On June 1, a tougher mortgage qualifying rate came into effect in Canada, this qualifying rate, also known as the “benchmark” or “stress test” affected homebuyers’ purchasing power by reducing the amount of mortgage they can qualify for.

A mortgage stress test is a way of determining exactly how much a home buyer can afford (and under what circumstances). If their income was reduced or they lost their job, could they still afford to make the mortgage payments? What if interest rates were to spike or they needed to refinance their home?

While some believe the government’s choice to stiffen the stress test is to help cool hot markets it is more likely a foreshadowing of mortgage rate (contract rate) increases in the near future.

This type of check and balance planning is important. Interest rates fluctuate, as do home prices. A homebuyer knowing they can still afford to pay their mortgage if interest rates increase is important, and could affect the kind of home they decide to buy.

Since 2018, all Canadian home buyers getting a high-ratio (putting less than 20% downpayment) mortgage have been subject to a mortgage stress test, the test now applies to all mortgages (high-ratio or otherwise). The mortgage stress test requires banks to check that a borrower can still make their payment at a rate that’s higher than they pay.

When a home buyer applies for a mortgage, they will be offered a contract rate (the rate your mortgage payments will be calculated on) however they will need to qualify at the qualifying rate which is higher than their contract rate.

On June 1, the qualifying rate increased from 4.79 percent to 5.25 percent (or 2% higher than your contract rate, whichever is higher) and all mortgages high-ratio or otherwise must now use these new stress test numbers.

A tougher stress test means potential buyers with a higher debt to income ratio won’t be allowed to borrow as much, ultimately helping to protect the market if interest rates increase.

OSFI – Canada’s financial regulator – said it will review the minimum qualifying rate on an annual basis.

Ultimately for home sellers, this could lead to fewer buyers, if the stress test decreases the amount homebuyers can mortgage and therefore afford the market could see fewer homebuyers.

As a home buyer, they must check with their bank or mortgage broker to see how the new stress test will affect their ability to purchase a property. If a homebuyer can no longer qualify for the payments they were previously approved for they may need to weigh their options, save a larger down payment and defer the purchase or choose a more affordable home.

The June 1 change to the qualifying rate means on average home buyers will lose 4% - 5% of their purchasing power (the amount they can afford to purchase).

There were 3,209 sales in April, a new record high for the month, as Calgary's housing market continues to bounce back from the pandemic lows recorded in 2020.

"Despite entering the third wave of COVID-19, there is more optimism of economic recovery when the economy re-opens," said CREB^® chief economist Ann-Marie Lurie.

"However, the recent surge in home sales could be a result of potential buyers wanting to enter the market before any further changes occur in prices, interest rates and lending policy. This could erode some of their purchasing power."

Recent price gains and tight market conditions have also encouraged many sellers to list their home this month. However, demand was strong enough to absorb the additional supply, ensuring the market continues to favour the seller. With 4,670 new listings coming onto the market in April, inventory levels trended up relative to last month and last year. With the elevated sales, the months of supply remains below two months.

Persistently tight market conditions are causing significant upward pressure on prices. For the second consecutive month, the unadjusted benchmark price rose by more than two per cent compared with the previous month and more than nine per cent compared with last year's levels.

While sales improved across most price ranges, product priced above $600,000 represented 25 per cent of the sales that occurred this month. This is a significant increase from last year when they only represented 12 per cent of sales. The shift in distribution is causing both the average and median prices to record double-digit year-over-year price gains.

HOUSING MARKET FACTS

Detached

Detached homes hit a new record high for the month with 2,046 sales in April. Gains in new listings helped support stronger sales, but they did little to ease the persistent sellers' market conditions. The months of supply remained well below two months in this segment, which is contributing to a steady climb in prices.

As of April, the benchmark price rose to $529,100. This is nearly 11 per cent higher than last year and more than $30,000 higher than levels recorded at the start of 2021. The recent gains were enough to push the benchmark price to a new high, reflecting full price recovery from 2014 levels.

Strong price gains occurred across most districts in the city thanks to persistently tight conditions. However, the pace of price adjustments did vary depending on location. The City Centre district has seen the slowest rebound and prices remain nearly seven per cent below previous highs.

