The July 2017 Real Estate Round Table discussion about Winnipeg’s real estate. Report of the market for July, Q&A from home buyers, Mould and Asbestos remediation report and tips, St Norbert Farmers Market update.
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REAL ESTATE ROUND TABLE JULY 2017.mp3[00:00:01] If you have 20 minutes a month we can get you up to date on everything involved in buying or selling a home. This is the real estate roundtable. Are a monthly update on the real estate market from a Winnipeg perspective. Now here’s your host Ryan Peterson and real estate expert BO Kauffmann. Welcome to another episode of The Real Estate Roundtable. [00:00:21] This month’s show includes a complete update on the local market. We’ll talk to Marilyn Firth about the special events going on at the St. Norbert farmers market and our featured guest today on Ask the Expert is mould and asbestos removal specialist Steve Greene from breathe easy Eco Solutions.
Ryan Peterson: [00:00:35] But first our resident real estate expert Bo Kauffmann is going to address one of the most popular questions in real estate: what comes first. Buying or selling.
Bo Kauffmann: [00:00:44] Ryan a friend of mine Ric in Southdale sent me this question. He had a friend who asked him about their current situation their real estate agent was telling them that they had to sell their present home before she would show them any more homes that they could purchase. She was asking “Can I not work out something with the bank to bridge the difference between purchase and sale. I would hate to be on the street with my family and be forced to buy something I don’t want.” Ryan, this is a very common question and at the heart of it is [00:01:14] what do you do first. [0.9] If you’re going to move up or down if you have a house to sell and you want to buy something else what do you do first buy or sell. And my answer to that is always to ask “What scares you more? Being homeless or owning two homes.
Bo Kauffmann: [00:01:28] In this scenario being homeless obviously is is a big no no for this person. So my advice to her would be to speak to the bank to get their assurance. And if they say that it’s OK to own two homes because worst case scenario you buy a home and you cannot sell yours in the time before you take possession of your of your new home. And if that happens you actually end up owning two homes. So if the bank says yes that’s OK you have the financial capability to do that then I would say buy first. However if the bank says “No you’ve got to sell the house before you take possession of a new one!” then I would say put yours on the market for a long possession day.
Bo Kauffmann: [00:02:08] And I just did that with two couples and that’s what we did is we put up their properties for a long possession day, we sold it and then as luck would have it we found the new home for them within a week.
Ryan Peterson: [00:02:18] I had the opposite happen to me when we were between our starter home and the home we’re in now. There was actually a two month period where I own two houses.
Bo Kauffmann: [00:02:26] And that’s fine so long as the bank sticks by you because if they don’t you could lose the new purchase. You could lose your deposit and that’s kind of a scary scenario too.
Ryan Peterson: [00:02:35] So what about making the offer subject to the sale of your home?
Bo Kauffmann: [00:02:38] This really was a common scenario but 20 years ago if you bought a house in the 90s almost everything was done ‘subject to the sale of your house’. In today’s market it’s less common and it really depends on your situation. So I’ll give you an extreme example to show what would work if you own a $300000 house in St. Vital. So you’ve got a very popular house in a popular neighbourhood and in a very good price range. You would expect that the House is going to sell within two or three weeks. Now you go out and you want to buy something for $600,000 in Bridgewater for example. I looked this morning and there are 15 houses in Bridgewater forest that have that are in the $600000 range. And many of them have been sitting for a few months. So you make an offer on that house subject to the sale of your $300000 same Vitale house while the odds are in your favour that within the next two weeks or so you’re going to sell your house and nobody else is going to comment and make an offer on the Bridgewater house and force your hand. So that will work fine.
Bo Kauffmann: [00:03:39] But if you turn it the other way around. If you own let’s say a $500000 condo somewhere and those can take six eight months to sell easily and you’re going to make an offer on a 300 K house in St. Vitale while chances are that before long somebody else is going on. Also make an offer on that house and force your hand. So that’s not going to work as well. So it really depends on on your situation and you didn’t discuss that with your real estate agent. And I’m always able to answer those kind of questions for you if you have a question like that.
