Property Assessment Values compared to Actual Market Value

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In a recent post, I explained how Market Value really has very little to do with City Property Assessment Value.  That post can be found here.

To further prove the point, here are a couple of very different homes in similar neighbourhoods in East Kildonan.

City Property Assessment value:  $184,000

Home #1: a 940 sq ft bungalow, built in 1955, and having very few upgrades.  Original windows, older furnace and a semi-finished basement.  1 bathroom, original kitchen.   

City Property Assessment value:  $185,000

Home #2: 1060 sq ft bungalow, built in 1959. Upgrades include a newer furnace, windows, exterior, 2 bathrooms, and a fully finished rec room.

Although both homes had Property Assessment values which were nearly equal, they are very different homes.  But don’t just take my word for that:  Both were sold on the open market (thru REALTORS®)  and the results prove my point:  Home #1 sold for $200,000 while Home #2 sold for $225,000.

My Point?  Don’t go by “City Property Assessment Value” when trying to determine the value of a house.  Recently, a home buyer suggested that he could use this value to establish whether or not a home he was thinking of purchasing, was priced fairly.  In order to determine a fair market value for your home (or the home you wish to purchase), you need to compare it to the real estate market….  because that’s all that matters. What are BUYERS willing to pay for this home?

To answer this question and find out just how much your home is worth, call me anytime.  Also, if you’re looking to buy a house or condo, having access to accurate sold-prices is equally important to you as a Buyer.  Property Assessment Values should be used sparingly, as a guide at best.  Do me a favor?  Share this on Facebook.

Bo 333-2202

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Land Titles Transfer Tax:  A financial ‘kick in the ‘nads’

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Credit to Robert Galloway photostream on Flickr

I wrote about Winnipeg Land Titles office, and the reason why there is usually a 3 to 4 week delay between the date-of-possession for a home, and the date-of-receiving money for the sale.  A while back,  I sat down with a nice couple who were writing an offer on a house, and the conversation turned to the ‘Closing Costs’ of the purchase.  The conversation went something like this:

Mr. Buyer: So aside from the lawyers fees (which we had already discussed), what other costs will I need to budget for?

Bo: Well, there will be home insurance.  Good news is that you won’t have to pay any property taxes, because we’re doing this in January.  But of course you have to budget for the Land Titles Transfer Tax.

Mr Buyer:  A tax?  Just for changing the title of the house?  How much is THAT going to cost?

I did a quick mental calculation, and gave him the cost, and then watched as his face went thru the classical 5 stages of grief, from Denial (“This Can’t Be Right), to Anger ((F*#@ing Govm’t), Bargaining (Isn’t there a way around this), Depression (Oh, Man…..that’s alot of dough) to finally  Acceptance (Well,  It IS a nice house and there is NO WAY around it, short of leaving our province).  So just how much is the government raking in with this tax?

Land Titles Transfer Tax calculation:

While Manitoba is not the only province to impose this tax, it is by far the most aggressive and onerous.  Thru a set of formulas, we arrive at a figure of $1720 for a $200,000-house or condo.  With Winnipeg’s average house price hovering around the $230,000 mark, we can see that our Provincial Government is collecting approx. $2000 in taxes, EVERY TIME the title of a house is transferred.  But wait, you say….  didn’t Bo just tell us that it costs $1720 for a $200K home?

Yes, but I haven’t told you the worst part:  ABOVE the $200K price, this tax adds an additional 2% on EVERY DOLLAR.

So, a $300,000 home will cost you $3720   (calculated by adding the $1720 base, plus 2% on the additional $100,000 price = $3720)

While the Land Titles Transfer Tax is especially difficult for young, first-time home buyers, even people ‘with money’ find an added tax of 4 grand or more to be a financial ‘hit’.  For that reason, Winnipeg REALTORS® have been lobbying to change this regressive tax.  Let’s bring it more in line with other western provinces.  Ideally, inline with Alberta, where a $200K home costs $75 in Land Titles Transfer Tax and a $300K home costs $95.  But heck, let’s not even look at those numbers, lets instead compare to my wife’s home province of Saska-Bush ….  where it costs just $1200 to transfer the title of a $400,000 home.   Manitoba’s fee for transferring the Title of a $400,000 home:  $5,720

For a look at more comparisons and for a more in-depth article on the Land Titles Transfer Tax, go to the Winnipeg REALTORS® website at http://2muchltt.com There is even a link to contact your local MLA..

