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Archive for the ‘Home Buyer Tool Kit’ Category

Should you Buy a Fixer-Upper or a Move-In Ready Home?

Tuesday, April 18th, 2017

Shows like HGTV’s “Fixer Upper” have popularized the idea of buying and renovating the worst house on the best block. Homes that need major remodeling, however, aren’t for everyone. Sometimes a move-in ready house is a better option. Whether you’re a first-time homebuyer or a seasoned investor, it’s important to understand the pros and cons of each.

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Prepping for a Home Sale or Purchase in Edmonton.

Thursday, March 30th, 2017

Spring has sprung, which means the housing market is in full bloom. Each year, roughly 40 percent of real estate transactions occur between the months of May and August. If you’re feeling inspired to buy or sell a home soon, make sure you’re prepared. Use these checklists to catch anything you may have missed.

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Will Selling Your House in Spring help you make a Better Profit?

Tuesday, March 28th, 2017

Edmonton Real Estate Market Reports for March 2017

Spring is here and so is the hot Edmonton Real Estate market.  We have the beginning of warmer and longer days as well as spring cleaning.  Mostly, we are all looking to enjoy our spring break and spring fever…  It’s also a great time for spring house sales.  Does selling in the spring help you make better profits?  Not necessarily and we’ll explain why.

You’ll basically have a 1 in 5 chance of selling in the spring and a 1 in 6 chance of selling in the fall.  So why do folks think Spring is the best time to sell?  I’m not sure, it could have something to do with the fact that REALTORS® are back from holidays and so are sellers.  Folks are looking to get their families moved before the start of the school year and with an average of 5.76 months of inventory with an average of 65 days on market, it’s the best time for families to get moving.

Don’t forget, REALTOR®  services for home buyers is free, so why would you do it on your own?

The highest compliment you can give me is a referral for your friends and family. Thank you for your referrals!

Last February (2016) we had 2,768 new listings come on the market and a total of 6,681 properties for sale.  This February 2,431new listings appeared for a total of 6,108 homes on market, at

5.76 months of inventory.

Last February (2016) a total of 919 of 6,681 homes sold in the Edmonton area.  This February 1,060 of 6,108 SOLD.  Your odds of selling have gotten better!

Average Days on Market – 65, last year we were at 56 days, compared to last year homes are selling 13.65% more slow.

Odds of Selling –17.35%,  compared to last year, your odds of selling increased by 26.30%, compared to last month 22.47% better

Average Selling Price:

     Condo Apartment: $230,661

Condo Townhouse: $348,078

Single Family Dwelling: $427,726 and the

Average selling price in the City of Edmonton is $359,468. Down 0.11% from last year and 0.75% more than last month.

Home Sales by Price Range: The highest percentage of properties are and have the tendency in Edmonton to sell in the $300,000-$399,999 price range, and this year 32.87% of homes have sold in this price range.

What’s new for our city is where second place is.  With the mortgage changes in October, averages for Edmonton families in loan amounts have dropped, while debts have remained the same, squeezing out both ends of the price ranges.  Last year, more folks were buying in the $400-$499,000 range, but this year it has changed.  Second position goes to the $200,000-$299,999 price range at 23.04%.  Third place is the $400,000-$499,999 and 17.81%.

Luxury Market Positioning: Only 12.89% of Edmonton homes have sold over the $500,000 price bracket.

54 Years average of price increase for the City of Edmonton is 6.73%.

Prices have decreased this year by 3.88%. A small reduction in the average market in Edmonton, in comparison to what is going on in the rest of our province.
*stats as of February 28, 2017.

Want market information about listings in your area or a free market anaylsis for your home?  Sign up here.

To download your full copy of this report – click here.

Why Investing in Homeownership Will Make You a Better Albertan.

