The features that home buyers look for reflect the changing realities of the world we live in.  As the average age of the population rises, so does the demand for one storey homes.  With environmental issues reaching our collective consciousness, so does the demand for “green” features increase.

I spent some time this morning reading various reports and studies to find out the trends home builders and renovators might want to pay particular attention to.  What I found was not surprising at all.  Buyers are placing increased importance on:

•  Open concept floor plans
•  One level living
•  Main floor master bedrooms
•  Universal design
•  Energy Efficiency

Recently, the Ontario Association of Home Builders held their meetings in Collingwood and some of the newer trends they identified were:
 
 - McMansions are being traded for better quality homes
 - People want to age-in-place and are looking for homes that are easily adapted for accessibility
 - People are expanding their living into the outdoors with a greater demand for 3-season living spaces such as covered patios and  porches, sunrooms

They also specifically noted that buyers are demanding greater energy efficiency in their homes and are willing to pay for it to a certain point.  Some of the features they are looking at include:

*  Homes that are pre-wired to be solar ready
*  New products and building techniques that will address the fact that homes built under the new building code in 2012 will be more air tight
*  Kill switches to easily turn off appliances using phantom energy
*  Home automation systems for multi-media
*  A movement away from stucco to things like stone and hardiboard
*  Kitchens with walk-in pantries, solid surface countertops, specific task lighting and energy efficient appliances.

If you are buying a new home, it’s a good idea to incorporate as many of these elements as possible because they are likely to become the norm when you one day face resale of your property.  For people renovating their homes, it’s also a good idea to consider these trends both for resale and for efficient and healthy home operation.  Remember, the cost of operating your home (heat, hydro, water) are the second  price tag of ownership.

A few years ago, I sold a brand new, high-end, custom home in the Blue Mountains that was listed for sale by another Broker.   The builder, who had done an excellent job building the house, had built several other million dollar plus homes across the province over the last decade and had excellent references.

Before presenting an offer from my clients, I checked for the builders registration on the TARION warranty website so I could see if there was any history of past problems.  Low and behold, he was nowhere to be found.  When I enquired about this, I was told by his agent that he was “not registered but would give a personal warranty on his workmanship.”  Um, no.  Not good enough.

The builder said that he built the house for himself and had occupied it by using it a few week-ends here and there.  Again, not good enough.  We presented the offer requiring him to enroll both himself and the house under the TARION program and suggested he call them to find out what we already knew – he had to register and register he did.  In the end, my clients bought the house with the full warranty in place.

Generally speaking, every new home built for sale in Ontario must be registered with TARION.  While there are some exceptions, this rule applies to most of the custom and subdivision homes we sell in this area yet, I have come across unregistered homes and builders  time and time again.  At a recent seminar here in Collingwood, the TARION folks left the room and by the end of the day had nabbed a few illegal builders around town.  They’ve even sent a few to jail over the years.

Let’s say you are buying a home that John Smith had built for him as a spec home to sell upon completion.  While John is not a builder, he owns the land and is a “flipper.”  He hires ABC Construction to build a house from the foundation to the end and upon completion, he puts up a For Sale Sign.  In this case, BOTH John Smith AND ABC Construction must be registered with TARION and the house must be enrolled under the program.

Here’s another example.  You own a lot and happen to have super construction skills so you build your own home.  Before you ever occupy it, someone comes along and offers you a price you can’t refuse so you sell it.  You are now the builder of a home for sale and therefore, must register with TARION.

While TARION has an enforcement division employing former police officers, I imagine they rely on complaints or obvious advertising to find rogue builders but that is likely to change next year.  Under the new Ontario Building Code Act, all municipalities will be sending information on every single new building permit to TARION.  In addition, final inspections and issued occupancy permits will be required before the completion of a sale can take place. 

Much to my shock, the TARION fellows told us during the seminar that 85% of custom homes do not complete as scheduled.  85%!!

Before buying a brand new home, check the TARION website to see if the builder is registered and if there have been any problems noted.  If you see something called “Chargeable Conciliations,” you might want to run the other way as it represents a warranty dispute in the past.

