Envelope Real Estate Brokerage Inc.   Not All REALTORS* Are The Same

Interest Free Loan To Help With Downpayment on a Home in London Ontario


City of London renews commitment to make homeownership easier

The City of London has announced the renewal of a program offering affordable homeownership. This very successful program, previously known as the Affordable Homeownership Program has been renamed Investment in Affordable Housing Homeownership Program and has been improved to offer more Londoners the opportunity to own their own home.

The program consists of an interest free loan for qualifying home buyers to assist with down payment and closing costs.

To be eligible, households must have a gross household income of $55,000 or less, and must qualify for and be pre-approved for a mortgage at a recognized financial institution. The selling price of the home must be no higher than $145,000. In addition to receiving 5% down payment assistance, qualifying home buyers will receive closing cost assistance of 3%.
 
The Investment in Affordable Housing Homeownership Program is a partnership between the Government of Canada, the Province of Ontario and the City of London through the Canada-Ontario Investment in Affordable Housing Program (IAH) which offers low-to-moderate income earners the opportunity to purchase a home in London and Middlesex County.

The federal and provincial governments have set a deadline of March 31, 2012 to expend the funding allocated to the City of London.


                                   About the Program

The Homeownership Assistance Program is an interest free loan providing 5% in down payment assistance to interested eligible applicants in London and Middlesex County only. Qualifying home buyers can also receive another 3% of the cost of the home to assist in paying closing costs including legal fees, disbursements and registration on title.

Applicants must be renters, at least 18 years old, must not currently own a home or a residential property in whole or in part (including recreation or cottage property). Post secondary graduate students may qualify to deduct their annual Canada-Ontario Integrated Student Loan payments from their gross annual income.

Eligible applicants can select a home of their choice in the open market in London or Middlesex County only.  Eligible applicants must meet all the specified requirements, income criteria and must be qualified for a mortgage at a recognized financial institution. A home inspection by a Registered Home Inspector or an Associate/Applicant Member of the Canadian Association of Home and Property Inspectors is also required.

Applications are accepted on a first-come, first-served basis. Those selected purchasers must find a suitable home priced up to $145,000 by the provincial deadline of March 31, 2012 (the actual closing date of the sale may be after that date).
For full details on the program or an application package please visit www.housing.london.ca or call 519-661-2500 ext. 5523.

  


Get The Edge When Buying Real Estate



        When I first got into real estate I had two choices, first, I could do everything in my power to ensure my clients had an exceptional and successful real estate experience or two, be like 91% of all the others in this business who don’t seem to get it.

Sound Logical?

Seems Easy Enough?

It’s not that Simple.

You see, not everybody follows the Golden Rule, or returns phone calls, or discloses defects in their home, are reasonable or ethical or showers daily!

One of the first things I did was to put myself into the shoes of a buyer to learn what their fears were, concerns, stay up at night tossing and turning thoughts and over the years have fine tuned a check list from start to finish that would enable me to help a buyer, either their 6th home or their first, through the process.

My aim? To provide all buyers the guidance & protection required to ensure a satisfactory completion of a purchase and have them rave about me.

So, here is a small glimpse of it.

 

Welcome to The Envelope Preferred Buyer Program, an exclusive buyer satisfaction program available only through Envelope Real Estate Brokerage Inc. and Ty Lacroix!

A recent study done in June of 2011, 65% of real estate buyers were definitely satisfied with their sales representative.  Think about that – that means fully 35% were not!

The same study indicated buyers expect their sales representative to perform very few functions.  For repeat buyers:

  1. 62% wanted their sales representative to find the right house,

 

  1. 19% wanted their sales representative to negotiate the price after checking against comparable prices, and

 

  1. 14% wanted their sales representative to complete the paperwork properly.

This is not a long or complicated list!

Now, how can one third of all buyers be dissatisfied

with the performance of their sales representative?

 

Let me let you in on a little secret.  Most sales representatives don’t plan to take care of their clients!  No, I don’t mean they don’t intend to satisfy their clients.  They do.  They generally have the best of intentions.  They just don’t have a plan to accomplish what they intend.

 

Ever hear of the old phrase “A failure to plan is a plan to fail?”  Well, welcome to the world of the average real estate practitioner.

