Hello everyone, Today, we're diving into some exciting news that’s probable to shake up the real estate market here in the Greater Toronto Area. The Bank of Canada has just cut interest rates by 50 basis points. But what does this mean for you as a buyer, seller, or investor? Let's break it down!"

On October 23, 2024, the Bank of Canada lowered its key interest rate to 3.75%, marking the fourth consecutive cut since June. This move is aimed at boosting economic growth and easing inflation, which recently fell to 1.6%—back in line with the central bank's target.

Impact on Buyers

So, what does this mean for homebuyers? Well, lower interest rates generally translate to reduced borrowing costs. This could be a golden opportunity for those with variable-rate mortgages, as their payments might decrease in the coming months. Plus, if you're considering a fixed-rate mortgage, keep an eye out—rates might drop further if market conditions continue to improve.

For first-time buyers, this rate cut combined with new mortgage rules—like increased price caps for insured mortgages and extended amortization periods—could make homeownership more accessible. It's a promising time to explore your options!

Impact on Sellers

Now, let's talk about sellers. With lower interest rates potentially increasing buyer demand, we might see more activity in the market. However, it's important to note that while demand may rise, the prices would need to be within reason to generate traction as the market has lot of inventory already.

If you're thinking about selling and have urgency, this could be a strategic time to list your property as more buyers enter the market looking for opportunities with this cut. If your situation allows you to wait, then 3-4 months wait for the Spring time could be well worth it, with couple of more cuts impending and busier Spring market. If you are in a move-up situation, it would be better to list it at the earliest, to make more benefit on the higher priced buy side due to the slow market.

Market Dynamics

The GTA housing market is currently experiencing a surge in new listings—up 35% from last year—which has pushed inventory levels to their highest since November 2008. This means buyers have more options and negotiating power, making it crucial for sellers to price competitively. Despite this influx, prices have seen moderate declines when you consider yearly numbers. The average home price in September was down just 1.1% from last year. This stability indicates a balanced market where both buyers and sellers can find opportunities.

In September alone, home sales in the GTA rose by 8.5% year-over-year, indicating that buyers are already beginning to take advantage of more favorable market conditions.

In summary, this rate cut is likely to stimulate more activity in the GTA real estate market. Whether you're buying or selling, staying informed and prepared is key. As always, consult with your real estate professional to navigate these changes effectively.

Wish you all the very best! Reach out to our dedicated team at Elixir with any queries you have about real estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome, today we will discuss information that simplifies Real Estate and enables you to achieve your goals better. Today, we're diving into a topic that's reshaping the Greater Toronto Area's real estate landscape: the impact of remote work on real estate trends. The shift to remote work, accelerated by recent global events, has significantly altered how we view our living spaces and where we choose to call home. Let's explore the key ways this change is influencing real estate in the GTA.

Remote work has redefined what many people look for in a home:

Home Office Space: There's an increased demand for properties with dedicated office spaces or extra rooms that can be converted into workstations. Homes with this feature are seeing higher interest and potentially commanding premium prices. A working couple who 5 years back was happy with a 1 bed plus den setup, now looks for a larger condo footprint to ensure two work desks can be set up without conflict.

Larger Living Areas: With more time spent at home, buyers are prioritizing spacious living areas. Open-concept layouts and larger square footage have become more desirable. Condos or homes with a cozy living room is not that preferred with the changing trend.

Outdoor Spaces: Access to private outdoor areas like balconies, patios, or backyards has become a must-have for many buyers, as people seek spaces for relaxation and a change of scenery during work breaks. The young first time home buyers get more attracted towards condo townhomes where they get that additional backyard open space to spend some time in open nature. The high-rise condos due to absence of a private backyard, are less preferred.

Suburban and Rural Migration

The GTA is experiencing a notable trend of people moving away from the downtown core. With daily commutes no longer a concern for many, suburbs are seeing increased interest. Areas like Brantford, Woodstock, Courtice, Barrie and Hamilton etc are benefiting from this shift. Even areas further from GTA, such as Caledonia, Georgina, Collingwood, Grimsby, Welland, St Catherines are seeing increased demand as buyers seek more space at a lesser price point and a connection to nature.

Impact on Downtown Condos

The condo market, particularly in Toronto core, has faced some challenges. With less need to be close to offices, some buyers are opting out of the downtown condo lifestyle. Rental Market is shifting with many condos available to lease and this increased supply and reduced demand is putting downward pressure on the rental prices. Currently we are in Sep 2024, and we have 5,000 plus active lease listings available across City of Toronto, and from these 1,800 plus are just from downtown Toronto.

Long-Term Implications

While some of these trends may moderate as we move forward, it's likely that the impact of remote work on real estate will have lasting effects. Many companies are adopting hybrid work models, which may sustain the demand for homes that can accommodate both in-office and remote work. Cities and developers may need to rethink urban planning, potentially leading to more mixed-use developments and decentralized business districts.

As we wrap up, it's clear that remote work has become a significant factor in shaping real estate trends in the GTA. Whether you're a buyer, seller, or investor, understanding these shifts is crucial for making informed decisions in today's market.

Thanks for tuning in to this episode of Elixir Talks. If you found this information helpful, please like, share, and subscribe for more insights into the GTA real estate market. Until next time, stay informed and make your real estate decisions with confidence!

Wish you all the very best! Reach out to our dedicated team at Elixir with any queries you have about real estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Today, let us explore a crucial concept in real estate investing: the Capitalization Rate, or Cap Rate. Whether you're a seasoned investor or just starting, understanding Cap Rate is essential for evaluating property investments. This episode will definitely help you understand this concept very well and will try to make it simple.

So, what exactly is Cap Rate, and why is it important?

Cap Rate helps investors assess the potential return on an income-generating property. It's a quick way to compare the profitability of different real estate investments. Cap Rate is a ratio that measures the annual return on investment, based on the property's net operating income (NOI) and its current market value.=

The formula is simple: Cap Rate equals to NOI divided by the property's value. In other words, Cap Rate shows what percentage of your investment you can expect to earn back in a year, excluding financing costs. It's expressed as a percentage, making it easy to compare different properties. For understanding NOI better you can review our last episode here.

To calculate the Cap Rate, you need two key numbers: the property's Net Operating Income and its current market value.

Suppose you have a property valued at $500,000, and its annual net operating income is $50,000. To find the Cap Rate, divide the NOI by the property value.

In this example, the Cap Rate is 10%. This means you're earning a 10% return on your investment annually, based on the property's income and value.

Now, how do you interpret the Cap Rate? Generally, a higher Cap Rate indicates a higher return and risk. Conversely, a lower Cap Rate suggests a lower return with less risk. It's essential to balance these factors based on your investment strategy.

For instance, a property with a Cap Rate of 10% might be in a less desirable area, implying higher vacancy rates or maintenance costs. On the other hand, a 5% Cap Rate property in a prime location might offer more stability and consistent income. For example, properties in emerging suburban markets might offer higher Cap Rates due to the increased risk, while properties in stable, high-demand areas might have lower Cap Rates due to lower risk.

In downtown Toronto, you might find properties with Cap Rates around 3-5%. These lower Cap Rates reflect the high demand and stable market conditions. On the other hand, properties in developing areas like Hamilton or Oshawa might offer higher Cap Rates, say around 6-8%, reflecting the potential for higher returns but also higher risk.

These examples highlight the importance of understanding the local market conditions when evaluating Cap Rates.

Several factors can affect a property's Cap Rate. These include the property's condition, location, market demand, and overall economic conditions. Improvements and renovations can also impact the NOI, thus affecting the Cap Rate. For instance, upgrading a property's amenities can increase its NOI, leading to a higher Cap Rate.

Cap Rate is a valuable tool for comparing investment opportunities. It helps you assess whether a property aligns with your investment goals. However, it's crucial to consider it alongside other metrics like cash flow, appreciation potential, and financing costs.

Now let us look at some scenarios from the Greater Toronto Area to see how Cap Rates play out.

A multi-family property in Mississauga is valued at $1,500,000 with an annual NOI of $105,000.

