Conflicts of Interest

In rare situations, you may run into a conflict of interest. It arises when there is a real or apparent incompatibility between a real estate agent interests and your interests. Examples of common conflicts that can arise in a real estate transaction:

Conflict #1: REALTOR® is related to seller

if you find a home to buy and the seller is related to your real estate licensee. This is a conflict of interest because your real estate licensee is supposed to put your needs above all else and if they’re related to the seller, it could be difficult for them to do so. This is a conflict of interest because your real estate licensee is supposed to represent your best interests, and they won’t be able to fulfill that fiduciary duty if it’s their property you want to buy. REALTORS® have an obligation to avoid, and disclose any conflicts of interest to you as soon as they arise.

Conflict #2: REALTOR® is the listing agent

Conflict #2: Buying a New Build

Your real estate professional cannot provide services to you if they are in a conflict of interest unless you give them your written informed consent.

Is your City of Edmonton Property Assessment Accuarate?

Property assesments in Edmonton are only a base point. Your home could be worth a lot less or a lot more. The city uses a computer system to generate an estimated guess of your homes value without physically seeing it. There are several reasons why your property assessment is not accuate.

Should I dispute my tax assesment?

Every year, edmontonians recieve thier city assesment and if you feel that assessed value is incorrect, you do have the option to dispute it. If you win, your property taxes will go down. However, if the city says your home is worth more, they will increase the amount of taxes you owe every year. Before disputing the value of your home, it is best to reach out to an experienced REALTOR® for a more accurate selling value.

What is the difference between a property assesment and your tax assesment?

A tax assesment is what the city of Edmonton says your home is worth. A property assesment is the current market value of what your property is actually worth in today's real estate market.

There are many factors which come into play when there is a discretion in the price of your homes value. Mainly because the city is only guessing whats going on in your neighborhood by looking at sales data. Below are reasons why the city of Edmonton assessment is different from the true value of your home?

What buyers think when they check out your tax assesment (And they do)

If your assesment is higher than your selling value, buyers may feel like they are being ripped off. If it is lower, they can feel like they are getting a great deal. An experienced REALTOR® will explain why there is a discression, however, if buyers are not educated, the sale of your home can go sideways.

Reasons not to rely on your City of Edmonton property assesment

• They don't go into your home (unless you dispute it and invite them in)
• Several foreclosures in your neighborhood (this will decrease your homes value)
• Several permits taken out for renovations (this will increase your homes value)
• A few nearby properties sold 1.5 to 2 years ago which were much higher or lower
• The condition of your home is worse of better than most in the neighborhood
• The square footage of your property
• The size of land your property sits on 

If you are considering selling your home, please contact me for a free no-obligation accurate market analysis of your home. Call my office at 780-910-5179

What are material latent defects and how do they effect your home purchase?

Material latent defects are a physical defect that is not discernible through a reasonable inspection, and makes a property dangerous or potentially dangerous to the occupants. A good example of a material latent defect is mold issues which have been covered up prior to putting a home on the market.

These are defects that may not be discoverable during a reasonable inspection of the property, even by a professional home inspector. Material latent defects may also include defects that would be very expensive to repair or when a seller did not acquire permits prior to developing a basement.

These are things your professional will not know unless you tell them. If defects are discovered by a buyer during an inspection, or by their own real estate professional or lawyer when they review permits, real property reports, or title, it could put the transaction in jeopardy.

Examples of material latent defects

• a seller finished the basement of their house and in the process covered a large crack in the basement wall that affects the structure
• a seller finished the basement of their house, or built an addition or a garage, without the appropriate permits
• a seller knows that whenever it rains, water enters the house
• the home was a former marijuana grow-op and the property has not been remediated. The growing conditions for a large marijuana grow operation create an ideal environment for potentially dangerous mould and mould spores and these may linger and continue to make the property unfit to live in if it has not been remediated
• the home was a former production operation for fentanyl or other opioids. Particles of these substances can remain in homes and surfaces and can be extremely dangerous if touched or inhaled

Sellers cannot hide defects or mislead buyers about the condition of the property or other attributes. Sellers must disclose all known material latent defects.

Your real estate professional must also disclose to buyers any material latent defects they know about. Real estate professionals cannot help hide or disguise material latent defects.

What is the importance of RMS?

Residential Measurement Standard Principles

REALTORS® must use the RMS when measuring and advertising properties. Measurements must be calculated to within 2% of the RMS size. RMS measurements are only included where the structure is heated and insulated. For detached properties, exterior measurements are used. For apartment style condos, interior perimeter walls are used at floor level.There are specific guidelines for measuring sloped ceilings, walkout basements, bay windows, sunrooms, dormers and cantilevers.

What happens if the RMS is incorrect

If the RMS is incorrect, you or REALTOR® can be held liable for the discrepancy and a buyer has a legal right to sue you for fraudulent misrepresentation. Most REALTORS® hire out a licensed RMS Company to ensure the size of your home is advertised accurately.

How to Accurately Use the Residential Measurement Standard

Alberta REALTOR® must use the Residential Measurement Standard (RMS) when measuring residential properties. This measurement standard helps consumers easily and accurately compare different types of residential properties.

The RMS offers a consistent means of representing the property above grade space. Among other things, the RMS sets out what parts of a property can be included in its measured-area. For example, if a room has a dormer with a ceiling height of only 4 feet, is it included as floor space? What about finished basements that are entirely below grade? 