 

And it doesn’t matter how many letters or designations you can find after their name.  It’s always the same.

 

They have no systematic way of helping a client

through the home buying process.

 

That’s exactly why the Envelope Preferred Buyer Plan was made available.  It’s a unique system specially designed to consistently deliver customer satisfaction by addressing the three primary goals of buyers mentioned above.

 

More specifically, it’s a step-by-step blueprint to ensure client satisfaction – not a haphazard approach depending on the crisis of the day.

 

Now some of you might be saying “I don’t want a rigorous program.  The right home for me isn’t going to be the same as for someone else”.  And you’d be quite right – the right home for you is going to be different.

 

However, let me ask you this:  Regardless of your destination, would you want the pilot flying your airplane to use a checklist or would you prefer they wing it because your destination is different? (Well, you might say that is not a good analogy, but l’ll let you in on a secret. I’ve seen deals fall apart and dissipate in thin air!)

 

I think most you can see that only by employing a well-designed system do you have the best chance of consistently obtaining the results you want.

 

So what are the components of The Preferred Buyer Program and how does it work?  The exact details of The Preferred Program provide a competitive advantage and are therefore proprietary but we can look at how it generally addresses the principle item buyers want from their sales representative – finding the right home.

 

Generally the first thing most buyers do when they start thinking of a new home is to start looking in the newspaper, the real estate magazines at the supermarket, and more and more, the internet.

 

If you use this approach for anything other than

to get a general feel for the market, I can almost

guarantee you’re going to be frustrated!

 

Why?  Well, for the moment lets skip the fact we have not invested the time to analyze your requirements, wants, financial qualifications, etc., and just look at this approach to searching.  And let’s further suppose we’ve already found nothing on the market that’s suitable.

 

When a property comes onto the market where do the best “buys” go?  Now I know everybody thinks the real estate sales representative gets the best buys, but let me assure you, they don’t have the money.  91% don’t anyway .So, where do they go?

 

They go to the buyer who has the first

opportunity to say yes!

 

And guess who that is?  It’s the buyer who’s’ sales representative is constantly checking for new listings that meet their clients criteria, the buyer who is already pre-approved for a loan, and who is ready move emotionally when that right property for them comes onto the market.

 

Can you figure out which properties show up in the newspaper, the magazines, etc.?

 

It’s either already sold or

It’s a property my client has rejected!

 

Now would you prefer to choose from the gems or choose from the left overs?  Does it take a lot of effort to constantly check for new properties for each client?  Absolutely!  Does it pay off?  Absolutely!  Is it available to everyone?  Absolutely not!

 

This is just one example of the advantages you’ll enjoy with the The Preferred Program system.  There are lots more.

I’ll be providing you with a First Look buyer’s kit.  In that kit I’ll be providing some additional material includinga brief on negotiating strategy factoring in the current market trends, comparable prices, and personality styles.  There’ll also be more detailed material on the anatomy of a sale so you’ll know exactly what to expect and when.  I’ll include copies of a sample offer so you’ll have the opportunity to review it and ask questions before we find your new home.

 

My goal is to make you so pleased with my First Look program you’ll become an outspoken advocate for my business.

At the beginning I related how fully one third of the buyers couldn’t definitely say they had a positive buying experience.  As you approach this exciting task of finding your new dream home ask yourself:

“Within which group are you going to find yourself”?

The choices you make about which sales representative you use will determine your fate.

  

 PLEASE NOTE: In some cases, depending on your security settings, this email may be sent to your junk main folder 



A Helpful Guide for Buying the Right House, At the Right Price

The information however is based on facts, actual case histories and of those whose real estate transactions have been either successful or heart breaking! Finding the right home, and making a prudent financial investment is more involved than just “buying right.” If you’re like most people, the decision to buy a home involves a number of stresses and strains. For about 80% of buyers, it’s the single largest financial transaction of their lives. Mistakes in any part of the buying process can cost you thousands. That’s why I wrote this exclusive report…to give you a number of helpful, straightforward tips for buying a home that meets your needs, AND in time become a wise financial investment for you. Here are a few strategies (I call them “strategies” because so many home buyers

2012 London Ontario Condo Guide

What do condos sell for in London Ontario? What kind are there. What's a good location in London? What about maps of London, recreational, business, nightlife, education, health care, the arts, the airport. Being either a long time Londoner or a newcomer, There could be a few surprises here, especially if you are looking to buy or sell a condo.

