at Montecassino Hotel and Venue

3710 Chesswood Drive, Toronto Ontario

9:30am-1:00pm

Guest Speaker includes Mark Weisleder as well as, presentations on Re/Max tools and digital marketing updates.

Please RSVP with Diana by January 23rd, 2012 at diana@remax2000.ca

**For RE/MAX 2000 Toronto Agents and Staff Only!

In practice, there are two kinds of open houses. One is limited to real estate agents, so they can conduct research in the area and be able to recommend the right homes to their buyer clients. The second is open to the general public. This can include nosy neighbours who just want to see your home, buyers who don’t have nearly enough money to consider putting in an offer and even criminals who are there to either steal something from the home during the open house or check out the security system so they can come back later.

Open houses will lead to more exposure for your home and more feedback from potential buyers. On the other hand, since we have so much information available to buyers on the Internet, such as video tours of the entire home, wouldn’t it make more sense to wait for a truly interested buyer to schedule a private appointment to see your home? That shows more commitment.

Still, in a seller’s market, where there are more buyers than available properties, open houses are a good idea so the maximum number of buyers can see the property in a very short time period.

If you do agree to conduct an open house, here are some tips:

• Make sure proper home staging is done in advance so your home appeals to the maximum number of potential buyers.

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• Do not stay in the house during the open house. You are more than likely to volunteer too much information, including why you are selling. This will hurt your negotiating position later.

• Make sure your agent will be there the entire time.

• It is not against the law to ask for identification in order to allow someone to enter your home. If they refuse to provide it, tell your agent to refuse them entry.

• Sometimes criminals will come in pairs; while one distracts the salesperson, the other is going through drawers. If a lot of people are expected make sure your agent brings an assistant.

• Ask your agent to check all windows and doors before they leave your home to make sure everything is properly secured.

• Remove all valuables or store them in a safe, if you have one in the home. This includes your laptop and any discs that may have your personal information on them.

• Keep all of your bank and credit card statements out of view, as this could lead to identity theft if someone takes them.

• Take pictures of each room so you can check later if something is missing or damaged during the open house. Whatever you decide regarding an open house, make sure you are properly prepared in advance.

Author  Mark Weisleder is a lawyer, author and speaker to the real estate industry. Email him at mark@markweisleder.com

• Check all electrical outlets to make sure that they work.
• Open windows, even in the winter, to make sure they are not stuck or painted shut.
• Look under any area rug or bed and behind any picture to check for cracked tiles, stained carpets or walls. Lift anything on the kitchen counters to look for defects.
• Do any of the appliances show any rust? How old are they? If they are discontinued models, you will likely have to replace them if they break down because of the difficulty of finding replacement parts.
• Start the dishwasher at the beginning of any home inspection. By the end, it should have gone through its entire cycle, without leaking.
• Put a thermometer inside the oven and turn it on to 350 degrees. After 10 minutes, check the temperature. Test stove burners.
• Put a cup of water in the microwave for 45 seconds. Does it heat up? Flush every toilet and see whether it stops running after it is filled.
• Check sinks, tubs and showers in the house. Is there proper water flow from each faucet and does everything drain properly?

You may want to consider turning all the faucets on at the same time and then flushing a toilet upstairs to see whether the water pressure slows or stops in any sink. This could indicate a problem with the system.

In older homes, consider a separate sewage inspection. Stan Collini, the President of Roto-Rooter Plumbing and Drain Service in the GTA, tells me that for $295, you can do a video camera of a property’s sewer system to see if there are any problems that would not be visible on a typical home inspection.

Check under the water heater for leaks or stains on the floor. Ask how old the air conditioning unit is and when was it last serviced Is there sufficient hot or cold air reaching all of the rooms in the house? Does the owner have a plan with their gas company to inspect the furnace once a year? When was the last inspection conducted? If the house has an addition, ask whether any upgrade was done to the heating or cooling systems to account for the additional living area. Look for water stains in the ceiling which could indicate leaking from the roof or other problems with the plumbing system.

