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Old 06-13-2010, 05:29 PM   #1021
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Originally Posted by Julio View Post
Sorry WP...I meant that that is the length of the mortgage a lot of people take out, so that's the time frame that CMHC looks at the building still being around.

As far as the reasoning, that was it...financing was in place, the guy even wanted to buy some of our staging furniture. He just didn't have the 25% down in order to not have to deal with CMHC or another mortgage insurance company.
So, he couldn't assume it?

<Sorry if that's a dumb question>
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Old 06-13-2010, 05:38 PM   #1022
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So, he couldn't assume it?

<Sorry if that's a dumb question>
Not dumb, but not the right question...the issue wasn't with him getting a mortgage...that was solid. The issue was that because he was putting down less than 25% he has by law to have mortgage insurance. Said insurance (from CMHC) was refused, therefore the deal crumbled. if the guy had the extra $ to bump his down payment past 25% and not worry about CMHC, the deal would be going through this week.
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Old 06-13-2010, 06:13 PM   #1023
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http://www.findcalgary.ca/listings?p...=127&pageId=19

^^^ As of June 11th, the 6,000 SFH barrier has been broken. At one point it seemed like inventory growth might have peaked and was slowing down a bit, but at this point we're still adding 35 homes a day.
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Old 06-13-2010, 06:53 PM   #1024
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I know a few of these people 1st Land...they are really frightened...I have had one lady in our building come out and actually yell @ my g'friend because we lowered the price of our place because she feels it invalidated how much she paid for her similar unit @ the top of the boom.
some people dont have a choice. They need to re-locate for work or for family reason, or they are building a new house, so even in a negative equity situation (which they are blissfully ignorant of until I show them a list of comparables) they need to / are motivated to sell.

I recommend renting to my clients (renting their residences instead of selling) that way they dont have to take a huge loss and have the potential to recoup more value out of their home in a few years time if things pick up and change.

I've had one client specifically tell me that he wants to throw in a free trip to mexico to either the buyer or buyer's agent. This is as opposed to lowering the price.

At the end of the day, List Price is the best marketing tool for your property, with pictures coming in a close second.

Last edited by 1stLand; 06-13-2010 at 06:54 PM. Reason: mistake
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Old 06-13-2010, 08:12 PM   #1025
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Not dumb, but not the right question...the issue wasn't with him getting a mortgage...that was solid. The issue was that because he was putting down less than 25% he has by law to have mortgage insurance. Said insurance (from CMHC) was refused, therefore the deal crumbled. if the guy had the extra $ to bump his down payment past 25% and not worry about CMHC, the deal would be going through this week.
It's only 20% down needed to avoid CMHC now. How much did he say he was putting down?
Was he a first time buyer? If not, he should have been at 20% or more anyway.
Something is not adding up. Did he have a subject to financing in the offer, and then tell you all of this as a reason for not removing subjects?

Quote:
Sorry WP...I meant that that is the length of the mortgage a lot of people take out, so that's the time frame that CMHC looks at the building still being around.
I see, you meant the amortization period.

Last edited by Winsor_Pilates; 06-13-2010 at 08:15 PM.
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Old 06-13-2010, 08:17 PM   #1026
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Originally Posted by Winsor_Pilates View Post
It's only 20% down needed to avoid CMHC now. How much did he say he was putting down?
Was he a first time buyer? If not, he should have been at 20% or more anyway.
Something is not adding up. Did he have a subject to financing in the offer, and then tell you all of this as a reason for not removing subjects?


I see, you meant the amortization period.
He was a 1st time home buyer, (still in school) and pretty much was putting 5% down...at least that's what his deposit was, with financing covering the rest.

And yes...amortization...needless to say I don't always have my jargon right when it comes to this stuff...

Last edited by Julio; 06-13-2010 at 09:00 PM.
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Old 06-14-2010, 04:52 PM   #1027
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relisted...dropped the price 20%, finally got an offer, quick close date and such, then got refusal for CMHC insurance. (It's a post tension building)
I had a chat with my mortgage broker who put in a call to CMHC. Bottom line - they are still issuing insurance on PTC buildings.

However, if your Condo Board has been lax in getting it's inspection reports done, or the report suggests problems you will not get insurance from them.

