Canada real estate prices

[oops!]

Re: Canada real estate prices

these are very good points bp

 

[ngt]

Re: Canada real estate prices

So your saying that you are willing to live off of kraft dinner to live in area that you cant relay afford. People in Vancouver and northern Alberta are paying up to $1500 to $2000 for a 1 bedroom apartment and are not making that good of money.Not trying to knock your way of life or you dream but it is one that I don't understand. I live in a place that my kid can go down town and I don't have to worry.I have a good paying job. I fish 10 minuets from my front door all year. I don't have a big house but I can afford it and make it into my castle with extras. I guess you need to expand on what you call a worse place.

I'd bet people closer to San Fran are paying closer to those prices. This place is beautiful though. 45 minutes from San Fran, 40 from the beach, camping, hiking, hunting, redwood forests, vineyards, apple orchards, boating, rivers, a number of nice golf courses in the area, lakes, some of the best wine tasting the world has to offer, memories from my youth, my family and friends live here, and I'm living just fine. My tax return gets us through fine, budgeting about $500 per month from it for baby expenses etc.. We eat fish/chicken/steak/BBQ/etc and sometimes eat out just like the next guy. Sometimes Ramen noodles and sometimes PBJ for lunch, but whatever. We do have to budget most of the time, but you pick and choose where to spend and handle your money well. I have my share of extras as well and can afford golf and an occasional happy hour with the friends. I own a (small) boat, small utility trailer, have a 50 inch plasma next to a 32 inch lcd, a somewhat nice set of golf clubs, a room full of Japanese sit down arcade games, a paid off older car, and a bunch of fishing/crabbing stuff in the garage. I have great neighbors, a cul de sac corner lot with a few apple trees and some plum trees, in a safe area in a small college town. Beautiful and green. A park around every corner. A town with farms on one side and a small city on the other. Divided by farm land and beautiful green rolling hills behind us. I'm 15 minutes from work where I make a bit over 3 grand per month in a job that I love that gives me about 3 months total off per year. I can afford to have my wife stay home and raise the kids (well, only 1 right now). I may not have a new truck and a giant boat, tons of savings or spending money to throw around (anymore), but I have a nice enough home in a great area, good food and drink on the table, great friends, a beautiful 12 day old baby boy who is well taken care of, and I feel blessed to have the life I do. No need to move to a place with less to offer in the surrounding areas so I can buy more expensive things to play with. People choose what's important to them. My folks always told me to go for a smaller house in the area you want to live. Pretty much what I did and I feel like I made the right choice. To each his own though

 

[zymox]

Re: Canada real estate prices

People in Vancouver and northern Alberta are paying up to $1500 to $2000 for a 1 bedroom apartment and are not making that good of money.

GEEE, When I read something like this I'm happy to live in Sweden.
A friend of mine has relatives in Canada he visits every year but has never mentioned the prices over there. It sounds awfully expensive.

Here I pay approx. 1200 US$ / month (no deposit) for my 4 room flat. 2 toilets (1 shower and 1 shower/bath combo) and kitchen.
Its 110 m2 (1180 sq.f) @ 2 floors with a terrace on the 1:st floor in the front for summer barbecues and a balcony directed towards the main street in my town on 2:d floor when I don't wanna talk to the neighbours. I have 5 minutes to the harbor and have 1 minute to city with pubs, restaurants and stores. Heat, water and garbage disposal is included. The kitchen all equipped (freezer, fridge, stove, dishing-machine & washer) also included.
Electricity, Phone and garage I have to pay besides. A pretty normal salary here is about 3500-3900 US$ / month. The gas costs 2.5$ / Liter and the Diesel is a tiny bit more. The price mentioned above for 1 bedroom apartment is about the same that you have to pay in our capital but on the other you will earn more money / month working in that area to.

 

[rbh]

Re: Canada real estate prices

Someone should have emphisised that northern alberta is a boom bust area dependent on large gas/oil projects (OH, wait someone did)
But this is trickling across the 3 western provinces because there is lots of projects going on.
The lower mainland/Vancouver and Vancouver island is a highly densly populated area and growing like crazy, regardless of off shore investers, property prices I believe would be high.