The Shipyards project in Collingwood was the winner of the Canadian Urban Institute’s 2009 CUI Brownie Awards (sponsored by the Canada Mortgage and Housing Corp.) announced this week at a gala in Vancouver.
 
Named as the of “Best Large-Scale Project”  in the country, this waterfront development and was praised for its environmentally friendly initiatives  including the enhancement of an extensive wetland habitat along the shores of a harbour built with 100% recycled concrete and rock – and the creation of pedestrian and bike-only trails.

Developers FRAM Building Group and Slokker Real Estate deserve this recognition.  They took a former brownfield site and have turned it into an exciting, mixed-use residential/commercial community on our waterfront.  They have spent four years cleaning up the land that was contaminated by over 100 years of shipbuilding.  When completed, the project will feature approximately 600 apartment and townhome condominiums as well as commercial space extending Collingwood’s downtown to the waterfront.

One of the things I have liked most about these developers is their respect for the history of the site.  Shipbuilding was the heart and soul of Collingwood for over a century.  FRAM and Slokker took pains to involve the public in its planning and design process including focus groups and public meetings.  They honoured the site by the very choice of name – The Shipyards. The site will include significant amounts of green space through trails, wetlands with a fish habitat, an outdoor amphitheatre, parkland and public access to the waterfront.  It will also feature other amenities such as a new public square, boat-docking facilities and the incorporation of public art and historical artifacts in the public space.

Both construction of residential units and sales are well underway with first occupancies already in place at the site.  The sales office offers state of the art, interactive site plan information which you can play with online if you wish to get an idea of the plans available.

It’s been a long, long journey for The Shipyards to begin a second life in Collingwood.  I do believe it will be a jewel on the Great Lakes and a model for development that we will take pride in for many years to come.  My congratulations to the FRAM/Slokker team for winning this award – it is well deserved.

It looks like a large number of new home builders are missing out on some real opportunities to attract new home buyers.  According to a survey released earlier this month, less than half of new home buyers were offered energy-efficient features for their new homes yet, 90% of buyers state they value energy efficiency when making a new home purchase.

Energy efficiency is quickly becoming a major factor in home buying decision making, according to the survey.  1,638 homebuyers in the Toronto and Ottawa areas were surveyed by energy-efficiency consultancy EnerQuality Corp..  The study found that homebuyers were willing to pay an average of $13,183 in additional costs for a “green” home. While last year only 20% of homebuyers were willing to spend $10,000 or more extra, that figure has quickly doubled to 40% of people who were willing to spend so much extra if it meant lowering energy costs over the long term.  More than 70% would be willing to spend $5,000 or more.

I heard a term once that referred to a house having two purchase prices; one to buy the home and the second price tag being the cost to carry and operate the home.  As this second price tag takes on increasing prominence for homeowners with declining disposal incomes, a net decrease in the cost of owning a home to the tune of hundreds of dollars per year can have a significant impact on a buying decision.

Under the new Ontario Green Energy and Green Economy Act, buyers will soon have the right to ask for a mandatory home energy audit from the seller.  As consumers become ever more aware in rapidly increasing numbers about the benefits of an energy efficient home, I can see the day when all homes have ratings and indicators as part of the standard listing.  People buying energy efficient homes today will already be one step ahead of older homes with no energy-saving retrofits.

The EnerQuality survey found that 92 per cent of homebuyers who participated would seek out energy efficiency for their next home purchase and, most are willing to pay for it yet, many builders have not offered these options or features.  That is a real disconnect and it would be wise for home builders to become educated about the many opportunities and options available today.  I would think this carries over as well to home renovators and contractors.  Educating themselves right now would be good business practice in meeting consumer demand that is sure to continue growing.

A beautiful sunny day, a catered lunch and brand-spanking new model homes to view – it doesn’t get much better than that for a Thursday afternoon.

The new Pretty River Estates  is located at the north east corner of the intersection of County Road 124 and Poplar Sideroad. 