Let’s do something about this Land Titles Transfer Tax.

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Home Staging Quick Tip #5: Furniture and Lighting

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Home Sellers are finding that Home Staging can help them obtain the best offers possible on their houses and condos.  No matter the real estate market, whether its hot or slow, staging will help show off your home and put it in its best light.  There are many professional home staging companies which are well trained, certified and experienced in helping sellers stage their homes.  In fact, I have used and recommended Home Staging companies on numerous occasions, with great results.  For the do-it-yourselfer, however, Re/Max has developed a 10-part video series on “Home Staging“.  In episode 5, we focus on a topic which most people associate with the topic of home staging: Furniture Placement.

Home Staging: Furniture Placement

Furniture placement is a crucial part of home staging.  It helps to show off each room and help buyers visualize the traffic flow in the home.  There are a couple of possible pitfalls when considering furniture.

1) If possible, use furniture which is in good repair.  Broken or abused pieces act as a distraction

2) Make sure your furniture is not too large for the room

3) Don’t use too much furniture.  Leave room to move.

Another element discussed in this part of the series is the topic of “Lighting” in your home.  A dimly lit home will not show well, so make sure all lights work properly, and use the maximum allowed wattage in each light.  Congratulations if you are energy-conscientious and use the twisty, flourescent bulbs, BUT…for the showing period of the home, consider using brighter alternatives.  Make sure all light switches are in good repair, including their cover plates.

If you are looking to buy a house, or buy a condo, or thinking of selling, contact me via cell at 333-2202 or email me anytime.  I’d love to help.

In if you like this post, please click on the +1 at the top, and consider subscribing to future blog post updates.

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Can owners keep their portion of the Condo Reserve Fund?

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This question comes up every now and then. As a condo owner sells his unit, they receive a copy of their Condo Documents, which among other things, clearly shows their portion of the Reserve Fund in the condo corporation. So naturally, they sometimes ask: Do we get to keep that money?

Alternatively, condo buyers will ask:”Do we need to come up with this amount and put it into the Reserve Fund once we take possession of our new condo?

This 3 min. video gives the answer:

http://www.youtube.com/watch?v=nNeLnZSgBbc

If you’re in the market to buy or sell a condo in Winnipeg, call or e-mail me for a free consultation.

Bo Kauffmann  333-2202

What’s wrong with this Condo? – Winnipeg’s Real Estate Blog

Numerous ‘for-sale’ signs in front of a condo projects DO NOT mean there is anything wrong with the units. Facts behind condo sales in Winnipeg.

Publish Date: 09/18/2011 10:53

http://bokauffmann.com/whats-wrong-with-this-condo/

6 Reasons to buy a Condo in Downtown Winnipeg

TweetSharebar Tweet6 reasons to buy a Condo in downtown Winnipeg . Downtown Winnipeg might not be the first place you think of when you are considering buying a condominium but there are some beautiful buildings …

Publish Date: 07/08/2011 9:44

http://bokauffmann.com/6-reasons-to-buy-a-condo-in-downtown-winnipeg/

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Quick Market Snapshot for November 2011

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Each month, I publish a Real Estate Market Update, which shows numbers of available listings in houses and condos in Winnipeg.  In this quick-market snapshot, lets take a closer look at how many of those listings have gone beyond the ‘Offers Dates’ and are waiting for buyers to make a move!

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Market Snapshot for November 2011 video

http://www.youtube.com/watch?v=YHqkJtAE1EE

If you’re in the market for a house or a condo, contact me anytime, or submit a Dream Home Finder request, or a Condo Finder Request  (if you DONT already have your own REALTOR)

Is Winnipeg changing into a real estate Buyers Market?

TweetSharebar TweetWhat is a great time to buy Real Estate in Winnipeg? . One of the most often-asked question by home and condo buyers is “When is the best time to buy in Winnipeg?” Similar to other things, purchasing …

Publish Date: 07/13/2011 10:00

http://bokauffmann.com/is-winnipeg-changing-into-a-real-estate-buyers-market/

Buying a Condo in Winnipeg – Winnipeg’s Real Estate Blog

If you’re buying a condo in Winnipeg, here are some financial aspects you need to know, including reserve fund, condo fees, start up costs and more.

