The Mitten Real Estate Team

Introduction:

At Mitten Real Estate Team we are pleased to bring you this week's Blog article which  focuses on the typical expenses that you can expect when you are buying or selling your home.  We are bringing this article in the hopes that it will be a useful resource to both our current and potential clients.  The information we are providing is part of our  “Buyer Assistance Program”  and has been designed, after years of successfully assisting people to find and acquire the perfect property for them and to assist our clients in achieving thier real estate goals.  We will also provide information on the expenses that sellers can expect which derived from our "Seller's Assistance Program", which seeks to educate sellers on all the cost of selling.

Buyer Expenses:

One of the things which is important to buyers is that they know what the typical expenses involved in a purchase will be.  Accordingly we have put together the following outline of typical expenses which one would see in a typical purchase in the area which we service. It should be noted that each transaction is unique and may carry with it unique expenses and in order to ensure that you are fully apprised of all expense on your transaction you should work with a reputable real estate agent that you trust.

1.)     Home inspection:                                   $450.00 - $900.00

A Home inspection usually occurs after a buyer puts an accepted offer on a home, they will have the home inspected by a qualified home inspect to determine if there are any problems with the home before the buyer removes the subjects on thier offer.  This is very important in protecting buyers from hidden problems with a home.

2.)         Appraisal:                                                $150.00 - $400.00

An appraisal of the homes value is often times required by a bank before they will provide financing to the buyer, some banks do provide the appraisal for free while others may require potential buyers to pay for the appraisal.

3.)         Site Survey:                                            $400.00 - $600.00

A Site Survey essentailly shows the position of the buildings on the property to ensure that any buildings are infact within the property boundaries and are not over any property lines. A  Site Survey may be required as a condition of financing, alternativley title insurance can often times be obtained.  In Some cases there may already be a fairly recent site surey for a home however it is not always avalible in which ase a buyer may have to pay to have one produced.

4.)         Property Transfer Tax:                          1% on the first $200,000 and 2% there-after.

The Property Transfer Tax is a government imposed tax which buyers must pay when they purchase real estate.  There are certain exemptions that you may qualify for, so please contact us if you are thinking of buying or selling and we can disscus if you qualify for any exemptions.

5.)         Legal Fees:                                             $750.00 - $1500.00

6.)         Property Tax Adjustment:              Cost is dependant on the property taxes for the property.

The Property tax adjustment results from a monitary adjustment based on the amount of time the buyer and seller own the property during the purchase year.  

For Example if the buyer took possesion of the property on October 31, they would have to repay the seller for the remaining two months worth of property taxes which the seller would have already paid to the municipality.  Conversly. if the sale took place in march the seller would have to repay the buyer for property taxes due later in the year (that cover the whole year) that have not yet been paid by the seller.

7.)       Septic Inspection:                                       $600.00- $1,000.00

A Septic inspection is only required if the home uses a septic system to treat sewage.  If the home does use a septic system it is important to have the septic system inspected by a qualified septic inspector to insure it is in good working order (a new septic system can cost in excess of $20,000 - $30,000) or if repairs are required.

8.)        Water Test:                                                    $300.00 - $500.00                                                       

A Water Test is only usually required if the home is using a well.   A water Test is usually taken by taking a sample of the water from a property to a lab where they determine if it meets the standards set for drinking water.

9.)     Home Insurance:                                Cost is dependant on the replacement value of the home 

10.)   GST:                                                     Not usually payable on used residetial real estate 

GST is payable on all real estate,  EXCEPT USED RESIDENTIAL REAL ESTATE.  However thier are a few exceptions to this exemption.     This means that purchasers of bare land and new construction homes are usually required to pay GST while most purchasers of used residential real estate (for personal use) are not usually required to pay GST.

Seller Expenses:

In Addition to thier being costs associated with buying real estate there are also cost associated with selling real estate.  the following list should provide a good idea of what costs you can expect to incur when selling real estate.

1.)  Real Estate Fees:                                          Typicall 7% on first 100,000 and 2.5% there-after.

The real estate fees are split between the buyer's agent and the seller's agent.  The Real Estate Fees cover the cost of determining the value of the home, Marketing and advertising, MLS fees, strata documents,advise on sale preprations, negotiations, real estate agents time, equipment and signs, etc...  Real Estate fees are usually only payable if your home is suscessfully sold.

