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When I first entered the real estate business in 1993 it was common to find improvements in homes that were completed without a required permit. At the time, it just wasn’t a big deal to move ahead with your basement development without one. Almost everyone did it.


In recent years, the failure to obtain proper permits has become a much bigger deal, and in fact, a point of contention that has caused many residential sale transactions to collapse at the last minute. In instances where the transaction can be salvaged (the seller agrees to obtain and close the required permits and the buyer agrees to complete the purchase), it often involves lots of “jumping through hoops” for homeowners and real estate agents. Occasionally, these hoops are hard, if not impossible to clear in a short period of time.


Let’s not debate whether the government has a place in regulating what we do with our private property. As a real estate agent, I’m likely at least as geeked up about your property rights as you are. Insisting that the government has no place to tell you what to do and refusing to play by the rules may be an example of “cutting off your nose to spite your face” when it comes to the resale value of your home.


Building codes are intended to ensure safe construction standards are met to protect occupants from structural failures, potential fire hazards and electrical shock. When a Saskatoon home owner, or a contractor acting on behalf of a home owner obtains a permit for home improvements they commit to completing the work in accordance with current building codes. Ultimately, they allow access to a qualified inspector who inspects the work and verifies that the improvements meet the code. Where deficiencies exist, the inspector will require adequate repairs before the permit can be closed.


When a potential home buyer discovers that improvements were completed in your home without the required permits, they lose the assurances that the work was done correctly and safely. Even if the buyer is comfortable moving forward on that basis, a lender may refuse to provide financing, or an insurer may refuse to insure the home. On the other hand, if the proper permits were obtained everyone who has an interest in the purchase can have some reasonable measure of confidence that the improvements are durable, valuable, and most importantly, safe. Simply put, your home improvements add more value to your property when they are completed with a permit.


More and more, home buyers who discover missing permits after entering into a conditional purchase agreement are insisting that the proper permits be obtained and closed by the seller before the purchase is completed. In most cases, this is completely possible but it is almost always far more difficult and costly to do after the fact. It’s not something that you want to be doing when you’re trying to coordinate a move.


In a short series of future posts we’ll talk about which home improvements require a permit and how home buyers might discover that your home improvements were completed without one.


Mean time, here’s some building permit information from the City of Saskatoonand some electrical/gas permit information from SaskPower.


I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.


Norm Fisher
Royal LePage Vidorra

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Saskatoon real estate week in review: August 23-27 2010
For the third consecutive week Saskatoon real estate sales picked up some steam as agents reported seventy-nine detached house and condominium sales to the multiple listing service, up eleven units compared to last week. It was the first week since early May that we actually saw sales grow on a year-over-year basis. Sixty-five Saskatoon homes changed hands during the same week in 2009.


New listings of the same two property types took a significant slide to just ninety homes, a drop of roughly forty percent from 141 last week and just below the ninety-one properties offered for sale on the Saskatoon multiple listing service for the same period last year.


Click the image for a larger version of the graph.


After a few weeks of growth, which is somewhat unusual for the final weeks of the summer season, the inventory of active MLS residential listings leveled off again, losing just one unit over the week to settle at 1386. Of course, at this time last year inventory was in steady decline and had already fallen from its annual peak of 1528 to just 1152 homes, so this year’s number is a little better than twenty percent above last year’s. Today, there are 818 single-family homes and 486 condos showing an active status on our system. Last year at this time there were 676 houses and 385 condominiums for sale in Saskatoon.


Click the image for a larger version of the graph.


Cancelled and withdrawn listings were firm at thirty-nine properties for the third week in a row, and like last week, twenty-one of those made a near immediate repeat performance as a “new listing,” returning for another attempt, most offered at a lower price. Fifty-six Saskatoon home sellers adjusted their pricing strategy this week in hopes of luring a buyer before summer closes.


The average sale price of a Saskatoon home (houses and condos) came in more than thirteen thousand dollars lower than last week at $313,122. The six-week average managed to push slightly higher, gaining about fifteen hundred dollars on the previous week to reach $298,732, an increase of roughly seventeen thousand dollars over the same week in 2009. The four-week median spiked to its highest point this year to pick up a gain of more than ten thousand dollars compared to last week and increasing twice that on a year-over-year basis. Is the growing median a sign that entry-level buyers are putting the brakes on home purchases?


