Mortgage Myth 1

I Love Edmonton Real Estate
I Love Edmonton Real Estate
Mortgage Myth 1

Today’s episode is the first in a short series about busting mortgage myths. Jason is joined by Alyssa Fessick who is turning the tables and asking the questions to Jason.

Who needs a mortgage broker? Is it just people with bad credit that could benefit from a broker’s expertise? Jason says no. Historically, it was more likely for clients to have credit issues, but these days Jason sees a lot more AAA clients. In Jason’s world, an AAA client is someone who can get qualified for lending anywhere.

The question then becomes, where is right for you to borrow? There is more choice and opportunity, and brokers can find you the best fit in a lender. It isn’t an all-or-nothing game and each situation is unique. Jason’s job is to smooth out the wrinkles in the transaction and help to build a relationship.

Buying a New Home vs Buying Resale

I Love Edmonton Real Estate
I Love Edmonton Real Estate
Buying a New Home vs Buying Resale

Our guest today is Michael Leoppky with Maxwell Devonshire Realty. He is joining us to discuss what you need to know about buying a brand-new home versus buying resale.

[0:20] Tell me about yourself.

  • I became a licensed agent a little over 2 years ago. Before that, I worked in the new home building world for over 11 years.

[0:58] What are the differences between being a realtor and being a builder salesperson?

  • The licensing. There’s a fair amount of education and accountability involved.
  • There are legal responsibilities to my clients, compared to the entirely different area of builder representative. There was a lot less black and white there.

[02:21] What led to your career change?

  • The main appeal was having that black and white aspect of realty.
  • Committing to people’s best interest really appealed to me. In the building world, you were always forced to pick a side.

[03:39] What are the advantages of buying new?

  • Typically, you are getting new technology. Everything is built to today’s standards and codes, so you don’t have to worry about older build issues.
  • Building new, you have the option to personalize that home.

[05:11] What are the disadvantages of buying new?

  • While it’s a positive investment, there will be a lag before seeing a return.
  • It’s important to look at how long you are planning on staying in the property because of investment appreciation.

[08:09] Obviously, with resale, there’s risk of extra costs like renovations.

  • There are all kinds of unknown risks with resale but we take action to mitigate those risks.

[08:33] When meeting with a new client, how do you help them decide which path to take?

  • I start with a discovery meeting where I ask a lot of questions and get down into the why and where of moving. Everything builds a picture of what fits with clients’ needs and wants.

[09:50] Why would a buyer opting for a new home want to work with an agent?

  • As an agent, I have a legal responsibility to work in your best interests.
  • When you walk into a show home, there’s no obligation to disclose. There is no confidentiality.

[12:49] If I make an offer on a place, who has the power to say yes or no?

  • The sales manager decides.

[14:50] As a realtor, your background makes you a valuable resource for clients.

  • It certainly helps ascertaining reasonable prices. When you get a realtor and salesperson working together that care about the client, that is the perfect situation.

[17:37] If I am using a realtor, am I going to end up paying more?

  • No.

[21:56] What should buyers be aware of when looking at builders and neighborhoods?

  • There is a lot involved to consider. It’s no different than looking at listings. What’s important to you, what are your values?

[27:19] What are some of the biggest misconceptions about new builds?

  • That everything is made cheap. Builders don’t make huge margins.
  • My default response to ‘they don’t build them like they used to’ is thank goodness.

[30:49] Many contracts say there are no unauthorized site visits. Why is that?

  • Safety is obviously the biggest reason. You also have to consider that they have a process.

[33:00] Should you have a subject to inspection clause?

  • It depends on the builder, but it’s a good question to keep in mind. Remember that there is warranty insurance.


Contact Michael:

Michael Leoppky

Associate | Maxwell Devonshire Realty




How Title Insurance Protects Buyers

I Love Edmonton Real Estate
I Love Edmonton Real Estate
How Title Insurance Protects Buyers

This interview is for informational purposes only and listeners should check the specific wording of the coverages in their title insurance policy.

Our guest today is Erin Crocker B.A., LL.B, M.B.A. Erin is a lawyer and business development manager with Stewart Title. She joins us to discuss what title insurance is and how it can protect buyers.

