Elementary
Realtor interviews business
Allow me to introduce myself as Jacqueline Watson, a Realtor in the Toronto/GTA area. However, my expertise extends beyond real estate. I am also a Mediator specializing in Labour Relations. My passion lies in more than just selling homes; I strive to transform lives and empower individuals to achieve financial freedom through home ownership.
In addition to my real estate endeavors, I am building a thriving community through my podcast, Elementary. This platform allows me to engage with various businesses and share their stories. My career path initially began in Toronto & GTA, coinciding with a successful tenure as a Director of Labour Relations, in healthcare working in the long term care retirement and commune services industry, which I hold dear to my heart.
Combining my passions, I feel incredibly fortunate to work as both a Realtor and a Labour Mediator. Each day, I have the privilege of doing what I love, and I am immensely grateful for this opportunity. The journey that has led me here has been remarkable, and I cherish every experience along the way.
Furthermore, I recently had the honour of joining the Pilot Place board. Witnessing the incredible impact this organization has on people's lives fills me with gratitude. I am delighted to volunteer my time and contribute in any way possible to support their noble mission.
Elementary
Real Estate Pitfalls: Avoiding Rental Scams, Navigating the Canadian Market Surge, and Decoding Blind Bidding Tactics
Have you ever faced the nightmare of undisclosed rental agreements when purchasing a property? Tune in to hear my personal story and gain crucial insights on avoiding rental and contract scams in property transactions. We tackle the often-neglected issue of rental equipment, such as hot water tanks, furnaces, and AC units, and I provide actionable advice for sellers on why paying off these rentals before listing is essential. Learn about the hidden financial traps of long-term rental contracts, the specific challenges with solar panel agreements, and the critical importance of having all rental and contract documentation readily available for prospective buyers. This segment also sheds light on the role of status certificates in condo transactions, ensuring you're fully prepared for any complexities that might arise.
Shocked by the recent explosion of demand in the Canadian real estate market? We break it all down, from the anticipation of interest rate cuts fueling buyer urgency to the questionable tactics some agents use to inflate offers and create artificial competition. Our discussion covers the emotional roller coaster of blind bidding, the impact of recent changes in mortgage regulations, and busting the myths new immigrants and first-time buyers might have regarding mortgage qualifications. Whether you're navigating the market as a buyer, seller, or real estate professional, this episode provides essential insights and practical advice to help you make informed decisions in a rapidly changing landscape.
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Welcome to Elementary. I hope you're having a fabulous Monday, wherever you are. Well, the hot topic today is are you paying attention and are you getting scammed? And I want to bring that topic to light. And today particularly, we're going to talk about rentals, and that's what I'm going to start with. And today particularly, we're going to talk about rentals and that's what I'm going to start with.
Speaker 1:So everyone knows, your hot water tank is probably a rental and typically when we see hot water tanks on, well, we don't normally see it, but we kind of understand that the hot water tank is a rental. But what I'm also kind of understanding is that, now more than ever, it's almost like you have to ask the question, because someone who's listing a property more than likely does not ask that question of their clients. I'm not sure why. I mean, it should be part of your intake, right, but for some reason people are not asking the question hey, what's a rental? What do we have to worry about? The whole nine yards, right? And so, for the most part, you don't want to be caught. You do not want to be caught with a rental and not knowing the terms and conditions. Okay, and I'm not saying this because I'm a control freak or anything, because I like to know, but I don't like to take on anyone else's. You know what should I say? You know their plans right, they've got this plan, they've signed with a company and you don't really want someone else's. Now, a lot of times I say to people is if you have a rental, make sure you keep that documentation in a safe place so when you are planning to sell, you have that available. Now I'll give you a story.
Speaker 1:The other day I was showing a property. Now they did disclose that the furnace and the AC was brand new and the property has been on the market for a while. And I think it's a bit of a bone of contention because people get a little weirded out about rentals and they get weirded out in the sense that you know they don't want to take on someone else's rental. They should put a clause in to say that the seller needs to pay it off and negotiate that way. And a lot of times I'll say to the, if I'm representing the seller, I'll say to the seller no one's going to want to take on your rental, right, so pay it off. It's the best way. And if it means you try to get that money back with the sale of your home, then that's another option for you. But just to expect someone else to take on your contract, that's the word I was looking for contract, how could I not remember that? But anyways, to expect someone to take on your contract and expect them to be okay with it, it's a problem.