Friday, February 24th, 2017

February 24 2017

Homes provide shelter and refuge, but they are also most Albertan homeowners’ single largest investment. Housing represents 47% of total assets for the average Alberta family – much higher than stock market investments and pension plans combined (29%). Why is this important? Homeownership benefits the economy as well as individual homeowners. Let’s look at this in the context of the most recent stats on Alberta’s real estate, reported by the Canadian Real Estate Association.

Investing in housing in Alberta is better than buying stocks

Over the last 18 years, house price appreciation in Alberta has outpaced Toronto stock market returns. Between 1999 and 2016, with average annual residential sales of roughly 57,000, house price growth in Alberta (6.6%) outpaced yearly returns on stocks traded on the Toronto Stock Exchange (6.4%).

Average residential prices up 3.1% in Alberta in January

Total residential sales across the province were up 17.7% year-over-year, totalling 2,679 resale transactions in January 2016. Roughly 3.4 out of every 10 newly listed homes were sold, translating into a sales-to-new listings ratio (SNLR) of 34%. And the average residential sales price rose 3.1%, to $383,040.

Increased home equity = increased net worth

What’s so great about house prices being up? Rising house prices mean homeowners are building equity in their homes. Home equity represents the current market value of the house, minus any remaining mortgage payments. Equity is built over time as the homeowner pays off their mortgage and fluctuates with the market value.

Rising home equity benefits homeowners individually, and the Alberta economy as a whole. By how much? More than $40 billion in 2016.

Calculating Returns to Equity

Using Statistics Canada’s data on Alberta homeowners’ mortgage balances (Surveys of Financial Security), we calculated equity shares by age group. Equity shares multiplied by user costs (average two-bedroom apartment rents used as proxy) provided the income generated (returns to equity) per homeowner, by age class. The annual income generated by homeownership was then derived by multiplying the number of homeowners by age group in Alberta with returns to equity per homeowner.

For those under 35, the income generated by homeownership reached $11,000 a year per homeowner

Over the past five years (2012-2016), the annual income generated by homeownership averaged roughly $57,000 per homeowner (all ages) in Alberta. Returns on equity per homeowner ranged from annual income generation of $11,000 for homeowners under the age of 35 (generally considered as first-time buyers), to roughly $14,000 for those above 65 (annual average).

REALTOR® Tip: First-time buyers build equity in their home as they pay off their mortgage – roughly $11k a year!

Collectively, annual returns on equity (ROE) for all homeowners in Alberta reached roughly 38 billion dollars, or 12% of GDP

Thirty-eight billion dollars a year represents roughly 12% of Alberta’s nominal GDP and 85% of Government of Alberta’s annual revenues. When people build equity in their homes, they borrow against that equity through a home equity loan, or home equity line of credit. An increase in the value of their homes increases the amount of collateral available to households, leading to higher credit. Rising house prices, which imply higher housing equity, may encourage consumers to borrow more, causing a rise in consumer spending. Looking at the data, we know this to be true.

For every $1 rise in housing prices, Albertan homeowners raise their personal spending by 6.7 cents – collectively $5 billion a year

The increase in consumer spending following a rise in in house prices has been referred to as the marginal propensity to consume (MPC) from housing wealth. We found that, for every $1 increase in average residential prices, Albertans raise their personal spending by 6.7 cents, which collectively amounts to roughly $5 billion a year (2012-2016 average).

Five billion dollars a year is 1.5% of provincial GDP, and 11% of government revenues. This is a significant boost to Alberta’s economy. A 3.1% price gain, like the one we just saw in Alberta this January, equals an average increase of $11,420. The associated rise in consumer spending that could come out of that is $868 per homeowner per month, or $10,415 per homeowner per year, or a collective increase of $616 million a year.

 

Regine Durand

Economist

Alberta Real Estate Association

Why should You do business with a Remax® REALTOR®?

Tuesday, January 31st, 2017

RE/MAX® versus the Edmonton Real Estate Industry

RE/MAX® holds the number one position in Edmonton with 41.72% of all sales in Edmonton involving a REMAX® REALTOR®.