[0:25] What does Stewart Title do and what is your role in the company?

  • Stewart covers residential and commercial title insurance.
  • I worked in private practice covering residential real estate and conveyance as well as commercial development.

[1:10] What is title insurance?

  • A policy that protects from losses due to specific risks that could adversely affect the interest in real estate.

[1:55] If someone buys a house, what can go wrong that requires title insurance?

  • Commonly it is inability to obtain complete or updated RPRs.
  • Title insurance covers what would be disclosed in those surveys.

[3:06] If you purchase a property and the seller can’t provide an updated RPR, who purchases the Title Insurance?

  • The seller may offer to cover the costs, but it is dependent on the deal structure.

[3:40] Can you give us an example of how Stewart Title has helped someone using Title Insurance?

  • If a buyer doesn’t receive an RPR and down the road finds the property they thought was part of their lot is actually city owned, they could face a loss on the property. Title insurance can compensate for that loss.

[4:36] How much compensation could they receive?

  • It varies case by case and how the issues are resolved, whether it’s negotiating use of property with the city or outright buying it.

[5:25] Is title insurance applicable to condos?

  • Yes, the same survey coverage is included.
  • It covers issues such as unit encroachment on common areas or vice versa and inaccuracies in the Estoppel Certificate.

[8:40] How is Title Insurance helping people during COVID?

  • If the land title office is closed while you are purchasing, there is coverage for a registration gap to cover the time between submitting and processing documents.
  • If a lien is placed against the title in the time between processing, you are covered for that.

[10:56] How else is title insurance being utilized during the pandemic?

  • Legislation changes now allow for documentation to be signed digitally.
  • If property tax documentation is missing, you are covered for outstanding debts against the seller.

[13:44] What is the difference between the title insurance required by lender and owner insurance?

  • The lender policy protects and pays out to the lender, and the owner policy serves the owner.

[14:25] What is the typical cost for a policy?

  • $125 for a lender policy and $50 for owners.

[15:40] Does the price increase with property value?

  • It increases nominally for properties over $500,000.
  • There is no price difference between acreage and city-based policies.

[17:17] If it was identity theft and a mortgage was bought under your name, is that covered?

  • There was a case of a father and son who had the same name. The son sold the property to a friend and they made off with the mortgage proceeds.
  • The father was able to recoup losses through the title insurance.

[20:58] Can you give examples of people thinking they were covered but weren’t?

  • The number one reason claims are denied is that no homeowner policy was purchased.
  • Secondly, risks that are created by or known to the buyer but not disclosed are not covered.

[23:25] If someone adds to their property without acquiring the proper permits then sells 30 years down the line, are the buyers covered?

  • Yes, there is a provision for permits.
  • Claims can only be made if a loss has occurred.

Contact Erin Crocker:


How COVID-19 Has Impacted Mortgages

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I Love Edmonton Real Estate
I Love Edmonton Real Estate
How COVID-19 Has Impacted Mortgages

Our guests today are Edward Kim and Imran Thaver from Genworth Canada. Genworth provides mortgage default insurance to Canadian residential mortgage lenders. They join us to discuss the impacts of COVID-19 and policy changes on their business.

[0:30] What do you do at Genworth?

  • We help Canadians purchase their primary residence with less than 20% down payment.

[2:03] Did the CMHC policy changes at the beginning of July affect Genworth at all?

  • We review policies twice a year. Our underwriting is currently sufficient for the risk we see in the market.
  • We assess risk constantly.

[3:20] There were plans to revisit the stress test, have you heard anything regarding that process?

  • No.
  • We understand that it can be a challenge for people entering the market and staying in homes for long periods of time, and we hope that once things normalize that it will be re-visited.

[4:47] The CHMC ratio tightening has effectively increased the stress test without actually increasing the stress rates. Do you have any thoughts on that?

  • We believe those individuals that are looking purchase, have the income, have credit and meet our criteria should be treated the same as before.

[5:53] What kind of market activity are you seeing?