Publish Date: 02/17/2011 10:49

http://bokauffmann.com/buying-a-condo-in-winnipeg-what-you-need-to-know-and-consider-part-2/

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Depersonalize your Winnipeg home before putting it on the market

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In part 3 of the series on Home Staging by Remax, we take a look at the need to depersonalize the home.  Since the owner has likely lived in the home for a number of years, it has taken on his personality, displaying his photographs, trophies and furniture, along with his personal choices in colors and accents.

A buyer, coming to view the home, needs to be able to ‘visualize’ themselves in the home, and this become difficult if the buyer is overwhelmed with a multitude of personal items exhibiting the sellers personal life and tastes.

In order to help the potential buyer in their decision, home sellers are well advised to:

• Remove family photos and keepsakes
• Remove personal trophies
• Remove potentially offensive items  (Hunting trophies such as bear-skins, etc)

View the 2-minute video on this subject

http://www.youtube.com/watch?v=6drWrhSTpJs

8 things Home Stagers Know….(and now, so will you!)

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Publish Date: 05/30/2011 9:39

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Home Staging quick tip #2: Curb Appeal

Improving curb appeal very important step in home staging. Houses and Condos in Winnipeg sell faster if proper home staging is used. Real Estate Tip.

Publish Date: 08/26/2011 9:06

http://bokauffmann.com/2011/08/home-staging-quick-tip-2-curb-appeal/

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Winnipeg Real Estate Market Update for May 2011

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Each month, Winnipeg’s Real Estate Blog issues a Real Estate Market Update by taking a look at the previous month’s sales and listing stats on the MLS®.   We report on the total numbers of homes sold in Winnipeg during the previous month, and then take a look at how many Winnipeg homes are available on the last day of that month.  By combining the two factors, we get a good idea of which direction the Winnipeg Real Estate Market is heading….  into more of a Sellers market, or slowing down into a Buyers Market.  See last month’s Winnipeg Real Estate Market Update.

I also separate the homes along the price line of $250,000, as homes below this price usually sell at a more brisk pace, while homes in the higher price ranges tend to take a little longer.

So, during the month of April 2011, a total of 639 homes of all types, price ranges and styles sold in Winnipeg.  At the end of the month, there were a total of 802 homes available. By diving one number into the other, we arrive at a figure of “Months of Inventory” left on the market.  This is like saying  “If no more homes were listed in Winnipeg after today, how long would it take before all remaining homes are sold”.  Obviously, the lower the number, the hotter the real estate market.  The Winnipeg real estate market remains one of the hottest in the country, with just over 1 month (5 weeks) of inventory remaining.  By comparison some parts of Calgary are measuring inventory in terms of YEARS….  as in 1.4 YEARS of inventory.

We then take a look at homes below $250,000 and found that during the month of April, we sold 359 homes in this price range, and at the end of the month, a total of 391 such homes were available, meaning an even tighter market at 4 WEEKS of inventory.

Finally we can report that sales of homes OVER $250,000 are also continuing on a brisk pace.  We sold 280 such homes during April, and have 411 homes available on May 1st…..  meaning a ‘glut’ of inventory sitting at 1.5 months.

These numbers are ‘as-expected’ since this is the busy spring market, when buyers traditionally come out in larger numbers to look for a home, and home-sellers stand a better than average chance at receiving multiple bids on their homes or condos.

Here is a look at the video version of Winnipeg Real Estate Market Update.

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Winnipeg Real Estate Market Update for April 2011

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Each month, Winnipeg’s Real Estate Blog issues a Real Estate Market Update by taking a look at the previous month’s sales and listing stats on the MLS®.   We report on the total numbers of homes sold in Winnipeg during the previous month, and then take a look at how many Winnipeg homes are available on the last day of that month.  By combining the two factors, we get a good idea of which direction the Winnipeg Real Estate Market is heading….  into more of a Sellers market, or slowing down into a Buyers Market.  See last month’s Winnipeg Real Estate Market Update.

I also separate the homes along the price line of $250,000, as homes below this price usually sell at a more brisk pace, while homes in the higher price ranges tend to take a little longer.

So, during the month of March 2011, a total of 688 homes of all types, price ranges and styles sold in Winnipeg.  At the end of the month, there were a total of 665 homes available. By diving one number into the other, we arrive at a figure of “Months of Inventory” left on the market.  This is like saying  “If no more homes were listed in Winnipeg after today, how long would it take before all remaining homes are sold”.  Obviously, the lower the number, the hotter the real estate market.  The Winnipeg real estate market remains one of the hottest in the country, with just under 1 month (4 weeks) of inventory remaining.  By comparison some parts of Calgary are measuring inventory in terms of YEARS….  as in 1.4 YEARS of inventory.