This property has a Cap Rate of 7%. It's a solid investment with a good balance between return and risk, considering Mississauga's growing population and job market.

A retail space in downtown Toronto is valued at $3,000,000 with an NOI of $180,000.

This gives us a Cap Rate of 6%. While the return is lower, the prime location in downtown Toronto offers excellent stability and potential for long-term appreciation.

An industrial property in Brampton is valued at $2,200,000 with an NOI of $198,000.

This property has a Cap Rate of 9%, indicating a higher return. However, industrial properties can have higher vacancy rates, so it's essential to consider all factors.

Several factors can influence Cap Rate, including location, property condition, and market conditions. Let's take a closer look.

1. Location: Prime locations generally have lower Cap Rates due to higher demand, higher value and lower risk.

2. Property Condition: Well-maintained properties attract better tenants and higher rents. This directly impacts the NOI and Cap Rates.

3. Market Conditions: Economic factors, interest rates, and local market trends impact Cap Rates.

4. Lease Terms: Long-term leases with stable tenants can lower risk, affecting the Cap Rate.

5. Vacancy Rates: Higher vacancy rates increase risk and can result in higher Cap Rates.

Let us also consider some ballpark estimates for various commercial real estate categories,

Office Buildings: Typically range from 4% to 8%, with higher cap rates for properties in secondary markets or with lower-quality tenants.

Retail Properties: Can vary widely from 4% to 12%, depending on location, tenant mix, and lease terms. High-street retail in prime locations often has lower cap rates.

Industrial Properties: Generally range from 5% to 9%, but can be higher for properties in less desirable locations or with older buildings.

Multifamily Residential: Typically between 4% and 8%, with lower cap rates for properties in desirable urban areas and higher cap rates for properties in suburban or rural areas.

Single-Family Homes: Cap rates can vary significantly based on location and market conditions. As an investment property, they typically range from 4% to 8%.

Understanding Cap Rate is crucial for making informed real estate investment decisions. It helps you evaluate the potential return and compare different properties effectively. Remember to consider all factors and use Cap Rate as a guide, not the sole determinant.

Wish you all the very best! Reach out to our dedicated team at Elixir with any queries you have about real estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome friends, Today we’re discussing an essential topic for every home seller in Ontario: the legal disclosures required when selling your home. Whether you’ve sold often or are a first-timer, understanding these disclosures can save you from potential legal troubles and ensure a smooth transaction. Let's get started!

Ready to sell your home? Let's ensure you know what must be disclosed legally to potential buyers!

In Ontario, certain disclosures are mandated by law to protect both the buyer and the seller. These disclosures are essential to ensure that the buyer is fully aware of the property's condition and history. The thumb rule to follow is: When in doubt, disclose it! Transparency is key to a smooth real estate transaction. Here's a breakdown of the main disclosures:

    •    Latent Defects: You must disclose any hidden defects that make the home dangerous or unfit for habitation, even if they are not immediately visible. Examples include structural foundation issues, mould, or faulty electrical systems. Any defect which is latent and not seen by the naked eye should be disclosed. Sellers are obligated to disclose latent defects. On the other hand patent defects are something which can be seen, like chipped-off paint, missing roof shingles, cracked ceramic tiles, cracked driveway, damaged downspouts, broken windows, stained carpets, broken fixtures etc. Generally, buyers are expected to discover the patent defects through reasonable inspection and due diligence; and for patent defects, the reasonable expectation is that the Seller will provide a disclosure, where required. 

    •    Property Condition: Any material facts that could affect the property's value or desirability should be disclosed. This includes past flooding, foundation issues, fire incidents, or termite infestations. 

    •    Renovations and Repairs: Any major renovations or repairs that have been done without proper permits or that may not comply with building codes need to be disclosed. This helps buyers understand the scope and legality of the work done on the property. 

    •    Environmental Hazards: Disclose the presence of any environmental hazards such as asbestos for insulation, lead paint, or radon gas. This is crucial for the safety and well-being of the potential buyers. 

    •    Neighbourhood Issues: Any known neighbourhood issues, such as frequent noise disturbances, ongoing disputes, or upcoming construction projects that could affect the quality of living, should be communicated. 

Selling your home? Make sure you're fully transparent with these disclosures! Share it with anyone you know who's planning to sell their property. Understanding and adhering to these disclosure requirements not only protects you from potential legal issues but also builds trust with your buyers, making the entire selling process smoother and more efficient. At Elixir Real Estate, we're here to guide you every step of the way. If you have any questions or need assistance with selling your home, don't hesitate to reach out.

Wish you all the very best! Reach out to our dedicated team at Elixir with any queries you have about real estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome back, friends! Today, we're discussing an exciting topic that's been gaining traction in the real estate world: Virtual Staging vs. Traditional Staging. Whether you're a seller, a buyer, or just curious about the real estate market, this one's for you! Let's get started!

Traditional Staging

[show one after the other images of traditionally staged living and bedrooms]

Let's start with traditional staging. This is the classic approach where you bring in professional stagers to transform your empty or cluttered space into a stylish and inviting home. They'll bring in furniture, decor, and even artwork to create a space that appeals to the widest range of buyers. The goal is to help potential buyers envision themselves living there.

Pros:

Staging done in traditional manner creates a strong first impression, when the prospect comes in to view your property, they can feel the usability of the spaces with the staged furniture, it becomes experiential. When you are in process of doing traditional staging, by process you are able to identify any other shortcomings of the property and take care of those and make it more appealing.

Cons:

Traditional Staging setup can be expensive, it takes time to plan, transport and setup the furniture and lastly it needs you to first empty the living space with existing infrastructure and furniture, or decluttering your home.

Virtual Staging

This is where technology comes in to save the day. With virtual staging, high-quality images of your empty space are digitally transformed to show what the room could look like with furniture and decor. This is usually done by virtual stagers, or these days lot of great AI software's do their magic to turn spaces and areas to professionally looking spaces.

Pros:

Cost-Effective: Virtual staging is generally much cheaper than traditional staging since there's no need to rent or move physical furniture.

Quick and Flexible: It's faster to implement and allows for easy changes to the design style without the need to physically rearrange anything.

Less Time to Market: The turnaround time is must faster which enables your listing to go live that much quicker to market

Cons:

Buyers cannot physically experience the space.

Some buyers may need traditional staging to determine the usefulness of the property during their in-person visit.

Which one is better for you?

Budget: Virtual staging is generally more affordable than traditional staging.

Timeline: If you need to sell your home quickly, virtual staging can be a faster option.

Flexibility in terms of options on how you want to showcase a living area.

Buyer Interaction is better in the traditional model, as the prospect can walk around the furniture and visualize better.

Consider the preferences of your target buyers. Some may prefer to see a physically staged home. If your home needs significant repairs or updates, traditional staging might help to address these issues during preparation time.

Hybrid Approach

Often there is a hybrid approach one can utilize by doing a traditional staging at the main level living areas and a virtual staging at the bedroom level. This would cut down on costs and at the same time give the benefits of traditional staging, and the impact when one enters the property for in-person review.

I hope this blog helped you better understand the differences between virtual and traditional staging. Remember, the goal is to create a space that appeals to the widest range of buyers and helps your home sell smoothly for top dollar.

Wish you all the very best! Reach out to our dedicated team at Elixir with any queries you have about real estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Hello everyone, and welcome back to Elixir Talks! Today, we're addressing a common dilemma that many homeowners face when selling their property: Should you price your home competitively or slightly higher to attract offers? Let's review into the pros and cons of each approach to help you make an informed decision."

First, let's talk about pricing your home competitively. This strategy involves setting a price that is in line with or slightly below the current market value of similar homes in your area. Here are some benefits of this approach:

 Attracts More Buyers: A competitive price can generate more interest and increase the number of potential buyers viewing your property. This can lead to multiple offers, driving up the final sale price. I always say that a well presented property will automatically bear its price in the given market and attract a credible buyer.