2012 London Ontario House Guide

Curious about home prices in London? What areas homes are going for? Looking for schools, recreation, medical resources in London? This 20 page report has proven extremely valuable to both home sellers and buyers. Links to oodles of London contacts and more.

83 London Home Buyers Saved Thousands

These 83 London Home Buyers Could Have Chosen Any Agent in London To Help Buy Their Home , They Followed These 10 Steps and Saved, That is Why They Chose Ty Lacroix Buying a home can be a “hair rising “experience. It can be a roller coaster of emotions …. Finding the right place…. Securing a mortgage….. moving in. And, if you’re like most of us, your home will be your largest investment. The emotions over such a large and personal purchase can often cloud good business judgment. Many home buyers do very little research before “diving in” and investing their hard-earned money. Before doing that, doesn’t it make sense to be as informed as possible? That is what the following is all about. It’s designed to help you avoid 10 common, critical mistakes many condo buyers make. If you follow these 10 suggestions, with the help of the right real estate professional, you’ll make a good sound business decision that you’ll be happy and proud of for years to come.


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How to Handle Buyer Agency in Ontario for Real Estate


 The Buyer Agency Agreement

Earlier this week, I wrote a blog with advice on what to look for in buyer agency and working with an agent or a broker of record.  So what happens after you interview a few agents and find one you think will be a good choice?

Most agents want you to sign some sort of agreement that formalizes your agreement - often it is a legal requirement of their jurisdiction.  And without a written agreement, there are no guarantees the agent who finds you your new home will get paid. 

Most agency agreements say, in effect, that the agent will help you find a place, and you agree to forsake all other real estate agents during your search - actually, it's been described as asking a prospective buyer to get married before the first date. 

Now, at this point, you know enough to want to go out with this agent on at least one date (a home shopping excursion).  Still, you may feel uncomfortable signing a contract that obligates you to this agent until you buy or die. 

How can you handle it?

In Ontario, licensing laws require the agent to give you a written explanation of how the brokerage thing works.  Who represents whom in the transaction?  And whether or not Provincial regulators want you to sign an actual agreement, many agents will not show you a single house without one. 

Whatever the laws might be, I think that it's a very good thing to have your agreement reduced to writing.  I also think it's important that you understand whatever you sign, and that it be written in understandable English and in legible print.  And keep in mind, this form is written by RECO (Real Estate Council of Ontario), and there is a lot of language in there to ensure that when you buy a home, that agent will get paid, either by you or by the seller.

Also, keep in mind that you are free to negotiate changes any of the boilerplate language if there are terms or conditions you can't live with.

Here are some of the major issues it will include:

  • How much does the broker charge and how is that paid?  In Ontario, the sellers usually pay the brokerage fees, and I've even heard agents telling people that their services to buyers are "free".  Not quite.  If the listing company has negotiated a payment from the seller (called a "co-op" commission) to your agent of less than the amount of the fee he charges, the agreement may say that you must make up the difference.  In other words, if your agreement calls for a 3% payment, and the co-op commission is only 2.5%, you may have to write a cheque for the difference at settlement.
  • Does the buyer broker charge an up-front contingency fee? If so, how much is it?  Is it refundable under any circumstances?  Is it credited back to you at closing toward your down payment and closing costs?  This is one way that an agent can help weed out real buyers from tire kickers, and it's becoming more customary.
  • How long is the term of the agreement?  If you are not sure you want to enter into something long-term, and if the agent insists that you have to sign something, make it a week or so.  You can extend your contract at the end of that time - assuming the agent is doing a good job and you both want to continue the relationship. 
  • Is it possible for you to break up once you've signed on the dotted line?  If it turns out that you've made a mistake and don't want to work with this agent after all, how do you get out of it?  Most brokers will let you out, but they don't have to make it easy for you, unless you have included language that lets you terminate. 

Whenever I enter into a buyer brokerage agreement with a new client, I know that I'm going to have to earn the trust and loyalty that our buyer broker agreement represents.  But the agreement has got to be more than a piece of paper.  And there will be important elements of the relationship that can't be written into a boiler-plate contract.