Alberta Real Estate Market Reports – January 2017 Edition

Wednesday, January 25th, 2017

Click here for the full monthly report, including additional details on the outlook for Alberta’s housing market in 2017.

I. Alberta MLS® Trends

A total of 2,612 Alberta residential unit sales were recorded through the MLS® Systems of real estate Boards/Associations in December, rising 3.2 per cent from the same month last year. The average MLS® residential price in Alberta rose to $395,694, an increase of 1.6 per cent from December 2015.

Only the Calgary Real Estate Board saw an increase in monthly residential average prices from year-ago levels, while the remaining nine Boards/Associations saw decreases of varying degrees (see chart below for detailed information).

The value of all home sales in the province totalled $1.03 billion in December, rising 4.8 per cent from last year. New listings numbered 3,568 units for the month, a decrease of 21.7 per cent from a year earlier, while active residential listings numbered 20,244 units, up 0.9 per cent from one year ago. There were 7.8 months of inventory at the end of the month, little changed from 7.9 months in December 2015.

II. Alberta Sales Outlook for 2017

Read more of the Alberta sales outlook for 2017 in the full report.

Summary

In Alberta, movements in residential sales over the past 20 years have been driven primarily by changes in house prices and in mortgage payments (income channel). As shown in Table 1, over the 1997-2016 period, house prices have risen two times faster than residential sales in Alberta. The average price growth for that period was 6.55 per cent compared with average sales growth of three per cent (averages of monthly values). Looking at the simultaneous growth in these two, we can estimate the change in sales with regard to changes in house prices. This is done by dividing the year-over-year change in sales by the year-over-year change in prices. The result is shown in column 6 of Table 1 and represents the price-elasticity of demand.

In Alberta, on average this price-elasticity has been positive and hovered around 6.8 over the past 20 years. What that means is, for every one per cent increase in house prices, sales increased by roughly seven per cent. This might look counter-intuitive because classical demand analysis expects a negative relation between a product price and demand for the product. But, as an investment good, higher home prices mean higher returns on housing investment. Rising house prices may prompt more home sales thus leading to a positive co-movement between sales and prices. Indeed, houses are not only consumption goods, but also assets. Homebuyers buy houses both as consumers and investors. Case and Shiller (1998) for instance, based on a survey, reports that 44 to 64 per cent of homebuyers considered the purchase of a house as an investment.  In Chart 1, the correlation between sales growth (green line) and price growth (red line) is almost perfect: the two mirror each other, displaying a positive co-movement.

Outlook for 2017

We expect residential sales in Alberta to decline by roughly 2.38 per cent in 2017: to 50,927 transactions in 2017 from 52,169 transactions in 2016. This is based on two factors: the price depreciation expected for 2017, and the price-elasticity of sales over the last 20 years. Currently, we expect to see a 0.35 per cent price decline in 2017 (read more about this in the full report). Given the strong response of sales following changes in prices, we added to the picture the weight of a price-elasticity of 6.8 (1997-2016 average).  If we were to consider most recent price-elasticities of sales, like those seen over the last five years (value for the 2012-2016 period in table 1), we could easily be looking at a 6.8 per cent reduction in residential sales in 2017 (table 1). What that means is that only 48,621 existing homes would change hands in Alberta in 2017, compared with 52,169 in 2016.

III. Economic Drivers of Alberta House Prices
IV. The Price-Rent Ratio, Over-Under Valuation and Price Outlook for 2017

Read more in the full report

V. Board/Association Statistics

VI. Alberta Charts

Residential Sales – Current levels are comparable to the years 2010-2012, but remain down from the historical highs in 2013 and 2014.

Residential Average Price – The current residential price for Alberta remains in line with those since 2013, while increasing slightly in December 2016 from one year ago.

Month-over-Month Average Price – Month-to-month average prices have remained fairly consistent in 2016, with the exception of January, typically the lowest volume month with the lowest sale price.

