Homes Sold on Toronto MLS®

Everyone loves to get a deal, whether it's the thrill of the shopping; the negotiation or the money that stays in your pocket. With competition for detached homes and townhouses in Toronto, many online realtors have been quick to offer their customers deals and rebates along with their normal service offerings.

What many don't know is that not all real estate are created equal – some agents offer bigger discounts or apparently better products than others. Some of the most popular sites offer up to 100% off on listings and rebates on what you buy.

Additionally, there are different types of sites that promise—anything from a Rebates like Rogers, with FASTER from Zoocasa or implied SAVINGS from COMFREE that compare how much you can save from a 6% sales commission. Deals come in all varieties and facets. Savvy deal seekers are discovering these sites that are heavily promoted tend not to deliver what is promised.

Can you get listings FASTER? Every realtor draws information from the same database. New listings are available to me instantly and I can send you listings immediately, directly to your inbox with a Buyers Profile and BRA at http://BuyinginToronto.ca  Are there more listings available?  Claims of We have *ALL* the listings, yes if you you want new home construction listed as homes available for sale (that are not yet built) I have that too, are effectively puffery or embellishment.

Listings that show available on REALTOR.ca may already have a sale pending and we may not even be able to go see it, as mere listingsdo not report as diligenty.

Another site will give you sold data by street or neighbourhood. Homes Sold on Toronto MLS® Yes, that information is available by postal code anonymously at http://bit.ly/HoodReports  or you can send an email with the address and I will respond promptly, without stalking you through this tackk.

Do you work for free? Are you good at what you do? Then, you should get paid. The DISCOUNT BROKERS concept offering $1 for selling a house is silliness. Attending at your home to help you decide what you what, give you guidance, answer your questions provide Computers, licensing, forms, time, effort and attending at properties with you PLUS being liable makes this concept great on paper but a non starter in reality.  When you are out shopping with an agent you want the insights of what has sold and questions answered that are unique to your situation.  I make house calls.

Why the Best Deals are Unknown

Many agents are now aware of "POCKET LISTINGS" Most consumers expect that the Realtor that advertises the most must have the best deals. This is a common misconception. Not all great agents have maintained ad budgets as response rates have dropped off dramatically.  Email and Direct mail is suffering a similar fate. A better reality would be to promote your new listing to each agent who has listed or sold recently in that pocket. 
  
Even if these smaller real estate brokerages had the ability to advertise as much, they would choose not to do so. You see, most houses are selling in multiple offers and with that limited quantity we are simply running out of inventory. No agent wants to advertise a deal that was sold a week ago while the magazine is on the shelf for another two weeks. I can't make good for all customers right?

That's why the best agents intentionally stay out of the spotlight and developed a word-of-mouth business. WOM. The result—those deal seekers who are in the know on which agents provide superior service and knowledge, will simply save you the most money and get the best deals. They recommend their friends peers and family members.  You can find them on Google or with Youtube Video's.

How Do I Find the Best Deal Sites?

Continue to keep your eyes open for new FOR SALE signs in your desired neighbourhood. Check your email daily for new listings and price updates. We can start a door knocking campaign to find a home for you. 

Are you ready? 

No matter how many books you read, no matter how many pamphlets, unless you have genuine experience in the process of buying and selling a house or condominium you are not prepared to navigate the sales documentation and lending process.

Why do you expect me to present your offer?

Why am I presenting your offer to my Sellers?

They expected an offer presentation where we would negotiate. You sent me an email or faxed the offer.

I don't know your clients capacity, intent, top price, ability or wherewithal to conclude the transaction. If you told your clients the market is up/ down 10% They want a deal, a discount and they want to negotiate.

Let's presume the following;

• There are two offers
• Both offers are relatively equal with small differences
• One agent is in attendance.
• His Buyers are in a Horton's nearby and anxious.
• The OTHER agent sent his offer by fax.

The Seller's of the home have a strong history and attachment to the property. They have demonstrated pride of ownership, duty of care and dedication to the maintenance and upkeep. It was the curb appeal that attracted your buyers. This is the second time they have entered the real estate market in 26 years. 

The agent with the Buyers outside has an opportunity to explain their financial capacity to  close on the purchase, how much downpayment, where they work, what types of financing they are taking.  There is a deposit cheque with the offer.  He goes on to create a bond between buyer and seller by describing the family that will replace theirs on the street. The new kids that will fix the tree house and update the swing set.

The agent with the faxed / emailed offer has what?

Yes, we have the capability to send offers by email.  Sign on your ipad. Deliver Acknowledged copies of contracts electronically, instantly.

Bring 4 copies of your offer.

Real Estate is about pricing, presentation, promotion and negotiation of all my offers in person.  We attend with you at the lawyers, together, so that you understand everything is as was explained to you.  Thats what I do. 

Call me.

Avoid Buyer Representation Mistakes

Buyer Representation Agreements: Make sure buyers understand what they’re signing
The most common complaint to the Real Estate Council of Ontario (RECO) is from consumers who say they didn’t understand what they were signing when they entered into a Buyer Representation Agreement.

Hundreds of telephone inquiries are fielded by RECO on this topic each year, according to Registrar Allan Johnston, who adds that consumers and registrants need more education and awareness around this particular document.

“This is very prevalent and is likely the number one issue among RECO officers who deal with complaints,” says Allan Johnston. Disputes arise on points such as the services to be provided, the length or term of the agreement, options available to the consumer, whether early termination of the agreement is available and under what terms, and how complaints will be resolved.

“The more educated that both consumers and registrants are about what they’re signing and what it means, the better the chances are of reducing complaints,” he adds. “It’s much better to prevent misunderstandings at the outset than to deal with the consequences after the fact.”

Most registrants are well aware of this and make every effort to ensure that their clients are protected and understand the document in front of them, says Allan Johnston. “However, real estate is a competitive business and people can be in a hurry these days, so some may not take the time they should to explain things.”

The Toronto Real Estate Board (TREB) ran an advertising campaign to raise awareness and promote the value of Buyer Representation Agreements and the services that REALTORS® bring to the public, says Bill Johnston (no relation), President of TREB. Visit www.BRAfirst.ca to check it out.

“It’s important for REALTORS® to sit down with prospective buyers from the very beginning and have a full, thorough discussion about their wants, needs and desires, and at that time you should also lay out clearly what services you can provide,” he says. “It’s important because you’ll learn whether you want to work with them and vice-versa. At the end of that comprehensive discussion, the Buyer Representation Agreement should be presented and explained thoroughly in order to create an exclusive, mutually beneficial relationship.”