Ryan Peterson: [00:04:08] So now that we understand how to navigate the buying and selling process. Let’s take a closer look at the opportunities in the current market.[00:04:15] Time now for the market report with Bo Kauffmann of Remax performance realty.
Bo Kauffmann: [00:04:20] All right let’s take a look at the overall residential market in Winnipeg. Right now there are 2,578 houses for sale and that’s down 12 percent from last year at this time sold in the past month was 1,235 homes and that’s only down 1 percent. So what this means is we have less inventory than last year but the same kind of sales activity. Now of those 2500 active homes on the market nearly 700 are in that 200 – 300 thousand dollar range that’s mostly the range for first time buyers, and other 585 homes are in the next price range between 300 and 400,000. And 425 homes over the half million dollar markets are luxury homes considered by Remax to be in a luxury home section and thirty seven of those are over the million dollar mark. By the way if you want to buy a million dollar home, Give me a call. I’m always available to give you a hand maybe some of the new Winnipeg Jets players are looking right. That would be nice.
Bo Kauffmann: [00:05:21] Twelve hundred thirty five homes sold in June. The biggest segment there again no surprise is in that 250 to $300000 range one in five homes sold and that’s 254 homes sold in that price range. The next biggest section is the 300 to 350 price range and a little over 200 homes sold there and 108 homes sold in that luxury section of over half a million dollars. And we sold five 1 million dollar plus homes in the last month.
Bo Kauffmann: [00:05:52] Take a look at the condo market overall. We have 872 condos available that’s down 3 percent from last year. And the sales which are 173 condos in June were sold is down seven and a half percent. So that’s down. The sales are down slightly more than the available listings.
Ryan Peterson: [00:06:09] Sometimes when I’m driving around I noticed there’s such an abundance of condo developments going up. How come there are so many condos that are going up in the market.
Bo Kauffmann: [00:06:17] Well in in my opinion I think the builders finally caught up with with demand. About five six years ago there was a real demand for it and a bunch of builders got into it and now they finally caught up with it. So that’s why we’re having so many condos sitting on the market right now condos available. We have 253 in that 150 to 200 thousand dollar price range. There’s a lot of nice condos available in that price range. There’s 168 condos in the 200 to 250 range. And the same number in the 250 to 300 range. We also have 26 condos in the luxury range of half a million plus and three of those are over a million dollars. Now the average days on market for those active condos is 59 days that’s just shy of two months.[00:07:01] Now what this means is if you are interested in a condo you’re likely to find something out there and you’re likely to find even a bargain because they’ve been on the market for a while and you should be able to negotiate a little better price as well of the ones that have sold the biggest segment again is in that hundred fifty to 200 range 46 condos sold there and 30 sold in the 200 to 250 range for condos sold in the luxury and over five hundred thousand dollars and the average days on market for sold condos is 41 days.
Bo Kauffmann: [00:07:32] And I just want to round up this segment with it talking about sellers market and buyers markets and when the pig was a seller’s market. Right now if you’ve got a house in Linden Woods you’re definitely a seller’s market. There’s only four houses for sale in all of Linden Woods. East Kildonan is a fairly large area only has nine homes for sale, South River Heights has nine, Whyte Ridge only four houses for sale in all of Whyte Ridge. And Waverley Heights: Get this, there are only six houses for sale in Waverley Heights and three of those are side by sides. So if you’ve got a house in any one of those areas, absolutely, now is a great time to put it on the market.
Bo Kauffmann: [00:08:08] As for buyers markets in the 250 to $350000 range the St Vital/Meadowood has 27 homes for sale. That’s quite a lot in that small price range. Garden City has 22 and Transcona has 56 houses in that 250 to 350 range and west on Portage that’s in Westwood and St. James we have 23 homes in that range. This is a popular price range with first time buyers. Those are great areas to look in if you’re looking for a first time home.