Speaker 1:So the other day when I was showing a property, I noticed the furnace, even over a year. For a year it's $12.66. But these people that sell you these rentals, they try to sell you this whole package or something. Anyways, I'm back Anyhow. So the people that sell you these rentals, they say, well, you don't have to worry, part of your rentals is a maintenance, but you have a brand new furnace and an AC. So really, why do you need someone to maintain it? Like, okay, I understand 5, 6, 7, 8, 9. Well, maybe they don't make things that last that long anymore. But if you had a rental and you were paying $152, let's say, a month, that works out to about $12.66 a year. And so you times it by the amount of years, and most of the times these rental terms are like 10 years and 15 years who knows how crazy they are. So that's like $12,000, over $12,000, and you could definitely buy an AC and a furnace and install it and own it and take care of it and it's yours, and then you don't have to worry about any of those issues when you go to sell your home. So that was what I was going to tell you, because I noticed like a lot of sometimes older clients get like sucked into these things because they feel like, oh, you know, maybe they're not, you know, they're at that age where maybe they need someone to come in and look at it. And people are like people take advantage of people, which is so horrible. So for me particularly, I don't like rentals and I advise people not to really get into them and to be a little mindful about rentals and rental equipment.
Speaker 1:And the next thing is solar panels. So when you're into solar panels I know some people are, and please don't be mad at me and it's not like I don't like solar panels, but it comes with a problem. It comes with someone else's contract. And then there's this issue about if you needed your roof fixed. What's written into the contract? And most times people don't really know where their contracts are. So those are some of the things that I was wanting to remind people of, like, if you're going to take on a contract, then you need to put those documents in a safe place, so, people, when you're planning to sell them, you have access to the documents right away. And then I want to say, if you have any questions, feel free to drop it in the question icon below and we'll try to get to them.
Speaker 1:I am also going to be talking a little bit about where the market is going, but my next topic is about status and while we wait for this market to get a little crazy again, I wanted to bring up status because I think it's really really important that people understand how important the status is and how not to waive that condition, because you never know what kind of surprises are in store for you. So I've been doing a lot of condos and condo townhouses and we've been getting a lot of statuses, and one of the things I actually came across the other day when I was reading one of them is that obviously this property is a bit older, but I've actually never seen it written into a status before, which kind of stigmatizes the property a bit, I think. So there was a disclosure, which was really good that people knew that the property had asbestos and I mean I guess it's in something because it was built in a certain year. They were still using asbestos up until that time. It was a 1974 ish property and so it was written right into the status and I thought it was interesting. But I don't even think people understand what that means, and I see people just, you know, breezing by, getting these places like it doesn't mean a thing, and while I appreciated being in the status, it's also a bit of a stigma that goes along with it and whoever's buying it has to take into consideration that stigma and that the property is stigmatized in a certain way and you can't just say, well, I changed the drywall and I moved all this stuff out. You know you have to show proof that your property because if you make that claim as a homeowner and something is not right, then you have to. So you have to show some proof that you've done it, I think Anyhow.
Speaker 1:So that was one of the things that I wanted to touch base on, but I did want to get on this week and talk about what's going on in the world of real estate and I must say FOMO is real, it's absolutely real. People are crazy. I know, I know it's like Canada runs on real estate right, it's like that. You know America runs on Dunkin' that ad. It's like Canada runs on real estate or something. But quite frankly, it's like a switch went on from a few weeks ago to now. It's like somebody flicked a switch and things are just going nuts.