 

[dingbat]

Re: Canada real estate prices

The unfortunate part of the real estate system is that both the 'Buyers agent' and the 'Sellers agent' profit from the houses maximum resale value. This means that it is not ever in the 'buyers agent' interest to ever negotiate the price down considerably, he only loses money if he does so...why would he do that within this system?
IF, the system had the 'buyers agent' fee based on how much he was able to negotiate down from the asking price the end result...which would be true negotiated pricing, would be far, far more in line with the people on average and their incomes and budgets. This is one of the very few sale venues/systems that works this way, its pretty ridiculous....I could go on about this but consider this approach in other business disciplines....ie: company purchasers, etc.

I don't know how they do things in Canada but down here the buyer's agent down has no control over the purchase price. The purchase price is totally at the buyers discretion. No ticky, no laundry.

 

[Bigprairie1]

Re: Canada real estate prices

I don't know how they do things in Canada but down here the buyer's agent down has no control over the purchase price. The purchase price is totally at the buyers discretion. No ticky, no laundry.

Dingbat....I'm not sure how things work in the U.S but in Canada both the Seller's agent and the Buyer's agent get their commission from the final resale value extracted from the negotiated final sale price.
Within the current system, this method of commission payment makes the 'Buyer's agent' somewhat complicit (for lack of a better word) in keeping the sale price pretty high.
Neither agent actually sets the price of the house...that is set by the owner, sort of.....BUT....they rely on their agent (the Seller's agent) to recommend something within the market value at the time....probably initially optimistic. At the end of the day the owner/seller can ask anything they want...it is their house. However if they want to use the MLS (real estate marketing system) they have to have a licenced realtor...who becomes the seller's agent, and that is where the fun starts.
The Buyer's agent rides this wave by being the 'Buyer's agent'....who is helping people find these homes.
Again, that last thing he (the buyers agent) wants to do is negotiate the price down $150k...because his commission is riding on the final 'sell' value. Every $10K that house price drops on his watch is money out of his/her pocket...and this makes no sense to me if they are (for instance) 'my' negotiator/agent. IF, his/her commission was tied to how much he/she negotiates off the asking price...(say 10%?) then you would find a much more balanced system in my opinion.
My two bits
BP

 

[dingbat]

Re: Canada real estate prices

Again, that last thing he (the buyers agent) wants to do is negotiate the price down $150k...because his commission is riding on the final 'sell' value. Every $10K that house price drops on his watch is money out of his/her pocket...and this makes no sense to me if they are (for instance) 'my' negotiator/agent. IF, his/her commission was tied to how much he/she negotiates off the asking price...(say 10%?) then you would find a much more balanced system in my opinion.
My two bits
BP

The value of the property is determined by both parties. The asking price is a arbitrary number dreamed up by the seller. How is it better to base the commissions off an arbitrary number than the "economic value" of the property?

What is keeping the sellers from inflating the asking prices to increase commissons?

 

[oops!]

Re: Canada real estate prices

What is keeping the sellers from inflating the asking prices to increase commissons?

competing homes for sale in the area.
usually the seller dreams of a high asking price......the agent may or may not reluctantly agree.
if the agent thinks he can move the house due to demand, he will agree. if not, he will ask to lower the asking price before listing.
usually the agents will try to get the seller to lower the asking price before listing. this is due to the hope of a quick sale and lower the agents cost of making the sale.
the sellers agent pays all advertising costs as well as paying for any open house costs.
the commish is 4% for the seller and 3% for the buyer.
with the large prices in the area, 4 % of a half million dollars is 20 thousand. in the boom years, houses were on the market no longer than a week or so. with most good agents selling 4 homes a week

 

[jkust]

Re: Canada real estate prices

The value of the property is determined by both parties. The asking price is a arbitrary number dreamed up by the seller. How is it better to base the commissions off an arbitrary number than the "economic value" of the property?

What is keeping the sellers from inflating the asking prices to increase commissons?

I agree and there needs to be some discussion of business ethics here. In the summaries above, it would take just one ethical realtor to make up the lower sale prices he negotiates with higher volume he will surely get from buyers that refer him. People are in business to make money but they presumably won't last long if they aren't representing their client's best interests. Of course the previous housing boom in the U.S.A. excluded.

 

[puddle jumper]

Re: Canada real estate prices

Some thing else that also need to be brought up here is that when allot of the higher end homes would come up for sale (when times were booming).Many of the sellers would sell there old home for more than what they were asking due to a bidding war. I don't know too many people who are willing to sell there home for less than what they bought it for now.