Residential Dollar Volume – Similar to sales numbers, the total dollar volume of sales in Alberta is comparable to the 2010-2012 timeframe, well below the historical highs in 2013 and 2014.

Months of Inventory – Months of inventory were relatively unchanged in December when compared to the same month one year ago. The annual trend follows historical value, with months of inventory rising in the traditionally slower fall and winter months, before decreasing again in the busier spring and summer timeframe.

Note: The data in the charts is national data and may not perfectly reflect the data reported by a Board/Association. The data includes all activity recorded for a board’s area, e.g. Calgary includes all sales recorded by CREB®, not just the Calgary metropolitan area. For more specific information, please contact your local board/association. Click here for a guideline of Board/Association boundaries

The Alberta Real Estate Association (AREA) compiles provincial MLS® sales data for dissemination to REALTORS® and other interested groups. The data that is provided represents statistics provided to AREA by way of the Canadian Real Estate Association (CREA). For more detailed statistical information for Boards/Associations or for individual areas, contact your local real estate Board/Association or your local REALTOR®.

The Alberta Real Estate Association (AREA) represents more than 10,000 REALTORS® and 10 real estate Boards/Associations province-wide. AREA’s vision is to provide world-class leadership that positively shapes the Alberta real estate profession, enhances member professionalism, and reinforces the critical value REALTORS® deliver to both buyers and sellers.

For more information, please contact AREA Communications at communications@areahub.ca or by phone at 1.800.661.0231.

Alberta Real Estate Association
Suite 300, 4954 Richard Road SW
Calgary, AB T3E 6L1
communications@areahub.ca
www.areahub.ca

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Now that the elections over, let’s talk about that crazy mortgage change!

Thursday, November 10th, 2016

Hi Folks,

This isn’t the greatest news you’ve heard but it’s worth taking a look at.  Recently the Minister of Finance, Bill Morneau, announced four major changes to Canadas’ housing rules.  These changes mainly address concerns on foreign buyers and the high debt of middle class families over housing affordability.  In general, these new mortgage changes are going to decrease the buying power of Canadians by about 20% on every price range. Check out the chart below to really see the differences we are talking about here.

What this means, is that before you go to sell your house, or buy one for the first time, please understand that your champagne wishes may have to recede to your beer budget.  For example at the average annual income of $80,000, without debts and with 5% down payment – your buying power has decreased by almost $100,000.  $91,690 to be exact.  That’s a huge difference and it is directly within the average price range of Edmontonians and their families – sure to affect housing prices in the future.

Worse, is the average person needed about $220,000 to get their family in a townhouse condo (2 storey style) in our market.  This price range has suffered about a $50,000 drop in loan amounts which means buying an entry level townhouse condo is going to be even more hard.

There is a very fine line when you are deciding to buy a property for the first time.  Often a buyer just doesn’t have the down payment to complete the purchase.  Rising house prices make down payments more difficult to obtain.  Mortgage changes make loan applications more difficult to be approved.  Mortgage insurance groups reduce the availability of loans by capping qualification ranges.  Everything is always changing and a person is always subject to those changes.  Most of the time however, it gets more and more difficult to get that approved loan.  So buy when you can, get into home ownership while you are approved and look forward to the gains you can make over the long period.  Real Estate is not instant, nor is it easy to off-load in an emergency.

Shadow banking is most likely set to increase with the changes to regular lending.  Borrowers unable to secure tradition financing sources, will look to alternate sources, many of which are unregulated and outside of federal banking rules.  Uninsured loans at interest rates typically much higher than those provided by banks.

Change #1 – Effective October 17, first time home-buyers with mortgages inured by the CMHC will now undergo a more severe stress test to ensure buyers can still pay for their loan even if the interest rates go up.  This means consumers have less purchasing power.