Julio - what is the date of your PTC inspection report and are there problems? If so, I suggest you take this up with the Board / Property manager. Everyone in the building is screwed so you would hope people (including the Board) get this resolved ASAP.
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Old 06-14-2010, 05:17 PM   #1028
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I've actually had some good success with most of my listings in this market. A house that is right priced and shows well does have good potential to sell. But there's really no room for error in this type of market:

a) Your house needs to show perfectly in every aspect. You can't expect someone to walk through your house and love it if you're not willing to put the work and discipline in to make it perfect. Furthermore, you see a lot of listings out there with bad photo's and bad descriptions on the listings. I can only imagine how badly they show as well. Actually, I know, because I've walked through a bunch of them.

b) Your price needs to be competitive vs. what else is in your trading area. It's really important to get a grasp on the other houses that your potential buyers are walking through, and price accordingly. In this type of market, if my sellers are willing, I make it a regular practise to actually physically visit with them the 4 or 5 closest comparables in the trading area to get a first hand look. In addition to really analyzing on paper all the comparables in the area, this exercise can be a bit of a wake-up call and add extra motivation in terms of getting what needs to be done to prepare a house for selling.
I bought my house last May and it was a rough time for sellers. Inventory was pretty high and not moving at all. Finding comparable sales as a buyer was near impossible, and it was all guess work.

The amount of houses I went through that looked like absolute crap compared to the pictures was very disappointing. I grew to hate the photography tricks some people would use to make their place look better on the internet, but like crap in real life. They need to get higher resolution pictures on realtor.ca because it would have saved me hours of looking at junk.

It was just as shocking how many people put no effort into getting their place to show well. Clean up all your baby junk and tidy the place up a little. You're trying to stack up against hundreds of other sellers. There were some relocation agencies trying to sell places with dead lawns and interior paint in a horrible state of repair.

People can be picky right now, the attitude of "they can paint it the color they want and we'll knock $1000 off the price" doesn't work. Buyers can find places with all these things already taken care of and still move a lot on the price.

When I sold my place I ripped through everything and got rid of all my junk. I then packed up about half of my stuff to completely remove any clutter and make it look like I had ample storage. I sold my place in 6 days for more money than an identical place that was brand new. It was a lot of work to get it ready, but it was certainly worth it.
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Old 06-14-2010, 05:21 PM   #1029
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I've had experiences when I tried to set up times to check out homes in person and had nobody show up or were crazy late. For one listing in particular the realtor didn't even bother to call back when I expressed interest in a listing
This is why after looking at about 60 places I highly recommend using an agent to buy. My particular agent actually brought to light some faults with certain properties I was interested in and helped keep me from making a bad decision from getting frustrated at not finding anything. I looked at a few without him, and it was so nice to have someone to coordinate all of your viewings for you. I would just show up on a Saturday afternoon and rattle through 4 places no problem.
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Old 06-14-2010, 05:22 PM   #1030
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My favorite camera trick is mountain view pictures for a condo facing an adjacent building.
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Old 06-14-2010, 07:28 PM   #1031
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Some day this bubble will burst. We can only hope and wait.
High inventory locally and nationally...check
Rising interest rates...check
HST starting Jul 1 in BC and ON...check
Near record average house prices locally and nationally...check
Realtors finally admitting that prices will drop...check
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Old 06-14-2010, 07:57 PM   #1032
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High inventory locally and nationally...check
Rising interest rates...check
HST starting Jul 1 in BC and ON...check
Near record average house prices locally and nationally...check
Realtors finally admitting that prices will drop...check
Careful, Winsor Pilates gets . . . antzy, about people talking about realtors. Heh.



But yes, it seems like a watching a slow motion train wreck.
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Old 06-14-2010, 08:27 PM   #1033
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haha, yes be careful. I might defend myself from the incorrect stereotypes and generalization you guys like to throw around.
and of course, the smiley faces
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Old 06-14-2010, 08:41 PM   #1034
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Careful, Winsor Pilates gets . . . antzy, about people talking about realtors. Heh.



But yes, it seems like a watching a slow motion train wreck.


http://www.nationalpost.com/Calgary+...361/story.html
Don Campbell still likes Calgary here.....rising incomes going forward check...just to add some balance here...
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Old 06-14-2010, 09:09 PM   #1035
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Careful, Winsor Pilates gets . . . antzy, about people talking about realtors. Heh.