  • A lot of people trying to get in.
  • With interest rates it is also a great opportunity. Lockdown has allowed some people to save money and get a down payment together.

[7:53] What are you seeing from a price point perspective?

  • A lot of activity in the first-time buyer range of under 400k.
  • We are seeing condos pressured due to supply.

[10:25] What do you see as the potential long-term impacts of oil prices on the market?

  • It’s definitely something we monitor along with unemployment rates. We are hoping to just see some consistency.

[11:27] Do you have concerns about the delinquency rates rising?

  • It’s too early to tell. The industry has all worked together to make deferrals work.

[13:32] What happens if there is a second wave when the deferrals end in fall?

  • Hopefully the staggered approach to re-opening keeps everyone healthy. We are working to ensure our customers are looked after.

[14:23] What kind of risk plans do you have in place?

  • We have strong underwriting policies and we are looking at properties with a fine-tooth comb.
  • We want to ensure individuals can be in the right home long term.

[17:44] Where do you think we will be a year from now in regards to renewals and transfers?

  • As long as our customers are current on their payments, we have no issue with people moving or switching.

[18:34] What are your predictions for the market in the next few years?

  • The current driver is that niche market, but it will be interesting to see what happens with the downward pressure on condos and also with the higher end homes as inventory increases.

[20:50] As insurers, what keeps you up at night?

  • Ensuring our customers are happy and that our lenders and brokers know we are here to support them.

[21:29] Have you seen a shift in where deals are being generated?

  • Yes, more lenders are focusing on mortgage specialists or broker business.

[23:20] Have you seen a surge in transactions?

  • There has been a definite uptick since May.

[23:45] Do you have any final thoughts?

  • We welcome the opportunity to spend time with the broker network. We have dedicated broker strategies and we want to ensure everything we do is for the end user.

Contact Edward Kim at 780-982-1998 or

Contact Imran Thaver at 780-263-6250 or

Reverse Mortgage Misconceptions

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I Love Edmonton Real Estate
I Love Edmonton Real Estate
Reverse Mortgage Misconceptions

Our guest today is Elena Russell, BSc, PFP, FMA. Elena is a Business Development Manager with Home Equity Bank in the Edmonton South Region. She is here to talk about Reverse Mortgages and the misconceptions people have about them.

[0:20] What is a Reverse Mortgage?

  • In Canada, a Reverse Mortgage is first charge and you retain ownership.
  • We can lend 55% to maximum value of property and it leaves equity in the home
  • The minimum age to qualify is 55 and typical approval is 25%.

[2:12] Why get a Reverse Mortgage?

  • If you are struggling to make payments and working multiple jobs to keep up, it allows retirement, avoiding of care facilities, and to maintain a certain lifestyle during market lows.

[5:05] What kind of demand are you currently seeing?

  • We are receiving more phone calls and engagement as people are at home due to the pandemic.
  • People are discovering that if they lose their job they can’t qualify with traditional lenders.

[9:06] With a Reverse Mortgage, you can choose to make payments?

  • There are no requirements, but you can make interest payments and are allowed to make 10% payment towards the principle.

[10:40] What impact is the grey divorce rate having on your clientele?

  • There has certainly been an increase. You can utilize a reverse mortgage for spousal buyout.

[12:09] Are you able to put a Reverse Mortgage on a property you are buying?

  • You could potentially blanket both properties if you are keeping your home.

[14:33] What are some of the current reasons people are getting Reverse Mortgages?

  • Due to COVID-19, people are looking at financially helping out their children more.

[15:31] Are there situations that a Reverse Mortgage doesn’t make sense?

  • If the applicant is still working full time, able to make payments and qualifies for a Home Equity Line of Credit.

[16:40] Do you have any final comments?

  • Unlike in the US, in Canada you will not lose ownership of your home and you will never owe more than the property is worth.

Real Estate During Pandemics

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I Love Edmonton Real Estate
I Love Edmonton Real Estate
Real Estate During Pandemics

Our guest today is Ross Storeshenko, one of the partners from Edmonton House Hunters who are with RE/MAX Select. Ross is here to talk about the effect the Covid-19 pandemic is having on his business and real estate as a whole.