Semi-Detached

Following several months of strong sales, year-to-date sales reached record highs in April with 888 sales. This is the only property type to reach record highs based on year-to-date figures. Gains occurred across every district and price range. Like the other sectors, gains in new listings were not enough to move the market out of sellers' conditions, as the months of supply remained below two months.

The tight market conditions supported price growth across all districts, with the strongest year-over-year gains occurring in the North, North West, and South East districts. In April, year-over-year price gains in these districts were above 12 per cent, which was enough to support new monthly record-high prices.

Row

After the first four months of the year, row sales totalled 1,217 units. This the best start to the year since 2007, and well above long-term averages.

New listings in this sector have also been on the rise, causing inventories to trend up. Supply has risen above levels recorded last April, but strong sales compared to inventory levels have caused the months of supply to remain just above two months.

This is significantly lower than the longer-term average, which is closer to four months. While these conditions have only persisted over the past three months, prices have been slower to climb. As of April, row benchmark prices climbed to $293,400. Prices have been trending up across all districts of the city, but they remain well below previous highs.

Apartment Condominium

Further improvements in April resulted in 1,280 year-to-date sales in this sector, which is the strongest sales seen over the past six years.

New listings also remained high compared to typical levels and inventories continued to rise. There was more inventory in the market, but the improvement in sales did cause further reductions in the months of supply.

In April, the months of supply was just over four months. This is fairly consistent with longer-term trends and reflects the most balanced conditions seen for some time. With less oversupply in the market, prices have been trending up and in April the benchmark price was $251,900. This is more than three per cent higher than last year.

Price improvements did vary by location and it will take some time for prices to recover to previous highs.

For example, there was a two per cent year-over-year increase in the City Centre, where most of the condo sales occur, but prices remain nearly 17 per cent lower than previous highs.

REGIONAL MARKET FACTS

Airdrie

Sales activity remained strong in April, as purchasers took advantage of the gains in new listings this month. The recent rise in new listings has caused inventories to increase relative to the past several months, but it did little to ease the sellers' market conditions that have existed since last year.

Persistent sellers' market conditions placed upward pressure on prices, which as of April sit nearly 10 per cent higher than last year.

Prices started improving last year, but over the past several months the months of supply have been just over one month, contributing to the faster pace of price growth this month.

As of April, the benchmark price was $365,100. This is only slightly lower than record highs, due to lower price figures from the apartment and row sectors. Both the detached and semi-detached sectors have seen prices fully recover to previous highs.

Cochrane

April sales rose again compared with last month's record highs. New listings also remained elevated, but it was not enough to meet the demand, as the 178 sales outpaced the 161 new listings. Inventory fell to 172 units, which is the lowest April level recorded since 2007.

The months of supply dropped below one month in April, which is causing steep price gains. The unadjusted benchmark price in April hit a new record high at $439,300. This is nearly four per cent higher than last month and eight per cent higher than last year's levels.

Okotoks

Improvements in new listings this month were nearly matched by sales activity, keeping inventory low. In April there were 108 units in inventory, which is over 50 per cent lower than typical levels for this month. The low inventory levels and strong sales caused the months of supply to fall to one month.

Like other areas, Okotoks is experiencing strong price growth. In April, the unadjusted benchmark price reached a new record high at $463,000. This is nearly three per cent higher than last month and over 11 per cent higher than prices recorded last year.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

There has been a tremendous amount of recent debate on how multiple offer situations should be handled as we experience an increase in overall real estate activity. Numerous listings are having more than one offer for the sellers to consider soon after they are listed, the debate about what method would be most beneficial for all parties including the market itself thus picks up steam.

The most common method currently used with multiple offers is called the “blind offer” method. The process consists of the listing realtor setting a time for which all offers from potential buyers must be submitted for review. Potential buyers must write their best offer, including the highest price they are willing to pay, putting forward a large deposit which can be seen as a sign of strength, removing conditions they might have otherwise included such as financing or home inspection and setting a possession date that is as amicable as possible for the Sellers. All of these parameters are set without knowing any details of the other competing bids, thus is it called the “blind offer” method and gives the buyers one shot to structure their best offer to try and be the winning bid.

