Dennis Philps

Did you know that:

1. Edmonton sits on 670 square kilometers [264 sq. mi] of land, making it larger in area than Chicago, Philadelphia and Detroit and , as well, one of the lowest urban population densities in North America?

2. Edmonton’s population, according to the Apr. 2009 census, now numbers 782,439–an increase of 30,000 over the previous year?

3. Edmonton’s metropolitan area comprises 36 municipalities–the likes of St. Albert, Sherwood Park, Spruce Grove, Beaumont, Leduc, Fort Saskatchewan with a combined population [2006] of 1.034 million?

4. Edmonton shares the same latitude as Hamburg, Germany and Liverpool, England?

5. Edmonton is known as Canada’s ‘Festival City’ because it promotes more than 30 festivals each year-including The Festival of Trees [Dec], Canadian Birkebeiner [Feb], International Children’s Festival [June], Taste of Edmonton [July],the Rexall Edmonton Indy [July] and the Edmonton International Fringe Festival [Aug]?

6. Edmonton was incorporated as a city in 1904 when the population was 8,350 and became the capital of Alberta when the province joined Confederation on Sept. 1, 1905?

7. Edmonton boasted the first licensed airfield in Canada in 1929 — named Blatchford Field which was used by notable pioneer pilots like ‘Wop’ May and Max ward to distribute mail, food and medicine to Northern Alberta?

8. The North Saskatchewan River, which divides Edmonton into two parts originates in the Columbia IceField in Jasper National Park and ultimately empities into Hudson’s Bay?

9. Edmonton’s River Valley constitutes the longest stretch of connected urban parkland in North America which is 22 times as large as New York’s Central Park?

10. Edmonton was judged to have the ‘best economic potential’ of any North American city by ‘FDi Magazine’ in 2006?

Edmonton, whose motto is ‘Industry, Integrity, Progress’ is a thriving city that one can be proud to call ‘home’!

You have heard the expression: ‘Life is fragile. Handle with care’? It is a sobering expression that calls us to attention.

Recently I heard the story of a successful businessman who was just completing his new home and anticipated moving into it shortly with his family. Then the unforeseen happened. He was tragically killed by a drunk driver!

Unfortunately there was no insurance on the financing for the new home. His widow was left with the financing challenge of owning two houses and the responsibility of paying both sets of financing. This added burden only added to the stressful grief adjustments she had to make.

Therefore, it seems prudent that when you set a mortgage in place, you also take out a ‘term’ insurance policy for the same amount. Accordingly, should any one of the signatories on the policy be faced with the issues of the widow above, the mortgage amount would be covered and with the proceeds of the term insurance policy paid out. If nothing happens to the signatory[ies] and the mortgage gets paid out, the term insurance policy can then be safely cancelled.

To me, it seems most prudent to look ahead and prepare for anything that might happen given the fragility of life!

One of the most exciting dimensions of being a Realtor in Edmonton is the wide diversity of product available for sale. There is something for everyone in the marketplace, from the most affordable to the highly luxurious, from the entry level to the investment opportunity, from the city-dweller to the acreage resident, from the condo buyer to the single detached family home. Whether someone is starting again, moving up, moving down, retiring or investing, there is sure to be numerous possibilities available here.

For example, in Edmonton proper, on Nov. 24, 2009 there are 1569 single family detached homes listed for sale ranging in price from $69,900 to $18,000,000! As well, there are 1457 condos for sale which range in price from $59,900 to $2.9 million.

If you are seeking an acreage within a 40 minute drive of the city, there are possibilities in every direction. Typically, the closer the property is to the city, the most pricey it will be. Some acreages are serviced by city water; others rely on a cistern or a drilled well.

Investment properties are normally located close to one of the educational institutions–for instance, the University of Alberta, Grant MacEwan College or the Northern Alberta Institute of Technology. With a shortage of student housing, well-placed investment properties usually give a great return!

There is something for everyone [barring an oceanfront or tropical property!] in Edmonton!

Realtors deeply appreciate referrals that are sent to them by past clients, friends or business associates. There is usually an immediate credibility that has been established by way of the person who does the referring.

That past client or friend has been impressed with your level of service, your expertise and people skills to pass your name along. They expect that the realtor will treat their client with the superior level of service they so appreciated!

Any realtor must treat that referred client with the highest level of priority and service. Otherwise, that referral stream will likely dry up very quickly as the person referred shares their disappointment with the one who referred them.