Complaints from a consumer who claims she didn’t know what she was signing can sully the reputation of the real estate profession as a whole, Bill Johnston notes. “It tars us all with the same brush, and if a thousand real estate transactions occur, unfortunately the public will focus on the one that wasn’t done properly rather than the 999 that went well.”

The duration of an agreement can be an issue if the buyers are unaware of what they are signing or if the agreement is introduced at an inappropriate moment, Bill Johnston notes. The document should not be slipped into a stack of paperwork during an offer on a particular property, he says.

“That is unscrupulous behaviour and it cheats the consumer,” he says. “When buyers are putting in an offer on the house of their dreams, they’re so excited that they have stars in their eyes and they don’t care about paperwork, so they may not realize the implications of that document. Then if they don’t get the house and the relationship sours, they may discover that they’re committed to something they didn’t realize. They say they feel like they went on a blind date and ended up in a marriage that they couldn’t get out of for six months.”

Shorter terms on an initial Buyer Representation Agreement are a way for both parties to test the waters, he adds. This agreement can be like a “trial marriage,” says Bill Johnston, and it can be structured initially for 10 days or two weeks rather than three months.

From the REALTORS’® perspective, a Buyer Representation Agreement is beneficial because it demonstrates a commitment on both sides, even if it’s for a short time, he adds. The agreement ensures that the broker or salesperson will put the buyers’ best interests at heart, while committing the buyer to the REALTOR® for a given period. “Without the agreement, the buyers are like second-class citizens who lack the commitment from me that I’m working for their best interest, and meanwhile I’m concerned that despite the hours and effort I’m putting in for them, the buyers may drop me at any time and go to work with someone else. Once both parties have signed, I’m committed to them and they’re committed to me, even if it’s just for a few weeks.

“Many REALTORS® say that prospective buyers won’t be willing to sign a contract, but they will if they are properly approached,” says Bill Johnston, who is also a lawyer with a specialty in agency law. “Explain it thoroughly and get it all down in writing from the outset.”

Verbal arrangements are sometimes the basis by which buyers and real estate professionals operate, but they are non-binding on the buyer and do not benefit either party, he says. Verbal agreements aren’t worth the paper they’re not printed on, he laughs. Without a signed agreement, misunderstandings can develop, he says. The Buyer Representation Agreement outlines in detail the length of the exclusive relationship, the amount and nature of the commission (i.e. flat fee or percentage), and the geographical area to be covered.

Once an agreement is signed, the REALTOR® is fully committed to putting the clients’ best interests first, and the contractual relationship outlines in detail the rights and duties of both parties. “At that point I’m bound by laws and a code of ethics to look out for your best interests as a buyer,” says Bill Johnston. “One of the key obligations to the buyer is to stay within the confines of the REALTOR’S® expertise. That means if a buyer wants to look in a market area unfamiliar to me as a REALTO®, then I should refer the buyer to an expert in that area.”

Guidelines for REALTORS® on Buyer Representation Agreements
To prevent misunderstandings, use the following guidelines as a minimum to ensure that you are protected and that consumers are fully informed on their Buyer Representation Agreement before they sign.

•Inform them of the type of services that CAN be provided and, once agreed upon, the particular services that WILL be provided under the agreement
•Ensure that the buyer is fully aware of the geographic area to which the agreement applies as well as the type of property and price range
•Make the buyer aware of the term of the agreement and what process is in place to resolve disputes
•Encourage the consumer to ask questions related to the agreement’s content and that the answers provided are truthful and fair
•Be sure that the buyers fully understand their obligations related to any commission that they may be required to pay under the agreement
•Take time to ensure that the consumer has carefully read the agreement, understood its terms and acknowledged the agreement.

This is a worthwhile update from OREA.

The highest complaint is indeed that the Purchasers didn't understand what they were signing and thus did not have the ability to provide INFORMED CONSENT

The real estate agent that has you under contract is entitled to their commission for counselling, educating and helping you select a property; having said that, merely signing you to a Buyers Representation Agreement without fulfilling their portion of duties promised and contracted for under that agreement does not make it enforceable.

An agent may threaten you with legal action but they must prove in their claim that;

• you had an understanding sufficient to make an informed consent,
• Explained the form and obligations clearly
• Prove that they deserve the commission for the work they provided.

Maybe Stan Gelman could give us some Case law;

Don't Sign a Buyers Agency Agreement

I don't dispense medical advice. I do not give legal opinions. I don't give tax advice. I help you look at the housing selections that will best suit your family and your needs for tomorrow not just today. You don't go to court to fight a traffic ticket.

Imagine my surprise when I read this dribble. The balance of the article is materially correct. Do you have to sign? No, But I can show you why you want to. And If you want out. I am pleased to offer a Satisfaction Guarantee.

Roseman: Know your rights as a real estate buyer

April 17, 2011 22:04:00

Ellen Roseman

Personal Finance Columnist

There’s been a revolution in real estate in recent years. Unfortunately, many customers are still in the dark about it.
I’ve written two previous Moneyville columns about working exclusively with a real estate agent to buy property. One related to cottage-huntersand the other looked more generally at buyer agreements.
Because of all the feedback, I’m devoting this week’s column to answering frequently asked questions about a buyer’s relationship with a realtor.
Q: I was shocked to hear I had to sign a three-month exclusive contract with a real estate agent in order to submit an offer or even to look at property. This was supposed to cover the time and expenses in finding the right home. Do I have to sign?
A: No, you don’t have to sign an exclusive contract with a real estate agent when buying a home. It’s your choice.
The law requires buyers to sign a document, called Working with a Realtor, at the earliest practical opportunity. It’s better to have a conversation about it when you start looking at homes together, rather than in the hectic time before you submit an offer.
Having an exclusive contract, known as a buyer representation agreement (BRA), is just one of the ways you can work with a realtor. If you prefer not to sign, look for someone who won’t insist on exclusivity.
You can negotiate the contract terms, such as signing for a shorter period than three months (even a month or 10 days). You can limit the contract to a specific property, street or neighbourhood, if the agent agrees.
Q: What if I don’t sign? Will the agent still represent my interests?
A: If you sign a BRA, you’re a “client.” If you don’t, you’re a “customer.” The words seem interchangeable, but not in real estate.
Under a buyer representation agreement, the realtor has a duty to protect you (known as a fiduciary duty under the law). This means your interests come ahead of the seller’s interests.
Once you submit an offer on a property, anything you tell your realtor about your final price can’t be shared with the listing agent.
If you don’t sign a BRA, you’ll sign a buyer customer service agreement acknowledging that the brokerage “will not be representing the interests of the buyer in a transaction.”
There’s a chance your real estate agent may give confidential information to the seller’s agent — or may give you incomplete information on the property and the commission payable.
“You can decide to be a customer, rather than a client, but should be aware that the obligations of the brokerage will differ,” says the Real Estate Council of Ontario, the arm’s length body that regulates the industry.
Q: What if I sign a BRA and want to leave because I’m getting poor service from my real estate agent?
A: You’re better off waiting until the BRA expires. Otherwise, you could end up in a legal fight.
If you buy a home while still under contract, your original agent is entitled to the commission paid by the seller. You could get sued by the second agent.
The BRA says the agent will represent the buyer in a real estate transaction “from any source whatsoever,” says Ken Wilder, a former agent who now coaches others on buyer representation.
But the BRA can be altered, he emphasizes — unlike the MLS agreement that property sellers must sign.
You can add provisions to the contract to exclude certain scenarios, such as a private sale or an auction.
Q: What if I want to cancel the contract before it expires? Can I do that?
A: The contract is with the broker. So, you can call the broker and say the agent has not lived up to your expectations. Therefore, you want to cancel.
The broker may suggest you work with another agent at the firm until the contract ends. That’s an option to consider.
But if you don’t want to stick around, you can play a bit of hardball.
Tell the broker that your agent didn’t explain buyer representation properly to you and didn’t perform the promised duties, to your detriment. Now you want to take the issue up with RECO.
“This will generally soften their position. Most brokers are aware that the BRA is rarely explained properly and don’t want the regulator looking over their shoulder,” Wilder says.
Ellen Roseman writes about personal finance and consumer issues. You can reach her at eroseman@thestar.ca.

