Here’s five questions to ask any prospective managing agents to ensure that you get the best deal for your residential block.

1. Insurance
Does the managing agent obtain sales commissions on insurance premiums?

Managing agents typically take a sales commission on arranging insurance for the blocks of flats that they manage. The agents will give leaseholders no say in which broker through which they choose to arrange the premium. As a result, the agent can go to whichever broker is willing to give them the largest slice of commission – in return for handing them the business in the first place – and the leaseholders are left to foot the inflated bill, even though there is cheaper like-for-like insurance freely available.

With block administration services, however, it’s the leaseholders who make the final call on who provides insurance. This cuts out the middle man managing agent and consequently the sales commission, and typically results in a 50% reduction in premiums for the block. With block administration services, regardless of which broker is contracted, no sales commissions are taken at any stage in the process.

2. Contractors
Who decides the contractors that work on your block?

As with the insurance example, managing agents select contractors to do work on the blocks that they manage based only on the basis of how much commission the contractor is willing to pass back to them. Worse still, sometimes agents will only sub-contract companies to which they are related, some of which operate from the same offices! Again, this is a cynical ploy to make sure leaseholders’ money remains in the loop. With block administration services, leaseholders are free to select contractors, and are provided with a database of prospective contractors ready to provide competitive quotes in order to save leaseholders the trouble of searching themselves.

Again, with block administration services, it’s the leaseholders who make the final call based on the competitiveness of the quote and quality of service provided, rather than the slice of commission available – no sales commissions taken along the way.

3. Disbursements and admin fees
How many additional charges could you be incurring?

Another way in which managing agents attempt to secure a steady income stream is by charging for so-called ‘disbursements’ and admin fees. Ask them how much they charge for sending a letter, accepting alternative methods of payment, even receiving phone calls!

With block administration services, there are no additional admin fees, just a flat rate management charge for the year, and any disbursements are charged at face value and no more – a stamp is charged at the price of a stamp.

4. Transparency
Will you be charged if you wish to see contractors’ invoices?

Most managing agents will automatically pay contractor invoices on behalf of a block without consulting the directors of the management company. If the directors wish to see the invoices at a later date, the agent will either charge them for the trouble, or insist that they come round to their offices in person.

With block administration services, directors’ approval is always sought before contractors invoices are paid, to ensure that the directors are happy with the work that has been done. Additionally, leaseholders have access to every invoice that has been paid whenever and wherever they want it through their secure Block Website.

5. Termination of contract
What happens if I wish to terminate my contract with my managing agent?

As you might have noticed by now, managing agents like to make what they can from their clients, despite their services commonly falling short of leaseholder expectation, or worse leaving leaseholders wondering what, if anything at all, they actually get in return for their service charge. And the story is no different when it comes to terminating your contract. Typical agents will dig their heels in, demand up to twelve months’ termination notice and may also charge a termination fee equivalent to three months’ agent fees.

The general trend lately has been for these rates to come down, but it is worth trying to get them even lower if you can.

Legally, commissions have to be up for bargaining otherwise they could be prosecuted for price fixing. With regard to real estate commission, just getting a percentage point off is worth it.

Once you have made up your mind to bargain on commission, you need to do some analysis so that you know what general prices are at the time. Because it is your house that they are making money on, you have a bit of leverage.

You should ask several brokers to give you a commission quote. Then you can use these figures to secure the best rate. Also, by finding out as much as you can, you may find more information that will give you even more leverage.

Going online is probably the best place to find all the information you will need to bargain on commissions. The web has increase competition between brokers, and it is the perfect place to find out what is happening in the market at the time.

Another good thing to do is to offer your broker a variety of rewards to ensure you get a lower rate. For instance, you could offer a cash amount if your place sells within a time period, or if it goes for a set amount.

If after all this, you still cannot get a cheaper commission rate, then you need to see if you can find a broker who has a cheaper flat rate. Usually, these can be found online, they often save money by not having physical offices.

The cheap ones will often let you select which services they will do. If you do this, then you can cut back where you want and save some cash.

Every piece of land you look at may not be suitable for your needs. Buying a piece of land without doing the proper research is risky. You could end up with a piece of land that you can not build on and one that you have a difficult time selling.

The following are the first five items you should check into before you consider the purchase of land:

Overall Appeal

When you are looking a piece of land, the first thing you should do is step out of your vehicle and take a deep breath. While doing this, close your eyes and listen to your surroundings. Are there any particular odors that may be offensive? Are there any sounds that could become annoying to you? The last thing you will want to do is to purchase land near a factory or something else that has foul odors or loud sounds coming from it.

Setback

Every city and town has set a standard for building on land. The setback is actually the distance between the property line and the building to be constructed. If the setback for the town you are in is 25 feet, this means that nothing can be built within 25 feet of the property line. This should always play a factor in your decision. For example, if you have a piece of property that gives you limited views of the water and the views you could get are located within that 25 foot distance, you will not be able to build a home and get the view you want from your living room or any other room in the house. While you can go in front of the town and apply for a variance, this can be time consuming

Deed Restrictions

Whenever you are looking at a piece of land, you should always have a copy of the deed. Deed restrictions can be placed on the land by former owners of the property or, in certain cases, the town itself. Some common examples of deed restrictions include limitations on the structure that can be built, such as what types of materials can be used, and limitations on the size of the home. It may even state that you are not allowed to have a business on the land or livestock. You will always want to review these restrictions before purchasing.

Right of Ways or Easements

If there are any rights of way or easements on the property, you will also find these on the deed. Basically, a right of way or easement, allows others legal passage across the land. For example, if there is a right of way for the power company, they could have access to this area of your land and may even have the right to construct a building or install power lines on it. Private parties who have a right of way may need it to gain access to their own property. Regardless, if you value your privacy, purchasing a lot with easements may not be your best option.