 

[tallcanadian]

Re: Canada real estate prices

Here in Halifax Nova Scotia housing is starting to go up in a hurry. With the upcoming 3 billion dollar shipping contract I expect in 5 years that will double. A new home now your looking at anywhere from 350,000 and up. An old home downtown your looking at about 300,000 on average, depending on the area, of course. When I moved from Newfoundland I was paying 620 dollars a month mortgage. I'm lucky to get one now for anything less than 1800 dollars. Anyone know the salary now in Fort Mac Murray, Alberta. Depending on your trade, something like 45 dollars an hours plus. Amazing.

 

[dolluper]

Re: Canada real estate prices

Sheet Harbour Nova Scotia asking 250,000 and 66 acres ,3 lakes on property ....missed this one by days I cryed one of the lakes was Grand Lake

 

[NewfieDan]

Re: Canada real estate prices

So your saying that you are willing to live off of kraft dinner to live in area that you cant relay afford. People in Vancouver and northern Alberta are paying up to $1500 to $2000 for a 1 bedroom apartment and are not making that good of money.Not trying to knock your way of life or you dream but it is one that I don't understand. I live in a place that my kid can go down town and I don't have to worry.I have a good paying job. I fish 10 minuets from my front door all year. I don't have a big house but I can afford it and make it into my castle with extras. I guess you need to expand on what you call a worse place.

We didn't live on kraft dinner. Not by a long shot. The money we made in NE Alberta was great. Me and DW made coser to 500K than 100K. We bought what we wanted when we wanted. There was no need to budget. Even bought a second home at the height of the housing market cause we wanted a "weekend house".
Could leave on a snowmobile or quad from the back yard. A decent boating lake 1/2 from hour door. Owned a cabin on a larger lake 4hr drive from home. Athabasca river was a 10min drive from our door step. had lots of pike and walleye to catch. Owned all the toys except for a snowmobile (They don't interest me). Convertible, travel trailer, boat, motorbikes etc... We regulary went for walks in the evening in the neighborhood we lived in. There are some neighbourhoods I didn't even feel comfortable stopping for gas. I didn't live in those. It was so quiet we accidentally left for the weekend and our backdoor wasn't closed properly. On Sunday when we got back the door was swinging. ALL of our stuff was still in place.

But there is one point to mention we bought our home before the housing market went crazy. We had a livable mortgage that allowed us to live the way we wanted while we made good money.

 

[Fly Rod]

Re: Canada real estate prices

Well Bigprairie1... in the U.S. real estate is much different then in Canada and real estate in every state varies with differrent regulations. Where I live we do not pay a real estate facilitator, in most listings there is a big fat zero next to facilitator and even tho we can act as a facilitator between Buyer and Seller, in most cases we do not and if we did would need to be verified by both parties in writing. We have a fudciary duty to either represent the Seller or Buyer, not both at same time.

No matter what country we are in the Seller in most cases feel that their house is worth a lot more and this is where a Realtor has to show the Seller reality.Why would any Realtor want to list a property for 550,000 when it is only worth 400,000, commission, forget it, it cost the Realtor money to list the property. Why would I want to spend 3.000 on a 4,000 dollar commission on an over priced property that another Realtor would get the listing when my contract runs out with the Seller.

We can not steer a Buyer to a certain bank or mortgage company. We can provide them with three or more or they can pick there own.

The Seller pays the listing fee and the listing Real estate company offers part of that fee to the Real estate company that brings the Buyer.

 

[puddle jumper]

Re: Canada real estate prices

We didn't live on kraft dinner. Not by a long shot. The money we made in NE Alberta was great. Me and DW made coser to 500K than 100K. We bought what we wanted when we wanted. There was no need to budget. Even bought a second home at the height of the housing market cause we wanted a "weekend house".
Could leave on a snowmobile or quad from the back yard. A decent boating lake 1/2 from hour door. Owned a cabin on a larger lake 4hr drive from home. Athabasca river was a 10min drive from our door step. had lots of pike and walleye to catch. Owned all the toys except for a snowmobile (They don't interest me). Convertible, travel trailer, boat, motorbikes etc... We regularly went for walks in the evening in the neighborhood we lived in. There are some neighborhoods I didn't even feel comfortable stopping for gas. I didn't live in those. It was so quiet we accidentally left for the weekend and our back door wasn't closed properly. On Sunday when we got back the door was swinging. ALL of our stuff was still in place.