Bo Kauffmann: [00:08:40] If you’re looking at something more luxurious 450 to $700000 homes. Bridgewater has 36 of those, Royalwood has 22, Sage Creek has 20. And there’s lots in East St. Paul as well 21 homes in that half million to $700000 range.
Ryan Peterson: [00:08:58] Coming up after the break we’ll find out about a nontoxic solution to mould and asbestos. With this month’s ask the experts Steve Green from breathe easy Eco Solutions.[00:10:12] Buying or selling a home requires specialists from multiple related fields you’re everything you need to know direct from the source as the real estate roundtable presents as the expert. [00:10:23] And joining us today is Steve Greene from Breathe Easy Eco Solutions. Welcome to the show.
Steve Greene: [00:10:28] Thank you.[00:10:29] So can you tell me a little bit about your company and how it got started about 15 years ago in British Columbia.
Steve Greene: [00:10:34] We were cleaning grow ops and we found a completely eco friendly product that actually stopped mould dead in its tracks. So we successfully grew that into a mould treatment business and moved to win a pig in 2009. At that point we started focusing almost specifically on residential homes doing asbestos stuff cleaning and air testing.
Bo Kauffmann: [00:10:58] Steve you and I have talked in the past and you’ve told me about this product that you’ve developed but what makes it so special what makes it different from the other products available.
Steve Greene: [00:11:06] Well Bo a lot of the products that are available off the shelf are not 100 percent effective killing mould. The products that are very effective in killing mould are quite often dangerous to your health. Our product is mixed for each job and it kills 100 percent of the mould. All of the time it’s completely eco friendly it’s made with nothing but food grade materials. We have had many many instances where following our treatment. We’ve had third parties come in to do the testing and they have found no measurable fungus following our treatment in an area that was completely contaminated with mould. Our product doesn’t harm pets or plants and it doesn’t damage furniture or electronics in any way.
Ryan Peterson: [00:11:51] Now Steve I bet you some of our listeners are wondering this right now what does it smell like.
Steve Greene: [00:11:55] Well we get a large variety of answers on that. But for the most part I think it smells like tea tree oil which is one of the key ingredients and a very effective mould killer. It has a very pleasant order which dissipates in about two days.
Bo Kauffmann: [00:12:06] It’ll kill on contact but you also get a way to distribute it through the house in the air as well.
Steve Greene: [00:12:12] Yes we do both. The treatment that we provide it is sprayed directly on the mouldy area and then it’s also diffused into the air which kills any spores that may have been released now and people are looking for a company to look after an air quality issue for them.
Ryan Peterson: [00:12:27] What are some of the things that they should be looking for in that company.
Steve Greene: [00:12:30] You’re going to want to look to see that the company has been in business for more than a couple of years because every year we see companies come and we see companies go. You want to make sure that they have a physical address avoid post office boxes apartments or virtual offices downtown that make the company look really good. But you want to find out whether or not they have a physical location that you can go to to actually talk to someone there if you need to. You want to make sure that they’ve got a good and responsible Web page. Ideally they provide links to places like health Canada’s Web site or the American EPA someplace that you’re going to get reliable information on the types of contaminants you’re worried about.
Ryan Peterson: [00:13:12] It sounds like your industry has its share of truck and ladder guys. What are the dangers of hiring these kinds of operations.
Bo Kauffmann: [00:13:18] They oftentimes reduce their prices because they’re not insured. They should have a minimum of $2 million liability insurance. And if they look nervous when you ask to see that then you should ask for the documentation. They should be registered with workers compensation. You can go online to the Worker’s Compensation site and find out if that company is registered. If one of their workers has an accident on your site they’re not registered you could be held responsible in your insurance company may not pay for it. That’s an unusual circumstance but it certainly has happened in the past. You should make sure that they do continuous training of their workers and their staff because they have to have a commitment to ongoing changes in regulations and you need to make very very sure that they are completely dedicated to the safety of not just their workers and company assets but also to you as a customer.