2.)  Legal Fees:                                                  $500.00 - $600.00

3.)  Prepayment Penalty for Mortgage:               Depends on mortgage terms.

A Pre-Payment Penalty on a mortgage cost depends on the terms of the mortgage.  Often times a bank may make a seller pay a penalty for paying off the mortgage early. In some case the bank may wave this penalty but in other cases they may require a seler to pay it.

4.) Property Tax Adjustment:                       Depends on time of prucahse and cost of property taxes

As was discussed in the buyers expenses section, this is a monitary adjustment based on the amount of time the buyer and seller own the property during the purchase year.  

For Example if the buyer took possesion of the property on October 31, they would have to repay the seller for the remaining two months worth of property taxes which the seller would have already paid to the municipality.  Conversly if the sale took place in march the seller would have to repay the buyer for property taxes due later in the year (that cover the whole year) that have not yet been paid by the seller.

Conclusion:

As always if you have any questions about this article or any other real estate realted questions please feel free to contact us we would be happy to assist you  we can be contacted through this website or you can call us directly at 604-882-8384.

 Additionally to be sure you are fully and correctly informed of all of the cost realted to your purchase and sale and to recieve the best quality service please employ us to assist you, we would be honored to assist you with your next home purchase or sale.

Sincerely,

Doug, Bonnie and David Mitten

(Mitten Real Estate Team)

Introduction:

This week for our latest blog article we would like to give you some advice on how to keep you home safe while you are away or on vaction.  Since theft and vandlism is something that every home owner worries about while they are away we hope this article will be a useful tool in helping to keep you home safe while you are away.

Idea #1:  Suspend newspaper delivery and arrange for someone to pick up your mail, this will prevent mail or newspapers from stacking up, which gives aways that you are not home.

Idea #2:  Ensure all doors and windows are locked - for sliding glass doors, use locks specially designed to prevent the door from being lifted out of its track.

Home Window Lock

Idea #3: Use timers to turn lights, and possibly the TV or radio, on/off during the day and night.

Home Light Timer

Idea #4:   Have someone cut/water the lawn if you plan to be away for more than a week.

Idea #5:  Turn the volume down on the telephone so anyone outside can't hear it ringing for extended periods.

Idea #6:  Leave a generic message on your answering machine - never say that you are away on vaction.

Idea #7:  Secure all tools and ladders so they can't be used to break into your home.

Idea #8:  Trim shrubbery around doors and windows so there's nothing to conceal the actions of would-be intruders.

Idea #9:   Leave blinds or curtains in normal position - don't close them completely.

Idea #10:  Consider installing security bars on basement windows, especially those shielded from view or in the back of the house.

Idea #11:  Close and lock the garage door. You might even want to unplug your electric garage door opener and put a lock in the track of the garage door to prevent it from being forced open.

Garage Door Lock

Idea #12:  Remove anything of extreme value and put it in a safe place while you're gone.

Idea #13:  Make sure your home insurance doesn't expire while you're out of town and that it provides adequate coverage for your belongings.

Idea #14:  Tell someone where you're going, how to reach you in case of an emergency and when you'll be back.

Idea #15:  Ask a reliable neighbour to 'keep an eye' on your home and report anything suspicious to police.

Idea #16: Consider asking someone you trust to "house sit", especially if you plan to be away for an extended period of time.   If you notice signs of forced entry when you return home, do not go inside! Call the police from your cell phone or a neighbour's house.  Do not enter the house until you know there is no one hidding inside as many criminals may have weapons and be very damgerous or even mentally un-stable so it is best to avoid any chances of a direct confict.

Conclusion:

To Conclude we hope these ideas will help you keep you home safe while you are away on vacation.  If you have any real estate questions or are thinking of buying or selling your home we would be please to assist you.  You can contact us through this site or call us at 604-882-8384.

Sincerely,

Doug, Bonnie and David Mitten

(Mitten Real Estate Team)

Introduction:

This week at Mitten Real Estate Team we are pleased to bring you a market update on Fort Langley.  This article was created as part of our ongoing market research and we hope it will be informative to both our current and prospective clients.  If you have any questions please feel free to ask!