But yes, it seems like a watching a slow motion train wreck.
Realtors serve a function but let's not forget that they're paid on commission and that unfortunately causes some conflicts of interest. They've also been fortunate with increasing house prices and unchanged commmision rates (7/3) to get a nice pay raise for similar work (some might say easier work during a boom). Why would they want the party to end? I wouldn't.

Every big downturn realtors are usually the last onboard as they were with the recent housing crash in the US. The fact that they have finally repeated what others have said for some time is interesting to say the least. It's another variable to a growing list of signs that the party is over.
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Old 06-15-2010, 10:35 AM   #1036
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High inventory locally and nationally...check
Rising interest rates...check
HST starting Jul 1 in BC and ON...check
Near record average house prices locally and nationally...check
Realtors finally admitting that prices will drop...check
Job losses?
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Old 06-15-2010, 01:59 PM   #1037
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Originally Posted by Julio View Post
Sorry WP...I meant that that is the length of the mortgage a lot of people take out, so that's the time frame that CMHC looks at the building still being around.

As far as the reasoning, that was it...financing was in place, the guy even wanted to buy some of our staging furniture. He just didn't have the 25% down in order to not have to deal with CMHC or another mortgage insurance company.
Post tension is a big issue. It seems odd that they havent fixed it yet, have you looked at the long term projections for the building condo fees. Sounds like there is a big cash call coming for unitholders in that building.

When I was looking I found one amazing place, placed a bid got an inspection done and within 6 years there were going to have to be cash calls totalling $17K. Seller didnt disclose that.

I asked my realator about that and she said it isnt required but is very very shady done - this was durring the crazy 06/07 year so things where going fast and furious at that time.
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Old 06-15-2010, 02:07 PM   #1038
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Originally Posted by hulkrogan View Post
I bought my house last May and it was a rough time for sellers. Inventory was pretty high and not moving at all. Finding comparable sales as a buyer was near impossible, and it was all guess work.

The amount of houses I went through that looked like absolute crap compared to the pictures was very disappointing. I grew to hate the photography tricks some people would use to make their place look better on the internet, but like crap in real life. They need to get higher resolution pictures on realtor.ca because it would have saved me hours of looking at junk.

It was just as shocking how many people put no effort into getting their place to show well. Clean up all your baby junk and tidy the place up a little. You're trying to stack up against hundreds of other sellers. There were some relocation agencies trying to sell places with dead lawns and interior paint in a horrible state of repair.

People can be picky right now, the attitude of "they can paint it the color they want and we'll knock $1000 off the price" doesn't work. Buyers can find places with all these things already taken care of and still move a lot on the price.

When I sold my place I ripped through everything and got rid of all my junk. I then packed up about half of my stuff to completely remove any clutter and make it look like I had ample storage. I sold my place in 6 days for more money than an identical place that was brand new. It was a lot of work to get it ready, but it was certainly worth it.
It was like that for me when I bought, you probably looked at alot of places that have renters there - no incentive for the renter to clean up.
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Old 06-15-2010, 06:19 PM   #1039
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An update:
I had my Realtor dig a bit deeper, in no small part because of the information both from the thread and from PMs I've got from people here.
Turns out it wasn't the PTC issue...our latest report (which I dug up) was fine, and from last Dec. Given this, my guy called Bull on that reason, and called his opposite number...turns out that Genworth (not CMHC) did the thumbs down on insuring the mortgage because of general concerns (such as past special assessments, and one ongoing that I have already paid off, and which is designed to stop with ongoing special assessments) about the finances and reserve fund of the condo. As has been mentioned in the thread not just bankers but mortgage insurers are being tighter with things than in the past.

So, we still lost the sale, but at least we can go forward without thinking the property is unsellable to a 1st time buyer. We'll keep trying to keep things looking good and clean in the place, and hope the right people walk through the door that can see the great place we loved to live in.
I would really like to thank all the folks who are contributing on this thread. I got a lot of good feedback on our place (PM me if you want the MLS number) from various people, and it was really great to see the mighty force of CP harnessed in a way that directly affected me. In particular shoutouts to newts, Winsor_Pilates and I-Hate-Hulse for the help/information.

If nothing else, the g'friend now understands the mighty power of CP and why I spend so much time on here...she even told me I have to announce it here when we do finally sell the place!
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Old 06-15-2010, 06:51 PM   #1040
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Job losses?
That's another variable for sure in a long list of signs towards a potential housing crash. Unemployment is still high.
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