Yes, Correct

You have the right not to sign a BRA. Why does it need to be for 3 months? Not really 30 days is fine. One day is just as good, each time we go out. I have the right to show my client's houses. I am not in the house showing facilitation business. I have the choice to show my clients houses first, those under Buyers Agency, then to you as a Buying Prospect. If the Listing is mine, then there is a past and current relationship with that Seller that predates you're ever arriving on the scene. Why would you presume that I owe you anything?



DO you think that $100 per house per showing is a better plan?  

Go to three dentists for the same job, Have a mechanic start the job and another finish it. Why not have your taxes done by two different firms.

This article proves to me that "Just because you read it online" does not make you an expert.

What do you think?

Buyer Representation Agreement Toronto West Homes

The Toronto Real Estate Board has created a number of topic video that are professionally crafted to inform and educate the Home Buying public in the GTA.

This video explains the concepts of Buyers agency and How the Buyers Registry works for Selling Agents to find what you are looking for!

Do you need a Buyers Agent - Using a Realtor ®

We're talking Canada (or at least Ontario) every offer has to be accompanied by a completed Confirmation of Co-operation and Representation form (OREA form #220). This has to be signed by both agents, as well as the Seller and Buyer, and places on record who's looking after who and how the Buyer's Agent will get paid (usually by a share of commission as stipulated in the MLS listing), prior to the presentation of any offers.

As a Buyer Agent, you do need to realize that my primary responsibility is to take care of my (buyer) client's best interests.

This means two essential things.

On the one hand, I shouldn't focus on selling the property for as close to the asking price as I can. Rather I should make sure that the offer price properly reflects the market value, particularly by setting it against an appropriate Comparative Market Analysis.

On the other hand, I should help my buyer client to determine that the property represents the best value for their money. This means that we need to demonstrate that each one of the comparables isn't going to be a better buy.

If you will, my job is to get the Buyer "the most house for the money" as opposed to enabling the Seller to get "the most money for the house." The difference is a critical one and I have a legal duty and obligation to apply it in your dealings with my buyer clients.

There is a difference when choosing a realtor with experience. If you are looking for a property in Toronto west, Etobicoke to Mississauga ....

Let's get together for a coffee and see what we can do for you.

david@davidpylyp.com or call 647 218 2414

What is Buyer Representation?

You are a beautiful row attached townhouse with a stone front, vertical concrete steps and pillars to adore your exterior and support a second storey portico. You have impressive hardwood floors; hardwood staircase with wrought iron pickets and solid oak hand rails. You have a finished upper level as a master bedroom retreat complete with Juliette balcony replete with railing to seek the morning rays of sunshine that adorn the Toronto Skyline.

You are two years old and facing a potential building site for additional townhouses, that currently is a demolished building site strewn with construction rubble and fenced to avoid additional dumping. The potential upside is enormous; they downside risk equally colossal.

The owner's purchased this wonderful freehold townhouse and adorned it with ceramics, upgraded lighting, slate and backlit lime stone back splash to enhance their lifestyle and entertaining, To impress their guests and visitors.

Well,

I did not decide to sell, You decided to sell and place yourself on the open market.

It is not my fault that the market does not appreciate your upgrade selections and enhancements to the same dollar for dollar investment that you paid. It is not a loss on a property when the March sale (Spring Values are in anticipation of Values where Fall [November] Values are historic) prices are not achieved in the fall as the market is slightly softer seasonally. [factually about 1.5 – 2% deviation]

You could have waited and hoped that prices would rise in the spring of 2011.

My job is to represent my Purchaser. My function is to inform educate and obtain the best terms and pricing in favour of my client. My client is under a Buyers Agency. I am sorry that you were angry at my tactics. I am sorry that you felt you were taken advantage of….

But to say you lost money…..

Let’s be clear. Having a Happy Real estate transaction is great! Having a buyer Score on a property is the best! That is called Buyer Representation. We looked at all the available properties and made a selection based on days outstanding, [days on market] variance to initial asking price, number of price reductions, examined last sold data, trended values to 2007 with annual appreciation and calculated deviation from last sale based on market timing. I think my client is pleased.

Next, my client will be placing their place for sale. Now, I am here to defend their value and use my negotiating skill and the same clear imperical data to obtain the most for them. Informed Clients are empowered to act decisively with confidence not emotionally.

Realtor reveals How to Beat a FSBO everytime!

Now you can beat a for sale by owner everytime.

An experienced negotiator will track down the meaningful and important details of a real estate transaction. You need to ask all the Big "D" questions. Are they selling because of death, divorce, debt or some type of disaster.

You need to ask as many WHO WHAT WHEN WHERE WHY HOW questions as possible without revealing your own position. These questions should include;

• WHY is the vendor selling?
• HAVE they bought another property?
• WHAT possession is most preferable?
• HOW long have they owned the property?
• HAVE they had any other offers?
• ARE the vendors just trying the market?
• HOW long has the property been on the market?
• The more you know, the higher the likelihood of knowing which cards to play.

Now, Let's really make them dance.

In a private sale negotiation, you will have flushed out all of the important information about their negotiating position PRIOR to your committing to anything in writing. This is a very large advantage for you. Now compare prices to make sure you are getting a deal and then document your position. If they agree to your offer; you know exactly what their best price is.

