Chris Dudeck : Latest Blog Posts

Online Advertising: Fact or Fiction

Tue, 22 Jun 2010 14:53:38 GMT

Excerpts from Open Doors, a publication of the Residential Tenancies Branch

Advertising on the Internet has a lot of advantages for landlords and tenants. It saves time, increases the number of options and provides unlimited space for details. However, tenants who are apartment hunting online must be aware of the possibility that the advertisement could be a scam.

While the potential for deceit is endless, a recent report to the Residential Tenancies Branch is a good example of how scammers use the Internet.

A tenant found an online ad for a sublet on a Winnipeg apartment. The ad had pictures showing the features of the unit. The advertiser said he had been transferred out of the country and needed to sublet the unit quickly. The tenant e-mailed the advertiser and later wired him a large sum of money for the first month’s rent. When the advertiser demanded more money, the tenant became suspicious and contacted the building’s property manager directly. The manager said the advertiser wasn’t a tenant and that there wasn’t an apartment for rent. Unfortunately, the tenant had no way to get his money back, still had to find a new rental and had to pay another security deposit.

Tips for avoiding online rental scams when subletting a unit:

Whenever possible, ask to see the unit before you agree to rent it.
Contact the actual landlord or property manager directly, to make arrangements to sign a lease and give a deposit.
Pay the security deposit and rent only to the landlord or property manager, not the individual tenant.

My House is Not Your House: Reports on Average Home Prices Are of Dubious Value

Tue, 22 Jun 2010 14:50:51 GMT

Excerpts from Winnipeg Real Estate News Publication, dated October 9, 2009

After annoucing WinnipegREALTORS® had its first record sales month this year in September, a business reporter was curious enough to ask what the lowest house sale price was in September. The reporter was told it was $17,000, which is quite a contrast from the highest at $1.15 million — $50,000 above list price.

The reporter was also interested in knowing what the average monthly MLS® house price was and how it compared to the same month in 2008.

Unfortunately, this infomation is invariably of dubious value due to such extremes in house prices. WinnipegREALTORS® has never relied on average pricing due to how varied housing can be in Winnipeg and the surrounding municipalities. Even within one specific MLS® defined territory or area, sales can be quite varied based on the mix and age of housing.

Some usefullness can be derived when there are thousands of sales over an extended period of time, which can establish a price trend. However, you always have to keep in mind that average price variables can be compositional in nature, meaning they are more a reflection of what are the most active price ranges for house sales.

Another way of looking at market price variables is to see how the percentage of sales activity is increasing at higher price ranges, which over time is a clear indication that prices are starting to move up. For example, the under $100,000 price range every month this year often makes up less than 10 per cent of all house sales, whereas 10 years ago it made up over 60 per cent of all home sales.

Only use average pricing as a true general guide and then call your REALTOR® to advise you with respect to your own property if you plan to sell and/or purchase.

The article below is worth reprinting, reporter Helen Morris explains in detail the pitfalls of average pricing.

Mi casa is not su casa; Average-price reports are only a general guide

Helen Morris

Perhaps you live in an average house on an average street in an average neighbourhood - then again, perhaps not. If you are caught up in the stress of buying or selling a home, it is tempting to become fixated on fluctuations in average prices as a guide to whether the value of your home has risen or fallen since you purchased it.

“Average prices tell the story about a broader trend, for activity and not just price,” said Gregory Klump, chief economist at the Canadian Real Estate Association. “If you’re looking at an average price for an entire area it can be skewed upward or downward by a handful of transactions that are at the high end or ... [by] a lack of [sales] at the high end.”

The average price does not in fact represent the price of an average property - if there were such a thing.

“People seem to be so hung up on average sale price. Part of the problem is that the average is only an average of what is sold. It’s not an average value necessarily for an area,” said Laurin Jeffrey, an agent with Century 21 Regal Realty. “If houses range from $300,000 to $500,000 in a given area and only the $300,000 houses sell in a given period, that doesn’t necessarily mean that the area is worth $300,000.”

Nor will the average give you a price for a specific home.

“Those price trends don’t talk to any one home in particular. It’s useful for establishing bigger picture trends along with what’s happening with price but doesn’t speak to the value of any particular home,” said Klump.

In order to try to work out the market value of your own home or that of a property you would like to purchase, REALTORS® suggest that rather than focusing on a country-wide or even city-wide average price, you go very local.

“If you’re looking for a typical price, you go into an area or a community that you want to look at and you look around and you will find a home that is pretty typical of the area ... you can use that as the guide,” said Don Lawby, chief executive of Century 21 Canada. “What were those homes worth a year ago ... what is being asked for them today? What is the most recent sales activity? And what do they sell for? That’s real typical.”

The level of market activity, not just prices, may vary greatly between and even within a neighbourhood.

“Real estate is entirely local. You can have one area of the city that’s always going to be in higher demand than another area,” said Klump. “For one area of the city where the price tag might be falling, it might be holding very steady and may be even increasing in another area. You really have to talk to somebody who is involved in real estate where you are looking at buying and [with] the property itself.”

The real estate professionals encourage potential buyers and sellers to steer clear of the average prices and look around at the immediate neighbourhood.

“You have to look at ... what comparable houses have sold and what they have sold for,” said Jeffrey.

“If you pull the numbers for all the similar properties in the area, then that average is going to help,” because that's indicative of only those properties.