 Sells Faster: Homes priced competitively tend to sell more quickly because they attract serious buyers who recognize the value. This reduces the time your home sits on the market, which can be advantageous in a dynamic market.

 Avoids Price Reductions: By pricing your home competitively from the start, you minimize the risk of having to reduce the price later. Frequent price reductions can make buyers skeptical and less likely to make an offer.

Now, let's consider the strategy of pricing your home slightly higher than market value. This approach can also have its advantages:

 Room for Negotiation: Pricing slightly higher gives you some wiggle room to negotiate with buyers. It allows you to accommodate offers that come in below your asking price while still achieving a satisfactory final sale price.

 Perceived Value: Some buyers may perceive a higher-priced home as being of higher quality or having more desirable features. This can attract buyers who are willing to pay a premium for what they believe is a superior property.

 Targeting Specific Buyers: Pricing slightly higher can target a different segment of buyers who are looking for a certain price range. This can be effective if your home has unique features or amenities that justify a higher price. If your property has substantial updates, it could very well work if those updates are reflected well in the marketing material.

However, it's important to be aware of the risks associated with overpricing your home:

Fewer Showings: An overpriced home can deter potential buyers from scheduling showings. They may view it as out of their budget or not worth the asking price, leading to less traffic and fewer opportunities to sell.

Longer Time on Market: Homes that are overpriced tend to sit on the market longer. The longer a home sits, the more it can develop a sentiment in the prospects, making buyers wonder if there's something wrong with the property.

Potential Price Reductions: Ultimately, you may need to reduce the price if your home doesn't attract offers. Multiple price reductions can make buyers think you're desperate to sell, which can result in even lower offers.

So, should you price your home competitively or slightly higher? The answer depends on various factors, including your local market conditions, the unique features of your home, and your selling timeline. Here's a balanced approach to consider:

 Market Analysis: Work with a knowledgeable real estate agent to conduct a thorough market analysis. Understand the comparable sales in your area and the current demand to set a realistic price range.

 Highlight Unique Features: If your home has unique or desirable features that justify a higher price, make sure they are prominently highlighted in your marketing materials and during showings.

 Flexibility: Be prepared to adjust your pricing strategy based on feedback and market response. Flexibility can help you find the sweet spot that attracts serious buyers while achieving your financial goals.

To recap, whether you choose to price your home competitively or slightly higher, understanding the pros and cons of each approach is key. At Elixir Real Estate, we're here to guide you through every step of the selling process, ensuring you make the best decision for your unique situation. If you have any questions or need personalized advice, don't hesitate to reach out to our team. Thanks for watching, and be sure to like, share, and subscribe for more real estate tips and insights. See you next time on Elixir Talks!

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Hello everyone, Thinking of selling your home and needing it gone smoothly? You're not alone! Today, we will uncover some winning strategies to get your "For Sale" sign replaced with a "Sold" one in no time. So, grab your pen and take notes, because we're about to make your home a hot commodity!

Selling a home quickly requires a multi-pronged approach. Here are some key strategies to consider:

Pricing Power:

Market Research is Key. Understanding current market trends and recent sales of comparable properties in your neighbourhood is crucial to strike the sweet spot. Overpricing can scare away buyers, while undervaluing leaves money on the table for us as a Seller. A competitive price attracts more interest and drives faster sales. Pricing right will reap compound benefits in the timeliness of the sale.

Declutter and Depersonalize:

Like with everything else, First Impressions do matter in Real Estate. Buyers want to envision themselves living in the space. Pack away clutter, minimize personal items, and create a clean, spacious feel; the buyer prospects should be able to freely walk in the living spaces.

Consider strategic furniture placement by taking assistance from a Staging expert, add colours with decorative accents, and enhance curb appeal with landscaping and a welcoming freshly painted front door. A well-staged home creates a positive first impression and makes buyers emotionally connect with the property.

Best in Class Marketing Material

Professional Photography is a Must: High-quality photos are essential for grabbing attention online. Invest in professional photography to showcase your home's best features.

Adopt Multi-Channel Marketing. Advertise your listing on major real estate websites, social media platforms, and local publications to create the awareness of your new listing. Consider running virtual tour campaigns to showcase your home to a wider audience.

Open House Advantage:

Showcasing Your Gem to active prospects. Schedule open houses at convenient times for potential buyers. Weekends and evenings typically see higher traffic. Have informative flyers and property details available. Make minor repairs and ensure the house is clean and inviting. Consider offering refreshments to create a welcoming atmosphere. Open Houses are traditionally not known for attracting the buyers, however, at times it does help to lengthen the time property is available to show to a wider audience. And it has happened that someone visiting an open house has recommended the property to a qualified buyer.

Negotiation Edge:

Work with an experienced real estate agent, who can guide you through negotiations, present offers effectively, and advocate for your best interests. Be Flexible, but Firm: Be prepared to negotiate, but don't undervalue your home. A good realtor can help you find a win-win solution with a qualified buyer.

To recap, the best strategy to sell your home quickly involves pricing it right, staging it beautifully, marketing it effectively, being flexible with showings, and having a skilled negotiator by your side. At Elixir Real Estate, we're committed to making your home-selling journey smooth and successful. If you have any questions or need assistance, don't hesitate to reach out to our team. Thanks for watching, and be sure to like, share, and subscribe for more real estate tips and insights.  

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome back, today, we're tackling a common question for homeowners: Seller's market vs. Buyer's market – what it means to deal with these markets. Whether you're thinking of selling or buying, understanding the market conditions can make a big difference.  So, let us examine the key differences and how we should navigate them as a buyer or seller.

Seller's Market:

Imagine a scene with multiple offers flying in, bidding wars commonplace, and homes selling above the asking price.  That's a seller's market in a nutshell!  Here's what it means for you:

High Demand, Low Supply: Buyers are plentiful, and homes are far few. This creates fierce competition, driving prices up. In the GTA region, this was the norm in the last quarter of 2021 and the first quarter of 2022.

Multiple buyers vying for your property can significantly increase your selling price, more often in such markets you will see classic multiple offers situations. 

Quick Sales: Your home is likely to sell quickly, sometimes within hours of listing coming up in the market.

Negotiation Power: The seller holds the upper hand. You have more leverage to negotiate terms favourable to you, like closing dates and inclusions.

If you are a Buyer in a Seller's Market, it can be challenging. You'll need to act fast and be prepared for competition. It’s crucial to have a cushion in the budget and be ready to make quick decisions. But, do not get overboard in the price you pay, as if the market subsides you have lost your immunity and pricing advantage. So, if you are a buyer in a sellers market, still remain as objective as possible in the whole process and do not get emotional on a property. 

Buyer's Market:

Now, picture a calmer scene with more houses on the market and less competition.  That's a buyer's market!  Here's how it plays out:

More Choice: Buyers have a wider selection of properties to choose from, allowing them to find their dream home. They can take their own sweet time to compare properties and settle for the best one that meets their aspirations.

Lower Prices: With less competition, sellers may be more open to negotiating a lower price for a credible buyer.

Better Negotiation: Buyers have more leverage in negotiation and in addressing deficiencies identified during the home inspection.

Objective Decision-Making: The urgency to buy or sell is lessened, allowing for more focused decision-making.

But what if you're a seller in a Buyer's Market? It can be tough. You may need to price your home more competitively, be patient with the selling process, and be prepared to make concessions to attract buyers. The marketing material, brochures, social media campaigns, staging elements - All of these become far more important for us as Sellers in a Buyer's market. As a seller, we need to make sure our listing stands out in the sea of listings.

If you are Selling? A seller's market is ideal. You can potentially sell quickly and for top dollar. And if you are in for Buying? A buyer's market offers more options, potentially lower prices, and greater negotiating power. The current market is more tuned towards Buyers, for both first-time home buyers and move-up. If you are a Seller in the current market and don’t want to buy or enter again, you should hold on and not sell at this time.

At Elixir Real Estate, we're here to help you navigate both Seller's and Buyer's Markets. Whether you're buying or selling, our team is dedicated to ensuring you get the best deal possible. Thanks for watching, and don't forget to like, share, and subscribe for more real estate tips and insights. See you next time on Elixir Talks!