Speaker 1:So things that were sitting on the market, that no one was even looking at, no one was interested in, are now getting multiple offers and you know, the strangest things happen, right, and I'm also seeing it for condo townhouses, smaller properties, of course. So it looks like these people are probably just trying to get ahead of the masses and because they are anticipating another rate cut more than likely thinking, hey, I'm going to go out and buy. But I don't think there's a shortage of properties, especially when it comes to condos. There's quite a bit of condos out there. So when I see people paying, well, we can say overpaying people. You know the value of your home is the value of what someone wants to pay for it. But when I see people going a little crazy, like someone was giving out candy and you're going to miss out on some, it kind of makes me wonder a little bit right, like, where are we in this world? And before the third cut can even like, before the next cut can even happen, we are now kind of people are freaking out and thinking, hey, I should get on this bandwagon before I get left behind. So, with regard to the condo market, even though there are lots to pick from, there are some condos that people are jumping on.
Speaker 1:The next thing I want to talk about is this mysterious thing that seems to happen Every time, even prior to like maybe a week, week and a half, even before this craziness started. Every time well, not every time. I shouldn't say that there are actually some really good agents out there and some really good agents that really take their job seriously and are very credible and do a great, great job representing their clients. But there are some who I don't know. I don't know they do these tactics and they think they're actually doing their client a service but really in return it could backfire on them. So a couple of weeks ago and I'm not talking the last two weeks, I'm talking like a few weeks ago we put in offers and it's odd, like mysteriously, another offer was registered, like it was so weird, it was just so strange, right. And then the other tactic is they ask for 24 hours notice because they're trying to pump up the offers so that they can get more offers on a property. And it's like just tell us what you want, what are you looking for? Why waste our time showing your property if the client can't even afford it? Like if you're looking for a crazy amount and that's not the value, but that's what you want, it's your house to sell. You can want whatever you want. We just have to decide whether you're going to buy it or not. And so you know.
Speaker 1:In my opinion, you know, this blind bidding craziness is something that look when the shoes. If you're representing a seller, yes, you like it because you're getting the seller the most. But on the flip side, I think as a professional, you should be able to run the numbers, figure out what the market is, and if people want to pay more, they're still going to pay you more. But your client should be able to say, yes, I'm good with this number and live with it. Right, and if people want to pay you more, they'll pay you more. And if there are 10 people lined up to buy that price that your client wants to sell at and they want to pay more, then great, great for that.
Speaker 1:But I was noticing the last little while, like automatically there were so many bids and there's so much of like this underhanded nonsense. But all I want to say to people is, whether it's a first time buyer and more so when it's a first time buyer or a repeat buyer, hasn't bought for a while or any of those people are excited to put in an offer on your home. And I know, you know, as professionals, we do this every day. But we should not get blinded to actually just trample upon people's offers like it doesn't matter right Now. First-time home buyer putting in an offer to a property. It took them so much effort, even if they're not a first time home buyer, even if they're a repeat buyer. It took them so much effort to actually put pen to paper. They've committed, they made that commitment. They decided oh my goodness, you know, among all the properties out there, I'm going to make an offer on your property.
Speaker 1:And then we have like crickets Nobody talks, no one acknowledges, no one even has the decency to say we're not going to. Sorry, but your offer is a bit low, we're not going to give you a counter, and that's okay. You can be polite, like your client can be upset, but you as a professional can be polite. I mean, that's your job, right. You need to manage everyone. You need to manage everyone's emotions. If you're just as emotional as your client is, then you know. I mean, I don't know where that deal is going, but it's going nowhere. Good, right.
Speaker 1:So having said that, I must say, like I was doing an offer the other day and um, I mean up until um, so the, the, the agent was I, I put in the offer and I asked them to acknowledge and they did because I asked them to acknowledge, them to acknowledge. And then after that, no response. I guess they didn't like the number, and that's okay, but there was silence. So then two days later, the agent says oh yeah, yeah, we didn't respond to you because my client really didn't want to give you a sign back. And I'm like oh yeah, I assume that when you didn't respond, and then the but it's kind of funny, it gets so stupid Like why wouldn't you just actually say I'm really sorry, but we're not going to entertain this offer, we're not giving you a sign back, and that's okay to do that, but anyhow. So I'm not sure if you have any particular questions with regard to our crazy real estate market.
