Keith Church

This is just an update on an existing program run by the region. They have decided to extend the program one last time to March 6, 2009. They will be selecting about another 185 applicants after that date.

For those not aware, the program provides low to moderate income households with the downpayment loan of 5% towards the purchase of a a home. There are rules that apply and they can be found on the Region's website at <a href="http://www.region.waterloo.on.ca/web/region.nsf/97dfc347666efede85256e590071a3d4/b04441c236936a038525724b006c0434!OpenDocument">www.region.waterloo.on.ca/aho</a>. The application form is on the website as well. The buyers only have until March 30th to enter into an agreement to purchase, but there is no deadline on when the closing must occur.

The main criteria for eligibility include:
1. Maximum family income of $68,000
2. Maximum purchase price of $226,000
3. Presently do not have an interest in a home
4. Plan to live in the home as primary residence.

If you are a renter and have a family income under $ 68,000, it may be an excellent time to buy a home. The downpayment is covered, interest rates are extremely low, and there's a "buyer's market" when looking for a house.

You should call a Prudential agent today and get working through the process. As they say, time is of the essence!

The housing market in Canada is nothing like the situation in the United States. But, as time passes, more and more of the lending policies are rubbing off on us.

A couple of months ago we heard that some conventional lenders were adopting a policy of not funding student income properties.

Today I heard that a number of lenders will no longer underwrite mortgages for private sales. The reason given is the potential for fraud and other undesirable possibilities associated with private sales.

All being said, this may well be an opportunity for agents in these slow times.

It happened again this week. It seems to happen in our brokerage several times a year, and it's the same story over and over again. It's just different people and different houses, but the same story.

When buyers are looking for a house, the human nature is to look at everything. Most have a real estate agent, but they look on their own, too. The internet, weekly and monthly print publications, for sale signs, and even private for sales.

When they see a house they like, and in this particular scenario, the house is usually staged to its optimum, and decorated beautifully. The buyer finds this property on their own as a private for sale. They fall in love with the house, and make a quick emotional decision to buy the house, without consulting with an agent. The asking price is too high but that's OK because they really love the house. I truly think that, in some cases, they don't even think about the price. They just want the house. (We're all guilty of that, but in most cases, it would be on much smaller ticket items.)

So, as the story goes, two or three years pass and family circumstances change and they need to sell the house. They call over an agent and, it becomes apparent that the house is not worth what they think it is worth. Often it doesn't show as well as when they bought it because they don't quite have the flair for decorating as the previous owner. They now have two choices, list it at market value and take a hit or list it proportionately high to the mistake they made when they bought it.

More often than not, they take the higher route, because it is less painful. But, of course, the house never sells. So later they reduce and take the hit. When the market was good, it sometimes seemed less dramatic because prices were going up and the property caught up to the market. It seemed that way, but the mistake was really made when they made the purchase, not later.

This brings me to my point. Why would any buyer go out and make the biggest investment of their life without a professional to guide them? Especially, when their fee is being paid by the seller! It makes absolutely no sense! There are so many things to consider when looking at a house and drafting an agreement of sale. Most buyers don't even know what to look out for. Pricing , of course, is one of the biggest issues. A salesperson can show a buyer what comparable houses in the neighbourhood have sold for recently. Do you think the seller is going to show a buyer comparable sales that show his property is $ 25,000. higher than the last comparable sale?

Something that happens to real estate agents on a very regular basis is the issue of getting the price right on a new listing. Sellers want to get top dollar for their property, and so do we, but sometimes the "seller's price" is over the top and totally unrealistic. Especially in this slower market, it is very important to get their price in a marketable range that will encourage showings and offers.

Here's a story that happened in our brokerage recently that demonstrates the importance of getting the price right. The seller had a country property in a good, central location. The house was really nice with many updates and recent renovations.

We gave them an asking price of $ 450,000 about 18 months ago. They felt this was low, and decided to try and sell privately for $ 699,000. Later they listed with another broker at the same price without success. Well over a year passed in the process and they did reduce the price a bit, but nothing substantial.

In the end, after 18 months of the stress of trying to sell their property, they sold it for $ 415,000. I am sure everyone was dispointed in the end.

Nobody will ever know for sure, but we're pretty confident that they could have sold it for more than that with a year's less stress.

Any agent will tell you that they don't want to take overpriced listings. You can spend thousands of dollars advertising without a realistic chance of seeing a return on your time and financial investment.

It's an ongoing battle over a real estate career to help a seller to understand how important it is to set the price correctly