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome back, today, we're tackling a common question for homeowners: Seller's market vs. Buyer's market – what it means to deal with these markets. Whether you're thinking of selling or buying, understanding the market conditions can make a big difference.  So, let us examine the key differences and how we should navigate them as a buyer or seller.

Move-Up Magic in a Slow Market

In a move-up scenario, homeowners upgrade to a larger or better property.  Maybe you're a family in a townhouse moving to a semi-detached home, or a semi-detached family transitioning to a detached home. Or moving from a Single Garage Detached to a Double Garage home. Or moving from a high-rise condo to a freehold asset.

Understanding the Current Market

First, let's get a sense of where we are. Here's a graph showing yearly TRREB MLS sales for the past 13 years. As you can see, 2023 and 2022 were slow years with significantly lower sales volumes, specially when compared to 2011, which saw around 89,000 units sold. Cut to 2023 and we had only 65,884 sales in the GTA. This highlights the market's sluggishness, even after thirteen years worth of population growth and new subdivision developments, the quantum of sales reduced dramatically.  Even in 2024, so far the first half saw only 36,586 transactions despite an interest rate cut announced in June, proving the slow nature of market.  Two more cuts are likely this year, and up to four expected in 2025.

This slower market allows us to negotiate well for buyer clients, with properties generally available at credible prices. So, if you've been contemplating a move-up, this could be the perfect opportunity!

The Move-Up Advantage

In a move-up scenario, you're selling your current home and buying a better one in terms of location, size, specifications and lot. Yes, your existing home will sell at the current market price, which might be lower than a peak market. However, the property you're purchasing will likely be at a higher price point, offering greater potential for appreciation. Ultimately, the gains you make on the purchase will outweigh the discount you might give on the sale, since both transactions occur in the same slow market.

Downsizing vs. Move-Up

This logic doesn't apply to downsizing.  In a downsizing scenario, you'd likely lose more on the sale of your larger home and gain less on the purchase of a smaller one due to the lower price point.

Benefits of Moving Up Now

The current market offers two key benefits for move-up buyers:

Price Saturation where Prices for larger properties are also saturated, minimizing the potential loss when selling your current home.

Inventory Choice with less competition, you have a wider selection of properties to find your perfect fit.

Selling First, Buying Second is Key

Now the questions comes when in a Move-Up scenario should I Buy First or Sell First. In a slow market, prioritize selling your current home first. Secure a sale with a longer closing to give yourself time to find your ideal move-up property. Once your sale is firm, you can confidently purchase your new, bigger home. Listing your current home while searching allows for continued viewings and potential offers. This strategy minimizes pressure and ensures a smooth move-up experience. You will be in the commanding position, to sell your home at a reasonable market price, and then negotiate well for the move-up.

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

 Today, we'll focus on the second type of appreciation in real estate: Forced Appreciation. Let’s go into the basics and see how this influences asset prices. 

In our last blog, we covered how natural growth in regions and economies, coupled with regular inflation, translates to price increases, known as 'Market Appreciation'. Conversely, 'Forced Appreciation' occurs when growth is driven by the owner's efforts to enhance its use and appeal. Let's explore the various ways an asset owner can induce Forced Appreciation, which I will clarify through several examples in addition to the property 

Increase the number of Baths

This is a typical case where a property gets functionally better when we enhance its specifications. Let us consider an example of a 2-storey 3-bedroom single garage home, which has 3 bedrooms at the upper level and has only 1 full bath. For such properties, if our upper floor plan allows us to add another full bath with a permit and if we implement that. This immediately does two things, firstly it enhances the usage of the property and pushes its market value upwards. With changes, the property is a 3-bedroom/2.5 Bath home. It is much more usable to a wide variety of buyer families/investors. They are willing to pay more for the same property, and this immediately increases its value. The second impact is that the change increases the property to attract more rent as now the tenant is willing to pay more for the same property. Due to the increase in rent potential now the investor community is better attracted to the property. 

Increase number of Bedrooms

This is a scenario where there is a potential to carve out an additional bedroom in the property. One of our clients purchased a detached 1,150 sq ft bungalow above grade which had only 2 bedrooms at the upper level, the owners had changed the original 3 bedrooms to a 2-bedroom setup to make them bigger. Our clients bought this specifically for this upside potential in an otherwise bigger home. They applied for building permits with the town and changed it back to a 3-bedroom layout and made it contemporary open concept plan. As you can see here, the old plan had a kitchen and that was changed to a bedroom and the huge living area in the newer plan now had an open-concept kitchen. This enhancement of one bedroom increased the appeal of the property and it impacted the market value positively as usability was enhanced.

Increase the Footprint of the property 

There are cases where the lot of a property is substantial enough that it allows you to increase the built area of the property. We recently had a similar instance where one of our excellent clients purchased a bungalow detached with had 3-bedroom 1 full bath at the upper level. They modified the plans to create a spacious ensuite for the primary bedroom with a complete walk-in closet, this addition of almost ~350 sq ft above grade, gave them an additional 350 sq ft of space in the basement as well. And it enhanced the usability of the property by leaps and bounds, for their living and also for future saleability. Almost, 700 plus sq. ft. of extra livable space was created. When lot is big and it allows as per zoning the ability to expand the current home, the new size increases its livability and appeal. These things are mostly possible in older bungalow-type dwellings where the lots are spacious both in terms of width and depth. This allows such lots to extend the current footprint of the dwelling and force appreciation. 

Kitchen Remodelling

A kitchen is another awesome way to increase the appeal of a property, as soon as you remodel and change the cabinetry, back splash and countertops of a kitchen, it immediately enhances the overall appeal and attraction. The kitchen is a sure centrepiece of any property and having an attractive Kitchen increases usability and gives an instant appreciation to the property. In my experience if the kitchen is updated in a home, it makes the sale process smoother and attracts best dollar for you as per the relevant market. 

The second Unit in the Basement

For major municipalities in the Greater Toronto Area, where the population is huge and there is a lot of rental demand. In such locations and in compliance with local zoning by-laws, if they allow for the creation of a second unit dwelling in the basement. It could be a very solid way to engage the upside potential of the dwelling. Here you can see the before/after plans for a typical basement and its evolution into a second-unit dwelling. This gives a possibility of an additional income stream from the lower unit and it serves as a mortgage helper for families buying the property for their own living. For investors, it gives them the benefit of dual cash-flows from upper and lower levels. Due to this increase in potential, the market price gets an immediate push with the creation of second units in the property.  There are also ADUs or additional unit dwellings which if permitted by the local municipality – planning and building departments, can add an upside potential. The discussion on ADUs would require a completed dedicated talk and we will create it in one of our upcoming episodes.

Curb Appeal Updates

This is a technique where you update the landscaping elements in the front/rear of the property and make them look more appealing. Or update the front façade of the home with stucco or stone chips and make it look more contemporary. Replace or paint the front door/garage doors to make them look appealing. These changes even though sound minor but they go a long way to help increase the value of a property when put on market. 

Here you got a glimpse of how the appreciation can be forced on a Real Estate asset and now let us discuss the requirements of such an endeavour, its something which is not made for everyone.

Capital Requirement

This form of appreciation is capital intensive, anything updates/additions you do to an asset require money to make it happen. This is the reason mostly you would see people not going for this route and just waiting for organic ‘market appreciation’  and building equity.

Under-Renting

During the time you do the updates/renovations to enhance the property, and specially when it is an investment property. It might mean that the property is vacant during the time of renovation. This is another financial loss due to the vacancy time. 

To round up our discussions on ‘Natural Appreciation’ and ‘Forced Appreciation’ I want to say that the ideal combination is a mix of both. If as a homeowner, you do some remodelling to enhance the appeal of assets and then also be in the market for the foreseeable future. It would reap the compound benefits of both forms of appreciation. And this is coming straight from my experience in dealing on ground and assisting our clients during the journey. 