But there is one point to mention we bought our home before the housing market went crazy. We had a livable mortgage that allowed us to live the way we wanted while we made good money.

I cant say that there is not big money to be made up in Fort Mac. When the person who works at a chain coffee shop and make $20 plus an hour, thats just nuts and hearing of otheres who like you say make up to $500.000 a year and only work 6 months a year. Now on the other side of this there are people who work in Fort Mac who make a $100.000 plus a year and cant afford to even the crapyest apartment. I was told that these people are called the working homeless. They live in a tent city on the edge of the city. That just blows me away that people making $100.000 a year cant afford a roof over there head. That was the point I was making why stay in an aria just to say your there when you have to live in poverty to be there.

 

[rbh]

Re: Canada real estate prices

I cant say that there is not big money to be made up in Fort Mac. When the person who works at a chain coffee shop and make $20 plus an hour, thats just nuts and hearing of otheres who like you say make up to $500.000 a year and only work 6 months a year. Now on the other side of this there are people who work in Fort Mac who make a $100.000 plus a year and cant afford to even the crapyest apartment. I was told that these people are called the working homeless. They live in a tent city on the edge of the city. That just blows me away that people making $100.000 a year cant afford a roof over there head. That was the point I was making why stay in an aria just to say your there when you have to live in poverty to be there.

An aquantance pulled his travel trailer up there, found a place to put it, and bought 100 or so bales of straw to place around it for insulation.
I understand it was good and warm when it hit -45!!!

 

[Bigprairie1]

Re: Canada real estate prices

Well Bigprairie1... in the U.S. real estate is much different then in Canada and real estate in every state varies with differrent regulations. Where I live we do not pay a real estate facilitator, in most listings there is a big fat zero next to facilitator and even tho we can act as a facilitator between Buyer and Seller, in most cases we do not and if we did would need to be verified by both parties in writing. We have a fudciary duty to either represent the Seller or Buyer, not both at same time.

The Seller pays the listing fee and the listing Real estate company offers part of that fee to the Real estate company that brings the Buyer.

Fly Rod that does sound different than up North here. The 'buyers agent' here is still responsible to their client in many ways....its just that 'their' money (fee?) comes as a percentage of the final/total sell price and nothing laid out or defined by the buyer. It would be nice to hire a Buyers agent who tied their fee to how much they 'reduced' the asking price by.....but that would never fly within the 'Realtor community'....no way. They would all transfer over to be sellers agents to keep attached to (elevated) sell prices.
Now, from your (above) I'm trying to understand who pays the buyers agent or facilitator and what is it based upon? Is it a flat fee? (ie: $4000) Regardless, of sell price? or?
BP

 

[Fly Rod]

Re: Canada real estate prices

Now, from your (above) I'm trying to understand who pays the buyers agent or facilitator and what is it based upon? Is it a flat fee? (ie: $4000) Regardless, of sell price? or?
BP

Basically a Facilitator does not get paid, stated on listing sheet, Facilatator-0 and we do not pay sub agency.
Seller list house with Realtor at 6% of sale price, house listed for 500,000 house sells for 400,000... 6% comes from the 400,000

It's not a flat fee, it's based on sale price of property there are some flat fee companies around here but they do not last long. we do all the leg work. We do not forget our past clients whether buyer's or seller's we keep in touch and help with what ever other things they may need.

 

[bassman284]

Re: Canada real estate prices

So the Facilitator is just working out of the goodness of his heart? I really doubt that so he must be getting paid something, somewhere by someone.

I've been googling the subject for the last hour or so and the concept is still pretty muddy to me. (Should mention that I have been a licensed realtor in Nebraska and Iowa, most recently about 30 years ago). Around 1980 the Buyer's agent concept began gaining some but hadn't gone very far before I left the business in 1983.

From what I've seen so far, it appears that any Agent at any time can decide to become a Facilitator, or vice versa. E.g., listing agent finds a buyer without an agent and tells the seller he is going to change over to Facilitator and reduce the commission from 6% to 5% to compensate. Sounds like he's going to get paid. Found other examples not quite as egregious but also did not fit with what I remember from my NAR ethics training.

 

[rbh]

Re: Canada real estate prices

Have a look at this for more info on real estate fees here.

http://www.cba.org/bc/public_media/housing/405.aspx