[0:39] What impact has the outbreak and lockdown had on your business?

  • Sales are down. We are used to doing more deals around this time.
  • Use of protective clothing, gloves and masks during every day work.
  • There are misconceptions about discounts. There is a disconnect between sellers’ and buyers’ expectations.
  • Fewer new listings on the market.
  • A majority of business is new homes. People don’t want to or can’t afford to sell at this time.
  • Builders are out of work. They need to drop costs in order to make money.
  • Whether or not you will get a discount varies situationally.

[5:10] Is this due to buyers’ perception of risks attached to lived-in homes?

  • Yes, however, it is unlikely to be a genuine risk.
  • The Alberta Real Estate Association has instigated a ‘Buyer hold Harmless’ form to cover liability in case anyone does contract the virus.
  • Sellers are often requesting additional questionnaires regarding health.

[6:18] What is the state of the Edmonton market right now?

  • For the most part, business as usual.
  • The market is still very busy. This is most likely the bottom line that the market can go.
  • Stability depends on how soon people get back to work because employment dictates house prices.
  • Mortgage rates are low, provided you are still employed.

[8:31] What kind of impact do you think there will be in Alberta adding in the factor of dropping oil prices?

  • The two markets are linked but it will take time to see the full effect if any.
  • Realistically, there will be a small drop in prices for a year or two and sellers may have a hard time.
  • You may take a hit selling now but appreciation on bought property will be greater long term.

[11:58] What changes in marketing have you seen?

  • More virtual tours.
  • Making more posts online about listings.
  • Showing fewer properties to reduce potential exposure.

[13:49] What does the future look like post-Covid-19?

  • There will be a pent-up demand. Statistically we could face a boom.

[14:55] How did you get involved with real estate?

  • I’m a third-generation realtor.
  • I began renovating homes at 13 as dad had a business flipping houses.
  • After school I moved into surveying, then onto Daytona Homes where I learned the process from start to finish.
  • I moved into sales and started my own office with my partner Kenny.

[17.15] Have you won any awards?

  • RE/MAX Select reached top 25 in the city last year, our goal is to be top 10 this year and ultimately number one.

[18:04] Do you have areas of specialty in the city?

  • Any areas, but especially sub-areas and acreages that are often overlooked by other realtors.

[19:30] Was there a specific moment you realized realty was for you?

  • It was more being able to help people and realizing I could make a difference.

[21:04] What’s the most frustrating thing in your recent transaction history?

  • People asking for discounts before going through the pre-approval process.

[22.59] What trends have you seen in the last few closings?

  • Longer time is needed for financing as everything is operating slower.

[24:48] What attributes should someone look for in a realtor if they are buying out of province?

  • Integrity, customer care, experience and transparency.

[26:20] Do you have any final thoughts?

  • If you are currently renting, now is the time to seriously consider buying.


Contact Ross Storoshenko
(780) 965-1544

Radon Gas in Alberta Homes

I Love Edmonton Real Estate
I Love Edmonton Real Estate
Radon Gas in Alberta Homes

Our guests today from RE/MAX Elite are Kelly Dann and Craig Pilgrim. They’re here to talk about the issue of radon gas, which has existed in Alberta for a long time but doesn’t get talked about as extensively as it should.

[0:45] Can you explain what the concern is about?

  • It generally doesn’t pose a problem because it dissipates quite quickly in air, but because of the way we build our homes, radon gas can be concentrated in them.
  • These levels can result in health concerns such as lung cancer.
  • When homes are sealed during winter, there’s more potential for radon gas to build up.
  • It’s second only to smoking as a lung cancer cause.

[4:51] As realtors, what are you doing in terms of educating your clients?

  • We are reaching out to our past clients as far back as six years ago. We’re providing testing for them.

[5:43] Let’s say I’m a buyer. How do I know if a house I’m interested in could have problems with radon gas?

  • The only thing you can do is to have your realtor ask the selling agent if the house has been tested.
  • Health Canada believes that only long-term tests which last at least 90 days are accurate.