Click the image for a larger version of the graph.


Overbid sales were few, and those that did sell for more than the asking price were mostly new homes that almost certainly included additional improvements not factored into the list price. Six Saskatoon home sellers struck a deal at their price while sixty-nine of seventy-nine firm sales closed below list by an average of $10,152, or 3.2% below the asking price.


Click the image for a larger version of the chart.


I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.


Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.


Norm Fisher
Royal LePage Vidorra

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I’m a bit disturbed by the increasing occurrences of verbal negotiations in the real estate business in Saskatoon.


Verbal proposals are most often brought forward at the counter offer stage with comments like, “We really don’t want to waste your time, so would you speak with your client and find out if X is acceptable to them?”


Recently, an agent tried to sell me on the idea of presenting a complete verbal offer to purchase on one of our listings. She said, “My client has to leave town right away. Would you check with your seller to find out if they would take X?”


To her credit, at least she was clear and honest that she was concerned about wasting her time, and her clients, and not trying to convince me that a verbal offer was a courtesy she was extending to us, so as not to waste our time. Still, my reply was, “No, I won’t, but if you’d be kind enough to put it in writing I’d be happy to present it to them immediately.”


Why? Verbal negotiations are reckless and unprofessional. Where a real estate agent is involved, they’re actually illegal.


Section 58 (1) of Saskatchewan’s Real Estate Act


An offer to purchase obtained by a registrant:


(a) is to be in writing, dated and signed by the buyer in the presence of a witness; and

(b) is to clearly show, prior to execution by the buyer:

(i) the date on which the offer is made;

(ii) the names and addresses of the buyer and seller;

(iii) the street address or legal description of the real estate;

(iv) the price offered by the buyer and the terms and conditions of the offer;

(v) the amount of deposit, if any, made at the time of the offer and whether or not that deposit is to form part of the price;

(vi) a brief description and list of any chattels that are to be included in the price;

(vii) the date of possession by the buyer and whether possession is to be vacant or otherwise;

(viii) the date of adjustments; (ix) the time and date by which the offer is to be accepted;

(x) the name, address and telephone number of the brokerage; and

(xi) any other information prescribed in the bylaws.


We get paid good money to represent our clients and to protect their interests. Creating binding agreements, and avoiding misunderstanding and the squabbles that arise from them is part of that. With the standard forms that are provided for us it literally takes ten minutes to complete an offer to purchase. Web based forms can be tweaked and resubmitted for presentation in seconds. Surely, doing it right can’t be considered “a waste if time.” This is, in part, what agents are paid for. Trying to bridge the gap that exists between a willing buyer and seller is never a waste of time when the proper procedures are followed, even if the time spent only makes us aware of what isn’t presently possible.


If your agent is suggesting a verbal negotiation he or she either lacks respect for, or knowledge of the laws that govern our business. Either way, that should get you thinking.


Samuel Goldwyn said, “A verbal contract isn’t worth the paper it’s written on.”


Samuel Goldwyn was right!


Let’s do this right. Let’s do it in writing.


I’m always happy to answer your Saskatoon real estate questions. All of my contact info is here. Please feel free to call or email.


Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.


Norm Fisher
Royal LePage Vidorra

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Officials for the proposed Station 20 West project appeared before Saskatoon city council last night seeking a one-year extension on the deadline to begin construction on the Pleasant Hill area project. Instead, they walked away with a three-year extension. The land located at 230 Avenue R South was sold by the City of Saskatoonfor one dollar, and the city will have the right to purchase it back if the project fails to come to life.


Station 20 West is envisioned to house a number of food services including a community kitchen and a grocery store, a health services clinic and a community centre. These are all services that are desperately needed in an area that houses people who fall towards the lowest end of the income scale in Saskatoon and real challenges getting out of the area for such services.


More from the Star Phoenix here.