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome back, friends! Today, we will start a two-part series exploring the basic forms of appreciation in real estate. We'll start with a market appreciation or natural appreciation, using real-life examples from the Greater Toronto Area to enrich our understanding of this topic.

Market appreciation refers to the organic growth a real estate asset undergoes over time, influenced purely by market forces. Let's examine the factors that impact the growth of an asset:

Inflation

Inflation is a primary driver of market appreciation in real estate. As the cost of services, goods, materials, and labour rises, so does the value of real estate assets. They become costlier to rebuild over time. This natural hedge against inflation makes real estate an excellent investment vehicle. As the perceived value of the asset is bound to rise with inflation dynamics. This reason alone make Real Estate a great investment vehicle as it provides an inbuilt inflation hedge.

Rental Rates

With the advent of time and inflation, the purchasing power of money decreases with time. The Rental rates increase and they are a second big reason which drives up the value of a Real Estate Asset. For an investor along with the monthly appreciation which happens in the asset due to inflation, they get to benefit from the rental payments to pay up their mortgage commitments. The principal repayment part in the mortgage increases their equity in the asset month over month. The increase in the rental prices, definitely helps the property appreciate.

Economic Growth

In good and progressing economies with the rise in inflation, there is also movement in terms of economic growth. New jobs and industry sectors are established pushing the economies which indirectly makes the Real Estate assets appreciate with the economic stimulus. More jobs mean higher income levels, which bolsters consumer confidence and ultimately leads to growth in the Real Estate sector.

Infrastructure Development

Properties in metro areas or regions anticipating significant infrastructure investment typically see greater market appreciation. Easy access to highways and public transit can significantly influence an area's growth compared to regions with less developed infrastructure. After spending almost a decade in real estate, I can confirm that 'location' is indeed critical to natural growth.

Population Growth

In a place like the Greater Toronto Area, there is a lot of population growth in the form of immigration which takes place in Canada. And GTA being the biggest job market in Canada, which makes a lot of net new people choose to live in such regions. This population growth is very simply put directly proportional to market appreciation. Another reason Location plays a key role is that population growth will be centred around in-demand locations where job opportunities and chances of growth for a newcomer are abundant.

Supply Constraints

Supply constraints are another reason price growth happens in Real Estate. If you observe major municipalities like Mississauga, Burlington, Richmond Hill and Brampton, their landscape doesn’t allow for more sub-divisions as already they are saturated with constructions to the boundary of these towns. When the land is saturated, and the market forces keep the area in demand. The progression of time makes the prices increase due to this saturation in the land development; as there is limited supply of new development. 

Government Policies and Interest Rates

Any government or municipality should be instrumental to make it easier for first-time home buyers and investors in form of tax breaks and incentives. These policies help sustain the buy/sell of the assets and increase their demand, which pushes the appreciation. Schemes like First-time home buyer RRSP Advantage allow prospective homeowners to leverage interest-free money from their RRSP savings. There are couple of other policies like the Land Transfer Tax Credit on the first home for $4,000, or the First time home buyer tax credit. All of these policies help flourish and promote home ownership. 

Federal bank's interest rate policy changes are another major factor. They can go either way, as you would have noticed the historically lower interest rates in the Covid-times pushed the prices way above, and then the tightening of borrowing rates in 2022/2023 also brought them down. The fine balance of interest rate policy changes and the market prices continue. In the short term, they are inversely proportional. However, in the longer term with the above other reasons we laid down, the inflationary pressures, drive up the asset prices in a growing economy.

Real World Case-Study

Let us now consider an example where we can understand how natural appreciation can come into play. For this case study, I have chosen detached 2-storey single garage dwellings in couple of municipalities across GTA that got sold in June of 2010. The next step is to determine their median sold price and then look at the median sold price for similar categories of properties in June of 2023.  I have chosen this 13-year duration as it covers the highs/lows we observed in the 2017 market and similar occurrences we observed in the first quarter of 2022. 

This tabulation highlights the power of Market Appreciation in the Greater Toronto Area, just by virtue of the growing population base here in the GTA, booming economic considerations in the last 13 years overall, and sustained employment opportunities, all these have a combined reflection on the market prices. 

Based on the data we can safely say that GTA had almost ~200% of natural appreciation due to these factors and after surviving two market downturns, and this is all organic growth and ‘market appreciation’ in action. In the next episode I will continue our discussion to the second type of appreciation which is ‘Forced Appreciation’ the factors involved there and how it takes place in Real Estate. It would be an interesting one and will completion our discussion on the topic of appreciation. 

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Hello friends, In the bustling world of real estate, where first impressions are not just important but everything, the role of professional photography in listing a property on the MLS cannot be overstated. Let's find out why it is like that.

First Impressions are the Key

First impressions are very important in Real Estate Selling and a lot of time I see amateur photos taken by smartphones with bad camera angles and inferior composition. The lighting is way off and gives a neutral to negative impression of the property. 

When you list a property for sale on the MLS system, our responsibility as a Seller is to get maximum traction on the listing in terms of showings. This is to make it a point that we have a decent count of broker showings who are working with sincere buyers. Because, unless a showing happens, there is no probability of them getting an offer on the table for purchase. 

The photos, videos and marketing content come at the front end of this cycle, where the photos result in credible buyers being excited about the property. As a result, they ask their brokers to reserve an appointment and arrange for a showing. The photoshoot plays a very important part in the scheme of things and is the first step to a successful sale.

Another reason I want to bring to your notice and it would resonate with you. Suppose the photo shoot for a listing is not done professionally. In this case, it would not attract quality and sincere buyers, at best it would attract less motivated buyers who are looking to buy with low-balling offers.

Good quality and professionally done photography would have a three-fold result. It would help you achieve the fair market value of your property, which you deserve. Secondly, it would help in smooth selling and the listing would not stay on the market and get stale. Lastly, it would help the listing to stand out from the competition, the higher the quality, the more attraction it will generate. Rest would totally depend on the prevailing market conditions, things which are in our control when listing a home should be taken care. 

Photography - The Right Way

The photography should be done by a professional photographer who would bring in their skills to do justice to the property and its fair representation. The ideal times for such shoots are during the morning or early evening hours, avoiding the harsh, overexposed light of midday. Prior to the shoot, staging and decluttering are essential steps to ensuring your home looks its absolute best.

Ensure to feature the highlights of the property in the photography, it could be the high-ceiling foyer feature, the skylight illuminating the upper landing space, or the expansive primary ensuite, or it could be the recent stone interlocking which you did in the driveway and backyard. The unique features like the in-ground pool in the backyard, spacious upper floor hallway with a character, premium tray ceilings or crown moulding works in the living room, landscaped backyard, the list goes endless. Take stock of the highlights of your property and ensure they are captured during the photo shoot. It would enhance the marketability of the property. 

In closing, photography in real estate is not merely an optional selling tool; it is a fundamental component that elevates the professionalism of your listing and enhances the overall selling experience. By ensuring your property is represented in the best possible light, you not only attract the right buyers but also set the stage for achieving the value your property truly deserves. Should you require assistance in navigating the complexities of real estate, our team is here to offer the unparalleled "Elixir" experience. Take care, and we look forward to connecting with you soon.

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome back to Elixir Talks! Today, we're debunking myths about the optimal timing for real estate transactions. The perennial question remains: when is the best time to buy or sell? Let’s go into detail about this with some perspective.

As general consumers, we aim to maximize gains and minimize losses, and real estate is no exception. Many hope to pinpoint the ideal time for their transaction to prosper.

‘Waiting for the bottom’

For buyers, the goal is often to 'wait for the bottom,' a mythical perfect moment when prices hit their lowest. However, pinpointing the market's bottom is challenging, influenced by numerous factors like borrowing rates, government policies, and global events. Real estate is fundamentally a long-term investment, not suited for those seeking quick exits.

Take the Greater Toronto Area, for example. After the interest rate hike at the start of March 2022, the market began to decline, hitting a low by fall 2022. Despite attractive pricing, buyers hesitated due to the high-interest rates and negative market sentiments. This trend persisted throughout 2023, only for the market to surge unexpectedly by early 2024. We saw credible traction and the market demonstrated a 7.9% month-over-month price increase in February 2024 in the Greater Toronto Area.