Change #2 – Starting November 30, new restrictions will be imposed by the government on providing insurance for low-ratio mortgages.  The new criteria will include amortization period of 25 years or less, purchase price of less than $1 Million, the buyers credit score is 600 and the property should be owner-occupied.  This measure is targeted for Vancouver and Toronto markets.

Change #3 – New reporting rules for the primary residence capital gains exemption. The sale of the primary residence must be reported to Canada Revenue Agency.  This measure is to prevent foreign buyers from flipping houses and falsely claiming the tax exemption.

Change #4- The government is launching a public consultation paper on proposals for lenders, such as banks, to take additional risks in the event the insured mortgages go into default, which could mean higher mortgage rates for buyers.

All in all, before your renewal, before moving or before buying it would be advantageous to talk to a trusted mortgage professional about these recent changes and how you will be affected in the future.   If you need to speak with a trusted professional about how you are affected, please do not hesitate to contact me, I would be pleased to let you know who I am recommending these days.

Talk to a professional, contact me today.

The bottom line shows a seasonal down shift of the market.

Wednesday, November 9th, 2016

Edmonton Real Estate Market Reports for November 2016

It’s amazing how the year is almost ending and the holiday season is just a month away.  These days we are kept busy with our winter and early holiday preparation. The real estate market is also experiencing a lot of movement and changes with the governments announcement of the new motgage rules on October 3rd.  We recommend you read our next blog on these recent changes in order to better understand where you stand in the market today.

We remember on November 11, 2016.

The highest compliment you can give me is to recommend me to your friends and family who might be needing some real estate help. Thank you for your referrals!

EDMONTON MARKET REPORT for November

*stats as of October 31, 2016

Last October (2015) we had 2,272 new listings come on the market and a total of 6,641 properties for sale.  This October 2,147 new listings appeared for a total of 7,215 homes on market. This is continuing last years trend with an abundance of properties for sale, and 5.70 months of inventory.

Last October (2015) a total of 1,284 homes sold in the Edmonton area.  This October 1,265 SOLD.  About the same number of sales.

Average Days on Market – 61, last year we were at 56 days, compared to last year homes are selling 8.20% more slow

Odds of Selling -17.53%,  1,265 out of 7,215 listed, down 9.12% from last year, down 5.32% from last month

Average Selling Price:

     Condo Apartment: $245,698

     Condo Townhouse: $332,565

     Single Family Dwelling: $432,755 and the

Average selling price in the City of Edmonton is $364,004.

Down 6.4% from last year and 2.48% less than last month.

Home Sales by Price Range: The highest percentage of properties are and have the tendency in Edmonton to sell in the $300,000-$399,999 price range, and this year 34.37% of homes have sold in this price range. Second position goes to the $400,000-$499,999 price range at 20.40%.  Third place is the $200,000-$299,999 and 20.39%. These haven’t changed very much from month to month as this works in with Edmonton average earnings per family.  It may soon drop a bit with the recent changes to mortgage rules.

54 Years average of price increase for the City of Edmonton is 6.86%.

Prices have gone up for this year by 0.32%. A small reduction in the high end luxury market in Edmonton, in comparison to what is going on in the rest of our province.

Want market information about listings in your area or a free market anaylsis for your home?  Sign up here.

To download your full copy of this report – click here.

Edmonton Real Estate Market Reports November 2016

Edmonton Real Estate Market Reports for October 2016

Thursday, October 27th, 2016

Edmonton Real Estate Market Reports for October 2016

Autumn is upon us which means that winter is soon coming.  Let’s enjoy these last few weeks of harvest and pumpkins, hot apple cider and cinnamon.  As you prepare for Halloween festivites, don’t forget to start winter-proofing your home.

Don’t forget to mention us to anyone who needs real estate help.  We are here and we love your referrals.

EDMONTON MARKET REPORT for October

*stats as of September 30, 2016

Last September (2015) we had 2,747 new listings come on the market and a total of 7,108 properties for sale.  This September 2,739 new listings appeared for a total of 7,857 homes on market. This is continuing last years trend with an abundance of properties for sale, and folks looking to move around at 5.87 months of inventory.