Community Description:

Fort Langley is Langley's oldest community and is the Birth Place of British Columbia were the original decloration creating british columbia as a british colony was signed.  For a short Time it was also the capital of the new territory.  The Current Fort is about 4km up stream from the orriginal location.

Fort Langley National Historic Site

Present Day Fort Langley is a unique community that maintains its 'small town' feel and combines it with beautiful scenery and views of the Fraser river.  Building codes have also encouraged the area to have a unique heritage look.  In addition Fort Langley is host to several interesting festivals each year as well as weekly farmers markets for most of the year making it a truly unique place to live.

Fort Langley Hall 

Acreages:

During September 2014 Ther were 2 sales of acreages which was up from 1 sale in september 2013. The prices increased 8.4% for acreages in Fort Langle which is strong increase however the average days on the market required to sell saw a notable increase.  Thus is would seem that although prices have risen that they may level off somewhat near term based on this data.

Single Family Detached Homes:

In september there were 2 sales of single family detached homes in Fort Langley, which was down compared to 4 sales in September 2013.  However prices increased 6.33% from one year ago, additionally the days on the market required to sell also saw a notable decrease.  This data would suggest to us that although prices saw a solid increase over the last year if other factors stay the same prices mat continue to increase in ths segment as demand for this type of homes is strong and supply continues to be limited leading to price increases.

Townhomes:

Townhomes are still a fairly small market segment in Fort Langley, most of the townhomes are part of the 'New'  'Bedford Landing' area of the fort.  Unfortunatly there were no sales of townhomes in september 2013 which meant we could not analyze current market compared to one year ago.  However in the chart below is a summary of the market activity in the segment for Seotember 2014:

Apartments:

Apartments are still a fairly small market segment in Fort Langley, most of the Apartments are part of the 'New'  'Bedford Landing' area of the fort.  Unfortunatly there were no sales of townhomes in September 2013 which meant we could not analyze current market compared to one year ago.  However in the chart below is a summary of the market activity in the segment for Seotember 2014:

This week at Mitten Real Estate Team we would like to bring you the latest report on the Fraser Valley Housing market, produced by the Fraser Valley Real Estate Board.

SURREY, BC – The Fraser Valley Real Estate Board processed 1,419 sales on its Multiple Listing Service (MLS®) in
September, an increase of 25 per cent compared to the 1,131 sales during the same month last year, and an
increase of 9 per cent compared to sales in August.

The Board’s president, says, “Similar to this past summer, this is the busiest September we’ve had
since 2009 with sales of all property types combined out‐performing the 10‐year average by 13 per cent.
“Residentially, the single family detached home remains the preferred property type. From North Delta to Mission,
sales increased in every Fraser Valley community compared to last year with the price range of $400,000 to
$699,999 garnering almost sixty per cent of our total detached market.”

New listing activity was also brisk in September with the Board’s MLS® receiving 2,758 new listings, an increase of
16 per cent compared to last year, taking the total number of active listings by month‐end to 9,156, a decrease of
7 per cent compared to September 2013.

Werger adds, “An important factor underlying the housing market is consumer confidence and in our region that
confidence has been bolstered by the stability of home prices. Since March, the benchmark price of our three main
residential property types combined has remained flat, increasing by only 0.6 per cent.

“Long‐term, the value of single family detached homes has increased at a faster pace than it has for attached
properties, particularly in areas such as Surrey, White Rock, Langley and Abbotsford where we’ve seen many new
townhome and condo developments. The supply of new inventory has affected the price of resale product.”
The MLS® Home Price Index (MLS® HPI) benchmark price of a detached home in September was $569,800; an
increase of 3.1 per cent compared to September 2013, when it was $552,900. In the last six months, the
benchmark price of a detached home has increased by 1.1 per cent.

In September, the MLS® HPI benchmark price of Fraser Valley townhouses was $299,600; an increase of 1.1 per
cent compared to $296,200 in September of last year, and in the last six months has increased by 0.8 per cent. The
benchmark price of apartments decreased year‐over‐year by 4.7 per cent, going from $203,100 in September 2013
to $193,600 last month, and has decreased by 0.9 per cent in the last six months.

As Always if you have any questions about this article or any other real estate realted questions please feel free to contact us we would be happy to assist you.  We can be contacted through this site or you can call us directly at 604-882-8384.   Please check back next week to see our latest analysis of another local real estate market in the Fraser Valley.