When your inspector is on the roof, ask them to check for broken or cracked shingles. If it is a flat roof, look for the low spots where water can collect for any evidence of a problem. Check the eaves to see if there is any rot or decay. If any concerns are noted, consider bringing in a roofing contractor for an additional opinion, especially if the home is 15-20 years old and it is still the original roof.

You may also want to consider a separate inspection for mould or termites, as these may not be visible on a home inspection but can result in significant costs to repair later. Check if this is a known problem in the area.

Always ask the seller and the seller’s agent if they know about any hidden defects that are not visible. They must answer truthfully if you ask them.

Consider looking into after-sale warranty protection. Many of these products on the market will generally cover problems with a home electrical, plumbing, heating and cooling system, as well as the major appliances. But like any warranty, ask about deductibles and what is excluded from coverage.

By being properly prepared and asking the right questions both before and during any home inspection, you will be better protected against costly surprises after closing.

Mark Weisleder  is a lawyer, author and speaker to the real estate industry.

John says that he would never listen to a home inspector recommendation by a real estate agent because they only refer inspectors who will likely approve the house.

My answer is that real estate agents will normally recommend three professionals. You should take the time to check references for any inspection company before deciding to hire them.

Jim, a seller, complains that buyers use the home inspection condition to come back and try to renegotiate the price. Paul, another seller, asks whether they should do their own home inspection before putting their house up for sale.

Because many sellers refuse to sign disclosure statements about the condition of their properties, there is a concern by buyers that the sellers may be hiding something. As a result, some sellers are having their home inspected before they offer it for sale. By having a home inspection done in advance by a reputable company and handing a summary to an interested buyer, you can give the buyer more peace of mind. The seller can also fix the problems noted on the inspection and show the buyer what was done. This should prevent buyers from coming back to try and re-negotiate the price after doing their own inspection.

I have also noticed many ads out there describing properties for sale, with words like “New Roof, Upgraded Plumbing, Updated Wiring or “Totally Renovated.”

Buyers need to ask for proof as to what the seller means by any of these claims. New shingles on a roof is not the same as replacing the entire roof. Does upgraded plumbing refer only to some new bathroom fixtures, or does it include all new pipes throughout the house? Does upgraded wiring mean that you have installed modern light dimmers or does it mean that the old knob and tube wiring has been torn out and replaced. Total renovation can mean many different things. It is important that buyers ask sellers to produce proof, by way of contracts or invoices, to demonstrate exactly when and what work was done. Are there any warranties that were given with the work? Are these warranties transferrable to the new buyer?

By obtaining copies of any work that was done and providing this to your home inspector in advance, a more thorough inspection can be done to make sure that the work was done as advertised. The home inspector will have a better idea on what to focus on.

Bill, a buyer asks how he can protect himself about termites or mould in a house?

Sellers have an obligation to tell a buyer about serious hidden problems that an inspector may not see, such as foundation problems, roof or basement leaks, mould or termites.

While a home inspection company may be able to look for visible structural component evidence of termites, buyers will probably require a pest control specialist to inspect to see if there are any problems. Buyers need to check whether the area in general is known for termites before deciding if anything further is necessary.

Sellers, remember that more disclosure means more peace of mind. Buyers, asking the right questions in advance will make choosing a home inspector and conducting a thorough inspection easier.

By – Mark Weisleder is a lawyer, author and speaker to the real estate industry.

Moneyville columnist Alison Griffiths wrote about her adventure as a landlord

earlier this year. It’s a humorous look at what can go wrong and the lessons learned, but anybody thinking about an investment property might want to read: Why did I think being a landlord was easy money?

The trick is to end up with money in your pocket at the end of the month after paying your bills and collecting the rent as you slowly pay down the mortgage

and end up with a nest egg. Here are some tips:

• Research the area where you’d like to buy. Is it in decline or on the way up? A good indication is if chains like Wal-Mart, Tim Hortons and Home Depot are moving in. These companies do a lot of work on demographics and income before deciding where to locate. You can get a big picture look at vacancy rates at settlement.org, a federally funded site that helps immigrants with information and resources to settle in Canada.

