In the world of real estate, it's crucial to understand the difference between a sellers market and a buyers market. Current market trends and the housing market often stipulate or dictate if real estate investment is ideal and at what time.

In a sellers market, there are more buyers than properties available for sale. This can drive up prices and lead to bidding wars. Sellers have the upper hand and can often sell their property quickly and for top dollar.

On the other hand, in a buyers market, there are more properties for sale than there are buyers. This can put downward pressure on prices and give buyers more negotiating power. Properties may sit on the market longer, giving buyers more time to make decisions.

Whether you're buying or selling, knowing whether it's a sellers market or a buyers market can help you navigate the real estate market more effectively. Keep an eye on market trends and consult with a real estate professional to make informed decisions.

Economic Rule of Supply and Demand

In real estate, the market is tied to the basic economic rule of supply and demand, which determines if a market is a buyer’s market vs seller’s market. Sure, certain seasons might have more foot traffic than others, but the housing market could vary drastically from neighborhood to neighborhood. I’ll help you identify “Is it a buyer’s or a seller’s market?” and break down the important concepts for you to explain to your clients. 

Some Important Definitions 

When supply exceeds demand, we see a buyer’s market. This phenomenon means there are fewer buyers than there are homes for sale. In this scenario, buyers have a bit of leverage. Competition is lower for a home, and the number of days on market increases for listings. A buyer’s market can be determined by calculating the months of inventory. Anything more than six months is traditionally considered a buyer’s market. 

• Buyers have leverage: Buyers have more power in a buyer’s market—which means better negotiation terms.
• Strategic home searching: The high inventory allows buyers to be choosy. Your focus should be on analysis to help your buyers focus on what they really want.
• Standout sellers: Sellers (and their agents) must focus on marketing, repairs, and competitive pricing to stand out and snag offers.
• Preparation and presentation: Sellers should focus on depersonalizing and decluttering their homes to appeal to a wide range of buyers.

A buyer’s market means that your buyers have the upper hand in terms of negotiation. At its core, a buyer’s market means that supply is higher than demand. 

With a buyer’s market, new listings are common. You can expect to see: 

• High real estate inventory
• Fewer interested buyers

The Sellers Market 

• Sellers’ advantage: Sellers have the upper hand due to limited supply. You can expect quicker sales and potentially rising prices due to high competition and scarce supply.
• Quick decisions for buyers: Due to the intense competition, buyers must be fully prepared to make a strong offer—sometimes even above asking price.

• Strategic pricing is key: Sellers (and their agents) should price homes to attract buyers—this could spark a bidding war that drives up the price. Pricing can fluctuate rapidly in a seller’s market.

• Sellers still need to prepare: While the market favors sellers, buyers still gravitate to well-prepared listings priced right, marketed effectively, and presented in the best possible light. These homes will stand out and may even sell quicker (and for more money)!
• Help your buyer navigate challenges: Your buyers will have limited leverage in negotiating the deal. They also need to move fast. Help coach your clients on patience as well as being ready to act fast when needed.

When demand exceeds supply, we see a seller’s market. This means there are fewer homes than there are buyers. This has been a common challenge for many agents and homebuyers in the market lately. 

In this scenario, sellers have the upper hand in negotiations. Buyers are hungry for homes, and there aren’t enough to go around. Traditionally, the number of days on market is low. A seller’s market is outlined by calculating the months of inventory

Top Secrets for Buyers in A Buyer's Market

There are a lot of advantages to purchasing a home in a buyer’s market vs a seller’s market. You’ll need to help your buyers be specific about what they want in a home—remember that in this market, you and your buyers have the upper hand in a negotiation! Agents must be diligent about analyzing comps, exploring available properties, and leveraging the number of days on market to help their buyers score a better deal.

Top Secrets for Sellers in a Sellers Market

For those sellers in a buyer’s market, you must be strategic about selling your home. We have some tips: 

• Make your property stand out through marketing and continued outreach
• Make those needed repairs
• Depersonalize and declutter 

As a Canadian homeowner looking to maximize your tax return in 2024 and beyond, I have here 4 new essential tips to help you make the most out of tax season.

First, make sure to take advantage of the Home Buyers' Plan. If you purchased your first home in 2023 or plan to do so in 2024, you can withdraw up to $35,000 from your RRSP tax-free to put towards your down payment. This can lead to substantial tax savings.

