I’ve been to court 4 times in the last month seeking the court’s approval on foreclosure sales.  All but one had multiple bids!

Balanced Real Estate Market?

Last year most of the foreclosure sales I attended did not have multiple bids. Having more than one bid usually means the price is going up. In the last 3 sales recently the prices were bumped up on multiple bids an average of $17,000 each!  The higher prices help to maintain prices in any given strata complex or neighborhood. This is of course good for homeowners in the area.

More Kelowna Foreclosures coming?

Last year at this time we hovered at just over 100 court ordered sales. Today there are 153.  The prediction is that there are more coming as those folks who need to sell and have been waiting for the market to change are finally faced with the fact that things aren’t changing drastically any time soon.

Foreclosure information

With 25 years Kelowna real estate experience and having handled a large number of court ordered sales and/or foreclosures I’m able to answer all you questions surrounding this process. A foreclosure or court ordered sale is much different than a regular arms length transaction.  Call Paige Guernsey, an experienced Kelowna real estate agent, direct at 250-862-6464 for more information.

Talk to you soon…

Paige

End of year update

Real estate sales in Kelowna, BC have seen a bit of a bumpy ride through most of 2011.  According to Okanagan Mainline Real Estate Board stats, total sales were down through most of 2011 except for 3 months.  Inventory has remained fairly steady showing a slight increase over 2010 levels for most months.  The following video is from the BC Real Estate Associations Cameron Muir speaking about BC’s December housing market update as well as 2012 predictions for interest rates.

BC Real Estate and 2012 Mortgage Rates Predictions

Need more information?

Check out this report from Canadian Mortgage and Housing dealing specifically with Kelowna real estate activity this past year and call Paige Guernsey, an award winning Real Estate agent at Coldwell Banker Horizon Realty, direct at 250-862-6464 for all your home buying and selling needs.

Talk to you soon…

Paige

HOW TO BUY A FORECLOSURE

There are many misconceptions in the buying public regarding a foreclosure.  Most think you can get a price on a house that’s far below market value. Not always so.

4 MAJOR STEPS

1) Know what you’re getting into

2) Getting your offer accepted

3) Court Acceptance

4) Possession

KNOW WHAT YOUR GETTING INTO

The Bank of Canada requires that foreclosing banks attempt to get the most amount of money for each property. This involves appraisals and real estate agents with market evaluations.  Homes that are well kept and/or vacant will usually receive a value close to the other homes in the neighborhood. If the home is in poor condition, this too will be reflected in “market value”.  I can help you determine what the best market value for any given property is, regardless if it’s a foreclosure or not.

Buying a foreclosure involves a Contract of Purchase and Sale and a Schedule A. The Schedule A spells out that the property is being purchased “as is where is” and that the bank does not make any representations or warranties about the house.  This paperwork is very different than a regular arms length transaction in what we’ll call a “normal” transaction between a buyer and a seller.   You should read it carefully and have a very clear picture of what “as is where is” means.

GETTING YOUR OFFER ACCEPTED

Working with a bank on offers usually takes quite a bit longer than working with a seller who’s looking to sell the home they are living in. Consider there may be a time difference and different levels of management the paperwork has to go through before any type of acceptance or counter offer is made.  Also, banks are generally closed on the weekends.  Banks generally get “low ball” offers and most often there is a lot of negotiating back and forth before price and terms are met that are mutually agreeable.  They don’t like to see a lot of “subjects” but it is possible to get an offer accepted with some subjects.  Any offer made to a bank on a piece of real estate has to also be “subject to court approval”.  This is because the court has the final say if an offer is accepted.

After your offer is accepted, and your subjects are removed, it’s filed at the appropriate law court and becomes public knowledge.  Most Kelowna foreclosures happen at the Kelowna Law Courts, but sometimes they’re in Kamloops or Vancouver. A court date is set after this step, and is most often about 2-5 weeks after the filing.

COURT ACCEPTANCE

On the day of court, I would HIGHLY recommend that you attend with your realtor.  Often other buyers will attend court with a sealed bid to present to the presiding Master.  These buyers will also have taken the time to check the court filing to find out the accepted offer price and usually their offer price will be higher.  This means that there are “competing bids” and if you’re wishing to be the successful bidder then you will have an opportunity to change your original offer.

The Master has the final say on which bid to accept and not only will be looking for the best offer price, but a sizeable deposit made by way of certified cheque or bank draft attached to the offer.  For possession, a successful bidders Contract of Purchase and Sale will usually read a certain number of days after court approval. For instance, it’s advisable to put “10 BUSINESS DAYS AFTER COURT APPROVAL” on the contract for Completion, Possession, and Adjustment dates.  This allows for regular banking hours and weekends.