“There is no Toronto market; there’s a Scarborough market and there’s a sub-market in Scarborough. There’s a Markham market and there’s a sub-market in Markham,” said Lawby. “You need expertise and local expertise where you are going to buy. And you also need to understand what’s going to happen in the future. What are the plans for the area? All of those things.”

Doing the homework and getting the right agent is key because, “This is, for most people, the largest single investment that they make in their life.”

- Helen Morris article reprinted in the Winnipeg Real Estate News with the permission of the National Post.

Established in 1903, WinnipegREALTORS® is a professional association representing over 1,500 real estate brokers, salespeople, appraisers, and financial members active in the Greater Winnipeg Area real estate market. Its REALTOR® members adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service® (MLS®) designed exclusively for REALTORS®. WinnipegREALTORS® serves its members by promoting the benefits of an organized real estate profession. REALTOR®, MLS® and Multiple Listing Service® are trademarks owned and controlled by the Canadian Real Estate Association and are used under licence.

Prepare Gas Furnace for the Arrival of the Colder Winter Months

Wed, 21 Oct 2009 20:18:33 GMT

Excerpts from Winnipeg Real Estate News Publication, dated October 9, 2009

Children are back in school, hockey season is in full swing and old Jack Frost will soon be nipping at our noses. As the days become shorter and cooler, furnaces across the country are being restarted for the first time. As these heating appliances switch on, we are reminded that fall is prime time to conduct routine inspection and maintenance on gas furnaces to prepare them for the upcoming winter months.

CSA International, a leading provider of product testing and certification services, offers the following
tips to help prepare gas furnaces forthe heating season:

Keep warm-air registers, return-air openings, and space heaters or baseboards clear of furniture, rugs and drapes allow free air movement.
Do not store combustible materials such as paper, chemicals, paint rags and cleaning products near your gas furnace.
Do not store or use gasoline or other flammable vapours and liquids in the vicinity of your gas furnace.
Ensure that there is a free flow of air to the furnace. Keep the area immediately around your furnace clear by removing any obstructions.
Clean or replace your furnace filter frequently during the heating season.
Have a qualified heating contractor perform a yearly maintenance check of your furnace and venting system.
Carbon monoxide is a colourless, odourless and lethal gas that can occur any time there is incomplete combustion or poor venting. Any home that contains combustion appliances such as a gas furnace should have a CSA International certified carbon monoxide alarm installed according to the manufacturer s instructions. If you intend to purchase a new carbon monoxide alarm be sure to look for one bearing the CSA International Certification Flame mark and CSA 6 19-01 reference mark.

Conduct Routine Inspection & Maintenance of Gas Fireplace

Wed, 21 Oct 2009 19:58:07 GMT

Excerpts from Winnipeg Real Estate News Publication, dated October 9, 2009

Spending time with a book or a loved one in front of a warm and cozy fire is a pleasant experience fnany Canadians embrace during the colder winter months. Not only do gas f ire- places offer us memorable moments and decorative qualities, they also provide comfortable, economical and supplemental heating for the home. However, before using gas fireplaces this season, it is important to take the time to conduct a routine inspection and annual maintenance.

CSA International, a leading pro.vider of product testing and certification services, offers the following tips to help you prepare your gas fireplace for the winter season:

Follow the manufacturer’s instructions in the owner’s manual, or use the care guide for maintenance and use of your gas fireplace.
Installation and repair of a fireplace should be done by a qualified professional service person.
A fireplace should be inspected before use and checked annually by a qualified professional service person.
Control compartments, burners and circulating air passageways of the appliance must be kept clean.
Do not store combustible materials, gasoline or other flammable vapours and liquids in the vicinity of your fireplace.
Due to high temperatures, the fireplace should be installed out of
traffic and away from furniture and draperies.
Children and adults should be alerted to the hazards of high surface temperatures and should stay away to avoid burns or the possibility of clothing catching on fire.
Young children should be carefully supervised when they are in a room with a fireplace.
Clothing or other flammable material should not be placed on or near the fireplace.
Any safety screen or guard removed for servicing a fireplace must be replaced before operating the appliance.
If the pilot light or flame goes out, wait five minutes or longer (see the manufacturer’s instructions) before attempting to relight the fireplace. This allows time to clear the fireplace of gas and is particularly important with direct-vent models.
Be alert for unusual odours or odd-coloured flames, which are often a sign that the fireplace is not operating properly. In such cases, contact your dealer or licensed technician for servicing. Contact the gas company or emergency services if you smell gas when the unit is off.
Gas fireplaces with glass doors should not be operated if the glass is cracked or broken.
Do not clean your fireplace if it is operational or still hot.
Do not use abrasive cleaners, and always refer to manufacturer’s instructions when cleaning glass components of your fireplace.
Carbon monoxide is a colourless, odourless and lethal gas that can occur any time there is incomplete combustion or poor venting. Any home that contains combustion appliances such as a gas fireplace should have a CSA International-certified carbon monoxide alarm installed according to the manufacturer’s instructions, If you intend to purchase a new carbon monoxide alarm, be sure to look for one bearing the CSA International Certification Flame mark and CSA 6.19-01 reference mark.
In humid or hot weather, ensure that you flip the gas switch to “off.” This will help keep your fireplace in good shape, as well as your energy costs down.