Bo Kauffmann: [00:14:10] I find a lot of Winnipeggers they like to get bargains. They could Kijiji and they find the guy that you know, like Ryan says, the truck and ladder guys but we’re talking about mould and asbestos and people’s health. So I would certainly strongly suggest that people give you a call.
Steve Greene: [00:14:26] Mold has almost immediate effects on a person’s health especially if you have an underdeveloped immune system such as children or the elderly or people who are perhaps having their immune system compromised through surgery or a disease of some kind. You definitely want to ensure that every mould problem that you’ve got is dealt with very very quickly. Asbestos on the other hand the effects are not felt for more than 20 years may not affect an old guy like you and me both. But it certainly does affect children who may be living in the house.
Bo Kauffmann: [00:14:59] Give me an example of what are some of the household products that might contain asbestos what are some examples?
Steve Greene: [00:15:04] Up until 1980 asbestos was used widely in almost all building materials so if you go into a house that was built before 1980 you can find asbestos in the flooring. Those nine by nine for tiles or the linoleum or the walls themselves and the drywall the filler that they use between the sheets of drywall or up on the ceiling if you’re looking up and you see stippled ceiling up there that could contain asbestos or even higher up in your attic vermiculite that could contain asbestos as well. So prior to doing any sort of renovation or cutting holes in the wall for any good reason or even going into your attic to add extra insulation all that material should be tested to make sure no asbestos is basically safe so long as it’s not introduced into the air as a as an air particulate. That’s correct and there’s no reason to be afraid of it just because it’s in your attic we get customers who phone up lots of times who are in quite a panic about that. We tell them that every reputable Web site including Health Canada says if you’re not disturbing it it’s quite safe.
Bo Kauffmann: [00:16:11] One of my favorite ones is when I walk into a house built in the 1920s and they have the old boiler in the basement and it’s covered in kind of a concrete mixture and that’s kind of an insulation. Does that contain asbestos.
Steve Greene: [00:16:22] Almost all the time. Yes it does. And you’ll find oftentimes the pipes that lead to it are wrapped in a pipe wrap that contains asbestos as well. That needs to be removed by a professional.
Bo Kauffmann: [00:16:33] So not the truck and ladder guy to come and cut everything apart in your house and haul it out.
Steve Greene: [00:16:37] No they will contaminate your house if they don’t set up proper containment and do the necessary safety precautions to make sure that you’re not living in an asbestos filled indoor air environment.
Ryan Peterson: [00:16:48] What are some of the warning signs that I should keep a look for in my house that I have growing mould problem.[00:16:55] Look in the areas that are primarily high humidity areas such as your bathroom or your laundry room. Those are areas that are key places where you could find under the kitchen sink or the bathroom sink where there could be a leak of some sort. You can invest in one of those cheap humidity meters that are $15 or thereabouts and check to see your humidity should never be more than 60 percent. And if it is then you can remedy that by buying yourself a dehumidifier. Now
Ryan Peterson: [00:17:25] Most homeowners prioritize their projects based on how much they cost. How can people find out more information about a ballpark figure of what this would cost.
Steve Greene: [00:17:33] And we get that question a lot on the phone and that’s why we offer free inspections. It is very difficult for somebody to say I have mould in my bathroom which we charge to remove it because if that mould is structurally damaged the drywall in the bathroom or there’s other problems that may have resulted because the mould has been there then what we probably need to do is we need to come in take a look at our certified inspectors will look over the situation. They’ll discuss it with you. They will give you a proper report on what needs to be done to resolve the problem and how you can keep the problem away after it is resolved. And then once that’s all done if there is work to be done we’ll provide you with a free no obligation quote.
Ryan Peterson: [00:18:13] Steve Greene is from Breathe Easy Eco Solutions. Steve before you go how can people get a hold you.