POSSESSION

After all that, moving day is here!  Earlier we talked about the Schedule A and that there are no representations or warranties made by the bank.  Although moving in on possession dates usually go smoothly and hold no surprises, it’s imperative to understand that there is the possibility that the house won’t look the same as when you viewed it last. Occasionally disgruntled homeowners may do damage on moving out or take unexpected things like kitchen cabinets!

With so many details surrounding foreclosures, it’s critical to work with someone who knows the process.  If you’re considering purchasing a Kelowna real estate foreclosure, call Paige Guernsey direct at 250-862-6464. With many years experience around foreclosures and court ordered sales I can help you navigate the sometimes bumpty waters to a successful conclusion!  If you’d like a list of current homes for sale in Kelowna that are under foreclosure, send me an email at paige@kelownahome.com.

Talk to you soon…

Paige

STRATA REAL ESTATE

Kelowna has a healthy inventory of strata real estate properties available.  One of the biggest complaints I hear these days about strata is that there can be a heavy hand when dealing with pets and rentals.

MLS LISTINGS

When trolling through Kelowna’s listings you’ll almost always see some sort of rental restriction as well as a size restriction for pets. Sometimes no pets area allowed at all.  This can seriously affect your ability to sell your property when the time comes.  One may argue that you bought at a price that reflected these restrictions and because of this restriction it’s a wash when you go to sell.  If things were different, it may not be so.

RENTAL RESTRICTIONS

A primary issue for Strata’s is rental restrictions.  Strata corporations have the ability to limit or restrict rentals in not only Kelowna, but through BC under the Strata Property Act.  In parts of the US and Europe, their type of governing can be completely different allowing for individual units to be owned freehold without any governing body like the familiar Strata Council. Therefore making each and every owner responsible to city by-laws just like a regular single family dwelling.

PET RESTRICTIONS

Another concern for buyers and sellers of real estate is pet restrictions.  Interestingly in Vancouver, there are very few pet restrictions due to the fact that prices are so high and affordability is a huge issue forcing many buyers to be looking at strata units.   A large number of young people buying their first place, families, as well as older people with empty nests in have beloved pets that they won’t part with.  I also think most people will agree that pet owners, for the most part, are responsible owners who are respectful of those living, working, playing around them.

IMAGINE CHANGING THE GUIDELINES IN KELOWNA

Imagine if you could buy a zero lot line attached home with no strata fees or strata by-laws etc.  This would open up the potential buying pool for hundreds of sellers right now as well as increase affordability and inventory for those currently looking to buy with pets or rental requirements.  Investors could buy without concern about rental restrictions providing affordable housing for the many who find it difficult to find suitable rentals. Pet owners could choose from a wider inventory pool without owners who have no pets losing any ground to potential pet problems next door.  Sustainability is another key factor here.  With less urban sprawl, we can encourage more people to be living, working, playing, and commuting  in “downtown” areas with fewer restrictions. Check out this fantastic strata townhome listing at 6-1853 Edgehill, Kelowna that can be rented and allows pets with generous restrictions.

This interesting article in the Vancouver Sun illustrates how this can be down and how it can change how we look at Strata property. Check it out and see what you think!

VOTE FOR SUSTAINABILITY NOV 19TH

Also, with our civic elections around the corner, it might be interesting to put these ideas forward to our council.  There are many that have sustainability on their radar, but these three are my favorites. They have great ideas on how to create sustainable and environmentally friendly growth that benefits everyone in Kelowna or the Okanagan Valley. Check their sites out and be sure to vote on Nov 19th!

Angela Reid-Nagy ,

Colin Basran

Michele Rule

If you’re looking to buy or sell strata real estate in Kelowna, are thinking of making an investment, or are interested in sustainable real estate call Paige Guernsey direct at 250-862-6464.

Talk to you soon…

Paige

Happy Halloween!

There are a few homes in Kelowna that have some scary history behind them.  A seller is not required anymore to disclose these stigma’s, like murder or suicide, to the buyer. Some buyers care and some don’t.

I rented a house not too long ago while we were building and there was definately some spooky things that happened there.  Lights coming on in the middle of the night, apparitions moving around at night that were clearly visible, smoke alarms going for no reason.  If you believe in ghosts, I’d have to say this “ghost” was friendly and had a sense of humor. My family was all aware of it being around but never had any fear.  Here’s a list of 11 ways to “GhostProof” your house.

Need help selling your haunted house? Call Paige Guernsey direct at 250-862-6464 and get her 25 years experience selling real estate working for you.

