Archive for the 'Property Valuation' Category

In the final quarter of 2018, Canadian housing affordability worsened for a 14th consecutive quarter, found economic research from the National Bank Housing Affordability Monitor.

Using data from the Teranet-National Bank House Price Index, National Bank Deputy Chief Economist Matthieu Arseneau and Economist Kyle Dahms released a quarterly report on January 24, 2019 analyzing the final three months of 2018.

And they found that house prices are getting less affordable in many markets.

The Housing Affordability Monitor featured a representative home for each of the 10 metropolitan markets in the House Price Index, including the representative price for the condo market and for the non-condo market, and the average household income needed for each.

Here’s what they found for October, November, December of 2018:

1. Toronto Housing Market

Non-Condo

Price of the representative home in the metropolitan market: $902,916

Household annual income needed to afford the representative home: $165,755

Condo

Price of the representative condo in the metropolitan market: $536,082

Household annual income needed to afford the representative condo: $98,413

2. Montreal Housing Market

Non-Condo

Price of the representative home in the metropolitan market: $369,234

Household annual income needed to afford the representative home: $67,783

Condo

Price of the representative condo in the metropolitan market: $276,889

Household annual income needed to afford the representative condo: $50,831

3. Vancouver Housing Market

Non-Condo

Price of the representative home in the metropolitan market: $1,318,768

Household annual income needed to afford the representative home: $242,096

Condo

Price of the representative condo in the metropolitan market: $638,842

Household annual income needed to afford the representative condo: $117,277

4. Calgary Housing Market

Non-Condo

Price of the representative home in the metropolitan market: $494,689

Household annual income needed to afford the representative home: $90,814

Condo

Price of the representative condo in the metropolitan market: $266,107

Household annual income needed to afford the representative condo: $48,851

5. Edmonton Housing Market

Non-Condo

Price of the representative home in the metropolitan market: $422,508

Household annual income needed to afford the representative home: $77,563

Condo

Price of the representative condo in the metropolitan market: $231,117

Household annual income needed to afford the representative condo: $42,428

6. Ottawa-Gatineau Housing Market

Non-Condo

Price of the representative home in the metropolitan market: $428,595

Household annual income needed to afford the representative home: $78,680

Condo

Price of the representative condo in the metropolitan market: $261,454

Household annual income needed to afford the representative condo: $47,997

7. Quebec City Housing Market

Non-Condo

Price of the representative home in the metropolitan market: $286,491

Household annual income needed to afford the representative home: $52,593

Condo

Price of the representative condo in the metropolitan market: $211,768

Household annual income needed to afford the representative condo: $38,876

8. Winnipeg Housing Market

Non-Condo

Price of the representative home in the metropolitan market: $321,259

Household annual income needed to afford the representative home: 58,976

Condo

Price of the representative condo in the metropolitan market: $223,614

Household annual income needed to afford the representative condo: $41,050

9. Hamilton Housing Market

Non-Condo

Price of the representative home in the metropolitan market: $598,274

Household annual income needed to afford the representative home: $109,829

Condo

Price of the representative condo in the metropolitan market: $445,629

Household annual income needed to afford the representative condo: $81,807

10. Victoria Housing Market

Non-Condo

Price of the representative home in the metropolitan market: $850,469

Household annual income needed to afford the representative home: $156,127

Condo

Price of the representative condo in the metropolitan market: $485,937

Household annual income needed to afford the representative condo: $89,207

In some markets, the quarterly report found that the gap between condo and non-condo affordability is shrinking. The worst deteriorations in affordability in Q4 were in Victoria, Toronto, and Vancouver. The only markets showing an improvement were Calgary and Edmonton. Countrywide, affordability worsened.

View the full 2018 Q4 report from the National Bank here: https://housepriceindex.ca/wp-content/uploads/2019/02/NBFM-Housing-Affordability-Monitor-Q4_2018-Eng.pdf.

No matter what direction Canadian housing affordability heads, GeoWarehouse has tools that make you the property expert. Uncover real estate trends and opportunities before they hit the market.

Become a subscriber today. Call 1-866-237-5937 or visit www.geowarehouse.ca.