The concern lies in the lack of transparency, without knowing what the competition is offering some buyers become overly aggressive and make offers that they would not normally ever consider putting forward. They offer well over the list price or leave out a condition that possibly could leave them exposed to future issues.

Overall the blind offer system is most beneficial to the sellers, it ensures they get as much as possible for their property however it can be detrimental to the buyers and the overall housing market. Aside from a buyer overextending themselves beyond their means this method can all drive up the values of real estate unnecessarily reaching a point where things become unsustainable eventually leading to a correction.

An alternative method would be to have an auction, a more open and transparent method where buyers who were bidding on a property would be informed of all the other offer’s terms and conditions. This would allow the buyers to still offer more than their competitors, they would be able to continue to increase their offers as other buyers increased their bids to a point where only one offer would be left standing. In the end, the buyer winning the bid would know they paid the correct amount to successfully win the property rather than blindly throwing a number into the ring. The value of the offer would likely be over the asking price but the sale value would be set using a more informed method helping keep the overall market in a healthy state.

The seller would still be getting fair market value and the highest possible offer but some argue the seller would still end up selling the property for more using the blind offer method instead, thus the debate continues.

The Viani Real Estate Group has once again achieved another milestone, for the month of May 2021 we were recognized as not only the second most productive team at RE/MAX Real Estate Central but the #83 most productive team by RE/MAX of Western Canada. RE/MAX of Western Canada includes all RE/MAX realtors licenced from British Columbia across to and including Manitoba, it is truly an honour to say we are recognized not only amongst our peers in the City of Calgary but a large portion of Canada.

The recognition is both appreciated and important, each member of the Viani Real Estate Group works hard day in and day out to ensure our clients receive exemplary service, we pride ourselves on being competent, experienced full-time professional REALTORS®.

The vast majority of our business comes from our repeat and referred clients, we hope us being recognized as a top producing team speaks volumes for the service and guidance we give to each and every one of our clients.

We love what we do and we want to help you with your next real estate transaction, be it residential, commercial, business brokerage or investment.

We look forward to working with you in the future.

The Viani Real Estate Group is honoured to have recently received the RE/MAX Chairmans Award as a top producing team in 2020 at the recent International conference (held virtually).

We would like to take a moment to thank each and every one of our clients, family members and friends, it is because of your continued support that we can achieve our success.

We look forward to hearing from you and assisting you with any and all of your real estate needs.

Thank you!

City of Calgary, April 1, 2021 –

The initial impact of COVID-19 on the housing market began last March.

One year later, it is not a surprise that March sales in 2021 were higher than in 2020. However, at 2,903 sales, this was the highest March total since 2007. 

“Low lending rates and improved savings have supported sales activity,” said CREB® chief economist Ann-Marie Lurie.

“However, sales have been somewhat restricted by the lack of listings. This month there was a jump in new listings, contributing to the strong monthly sales.” 

Inventory levels pushed above 5,400 units, but citywide months of supply fell below two months. This reflects the lowest months of supply for March since 2014 and these tight conditions have contributed to price gains.

In March, the benchmark price trended up over last month to $441,900, over six per cent higher than last year’s levels. The price gains have moved the market closer to recovery, but prices remain over five per cent lower than 2014 highs.

“Improving prices will likely support further gains in new listings, as sellers try to capitalize on the recent shift toward rising prices,” said Lurie.

“Eventually, this will help support more balanced conditions, but it could take time before we see this shift in the market.”

HOUSING MARKET FACTS

Detached

Like last month, detached sales activity improved across most price ranges and all districts in the city. While new listings did improve, inventory levels remained relatively low at 2,409 units, causing the months of supply to drop to just over one month.

The citywide detached benchmark price rose by nearly eight per cent compared to last year. Year-over-year gains ranged from a low of nearly three per cent in the City Centre to a high of nearly 11 per cent in the North and South East districts.

Prices in most districts remain below previous monthly highs, but recent gains in both the North and South East have supported full price recovery in those areas.

Product priced under $400,000 recorded the lowest sales growth, as limited inventory weighed on that segment of the market. However, rising sales and easing inventory resulted in tighter market conditions across all price ranges. This is likely supporting price gains, not only in the mid and lower price ranges, but also the upper price ranges in the market.