Happy Halloween and talk to you soon…

Paige

“Easy and inexpensive”

I hear those words a lot from people 45 or better. They’re often looking for turn key living in smaller homes or townhouses in all different neighborhoods throughout Kelowna.  There are many properties available catering to the older demographic as well as those that target the 55+ age group. With recent changes to the Strata Property Act, it’s possible now to have a registered age restriction as one of your by-laws, and it doesn’t have to be 55 anymore! You can register any age at all.  This is great for folks who are looking for a quiet place to call home in Kelowna, and maybe have pets, or older children still living at home.

The 55+ restriction is still an all-time favorite with the security of knowing exactly who your neighbors are.  In Kelowna, properties with these benefits vary from condo style homes to townhouses, and fully detached homes in gated communities. Ammenities vary widely as well.

If you’re looking for the perfect place to retire and wondering about your options for properties in Kelowna, call Paige Guernsey direct at 250-862-6464.

Talk to you soon…

Paige

First timers and move up buyers till lead the pack of purchasers heading for the finish line.

(Click on the image to enlarge).

The segment showing investors and buyers looking at recreational property has been slowly growing and last month was a solid 20% of home buyers in Kelowna.  Check out my last couple blogs dealing with investments and recreational properties.

Looking to invest or buy some recreational property?  With 25 years experience in Kelowna real estate, I can help find the perfect property for you. Call Paige Guernsey direct at 250-862-6464 today.

Talk to you soon…

Paige

Why could I get Prime minus .90 last week and today it is Prime minus .25?

A great question says Mortgage Brokers Association of BC.  Check out this informative article on the how’s and why’s of banks and interest rates. Thanks to Brenda Dilley of Mortgage Alliance for this.  If you’re looking for a fantastic mortgage broker (remember, using a mortgage broker ensures you’re getting the best possible mortgage for you and your needs and it doesn’t cost YOU a cent!). Brenda can be reached at 250-808-1000 or dilley@telus.net.

If you’re looking for an experienced, full time realtor in Kelowna or through the Okanagan Valley, Call Paige Guernsey at 250-862-6464.

Talk to you soon…

Paige

Investing 101

I’ve been working with an investor looking for the ultimate investment… one that pays for itself.  We just wrapped up the paperwork and they’re the proud new owners of a gorgeous townhouse with a built in tenant!  In my work as a Kelowna real estate agent, I come across some interesting property with medium to long term goals and the possibility of substantial gains.

Waterfront Possibilities

It wasn’t that long ago that waterfront property on Okanagan Lake was well under the $500,000 mark.

ABBOTT STREET

In 1999-2000, waterfront Kelowna homes were selling on Abbott Street for between $400 – $500,000. Today, homes in the same area on Abbott street have been selling for between $2.5 and $5 million dollars!

This home is on Manhattan Avenue and currently for sale at $370,000. It’s in a cozy waterfront neighbourhood in Kelowna’s North end.  Being an area of older homes, visionaries have been buying, renovating or re-building on Manhattan, and creating an entirely new neighborhood in this growing and changing part of Kelowna.  Newer, larger homes on Manhattan and right on Lake Okanagan, have been selling recently for between $1.3 and $1.55 million. Close to Knox Mountain and the secluded Poplar Point, living here means you can walk or bike most everywhere. A few blocks away from the downtown core of Kelowna, you’ve got easy access to the growing cultural district, Prospera Place for hockey games and concerts, Kelowna Art Galleries and Museums, as well as some of the best restaurants in town!

ANOTHER HIDDEN GEM

Years ago I worked with an investor on this property very close to Manhattan Avenue.  Real estate prices were quite a bit higher then and the numbers didn’t quite work for my client.  It’s for sale again. To buy this, rent it out, and watch the neighbourhood change in the medium to long term range (5-10 years) could be an amazing opportunity to capture real estate equity for your financial portfolio.

Looking for an investment opportunity in Kelowna and a good real estate agent who can help? Call me, Paige Guernsey, at 250-862-6464.

Talk to you soon…

Paige

With real estate prices and interest rates being low, coupled with the fact there are some great deals to be had in the condo market with a flood of inventory, more and more people are looking at real estate to bolster their financial portfolio.

Consider this, you take a mortgage out on a newer 2 bedroom condo that you can rent, factoring in property tax, payments on this are approximately $850.  Turn around and rent this unit out for $900-$950 a month and you’ve got a money-maker.  Interest on this loan is deductible as are any expenses to maintain the property.  I used 30% that came from a Line of Credit and a conventional mortgage of $110,000, making this a 100% financing scenario. If you have cash to put down, your payments would be substantially less.  We all know the real estate market in Kelowna will go up again. Wouldn’t it be nice to have someone pay off a loan for something you bought today for $165,000 that in 5 years time is worth $200,000?

I know that all sounds so simple, but if you are considering a Kelowna real estate investment, call Paige Guernsey on her direct line at 250-862-6464 for some useful information that can provide for your future!

Talk to you soon…

Paige