Sincerely,

Doug Bonnie and David Mitten.

(Mitten Real Estate Team.)

Introduction:

As time marches on our lives change and so to do our housing needs.  Usually when we are younger we strive for a larger home/ property with more space and possibilities.   Eventually as you get older that wonderful large home that you enjoyed for many years may become too large to suit your needs and the maintance and upkeep of you home may begin to seem like to large a task.

 Additionally, after retirement you may choose to travel and not want to have to worry about who will take care of your home when you are away.  Another consideration is that although we all hope you be in good health even in our latter years the reality is even if we stay in decent health eventually things such as stairs and uneven surfaces can become a problem for older home owners.   That’s why for our Blog article this week we would like to talk about housing options for seniors.

Over the years we have helped many seniors through the process of planning out their retirement housing needs so we are writing this short article as a service to our clients and potential clients who are considering what sort of housing they need in their golden years.

Deciding on the housing option that will suit you best in your golden years is often a process.   This process may take several months or even years.  In the end what is important is that you are able to choose the option that best suits your health, life style and financial needs.

What is your current Home worth?

There are a number of factors that go into the process of choosing your retirement housing options.  The first such consideration is financial planning.  To start you should determine is what your current home worth.  This is an important first step because for many people a good portion of their retirement wealth is tied to the value of their home and as a result the value of their home determines the housing options available to them.  If you are would like to determine the value of your current home we would be happy to assist you even if you are just planning for the future and are not ready to sell yet.

Determining Your Lifestyle requirements:

The next part of the process planning your retirement housing needs is to look at your lifestyle requirements and their associated costs. For example:

1.)    What type of care will you need and what is the cost of that care?

2.)    What will your retirement income be or need to be?

3.)    Estate Planning: do you want to leave money/assets to your heirs?

4.)    Where do you want to live?  Is there an area that is close to family you would prefer to live in?

After answering all of these questions you will be in a position to examine your housing options.  So what are your options?

Option 1: Adult oriented complex/ community

A typical 1 level townhome in an adult oriented community

An Adult Oriented Apartment Building

If your health is fairly good and you may want to consider an adult oriented apartment or townhouse complex. 

  There are a number of nice gated adult oriented communities in in Langley that offer senior friendly townhomes.  Additionally there are also some nice adult oriented apartment buildings that are certainly an option for seniors.   

An important thing to consider when you are looking at this option is whether or not you require care assistance (such as a nurse or care aid) on a daily or weekly basis.  There are certainly government programs that can provide you with a very decent amount of care/assistance as well as some private companies that also offer care aids.  Generally the cost of government provided in-home care is based on your income, meaning of you have a large income you will pay more than if you have a smaller income.

If you have mobility of other health challenges there are other options besides an adult oriented townhome or apartment.  The next option is an independent living community:

Option 2: Independent Living Community

An example of an independent living community

Independent living communities are available both with and without care assistance.   Independent living facilities offer apartments, along with meals or meal plans, laundry, housekeeping, concierge services, handyman services and usually the option for care on a pay for use basis.  Most are based on a rental for the apartment; however, some also offer the opportunity for ownership of the apartment.

If you think this option could be for you the next question is, should you rent or own an apartment in an independent living facility?  Here are some things you should to consider:

Renting:

Some advantages of renting…

-With independent housing your housing is integrated with a number of other factors such as: food, staff, entertainment, care and more.  The benefit to renting therefore, is that you will have the opportunity of determining whether the overall experience is to your satisfaction prior to your final decision.  With this in mind I would highly recommend renting at least for a while before making your final decision.

-The benefit to renting on an ongoing basis is simply that although the housing is what it is, staff can change and along with the changes so can the care and the food.  Renting allows you the flexibility to switch to other facilities should you decide you are no longer happy.

-Bear in mind that it has been the experience of many of our clients that have gone through this it takes at least six months to get used to a facility.  Also bear in mind that no facility is perfect and often if you are not happy with something about the facility you are in that there are often benefits to working with staff to correct it rather than simply changing.

Some disadvantages of renting…

-The disadvantage to ongoing rent is that typically rents increase overtime and therefore your housing costs can go up as does your need for additional income.

