Underwriting
To support or agree to (a decision, for example). In real estate, underwriting refers to the analysis of the risk involved for a lender to grant a mortgage loan and whether or not the risk is acceptable. Underwriting involves a property evaluation as outlined in the appraisal report, and an evaluation of the borrower’s ability and willingness to repay the loan.

Unearned Income
This type of income can include funds that are gained from interest, dividends, investments, or capital gains as opposed to income that is earned by working for a salary, hourly wage, or gratuity.

Unsecured Debt
Debt that is not guaranteed by collateral is considered unsecure because there is no assurance for repayment. Most credit cards are unsecured debt, which is why the interest rates are higher than other forms of lending, such as mortgages, which use property as collateral.

Unsecured Loan
A type of loan that is given to a borrower without collateral such as property that is acceptable as security for the loan.

Up-front Costs
Certain costs must be paid when signing a vehicle lease agreement before the dealership will release the vehicle to the buyer. These costs might include the first payment, a refundable security deposit, a down payment, taxes, registration, and other fees.

Upgrades
When buying a newly built property such as a house or condominium, the builder gives the buyer the option to select higher-quality floor coverings, cabinets, windows, fixtures, etc. at an additional cost to the buyer. If the buyer decides not to purchase upgrades, he or she can simply select the standard options offered by the builder.

Up-zoning
The practice of changing the zoning in an area typically from residential to increased commercial use. This is a controversial practice because upzoning allows for greater density and conjestion in the area which affects the current occupants. The term can also apply when changing the zoning to limit growth and density.

Useful Life
The number of years in which business property that will depreciate in value is expected to be productive and in use for the business.

Usurious Rate
An interest rate that is unnecessarily high or well above legal rates. For example, sometimes intangible property taxes are applied to income from usurious rates.

Usury
The act or practice of lending money and charging the borrower interest at an exorbitant or illegally excessive rate.

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Une stratégie marketing appropriée est un élément important au succès de la vente. Dans un marché de vendeurs, présentée la propriété sur MLS peut être suffisant. Par contre, si le marché change et tend à devenir un marché d’acheteurs, l’inventaire de propriétés à vendre augmente et le marketing doit être plus agressif. Il devient alors important de faire affaire avec un agent qui utilise des outils marketing plus diversifiés.

Les journaux locaux ou spécialisés peuvent s’avérer des choix judicieux. Utiliser plusieurs outils informatiques est une méthode efficace car une grande majorité d’acheteurs entameront leurs recherches sur internet avant même d’engager un agent. Le but est d’offrir le plus de visibilité possible pour susciter le plus d’intérêt possible de la part des acheteurs potentiels ou de leurs agents.

En plus, d’utiliser plusieurs outils marketing, il faut aussi présenter votre maison sous son meilleur angle sans toutefois faire de fausses promesses qui ne seront pas tenues lors de la visites. (texte descriptif, photos, etc.) De plus, certaines périodes de l’année sont plus appropriées à tel ou tel médias, un professionnel de l’immobilier sera en mesure de vous faire part de sont expérience dans le domaine.

A venir: Communication entre le client et l’agent

Ecrit par Sheila Iacono. Agent immobilier affilié.
Royal Le Page Habitaction. Courtier Immobilier agreé.

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The Calgary Herald seems to be quite busy reporting for Canada and the US.

• Housing is too expensive - The Montreal Gazette
• Calgary home prices fall 8% - Calgary Herald
• Home sale prices fall in July - CBC.ca
• Housing market dodging worst of US meltdown -Calgary Herald
• Albertans’ household finances in decline - Calgary Herald

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Even though these days we are getting more descriptive Property Information Sheets, there can be times when you’ll run into an almost illegible document. These property sheets were often described with a lot of abbreviations. Trying to decipher its meaning is almost as hard as finding a good property!

Here is a bilingual list of Real Estate abbreviations used to describe residential properties.

Click on this link to view the PDF file: Abbreviations List
(You can save a copy or print)

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Just today, Rob Carrick from Globe and Mail’s Report on Business, wrote a comprehensive article on the Canadian Real Estate Blogosphere, as well as the Financial Blogs.

Well, it’s about time someone notices the bloggers :)

In his column, he mentions:

Blogs, on the off chance you haven’t heard, are an online platform where people with an interest in a topic post their musings on a regular basis. Financial topics are big in the blogosphere and, as money matters go, there’s nothing bigger for most people than buying and selling a home.

Most housing blogs are written by people in the industry, such as agents or mortgage brokers, which makes sense because real estate matters are not a day-to-day concern for most individuals. One issue that does come up repeatedly is mortgages, which happens to be the subject of one of the most essential blogs in the real estate area.

Good Mortgage blogs in Canada are hard to find. The already mentioned Canadian Mortgage Trends has to be one of the best mortgage blogs I have read so far. Updated daily and always with fresh information.