Semi-Detached

Steady gains in sales caused first quarter sales totals to reach nearly record highs for this property type. Improving new listings were not enough to offset the sales and the months of supply fell below two months for the first time since 2014. Low supply levels relative to sales contributed to further gains in prices, which, as of March, were nearly six per cent higher than last year’s levels.

Benchmark prices trended up across all districts and prices remained higher than last year’s levels across most districts. The largest year-over-year price gains occurred in the North district, with an increase of nearly 10 per cent.

Row

Echoing the results of other property types, sales activity for row properties has risen far above long-term averages. However, it is the first time since 2014 that the months of supply has fallen below three months. The row-property market has taken longer to see tighter conditions, but the recent tightening is starting to have a more significant impact on price.

As of March, row benchmark prices rose to $288,800, nearly three per cent higher than last year. However, activity was not consistent across all districts.  The largest price gains occurred in the City Centre and West districts.  Despite recent gains, prices remain well below previous highs.

Apartment Condominium

For the third month in a row, sales activity was stronger than the previous year. New listings also rose and is causing some inventory gains. Despite the inventory gains, sales have been far better than levels seen over the past six years and the months of supply did trend down to the lowest March levels since 2014.

Tightening conditions did support some year-over-year price gains in this segment. After experiencing falling prices for the better part of five years, this change is a welcome shift for most sellers. However, prices remain nearly 17 per cent below the 2014 highs.

REGIONAL MARKET FACTS

Airdrie

Strong sales activity continued into March. New listings also rose, but it was not enough to cause any significant shift in inventory and the months of supply fell to just over one month.

The low levels of supply relative to demand have been persistent in this market since the second half of 2020, causing steady gains in prices. As of March, the benchmark price was $355,800, an increase from last month and nearly eight per cent higher than last year’s levels.

Cochrane

Cochrane reached a record high level of sales and new listings in March. The increase in new listings likely contributed to some of the sales gains and was high enough to support some monthly gains in inventory. However, inventories remained low relative to what we traditionally see at this time of year and the months of supply dropped to levels not seen since 2006.

Persistent sellers’ market conditions supported further price gains in March, as the benchmark price rose to $423,800, nearly five per cent higher than last year’s levels.

Okotoks

New listings in this market continue to trend up from the lower levels recorded at the end of last year. However, the gains this month were accompanied by strong sales growth, pushing the sales-to-new-listings ratio back over 90 per cent.

Inventories remain exceptionally low for March and the months of supply eased to just over one month. These exceptionally tight conditions have supported further price gains this month. The benchmark price trended up over last month and currently sits over seven per cent higher than March 2020 figures.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

In hot markets, it is common for many buyers to take interest in the same property. The result is multiple or competing offers written and presented to the seller.

In a competition, a buyer should make their best offer, their first offer. It’s unlikely that they will get a second chance. 

Buyers should ask their REALTORⓇ to confirm how many offers will be presented when the offers will be presented and if the listing REALTORⓇ is also representing a buyer with an offer. 

A seller has no obligation to counter any offers. Those offers which are not accepted by the sellers should not accept more than a response indicating their offer was not the winning bid. 

A full-price offer does not always guarantee a buyer will win a competition. The true value of a home is what someone is willing to pay. Many buyers will pay above the asking price to get the house that they want.

Sometimes offers are so similar that a seller may reject them all and asks buyers to resubmit their best and final for consideration, as a buyer you are under no obligation to do so and may leave your offer stand as written, adjust your offer for resubmission or rescind your offer altogether.

Hot markets can be a frustrating, confusing and stressful time for Buyers. Buyers must have their financing in place prior to writing an offer when competing or otherwise. 

In certain situations, a listing REALTORⓇ will delay offers on a property for a few days in order to allow multiple potential buyers an opportunity to view. This can sometimes work in the seller’s favour as multiple offers are usually a benefit to the seller however if an interested buyer is told they must wait they may find another property in the interim or decide they are not willing to be a party to a multiple offer situation and the seller may never get an offer from that buyer party.