With Buyers Agency it is my obligation to find every advantage that I can for you.

No one cares what I did last year, you care about what I can do for you now.

Realtor vs Realtor is a TV show

"Realtor vs Realtor is the ultimate real estate challenge show, where two top notch real estate agents face-off to find desperate home buyers the house of their dreams. Each episode features two successful realtors. They may have diametrically different styles but both real estate agents share one thing in common – they’re both intensely competitive. Realtor vs Realtor follows them as they go head to head to sell houses and earn the commission that comes with it. Throughout the process we get the inside scoop on the dog eat dog business of real estate. Our agents are the shamelessly confident, warts-and-all types, who are not afraid to say it like it is. And this character-driven series uniquely shows the real estate process from their point-of-view.

At the end of the episode, it all comes down to one thing… Who will be first to close a deal for the client? Which of our realtors will bag them the home of their dreams?"

Great! THEY made a TV show for entertainment purposes. Does it Inform? Does it Educate?

Professional Realtors working with Buyers, work under a contract that is called Buyers Agency. If you are out with an agent, I hope that they are ethical enough to have a) broached this topic with you b) informed you and presented documentation c) you signed a Buyers Agency for a specified period. Lets Talk about the ACTUAL Home buying experience.

The Canadian Real Estate Association (CREA) responded this way

" this show is intended to appeal to the basest of viewer instincts by glorifying disreputable behavior on the part of real estate agents.

The use of the REALTOR® trademark in the show’s title is, in CREA’s view, an infringement of CREA’s intellectual property rights. However, what is even more outrageous is the fact that HGTV would associate the REALTOR® trademark with conduct that violates the spirit and likely the letter of the REALTOR® Code.

Hat tip to @Carol_Ireland for Bringing this to my attention.

In real life; Here is a summary of the actual differences of being under contract or not.

Buyer Client

Your comments are always invited, Add your remarks about Realtor experiences. Is life really like a TV show, all in one hour, with commercials?

If you are shopping this year or in the spring I need to hear from you now. Click here to join the VIP buyer program. Check out my Live Market Tracker

Yes, I get it You are not a lead

You are not a lead.

You do not want to be sold.

You want to be educated.

There are no endless magnets, branded coffee cups or signs on the side of my car. No Spam emails. No calenders with my face in the middle. No one cares about my family cat or dog and a funny story on my blog.

Create your own search.  Search all the available properties on my site either by MLS number or by address. Search any listing you like.  View all the listings you want.

Empower yourself to know the right questions to ask. Get informed about the market.  Prices and demand are fluctuating.  HST is coming. (the PST and GST will be harmonized and this will lead to price increases.) Find answers to all your real estate questions by using the search by topic feature. Find and read things not found elsewhere.

If you are looking in the Toronto West markets and would like to be treated with respect and honesty and not handled or manipulated, I can provide current references for your consideration.

I want to inform and educate you. I get it. Let's talk.

A big tip of the Hat to 1000 watt consulting for pointing things out we should know.

Buyer Registration System Toronto

The Toronto real estate Board maintains a sytem called Buyer Registration (BRS) that permits other agent to view the clients that I have posted as wanting a particular home or neighbourhood.

With these times of more sellers than Buyer's (Buyers Market and the inevitable Buyers Strike) agents who use this system can contact me to discuss the seller's motivation, new pricing, motivation and need to sell.

As a Buyer under contract, I can legally pass all this information on to you, just as it was when the prices were creeping upwards. The Seller was entitled all the details they could find out about you. This leverage is now in your favour!



Put my 19 years of real estate experience into your corner. Have a look at what other clients have to say. I welcome your call.

Twitter/dpylyp

6 Reasons this Market is a Rewarding Opportunity

1. The market has taken a downturn in the number of houses being sold and how much they are selling for.

Over the past 4 years the number of real estate agents has dropped from 1.2 million to approximately 700,000. In four years 40% of agents have left the industry and more will follow.
Those agents who left the industry were forced to do so because they did not adapt their business plan to the changing market

Here in the Toronto GTA, we can look forward to the same drop-out rate over the next few years.

2. For the first time in the history of our industry we not only have the right but the legal obligation to sign our buyers under a buyer representation agreement in a falling market. This is a vital point to note b/c the last time the market fell, which was in 1989; we did not have this capability.

The importance of this ability lies in our fiduciary duty to our buyers. We are now obligated to take them under our professional wing and to coach, educate, and help our buyer clients through this market. This means that we can actually show them how to take advantage of a falling market and get them a better deal then they ever though possible.

3. All the stars have aligned for us, as the TREB and other boards across the country have recognized as being important, has the capability of registering your buyers under the buyers registry system, "BRS". The 'BRS' works exactly the same way as MLS, in reverse. Buyers Registration System.

Once you sign your buyer up on a buyer agency agreement you can now register that buyer on 'BRS'. Listing agents who are having difficulties getting showings can now consult the BRS system in order to find agents who have contracted buyers whose requirements fit those of the listed property in question.

4. Commissions. Even in an up market, when sellers are getting 100%, 105% or even 110% it is common place for agents to be subject to their seller clients asking for kickbacks or lowers rates of commission. In the times ahead you can bet this is going to get worse.

Perhaps you have noticed in the last few months, that there are greater and greater numbers of listings that are offering a full 2.5% commission to the co-operating broker.

Look a little further and it will not be hard to notice that it is becoming common place for co-operating brokers to be given a bonus on top of the 2.5% commission. Going forward listings agents will take less and less commission and buyer agents will gain more and more of the total commissions and that is not even mentioning other bonuses such as flat screen TV's, trips, cash bonuses etc...

5. It is a statistical fact that buyers give 2-3 times more referrals than sellers.

6. If you become diligent and serious about building an inventory of buyers and building a business plan around your buyer clientele two things will happen

• You will get more listings than you ever though possible
• You will have absolutely no competition.

Being an advocate of buyer representation since 1994, Ken Wilder has been signing up buyers in coaching real estate agents on how to do it in the past 15 yrs. Since the inception of buyer representation in January 2005 it is his contention that 95% of this industry does not understand, nor practice buyer representation with any kind of effectiveness or professionalism, whatsoever. You have virtually eliminated all competition before you even get started. The world is you oyster.

Source; Ken Wilder The Real Estate Coach

Why You should Buy on the Slide

In the Toronto Real Estate Buyers Market you should be buying on the Slide of the Market and Not the Bottom of the Market.

Let me explain;

Everyone was running to buy when the market was on the way up. But who had the advantage?
The Seller!

They had the Listing and you were running to give them whatever THEY wanted to buy their house. Now, the Shoe is on the other foot.