Second, keep track of any home improvement expenses. Renovations that increase the value of your home can be claimed as a capital expense, reducing your taxable capital gains when you eventually sell your property.

Third, don't forget about the Principal Residence Exemption. If you've lived in your home for the entire year, you can designate it as your principal residence and avoid paying capital gains tax when you sell. Just make sure to keep records of your residency.

Lastly, consider hiring a professional accountant to help you navigate the complexities of homeownership tax deductions. Their expertise can save you time and money in the long run.

Now, Let's dive in deeper:

First Home Saving Account 

Saving up for your first home is a significant goal for many Canadians. The new First Home Savings Account (FHSA) assists you in saving up to buy or build a qualifying first home, tax-free up to certain limits).

If you opened an FHSA (First Home Savings Account), you can claim up to $8,000 in contributions made by the FHSA by December 31, 2023 as a deduction from this year’s return.

Although it’s helpful to know about the tax credits and deductions, it’s still important to speak with an accountant or tax specialist to make sure that you’re taking full advantage of the credits and deductions available to you.

Residential Property Flipping Rule

Secondly, since January 1, 2023, if you’ve owned a property for less than 365 days before selling it, the profit from the sale is now classified as business income rather than capital gain. There is an exception to this rule: you might qualify for an exemption if the property was already considered part of the taxpayer’s inventory or the sale was due to unavoidable circumstances. 

Home Office Expenses for Employees 

Working from home has a lot of great benefits for better work-life balance, and also has some tax incentives, too. Canadians can claim home office expenses such as office supplies, phone/internet expenses, and the portion of home space used for work.

However, there has been a change regarding the method used to claim home office expenses for employees who worked from home in 2023. The $2-per-day temporary flat rate for working from home during the COVID-19 pandemic in 2020, 2021, or 2022 is no longer applicable.

Now, employees must use the detailed method and fill out Form T2200, a Declaration of Conditions of Employment, signed by your employer.  

Multigenerational Home Renovation Tax Credit 

Families that follow the “more the merrier ” approach might be eligible for the Multigenerational Home Renovation Tax Credit (MHRTC). This refund is available to those who have renovated their homes to accommodate more family members, provided the space created meets specific criteria.

The renovated space must meet specific criteria, including being self-contained with a separate entrance, kitchen, bathroom, and sleeping area, and complying with local regulations. 

Another primary eligibility factor for the Multigenerational Home Renovation Tax Credit is that either the occupant of the current residence or the new secondary unit must be over 65 years old. The MHRT incentive can be applied if a family member between 18 and 64 is eligible for the disability tax credit.

Thank you for taking time to read, for more essential real estate tips and tricks You can sign up here

Talk again soon!

Are you a first-time homebuyer looking to purchase a strata property? Congratulations on taking this big step! But before you sign on the dotted line, it's crucial to understand what's in the strata documents. These documents hold important information that could impact your ownership and living experience.

In this blog, I will break down everything first time home buyers need to know about Strata documents and condo living. Strata documents can be overwhelming for beginners, but understanding key things to watch out for can help protect your investment and avoid potential issues down the road. From common red flags to important sections to pay close attention to, I cover it all for you. 

For a robust real estate experience, you need proper home buyer education and adequate home buying tips that will make your property investment actions worth the while. Especially when it comes to strata, you want to know more about the strata management.

The three important information you need to know are:

1. Review the bylaws. These are the rules and regulations that govern the strata corporation and its residents. Make sure you understand what's allowed and what's not allowed within the strata community.

2. Pay close attention to the financial documents. Look at the budget, upcoming expenses, and contingency fund. You want to ensure that the strata corporation is in good financial health and can cover any unexpected costs.

3. Look through the minutes of the past strata meetings. This will give you insight into any ongoing issues within the building or community. It's essential to know what you're getting into before you make a purchase.

Ignorance is not bliss when it comes to purchasing a strata property, reach the expert for a guide. Take the time to review and understand the strata documents to make an informed decision.

Let's break it down further:

Financial Statements:

First you review the strata's financial statements to assess the financial health of the condominium corporation. Look for any signs of financial instability, such as deficits or large upcoming expenses. Explain to your clients the importance of a well-funded reserve fund for future maintenance and repairs.