Watching the apparent pain and disappointment in Jesper Parnevik, the Swedish professional golfer, as he was being interviewed about his role in introducing his former nanny, Elin, to Tiger Woods brought the risk of referring into clear relief. Now Jesper regrets the day he and his wife made that introduction. He said he owes Elin an apology.

I take all my Edmonton referrals seriously for three reasons: 1. I want to ensure that the referring party never receives any negative feedback about my performance; 2. I want to ensure that my new client is fully satisfied in the their home purchase; 3. I want to enlist that new client as another member of my referral network. Unmistakably, it is well worth my time to offer all my clients a superior level of service.

Check out my websites at www.edmonton-real-estate-info.com and www.edmonton-homesearch.com.

As a Realtor interested in protecting the interests of my clients, I strongly recommend that every buyer have a home inspection conducted by a professional home inspector.  In one of the largest financial investments they will ever make, I want them to be certain that a qualified ‘third party’ will identify all the major issues they might face if they purchase the property.  Peace of mind one way or the other (My clients have walked away from a potential home purchase based on an unsatisfactory report!) should be an end result.

I have tried to steer my clients to inspectors from franchised companies who can demonstrate training and knowledge in home inspections together with ‘Errors and Omissions’ Insurance to cover my client in the event that the inspector misses something in his written report.  I am aware that one of these well-known company stepped in and paid a homeowner over $5000 when it was discovered that the acreage sewage system that they had paid to have inspected and was designated as ‘satisfactory’ was proven, upon possession, to be completely unsatisfactory!

Most of the inspectors I have worked with over the 17 years I have been in real estate have been qualified and helpful.  However, I can vividly remember two inspectors hired by my client with whom I was not acquainted (Believe it or not, there are at least 225 Home Inspection companies in the province).  One I had been warned about–he had a reputation of giving a failing grade to almost every home he inspected; true to form, he scared my clients my grossly over-inflating the cost of re-doing some minor depressions in the front landscaping to the point where they walked away from an otherwise reasonable house.

On another occasion, I met a home inspector who arrived at the house with a short-stepladder that prevented him from inspecting the roof (‘I’ll do a visual inspection,‘ he declared.  But with the flat roof, he had to go two houses away on the sidewalk to complete this unsatisfactory step).  This same inspector then told us, ‘This home does not meet current building codes.’    I then reminded him that the house was 30 years old and met the code at the time!

In order to protect the consumer, the Alberta Government has just announced that beginning on September 1, 2011, all home inspectors must be licensed by the provincial government.  Accordingly, all inspectors must have a degree, diploma or certificate in home inspection from an approved educational institution and must successfully complete a test inspection.  Conditional licenses valid until March 31, 2013 will be issued to those who are in the process of acquiring the necessary qualifications.  Qualified inspectors will be able to make recommendations on deficiencies they discover in a particular home such as recommending the potential buyer obtains expert opinion; they will not be permitted to estimate the cost of any repairs or improvements.

In a further step to protect home-buyers, home inspection companies must:

• Carry ‘Errors and Omissions’ Insurance
• Post a security deposit to cover consumers if the regulations are not followed
• Establish the specific parts of the home and property that are covered in the inspection
• Not include contract clauses to limit the liability of the home inspector

Recently in Edmonton, I have been involved in several multiple offer situations on properties that have been on the Edmonton Real Estate Board listing site on the first day.   This is not an uncommon scenario in March 2010.  Many buyers are looking for homes ahead of the proposed mortgage changes coming in April.  This situation says two things to me.

First, a word to sellers.  It is a great time to be selling!  However to get the kind of activity that I have just described, your home must be in tip-top shape and priced aggressively.  Serious buyers have been searching for some time and are very familiar with good value and ‘over-priced’ listings.  Priced right at the beginning gives you a competitive edge.

Second, buyers need to be prepared to enter a real estate environment where the advantage is tipped in favor of the seller for the best properties.  In order to compete, buyers MUST have secured a written MORTGAGE PRE-APPROVAL in advance.  Next they need to be as flexible as possible to fit in with the seller’s wishes.  Then they must be prepared to put a substantial cash-down-payment of at least $5000 as part of their offer to purchase.  Furthermore, they must be prepared to put as few conditions to their offer to purchase as possible [eg., financing and a home inspection] and have them removed as quickly as possible [4 0r 5 working days].  Finally, on select properties, they must be prepared to offer more than the listing price.