Minimum Acreage Standards

Many towns have minimum acreage standards put in place to prevent overcrowding. In other words, if the minimum acreage required is 2 acres and the lot you are looking at is only 1.30 acres, you will not be able to build without a variance. Not only that, if you are buying a large lot and wish to break it up into several lots to sell in the future, the particular piece of land may have already been divided and has reached the subdivision limits. Always verify that you can do what you want with the land before you purchase.

After you have stood on the property, determined that you liked its overall appeal, and have carefully looked at the town requirements and deed, you will be able to better determine whether the property is a potential candidate for purchase. Other things you should take into consideration include the elevation of the property, utilities, and its overall location in relevance to natural hazards.

By carefully considering all aspects of the property, you will be able to better determine whether it is the right piece of land for you. Should you decide to purchase the land, you can then meet with a Title Attorney, who will conduct a title search on the property, to verify that no one else can lay claim to it. Within a short time, you can be the owner of your own piece of land.

If you’re a buyer, seller or both, check out these ten tips for navigating the real estate market successfully.

Tips for buyers

1. Be the king of the castle
Rather than owning a condo or apartment, make it worth your while and go for a house. Now is the perfect time because the economy is slowly recovering, thus interest rates are at all-time lows and if you can get a mortgage for a house, there’s never been a better time.

2. Location, location, location
It does not matter if you’re a first-time buyer, investor or existing homeowner, as the old adage goes location is everything. Look less at the size of the house and more on the location of the lot, as that will make the difference when trying to sell. Any condos or apartments near shopping, transit or university/collage will really set your property off from all the others.

3. How much can you spend?
This question is vital to a happy home buying experience. Meet with multiple mortgage lenders and obtain a few pre-approved mortgages before even looking for a house. Once you have a maximum amount established it will help to narrow down potential homes, and will help you avoid even looking at homes way over budget so you don’t get carried away. Most importantly stick to your budget!

4. Look outside the city
Instead of just looking within major city limits try looking in established, well known areas a bit out of the city. This will more likely result in more bang for your buck, and is a better option for a family as it will allow for more space and the freedom to roam.

5. Know your credit rating
Make sure your credit is in good standing before meeting with a broker. This will not only avoid unwanted surprises and delays in the future, but may also save your reputation with your broker. Both Trans Union of Canada at 1-800-663-9980 or Equifax Credit Information Services Canada at 1-800-465-7166 can help you find your credit rating.

Tips for sellers

1. Out with the old in with the new
Before selling your house, bring its aesthetics up to par. Make sure to remove all clutter from within the house, and keep the yard tidy for maximum curb appeal. Add bright accents to area you want to highlight, and remove or recondition older furniture. Or if you’re not the best designer consider hiring a professional stager, it may cost a pretty penny but you can make a first impression only once!

2. Advertise your way
This can be either in the form of a Real Estate agent or FSBO, it all depends on you and your needs. If there is no rush I would suggest trying online real estate classified websites such as The Home Machine as you could save thousands of dollars in commission, and learn a few things along the way. Or if money is no object or time is tight then a Real Estate agent may be the way to go, as it leaves you free for other things. Only you know your property so only you can decide.

3. Is the price right?
Price your property right the first time, and according to the current market conditions. Some sellers believe that if they overprice their property, they have more room to negotiate or they can always reduce it later. This method is not worth the minuscule gain it may bring because many buyers will just skip over your home as they cannot afford it. Also continually reducing the price does not make potential buyers confident in the home as it leads to questions as to why the price keeps dropping.

4. Upgrade and update
If your homes till has shag carpet and dangling beads in place of a door consider updating such dated items as it hides the true beauty of the home and potential buyers will immediately be turned off by it. Don’t gut the entire house, but dated items MUST go before an open house.

5. Closing dates are negotiable
If you receive an offer, but the closing date is 30-60 days later than the property you are moving to, don’t let that decided the fate of the deal. Most mortgage lenders will approve bridge financing for short periods if all conditions have been removed and the sale is firm. If you are still uneasy call your lender and confirm they will help you out in this scenario.

Selling your home without getting a proper appraisal done is like opening your bulging wallet in a hurricane — your hard-earned money will be sucked away with the wind. This is because without a good appraisal, your home may be under priced and you could lose a great offer, or overpriced so it won’t sell. Either way, you have done yourself a disservice.
You may also want to get an impartial appraisal done on your home if you are not immediately selling for other reasons such as: refinancing a mortgage, purchasing home insurance, reducing property taxes, or facilitating divorce proceedings, to name a few. No matter who you hire for an appraisal, the underlying purpose is to develop a carefully documented estimate of your house and property value through in-depth research. The completed document protects the interests of several parties, including the buyers, sellers, mortgage lenders and other people involved in the transaction.

If you require an appraisal for your mortgage lender, you will be responsible for the cost of the document, which is approximately $200-400. Most lenders will have a list of appraisers they trust, so it is in your best interest to play in their ballpark and choose a company they are familiar with. Although you actually pay for the appraisal services, the lender is the one who owns the document, unless they legally release the papers to you. You will receive a copy for your reference.

When you are dealing with an appraiser, ask how many homes he or she has appraised in your neighbourhood. This is important, as these appraisers will be very familiar with property values in your area. They will also have a strong knowledge about additional factors that affect property values, such as nearby schools, shopping and fire department access. Home appraisals are primarily subjective, so it is important to have up-to-date information including the current market value in your area. This figure could change in coming months depending on the volatility of the real estate industry.