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The City of Saskatoon will select a new tenant for the attractive site now occupied by the Mendel Art Gallery in 2011 when the city finishes a development plan for Kinsmen Park and the area. Located at the river’s edge in the City Park area of Saskatoon, the building will be vacant after a move to the Art Gallery of Saskatchewan in River Landing, which is expected to be complete in 2014.
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The Saskatoon Region Association of Realtors recently reported July 2010 results for the entire residential category of Saskatoon real estate including single-family homes, condominiums, semi-detached properties, duplexes, mobile homes and vacant lots. Unit sales totaled 357 across all of these property types for a decline of roughly eighteen percent compared to the previous July when a record 438 residential property sales were completed. The average selling price came in at $289,715 last month for a gain of roughly six thousand dollars (two percent) when compared to July of 2009. Let’s have a look at how single-family detached homes (houses) and condominiums did in comparison to the entire residential category.


House sales trailed off slightly on a month-over-month basis, but fell quite significantly when compared against last July. The month closed with a total of 228 houses changing hands, down just four from June, but nearly twenty-three percent lower than the 294 sales recorded in July of 2009.


Active listings in the house category dropped at a faster pace than sales. At the close of July, there were 733 detached houses available for a total supply of 3.3 months. That number represents a drop of 0.4 months compared to June, but it’s well above the 2.5 month supply that existed at the same time last year.


The average selling price of a Saskatoon house inched lower losing nearly three thousand dollars compared to June, but remained higher on a year-over-year basis by four thousand dollars. The median selling price of a house slipped even further, falling ten thousand dollars over the month to finish at $301,000, just two thousand dollars higher than it was at this time last year. The three-month average selling price remained towards the peak price for the year at $321,060, down thirty-six hundred from June and up about eleven thousand from July 2009.



Saskatoon condo sales also took a dip, though not nearly as seriously as houses. July closed with 113 firm deals, down seven sales from June and below last year’s numbers by sixteen units.

The number of Saskatoon condos for sale slid slightly for the second month in a row. July closed with inventory totaling 463 units. However, softer sales pushed the total months of supply higher by 0.2 months to close July with a 4.1 supply, roughly thirty percent higher than it was at this time last year when just a 3 month supply of condos existed.



The average price of a Saskatoon condo took a big hit in July after reaching its annual peak in June. It slid more than eleven thousand dollars over the month to settle at $239K, nearly nineteen thousand dollars higher than it was last year during the same month. The median price slid nearly six thousand dollars on the month to $223,000 but managed to maintain year-over-year gains of nearly thirteen thousand dollars. The three-month average selling price inched up on a month-over-month basis to hit its highest number this year, $244,582 and record an annual gain of roughly twenty-nine thousand dollars.


I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.


Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.


Norm Fisher
Royal LePage Vidorra

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There is one word that can be used to describe residential real estate activity for July in every major market in Canada - down. Some markets are down more than others. I could find only one that is down less than we are. Here’s a quick look at what I’ve been able to dig up today.


Market Down
   
Vancouver 45%
Victoria 44%
Calgary 42%
Edmonton 42%
Toronto 34%
Halifax 33%
Regina 28%
Ottawa 27%
Montreal 26%
Saskatoon 18%
Winnipeg 13%


So, you see, things could be a little better, but they could be a whole lot worse.


Maybe it really is different here. :)


I’m always happy to answer your Saskatoon real estate questions. All of my contact info is here. Please feel free to call or email.


Norm Fisher
Royal LePage Vidorra

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The Saskatoon Region Association of REALTORS® (SRAR) released the residential real estate statistics for July of 2010today, accompanied by this release.


Home buying activity was down slightly in the month of July with 357 homes selling, a decline of 18% from July of 2009when 438 homes sold. Year to date, unit sale numbers are down 4% with 2217 homes having sold compared to 2304 by this time of the year in 2009. The majority of the sales activity remained in the $300,000 to $350,000 price range.


Click the image for a larger version of the graph.


The average selling price remained strong at $289,715, up 2% from July 2009 when it was $283,531. Year to date, the average selling price is $290,515, up 5% from 2009 when it was $277,490. The higher average selling price indicates continued strength in the mid-price range homes. In July it took an average of 39 days to sell a home.