• Use a real estate agent who also is an area investor. Ask them to show you their properties and the rents. Ask for the names of other investors they have helped. Call them. Make sure they have a team of professionals you can use, such as property managers, insurance advisers, mortgage brokers, home inspectors, accountants and lawyers.

• Once you own more than four rental units, find a reliable property manager. You don’t want to take a call in the middle of the night. A rule of thumb is that you should allocate up to 10 per cent of monthly rent to a property manager. They will make sure your building is properly maintained and can help find tenants.

• Do not be in a hurry to rent a vacant unit. Take your time to qualify any potential tenant, since it can take months to evict a problem tenant. Call all tenant references, ask for a current pay stub and speak to at least two prior landlords. Where possible, require the tenant to pay for utilities. The tenant will have to apply to the utility company for an account, which amounts to an extra credit check being done by the utility company.

• Be careful with basement apartments and homes rented to students. Although these units can provide additional income, you must make sure that they are legal, comply with the fire code and have any required licenses to operate.

• Buy and hold your property for the long term. This way, you have an income and slowly start to pay down your mortgage.

• If you are investing with others, have a partnership agreement. Problems may occur later if the friendship breaks down, especially if one partner loses their job and cannot pay their share of expenses, or if one partner wants to sell while the other does not. With a partnership agreement, you can provide what will happen in these situations in advance, without having to pay costly legal fees to figure it out later.

Investing in real estate is not easy. But by taking the proper precautions, it can be very rewarding.

Mark Weisleder  is a lawyer, author and speaker to the real estate industry.

1.  Understand bidding war rules

The main reason you overpay is panic while you are caught up in a bidding war.  In advance, find out first what the house should sell for.  Many sellers deliberately list for a price below market to attract a lot of buyers. Do not tip your hand. If you give your offer too early in the day, the seller’s agent will call everyone to try and encourage a bidding war.  Bring in your offer around 7pm and make the irrevocable period no more than four hours.  Put the pressure on the seller, not on yourself.

2.  Ask the seller hard questions

Ask the seller or the seller agent if they know about any problems with the house, things like basement flooding, mould or roof leaks, even if the leaks have been repaired.  Then ask if they know about the neighbourhood that would have an impact on your purchase.  Tell them you are relying on this information.  Watch how they answer. Most sellers will refuse to sign property disclosure statements, but they are required to respond truthfully to these questions if you ask them directly.  If the seller refuses to answer or acts suspiciously, then you need to discuss this with your home inspector and your real estate agent and either adjust your purchase or walk away.

3.  Basement apartments must be legal

If the home contains a basement apartment and the income is important to you, make sure that it complies with zoning and the fire code bi-laws.  If it doesn’t, then all it takes is one complaint from a neighbour and you may be forced to spend thousands of dollars to make it comply after you buy.

4.  Check about your insurance premium early

Find an insurance agent right away and if possible, check what it will cost to obtain insurance a soon as you sign your agreement and before you waive any conditions.  An insurance agent can check the history of claims in the neighbourhood and can let you know claims for sewage back-ups or vandalism. This is important information that any buyer should have before deciding to waive there conditions and complete the deal.

5.  Look into after sale warranty protection

More companies are entering this market, where for a fee of up to $500 per year, buyers can obtain after sale warranty protection on their furnace, air conditioning, electrical and plumbing systems as well as on all major appliances.  This is needed since no seller will warrant these items after closing. Check out the deductibles and what may be excluded from coverage under these polices, as they are all different, yet they can provide peace of mind and only one number to call when you have a problem later.

If you follow these simple steps and buy with your head instead of your heart, chances are you’ll get the house you want at a price you can afford, with no unwanted surprises later.

Mark Weisleder is a lawyer, author and speaker to the real estate industy