The Lots:  71  – 50 foot lots; 53 – 45 foot lots and 44 semi-detached lots wind along the semi-rural site, bordered by 2 busy roads, a pond, a greenspace and an enclosed doggy park.  Several lots are available to accommodate walk-out basements and some premium lots back onto a trail and green space.  The aerial photo to the left shows the site quite clearly.

The houses: come in a wide variety of styles including verandas, garages and unique designs in semi-detached, bungalow, backsplit, two-storey and bungaloft designs, ranging from 1302 to 3011 square feet.  Two of the three model homes are smartly upgraded while the third has only a handful of upgrades which gives the viewer a good idea of what really does come included in the list price versus the upgraded (read=higher priced) ones.

The prices:  semis start in the mid to high $200,000’s; houses start at $307,990 to $468,990.  Phased development will occur, with first possession dates expected in the spring of 2010.  (The upgraded model homes are significantly higher than these prices climbing to over $700K with all the bells and whistles.)

As this new home development is fully co-operating with the local real estate community, Chris and I would be happy to show you these, or any other, new homes you might be interested in seeing.  We’ve each had experience with several new home sales recently and would love to help you find your next home.  This development will consider conditional offers (many will) and are currently offering a few incentives to new buyers.

The price of new homes in Collingwood are sure to rise over the next three years.  It’s all about growth.

Does growth pay for itself?  If the answer were yes, then towns like Collingwood, Wasaga Beach or Blue Mountain would be rolling in cash rather than facing record debt levels.  No, growth does not pay for itself and I doubt it ever will.

One of the tools a muncipiality has is to apply development charges (DC’s) against lots created.  Under the Provincial Development Charges Act,  it defines DC’s as being “charges against land to pay for increased capital costs required because of increased needs for services arising from development of the area.”  In plainer English, that means developers pay for things like roads, water-mains and sewers to service newly developed land.

Currently, Collingwood is preparing a new DC by-law that would potentially see fees more than doubling in the next three years.  They could climb from about $10,400 per lot to over $21,000 if approved.  Even at that, Collingwood would not be covering the true cost of infrastructure related to that growth.  That’s how expensive it is.  At the new rates, the town would still be in the average rates of DC’s charged around the province.

Surprisingly, some members of the local development community have agreed it is an increase that is necessary and overdue.  According to an article in the Enterprise-Bulletin newspaper, local developer Peter Osmond, representing the Georgian Triangle Development Institute, told council that an increase is necessary.
“The current rate is so out-of-date and so low that the opportunity to expand our infrastructure is virtually nil,” he said. “It is reasonable to build a solid infrastructure, and we support the phasing in; that’s prudent given the difficult economic climate.”

In my opinion, growth will never pay for itself however, development fees are a necessary charge in that direction and the failure to levy them is fiscally irresponsible.  For every dollar that a town does NOT levy against a developer  for infrastructure growth, a dollar is being charged to the existing tax payers of the community.  I’m tired of high taxes and the costs that have come from such fast and furious growth in Ontario.

I disagree with Chamber of Commerce President Rick Lloyd who feels development charges should not be implemented at this time due to economic volatility.   If a plan to increase the DC’s were deferred for a year of two, it would only mean that the financial burden would have to be borne by you and me instead of the developers.  That just seems wrong.  Wait a minute, it IS wrong.

What I do take issue with though is the idea of developers having to pay the DC’s at the time a site plan agreement is signed rather than when a building permit is issued.  Now that would halt development in a hurry.  It’s simply not reasonable.

At the end of the day, the people who buy new homes will see the cost passed on to them.  New house prices will have to rise.  It’s the price we pay for growth.  Well part of it anyway.

July 22, 2009 Update:  Thankfully, the draft by-law going before council on Monday night has been revised to remove the provision of having developers pay the DC’s when a subdivision agreement is signed.  After reviewing policies in surrounding area, staff have nixed this from the draft.  Whew.

Before we go any further, I have a project for you.  Log onto Google or your favourite search engine and find out who regulates new homes sales people in Ontario.  Specifically, new homes sales people who are not licensed under the Real Estate and Business Brokers Act.