With a Buyer's Market, The proportion of Listings to the Number of homes sold has changed
See Table



Using the statistics from the Toronto Real Estate board for the west end of Toronto, Etobicoke and Mississauga. at year end December '08, there were 7,398 listings available with 993 homes sold. This results in a ratio of 13.42 . That translates into a 7.4 month supply of homes available for sale vs Buyers. This is the time to be in the Buying Mode even compared to last January where the Listings to Sold Ratio was 25.68. (one home in four sold).

This will allow you to be in the driver's seat during an offer.

If you are considering purchasing a home and want the best deal possible why not have the Sellers of Homes approach you with their best pricing to see what you can buy for your money?

Buying on the Slide Logic

To participate in this type of program you need to understand the concept of Exclusive Buyer's Agency. Not only are you receiving the best possible attention, with your interests in mind, we are able to use technology to find the perfect house for you and have the Seller's BID on your purchase. Wouldn't you love to have Sellers lined up, courting you with the phrase Please buy mine?

Applying the same logic that sellers used against you in multiple offer situations you will have properties offered to you with the same ZEAL!

How do you get involved?

Buyers Registration System is in place and active. I'm ready. Are you?

To all the naysayers, who are waiting for the market to "BOTTOM", when will the bottom be? How will you know the bottom? If you can see the bottom, you have already lost all your Buying advantages or Leverage. Then we will have entered a balanced or possible yet again, a seller's market.

Your comments are always invited.

Realtor.ca updates Toronto Homes

As a follow up to previous posts that commented on the functionality of the REALTOR.ca website the following was received from CREA.

Please be advised that the MLS(r) and Technology Council (MTC) has approved several changes for the REALTOR.ca website.

Effective November 20th, the existing zoom level restriction will be removed. This was originally installed to avoid situations where a property not displaying an address could still be located on the maps. This is now much less of a concern, because 85% of all properties now allow for display of address.

Elimination of the zoom level restriction will also resolve some consumer complaints. For example, some result displays now show only the "500 property" warning simply because there are too many properties in the area selected, even if it is the lowest current zoom level. The change will mean users can zoom in as close as they want to view the listings they want.
This change will also resolve the complaint of the map continuously zooming in and out. This occurs because the visitor has selected the lowest possible zoom level, but keeps trying to go lower.

Work also continues on implementing neighbourhood or MLS(r) zone identification for the "text" search, which has become a popular search tool for website visitors. This means, for example, they can simply put "Parkdale" in the Location box on the front page, and the interactive mapping will automatically take them to that part of Calgary. Since October 2nd more than 3,500 of these areas have been identified and added to the database, including the previous Board MLS(r) system zone ID (W 13 for Toronto as an example).

We need the help of all local real estate Boards and Associations to verify that the zones are correct, and take visitors to the correct area. In the world of interactive mapping, each neighbourhood or area needs an X and Y coordinate and a correct zoom level for the map to be effective. For additional information, please contact the CREA Help Desk.

CREA also continues to work on making the site compatible with MACs, and Firefox browsers.
Based on member and user feedback, the MTC is also reviewing some usability an design options. These are being tested with consumers they effectively address identified navigation or usability issues. This includes complaints that photos are too small, the thumbnail information is not sufficient, and listings are too hard to find. Changes affecting these features will be implemented as soon as possible. We’ll provide updates on any proposed changes.

Do you want access to the other 15 % of the listings?

The reality is that professional realtors have access to a database that is larger and faster to search through. Register your search criteria on a DREAM Home Finder Page, or register as a VIP Buyer to gain access to the database.

Selling Myself.. Why I need a realtor

Why do you need a Realtor... If you can sell your home yourself.

There are more people today attempting to sell their own homes. Many go this route because they do not believe that a Realtor (R) Brings any more value to them than what they achieve on their own. Others have listed their home with a realtor and have become frustrated with the level of marketing and advertising done to sell their property so they assume they may as well try it for themselves.

FACT: 95% of all consumers who attempt to sell their own home - FAIL! And, 95% of those who tried to sell themselves, use a Realtor to help find their next home.
Consumers that have hired a Realtor to sell their home and are unhappy with their marketing and advertising efforts must hold themselves accountable for possibly not conducting a proper due diligence on the Realtor they retained. Like any other industry there are different levels of professionalism, quality, market savvy and value. The key to retaining the services of the right Realtorto sell your home is to ask the right questions. It is important to ask the Realtor what types of marketing and advertising they do, prior to handing over your most valuable asset for sale.

"Our experience in working with David was one in that we felt like we were dealing with family. David was always available when we needed him. He provided solid and accurate advice based on his years of experience. David clearly explained the process along the way, outlined available options and left the final decision to us. His refrain of, “There are no wrong answers”, helped us to relax and to make an informed decision. David’s true talent shines during a purchase. His negotiating skills allowed us to secure our dream heritage home at an excellent price. He truly does thrive on what others may consider an enervating situation. David’s jovial nature was entertaining; he made what could be a stressful time much easier". Dr. P. Rankin

Professional Realtors, long in the industry like David Pylyp, want you to ask these direct and tough questions about marketing and advertising. They will show you examples of their advertising and explain why they are using email marketing campaigns to forward mini cd type presentations to high lite your property. A professional Realtor knows that he must " out and find the buyers" today vs sitting back and waiting for the phone to ring or them simply showing up. Quality content on a website will now market directly to these buyers by answering the call of their keyword searches for homes in Markland wood, Watercolours in Lorne Park or executive townhouses near the subway.

David Pylyp will invest far more, than purchasing a small newspaper ad in the local publication, and telling you that your home will be displayed on REALTOR.ca . Your home will be featured on a Top Ten Google Rated website for Homes west Toronto, mini cd hand outs are available in conjuction with the property feature sheets. Understanding the internet technolgy allows you to have address named websites or specialty pages to promote and feature your property for sale.

If you are thinking of buying or selling a home contact David Pylyp for a private interview.

Lease-to-own housing plan leaves renters cold

Michelle Smith and Andrew Bryan had already signed away their life savings in a Tim Hortons parking lot when they learned they were being evicted from the very home they thought they had been buying for the past two years.

"We had put money down," said Smith, a 34-year-old self-employed cleaner who had entered into a lease-to-own agreement with Solution Homes, a company that says it's "dedicated to helping people find the home of their dreams."

"We gave them everything we had. Then we got the notice," she said of the eviction papers that showed up in the mailbox, sent by the real owners of the Scarborough home.
Three months later, Smith, her husband Bryan and their 11-year-old son were out of house and home.

"We were shocked. How could this have happened?"
Here's how: Solution Homes never owned the property it had been selling to Smith and Bryan – another couple did.