How much higher should you offer?  The answer to that question depends on: (a) what your financial restraints might be; and (b) whether or not you can comfortably walk away from that home or condo if the other offer [or offers] out-bid you!  It would not be unheard-of to have an offer $5000 or more above the asking price.  If you lose one offer, move on quickly to the second with your realtor!

In this market, it is fun to be a seller and aggravating, at times, to be a buyer!

Need some professional help?  Call me!  I will be happy to guide you to a successful conclusion!

In the fast-paced Edmonton Real Estate market, it is vital that every serious buyer secure a written mortgage pre-approval from their lender in advance of ever looking at properties.  This will reveal what price range is within your grasp and will lock in a guaranteed interest rate for a period of 90-120 days.  Make sure, in advance of April 19, that your lending institution match a current mortgage broker’s discount rate!

The documents that you should take to your lender should include:

(1) An employment letter from your company, dated and signed on company letterhead, which will indicate your employment history, the salary paid, the number of hours worked each week, the number of hours of overtime worked each week if applicable, and the employment prospects for the future.  The letter must be written after the company ‘probation period’ has expired;

(2) A current pay-stub which shows your year-to-date income;

(3) A T-4 slip for the most recent two year period together with your ‘Notice of Tax Assessment’ form;

(4) Copy of your current RRSP investment statement that could be used to verify a source of the needed 5% [or more] cash down-payment and/or closing costs of 1.5% of the mortgage;

(5) Copy ofyour previous three month’s bank statements;

(6) ‘Void’ cheque to use when deciding the account out of which the mortgage payment will be made;

(7) The name and address of your lawyer that the lender will use to forward mortgage documents to at closing;

(8) If you are a current homeowner, a copy of your most recent mortgage statement indicating the amount owing and the monthly mortgage payment amount.

Hope this is helpful.  Many thanks to Norman Summerton for these important ideas.

It has just been reported by the Petroleum Human resources Council of Canada that, if oil and natural gas prices remain strong, Alberta may experience another boom cycle similar to 2007. With the aging population resulting in inevitable retirements and the increased demand for skilled workers, there could be a severe labor shortage on the horizon. Predictions are that 130,000 new workers will be needed.

After the massive layoffs and cut-backs following the serious downturn in the oil industry three years ago, there is optimism that the oil industry may be ramping up for some more frenetic activity.

What does this mean for the Edmonton Real Estate market? The inventory may get reduced significantly from its recent highs as new workers move in and buy homes. Such a trend will probably force prices upwards as buyers compete for a limited number of available homes. A market again favoring the seller may not be too far off!

I am happy to include a guest article by Stanley Popovich. I know you will profit from his advice!

Many people deal with the anxieties of buying or selling a home. This process can be confusing to many people. As a result, here is a list of ways that a person can use to manage the anxiety of purchasing or selling a home.

The first step is to determine your goals in purchasing or selling a home. Determine what you want to accomplish. It will save you a lot of time and money in the long run if you know what you are looking for. Sit down and think about the overall goal of what you are looking for and convey this to your real estate agent. Some people like to write down their goals on a piece of paper so they have something to go back to when they get stressed.

Educate yourself on the steps of purchasing or buying a home. Go to your local bookstore and find some books that will explain the process of buying or selling a home. There are many books available that can inform you of the process and will help reduce the anxiety of the situation. Most importantly, you will be able to make smarter choices that will save you time and money.

Find a reputable real estate agent that can help you accomplish your goals. Ask some of your friends on who they recommend and get in touch with them. Referrals from people you know are a great way in finding a good real estate agent.

Get your finances organized. Make sure you have an idea on what you can afford and also make sure that your credit is good. The financial aspect of buying or selling a home does not have to be scary if you have a sound business plan and a realistic budget. Some people may buy a home that they can’t afford and this can cause problems down the road. Determine what you can afford and develop a budget where you will be able to keep up with your bills.

In addition to using the services of a good real estate agent, try to get a friend who is more experienced to help you. Chances are good that you know someone who has purchased or sold a home. You could ask them for their assistance and ask them questions on what to do and what not do. Having a friend who can assist you along the way can really help reduce the anxiety of the process.

Read the fine print on everything before signing and do not assume anything. Ask questions if you are uncertain on some aspects of buying or selling a home. A good real estate agent will not mind if you ask questions, however you should do your part and try to educate yourself on the entire process.