There were several other blogs included on Mr Carrick’s article, which we already have them listed on our links page. As for the ones he forgot to mention: Move Smartly - (another favorite) and last but not least, Montreal Real Estate Blog.

It’s OK. We won’t take it personal :)

Read Rob Carrick’s article: Looking to buy? Sell? Blogs can help

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The value of new homes in Canada barely grew in June, with many regions posting annual declines once adjusted for inflation, new figures show. But despite forecasts for more soft readings ahead, economists say Canadians are not expected to experience a major U. S.-style correction because prices are still historically high.

(..) It was the slowest yearly rate of growth since March, 2002, and barely outpaced headline inflation, which rose to 3.1% in June.

Growth has slowed since peaking at the unsustainable pace of 12.1% in August, 2006. However, it still averaged a high 7.8% in 2007.(..)

(..) Growth in Toronto picked up slightly to 3.8% compared with 2.5% a year earlier, while in Montreal, prices rose by 5.6%, up from 3.9% in June, 2007.

If you have been following the Canadian Market trends, you probably realized by now that even with the slight increases of sales (quarterly), we are still facing a very volatile market. Checking back with previous Market News, in April we had a report from the Canadian Housing Corporation giving us the details a low market. Canadian Housing was down by 16.3% - with the exceptions of British Columbia.

For those who are wondering when is the best time to put your home for sale, this is one of those times we all can say: We just don’t know.

But, we keep on watching the trends, and take it from there.

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In the 1960s, Fair Isaac Corporation started working on a system lenders could use to evaluate the likelihood of receiving repayment on loans. Prior to that, it was really a matter of trusting an individual to be a “man of his word,” so to speak. Fair Isaac sought to take human error out of the equation with a reliable system that could determine whether or not consumers were truly worthy of credit, and thus FICO was born. This evolved to become the standard for lenders by the 1980s.

Credit scoring has an enormous impact on a borrower’s ability to purchase a home. It can mean the difference between getting a good interest rate and the home of their dreams, or whether they even qualify at all. For this reason, it is important for borrowers to understand the credit scoring process, and to know what their credit score is when they look to obtain mortgage financing.

What the credit scoring model seeks to quantify is how likely the consumer is to pay off their debt without being more than 90 days late on a payment at any time in the future. Credit scores can range between a low score of 300 and a high of 900. The higher the client’s score is, the less likely they are to default on their loan. Only 5% of the people in Canada have a credit score above 800. These are the slam-dunk clients that walk away with the best interest rates. On the other hand, approximately 4% of the people in Canada are faced with the possibility that they may not qualify for the loan they want because they have a score between 500 and 600.

Stay tuned for Credit Scoring, Part II: The Five Factors of Credit Scoring

Written by Danuta Levitzki.
Conseillère en Financement Hypothécaire | Mortgage Loan Specialist
Visit her website

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Vendor Take Back
In order to sell a property, the seller will provide all or some of the financing to ensure the transaction.

Verification of Employment
Confirmation from a place of employment that verifies a loan applicant is being truthful about where he or she works and about the salary he or she earns.

Void
Something that is void has no validity or effect under the law meaning it is null. For example, a contract can be rendered void.

Voidable
When an individual or party involved in a contract is entitled to renege or retract the contract at his or her discretion.

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Tax Deduction
An allowable (by government) expense that can be subtracted from income before calculating income tax.

Tax Deferral
A method used to postpone current year taxes to a later year. This is typically done by recognizing income or a gain at a later time. It is important to remember that using tax deferral only delays tax liability, it does not eliminate it.

Tax Exempt
Income that is not subject to taxation. It is important to note that income exempt from federal taxation is not necessarily exempt from provincial taxation.

Tax Lien
A claim or obstacle that prevents the sale of a property due to unpaid taxes. The property title cannot be transferred until all liens are cleared.

Tax Sale
Property that is sold by the government to recover unpaid taxes.

Tax-sheltered
A savings or investment plan that offers significant tax savings.

Taxable Income
Income that is subject to taxation after accounting for adjustments, exemptions, and deductions.

Tear-down Condition
A property that is purchased for the sole purpose of tearing it down to build a newer house. These types of properties are generally located in desirable locations with spectacular views or amenities.

Teaser Rate
The the below-market interest rate that is offered by lenders or credit card companies to gain new business. Offering a below-market interest rate often encourages people to switch credit cards or lenders to save money. Also known as an introductory rate.

Tenancy by the Entirety
The ownership of a property by spouses where each spouse owns an undivided interest in the entire property. When one spouse passes away, the other holds title to the entire property.

Tenancy In Common
Ownership of a property by two or more persons. If one tenant passes away, his or interest does not pass to the survivor. It is treated as an asset of the deceased’s estate.

Tenants in Common
The ownership of a property by two or more individuals where each owns an undivided interest in the entire property and each has equal rights to use the property. If one tenant in common passes away, his or her interest may be sold, mortgaged, or given to an individual named in the will.