Okay, I know you didn’t bother.  I’ve just spent over an hour doing just that and, the answer is: nobody.  Of course there is consumer protection legislation that prohibits anyone from providing misleading or false information but, there is no regulation of unlicensed sales people working for a new home builder or developer as an employee.

Although there was a heavy lobby proposing licensing and regulation of these folks, the latest Real Estate and Business Brokers Act of 2002, specifically exempted “ full-time salaried employees of  new home builder or developer who act for or on behalf of his or her employer in respect of property situated in Ontario” from the legislative requirements.  Incidentally, there are others exempt such as:

• certain assignees, custodians, liquidators, trustees or other persons acting under specific legislation or under the order of any court;
• a lawyer who is providing legal services if the trade in real estate is itself a legal service or is incidental to and directly arising out of the legal services;
• a person’s personal interest in real estate, unless the trade results from an offer of the person to act or a request that the person act in connection with the trade for or on behalf of one of the other parties to the trade; and
• a person who trades in real estate solely for the purpose of arranging leases to which the Tenant Protection Act, 1997 applies, such as residential leases.

Now don’t get me wrong.  In our area, I have generally found that the in-house developers sales people are very nice people who are hardworking, capable and honest.  What bothers me though is that the consumer doesn’t always realize or think about who that person is representing.  Of course, it’s the developer.  The other thing that bugs me is that the legislation specifically says the exemption applies only to salaried employees yet I know for a fact that many in our area are paid on commission. 

Under current legislation, or should I say the absence of it, there are no requirements for new homes or condos to be sold by licensed salespeople, and, there are no rules governing their conduct comparable to those in place governing licensed real estate salespeople.  Licensed sales people are subject to strict regulatory requirements and specific Codes of Ethics that govern things like duty and loyalty to clients, disclosure requirements, insurance, ongoing education and so on.  The penalties for non-compliance are severe.

Builder’s in-house salespeople who are not licensed sell millions of dollars worth of new homes in Ontario each year with no mandatory education, training, insurance, regulations or supervision of a Broker.  If there is no legislation, is there recourse?

People who are licensed in Ontario are referred to as Registrants and regulation is administered and enforced by the Real Estate Council of Ontario (RECO).  Under the Act, registrants who work at new home sales sites MUST COMPLY with all of the requirements of the REBBA 2002 just as they would in the course of any other work they do in real estate.  In this case, registrants working in new homes sales must:

• Disclose that the brokerage/salesperson are registered under REBBA 2002
• Explain the types of service/representation available
• Document the services that will be provided in a multiple or single representation arrangement
• Document the restricted services to buyers choosing to be treated as customers
• Obtain written acknowledgement that the above has been explained.

Next time you visit a new home sales office, find out if the sales person is licensed or not.  Find out your rights and obligations.  Find out if you can bring in a REALTOR® to represent you.  If not, be sure to do your own careful research about area property values, reputation, the builder’s TARION warranty track record, neighbourhood issues, proposed neighbouring developments and hidden costs or fees. And please, please, please… don’t sign anything until you have had a lawyer review the agreement first.

I love reading good news.  There’s not enough of it lately and it would appear that some people are happier wallowing in the muddy pits more than they are being  positive and optimistic.  I know, I know.  Half of you think I’m like the proverbial ostrich.  The other half of you are sitting there agreeing.  Whatever you think, here’s a great little local news fact to savour.

Collingwood set a new record in February for the value of building permits issued.  There were a whopping 21.57 million dollar worth of permits issued which certainly generated a nice chunk of change for the town in fees and development charges too.

Over $17 million of the permits were related to The Shipyards project  still leaving over 4.25 million from other projects.  In contrast , the town issued only 2.5 million in February 2008.

It’s great to see construction started at The Shipyards and from reports I’ve read, the first phase is over 70% sold.  I have always believed in this project and have my fingers crossed that they do well.  When it’s finished, it will bring life and access to the waterfront and the downtown.   By the way, Frank Gianonne  who is president of the Fram Building Group (one of the developers behind the project) is now president of the Ontario Home Builders Association.  Congratulations Frank and I’m sure you will bring inspired leadership to the organization.

