The Open Offer Process

How will more transparency change the offer process?

As housing costs have risen and inventory remains well below demand, multiple offer situations have increased dramatically. Buyers and sellers have demanded more transparency.

In response to that the government has introduced an Open Offer Process with new legislation under TRESA (Trust in Real Estate Services Act 2002) which came into effect as part of phase 2 of the act on December 1, 2023.

So what does this mean going forward?

The Open Offer Process does not mean all multiple offers will be disclosed from here on out. Sellers will be the ones to decide what if anything they will disclose in the offer process.

Here are the key takeaways:

1. Sellers initiate the Open Offer Process

2. Sellers can initiate this at any time in the offer process

3. Sellers decide what to disclose (ex; price, terms, etc.)

4. Sellers do not have to disclose that information from all offers received

5. If offer details are being disclosed, all buyers must receive the information

6. Sellers must not disclose any personal identifying information about buyers

7. Sellers must still disclose the number of registered offers to all interested parties

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How does this impact you as a Seller?

Sellers can now determine whether they would like to sell their home under the traditional blind bidding process in which buyers are only notified how many offers are registered, or they can choose to disclose select information about one or more offers to all buyers involved. There are advantages and risks to this process but it can open up a myriad of options for sellers and become a powerful negotiating tool to encourage buyers to submit their highest and best offer.

How does this impact you as a Buyer?

For Buyers, it provides some extra consideration when drafting an offer. Knowing that the price or terms of your offer may be disclosed to other buyers can affect your decision to make an offer in the first place. Given the seller determines the process and that they have complete control of when and if they disclose offer information you need to go into each offer fully informed. 

As with Sellers, there are advantages and disadvantages of knowing the terms of competing offers. Knowing how your offer stacks up against competitors can help you negotiate, but you may not always have a complete picture. Sellers are not obliged to provide information on all the competing offers nor are they obliged to provide all the terms on a given offer. 

So how can you come out on top?

This is where working with an experienced Realtor and negotiator is essential. You need someone in your corner who understands the strategies being deployed and can use the available information to help you make strong and secure decisions. We are laser-focused on helping our clients achieve their goals through powerful negotiations and providing valuable insights to help you every step of the way.

Call to book a free Real Estate Consultation with us - 905-995-3372

While the stats show home prices have increased in the month of October 2023 compared to the same time last year, prices remained relatively flat from the previous month. The big change we are seeing is the inventory levels are way up and the sales volume is down.

This presents an opportunity for buyers. You can likely avoid competing on a property and negotiate on price and terms, which has'nt always been an option for succesful buyers in recent years. If you own your current home and are looking to move, it may be wise to sell first. This ensures you don't over extend on your purchase and can upgrade/downsize with confidence. 

Homes are taking longer to sell and we are seeing alot of terminated listings and price adjustments. The properties that are selling are the ones priced correctly to today's market conditions. If you want to get your property sold then the correct pricing and presentation are extremly important.

Another segmemt of the market that is feeling the impact of high interest rates is new home and pre-construction sales. We are noticing that there are a growing number of assignment sales being offered at a discount from the original purchase price. If you are considering purchasing an assignment it is imperative that you have representation and have the contract reviewed thoroughly. 

What's next for the real estate market in Toronto, well nobody knows for sure. With so many mortgages set to renew in the next few years we will certainly be watching and waiting to see what happens with interest rates moving forward.

Higher interest rates are working to ease price pressures in Canada and inflation is coming down, though progress to the 2% target is slow. The Bank projects that inflation will stay around 3½% until the middle of 2024, returning to target in 2025.

Source. Bank of Canada, Monetary Policy Report. October 2023

Are you waiting for interest rates to come down before making a purchase? This might not be a wise move. The Toronto real estate market is very competitive and there are many potential buyers with the same idea. When rates start dropping, you can bet that the market will change fast and we could be right back where we've been in the past with bidding wars causing home values to skyrocket. Talk to a mortgage specialist and determine what monthly payments you can afford and go with a term that will allow you to take advantage of future rate drops. You'll be paying higher carrying costs out of the gate, but you'll likely save on the purchase price and land transfer taxes. If prices do appreciate quickly once rates start dropping, you'll already be building equity. 