Last September (2015) a total of 1,543 homes sold in the Edmonton area.  This September 1,339 SOLD.  About the same number of sales.

Average Days on Market – 57, last year we were at 54 days, a decrease of 5.26%

Odds of Selling – 1,339 out of 7,857 listed, down 21.28% from last year, down 11.92% from last month

Average Selling Price:

     Condo Apartment: $251,365

     Condo Townhouse: $360,338

     Single Family Dwelling: $430,461and the

Average selling price in the City of Edmonton is $373,926, up 1.53% from last year and up 1.20% from last month.

Home Sales by Price Range: The highest percentage of properties are and have the tendency in Edmonton to sell in the $300,000-$399,999 price range, and this year 34.27% of homes have sold in this price range. Second position goes to the $400,000-$499,999 price range at 20.59%.  Third place is the $200,000-$299,999 and 20.36%. These haven’t changed very much from month to month as this works in with Edmonton average earnings per family.

53 Years average of price increase for the City of Edmonton is 6.86%.

Prices have gone up for this year by 0.59%. A small reduction in the high end luxury market in Edmonton, in comparison to what is going on in the rest of our province.

Want market information about listings in your area or a free market anaylsis for your home?  Sign up here.

To download your full copy of this report – click here.

Changes to the rules, leaves sellers with more liability.

Monday, August 29th, 2016

In this industry the changes come quick and sweep across the market with force.  Recently the Real Estate Council of Alberta made changes to a simple aspect of selling your home, and with that change came increased responsibility and liability for both Sellers and Real Estate Professionals in Alberta.  For a very long time now, the province has operated on a standard measurement system (BOMA) for commercial and industrial measurement; while ignoring the needs for a standard measurement system with regards to Residential measurement of homes for sale.

The size of your home matters much less to your sale than what you think.  In fact, sellers are not required to put the size of their home on any advertising at all.  However, if you are listing your home on MLS®, you will need to enter a size on the MLS® listing for it to be complete and active on-line, within the Edmonton Real Estate Board.  If you’ve ever printed off an MLS® report, you will most likely have noted the small print wording; “the information found herein is deemed reliable but does not form a part of any future contract.” The question being, ‘what is reliable?’

REALTORS® are a part of a professional organization and we are monitored by ethical boards and committees of our peers.  We are deemed to be reliable and our work and advertising should be marketed truthfully and responsibly. Should be…. Yet, there are so many lawsuits over square footage.  Why is that?  Simple mistakes, inaccurate representation and even worse, plain old lying are all parts of an industry that has been paying out for years over inaccurate misrepresentation.  Not only have REALTORS® and brokerages been taken to task, now the public has.

What I mean to say is that, due diligence and seller/buyer responsibility is always increasing as time moves forwards.  What used to be a one page contract is now eight.  Buyers and Sellers now both have to sign a contract to work with a REALTOR® or their brokerage.  Information and privacy laws are changing all the time and with those changes less information is available to the public about items that used to be common knowledge, like square footage.

Edmonton is an example of a community that used to list the sizes of all its’ homes as a part of its’ taxation information.  Fireplace, air conditioners and basement permits were listed on a property summary, but now, there is none of that.  In fact, any member of the public could look up the size of a house and quickly deem if the size of house they thought they bought was correct.  Not anymore.  Moving forwards, you’ll need to measure the house yourself as it won’t be able to be verified from any third party source, and certainly not easily.

Home owners would buy from a builder, believing they got one size and then years later re-list with their REALTOR® only to be told they had to advertise their home much smaller than what they thought it was, because builders were able to measure homes in a different way than how resale homes are marketed.  Well, that’s not fair is it?

Is the new measurement standard tricky? Let me give you this as an example:  If you are in a semi-bungalow with loft like area upstairs, you would measure the upstairs area if the room at some point has a 7 foot clearance, but only that part of the room that measures above 5 feet high. (that will drastically change a lot of homes square footage for years before 1960.)  YUP… that can be tricky for professionals to ‘remember’.