Over these past two years, we've secured excellent investments, yet a significant number of consumers awaited the elusive market bottom. In the later half of 2022 and the majority of 2023, there were a lot of good deals which we were able to get for our clients. We are now in the Spring of 2024, and the market's sudden movement and the return of competing offers illustrate that market timing is unpredictable. There have been no rate cuts announced so far, it's just the anticipation of that which has changed the market, this unpredictable behaviour of the market makes the case prudent that Real Estate should be a long-term investment. 

When is the Ideal Time to Buy?

The ideal time to purchase should align with your personal goals, financial readiness, and investment quality, focusing on a long-term horizon. Real estate typically appreciates over time, offering a shield against short-term market fluctuations.

Analysis paralysis can sideline potential buyers, fearing incorrect decisions and ultimately making none. This fear prevents taking timely action.

‘Sell at the peak’

Sellers often aim to 'sell at the peak,' hoping to pinpoint the market's highest point. Identifying this peak is as elusive as predicting the bottom, and missing the peak can lead to steep declines and "chasing the market," resulting in incremental price reductions insufficient to match market expectations.

I recall the peak of the last wave in late 2021 and early 2022 when many could have sold at a premium but waited for more, only to see the market crash, leading to missed opportunities and the burden of carrying costs due to higher borrowing costs.

Real estate cycles are normal. Focusing on your long-term goals rather than trying to time the market is key. Sudden policy or interest rate shifts can impact prices in short order, but with sound advice from a knowledgeable Realtor, you can navigate these waters successfully.

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

In the bustling real estate market of the Greater Toronto Area (GTA), a fascinating strategy often puzzles many: properties selling for significantly above the asking price within days. This phenomenon, known as underpricing, is a deliberate tactic to spark interest and competition among potential buyers. But why would anyone list their property below its fair market value? Let’s understand this strategy and its nuances for both sellers and buyers.

Understanding Fair Market Value

At the heart of real estate transactions lies the concept of Fair Market Value (FMV). FMV is the price a willing buyer pays and a willing seller accepts, free from undue pressure. Determining FMV involves a meticulous comparison of recently sold properties of similar type, style, age, specifications and location. The accuracy of FMV hinges on the number of comparables and their recency, providing a solid foundation for selling or buying decisions. This is a scientific process in which the broker objectively reviews each one of the Sold comparable with the subject property and comes up with the adjustments to arrive at the fair market value of the subject.

The Rationale Behind Underpricing

Underpricing is employed to generate buzz and increase property viewings. By listing below FMV and setting an Offer Presentation Date, sellers aim to attract multiple offers, creating a competitive bidding environment. This strategy not only ensures the property reaches FMV but can sometimes surpass it due to the urgency and competition it fosters among buyers.

Buyer Strategy in an Underpriced Property

Your strategy as a buyer should be to determine the Fair Market Value with your agent; and the more robust and analytical it is, the better it is for us. Once you have the fair value range, you should make sure that you are within that range only when you offer. One should not get emotional and overpay in any situation when buying Real Estate. Your offer amount should be very reasonable and within the dictates of fair market value based on the previous sales in the area, and nothing more. Even if this means you might not get the property. More will be coming your way in the next week and you will be fine. When as a Buyer you offer for a property, we should not care whether there is 1 offer or 10 offers on the property, the price we want to pay should be as per our fair market value analysis, and that's it. Just the fact that more buyers are queuing up to purchase, should not impact my offer price.

Seller Strategy in Underpricing

As a Seller, your agent has a big task at hand to ensure all buyer brokers who have come up with an offer are informed throughout the presentation on the happenings of the day. For sure only one of the offers will be successful, however, once the selection process is done by the Seller; all stakeholders should be informed so that they can update their buyers. Another important work would be to strategically set the pricing, it should be less but not too far from the fair market value. If the gap is too high, there could be a situation that offers land up way lower than the fair value and it would work as a detriment for the Seller. So, the skill would be to select just the right price, to make it low enough to generate more traffic.

In conclusion, I can say that this strategy of 'Underpricing' might work all right for a Seller, however, it needs a lot of careful planning to pitch it at the right price and not impact the ultimate selling price. Also, for the Buyers it would warrant having a good agent by the side, to ensure they navigate it well and do not overpay for the property. 

I hope this helps to clarify the subject of 'Underpricing'. You can reach out to us for any Real Estate goes you have in the Greater Toronto Area and we will be happy to help. We help our clients deal with residential, commercial as well as pre-construction opportunities. Take good care and talk to you soon!

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome everyone, today I am going to tell you the top 5 things you can do which are cost-effective and which will enhance the appeal of your listing. This will make the whole Home Selling Process more rewarding and smooth! Let's get started. 

Selling a home is a detailed task that, with the right preparation, can be immensely rewarding. Given that selling a home isn't an everyday occurrence, seizing the opportunity to maximize its value is key. Here are some budget-friendly updates that can truly make your property stand out:

Painting Your Home

Applying a fresh coat of paint in neutral tones is the most effective way to instantly freshen up your home, making it appear modern and well-cared-for. This eliminates any signs of wear and odours, offering a clean slate to potential buyers. I've noticed that properties we've painted before listing often exceed expectations in the final sale. Don't miss painting your front and garage doors as well; it's a small change that can dramatically boost curb appeal as buyers approach.

Smooth Ceilings

If your budget allows, transforming stippled or popcorn ceilings into smooth surfaces can add a luxurious feel to your property. This simple alteration can make the space feel larger and more refined, enhancing the overall appeal of your home. The likability of the property increases by leaps and bounds.

Lighting Updates

In the current market, especially in the Greater Toronto Area, adding pot lights to the main floor can significantly improve the attractiveness of your home. Bright, well-lit spaces are more inviting, which is particularly beneficial for older homes with smaller windows. Lighting plays a major role in the likability of a property. Additionally, updating light fixtures and switch plates to more modern designs can give your home a contemporary vibe. Consider installing under-cabinet LED lighting in the kitchen for an easy yet cost-effective enhancement.

Kitchen Refresh

While a full kitchen remodel might be beyond your budget, minor updates can make a big difference. Installing a new backsplash, updating cabinet hardware, and potentially replacing old appliances can revitalize your kitchen. These changes are affordable and can dramatically increase your kitchen's appeal. They become even more important if your kitchen is 15-20 years old. As part of your listing readiness, look for appliance pair deals during major sales events like Thanksgiving or Boxing Day.

Bathroom Makeover

Aiming for impactful yet affordable bathroom updates can contribute to a successful sale without breaking the bank. Simple changes like replacing the vanity or toilet can freshen up the space significantly, especially when combined with a new paint job I recommended earlier.

I hope you find these tips valuable for your home-selling journey. For the best guidance in Real Estate, reach out to our team here at Elixir. We're here to assist you in achieving the best possible outcome. I look forward to connecting with you soon!

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Navigating the pivotal decision in the real estate journey—whether to embark on buying a new home before selling your existing one or vice versa—poses a significant dilemma for many homeowners. This guide is designed to demystify the process, offering strategic insights for those contemplating their next move in the dynamic real estate market. Whether you're a move-up buyer or looking to relocate, understanding the nuances of Real Estate Strategy for Homeowners can make a substantial difference in your experience.

Aligning Your Real Estate Transactions

Achieving a seamless transition between selling your current property and stepping into your next home hinges on the synchronization of these transactions. This approach not only ensures a smoother move but also aligns with Optimizing Real Estate Transactions, a key consideration for anyone navigating the Real Estate Market Trends in 2024. Initiating the search for your next residence concurrently with preparing your current home for sale paves the way for timely, coordinated closings.

Seller's Market Strategies

In a seller's market, where demand outstrips supply, the wisdom often leans towards buying your next home first. This scenario, termed Navigating Seller's Market Real Estate, requires a keen understanding of Tips for Buying in a Seller's Market. Securing your next abode in such a competitive environment might take precedence, ensuring you're well-positioned to list your current property in a market ripe for swift sales.