There will be times when everything happens all at once. When this happens, a person should take a deep breath and try to find something to do for a few minutes to get their mind off of the current situation. A person could take a walk, listen to some music, read the newspaper or do an activity that will give them a fresh perspective on things. Once you calm down, you will better able to make the right decisions.

Purchasing or selling a home does not have to be a bigger deal than it has to if you take the proper steps. There is help out there if you get stuck or confused. The most important thing is to do your homework. Determine your goals, educate yourself on the steps to reach your goals, ask questions, and take it one step at a time. If you follow this advice you will be better able to reduce the stresses of purchasing or selling a home.
You can read more of Stan’s work at http://www.managingfear.com.

If you are thinking about buying a condominium, it is absolutely essential that you place the following condition on any and every purchase contract: ‘Subject to the Buyer’s satisfactory review of the Condominium Documents by such and such a date.’  The Alberta Real Estate Association contract provides an ‘Appendix’ which specifies those documents.  While the list may not apply to every condominium, the majority will!  Ensure that the current seller provides you with a COMPLETE SET of documents to review!  If you feel uncomfortable in reviewing these documents yourself, there are lawyers and individuals who, for a set fee, will do this professionally.  Surely, you want to make a wise investment upfront and avoid the catastrophic ‘Surprise! Surprise!’ scenario  down the road.

For example, in your due diligence you will want answers to the following questions before you purchase a condominium [understanding that this is not an exhaustive list]:

1. What are my initial impressions of the condo complex?  Is it well-maintained?  Lawns cut?  Litter-free?  Attractive to the eye?  Show ‘pride of ownership?

2.  Can I live within the current bylaws?  Are there age or pet restrictions that might impact me?

3.  How many parking stalls come with the unit?  Are they titled or assigned?

4.  Is the condominium a ‘conventional’ type or a ‘bareland’  [I own some land] type?

5.  What is the current ‘reserve fund’ amount?  Is the amount sufficient to address all of the maintenance and repair work specified in the Reserve Fund Study?  Or, will the monthly condo fees increase in the near future?  If so, by how much and when?  Has a ‘Special Levy’ been levied against each unit in the complex or is it being considered?  [If it is already been assessed, ensure that there is written agreement that the current owner will pay it out in full on or before possession date].

6.  What is the percentage of owners versus renters?

7.  Is the complex self-managed or professionally managed?  If the latter, what is the name of the professional management company?  Further, what is the name of the person in that management company responsible for this complex?  [I suggest that any potential buyer contact this person, as part of their due diligence, and ask them, ‘Do you have any reservations whatsoever, in recommending this complex to me?  Will the condo fees be increased in the next twelve months?  What are the major challenges facing the complex in the next year?’

8.  What do you learn from reading the monthly condo board meetings for the past year?  the last annual general meeting?  Do you sense any red flags?

9.  After a careful reading of the ‘Reserve Fund Study’, do you have any questions in your mind that demand answers?  Or, can you move confidently forward in your decision?

10.  What has been the re-sale history in the complex over the past year?  How long have the individual units sat on the market before a sale?  Are the prices increasing or decreasing?  Does the lack of a sales history indicate a stability among the current owners?

As a further step, you may want to visit the complex and chat with some of the current owners to garner their perspective.  You could ask them questions like: ‘How long have you lived here?  Are you considering a move in the near future?  What do you like and dislike about the complex?  Are there any problems of which I should be aware?’

If after doing a lot of personal research [The condition of condo doc review should give you a time-span of five working days], you decide to proceed with the purchase, there is one more piece of advice I have regarding condo documents–KEEP EVERY DOCUMENT.  Place the package you received from the last owner in a separate file.  Then add to it as more documents come your way: monthly condo board meeting minutes, annual general meeting minutes, annual financial report, and so forth.

By being a ‘hoarder’ of every written piece of information pertaining to your unit, you will spare yourself a bill from the management company for missing documents if you ever decide to sell your condo unit!  That bill can amount to hundreds of dollars [$500 or more is not uncommon!].

Condominium living may well suit your lifestyle options.  Care taken in advance of a purchase together with diligence while living there [Why not allow your name to stand for nomination to the condo board and thereby gain the inside track on the affairs of the complex of which you are a part-owner?] will allow for piece of mind and general enjoyment!