[7:11] Has the Real Estate Council of Alberta come out with guidelines for realtors?

  • They have provided bulletins for industry members.
  • They’ve also given us checklists that we can discuss with both buyers and sellers.
  • It’s mandatory to disclose any known defects of a house, but this doesn’t mean that the seller has to do radon testing.
  • We are telling buyers that they need to be aware of radon and how it can affect their health. We tell them they can ask the seller if they’ve done the testing, and if they haven’t, request that they do so.

[11:18] If I’m a buyer and want to buy a house from people who haven’t done radon testing, I can see how it could slow down transactions.

  • We’ve been discussing getting the seller to test, and then when our clients move in, we’ll test the radon pack again. We might have to see if we can do a holdback if the concentration levels come in at a certain amount.

[12:44] If you discover you have a house with radon, how do you solve the problem?

  • The method that we are pursuing is the heat recovery ventilation (HRV) system.
  • They have several additional benefits, such as heating savings.
  • There’s also the slab depressurization system, where piping is installed under the slab and connected to a fan.

[14:48] This is far less of an issue in condos, right?

  • That’s what we thought.
  • Our broker is aware of several condo corporations that are considering the installation of systems to mitigate radon.

[15:53] To put it in context, radon ranks up there with mustard gas as a cancer-causing agent.

  • What’s most disturbing to me is the visual. Particles of radon go into my lung tissue, they continue to deteriorate, and as they deteriorate, they give out blasts of radiation that are stronger than a dental x-ray.

[17:34] Do you have an idea of what percentage of homes in Edmonton might be exposed to this?

  • No idea, because there hasn’t been enough testing yet.

[19:29] Where can people get the tests?

  • Any hardware store, and they cost around $30-$50. The price includes getting them sent off to be examined.

Craig Pilgrim, Associate Broker

Kelly Dann, Associate Broker


Edmonton Real Estate Update

I Love Edmonton Real Estate
I Love Edmonton Real Estate
Edmonton Real Estate Update

Josh Cudmore from Initia Real Estate is our guest in this episode. He was in the new home warranty business for about ten years after which he started doing his own real estate deals, naturally leading him to become a real estate agent. Josh fills us in on what he’s currently seeing in the Edmonton market as an agent, including infill homes, skinny homes, and condos.

[1:31] What is new home warranty?

  • In 2014, the Alberta government made a legislation where every builder is required to carry new home warranty coverage.
  • There’s an obligation for the developer to look after their client for a period of time.
  • A lot of issues I see are fit and finish. The building envelope comes up, too.
  • There are limits with how extensive the coverage is, but obviously, there’s more since 2014.

[6:10] What are you seeing as a market trend in your last five or ten transactions?

  • We’re still in a buyer’s market, but I’m starting to see some slight stabilization.
  • If you’re selling, you need to price competitively.
  • The mass appraisals give you an idea of what your property is worth, but to get a true value, it’s important to do a market analysis.

[8:21] Over the past few years, you’ve gotten involved in building infill homes. What neighbourhoods have you been targeting?

  • We’ve been doing it in areas close to downtown because these neighbourhoods are very sought after.
  • When looking for a property to convert to infill, the biggest factors are lot size and zoning.

[11:06] From my perspective, it appears that skinny homes are now the preferred structure of choice for builders. Why is that?

  • It’s very location dependent.
  • If a family is going to spend so much on a home, they want a single-family home.

[12:51] In my neighbourhood, there have been a number of skinny home infills built in the past couple of years that haven’t sold. Is that something you’ve seen in other neighbourhoods?

  • I’ve seen it. It’s just the way the market has been.
  • Infill in Edmonton only became popular over the last seven years. A lot more people began doing development in the city, causing an influx of inventory.

[15:43] There has been a few community associations that are reluctant to have infill and lot splitting. What’s your take on that?

  • I see both sides of the argument.
  • A think a potential solution would be imposing architectural guidelines for specific areas.

[17:03] What’s your take on the Blatchford development?

  • There’s been some hiccups, but I think it’s great. I’m big on the downtown core growing, so I think it’s good for everybody.