Multiple offers can not be prevented and are a component of a hot market. Buyers may hate the idea of a bidding war, worrying they will either get caught up in the competition and pay too much and opt not to take part in multiple offers altogether. 

Regardless of your opinion, it is important you work with a professional REALTORⓇ with experience in how to handle the very stressful situation of multiple offers.

*** Tips for Buyers in multiple offers ***

1. Dollars and Deposits

Many people focus on the offer amount as the major decision-making factor. Although it's true that money talks there are other important aspects of the offer to consider, including the deposit amount.

Some sellers will see a large deposit as a stronger offer. It can give sellers comfort that the Buyer is serious and have monies to put down, reflecting that their financing may be stronger than other offers being considered.

2. Conditions

The type, number and length of conditions placed on an offer can have a large impact on how an offer is received. Many times in multiple offers Buyers remove all conditions, this of course makes your offer very appealing but it is very important to discuss the ramifications of offering unconditional with your REALTORⓇ. If you choose to place conditions on your offer consider that have a shorter condition period may be more attractive to a Seller, many Sellers see their properties as being “tied up” once a conditional offer is accepted, the shorter that time frame is the more comfortable a seller is likely to be.

3. Dates & Timing

The closing date can play a big part as well. If a property is vacant, most of the time a sooner possession date would be more attractive to a Seller. Consider a scenario when a very long closing or very quick closing would be of more appeal to a seller than the dollars and cents, should those amounts in the offer all be relatively close. Some sellers may want cash and a quick closing, versus a bit higher dollar amount. Others may have reason to prefer a longer closing to put things in place with their next move or build. 

4. Inclusions

When you are in a multiple-offer situation as a buyer, you might want to consider leaving out that extra item you were hoping the seller would throw into the deal. Chances are that your idea of the value of that item is much different than the seller’s perception and can be the reason your offer is not chosen.

5. Professionalism 

Ensure your offer is written properly and professionally. A REALTORⓇ representing a buyer in multiple offers who is professional, who drafts an offer that is easy to read and done correctly and who communicates well can be the tipping point for a buyer to win in multiple offers.

The Viani Real Estate Group has years of experience and has dealt with multiple offer situations many times, contact us today to help you navigate this process.

This reflects the best February since 2014.

“Despite continued COVID-19 restrictions, housing activity continues to improve. Much of the strong sales activity is expected to be driven by exceptionally low mortgage rates,” said CREB® chief economist Ann-Marie Lurie.

“Confidence is also likely improving as vaccine rollouts are underway. Additionally, some of the worst fears concerning the energy sector are easing with recent gains in energy prices.”

New listings also improved in February, but the gap between new listings and sales narrowed. This is causing the sales-to-new-listings ratio to rise to 65 per cent, keeping the months of supply well below three months.

Conditions are far tighter in the detached sector of the market, especially for product priced below $600,000, where strong sellers’ market conditions are present with less than two months of supply.

The market has faced relatively low inventory levels compared to sales for the past several months and prices continue to trend up. In February, the residential benchmark price rose over the previous month and currently sits four per cent above last years’ levels.

Detached product has the lowest months of supply and is also exhibiting the most significant gains in prices. On the opposite end of the spectrum, the apartment condominium segment still has a relatively high level of inventory compared to sales, which is impacting price recovery for this property type.

HOUSING MARKET FACTS

Detached

Detached sales improved across every price range this month, but the lack of choice in the lower price ranges likely placed limits on the gains in sales.

New listings did rise, but it was not enough to prevent further tightening in the market, as the sales-to-new-listings ratio rose to 71 per cent and the months of supply fell to under two months. This is the lowest months of supply recorded in February since 2007.

Tighter market conditions occurred across all price ranges, but properties priced below $600,000 saw the months of supply fall to just above one month. These conditions are supporting significant price gains in the detached sector, which recorded a February benchmark price of $502,500. This is nearly two per cent higher than last month and five per cent higher than last year. It is also the first time since 2018 detached prices have risen above $500,000, and currently sits under five per cent below previous highs recorded in 2014.

Prices increased compared to last month and last year in every district of the city. However, the magnitude of those increases varied, with the largest year-over-year gains occurring in the South East district at nine per cent, and the lowest gains occurring in the City Centre at under two per cent.