Speaker 1:The market is really changing from week to week and who knows what happens with the next. The last time we saw this happen I think it was really before the first cut we saw a little bit of a frenzy and then it totally died, and then the second cut, there was nothing at all and anyway. So there are a couple of new announcements come out. You know the whole point of in the middle of December. That's when those new things kick in, where your insurable mortgages are going to go to 1.5 mil, and that's like a lot of money mil and that's like a lot of money. So it's like buying a $1.5 million home with maybe 5% or 6% down, because technically you have to put in 10%. Right now you have to put in 20% for anything above a million. So now they're going to change it to 10%. But the majority of that amount that you put in is going to be the insurance, the insurance that you're going to have to pay. So while you can get more money, you still have to qualify for it. You still have to make that money. It does help people who are making that money be able to get approved or get an insurable mortgage if they were looking.
Speaker 1:But let's not fool yourself Anything. That is like 1.5 million with the minimum down you're looking at maybe 708 grand and I'm just giving you rates of like. I'm giving you some rates Like I'm not a mortgage agent, so I have a mortgage agent on the show watching so you can get in touch with them if you'd like, but I'm not a mortgage agent so I'm not giving you advice on that, but I'm giving you some numbers. So it would be like $7,000 or $8,000 unless you were putting down, unless you were selling a house, buying another house, and I think people are mistaken as to how much that money accounts to. I have first-time homebuyers and I have repeat buyers and I also have older clients who are downsizing their home and sometimes they get like really bad sticker shock because so for the first time home buyers, they think they could qualify for six, seven, eight, a million, but they don't realize that that's not how it works. If I have a person who's probably immigrated to Canada and has been living here for a while, they really don't know how our system works so they think they can just like ask for that money and they would get qualified.
Speaker 1:So a lot of times that takes a little bit of education. You know the average first time home buyer making about $100,000 would qualify for around $450,000-ish. So what do you buy for $450,000 in the city and if you have a condo fees, that actually diminishes a bit. So condo fees counts towards your amount. So if you only got like 500,000, but then you wanted to buy a condo, you know for each hundred boxes about 20,000, 15,000 ish. I mean, don't quote me, it all depends on numbers that they work out. So they would give you an amount equivalent to after they take out your taxes and mortgage and so they would say, ok, if you're buying a condo with so much condo fees, this is how much you can spend.
Speaker 1:So it makes a difference for you to understand the numbers. That's why I'm like big on telling people not to get pre-approved, to get pre-approved, but at least that you're not disappointed. Then you know what you're looking for, you know how much you qualify for, you know where you can look and and you know what your options are. So every step of the way, just be prepared Anyhow, seeing that you have no questions for me. I will say goodbye and good night and if you have any questions, you know where to reach me DM me. If we don't connect, I can just do a little video for your answer, if you'd like as well. So anything at all.
Speaker 1:If you have questions about your particular area that you live in, I don't really do market reports giving you area numbers. I think they're boring in the sense that the bulk of the market reports. If I just tell you GTA numbers, what does that mean? It means nothing, because every area in the GTA, every little pocket, functions a little differently. The numbers are a little different. And if you're looking for one of those prefab reports that someone just puts together and pulls up numbers, they just average numbers. They're really not the numbers you're looking for. If you want a true, true value like a value of what, what properties are going for, not just from pulling some data that people put together, because it just gives you what they think the areas is going to be valued at Right. So it makes a big difference.
Speaker 1:But until next week we'll see you then and if you have any questions along the way, feel free at any point to DM me, get in touch. Go to my website, watson Homes. Watson and Watson Homes, I think no. Watson Homesca, watson Homesca, and then JacquelineWatsonca as well is another website, or Jacqueline-Watsonca that's another website. But for all of you listening, my name is Jacqueline Watson. I'm a realtor with Sutton Group Tower in Toronto and I look forward to seeing you guys on Mondays whenever I do the show, and so thank you for spending your dinner hour with me, because it means a lot, and until next time we'll see you then. Bye now, oh, sorry we're leaving, but we'll see you next time.