Between the time we meet and the time we arrive at closing, a lot can happen. 

  • We have to be certain we are communicating clearly throughout the process, and we need some mechanism for making sure that we are all trying to find the same type of property.
  • You might get out-bid a few times before you submit an offer that actually works.
  • There might be issues with the home inspection, title search, or lender that can threaten the transaction once you think you have a deal. 
  • The seller of your dream home could turn out to be un-cooperative or difficult.
  • Any one of the cast of characters involved, including me, the lawyers or even you, can make a mistake along the way.  And you have to have faith that we can fix whatever it is - we almost always can.

I believe in agency agreements for quite a few reasons and I also have a cancellation agreement that you can cancel at any time. After 9 ½ years I have never had one cancelled yet but sadly I have had to ask some buyers to work with someone else.

To go through how I believe a real estate transaction should be the protection procedure for both of us and the duties required from both of us, what our expectations are and the standards I go by, let’s get together for 45-60 minutes or less.

Spending thousands of dollars making poor choices and decisions is the biggest mistake I see home buyers make.

 


Doing The Right Things in Real Estate Pays Off


How many times have you asked for information from a real estate website and not receive an answer in a timely matter or even at all?Or shown properties that were not even close to what you wanted? Or in your price range?

Or forced to jump through 21 hoops of paperwork before you could even get to see a property?

Here is an email from a recent client and her response to how I and my associates at Envelope Real Estate worked with her and her family!

I was hestitant to publish this as it feels like I am bragging and blowing my own horn. I am in a way but I am also very proud that all the hard and necessary work in preparation and the process of real estate is very rewarding.

Hi Ty,

That's a lovely gesture, thank you.  With the on-set of cold weather it's especially nice to know that there will be some extra food for tables.  Really do appreciate all your work.  My husband can probably attest to the fact that I don't usually hold back in the feedback department, requested or otherwise, and can normally find room for improvement.   In your case, all I can do is focus on what you did well:

(1)  The first draw was your website... for  a newcomer to the London area it is very informative and easy to navigate. 

(2) Your response times were very good (when I was first looking for someone to work with emails and phone messages to other realtors wouldn't be returned for 72 business hours... enough time for me to go buy a house elsewhere!). 

(3) Exceptionally low pressure / no contracts etc, like you say on your website but actually true!

(4) Excellent listener and matched needs, even when not vocalized, with the appropriate price point and features.

(5) You demonstrate clear market knowledge.

(6) You're patient (even with my mother!); and

(7) You sealed the deal with terrific negotiating.

I think you did a fabulous job and would certainly recommend your services.  

Best regards,
Helen & Adrian


Here is what I sent them:


Hi Helen and Adrian:

                             Please accept my congratulations on the purchase of your new home. I hope that you have enjoyed working with my associates and I, and that we made your home buying experience as easy, and as enjoyable, as possible.

Please let me know if in any way we can improve or change the way we have represented you. Your opinion matters to me, and it is through your comments that enable me to fine tune our systems and services.

Over the years I have always struggled as to what to give to my clients for a housewarming gift and for the last 2 years I have been donating in my client's name to charities that I feel require a direct infusion of money and not go to a professional management team or officers.

With your purchase and in your name, I gave $388.00 to ____________________ who in turn feed 100's of hungry London families.

The highest compliment that I can receive is to be referred by you to a future home seller or homebuyer. If you know of anyone who is thinking of selling or purchasing a property, please pass along my name.

Thank you for entrusting me to represent you in the purchase of your home, and once again, Congratulations!

Warmest regards

Ty

PS:  To date, I have donated $41,583.00 Thank you!


How a REALTOR Works For You or Should Work For You


Things You Should Know Before You Hire Someone to Represent You to Help in Buying Real Estate.

Not all real estate agents are the same. If you decide you want to purchase real estate, you need some good information before you make any moves. The most important consideration is: Are you comfortable and confident with the agent you selected? Are they listening to me?

What does it cost as a buyer to use an agent?

The compensation that an agent receives typically comes from the seller’s proceeds. In other words, there is no cost for a buyer to use an agent in the traditional agent/buyer relationship.

Can my agent give me information regarding properties from other companies?