A Star investigation found that Solution Homes, for the past two years, leased homes from desperate sellers and, pretending to be the owner, entered into a lease-to-own contract with people like Smith and Bryan, who can afford a deposit but cannot really afford the house.

Solution Homes collected more than $50,000 from Smith and Bryan in rent and deposits toward the purchase of the home, but forwarded only about two-thirds of the money to the actual homeowners. None of the deposits went to the actual owners and, after 18 months, Solution Homes continued to accept rent, but stopped paying the real homeowners.

The result: Solution Homes makes between $5,000 and $20,000 per deal. Everyone else loses out.

"We went to the police and what they said to us is this may be a civil matter," said Smith, who was evicted from her home July 31.

Discouraged, she began posting warnings on the Internet about Solution Homes, advising others to stay away. Suddenly she realized she wasn't alone. At least three other renters in the GTA approached Smith with similar stories.

Both Toronto and Durham Region police have been contacted by Solution Homes' clients, but police with both forces say the company is not currently under investigation. Meanwhile, the company's director, Olumuyiwa Fadare, who goes by the name David, says the complainants have no one to blame but themselves.

"Everything I'm doing is legal," Fadare said when approached by the Star while collecting a lease payment in the Tim Hortons parking lot on the corner of Commercial Rd. and Victoria Park Ave.
"It's not my fault if they can't get a mortgage," he said, adding none of his clients, including Smith and Bryan, seemed serious about purchasing the home they had been leasing-to-own.

Smith and Bryan had been renting homes for years. They wanted to buy, but as self-employed cleaners, they couldn't.

"It just wasn't happening. It's hard going into banks and getting a mortgage when you're self-employed in our line of work. We didn't have any options," she says.

Then she saw a flyer posted on a lamppost in the city's east end that read: "Don't qualify for a mortgage? Lease-to-own your own home."

She called the number listed on the flyer and got connected with Solution Homes.

A month later, she signed more than $7,000, all the money she and her husband could muster, to Solution Homes as a deposit for a three-bedroom semi-detached on Flatfield Terrace in Scarborough and entered into an "Agreement for the sale of real estate" with Fadare, who represented himself on the contract as the seller of the home.

Property records show that home belongs to Theresa and Annik Pierre and never belonged to Fadare or Solution Homes.

"We actually thought David owned the property. He had signed himself as the seller. We didn't actually know that (Theresa Pierre) owned the property until she started coming over to get the mail," said Smith.

Every month for a year and a half, Smith and Bryan paid Fadare $1,495 as part of their lease-to-own agreement: $1,200 of that was for rent, while $200 was supposed to be added to their $7,000 deposit and go toward their purchase of the house. The other $95 was to go to Solution Homes.

"Things seemed to be going fine. We were working toward getting a mortgage. Making our monthly deposits," said Smith.

Then they got a notice from Jeffrey Shek, a lawyer representing the actual homeowners, Annik and Theresa Pierre.

Smith's monthly payments hadn't been reaching the homeowners and they were running the risk of being evicted.

"That's when things started to go bad," said Smith, who looked back at the receipts she'd been given by Fadare and noticed there was no indication who was receiving the money she'd been handing over.

The Pierres say they were not aware that Fadare had actually collected a deposit on the house. Nor were they aware he had been charging a monthly premium for the purchase of the house.
"We had advertised the house for rent in the newspaper and (Fadare) answered the ad," said Theresa Pierre. "He offered to get renters for the place, said they'd keep it nice and, eventually, they would be able to buy it.

"We thought he was an agent for these people. We didn't know he had collected all that money."
After Fadare stopped forwarding the rent to the Pierres, their lawyer, Shek, began speaking directly to Smith, advising her to deal directly with the homeowners if they wanted to lease-to-own the house.

The problem was, Fadare had their money.

"Suddenly, he's telling me that the money is non-refundable. We lost the entire deposit. There was no way we could purchase the home," said Smith.

In total, Smith and Bryan have documented proof they paid $12,800 to Solution Homes as a deposit on the house. The Pierres say they never saw a cent of it.

Smith and Bryan's story is the same as that of Kathy Alexander, a 48-year-old single mother and restaurateur from Whitby who paid Fadare $8,000 in the same Scarborough Tim Hortons parking lot before moving into a home owned by Theresa Prince. Prince says she had no idea Fadare had signed an agreement to sell her home and says she never saw nor knew of the $8,000. Alexander, who had been making payments on the house past the date when Fadare stopped forwarding her rent to Prince, is now being evicted.

Michelle Darling, a 41-year-old single mother, and her friend Brenda Bixby paid Fadare a combined $17,500 toward a down payment on a Pickering home owned by Christian Kevin. Kevin says he didn't even know that money had been collected for the sale of the house.
"I never got that money. Nobody gave him the right to collect $17,500," said Kevin.
But according to Fadare, "The owner gives the property to me. The owner signs the paperwork and gives me the right to do this."

Fadare, who acknowledges he is not a registered real estate agent or lawyer, says he's an investor and says he is within his rights to accept the "option deposits" on the homes without notifying the landowners.

He offered to supply that paperwork to the Star on Sept. 2 but has yet to do so, and has not responded to any of the Star's subsequent attempts to reach him.

Fadare declined to comment on where the alleged funds – thousands of dollars in option deposits handed over to him in the form of cash, certified cheques and bank drafts – have gone.

"I need to speak to my lawyer before I can answer that," Fadare said, adding he only ever wanted to help his clients get the homes they wanted and never wanted any of them evicted.
The company was registered as a company in September 2006. It does not have an office. The address on the company registration is an Eglinton Ave. E. apartment (although Fadare insists it is actually operating out of a post office box in Eglinton Square). According to corporate records, Fadare is the company's director, Michelle Frankson its chief administrative officer and Uchechi "Michael" Kanu its chief operating officer.

When reached by telephone, Kanu told the Star he left Solution Homes for "personal reasons" in January 2008 and that the company was dissolved at that time.

Corporate record searches indicate the company is still active.

In the lease-to-own contracts investigated by the Star, renters said they handed over a total of $32,500 as deposits on the homes they wanted to buy.

Kanu says Solution Homes didn't keep track of the money because their clients kept opting to pay in cash. Later he said the company had its bank account closed some time in 2007 because their clients kept bouncing cheques and the account had no money in it.
Kanu and Fadare both declined to say how many contracts Solution Homes has with buyers in the GTA.

The Star could not locate Frankson for comment.
In the meantime, Bryan, Darling, Bixby and Alexander all seem to be asking the same question as Smith: "Where's our money, David?"

Brett Popplewell can be reached at bpopplewell@thestar.ca.

