed to be less than 1 mile from your place of residence.

Walking is just a personal option. But, if Americans, as an example,  trade their cars for walking for at least 30 minutes each day, they might be able to reduce the carbon foot print by more than 58 million metric tonnes and 24 billion litres of gas. Isn’t that amazing? The world would be a better place to live in and enjoy.

All those amenities that lie within 1 mile (1.6 Kilometers) of distance are given the higher score while those beyond this are given zero scores. The culminating total of all such amenities together makes the walk score. A score of 90-100 could be termed as walker’s paradise where a resident doesn’t need a car to commute and meet daily needs.

Walk score is measured using  Google™ API and it has some limitations as well. The walk score doesn’t know about the topography of an area, might miss on a few amenities or places of interest like a newly opened Starbucks® or Tim Hortons® or a supermarket. You can always add these to the API to improve the score.  Walk score is only tells you how easy it is to live without a car.

Most of the newcomers to Canada  have difficulty getting a driver’s license which may take at least 8 months or more. Many newcomers can’t  buy a car for some time and want to save on commute expenses.

If you are a newcomer to Brampton, Mississauga or Greater Toronto Area, let me find you either a rental or a resale home with the highest walk score. You can save a lot of money and keep fit at the same time.

Sources
•Carter, Matt. "Gas prices pique interest in Walk Score." Inman News. 2008. http://www.inman.com/news/2008/06/25/gas-prices-pique-interest-in-walk-score
•Complete the Streets. http://www.completestreets.org/
•Forrest, Brady. "Neighborhood Leader Boards on Walkscore." O'Reilly Radar. 2008. http://radar.oreilly.com/2008/06/neighborhood-leader-boards-on.html
•"Frequently Asked Questions." The Walking Site. http://www.thewalkingsite.com/faq.html
•"Frequently Asked Questions." Walkable Communities, Inc. http://www.walkable.org/faqs.html
•­Slater, Dashka. "Walk the Walk." The Green Issue. The New York Times. 2008. http://www.nytimes.com/2008/04/20/magazine/20Act-t.html?_r=2&pagewanted=2&oref=slogin
•Smart Growth. http://www.smartgrowth.org/
•Steffen, Alex. "WalkScore and the Great Neighborhood Book." WorldChanging. 2007. http://www.worldchanging.com/archives/007055.html
•Walk Score. http://www.walkscore.com
•"Walking for fitness: How to trim your waistline, improve your health." Mayo Clinic. 2006. http://www.mayoclinic.com/health/walking/HQ01612
•"Walkscore.com." Environmental Building News. BuildingGreen.com. 2008. http://www.buildinggreen.com/auth/article.cfm?fileName=170319a.xml
•Weil, Richard. "Walking." MedicineNet. http://www.medicinenet.com/walking/article.htm

How to make sure you Really are in multiple offer situation? This could be a trap! Home Buyers, Beware!

Bidding war at Multiple offers

 I am in real estate for about 5 years now and have seen a lot of very interesting situations. The most significant of all is the multiple offer situation. The buyer likes a home and so does many others. The result; more than one offer on a property and all buyers and their agents pitting against each other, bidding war on and guess who's smiling? Definitely the seller and his listing agent. :-) This makes sense if you as a buyer are at the site and you see lots of car parked, whispers of other buyers with their agents or most secretive talks inside the cars. Even the most talkative and loudest person is speaking that is barely audible. Lol! In nutshell, no body wants the other buyer or his agent to get a wind of what he/she is offering and this makes perfect sane sense. My advise to all my buyer clients is to walk away from such situation. Why?  Well the only winner in this case is one and one only and that is the SELLER. All others lose! The one who gets the so called 'winning bid' and the others who can't make it. The winning bid buyer paid more than he should have from his hard earned money and in my personal opinion he did lose his many hard working hours, sacrifices of his family in making letting him spare time, away from his family and children and here in one go, he goes $5-20,000 over asking price. Not only this he is refrained from doing the most important diligence measure; the home inspection let alone putting him to risk of mortgage refusal and ultimately landing him trouble far serious than just getting the house.

The above scenario definitely tells you that there were more than one offer as you were witnessing all this activity. But now let me take you to a far more serious problem in buying a home.  Consider the following scene.

The home is listed for a while, say 60-90 days and suddenly you discover it, like it and ask your agent to put an offer. Then suddenly you hear from the listing agent that he has another offer on the property and the seller wants all the offers by fax/e-mail/any other means except physical presentation. Now what will you do? I advise a word of caution here.  Even if your agent suggests you to remove those important interest securing clauses like home inspection, mortgage, & re-visits to the property before closing, apart from offering a higher price, simply say NO or if you have a real interest in the house and it serves your long-term purpose, ask to be protected against the so called 'multiple offer' situation. Ask your agent to write a clause in the offer, if you agree on removing above conditions and pay more price than you were initially ready to pay, that would make sure that there indeed was another offer. The clause should give you a right to re-negotiate the offer is the listing agent couldn't prove existence of another offer/offers and keep your interest not just safe but I would say the safest.  I use this clause in such situation for all my  buyers that I heard from one of the training session at a convention and eventually fine tuned it for specific use. 

Many times such multiple offer scenes have been found to have been crafted and staged cleverly and it is not uncommon to fall for them. In summing up I would advise you:

1. Don't get attached emotionally to any property 
2. Walk away from multiple offer situation and look for another home. Maybe you find another great deal without making a big hole in your pocket
3. Ask your agent to take steps in the offer that leave no doubt about existence of another offer
4. Don't ever remove home inspection. Well if you are offer the highest price, what issue does the seller would have in allowing you to do the home inspection?! If not for 5 days, write the condition for 1 day. Most of the agents can provide a home inspector in as less as 2 hours and maximum of 24 hours and you will have the home inspection report at the site itself and finally
5. BEWARE! BEWARE!! & BEWARE!!!

Hope you buy a home and stay happy thereafter! For great resources don't forget to visit my website at www.quicksellnbuy.com.   Should you have any comments or questions, please feel free to post them.

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