Yes, if that other company is a member of Multiple Listing Service (MLS)- which most real estate companies are. For Sale by Owner (FSBO) properties are not listed on MLS so an agent likely would not be able to provide information regarding them. However,  a good agent will contact that FSBO (because the agent is working for you!)

What about new homes?

Again, a good agent can take you through the homes you and the agent have selected, AND, negotiate on your behalf.

What if I find a property of my own?

You should contact  your agent and not the property owner or the agent listing the property.Having the address or the MLS number is very helpful and will assist your agent in gathering information regarding the property.

What type of information will my agent need from me?

An agent will need any type of information regarding the type of property you are looking for that isimportant to you. For example, price range, location, number of bathrooms and bedrooms, garage etc. A good agent will ask about schools, parks, transportation, your hobbies and other interests so that you will be compatible with your home location. As well, have you been pre-approved for financing? (Askme to show you how you can save thousands by being pre-approved!)

Can I go to open houses without my agent?

Yes, but make sure that that you indicate that you are working with an agent already. This will prevent unwanted follow up calls or pressure from other agents

How do I find out about new properties?

Depending on your preference and urgency, a good agent will email or call with new listings that match your criteria. As well, a good agent with a great network of contacts will know about properties that may be available soon, but not yet on the market.

When I find the right property, then what?

A very good agent will do the following:

. Do a comparison of the area to see that the price is consistent with the other comparable homes and decide on what price you should offer.

. Prepare an offer that you FULLY UNDERSTAND and add clauses that will protect you such as: Financing clause: Home Inspection Clause: Insurance clause: Agency Relationship (whothe agents represent) and other clauses that will protect your investment and make your home buying experience a pleasant one.

. Present the offer and if the offer is countered back, work with you and the seller to arrive at a satisfactory arrangement.

. Be present at the home inspection

, Follow up with all waivers and assist your lawyer if requested to with any information required.

. Do a final walk-through with you BEFORE you sign any final legal papers!

. Be available AFTER CLOSING to assist you with any unforeseen problems or questions arise.

What if I am unhappy and want to switch agents?

Let the first agent know that you are unhappy and the reasons why. See if you can work out the issues with them. If not, tell the agent you no longer want to work with them and find another agent. (I have a cancellation agreement I offer to all my client’s, you can fire me anytime if I do not perform or act in the way I said I would!)

In Summary:

Work with just one agent

Make sure you tell your agent everything

Always tell other agents you are already working with an agent

Consider your agent as a professional as she or he is. 

  


A Home Buyer's Dilemma?


   As a home buyer, being your first time or your 5th, most buyers  face at least one of these situations.

 
¨      You’re looking to make one of the most important purchases of your life and you don’t want to get burned because of not knowing whom you can trust, or making a mistake that could cost you thousands of dollars later.
 
¨      You think you know the values in the marketplace , but are not really sure. You know how much you are pre-approved for, but you don't want to go that high. What you really would like is to be assured of getting the most that you can for your money, without having any regrets after your closing.
 
¨      You’re feeling out of control because there are so many unanswered questions. Making it hard to know where to start. 
 
     Is there an easy way to buy a home?
 
    Some may not think any of these as a dilemma , but as a REALTOR® , there is no need for a buyer to have this uncertainty and perhaps fear of the unknown.
 
       If any of these situations sound familiar, I have oodles of fact-filled information will help prepare you for the purchase of your next home. Not only that, as a REALTOR® ,I have helped hundreds of buyers through the process.
 
 Doesn’t it make sense that in order for you to make one of the most important decisions in your life you should be well informed and protected by working with a great REALTOR®?
 
Go to Buying a Home to learn how you can save thousands when buying a home and a few headaches!
 
 
 

8 Huge Errors Buyers Make & 1 Gigantic One


     Shopping for a home is an emotional experience. It’s also time consuming and comes with a myriad of details. Some buyers, (and their agents), however, caught up in the excitement of buying a home tend to overlook some items. Their home purchase then turns into an expensive process! These errors generally fall into three areas:

  • Paying too much
  • Losing a dream home to another buyer
  • Buying the wrong home

 

When you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase.