Buyer's Market Considerations

Conversely, a buyer's market presents a different set of challenges and opportunities. Here, How to Sell in a Buyer's Market becomes a pivotal strategy. The abundance of available properties means selling your home might require more time and effort, underscoring the importance of Real Estate Selling Tips. Selling first in this context alleviates the pressure of owning two properties simultaneously, allowing for a more calculated purchase thereafter.

The Balanced Approach in a Neutral Market

For those facing a Neutral Market, the decision can swing either way. However, leaning towards selling first might offer a safety net, providing flexibility without the financial burden of juggling two mortgages. Real Estate Transition Tips in such a market often include the possibility of a rent-back agreement, offering a cushion to finalize your purchase and coordinate moving dates effectively.

The Foundation of Your Decision

Embarking on both the buying and selling journey simultaneously offers a strategic advantage, granting you the flexibility to navigate Real Estate decision-making with confidence. Whether you're Buying a Home in Ontario or Selling Your Home in Mississauga, starting early facilitates a smoother transition, aligning with Home Buying Strategies and Home Selling Strategies tailored to your local market dynamics.

In conclusion, navigating whether to buy or sell first requires a nuanced understanding of the market and a strategic approach to your real estate transactions. By considering the insights and strategies outlined here, you're better equipped to make informed decisions, ensuring a smoother transition to your next home. For a deeper exploration of these concepts, I invite you to have a deep conversation with us, where we can help to make these critical real estate decisions.

Welcome, friends. Imagine you are in a downtown area and come across a stunning Victorian home with exceptional curb appeal, transporting you back in time. The property displays a 'For Sale' sign. In today's talk, we'll discuss what it takes to buy a heritage property and the considerations involved in selling one.

Buying and selling a heritage property involves a unique set of considerations. A historically designated property contributes to the cultural heritage value and is recognized for its cultural, architectural, or historical significance.

What is a Heritage Property?

A property is deemed to have heritage value if it contributes to an understanding of community or culture, has design value due to craft skills, is an early example of a style or construction method, or is associated with an event or person of historical significance. It may also have contextual value.

These designations help preserve history and ensure that future generations can witness and learn from the past, retaining the unique character and face of a town.

Heritage homes are generally designated at the municipal level as 'Special Heritage Interest'. A local heritage register will list properties considered culturally valuable. For example, the City of Mississauga has around 300 designated properties, the Town of Caledon about 165, and the City of Oakville roughly 170 heritage properties.

Type of Restrictions

These properties come with restrictions to preserve their historical integrity, often concerning the type and extent of renovations, mostly on the building's exterior. This includes the colors you can paint the exterior and the style of windows you can install.

Since the government aims to preserve the esthetics, it may require the use of non-standard materials, translating to marginally higher maintenance costs for the exterior, but then the municipalities generally provide grants for updates, more about grants later. The extent of renovations and limitations are governed by local municipal by-laws. It's prudent to do thorough due diligence when you sign on the dotted line.

City Approval for Changes

Typically, any exterior updates or changes to the heritage attributes of a building require a permit from the city. Changes to windows or doors, roofing materials, facade replacement, the positioning of exterior heating and cooling equipment, changes in masonry, significant landscape alterations, chimney additions or removals, and fence replacements all fall under this category.

However, actions like re-roofing with the same material, routine maintenance of gutters, downspouts, minor paint color changes, and internal modifications usually don't require a permit. It’s a myth that if I need to change light fixtures, interior painting or wall paper in the property it won’t be allowed, the truth is that for the most part interior elements are not included in designations. Primarily two reasons as they are difficult to monitor and secondly is the issue of privacy.

Benefits of Historic Properties

Heritage Grant Programs

Most municipalities allocate funds for heritage grants to help owners conserve exteriors and maintain heritage characteristics. These grants can be leveraged if available. [Grant photos in the background]

Municipal grants typically don't cover non-heritage attributes or property additions, and interior work generally falls outside government grants. If considering a heritage asset purchase, check your local municipal level grant programs for support. Often, the town requires owners to match the grants used for maintenance.

Property Taxes

Some municipalities offer property tax relief to heritage homeowners, ranging between 10-40%, depending on their budget.

Insurance Premiums

Insurance premiums shouldn't increase due to heritage designation. While premiums may be higher due to the building's age, the designation itself doesn't warrant additional requirements from the insurer and shouldn't impact premiums.

Lets focus on certain pointers if you are selling a historical property,

Effective Marketing

It's important to highlight the property's historical significance and unique features. Effective marketing for a historic home should detail the story and characters which property presents, appealing to buyers who appreciate heritage.

Disclosure Requirements

Full disclosure of heritage designation and restrictions is critical for transparency and legal clarity. As a buyer, it's wise to check the town’s heritage register to determine its actual status.

There is another myth which circulates that if I own a heritage property, it would mean I will have to restore my property. The truth is that by having a heritage designation doesn’t at all mean that the owner has to restore, the status is given on the as-is state of the property.

To recap, historic properties are an excellent asset to own, as we've seen. It’s a myth that they have unusually higher maintenance, its same as any other old property and how you would take care of them. They come with their own restrictions and advantages and are more heavy on the advantages side. It all depends on your personal goals and aspirations. If it aligns with them, by all means, go for it. Hope you enjoyed this talk. If you have any real estate queries, our dedicated team here at Elixir will be glad to assist. Take good care and talk to you soon!

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome, friends! Today, I want to shed light on a topic that's often surrounded by misconceptions about selling property in the winter. There are numerous theories floating around, and I'm here to demystify them for you.

Conventional wisdom suggests that the winter market is sluggish, making it an inopportune time to sell. This belief prompts many sellers to steer clear of the market during this season, partly because the holiday festivities and vacations keep both sellers and buyers preoccupied. However, it's precisely this time when opportunities bloom due to a significant decrease in market inventory. The buyers who are out house-hunting are usually highly motivated and ready to make a decision if they find a property that captures their interest.

In the winter, you'll encounter buyers who are determined and prepared to face the cold in search of their perfect home. This season also brings the advantage of requiring less maintenance of your property's exteriors, such as the front and rear yards.

Additionally, there's a segment of buyers aiming to make a purchase before the year's end for tax benefits. The winter market may have fewer buyers, but those who are looking are serious about their commitment.

The holiday season also plays a role in decision-making. The prospect of beginning anew in a different home resonates strongly with buyers during this time. Plus, the holidays often provide extra time for buyers to engage in the home reviewing process.

Now that we've established that selling in winter is indeed viable, let's go over a few tips to ensure a smooth and successful sale should you choose to proceed.

Curb Appeal

With your yard in hibernation, curb appeal is vital. Enhance it with festive decorations and lighting to mirror the holiday spirit—this not only increases appeal but also adds warmth to your home's exterior. Ensure that any recent snowfall has been cleared from driveways and walkways, and apply salt to prevent ice build-up.

Comfortable Temperature

  A fireplace can be a focal point in creating a warm and inviting atmosphere. Make sure your home is comfortably heated during showings. A chilly home can be off-putting, whereas a cozy and warm environment is always welcoming.

Natural Light

Schedule showings during daylight to capitalize on natural light, making your property appear more spacious and attractive. For evening viewings, ensure that all the lighting is switched on to maintain that inviting glow.

Winter Readiness

Address any drafty windows and update insulation where necessary, especially in older homes. Highlighting recent upgrades like a new furnace, windows, or attic insulation in your marketing equipment can demonstrate the energy efficiency of your home.

High-Quality Photography

With the absence of greenery, high-quality photos become even more critical. They can make your listing stand out and attract more viewers. Utilize the winter landscape to its fullest by capturing the beauty of your property against the backdrop of a fresh snowfall.

Thank you for joining me today. Please share this with colleagues and friends considering a sale. For any real estate inquiries, reach out to our team here at Elixir Real Estate for the best advice. Take care and talk to you soon!

