Good morning everyone;
I hope all are over the Halloween candy hangover!
This year my family and I dressed up and went out as the ever popular Avengers – I was Thor (wig, cape, hammer, muscle suit and all), God of Azgar or something? . That night I had an offer presentation and timing was tight. I was about 10 minutes away from presenting my clients’ Offer to Purchase as Thor – Super Realtor. Luckily the property was nearby and I was able to change into Anthony – Super Realtor (I left the cape on – not really).
What’s the buzz in GTA?
- Multiple Offers are still happening!
- This week I was involved in 2 separate multiple offer situations.
- The first property was not sold after an offer night but 1 week later my clients and I submitted an offer and a few hours later a competing offer came in!
- The 2nd occurred on Halloween with as the scheduled offer night. 3 buyers were competing for the home.
- I’m finding that it’s about a 50/50 split in regards to homes using the multiple offer strategy to go to market. Of those that do, it’s a 50/50 split of the home actually being sold on the scheduled offer presentation night. Having said that, if they are indeed quality homes or priced right (both really) the same homes seem to be selling within 1- 2 weeks following. The fact is that despite the sales transaction rate being down versus last year, there still is a shortage of solid properties and that’s why the average sales price continues to increase.
- Many buyers are getting very fatigued with stalled tactics are a few are deciding not even to participate. “Let’s wait and see what happens?”
Next week I will be able to provide the October numbers for you and the full Market Watch Report.
MPAC Property Assessments (Most owners have already received their assessments or will be within 1 week)
- The Municipal Property Assessment Corporation (MPAC) is responsible for assessing every privately owned property in Ontario. Based on the assessment, local property taxes are levied.
- Assessments happen every 4 years. Taxes are increased slightly every year until they “catch up” to the assessed value in year four. This is to avoid the shock of a giant property tax hike. Then towards the end of the 4th year a new assessment is carried out (this where we are at now).
- In the GTA, the majority of assessments are lower values of what the subject property would actually sell for on the open market. In some rare cases the assessment may be higher than actual market sale value.
- Just last week I helped clients purchase a home assessed at $720,000 (In 2008!) for $690,000.
- If homeowners feel that their property is assessed too high, they can contest the assessment and try to lower the value in order to lower their property taxes.
- If you purchased your home within the last 1-2 years for the same or higher amount than the MPAC assessed value, you will most likely not be successful in any challenge.
What is done to determine a property’s value?
- Typically the most recent area market data/sales are used for like properties.
- Unique property characteristics are considered and adjustments made.
- Obtained building permits are looked at to determine renovations and upgrades carried out on a home that would increase value.
- For unique properties, MPAC may want to visit the actual property to perform their assessment.
- Sometimes owners are asked to fill in questionnaires/surveys – This just occurred to a client of mine who I helped broker a private deal. This also happened with are newly constructed office.
Just received your property tax assessment? – Click on the link below to determine your most current property tax
http://wx.toronto.ca/inter/fin/tax.nsf/tax?OpenForm&Seq=1
The Toronto Tax rate is 0.7711981%. – A sample is provided below
| Results for property with an assessment value of $1,000,000 | ||||
| Total Taxes: $7,711.98* | Of which:
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* Please note that this amount is the total tax amount on your home. A portion of this goes to fund the Province’s Education system. This is why your total taxes are made up of a City rate and an Education rate.
South Of the Border
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Have a fantastic Weekend, Anthony