Budget and Fees:

Secondly, please examine the annual budget and monthly fees and what these fees cover, such as: maintenance, utilities, insurance, and amenities. Explain any potential increases in fees and how they are determined.

Do A Reserve Fund Study:

Check if there is a reserve fund study available. This study assesses the long-term financial needs of the strata corporation for major repairs and replacements. Any deficiencies in the reserve fund often means potential special levies.

Bylaws and Rules:

Review the strata's bylaws and rules to understand the regulations governing the property. Any restrictions or obligations imposed by these documents, such as pet policies, rental restrictions, or parking regulations may impact your enjoyment of the property.

Meeting Minutes:

Look over the minutes of strata meetings to get insight into recent decisions, ongoing issues, and upcoming projects. Any significant discussions or decisions that may affect your enjoyment should be carefully noted.

Insurance Coverage:

Verify the strata's insurance coverage and its adequacy. Understand your own insurance responsibilities for personal belongings and any gaps in coverage that you may need to address.

Maintenance and Repair History:

Check for records of past maintenance and repairs. Any recurring issues or major repairs that may indicate potential problems with the property is a red flag  

Special Assessments:

Look for any history of special assessments or indications of future ones.

Legal Matters:

Investigate any ongoing or past legal disputes involving the strata corporation. There are potential risks and consequences of unresolved legal issues.

Please, ask me questions and seek clarification on any points you don't understand about this strata documents article. Ultimately, my goal is to empower you to make informed decisions about your first home purchase.

For more essential tips for first time home buyers subscribe here.

Thank you for taking time to read.

In this comprehensive guide, I break down everything you need to know about possession date. From understanding the legal implications to practical tips for a smooth move-in process, this covers it all.

Learn about the key tasks that need to be completed before possession date, such as conducting a final walkthrough and transferring utilities. Discover how to handle any unexpected setbacks that may arise and ensure a stress-free transition into your new home.

Whether you're a first-time homebuyer or a seasoned real estate investor, this ultimate guide will help you navigate the complexities of possession date with ease. Don't let the excitement of moving overshadow the importance of being properly prepared.

Do A Walkthrough 

First Things First - do a final walk-through of the property to ensure everything is in the condition you agreed upon. Check that all appliances are in working order and any repairs have been completed.

Finalizing Paperwork 

Both the buyer's and seller's legal representatives will ensure that all necessary paperwork is in order and ready to be signed. This includes the transfer of title deed, mortgage documents, and any other relevant contracts. This is done prior to possession day (completion date) in order to make the possession day a smooth one. 

Registration of Titles

Getting ready for possession, after completion day, the buyer's solicitor will register the change of ownership with the relevant land registry office. This process officially records the new owner's details and ensures the property is legally transferred.

Transfer of Funds 

Funds Transfer happens on completion day, the buyer's solicitor will transfer the agreed-upon purchase price to the seller's solicitor. This usually happens through the banking system or via a certified check.

Handing Over Keys

Handing Over Keys: Once the funds have been transferred and all legal documents are signed, the seller will hand over the keys to the buyer. This symbolic act officially marks the transfer of ownership.

Moving In

Celebration Cometh!

Possession day is a celebration day and often a cause for celebration for both buyers and sellers. It's the culmination of weeks or even months of hard work and anticipation. Buyers can finally move into their new home, while sellers can move on to their next chapter.

Overall, possession day is an exciting and important step in the real estate transaction process. It's the day when all parties involved can breathe a sigh of relief knowing that the sale has been successfully completed. Thank you for taking the time to read. If you are a first time buyer and need more information about your options please reach out to meach and I will be more than glad to assist.

Buying a home, getting a mortgage are acts of real estate investing and can be a confusing, so I’ve developed these guides as a simple step by step resource that will help you through the process of home ownership, home buying, especially for first time home buyers, and you can take this as a first time home buying tip resource to keep for your reference. We all have home ownership dreams and we can achieve this by setting home ownership goals, which include reading guides and educating yourself about home ownership matters.

Here is a brief summary of your home ownership journey:

First, is to talk about mortgage. Real estate investing requires financing, you have to obtain a pre-approval before you can begin the search for a home. This is the foundation of your home ownership success.