Preparing your home for sale involves more than just putting a sign on the lawn. To get the best price and terms you need to attract potential buyers and make a positive impression. It is essential to declutter and depersonalize your living space. These steps can transform your home into a blank canvas, allowing prospective buyers to envision themselves living in the space. In this blog post, we will examine the benefits of decluttering and depersonalizing your home before selling and how it will enhance your chances of a successful sale.

 First impressions matter:

• When potential buyers walk into your home, they should be able to visualize their own belongings and lifestyle within the space. Decluttering and depersonalizing help create a clean, neutral environment that allows buyers to imagine themselves living there. Removing excess items and personal mementos allows the focus to shift to the features and potential of the home itself, making a positive and lasting first impression.

• A cluttered home can make rooms appear smaller and cramped, which can be a turn-off for buyers. By decluttering, you create an illusion of more space, making your home feel larger and more inviting. Removing unnecessary furniture, personal items, and knick-knacks helps buyers better understand the functionality and potential of each room. They can envision their own furniture layout and imagine how they would utilize the space to suit their needs.

• With a decluttered and depersonalized home, the staging process becomes much easier.  Arranging furniture and decor can be done much easier to highlight the home's best features and appeal to a broader range of buyers. 

• Decluttering before selling your home serves multiple purposes, including making the moving process smoother. As you go through your belongings, you can sort them into categories: keep, donate, sell, or discard. This proactive approach helps you downsize and declutter before moving to your new home, saving you time, effort, and potentially reducing moving costs. Additionally, it allows potential buyers to see the full potential of the available space, making your home more desirable.

Conclusion:

Decluttering and depersonalizing your home before selling is a wise investment of time and effort. By creating a clean, neutral, and inviting environment, you enhance your home's appeal to potential buyers. It allows them to envision themselves living in the space and increases the likelihood of a successful sale. Remember, a decluttered home not only benefits the selling process but also makes the moving process more streamlined and efficient. So roll up your sleeves, embrace the benefits of decluttering and depersonalizing, and prepare to make a great impression on prospective buyers.

Tips to help you get started:

- Start by getting some packing boxes ready

- Take it one room at a time

- Sort things into 3 categories. 1. Donate or toss 2. Pack for the move 3. Daily items you need on hand

- Don't forget cupboards, pantry, drawers and closets. Buyers will open drawers and look in closets, so you want to make sure they are neatly organized and not jammed full of stuff. The rule of thumb for closets is to leave 50% empty. This will give the appearance of space and look organized.

Decluttering a home is a daunting task, but don't get discouraged. The more you put in the more you will get back in the price you get and time you save in the end. There are companies that specialize in helping people with as well, so don't worry if you are under a time crunch or can't do it yourself. If you are thinking of selling please reach out. As part of our free no obligation home consultation, we let you know what areas you should focus your attention on and how best to get started.

Bayview Mills is a picturesque townhouse complex located in North York, Ontario. With 345 units including 1 bedroom up to 5 bedroom options there is a layout for everyone. The neighbourhood is known for its affluent and family-friendly atmosphere, with excellent schools, parks, and recreational facilities nearby. Bayview Mills offers easy access to shopping and dining options, with the Bayview Village Shopping Centre just a short drive away. It is also a convenient location for commuters, with quick access to major highways and public transportation. The neighbourhood is perfect for those seeking a peaceful and upscale community to call home.

Get to know your local neighbourhood Realtor Ben Stanton to find out how you can buy or sell your Bayview Mills home today.

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Each homebuyer has a different idea of their ideal home, often based on location and particular visual preferences. But one thing that all homebuyers want is  a home that is fundamentally sound. This is why a home inspection is so important. We’ve compiled the ten most common deficiencies uncovered during a typical home inspection. If not addressed, these problems could end up costing thousands of dollars. Knowing what to look for, and performing your own thorough pre-inspection, will help you to identify areas needing repair or improvement before they grow into costly problems.

1. Damp Basement

Signs that a basement is damp include mold, mildew smells and efflorescence on the block or poured concrete walls. An inspector will do a visual check and should also have a moisture meter to detect different levels of moisture within the home.

2. Poorly Installed/ Defective Plumbing

Older homes that havent been updated may be subject to leaking and clogging that can be viusually detected. Plumbing like kitec has been banned because the fittings are prone to fail. The inspector will also check the water pressure and look for any discoloration when turning on the taps which could mean rusty pipes and a possible water quality issue that needs to be dealt with.