David Pylyp; I sincerely feel for the people involved here that were duped by the actions of another. In a city where the dream of owning your own home is rapidly disappearing, due to high down payment demands and stringent credit mortgage approvals, some folks with families who only want to have a home to call their own, are susceptible to this type of scam. I cannot stress enough, using professional people when purchasing or selling a home.

Would Buyers Agency have helped these people?

Caveat Emptor - Let the Buyer Beware

Incredible Technology for Promoting Real Estate

Using the newest Technology for impact advertising and feature sheets is superb and well received by the customers to whom I have handed them.

The captioned mini cd is handed out at my open houses, created for each individual property, as a take away with you, to review the property in the comfort and privacy of your own home.

The Technology also offers some benefits; in that the actual presentation is online and tied to my websites. We are able to send a LINK by email to promote a specific property without sending Pictures online to email address'. Click for Sample Presentation

But there are truly unseen benefits that apply to home Buyers.

• Completely Digitized Documents
• Agreement of Purchase and Sale
• Buyers Agency Agreements
• Waivers
• Financial Commitment to Fund
• Insurance Documents
• Sellers Property Information Statement (SPIS)
• Home Inspection Report
• Survey of your purchase
• Applicable correspondence History
• and obviously pictures of the home you purchased

SO when somone asks; What did your agent do for you, You have the best answer!

Even with all the information available on the internet, Buyers are often unprepared for the myriad decisions and choices that face them. In line with that theme I have prepared a plan for Buyers to follow when looking for their ideal home and the people we need to include when making a purchase.

I invite you to email or call for an interview.

Toronto Real Estate; A good investment

If you are looking for a good investment or just a place to live in west Toronto, then look no further than HumberBay Shore Condo. If you can manage to get in one of these condos right now, they will definitely appreciate in the upcoming years, and it will be a very nice return. Not to mention, they are a comfortable place to live.

One of the things you should know right away is there a different styles of condos. There are loft styles, Old factory conversions or newly built, co-ops, and then there are just the standard condominiums styles. Depending on exactly what you might be looking for will determine what type of condo you choose. Understand what happens at the builders sales office.

Before you head to the realtor’s office, you could acclimate yourself with the exact differences of each style. Many of them will have the same features, but there are a few minor differences in each one that can really help you to distinguish which one you might like better.

To get a general idea of what is available as well as pricing, go online. You can explore many great condos in the Toronto west, Humber Bay Shore area. You can also see virtual tours of locations that currently are for sale. This is a great way to do some checking around without having to put too much time into it.

You have now taken some initiative, and done a little research. You at least know the differences, and the price ranges each style may be in. The next step would be to find an experienced and knowledgeable real estate agent that can help you to find something.

You really should always go through a real estate agent. They are professionals, and do this for a living. They can help take all of the stress of trying to get the best deals, arrange for all the subsequent services you need with Lenders and Lawyers, and even schedule the appointments. You just need to show up and decide if it is what you are looking for. Then, you leave the negotiating and documentation up to the Realtor.

Finding the perfect place for you to live in the Toronto west, Humber Bay Shore area doesn’t have to be complicated. Yet you do need to have a basic idea of what you are looking for. If you don’t then take some time to explore all the various options.

Once you do that you will be able to narrow it down to what you would like to purchase. That is important too as you will really enjoy it more if it has everything you had ever hoped for. You don’t want to walk in and regret that certain features aren’t in place. That way you can be extremely happy with the investment you make in your Toronto west, Humber Bay Shore condo.

MLS.ca moving to Realtor.ca

mls.ca will be revamped on May 28th. Finally interactive mapping will be available. We will see if they actually make some significant improvements.

On May 28th, 2008, MLS.ca will be introducing some new features to the web site on behalf of REALTORS® across Canada. The result will be an even better real estate resource, with more information about the properties displayed on the site.The first change will be the introduction of interactive mapping. You'll be able to use Microsoft Virtual Earth software on the site to determine your search area, and to determine where a property is located. Interactive mapping will make it much more convenient to search traditional neighbourhoods or a specific region.The web site will also have a new streamlined text search. You'll be able to input your initial search criteria without all of the details of an Advance Search. The site will still offer the detailed or Advance Search option, but also has a streamlined text version to make looking for properties even more convenient.There will be a new look, or design. The traditional REALTOR® map is still a key part of the web site, but the new layout will make it easier to look for properties and information.And there will be a new address - http://www.realtor.ca/ Don't worry, you don't have to memorize it. You'll automatically be redirected to the new address even if you input our old one.

Yet it is still interesting to me why the consuming public's appetite does not draw them to an Agent's website portal. The Elegant Homes and Humber Bay Shore websites contain this feature.

MLS data is inevitably delayed and filtered for content and permission, by the home owner at the time of the listing. A portal permits viewing of ALL the listings in live time. This means that properties listed in a fast moving neighbourhood are available immediately rather than [days] later.

Prospective shoppers are encouraged to make use of this feature by registering at Buying in Toronto to make full use of the source.

Tips for Selling in a Buyer's Market

As the summer season brings the usual slow-down in home sales activity, many cities in Canada that experienced hot sellers' markets over the spring are now seeing a change toward buyers' markets. But don't let that hamper your plans -- if you prepare properly and make the right moves, you can sell your house.

One of the first things real estate brokers and agents will encourage you to do if you're selling in a challenging market is to price your house appropriately.

"We are experiencing a buyer's market," said David Pylyp a buyers representative from West Toronto, ONT. "If you are a buyer this is good because there is a wide assortment of houses from which to select. If you are a seller it is especially important to have your house priced appropriately."

A real estate broker from Etobicoke, echoes similar sentiments. Although the number of sales has reduced slightly on a monthly basis prices appear to be holding with an average single family home priced at $ 390,000.

"Today there are more homes on the market, and if the homes are not priced at market, it will take 60 to 90 days to sell," said Clemente Cabillan.

Maybe, in Toronto the job stability is a major factor in the current market but low interest rates are contributing to homes selling.

"Our market continues to be soft; a true buyers' market," said David Pylyp "A significant percentage of the listings in our MLS have had at least one price decrease since they initially came on the market. Layoffs or potential layoffs by some of the area's large employers have dampened home-buying enthusiasm. However, continued low interest rates have provided a supply of buyers."

Some regions, like Oshawa and Pickering Ontario, are seeing a pronounced slowdown.

"We're definitely shifting into a buyers' market, but where are the buyers," said David Pylyp. "Thirty-year-low interest rates and I am hearing this story throughout the real estate community of a low volume of buyers, high volume for sale. For sellers, that translates to pricing very competitively to begin with and do those extra things that will make the house have super appeal."

So what can you do to give your house super appeal? For starters, you should:

Set your price competitively.