We then take a look at homes below $250,000 and found that during the month of March, we sold 409 homes in this price range, and at the end of the month, a total of 315 such homes were available, meaning an even tighter market at 3 WEEKS of inventory.

Finally we can report that sales of homes OVER $250,000 have also picked up pace.  We sold 279 such homes during March, and have 350 homes available on April 1st…..  meaning a ‘glut’ of inventory sitting at 1.25 months.

Here is a look at the video version of Winnipeg Real Estate Market Update.

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If you’re interested in the Winnipeg Real Estate Market, whether to buy or sell, a house or a condo, call or email me boknowshomes@gmail.com anytime.

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Winnipeg Condo Market Report for March 2011

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Each month, Winnipeg’s Real Estate Blog issues a Winnipeg Condo Market Report, separate and apart from our Real Estate Market Report, since condominiums form a distinct and separate part of the real estate market.  In this report, we take a look at the total number of condos available, and how they are distributed thruout the City.  Click here to see last month’s Condo Market Report!

To start of, the Winnipeg Condo Market currently has 276 total active listings.   This is made up of all types, styles and price ranges of condos, including apartment, townhouse and stand-alone homes.  The report takes into account all condos inside Winnipeg, plus the areas of East and West St Paul, and Headingley.  During the month of February 2011, we sold a total of 69 Condos citywide.

In the north and north-west of the city, the Winnipeg Condo Market has 43 active listings, priced from a low of $61,900 to a high of $610,000.

In the West of Winnipeg, (Charleswood, St James etc)  we currently only have 18 condos available, from$129,900 to $357,000

In the South and South-east, including St Boniface, St Vital, Pembina Hwy, Lindenwoods, Richmond West and Fort Richmond, we currently have 74 condos available, from $79,900 to $499,900.

Not surprisingly, the majority of units in the Winnipeg Condo Market are available in the central parts of the city, including the downtown, Osborne Village, Wellington Cr and River Heights.  Here we can find 141 available condos, from a low of $49,900 to a stunning condo on Academy Rd. at $700,000 dollars.

For the video version of our Winnipeg Condo Market Report, see this:

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Winnipeg Real Estate Market Update for March 2011

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Each month, Winnipeg’s Real Estate Blog issues a Real Estate Market Update by taking a look at the previous month’s sales and listing stats on the MLS®.   We report on the total numbers of homes sold in Winnipeg during the previous month, and then take a look at how many Winnipeg homes are available on the last day of that month.  By combining the two factors, we get a good idea of which direction the Winnipeg Real Estate Market is heading….  into more of a Sellers market, or slowing down into a Buyers Market.  See last month’s Winnipeg Real Estate Market Update.

I also separate the homes along the price line of $250,000, as homes below this price usually sell at a more brisk pace, while homes in the higher price ranges tend to take a little longer.

So, during the month of February 2011, a total of 410 homes of all types, price ranges and styles sold in Winnipeg.  At the end of the month, there were a total of 684 homes available. By diving one number into the other, we arrive at a figure of “Months of Inventory” left on the market.  This is like saying  “If no more homes were listed in Winnipeg after today, how long would it take before all remaining homes are sold”.  Obviously, the lower the number, the hotter the real estate market.  The Winnipeg real estate market remains one of the hottest in the country, with just under 1.7 months (7 weeks) of inventory remaining.  By comparison some parts of Calgary are measuring inventory in terms of YEARS….  as in 1.4 YEARS of inventory.

We then take a look at homes below $250,000 and found that during the month of February, we sold 245 homes in this price range, and at the end of the month, a total of 373 such homes were available, meaning an even tighter market at 1.5 months of inventory.

Finally we can report that sales of homes OVER $250,000 have also picked up pace.  We sold 165 such homes during February, and have 311 homes available on March 11st…..  meaning a ‘glut’ of inventory sitting at 1.88 months.

Here is a look at the video version of Winnipeg Real Estate Market Update.

If you’re interested in the Winnipeg Real Estate Market, whether to buy or sell, a house or a condo, call or email me boknowshomes@gmail.com anytime.

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