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January 14, 2019

When it comes to determining property valuation, many of today’s real estate professionals are turning to online tools.

It makes sense. Online property value technology is faster and more convenient than a full appraisal. (Note: online property valuation is a nice complement to an appraisal but shouldn’t replace an appraisal entirely.)

Depending on the information source, online technology can be extremely accurate and provide you with an abundance of information at the click of a finger.

But as online evaluations grow, so too do the tools available for the task. What property evaluation technology is best to use? We turned to the reviews for what users had to say.

  1. MPAC Assessment

The Municipal Property Assessment Corporation determines property assessments for municipal tax purposes. It can be useful for real estate professionals determining a property’s value.

That said, MPAC has its limitations. For instance, the tax value can be very different from the appraised value.

“Many clients look at the Assessed Value (which is often publicly available online on your municipality’s website) and assume that the number provided represents the current market value,” wrote Calvert Home Mortgage Investment Corporation.

“While there are a few instances where the Assessment might equal the current value, it is important to understand that this would only be a coincidence as both values are unique and are done for different purposes at different times.”

The definition of market value can assume a hypothetical and perfect market — not taking into account fluctuations or extenuating circumstances.

The Bottom Line: While MPAC can be a good tool in your property value wheelhouse, it shouldn’t be the only tool that you rely on.

  1. emili

emili is the Canada Mortgage and Housing Corporation (CMHC) decision system for mortgage insurance. It can automatically consider key factors such as the borrower, the property, the market, and the overall risk.

There is one thing that is important to know. If you are using property valuation tools to comply with mortgage stress testing, unfortunately emili is not enough.

emili does not provide a value for a property being financed. Instead it evaluates an area and, based on the value in that area, agrees or disagrees with the value stated on the application. This means that when emili agrees or disagrees with a value, you are not actually obtaining the value of the specific property being financed.

The Bottom Line: While emili has its uses, it shouldn’t be your only online property valuation tool.

  1. ca/MLS

Realtor.ca – the former Multiple Listing Services — is a well-known listing advertising site. But that is where it’s limited. It does not display historical or sold data.

According to reviewers, Realtor.ca:

  • Has limited search functions.
  • Doesn’t always show the newest listings.
  • Isn’t always up to date – some of the listings may have already sold or sold conditionally.
  • Shares incomplete listing info. Public listings don’t include property taxes, number of days on the market, and more.

The Bottom Line: Realtor.ca continues to be a good tool for advertising listings and real estate marketing, but it shouldn’t be used as a property valuation tool. For one thing, it doesn’t always show the most complete listing data. But for another, it is limited. You can only find properties currently on the market — you can’t search for properties that are not yet listed.

  1. GeoWarehouse

GeoWarehouse is Teranet’s property valuation solution, powered by the Province of Ontario Land Registration Information System (POLARIS).

We have worked hard to create a database that is accessible, comprehensive, accurate, and up-to-date. But don’t just take our word for it. Here’s what others have to say:

Elle Peterson, Sales Representative, Kenora Home and Cottage Realty Inc.

“I have found that the GeoWarehouse reports have helped me to be successful in real estate by using the neighborhood sales report when showing clients recent sales in their area.

“GeoWarehouse reports have been helpful in providing the survey of the land and in identifying neighboring lots, as well as in getting particulars on these lots such as who owns them. This is valuable to a buyer, so he/she will know in advance who their neighbour would be. It also helps a seller to have an idea of property lot lines in the event there is no survey.

“I have had success with clients in using the GeoWarehouse reports, specifically the property details to show the particulars of a property including the legal description and how much the property sold for and when it last sold.”

Asghar Jafri

“GeoWarehouse’s map is up to date and it helped me find the location easily. I could not find the same location in TREB’s maps.

“I was able to get a comparables report easily. The report gave me a quick list which I used to hone in on the best comparables.”

Brian Wilson, Broker of Record – GlobeCorp Realty, Brokerage

“I use GeoWarehouse regularly to help me in preparing valuation reports for my clients, both buyers and sellers. It is an invaluable piece of the pie in helping to determine what properties in the area have sold for and helps to form a better picture for my clients about the value of their property (or prospective property). GeoWarehouse has enabled me to provide a higher level of service to my clients, and as such I’m seen as a better educated service provider (REALTOR). Thanks to the GeoWarehouse team!”