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome friends, to a brand-new topic which I wanted to discuss with you today and that is ‘Assignment Sales’. Why and how assignment sale works for both buyers and sellers.

As you, would have noted the market, has been mostly inclined to buyers for over a year now, things towards dramatically changed and since July 2022 market has sort of plateaued.  In such markets, the demand becomes low and the supply increases. 

Speaking of Assignment Sales, it was traditionally a clause that the purchaser takes when buying a pre-construction home from a builder. This clause is meant to assign your contractual obligation of purchase to another buyer or assignee. This provision is placed in the original Agreement of Purchase and Sale to deal with any change in situation for the purchaser, the changes could be financial, logistical or personal which may require the consumer to assign his right to purchase at the agreed amount to a new willing buyer. It could be that the original buyer’s family situation or work location changed during the construction time, the location of the purchase doesn’t work anymore for them and they are looking for an assignment.

This process of assignment is also called paper flipping, as in an Assignment Sale the new purchaser is not able to see the property in person and is buying based on the specifications, features and floor plan available on the paper. The assignor or the original purchaser provides the original Agreement of Purchase and Sale to the assignee or the new buyer, this needs to be vetted by the assignee's solicitor.

Let us discuss point by point why an assignment works for a Seller:

Transfer of obligation - The Seller (Assignor) is able to transfer his contractual obligation to perform the final closing or completion of the property and arrange for the necessary mortgage in order to complete the transaction and arrange the funds. They can get away with arranging the necessary mortgage to complete the transaction.

Recovery of deposit - The original buyer can reclaim the deposit made to the builder, possibly with a premium if the market conditions are favorable.

Land Transfer Tax - The Seller is not paying the land transfer tax which is due on the closing, this is in fact paid by the new buyer or the assignee as its due only on the closing. 

Utility Connection Charges - For the new home there are some utility connection charges, for the hydro, water, gas services, if applicable to the unit. This cost is transferred to the purchaser upon completion, in assignment the assignee pays these costs. 

Development Charges - The development charges are generally capped, these are the cost which are in-built into the original purchase price. However, there are situations when the municipality requires more from the builder to cover up the development levies since the time original permit was issued. These costs are capped in the original agreement, but would mean that some of it till the capping limit might be required by the new assignee to chip in at the time of completion. 

Now, let's explore the perks for buyers:

Reduced Purchase Price – Generally since the assignment purchase is done on paper, it would always be negotiated at a price slightly lower than the price of a similar product in the neighborhood. By product, I mean to say similar property type and specifications. This price benefit is due to the fact that the assignee is willing to commit to the purchase just by looking at the specifications, and plans on the paper. The other reason is that the assignee is saving the seller from their contractual obligation to the builder, so they have the upper hand in the negotiation to get it at a favourable price to them.

Less Waiting Period – In the pre-construction world there is a waiting time involved from the time you ink the purchase with the builder to the final delivery. It varies based on the fact whether the purchase is a high-rise condo or a low-rise freehold dwelling. In the assignment scenario, these sales typically occur closer towards the occupancy, and this is the reason that the assignee or the new purchaser experiences minimal waiting time to get into their new home.  

Brand New Property – Assignments can happen for resale contracts as well but they are not as commonplace as how they are with pre-construction world. The assignee or the new buyer receives a brand new and never lived in property.

I should highlight here that they require lot of challenges and restrictions as well for both Seller and Buyer. But, if navigated well it presents as an opportunity for all parties involved. 

Let me highlight some pitfalls as well for assignments. 

Ontario New Housing Rebate - The new Buyer or Assignee should have enough cash backup as there could be a HST component which they might need to cough up during the completion, generally the builders recover it from the government based on the undertaking if the buyer is using the dwelling as their own residence. However, in assignments sometimes the builders would want this Ontario Housing rebate amount from the assignee and in that case the new Buyer would need to come up with this extra cash at the time of completion. The maximum Ontario new housing rebate amount that is available is $24,000. The assignee would then be required to claim it back from the CRA, upon occupation.

Advertising Restrictions - For the Sellers its not easy to expose or list the assignment opportunity on platforms like MLS, the majority builders would have restrictions which would be specified in their original Agreement of Purchase and Sale. Advertising of any assignment opportunity would require consent from the builder and might limit the platforms available to the Seller, in order to get proper exposure.

Too close to the finish line – There would be some situations where you are coming too close to the final closing date and builders might not provide the approval for the assignment as it is too close to the finish line. The builders would not want to introduce a new assignee into the picture when the closing is short. So, in order to navigate the assignment process it needs to be done well in time for everything to go smoothly.

Tax Implications – There would be tax implications which should be discussed by the Assignor with their accountant as any profits if you realize during the process of assignment would be liable for taxes and rather considered as business income. The CRA would generally not considered the investment as a capital property, and would not allow them to have capital gain exemption unless they are able to satisfy the CRA with their personal situation on why they needed to assign. This needs to be discussed with your accountant. 

Assignment Fees – This is another fees which the assignor would need to pay to the builder to get the paperwork done to transfer their rights to the new purchaser. This cost is outlined in the original agreement of purchase and sale between the original purchaser and the builder.

In a nutshell assignment sale works on various levels for both parties, however, needs to be executed carefully with these pointers consulted with legal and financial experts to have the necessary peace of mind and be prepared for a smooth outcome.

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

We're going to explore why putting in a bit of sweat equity in listing your home is not just important but can make all the difference in getting the best price your property truly deserves. So, let's jump right in.

Take Emotions out of the Equation

When you decide to put your property on the market, it's crucial to see it through the eyes of a neutral buyer. It's common to become emotionally attached to your home, but this emotional connection can sometimes blind us to necessary updates that could make it more appealing to potential buyers.

It's essential to present your property as a value investment to prospective buyers. Little things that we might overlook, like a missing window crank, a torn mosquito mesh, a fused light bulb in the vanity, or a small patch on the ceiling from a past water leak repair, dirty carpet on the stairs and upper hallway etc can stand out to buyers. These seemingly minor issues, which we might have grown used to, can give the impression that the property hasn't been well-maintained. Taking care of these details can significantly enhance your property's appeal without breaking the bank.

No Detail is Too Small

Don't underestimate the power of small details. Even if you've addressed most issues, missing mildew stains in window corners, dirty exhaust fans in the bath or ignored spaces like the utility room can raise red flags for buyers. Pay attention to every nook and corner to ensure your property presents well. I personally, when I review properties before listing, the benchmark I use is that the prospect's eyes should not stop anywhere on any deficiency. 

You Don't Get a 2nd Chance

As sellers, we don't list properties every day, so it's crucial to invest time and effort in presenting our homes in the best possible light. First impressions matter, and once a prospect forms a negative opinion, it can be challenging to change their perception. Make sure you seize every opportunity to showcase your property positively.

Exteriors Matter Equally

While it's tempting to focus on the interior, don't neglect the exterior and landscaping. The front yard and driveway are the first things potential buyers see. A well-maintained exterior creates a positive initial impression. Consider adding a few flower baskets (weather permitting), clearing driveways of snow during winter, and keeping front porch lights on for evening showings.

Controlled Temperature 

In regions like Greater Toronto, where temperatures can be extreme, controlling the indoor climate is crucial. In winter, ensure the furnace is in good condition, and set the thermostat to a comfortable temperature of 21-23 degrees. In summer, have the air conditioner running at an inviting temperature. A comfortable environment during showings can increase the chances of buyers liking your property.

Neutral Odours 

Lastly, ensure your home smells neutral. Over time, houses develop specific odors due to our food habits and pets. Use odor-cutting solutions like Febreze to maintain a neutral scent. You can also consider professional duct cleaning to eliminate majority of odors. For any special and elaborate meals you like, see if you can postpone them for couple weeks till the time you are active on showings, or if really needed, prepare those in the night. 

These are just some of the steps you, as a seller, can take to ensure your property shines in the eyes of prospective buyers. Remember, every effort you put in will increase the credibility and value of your property. 

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.