3. Older/ Poorly-Functioning Heating and Cooling Systems

If the home is heated with a forced air gas furnace and the hest exchanger is damaged or cracked it can pose a serious risk for carbon monoxide poisoning. If the furnace and AC are nearing the end of their life it will be recomended that they are replaced.

4. Older/ Unsafe Electrical System

In older homes there may be knob and tube wiring, undersized servicing or poorly done renovations and electrical circuits that are over fused. These could all pose fire risks and should be looked after by a professional licensed electrician.

5. Older/ Leaking Roof

There are many different types of roofs and roofing materials the most common being asphalt shingles. If the ends are curling, pitting, brittle, cracked or chipped its time to be replaced. Also look for bald spots where the granulars have fallen off. An inspector should have a ladder to get up and inspect the roof. If it's really bad the plywood may also need to be replaced.

6. Minor Structural Problems

More common in older homes, these problems range from cracked plaster to small shifts in the foundation. While this variety of problem isn’t large enough to cause any real catastrophe, they should be taken care of before they grow.

7. Poor Ventilation

Unvented or poorly vented kitchen stoves and bathrooms can cause moisture, mold and fungus which in turn cause air quality issues. Bathroom and range vents should vent to the outside.

8. Air Leakage

A cold, drafty home can be the result of any number of problems, such as illfitting doors, aged caulking, low-quality weather strips, or poor attic seals. This nature of repair can usually be taken care of easily and inexpensively.

9. Security Features

All homes need the proper smoke and carbon monoxide detectors. An inspector should also check locks on windows and doors making sure the home is secure. If the home doesn't have a security system or video doorbell it may be something to look into.

10. Drainage/ Grading Problems

This is the most common problem found during home inspections and is a major cause for wet, damp basements. Solutions to this may include new gutters and down spouts and re-grading to direct water away from the house.

Buying a home is exciting, but it can be scary too and rightfully so it's a lot of money and likely the biggest investment you will ever make. Thats why we make sure our clients are well informed and protected ensuring a smooth process from start to finish. Check out this list of common mistakes home buyers make when they are not properly informed.

Avoid these common mistakes Home Buyers Make

1. Not being pre-approved for a mortgage

2. Not having your taxes filed and up to date

2. Making a big purchase before closing or getting a line of credit/credit card. ie. car

3. Changing jobs before your deal closes

4. Not having your deposit available – having it in certain online banks or stuck in investments like RSP's

5. Not looking at mortgage terms closely and just choosing the best rate

6. Not understanding the closing costs and added costs of moving

7. Not fully understanding the costs of repairs and renovations

8. Not selling your existing home first in some situations

9. Not considering the re-salability of the home 

10. Not knowing the proper zoning and if there is an easement that affects the property

If you are thinking of making a move and would like to ensure a smooth process, give us a call or email and we will get you set up for success.

Looking forward to connecting

In an effort to increase the supply of housing by discouraging owners from leaving their residential properties unoccupied The City of Toronto will levy a Vacant Home Tax (VHT) on vacant homes. 

2) Foreign Buyer Ban 

The Purchase of Residential Property by Non-Canadians Act bans non-Canadians from purchasing residential real estate in Canada between January 1, 2023, and December 31, 2024.  

Who’s impacted? Foreign corporations and individuals who are not permanent residents of Canada or Canadian citizens. 

Property Types Impacted: Detached Homes with three dwellings/units or less. Townhomes, condominiums, and other properties are to be listed in additional regulations.

Exceptions include Refugees, individuals whose spouse or common-law is a Canadian citizen, a permanent resident of Canada, a person registered as an Indian under the Indian Act or certain temporary residents.

Explore the Act.

3) New Anti-Flipping Tax Law

Effective January 1, 2023, any profit from the sale of a property, including rental property within a 12-month period will be taxable as business income and ineligible for either the principal residence exemption or the 50% capital gains rate. 

The rules will extend to assignment sales meaning if you sell a property you purchased pre-construction. GST/HST has been applicable to the assignment sales as of  May 7, 2022.

The Bottom Line: If you plan on flipping property in less than 365 days expect to pay the full tax on your profits in the New Year. 

Go Deeper.