Gail Johnson, Sales Representative – Prudential Town Centre Realty Inc., Brokerage

“Your GeoWarehouse on-line course says it all. GeoWarehouse makes my job easier because the database is:

1- Convenient – access the system, with varying degrees of support, for up to 24 hours a day 7 days a week.

2- Timely – Title Data contained in the GeoWarehouse database is current to within 2 to 3 weeks and Parcel Registers are delivered directly from the POLARIS database.

3- Flexible – you can search records by Owner Name, Address, Instrument or PIN or search aerial maps; and

4- Reliable – data is derived from the POLARIS database.”

See more reviews of our GeoWarehouse system here: https://www2.geowarehouse.ca/testimonials/

If you would like to try GeoWarehouse for yourself, get in contact today. We’ll walk you through the features and explain exactly how it all works to help you determine the most accurate property value available.

Call 1-866-237-5937 or visit www.geowarehouse.ca.

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November 23, 2018

The Canadian real estate market is in a state of fluctuation, which can make determining a listing price difficult to say the least.

Between rising interest rates, mortgage stress testing regulations, uncertain house prices, increased competition, and the like, there are many factors that might be affecting your usual process for determining property value.

That said, there are several practices that you can use to set a listing price no matter what is happening in the Canadian housing market. Here are our top picks.

  1. Assess the Property Details

This is step number one because it should be on your list regardless of market conditions. You need to understand the property details. For instance, what year was the home built? What data is included in the Land Registry?

In order to start thinking about your listing price, you need to know the answers to these questions and more.

  1. Get an AVM

You may have considered getting an appraisal done — this can be a great idea. But have you thought about an automated valuation model (AVM) report as well?

An AVM report can confirm home value, ownership, and other details quickly and efficiently. It can estimate property value by comparing and analyzing property characteristics against public record data.  It doesn’t replace an appraisal, but it is a good companion to one.

While an AVM can’t review interior and exterior property conditions, some include street view imagery that can help identify issues with exterior conditions, such as property boundary discrepancies. It’s great to leverage automation and historical data analysis to generate the latest information on pricing and ownership and create a big picture report.

  1. Consider the MPAC Assessment

MPAC is the largest assessment jurisdiction in North America. It determines revenue requirements, municipal tax rates, and property tax collection for the Government of Ontario.

An MPAC assessment isn’t always the same as a property appraisal, and often listing prices are different from MPAC’s valuation. That said, it is still valuable information that can be used in your determination.

  1. View the Sales History

Along with the property details, you will also want to consider the sales history. While today’s market may be very different from the last time this house sold (particularly if it is an older home), that data is still important to review.

  1. Look Up Comparable Sales

One of the best ways to determine home value is to see how comparable properties are selling. You can get a real-time view of what similar houses have sold for and use that to set your listing price.

You can also narrow your search by neighbourhood to specifically understand the area where you are selling. Certain regions will be more desirable based on factors like school proximity, parks, shopping areas, and the like. This will stay in style even with a market shift.

  1. Use a House Price Index

The Teranet-National Bank House Price Index is released every month with up-to-date information on house prices across Canada. This digs into 11 different markets and the house price trends those regions are experiencing.

This is important for you to know when making your assessment.

  1. Examine Market Insights

In a shifting real estate market, you want to stay on top of the latest real estate trends. For instance, if you know that condos are some of the most popular dwelling types for millennials, and you are trying to set a listing price for a condo in an area that appeals to millennials, that will help make your decision.

The Teranet Market Insights Report is released regularly and contains data that you can use for your property valuation needs.

While it may be simpler to set listing prices during non-turbulent housing market conditions, it’s still possible to do so in more uncertain times. Be sure to do your due diligence and assess information from multiple sources. Trends can change so fast that you need to stay on top of the data.

Luckily, GeoWarehouse makes it easy to stay informed up-to-the-minute. Our property reports take data from the Province of Ontario Land Registration Information System (POLARIS), so you can trust the reports you receive are accurate and timely. They are also available almost instantly, so you can make a decision with the latest figures.