[17:50] What are you seeing with the condo market?

  • It’s a little bit saturated. We’re still seeing new towers being built, but some are rentals.

[18:36] What are buyers telling you is the most important factor for them?

  • They have options right now and don’t feel pressured to make a decision.
  • They’re looking for pretty much the perfect home.

[19:35] What’s been the most frustrating day you’ve had as a real estate agent?

  • When I’ve had a listing that’s been difficult to sell, I finally get an offer, but then it falls apart in the final hours.
  • I try to mitigate these situations by asking a few basic questions.

[21:29] When did you know that being involved in real estate was the right move for you?

  • It didn’t take long. The first week I was licensed I did a deal. It’s something that I enjoy doing every day.


Josh Cudmore

REALTOR®-Initia Real Estate

Direct: 780- 977-6019

Edmonton Office: 780-705-5393




Plumbing Knowledge for Buying a Home in Edmonton

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I Love Edmonton Real Estate
I Love Edmonton Real Estate
Plumbing Knowledge for Buying a Home in Edmonton

Kevin Korte, owner of Edmonton-based Butler Plumbing, is our guest in this episode. Progressing through his plumbing apprenticeship, Kevin was a journeyman for three years before deciding to start his own business. Now 15 years in business, he shares some worthwhile plumbing and heating tips!

[1:27] What are some common issues you get called for after someone has bought a home?

  • A lot of them will come down to the main sewer drain. We have to go in, auger it out, and clear it.
  • It’s important to look at the drain when buying a house. Some house inspectors can do this, but usually, it’s better to have a plumber check it out.
  • Houses in Edmonton built in the 50s sometimes use interesting material in their drainage lines. These pipes can collapse over time.
  • We also get a lot of calls to repair fixtures and faucets.
  • We do a lot of water softening as well. The water in our area is very hard, and that can really decrease the life of your hot water tank.

[8:07] Is there any preventative maintenance to make the tank last longer?

  • Starting with a new tank, flushing the drain periodically at the bottom can help get some of the scale out.
  • One of the biggest things for maintenance is keeping the air intake clean.

[10:30] I would imagine that one major call you get is related to back flow valves. If the city has issues, things can start backing up in someone’s basement.

  • Any plumbing fixture below street level needs to have protection.
  • It can be expensive depending on where the valve needs to go. It always involves breaking concrete.

[12:41] If I’m buying a house, are there types of pipes that I should be cautious about?

  • Poly-B. It’s grey and pretty noticeable.
  • We’ve seen some houses with Poly-B and no issues. However, if you’re buying a house with it, budget having to change it out just in case.
  • Another big thing is water damage that can be out of sight, like behind walls, caused by damaged weeping tiles.

[18:20] What are some of the horror stories you’ve worked on lately?

  • The most common horror story is a renovation that wasn’t done properly.
  • I feel bad for people who buy a house not knowing it wasn’t put together properly. One thing leads to the next.
  • The best advice is to ask if a permit was done. If there wasn’t, I’d be asking a lot of questions.

[20:21] Is there anything we should talk about that I haven’t mentioned?

  • Another big part of our business is boiler or hydronic systems.
  • A lot of the time, home inspectors don’t have a lot of experience with these. We can do a separate inspection for them.
  • Without doing annual boiler maintenance, there’s a potential for carbon monoxide. Replacement costs can also get crazy.

[22:39] What do people need to be aware of when buying acreage properties?

  • You might have a few extra components, but they’re usually pretty straightforward.
  • Maintenance is important here too.

[25:37] Are there any things to be aware of when it comes to condos?

  • You need to get approval from your board if you’re doing a renovation beyond the paint on the walls.
  • The type of piping you need to use in a high rise is not the typical piping you find in a hardware store.

[27:40] How would you go about selecting a plumber?

  • Word of mouth. Everybody knows someone who had to use a plumber at some point.
  • Having both great service and huge knowledge can be hard to find.