Click the image for a larger version of the graph.


Home buyers had 1334 properties to select from at the end of July. Inventory levels decreased from the close of June when 1412 homes were on the market. Listing inventory continues to balance with REALTORS® listing 550 properties in the month of July, down 7% from the same month last year when 594 homes were placed on the market. Year to date, listing numbers are on par with 2009 at 4389.


Click the image for a larger version of the graph.


Softening sales and listing trends were also seen in the areas around Saskatoon (e.g. Martensville, Warman, Clavet and Dundurn). 71 properties sold, down 34% from July 2009 when 108 properties changed hands. The average price increased to $284,158, up 12% from July 2009 when it was $254,123. Listing numbers were down 15% with 230 properties being placed on the market. Year to date, 1643 have been placed on the market in these outlying areas.


Market demand remains strong, interest rates are favorable and job growth continues. Similar market conditions are expected through the remainder of the summer.


I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.


Norm Fisher
Royal LePage Vidorra

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Saskatoon real estate week in review: July 26-31 2010
Saskatoon real estate agents saw a reasonably decent sales week as fifty-one detached single-family homes and thirty-one condominiums changed hands for a total volume of eighty-five units across the two housing types. Sales slipped by just three units from the previous week, and by six when compared to the same week last year.


Listing activity cooled significantly and closed below one hundred units for the second time in July. You have to look back to February to find another week during which new listings were this low and you won’t find another week this year in which sales came so close to matching the listing numbers. Total new listings declined twenty-two units from last week to eighty-eight, three fewer than were listed during the same period in 2009.


Click the image for a larger version of the graph.


Total active listing began to show some signs of taking a direction as the total number of residential properties displaying an active status slid by twenty-four units this week to finish at 1345, the lowest level since the middle of May, but still more than nine percent above levels recorded at this time last year. As July closes, another forty-three listings are due to expire from the Saskatoon MLS® so it’s realistic to expect that total actives will move lower and may even break the 1300 mark by the close of next week.


As of this morning, there are 803 single-family homes and 468 condominiums available on the multiple listing service®. Last year at this time there were 741 and 393 respectively, so houses are about ten percent more plentiful while condo inventory has climbed nearly twenty percent year-over-year.


Click the image for a larger version of the graph.


Cancelled and withdrawn listings increased roughly ten percent over last week to thirty-four units. As usual, about half of those returned for another go brandishing a new MLS® number. An additional seventy-four Saskatoon homes sellers adjusted their asking price. Roughly seventy-five percent of those reductions were on properties priced above this week’s median of $270,000. The upper end market remains a challenge for sellers looking to move a property as buyers are faced with an abundance of choice and practically no pressure to move quickly.


Speaking of lots of choice, it won’t come as a big surprise that high-end condos continue to lead in terms of total months of supply. The owner of the Rumley Distinctive Loftsmade an aggressive move this week, significantly reducing prices on the nine unsold units in the building. The price on four of the nine fell by ninety thousand dollars. One came down by one hundred thousand dollars. A collective drop of nearly $650,000 is like a “buy eight, get one free deal” but you’ll still need to produce more than a half million dollars ($569,900) to crack the entry level of this unique and interesting project.


After a few weeks of softening prices all three measures that we track moved higher. The average selling price of a Saskatoon home was $290,455, up about eleven thousand dollars from last week and about the same as it was a year ago. The six-week average price moved higher to $291,426 to record a gain of just over a thousand dollars when compared with the previous week, up about thirty-five hundred from the same week last year. The four-week median saw the greatest gains, up five thousand dollars on the week, and four thousand dollars on the year, to $280,000.


Click the image for a larger version of the graph.


As a percentage of sales, overbids were slightly higher than they have been for a while with six of eighty-four properties going above the asking price. An additional six sellers got their full asking price. Seventy-three sales were closed below the list price by an average of $9,848 or an average discount of 3.3% of the asking price.


Click the image for a larger version of the chart.


I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.


Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.


Norm Fisher
Royal LePage Vidorra

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