Learn all about our GeoWarehouse reports today. Call 1-866-237-5937 or visit www.geowarehouse.ca.

Want more information on determining a listing price? Download our free eBook, Digital Property Evaluation in 1-2-3! Get your copy here: http://www2.geowarehouse.ca/property-evaluation-general/.

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November 6, 2018

Real estate sales professionals, do you serve the condo market in your sales territory? If not, you should consider starting. If you already do, read on for tips to help you sell even more.

In many cities, the condo market is a sweet spot because it is the cheapest entry point into the housing market. For example, in Toronto or Vancouver you can still buy property for $500,000 in the condo market — handy for new homeowners who would be priced out of larger homes.

Whether you are selling in the Toronto condo market, the Vancouver condo market, or another area, there’s a lot of room for opportunity — especially if you use a real estate tool like GeoWarehouse.

In the past, when real estate agents would search for a condo address, it would be difficult to source the unit or suite. Now, however, they filter by floor, parking, or even by storage level in GeoWarehouse to get the unit data they seek.

With these search functionalities, the possibilities expand. Now you can use GeoWarehouse to get the same property report information on the condo market that you would on other dwelling types.

For instance, you could:

  • See all condo units in a building.
  • Search by level if the suite number or address is missing.
  • Look up related Property Identification Numbers (PINs) for condos to find the property report, including plans and surveys, valuation information, and sales history.
  • Access the full legal description for every condo unit.
  • Find out if the condo owner has additional assets, such as parking or storage lockers.
  • Look up common name information.
  • Search for condominium corporation information.
  • Find the date of condominium declaration.

The GeoWarehouse data team has been hard at work updating the addresses for close to a million condo properties in the past year. Can you think of how you could use this information?

Access your condo market data today to use in your real estate marketing and property searches. It’s all part of your GeoWarehouse subscription.

Not a subscriber? Contact us today. Call 1-866-237-5937 or visit www.geowarehouse.ca.

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Real estate appraisers, developers, and contractors, how do you determine property valuation?

Traditional property valuation and even automated valuation models (AVMs) have historically been geared towards estimating property value, but the digital property valuation of today is so much more.

Our FREE new eBook will walk you through how you can leverage technology to perform a digital property evaluation and reap all the valuable information therein.

This is eBook is perfect for anyone who regularly relies on unique property information, such as a sales history, property ownership information, or home appraisals.

In this eBook, you’ll learn:

  • What a digital property evaluation should include.
  • The critical components to success.
  • Ways to locate and ways to investigate a property.

By the time you’re done reading, you’ll know exactly how to use property data to both investigate properties and identify new opportunities.

This eBook is available today for free. Just click here to get started downloading.

GeoWarehouse is your source for property searches and more. All of our data comes from the Province of Ontario Land Registry Information System, meaning that it’s accurate, up-to-date, and available when you need it.

Learn more about our digital property valuation tools today. Contact John Singh at 416-360-8863 ext. 2557 or email john.singh@teranet.ca.

 

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Collection agencies, law enforcement, private investigators, and more will benefit greatly from our FREE new eBook, How to Locate Property and Assets and Investigate Equity.

This eBook is perfect for anyone who relies on property-related data to search for people, locate assets, or assess available equity.

In this eBook, you’ll learn:

  • What type of property-related data is the most relevant to your investigations.
  • How to search for specific information.
  • The criteria you need to use to evaluate property search tools.

You’ll come out of it with a clear understanding to how locate property/assets, evaluate home equity, and uncover your subject’s financial history and financial standing.

This eBook is available today for free. Just click here to get started downloading.

GeoWarehouse is your source for property-related data searches and more. We source our data from the Province of Ontario Land Registry Information System, meaning that all of our property data is accurate, up-to-date, and available when you need it.

Learn more about how you can access our investigative property tools. Contact Philip Share by calling 416-643-1028 or email philip.share@teranet.ca.