Kevin Korte 
4260 93rd Street,
Edmonton, AB T6E 5P5, Canada
p: 780-432-3947 c: 780-994-7562

Jill Jordan & David Quaschnick

I Love Edmonton Real Estate
I Love Edmonton Real Estate
Jill Jordan & David Quaschnick

Jill Jordan and David Quaschnick of RE/MAX Real Estate Edmonton are our guests in this episode. They have both been in real estate for about fifteen years, with Jill formerly managing restaurants and selling RVs while David became an agent after getting his start flipping properties.

[1:18] Were either of Jill’s careers directly transferable to real estate?

  • Being on the sales side of RVs prepped me for how mortgages work with amortization, payments, etc.

[2:32] Is David still doing flips?

  • I am still currently doing flips, focusing mostly on basement suites.
  • Even though the market is trending downwards, there’s still money to be made on flips if you are creative.

[5:03] Who’s the client that will typically buy one of these homes that is great for adding in a basement suite?

  • There are lower-end buyers that can afford a big house, but they’re getting smart about using their money.
  • A second type is the investor, who wants to buy the house as cheap as possible. They have almost unlimited resources.
  • Most investors go after older-style bungalows because it’s their opinion that having a two-bedroom suite downstairs will net them more money.
  • People buying new homes typically want just one bedroom downstairs; they don’t want to look after a whole family.

[7:15] Looking at both of these property types, what value increase do you get when there’s a legal suite in the house?

  • You’ll see a 15-20% increase in the value of the home.
  • Investors will look at the pure cash flow and ROI, and that will be around 8-10%.
  • Putting in a basement suite usually costs from $50,000 to $65,000.

[9:30] What other trends are you seeing in the market right now?

  • The most apparent trend is the amount of foreclosures. Over the next twelves months, I think we’re going to see a dramatic rise.
  • I see nothing but opportunity in the market because cheap will always sell.
  • The only people I see hurting are homeowners that are in the $500,000-$800,000 price range. They required two strong incomes to afford the house, but one of them needed to take a pay cut.

[11:31] Can you really get a good deal when buying a foreclosure?

  • Back in the 90s, the banking system set it up so that banks don’t take a huge hit on these homes.
  • Banks would rather hold on to the property than sell it for a huge loss.
  • If you want the better deal, it’s smart to work with an agent who can approach the people that are getting into trouble before they get into foreclosure.

[14:43] Expand a little bit about the lack of warranties in buying as is, where is.

  • It’s a high-risk proposition, and this game is mostly played by people who know what they’re doing.

[15:50] Do you see a lot of people doing long flips?

  • I don’t think anyone does a long flip by choice.
  • It’s a no-brainer to turn a space you never use into something that generates cash.
  • The struggle that a lot of first-time buyers have is that they’re still got their parents’ mindset of not buying a home attached to anyone else’s, having a big yard, etc.

[19:10] Are people being cautious or fearful when buying?

  • I’m finding the first-time buyers are coming in very smart. They’re deciding to bank money.
  • Buyers aged thirty to forty-five are not as cautious and are willing to go into debt.

[22:10] Where do you see the market going in the next three to five years?

  • We’re going to be exactly where we are right now. I don’t see any real change because we’ve built way too many new homes.
  • I know that if someone bought a house between 2010 and 2013, it’s not worth more today than it was then.

[26:02] What’s the best real estate advice you’ve ever received?

  • Sit down with an agent from day one and have them counsel you.
  • With so many variables at play, you really need to take your agent’s advice and trust them. They have a fiduciary duty to you.
  • Jumping in and actually buying a house is good advice too. Make sure that you’re well-educated about it.

[27:41] What trends have you seen in the last five to ten transactions?

  • I’m still dealing with that second- or third-time buyer. I focus on homeowners, so my trends aren’t changing; families still need a safe house to live in.
  • On the investment side, they’re a bit more cautious about what they’re buying.

[31:30] What advice would you give to someone trying to figure out who to use as a realtor?

  • Talk to a person that you trust to see if they know someone in that area.
  • You need somebody that knows how to deal with people and contracts.
  • The last place I’d look for an agent is on the internet. You need to take the time to ask questions in-person.

David Quaschnick
ReMax Real Estate

Jill Jordan
ReMax Real Estate