-The other thing to consider with renting on an ongoing basis is that the income necessary to pay the rent may be taxable depending on your tax situation whereas with ownership providing you purchase without a mortgage you will need less income to sustain your living expenses and therefore your tax burden may be lower.  When we were exploring this for our parents giving consideration to all of the factors they felt it was best for them to rent on an ongoing basis and we have found fianncial planners to be very helpful in working together with our accountants to structure a solution which mitigated the taxes payable on the income necessary to pay for their living expenses.

Ownership:

Some advantages of ownership are…

-Ownership allows you to fix your housing costs.  The cost of food and care may still go up but the costs of the housing portion of your requirements is fixed and again if you own clear title the need for additional income and the tax burdens associated with it are a non-issue.

-The other benefit for ownership is that at the end of when you will be staying in this location you or your families owns the property and are able to sell the property at whatever the current market value is at that time.  An accountant or financial planner can help you determine whether there are greater benefits in investing in the housing or other investments that may yield a greater return if this is the only decision in determining whether to buy or rent.

Some disadvantages of ownership are…

The disadvantage to ownership is the lack of flexibility.  This disadvantage goes both to the choice of the facility you will be moving to originally as well as to the ease of moving should you not be happy with some facet of your living situation.  Not all independent living communities offer the option to purchase and therefore if one desires the option to purchase it does limit the independent living communities that one can consider.

Whether you decide to rent or own in an independent living facility there are a number of such facilities in the Fraser valley to choose from.

If you feel you may require more care or assistance than either of these options can provide there is another option which is a full care facility.

Option 3: Full Care Facility

An expample of a full care facility

Full care facilities normally provide a room as well as the food and care on an all-inclusive basis.  This decision is normally predicated on the care requirements of the individual.  There are certainly a few options in the Fraser Valley to choose from in this category.

Downsizing Belongings:

Once you have determined the housing option that will best suit your needs, the next step is usually to downsize in to a smaller home that can serve your current needs.  There are a number of things to consider when you are downsizing such as…

Can you downsize yourself?

Can you get help from:

1.)    Family

2.)    Church or support group

3.)    Professional organizer

It is also important to realize that when you are downsizing you will not just be moving your furniture and possessions, you will have to decide which you can/ want to keep and what you must give away or throw out since your new home will likely not have space for all of your current belongings.  If this is an area you think you will need to hire a professional we can put you in touch with professional organizers that specialize in helping others downsize.

Choosing Where to Relocate

Determining where to relocate often involves giving consideration to:

A.            Near family or friends

B.            Near support community

C.            Near doctor or other professionals

What Are Your Goals?

The goal is usually to free up equity from your home to provide a simpler life, with your equity

 providing both a place to live and income. Additionally, most people desire to move towards a more maintenance free life with options for future care if not immediate care. 

Cooperation and professional advise is very important:

This transition often involves working together with family and professionals such as a lawyer, investment counselor/bank, doctors, accountant, realtor and care facilities and support workers to determine the income requirements, formulate a plan, and implement it.  The important thing is that you determine what your needs and goals are and then ask each type of professional how you can best accomplish your desired results. 

Conclusion:

We have helped many seniors to accomplish their retirement housing needs over the years and if you require any assistance in this process please let us know we would be happy to assist you with the real estate part of determining you retirement housing needs. We would also be happy to put you in touch with other professionals who can help with areas such as downsizing and organizing or estate planning etc…   Whatever you retirement needs are we will to help you accomplish your goals.  Even of you not ready to move yet we are happy to help you plan for the future. we can be reched through this website or you can phone us directly at 604-882-8384 we would be happy to assist you.

Sincerely,

Doug, Bonnie and David Mitten.

(Mitten Real Estate Team)

Introduction:

For this week's Blog article we (Mitten Real Estate Team) are pleased to bring you an update on the real estate market in Willoughby for the time period of August 2014 which we will be comparing to the same period last year.  This report is being written as a service to our current and potential clients.  We complied this report as part of our ongoing market reasearch of the local real estate market.

Apartments

 In August there were 6 sale sof apartments which was up from 4 sales that took place in August of 2013.  The prices for apartments in Willoughby saw a small decrease by -2.72% from a benchmark price last year of $173,289 to $168,700 this August.  The average and median days on the market did however see small decrease although the days required to sell remains quite high.  The while the percentage of asking price recieved remianed virtually the same.  