Offer incentives. If your carpet is old or outdated, offer a carpet allowance up front. If a potential buyer knows this right off the bat, they might be able to overlook the unattractive carpet - probably the first thing they'll notice when they walk in the door. Or, offer to include your appliances with the home. If you're moving into a new home, appliances may already be included, or you may be ready to upgrade. This type of offer will be especially enticing to first-time buyers who are putting most - if not all - of their available cash into their down payment and closing costs.

Offer to pay the nonrecurring closing costs - an adjustment on closing for broadloom, paint, redecorating, updating bathrooms or offering maintenance fees for a year, title insurance, or property inspections. Some have included Brand new appliances or Plasma TV. This can be a major motivation to cash-strapped buyers; these costs could run about 3 to 5 percent of the cost of the house or condo. Depending on your market and budget situations, you may offer to pay part or all of the costs.

Get a professional home inspection before you put your house on the market. Nothing will kill your deal quicker than a buyer's inspector finding a major problem during the inspection process. Even if you reach agreement with the buyer on who will pay how much of the repair work - or if you agree to pay all - the fact that the buyer has to wait for the repairs could put a damper on their plans, and even trigger them to break the deal, especially if there are plenty of other comparable houses on the market.

Be flexible. When you get an offer and the buyer wants to move in sooner than you'll be ready, make plans to stay in an apartment or with relatives until your new place is ready. A month or two of inconvenience will surely be worth it down the road.

Create good curb appeal. A home shopper's first impression is everything. The moment they pull up to the curb, they'll make an instant judgment. You'll want to be sure it's positive. You can begin by making sure leaves are raked up, and your shrubs and bushes are pruned. Make sure bikes and toys are out of sight.

Focus on your walls. If your walls are dirty, it will be an automatic turnoff to potential buyers. Think about touching up the paint on your walls before you put your home on the market, keeping the colors neutral and light. Save your favorite reds and greens for your next place, where you'll be staying put for awhile.

Make sure your home shows well. Get rid of all the clutter. Keep the house clean and simple. If you have a lot of knickknacks, keep them out of sight. Make sure there are no lingering pet or smoke odors. Set out some fresh flowers. Turn on some light music.

Let the light in. Open blinds and curtains so plenty of light illuminates the home's interior. And, most importantly, be patient. Don't be too hasty in reducing your asking price. But be ready to when the time comes. You'll want to talk to your agent about how long homes are staying on the market in your neighborhood. The time to think about reducing your price is once you pass that mark.

How to match the home you buy to your pocketbook

So, you've decided to take the big leap and purchase your first home. Most of us have a "dream home" tucked away at the back of our minds -- complete with six bedrooms, two fireplaces and a panoramic view. Before setting off to view properties you likely can't buy.

Your "dream home" can easily become a nightmare when most of your money goes to pay the mortgage and there's little left over for anything else. Overextending yourself financially is the quickest way to destroy the excitement of home ownership and add stress to your life.

Smart home-buying means knowing what you can afford and being practical about it. Most first-time buyers, in particular, lack the funds needed to buy a home without assistance from a bank or financial institution. Buying a home means combining savings with money borrowed through a special arrangement called a mortgage.

To keep mortgage payments within their means, most first-time buyers purchase what is commonly known as a "starter home." A starter home is just that -- a way of getting started in long-term real estate investment.

To match the home you buy to your pocketbook you have to realistically assess your needs, determine what you can afford and, usually, lower your expectations. Begin by enlisting the services of a real estate representative. This individual will help you target your home ownership dreams and provide valuable information on mortgage options, interest rates and incentives, such as government programs, for first-time buyers.

In the meantime, here are some ways to determine how much you can afford.
Set a maximum price rangeTo determine your "affordability" price range, you must calculate two amounts: the amount of cash you can afford to put towards the purchase (down payment) and the maximum amount of loan (mortgage) you can comfortably carry. Typically, household expenses should not exceed 35 per cent of your gross income.

Put down as much as you canThe key to getting started for most first-time buyers is the initial down payment. This is the part of the purchase price you have to put down as cash. You may be able to buy a home for as little as five per cent down. But remember that the larger the down payment, the easier it will be to manage the other expenses (mortgage, utilities and property taxes).

An ideal down payment is 25 per cent of the purchase price. Keep some cash in reserve though for unexpected expenses related to a home purchase and typical expenses such as land transfer tax, legal fees and moving expenses.

Know how much to borrow

To establish your maximum mortgage limit, a financial institution will determine the monthly payment you can afford by calculating your debt-service ratio. List all your loans (car, personal loans, monthly credit card balances). The sum of these and your mortgage payment, including principal, interest and taxes, should not exceed about 40 per cent of your gross income. The mortgage payment and taxes should not exceed about 30 per cent of your gross income.
Understand interest ratesThe size of the mortgage you can arrange, based on payments you can afford, depends on interest rates. The lower the rates, the larger the possible mortgage and the more affordable home-buying will be.

However, there are other variables to consider: How open is the mortgage? Is it portable? Would prepayment be allowed? Discuss your mortgage options with David Pylyp, banker or financial advisor. Decide what's best for you, establish a limit and stick to it.

Look at other sources of funds

If you have been contributing regularly to a Registered Retirement Savings Plan (RRSP), you may have to look no further for your down payment. The federal government's RRSP Home Buyers' Plan allows eligible taxpayers to withdraw up to $20,000 per person ($40,000 per couple) tax free from their plan to buy a qualifying home. However, you have to pay back every year at least 1/15th of the amount taken out until it is all paid back, or there will be a tax penalty.

The Ontario Home Ownership Savings Plan (OHOSP) is a provincial program which provides tax credits on annual contributions to an Ontario resident earning less than $40,000 a year (or less than $80,000 per couple) who has never owned a home. While there is no limit to the amount you may deposit in an OHOSP, you can only receive tax credits on annual contributions of $2,000 ($4,000 per couple) or less. Depending on your annual income and the money you invest, you can earn up to $500 individually or $1,000 a couple in tax credits a year. The plan must be closed and a home purchased by the end of the seventh year.

The Canada Mortgage and Housing Corporation's (CHMC) five per cent down mortgage program is available to both first-time buyers and those who have already owned a home. This benefits buyers who can afford the monthly payments, but would have trouble saving for a larger down payment. Under the program, CMHC may insure the mortgage on your home (against default in payments) for up to 95 per cent of the lending value. An insurance premium of about 3.75 per cent of the mortgage loan is charged. This amount can be added to the mortgage or paid on a monthly basis.

Other sources of funds you can tap into for a down payment include savings and investments and loans or gifts from your family or relatives. If you're already a homeowner and moving up, you can use money that you get from the sale of your present home.