Semi-Detached

Semi-detached sales in February recorded significant gains, pushing sales activity to the highest February levels seen in nearly 13 years. However, like the detached sector, the improvements in new listings were not enough to offset sales, ensuring this sector continues to favour the seller.

With lower levels of supply relative to sales, benchmark prices improved over both last year and last month. However, this was not consistent across all districts. The West district continues to see prices that remain over two per cent lower than last year’s levels. The strongest year-over-year price gains were reported in the South East and North districts.

Row

Despite a significant increase in new listings, improving sales offset the gains and the months of supply fell to three months.

Conditions for row properties are not as tight as what we have seen in both the detached and semi-detached sectors. However, they do reflect an improvement relative to the oversupplied conditions recorded last year. However, when considering activity by price range, pockets of oversupply persist in this market.

Citywide reductions in inventory relative to sales supported some price improvements in this segment. The benchmark price trended up from last month and currently sits just over one per cent higher than last year’s levels. Year-over-year gains did not occur across all districts, as prices remain lower than last year’s levels in the North, North West, South and South East districts.

Apartment Condominium

Driven by product priced mostly under $300,000, apartment condominium sales improved to best February levels recorded over the past six years.

However, the gain in sales was not enough to cause any significant changes in inventory levels. February inventory remained elevated compared to levels we typically see at this time of year.

While the months of supply has trended down in this sector, it remains above five months. This is preventing the same type of price recovery seen in other sectors. On a year-to-date basis, the benchmark price remains similar to levels recorded last year.

REGIONAL MARKET FACTS

Airdrie

February sales reached new record highs for the month.

The largest gain in sales occurred in the $400,000 - $500,000 price range. New listings also increased, but the sales-to-new listings ratio remained elevated at 71 per cent and the months of supply dropped to under two months in February. This is the tightest level seen since 2014.

Persistent sellers’ market conditions have resulted in further price gains in the market. The benchmark price has trended up for the past eight months and, as of February, it is over seven per cent higher than last year’s levels. Most of the price growth has been driven by the detached sector.

Cochrane

Cochrane sales more than doubled compared to last February. This represents the strongest February ever recorded for the town.

New listings also rose for the month, but it was not enough to cause any substantial change in inventory levels and the months of supply fell to below two months. This is the lowest months of supply for February seen since the record low in 2006.

Tight conditions supported price growth in February, as the benchmark price rose to $413,700, a four per cent increase from last year’s levels.

Okotoks

New listings have been trending up from the lows seen at the end of 2020, helping to support a significant improvement in sales in February. February sales reach levels not seen for the month since the record high in 2007. 

Inventory levels remain exceptionally low relative to sales and the months of supply dropped below two months. Like other towns around Calgary, the sellers’ market conditions caused prices to trend up. In February, the benchmark price reached $442,600, nearly five per cent higher than levels recorded last year.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

Refinancing your mortgage is something most homeowners consider at least once throughout the lifespan of their home loan. It allows you to pay off your previous loan by applying for a new one that has better financial advantages. While there are many good reasons to refinance, here are five common ones.

- Securing a lower interest rate. The number one reason homeowners decide to refinance is to secure a lower interest rate on their mortgage. Historically, the rule of thumb is that refinancing is a good idea if you can reduce your interest rate by at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance. Not only does this save you money in the long run and decrease your monthly payment, but you can start building equity in your home sooner.

- Using an improved credit score. Even if interest rates have not dropped in the market, if you’ve improved your credit score over the last few years, you may be able to reduce your mortgage rate. - Shortening the loan’s term. If interest rates are decreasing, there is a chance you may be able to get a shorter loan term with little to no change in your monthly payment, allowing you to pay off your loan sooner.

- Switching from an adjustable-rate to a fixed rate. If you chose an adjustable-rate mortgage with great introductory rates when you initially financed your home, that rate may increase significantly over the years. By switching to a fixed rate while interest rates are low, you can protect yourself from future increases.

- Cashing out home equity. If there is a big purchase or payment on the horizon, such as funding a wedding or going back to school, your best option may be to use the equity you’ve built in your home to borrow money at a lower cost.