In your home ownership journey, having a realtor will save you a lot of time as they will be able to narrow down your search within the criteria you are looking for. Some of your criteria may include:

• Price,

• House size,

• Lot size & type,

• Location in relation to schools, work and shopping, and so on.

Home ownership is possible if you follow the home buying tips here listed.

Get Ready to Submit an Offer

Once you have found the home you want, you can begin the negotiating process by making an offer. Your realtor will give you guidance on any subjects you may want to include in the offer.

Even though you have a mortgage pre-approval, you will still want to make the offer subject to financing as all lenders will only give you a final approval once you have selected the property and submitted all of the required documentation to them. Once you and the seller have agreed on the price and terms you can then move on to next step

Offer Acceptance - After your offer has been accepted by the seller you will need to satisfy all of the conditions that the lender has placed on the approval. Some of these may include: appraisal on the property and income confirmation. Your mortgage lender will work closely with you during this time to make sure all conditions are met so your approval is in place in a timely fashion.

Subject Removal - Once you have a firm approval from your lender and have satisfied all of the other conditions that you placed on your offer you can remove the subjects. This means that the contract becomes firm and binding. Now you are getting closer and closer to your home ownership dream that you set on your home ownership goal. At this time, your realtor will require a deposit from you to place in the trust account.

After Subject Removal - After you have removed subjects you should contact your lawyer/notary and provide them with a copy of your firm contract. At some point after you remove subjects & satisfy all lender conditions, the lender will then send mortgage documents to the lawyer. In the meantime, you will need to book an appointment with your lawyer to sign the legal documents for the purchase and mortgage.

Please Read The Fine Prints - Your lender may require that you attend their office to sign documents, try and read to understand before signing. In addition to this, all clients will need to attend the office of their lawyer/notary to sign the legal documents for the mortgage. One important thing you will need at this time is to obtain an insurance policy for the home. All lenders will require that you have insurance in place for the replacement cost of the building. This is just to show that home ownership is key both to you and your lender.

On Completion - Your lawyer/notary will require full payment for items outstanding in the form of a draft no later than the morning which your deal will complete. Items which require payment may often include:

1. Property purchase tax (if applicable),

2. HST (if applicable),

3. Legal fees,

4. Down payment, and so on.

Home possession is next in line for you! This now makes you a new home owner and take responsibility of property ownership. After the completion date is the home possession date. The possession date is when you have the right to move in and is usually two days after the completion date.

Congratulations, you have achieved your home ownership goal!

Thank you for reading, if you find this article useful please share with other first time home buyers who may benefit from it. You can also reach me for a One on One  should you have any clarification or questions you may have.

If you're a first-time home buyer, navigating the process of purchasing a home can be overwhelming. Here, I'll break down everything you need to know about the rescission period and how it can benefit you as a first time home buyer.

The home buyer rescission period is a critical part of the home buying process that allows buyers to back out of a purchase agreement within a certain timeframe without penalty. This period provides buyers with the opportunity to review the terms of the agreement, conduct inspections, and ensure they are making the right decision before committing to the purchase.

In this guide, I'll share the importance of the rescission period, how to effectively use this time to your advantage, and what steps you should take during this period to protect your interests as a first-time home buyer. We'll also provide tips and advice on how to make the most of this crucial time in the home buying process.

So if you're a first-time home buyer looking to understand the ins and outs of the home buyer rescission period, be sure to read until the end. 

What You Should Know About the Program

This is a new initial of the government of British Columbia to help home buyers. In January 3, 2023, the B.C. government implemented the Home Buyer Rescission Period (“HBRP”) for residential real estate transactions. Also known as the “cooling-off period,” this measure will give homebuyers up to three business days to rescind an offer on a home after the offer has been accepted.

Residential Properties Eligible for the Program

Not all properties are included in the HBRP legislation. The rescission period applies to the following types of residential properties:

1. A detached house;
2. A semi-detached house;
3. A townhouse;
4. An apartment in a duplex or other multi-unit dwelling;
5. A residential strata lot, as defined in Section 1(1) of the Strata Property Act;
6. A manufactured home that is affixed to land; and
7. A cooperative interest, as defined in Section 1 of the Real Estate Development Marketing Act, that includes a right of use or occupation of a dwelling.