From this Data we can conclude that the market for apartments in willoughby was somewhat weak during August 2014 however the reduction in days is a good sign as is the increased number of sales which probbably correlates to the small reduction that was seen over the last year in apartment values, additionally there is a large supply new apartments for sale in both the yorkson creek development and the Atheny gate complex.  Thus we would expect to see some additional softening in the prices of apartments in willoughby mainly due to the large supply of new apartments enetering the market in this area,

Townhomes

 During this last August there were a 31 sales of townhomes in Willoughby compared to last year when there were 24 sales.  Townhome prices in Willoughby saw a slight increase since last year of 1.55% also notable is the reduction of number of days on the market required to sell and the percentage of asking price recieved remained almost unchanged.

From this data we can conclude that the townhome market in willoughby, while still recovering is starting to see some limited signs of strength.  This would point to potential (although limited) price increases in the future, however the market for this type of housing can easily be weakened if too many new townhomes come on the market at any one time. 

Single Family Detached Homes

During August 2014 there were 33 sales of single family detached homes in the willoughby area as compared to only 25 sales in August 2013.  Single family detached homes also saw a an increase in prices of a modest 2.21% during the last year and a slight reduction in the days required to sell although median days required to sell increased slightly.  The percentage of asking price that homes sold for stayed almost unchanged.

From this Data we can conclude the The market for single family homes in willoughby is roughly balanced at this time although it is showing signs of increasing strength, however as with the other sectors in willoughby the strength of the market will somewhat depend on how many new construction homes enter the market in the coming months and years.

Acreages:

During August 2014 there were no sales of acreages in Willoughby, however there is still an acreage market segment in willoughby (although decreasing in size) as there were 22 sales in the last year.  Unfortunatly, due to the lack of recent sales we could not analyze the general acreage market in willoughby.  It is however fair to say that with a few exceptions the value of these acreages seems to lie in there future develppment potential as they are often bought by develpers and investors.

Active Listings:

As of September 19 2014 there were a total of 368 properties listed for sale in willoughby.  19 of these were acreages with 5 of them being new listings (less than 30 days on the market).  The average days on the market was 137 with the median days being 60 days and acreages ranged in price from $1,080,000 to $4,800,000  The single family detache homes consisted of 141 listings with 58 being new listings, additionally 49 of the 141 single family homes for sale are new construction homes. The average days on the market was 55 with the median days on the market being 49.  There were 153 listings of townhomes with 57 of the listings being new listings and 67 of the townhomes for sale were new construction, the average days on the market was 78 with the median days being 38.5.  The large decrepance between average and median days indicates that some townhomes are sitting on the market for long periods probbably due to being overpriced while more reasonably priced homes are sending less time on the market befor selling. There were 55 apartments for sale with 24 of the apartments being new listings and 39 of the 55 apartments were new construction.  It is important to note that while the price range of apartments was between 154,900 to 505,0000 only new apartments were asking more than $259,900.  Additionally all of the new construction apartments for sale were in either The Atheny Gate Complex or the Yorkson Creek Complex and many of the new apartments have been re-listed severa times without selling meaning that the days on the market is artifically low for apartments in willoughby due to develpers re-listing them over and over, which makes them apear to be new listings on MLS, when they in fact have been for sale for long periods of time.

Conclusion

As we have seen n other areas the strength of the real estate market in willoughby depends on which segment you are looking at.  Single Family detached homes are showing modest strength with the market being fairly balanced between supply and demand at the moment.  Townhomes have seen some strengthening since last year however the supply new construction townhomes entering the market continues to keep price increases low.  The Market for Apartments in Willoughby would appear to be somewhat oversupplied at the moment with a large number of new construction apartments enetring the market, this has resulted in some price decreases, alhtough only samll decreases.  Thus as we have seen in other areas the best preforming sector appears to be the single family detached homes.

As Always if you have any questions about this article or any other real estate realted questions please feel free to contact us we wpiuld be happy to assist you.  We can be reched either through this website or by phone at 604-882-8384.

Sincerely,

Doug, Bonnie and David Mitten

(Mitten Real Estate Team)