Steve Greene: [00:18:18] They can reach us online at. www.breatheeasywinnipeg.ca. Or they can call our number 2 0 4 4 1 6 6500.
Ryan Peterson: [00:18:29] Excellent. Thank you so much Steve for joining us today.
Steve Greene: [00:18:31] My pleasure thanks.[00:18:33] Who knows the answers to your real estate questions. Bo Knows. [00:18:37] Good thing it’s time for both know real estate and today our Bo Knows question comes via e-mail from Susie in St. Vital. Susie writes If we make an offer on a house and there are 10 other offers and we offer the highest amount at full price does the owner have to accept it.
Bo Kauffmann: [00:18:54] OK Susie that’s a great question. There’s two parts to this. One is if you’re making a full price offer does the seller have to accept it and the other one is if you’re the highest offer does the seller have to accept it in both cases the answer is no. The seller never has to accept a full price offer legally ethically they should if they’re Listowel for 299 and you make an offer for 299. Really you would expect them to accept that. However courts have held in the past that a seller does not have to accept the offer. The second part is if you’re the highest offer again seller doesn’t have to accept yours just because you’re the highest. I’ve had this happen to me where the seller recognized one of the lower offers as a relative and he decided to go with that offer just simply because he recognized the name on the offer. So a seller cannot be compelled to accept any one or the other offer it’s totally up to them and their discretion.[00:19:49] Now I’ve heard a couple of stories from friends and acquaintances where offers were turned down because the seller didn’t really want to sell the house. [00:19:55] That is a problem sometimes with private sales because they have no listing contract to compel them to do anything. Part of the listing contract says that if you’re going to list your house for 300000 and we bring you on a $300000 offer with no conditions. If you decide not to accept that you could be compelled to pay the commission. But of course private sellers can do whatever they want and that it does happen. That last minute they changed their mind and waste everybody’s time. [00:20:22] Got a real estate question. E-mail it to Boknowshomes at gmail.com. And it could be featured on the next Bo Knows real estate. [00:20:30] When we return we’ll find out about some special events that will help mark the 30th year of the St. Norbert farmer’s market. What’s going on this month in and around Winnebago find out what the community calls today in the community college.
Ryan Peterson: [00:21:47] We’re on the line with Marilyn Firth executive director of the Marché St. Norbert Farmer’s Market. Marilyn tell us a bit about the history of the market.
Marilyn Firth: [00:21:54] Well St Norbert farmer’s market started almost 30 years ago. Next year we’re celebrating our 30th anniversary. So it started in 1988 with just eight vendors on the grass getting us there at 3514 Pembina highway and we are now a much larger market with on a busy Saturday in the summertime 125 to 130 vendors. So we’ve grown a lot.
Ryan Peterson: [00:22:14] And I you know I understand there’s a number of special events throughout the season. Can you tell me what’s going on this summer.
Marilyn Firth: [00:22:20] Sure. Well this summer in August we have a special event called farmer’s days and that’s put in place on August 9th. And what happens with that event is we have our Wednesday farmer’s market because we have a market on Saturday and Wednesday.
Marilyn Firth: [00:22:34] So during that Wednesday market we’re going to have all kinds of people on site in between workshops throughout our market. And so you’ll learn he can learn all about how to make humble Chodesh for the night how to make feel good make so so all it we call it home skills with 21st century skills that your grandma knew and you wish you knew. So that’s all about. That’s the event all about. We’re very excited about that. Our second year doing that this year. And then as it’s happened we have a special event called farmer’s face and pharmacy’s is our annual fundraising dinner. It happens under the canopies on September the 7th locavores chef and Kramer makes a five course gourmet dinner simply fabulous. Five farmers will be there telling their farm stories and they’ll be eating their food and their farm stories. That’s very costly and it’s from that support to the good development of our winter market which we’ve been working on for the past two years.
Ryan Peterson: [00:23:23] Now i was just about to ask what can we expect this season from the winter market.