Or how about this example..If you have a bay window in the room that goes all the way to the floor it is to be included as a part of the square footage, but if that bay window has any toe-kick at all, it is not to be included in the square footage.  Sure, folks will remember that one too.

In fact there’s a 36 page guide just to be certain of what you should measure.

Is it something you should leave up to your REALTOR®? Can you still be sued over square footage? All good questions, and yes, as a seller, anything you let your REALTOR® advertise; you are responsible for.  Ignorance for the rules will not help you in court, you’ll still be deemed as a part of the problem.  In the end you, as the Seller are entirely responsible for all the aspects of your sale, including what your REALTOR® does, so trust with and in your REALTOR® IS IMPERATIVE.

I won’t be measuring any listings from herein, I will call the professionals to do so. Watching the changes as they take effect and noting what some of my fellow colleagues are doing, I see all too well that this is another area in which corners will be cut and most sellers won’t be told the implications of changing rules in our industry and the better REALTORS® who wish for accurate and professional representation will keep rising to the top.  Cutting corners on home measurment is what got us here in the first place.

Alongside title insurance, the real property report, your lawyer and your REALTOR®, sellers wishing to avoid lawsuits and protect themselves as much a possible in the biggest transaction of their lives, should hire a professional to measure their homes according to the Residential Measurement Standard, which is now the law in Alberta as of July 2016.

Here’s a look at the chief principals:

1. Real estate professionals must use the RMS.

2. Identify if the measurement system is metric or imperial, and apply it consistently.

3. For detached properties, measure the property using the exterior wall at the foundation.

4. For properties with common walls, such as half-duplexes, townhouses, and apartments, measure the interior perimeter walls (paint-to-paint) at floor level. An additional area representation may be made assuming exterior measurements.

5. Include floor levels that are entirely above grade and exclude floor levels if any portion is below grade. Below grade levels may be measured, but the area must not be included in the RMS area.

6. Include all additions to the main structure and conversions of above grade areas within the structure if they are weatherproof and suitable for year-round use.

7. The property must have a minimum floor-to-ceiling height of 2.13 metres (7 feet). If the ceiling is sloped, the area with a floor-to-ceiling height of at least 1.52 metres (5 feet) is included in the RMS area, provided there is a ceiling height of 2.13 metres (7 feet) somewhere in the room.

8. Include extensions from the main structure that have a minimum floor-to-ceiling height of 1.5 metres (5 feet), such as cantilevers, bay and bow windows, and dormers.

9. Exclude open areas that have no floor, such as vaulted areas.

Due diligence with client representation
Seller and buyer representatives must explain to their clients:

  • the relationship between property size and value
  • all the factors that influence buyers when they decide to purchase a property
  • the different measurements such as RMS area, living space, above grade, below grade, registered condominium plan size, RPR measurement, etc.
  • if required, the different measurement approaches for detached and attached properties

Real estate is a service based business and over the years, the services of Real Estate Professionals has changed.  Consumers have been advocating for lower rates in commissions and certainly the offerings of discount brokerages has changes our contract wording as well as perception of the industry.  Did your comfree representative talk to you about the RMS, your liabilities and their responsibilites?  Probably not.  In fact, they probably also didn’t explain to you that all buyers are under contract now and if you wish to sell you’re probably going to have to pay the Buyers agents commission anyways.  But CAVEAT EMPTOR folks, you get what you pay for.

I see it all the time in this industry, cutting corners, REALTORS® working a lot of angles to get the business, but what happens AFTER you list. HA!  If only i could tell you all the things I’ve witnessed. #thingsThatMakeYouGoHmmm …lol

Do yourself a favor, hire a professional REALTOR® and get your house professionally measured.  Contact me to save thousands on your next home sale.

Sincerely,

Jeanine