Do you have aluminum wiring in your home?

This is an issue that comes up from time to time in home inspections and, it can be a concern for home buyers.  Some home insurers will not insure a house with this type of wiring claiming it is a fire hazard.

It is estimated that there are over 450,000 homes in Canada that are wired with aluminum wiring.  It was commonly used from 1965 to 1977.  But is it really a problem?

According to most home inspectors I’ve talked to, the issue is not the wiring itself but rather, it is the connections that cause the problem.  Wiring made of aluminum heats and cools causing it to expand and contract which in turn can cause connections to come loose.  A live wire dangling in a wall is not a good idea!

It’s not always possible to determine if you have aluminum wiring without a professional examining the wiring at the panel but, you may be able to tell if there are cables exposed either between the open floor joists, in the basement, up in the attic, or at the service panel. If the wiring is aluminum and was
manufactured before May 1977, the outer covering of the cable will be marked, at least every 12
inches, with the word ALUMINUM, or an abbreviation, ALUM, or AL. If the cable was
manufactured after May 1977, the marking may be either ALUMINUM ACM, ALUM ACM, or ALACM.

Other indicators of a potential problem might include:

• unusually warm or warped outlets and switch cover plates
• smoke or sparks coming from receptacles and switches
• strange odors in the area of receptacles and switches
• untraceable problems with plug-in lights and appliances
• periodic flickering of lights
• discolouring of the wall receptacle
• arcing or sparking

If aluminum wiring is present, the good news is that it does not need to be torn out or replaced as solutions are available at a reasonable cost.  Have a qualified electrician with experience in this area go through the house to determine the best remedies.  The City of Halifax has one of the better websites I’ve read explaining the issue and solutions.  We have certainly seen a number of houses in South Georgian Bay that have aluminum wiring and there are even whole neighbourhoods where the houses were originally built with it.  Yet another good reason all home buyers should have a home inspection!

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!

It takes a lot of guts for a developer to proceed with plans right now.  I imagine many projects will go on hold over the winter as the real estate market lies as dormant this season.  But others seem prepared to go ahead.

One such developer is Brandy Lane who is the force behind the new Mountain Trails project located on the western edge of Collingwood beside Cranberry Village.

At a recent luncheon to launch the project, we met the Brandy Lane team and I will say, I was impressed by the professionalism displayed.  President David Hirsch expressed confidence in the local market and, he has clearly put a top-notch team behind him.

The plan calls for the development of 136 “mountain” townhomes over 3 phases on a 10 acre site near  the new Tanglewood project.  The townhomes will range in size from1,600 to 2,100 square feet and are billed as Canada’s first “Smart Home” neighbourhood complete with smart-wired units for remote monitoring, security, climate control, lighting control, and house-wide data and video sharing.  The units are all designed with three levels plus an attic and include garages.

All of the townhomes include as a standard: Great Rooms with wood-burning fireplace; gourmet kitchens with stainless steel appliances, chef’s island and granite countertops; full-size dining rooms; masters with cathedral ceiling and spa ensuite; slate entries, rain shower heads, central air conditioning, engineered hardwood flooring; finished attic storage.  Prices start at $299,900 and on-site amenities will include a putting green and outdoor pool.

The theory held by Brandy Lane is that their target market will be 40-55 year olds looking for a four season recreational home with lots of bells and whistles at a reasonable price.  I’m not sure I agree as the trend for condominium buyers in the last few years has been toward retirees looking for bungalows suitable to full-time living. I suspect that multi-level units such as these will not be as popular.  Time will tell if Brandy Lane has identified the right buyer and so far, there have been 2 firm sales.

Over-all, I like the location, planned finishings and concept for this project.  While I’m not convinced that multi-level designs will be as popular as they think, for the right buyer, this project does offer good value for your dollar.  The presentation sales centre is due to open mid December and, Brandy Lane has also wisely chosen to deal with local REALTORS® so feel free to give me a call if you would like additional information.

Related Posts:

Collingwood New Home Subdivision Tour Part 5: Mountaincroft  
Collingwood Boom Continues

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!