Tenure
The means, process, duration, or right of holding something such as the title of real property and conditions by which the property is held.

Term
1. A limited or set period of time.
2. When dealing with a mortgage, term refers to the length of time in which a borrower agrees to pay back the lender. The interest rate and payment schedule is also predetermined. The interest rate typically stays constant during the term unless otherwise specified in the loan agreement. For example, a five year fixed rate mortgage has a term of five years.

Term Deposit
An investment product where a fixed sum of money is deposited into an account for a set period of time with interest paid over the term.

Term Loan
A loan intended for medium or long term financing that provides cash to purchase fixed assets such as machinery, land or buildings, or to renovate business premises.

Timeshare
A form of property ownership where multiple owners take turns using the property at designated times throughout the year. Timeshares are typically vacation homes located in resort destinations.

Title
Evidence or written proof that shows a person’s right to possession or ownership of a property.

Title Defect
A legal claim made by an external party against the property or the right of another party to make demands upon the property owner.

Title Insurance
A policy that protects the lender against loss which can result from inconsistencies in a property title such as liens or claims against the property. This policy also protects the homeowner if he or she purchases an owner’s policy in addition to the title insurance.

Title Report
A report that reveals any competing claims, liens, or other problems relating to a property. A title report is required before title insurance will be issued. Also known as a “Preliminary Title Report” or “Prelim.”

Total Debt Service
The ratio of a borrower’s total monthly debt as compared to his or her monthly gross income. Lenders use this ratio to determine how much the loan applicant is allowed to borrow.

Total Expense Ratio
The percentage of monthly debt payments compared to total before-tax income.

Trade Equity
The exchange of property as part of a down payment when opting to buy another property. Other properties and vehicles are commonly used in trade equity as partial down payment.

Transfer duties (Welcome tax)
Tax imposed by a municipality on any transfer of right of ownership on its territory.

Trans Union
One of the major Canadian credit bureau companies along with Equifax.

Trust
A trust is a fund that is set up similar to a will. The trust specifies how money or property will be disbursed, it lists the recipients or beneficiaries, and names one or more trustees to manage the assets. An irrevocable trust cannot be changed after the terms are finalized; a revocable trust has more room for how much can be transferred, but it is usually more expensive to maintain.

Trust Account
An account used by a law firm or real estate agent to control funds set aside for costs associated with a real estate transaction. This account also holds any other money put forth by the buyer and seller before the closing.

Trustee
An individual that manages assets or holds legal title to property in order to administer it for a beneficiary.

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Un prix inscrit trop élevé est habituellement la raison #1 pourquoi une propriété n’a pas été vendue. S’il y a plusieurs maisons à vendre dans votre quartier qui offrent les mêmes caractéristiques que la vôtre (nombre de chambres et salles-de-bain, carré de maison ou grandeur de terrain, etc.) et qu’elles affichent un prix plus alléchant, c’est évidant qu’elles seront vendues avant la vôtre. Votre agent devrait être en mesure de vous fournir une étude comparative de votre secteur qui reflètera l’activité immobilière récente des alentours. Ce document devrait regrouper votre compétition actuelle, les propriétés voisines vendues (et leurs vraies conditions de vente) et celles qui comme la vôtre n’ont pas été vendues.

Les 3 erreurs les plus fréquentes au niveau de la stratégie de prix sont les suivantes :

1. Dans plusieurs cas les propriétés qui finissent par expirer sont le résultat des fausses promesses de certains agents. Ils surestiment le prix de votre maison car c’est ce que vous voulez entendre. Ils s’assurent ainsi d’avoir leur pancarte devant votre porte. Belle publicité pour eux et opportunité d’utiliser vos acheteurs pour vendre d’autres maisons plus abordables.

2. Les vendeurs attribuent une valeur sentimentale à leur propriété. Les acheteurs sont dépourvus de sentiment à l’égard de votre maison, ils s’en tiennent aux caractéristiques physiques et financières. Votre agent peut vous aider à voir les choses avec les yeux d’un acheteur.

3. Inscrire à un prix élevé et se dire que les acheteurs pourront toujours négocier. Dans un marché comme celui d’aujourd’hui la marge de négociation est beaucoup plus restreinte qu’elle a déjà été. Les acheteurs le savent et ne s’intéresseront pas aux propriétés qui affichent un prix beaucoup plus élevé que leur budget maximum. Cela aura donc pour effet de réduire votre visibilité sur le marché. Plus votre maison est vue plus elle risque d’attirer l’attention. Plus elle attire l’attention, plus elle risque d’attirer les offres. Plus vous avez d’offres plus vous risquez d’obtenir la meilleure. C’est difficile de négocier lorsqu’on n’a pas d’offre à négocier.

Ecrit par Sheila Iacono. Agent immobilier affilié.
Royal Le Page Habitaction. Courtier Immobilier agreé.

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