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July 9, 2018

Use Appraisal Technology to Boost Your Business

Do you want to become the “Agile Appraiser?” Besides sounding like a superhero name, increasing your appraisal agility will help you work faster, adapt to changes, and boost your client appeal. The secret doesn’t lie in a red cape or a radioactive spider bite, though — instead, it’s in your appraisal technology.

Real estate tools are enabling home appraisers to approach their profession and automate their workflows like never before. With streamlined tools, easy searches, and instant results, you can do more from your desk. Multi-property search functionality makes finding the data you need easier than ever.

According to Canadian Property Valuation Magazine, when they’re relevant to the appraisal, a desktop review can dramatically increase production rates (valuations/reviews per day). Most jurisdictions conducting a desktop review can complete it in approximately 10 minutes, whereas a site visit can take approximately 40 minutes, not including travel. This can allow you to spend more time in analysis, rather than building the data.

Don’t wait to get started. Want to become the “Agile Appraiser?” Here are the tools that will get you there:

  1. Access Property Details Virtually

Appraisal technology like the GeoWarehouse Property Details Report lets you access gives you valuable Land Registry information, MPAC Assessment data, property ownership information, sales history, images, and more. Plus, it’s completely customizable. Use this when determining a property’s market value — all the information you need in one place.

  1. 3D Virtual Property Tours

In many cases, you can view a property without ever stepping foot on it. StreetScape and PivotView Imagery lets you virtually “walk” around a property, even peering around corners. With crisp, clear images that can rotate 180 degrees, you can get a good overview of the site without leaving your desk.

  1. Surveys and Plans at the Click of a Button

Property surveys and plans can oftentimes be accessed online. Data includes legal boundaries, easements, encroachments, and rights of way, plus the location of physical buildings and structures and their dimensions. In our GeoWarehouse store you can access reference plans, subdivision plans, and condominium plans.

If you’re looking to increase your appraisal agility, you need high-quality, accurate, and dependable data. That’s where GeoWarehouse comes in. Our reports are easy to access, up-to-date, and most download instantly.

Find out how to become a GeoWarehouse subscriber today to access our appraisal technology. Visit www.geowarehouse.ca for more information.

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When you get a new real estate listing, you want to get it on the market as quickly as possible. But before you can do so, there are steps you need to take — specifically, property investigation.

Investigating a new real estate listing can take up a lot of time and money. But there are ways to speed up the process and save big.

Consider these tips to create a more efficient due diligence process:

  1. Check how much other homes in the neighbourhood sold for.

Knowing how much other houses in the area have sold for can give you a good idea of how your new listing stacks up. Technology makes this easier than ever. For instance, the GeoWarehouse Comparable Sales Report lets you perform a property search by radius, sales time-frame, and price range.

  1. Find out what previous buyers got for their money.

Sales history data can help you uncover how much previous buyers paid for your new listing. These figures can be found in tools such as the GeoWarehouse Property Details Report.

  1. Track area house price trends.

Perhaps you want to cast a wider net than just the neighbourhood and see how the city is forecasted to change. Reports, such as the Teranet House Price Index (HPI) can give you a city-wide, provincial, and even national look at home price trends.

  1. Use AVMs to quickly get an estimated valuation.

Automated valuation models (AVMs) can give you an idea of what a property is worth almost instantly. Tools like the GeoWarehouse Property Details Report or the Client Report can provide MPAC assessment data, Land Registry information, pictures of the property, and more.

  1. Check if instruments are registered against the property.

If the property has a lien, multiple mortgages, or another instrument registered against it, you’ll want to know about it. That’s where the GeoWarehouse Parcel Register* comes in. This real time, up-to-date report lets you exercise due diligence by identifying registered encumbrances and obtaining an instrument number.

* An official product of the Ontario government pursuant to provincial land registration statutes.

  1. Look at neighbourhood demographics.

Demographic data can tell you who lives in the neighbourhood — age distribution, marital status, owned/rented properties, average household income, and more. This can help you target your marketing and understand what buyers might be attracted to the neighbourhood and the listing. GeoWarehouse’s Demographics Report puts all this information at the tip of your fingers.