Marilyn Firth: [00:23:27] Well we expect our market to grow this year and that’s because we’re getting a brand new canopy on the market site. It’ll be fully enclosed so we’ll be able to host for the first time our winter market on our own site for the past two years we’ve had to go across the road to a community base they can only hold 30 vendors. So we’re expecting to really double the size of our winter market very very excited about that. We’re thinking that’s going to really grow and mature market it’s a great place to get local food year round because everything in our market is made bake or grown right here in Manitoba. We’re excited that people even think will be able to access lots of that locally.
Ryan Peterson: [00:24:04] Youknow I have a friend that about a year and a half ago moved across the street from the farmer’s market and he said he hasn’t gone a week without buying a pie yet.[00:24:12] He said well the pies are pretty fabulous I have to say so I’m sure he’s enjoying them. [00:24:18] Marilyn Firth is the executive director with the marché see numbers farmer’s market. Marilyn thank you so much for joining us today.
Marilyn Firth: [00:24:23] Thanks for having me.[00:24:24] Now before we close out the show here’s the last word with Bo Kauffmann.
Bo Kauffmann: [00:24:29] OK I started noticing this trend actually in the States they have radio ads and TV ads and they call themselves we buy ugly houses and run when a pig. Now you can see posters up on telephone poles and trees that says We buy houses for cash. Same idea. Here’s a scenario they’ll pay you cash no muss no fuss. You don’t have to list your house didn’t no mortgage required does give you a perfect position date. They’ll buy your house as is for about 65 to 70 cents on the dollar. And therein lies the rub. They’re never going to give you full value for your house. They had a house on Burnell Street a couple of months ago and this place was cute. It was original to the 1950s the original family owned this house for the last 65 years. It had plywood cupboards. It had what I call battleship linoleum flooring in the kitchen. This stuff is ugly as hell but it will outlast the house. It had baby blue bathrooms. Nothing was done to this house. Straight from the 50s. So we put it up for sale. And the first day on the market we get a real lowball offer. The offer was $188000. And when I talked to the the agent who brought the offer he explained that his clients were one of these people that wanted to buy the house and flip it changed everything modernize everything but make money in the process of course. So my seller was not happy and not willing to accept $188000 on the first day out.[00:25:58] And he’s glad he waited because about two days later somebody came up with 205,000. So that is $17000 more and that is from a family who wanted to live in the house and they’re willing to do the work themselves over the next few years. My point here is rather than sell your house at a deep discount to somebody who’s willing to offer you cash give me a shout because there are chances out there that somebody is willing to buy the house to live in and they will always outbid these people who are willing to buy for cash but who want to make quick profit in a couple of months.
Ryan Peterson: [00:26:32] Bo what’s another couple of options for people that think that their house is unsellable on the market. What could they do to get it there.
Bo Kauffmann: [00:26:38] Well first of all give me a call the house has structural problems that might be more difficult. But if it’s a house that just needs some cosmetic upgrades I certainly have a lot of contacts and connections in the industries that can help you get your house show a ball and get top dollar at that point.[00:26:54] Fantastic. Thanks for listening to this month’s real estate roundtable. Now Bo I understand that people can now subscribe to this and all of your podcast on iTunes and stitchery dot com. What do they need to do.
Bo Kauffmann: [00:27:06] Well let’s for example go to stitcher dot com that’s s t i t c h e r dot com and search for a Winnipeg’s Real Estate Podcast and that is for Android devices. If you have an apple device and you want to subscribe to it on iTunes go to the iTunes store and again search for Winnipeg’s Real Estate Podcasts is very prominent on there and you can subscribe to all the episodes not just this but all the other podcast episodes that I produce perfect until next month.[00:27:36] Get out there and enjoy the Manitoba summer and take care. Bye bye. [00:27:40] You’ve been listening to the real estate roundtable. [00:27:43] Your monthly update on the real estate market from a Winnipeg perspective Google Winnipeg’s real estate podcast to hear the latest episode or search Winnipeg home finder on Facebook.