Refinancing can be a great financial move if it reduces your mortgage payment, shortens the term of your loan, or helps you build equity more quickly. When used carefully, it can also be a valuable tool for bringing debt under control. Before you refinance, take a careful look at your financial situation and ask yourself: How long do I plan to continue living in the house? How much money will I save by refinancing?

Keep in mind that refinancing will come with a cost, ensure you are fully aware of the amount of those fees. It takes years to recoup that cost with the savings generated by a lower interest rate or a shorter term. So, if you are not planning to stay in the home for more than a few years, the cost of refinancing may negate any of the potential savings.

It also pays to remember that a savvy homeowner is always looking for ways to reduce debt, build equity, save money, and eliminate their mortgage payment. Taking cash out of your equity when you refinance does not help to achieve any of those goals.

The Viani Real Estate Group is excited to announce that for 2020 our group has been recognized as the 5th top producing team at RE/MAX Real Estate (Central), the largest and #1 RE/MAX office in the world.

Formed in June 2020, in just six months our group has been recognized among some of the highest producing REALTORS® and teams in the city of Calgary and surrounding areas, we are pleased to say that the majority of our clients are repeat and referral.

We want to thank our families and friends for your continued support along with all of our current and past clients for putting the trust in us to handle what is likely one of your largest financial transactions, we appreciate each and every one of you.

“The highest compliment we can receive is the referral of your friends and family”

We have found great success in coming together as a group and are able to assist you in a wide variety of real estate areas, residential, commercial, investment and business brokerage.

We look forward to helping you or your referrals, we work full time as REALTORS® and truly enjoy what we do.

THANK YOU!

Viani Real Estate Group

|        Joe Viani        |       Stan Kushner        |        Alison Lang        |        Rob Campbell        |

Making Your Offer

“We just took possession today and found a serious defect that the Sellers didn’t disclose. What can we do?” An unfortunate fact of life is sometimes we run into Sellers that feel they can hide defects before listing the property for sale. How they somehow feel the defects won’t eventually be discovered by the Buyers is beyond comprehension.

The best way to deal with existing and/or anticipated potential problems is during the drafting of the Purchase Contract.

First, ensure that you have a Buyer Brokerage Agreement signed by your REALTOR® and you. That Agreement makes the Buyer a “Client” of that REALTOR®. Along with that relationship are legal obligations placed upon the REALTOR® that are fiduciary in nature. What that means is your REALTOR® must act in your best interests and place your interests ahead of his/hers. That also makes your REALTOR® your consultant and more than just a salesperson in that a higher duty of care is placed upon your REALTOR® than there would be if you were simply a "customer".

Secondly, when drafting your Offer to Purchase, your REALTOR® will ensure there is a Property Inspection Condition inserted into the contract to protect you. A house inspection performed by a licensed, qualified and experienced property inspector can and does point out most issues relative to the mechanical, structural and services of the building. By “most issues” I mean there may be hidden defects such as inadequate insulation in the walls that can only be discovered if the drywall were removed. The inspector will also ensure appliances, electronic garage door openers, and so on are operating properly and will note any issues there as well.

Thirdly, the Seller is required by law to disclose any “Material Latent Defects” which are hidden defects that cannot be discovered by a typical inspection of the property. Material latent defects could be such things as large cracks in a foundation wall that leaks water into the home only during heavy rains. These may be covered by a finished wall and impossible to detect. Another could be that the sewer backs up every few years because of tree roots and so on. There is some disagreement among lawyers and among REALTORS® whether remediated grow ops are a material latent defect or not. Until the provincial and/or federal governments introduce legislation with minimum remediation standards, I strongly feel remediated grow ops are a material latent defect because of the potential dangers they impose. Conversely, if a defect can or should be found by a reasonable inspection of a property then these types of defects do not need to be disclosed by Sellers.

If the Seller deliberately withholds information with respect to material latent defects, the Buyers recourse would be the courts but be sure to set aside plenty of time and money for legal fees, meetings with your lawyer, discoveries and court appearances. 

Contact us today to ensure in your next purchase you are protected, new or resale there are provisions that essential to ensuring your next transaction is hassle-free.

Viani Real Estate Group