Some important property information can be gained by simple footwork — driving around the neighbourhood, walking through the house, etc. — but technology is letting you delve deeper, faster. Tools, such as the ones provided by GeoWarehouse, give you a new level of due diligence that can help you investigate real estate listings and determine property valuation quicker than ever, saving you time and money. It’s a win-win!

Learn about how you can harness the power of GeoWarehouse for yourself at www.geowarehouse.ca.

 

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May 16, 2016

geo2You worked hard to convince the client that listing with you is the way to go, and no all that’s left to do is prepare the listing agreement and determine a sale price. Until… your client tells you that they think their home is worth far more than it is.

This happens all the time. There are so many reasons that clients think that their homes are worth far more than they are:

  • What their neighbours tell them – the person across the street listed for…
  • What contractors tell them – I did some improvements to the home…
  • Too much TV –home renovation television convinced them a new coat of paint added another $25k on their home’s value

This a delicate conversation because a home is the biggest investment most people will make and telling them that it is not worth what they think could result in them wanting to work with a real estate sales professional who agrees with them.

  1. The best way to have this conversation with a client is to be well researched before the conversation even happens. Look at the sales history on the home, run neighbourhood comps but select some individual comps that are indisputably similar to the property in question.
  1. When you go to speak with the client put on your listening ears. Your client will be more likely to accept what you have to tell them if you have heard them out completely – even if you don’t agree with them.
  1. Present the evidence – don’t just tell them you have performed research and believe a good list price is $___. No. Sit down with your client and show them your comps and how you derived the value.

Make sure they understand the cons of listing too high:

  • People may not even come to see the home because their real estate sales professional may tell them it is overpriced and not worth looking at
  • Being on the market too long without selling can actually harm the property’s value
  • If you agree to a higher price they may have trouble getting financed

If they still insist, after leveraging your tools, that the property is worth more all that’s left to do is suggest that they have an appraisal.

Dealing with clients who think that their homes are worth far more than they are is a challenging problem that you face all the time. This is why it is so important to be informed and have access to the best technology to do your homework.

Use GeoWarehouse to derive accurate value estimates to help convince unrealistic sellers. Find out more at www.geowarehouse.ca.

 

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geo1This week we are getting back to basics! Why? Well, when it comes to this topic, it is one that real estate professionals get confused with all the time. Property title search or Parcel Register*: many think they are one and the same when in fact they are quite different.

The Parcel Register* is an electronic document that contains the transfer and financial history of a property -along with a host of other important information. Often when real estate sales professionals refer to getting a title search, they actually mean Parcel Register*. However, a Parcel Register* is actually just a part of a property title search.

Real estate lawyers commonly perform a full property title search as part of a real estate closing with the Parcel Register* being one element of the full search. Title insurance however has eased this burden and often real estate lawyers won’t perform a complete title search as many things are protected by title insurance. That being said, they will always obtain a current Parcel Register*.

The Parcel Register* is actually one of the most helpful documents in the real estate process because it contains the most current information available and includes a lot of useful information. Some examples include:

  • A legal description of the property and property identification number
  • The legal homeowners of the property
  • The type and percentage of ownership
  • A history of property transfers and transfer amounts
  • A history of registered mortgages and registration amounts
  • Any property liens and more

This is a great way to validate that your client is the legal homeowner. You can also validate that there is enough equity to pay for your services and that there are no financial issues present that you aren’t aware of – not to mention those instances which sometimes arise where something shows up on title that the client is unaware of. This is why many real estate sales professionals will obtain a Parcel Register* when engaging a new client.

You can help your client dig deeper – this is a great practice in due diligence.

Anything registered on a Parcel Register* contains a registration number. You can then use the registration number of any transfer or charge and request the according instrument image. This will enable you to see the document that was registered and the name and contact information of the representative of the party who registered. You can use this to help your client resolve issues that could cause a problem on closing before it gets that far.

So, when you want to verify something simple, know that you don’t need a full property title search to do it. A Parcel Register* can often give you the pertinent information required without doing a full property title search.

GeoWarehouse gives you easy access to the Parcel Register*. To find out more visit www.geowarehouse.ca.

*An official product of the Ontario government pursuant to provincial land registration statutes.

 

 

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