   Bidding without sufficient information

What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the market and comparable homes, you basically are bidding blind. A professional REALTOR® who represents you, the buyer, can offer an unbiased opinion on the value of a home, based on market conditions, condition of the home and neighborhood. Without this knowledge, you could easily bid too much, or worse, miss out on a great buying opportunity.

   Buying the wrong home

What are you looking for in a home? A simple enough question, but the answer can be quite complex. More than one buyer has been swept up in the emotion and excitement of the buying process only to find themselves the owner of a home that is either too big or too small. Perhaps they didn’t consider the drive to work, the distance to school or the many fix-ups that they really want to deal with now that the excitement has died down. Take the time now, to clearly define your wants and needs, discuss these wants and needs with your REALTOR®, put it in writing and use them as a yardstick with which to measure every home you look at.

 Unclear title

       Before you sign any documents, be sure the property you are considering is free of all encumbrances. A good REALTOR® will ensure that he has enclosed clauses to protect you. The last thing you want to discover before you move in is that there are tax liens, debts, undisclosed owners, leases, contracts or easements.

 

   Can you now see why it is very important to have an experienced, knowledgeable and trusting  REALTOR® to help you?   A thorough systematic approach to real estate buying and selling, it can save you time, money and frustration!

 Inaccurate Survey

     Before the purchase is completed, a survey or title insurance should be a must. Most lenders will not issue a mortgage without a survey or title insurance. Again, a good REALTOR®  will have a clause in the offer to protect you and make sure you discuss this with your lawyer.

Unexpected repairs

     Don’t expect every seller to disclose every physical detail that will need to be attended to. Use a professional home inspector to conduct a thorough inspection of the home, before you close the deal. A good REALTOR® will enclose a home inspection clause in the offer and only if the inspection report is suitable to you, would you waive that condition. (See my report: “The Role of a Home Inspector”) A professional REALTOR* will know the best home inspectors out there and should be able to give you the names of two or three.

        Not Getting Mortgage Pre-approval

Pre-approval is quick, easy and free. Knowing before hand what you qualify for will help you to avoid disappointment. When you are shopping for a home, this will give you more power; the seller will consider your offer as a serious one.

   Hidden Costs

Make sure you identify and uncover all costs-large and small- far enough ahead of time. A good buyer’s agent will discuss this with you, and you should discuss all fees and costs with your lender, your lawyer and any other professional you may use. (See my reports;”The role of a lawyer”, “The role of a lender”

 Rushing the Closing

Take your time during this critical part of the process. Do you understand your mortgage details? Has any thing been forgotten? Does the paperwork and documentation reflect your understanding of the transaction? Will your buyer agent take you through your planned house 2-3 days before closing? (To ensure that there is no unusual changes in the condition of the home, that what is supposed to stay-stays).

The Biggest Gigantic Error I See?

Not interviewing and hiring a good REALTOR®.

A friend of a friend or a cousin or a referral may be fine, I respect that, but, do your homework. I cannot tell you how many times I have heard horror stories of people working with inexperienced or lazy real estate people.


GREAT BUYER SITES TO VISIT!


Canada Mortgage and Housing Corporation


Great information for home buyers, insurance, qualifying, money saving ideas, loan and equity ratios and much more.
Visit www.cmhc.ca

 

 

 

 


Is a Home a Good Investment?


As a fairly general rule, homes appreciate about four or five percent a year. Some years will be more, some less. The figure will vary from neighbourhood to neighbourhood, and region to region.

     Five percent may not seem like much at first. Stocks (at times) appreciate much more, and you could easily earn over the same return with a very safe investment in treasury bills or bonds.  But, take a second look ...

   Presumably, if you bought a $200,000 house, you did not pay cash for the home. You got a mortgage and lets say you put as much as 20% down, that would be an investment of $40,000.

  At an appreciation rate of 5% annually, a $200,000 home would increase in value $10,000 during the first year. That means you earned $10,000 with an investment of $40,000. Your annual " return on investment" would be a whopping 25%!

   Of course you are making mortgage payments and paying property taxes, along with a few other costs. Your rate of return when buying a home is much higher than most any other investment you can make. If you would like to know more about other home buying ideas or tips, let me know and I will gladly see that you are informed and knowledgeable before you purchase.

Ty Lacroix Broker of Record & Owner Ty Lacroix Broker of Record & Owner 519-435-1600 Email Ty