When stating the area of a residential property, your REALTOR® must follow the RMS principles:

• Alberta REALTORS® must use the RMS.
• Identify if the measurement system is metric or imperial, and apply it consistently. Measurements must be calculated to within 2% of the RMS size.
• For detached properties, measure the property using the exterior wall at the foundation.
• For properties with common walls, such as half-duplexes, townhouses, and apartments, measure the interior perimeter walls (paint-to-paint) at floor level.
• Include floor levels that are entirely above grade. Below grade levels must not be included in the RMS area. If you have a split level, this may include two or three levels depending on where the grade sits.
• Include all additions to the main structure above grade areas within the structure if they are heated and insulated.
• The property must have a minimum floor-to-ceiling height of 7 feet. If the ceiling is sloped, the area with a floor-to-ceiling- height of at least 5 feet is included in the RMS area, provided there is a ceiling height of 7 feet somewhere in the room. This can eliminate bay window sitting areas.
• Exclude open areas that have no floor, such as vaulted areas.

Your REALTOR® also has a responsibility to ensure you understand the RMS and its implications, and is required to discuss it with you. This discussion will help you make informed decisions about the size and suitability of properties.

For more information about the RMS, you can read the Consumer Guide to the Residential Measurement Standard in Alberta.

Do houses in Edmonton have radon and how concerned should you be?

What is Radon?

Radon is an odourless, tasteless, colourless radioactive gas that is the by-product of uranium decay. Uranium occurs naturally in soil and rock formations, and creates uranium deposits, some Canadain provinces such as Alberta and Saskatchewan, have higher radon levels.

Radon seeps through the earth and into basements, where it can become trapped because of the efficient way our homes are sealed from the outside elements. Prolonged exposure to radon can lead to health problems, including lung cancer. In fact, after smoking, radon gas is the leading cause of lung cancer.

The Alberta Building Code 2014 included new requirements to protect homes from radon. The requirements came into effect in late 2015, and include, among other things, that new homes require a properly located radon rough-in or passive pipe in the basement, which can make it easier (and cheaper) to install a radon mitigation device in the future if it’s needed.

Does your Edmonton house have Radon?

It is important to know that homes anywhere in Canada can have dangerous radon levels. However, some of the homes in the prairie provinces have the highest average level of radon.

Radon Gas Map, Canada. Source: Radon Environmental Management Corporation. 2011

How to test for radon

There are a few companies in Edmonton which will test for radon. This is becoming a more common contingency for home buyers. Long-term testing: tests of at least 90 days during the heating period (fall, winter, and spring) or during the height of summer when you may have air conditioning running provide reliable for determining radon levels.

Short-term testing: in Canada, some entities market and recommend short-term testing. Health Canada states short-term tests are not acceptable to assess radon levels as radon levels can vary significantly over time. Do not be misled, short-term tests do not provide buyers and sellers with an accurate indication of the likelihood of adverse radon levels.

What is an upside down mortgage?

An upside-down mortgage is simply a mortgage in which is more money is owing than what the property is worth. An upside down mortgage can happen to anyone. With real estate markets in big cities like Toronto and Vancouver where house values are decreasing, many homeowners will find themselves in this position today.

If you find yourself in this situation and can afford your monthly mortgage payments, the best thing to do is stay put and keep paying down your mortgage until you have built some equity.

Can You Sell Your Home With an Upside Down Mortgage?

You may want to or need to your home in a downward market, knowing next year, your home will be worth less. The answer is yes you can, but will need to take into consideration the ability to pay the debt you acquired between closing costs, mortgage penalties and mortgage payouts. If you are able to find the funds, sometimes it's just best to take the loss and move on to avoid going further into an upside down mortgage.

If you are struggling to make payments and your mortgage is upside down, talk with your bank. Your financial institution can allow you to sell your home and provide you with a personal loan to cover the shortfall, saving your credit.

The simplest solution for homeowners with upside-down mortgages is to continue making payments, if possible, and wait for home prices to rise again before selling their homes.

Are there any other options?

Sometime you will see an owner selling half of a house (yes it is possible). This is usually due to a civil enforcement and a lack of equity in the property. If you choose to keep your home and are will to sell half to a stranger, this may also be an option for you. 

Living in Riverbend Edmonton

The Riverbend neighborhood is one of the best and favorite places to live in southwest Edmonton. It consists of nine communities. The new part of Riverbend is located on the east side of Terwillegar Drive and includes the communities of Bulyea Heights, Carter Crest, Falconer Heights, Henderson Estates, and Ogilvie Ridge. Old Riverbend is located on the west side of Terwillegar Drive and includes the communities of Brander Gardens, Brookside, Ramsay Heights, and Rhatigan Ridge.

House prices range from move-up to luxury home prices. Unlike any other district in the city, Riverbend offers its homeowners plenty of mother nature's natural scenic beauty with community walking paths and river valley access all within walking distance. Old Riverbend is well known for the popular footbridge which runs across the river to Edmonton West via walking paths.

Rhatigan Ridge was first subdivided in 1980 with various house styles from large luxury homes on spacious lots, especially near the edges of the river valley to a range of more modest executive-style houses. It encompasses the Riverbend community league beside St. Mary Catholic School and features a high point of land with panoramic views.

Brookside is nestled away from the rest of Riverbend bounded by Whitemud Creek Ravine North with scenic views of our Downtown making it a highly desireable place to live. Most homes in Brookside are executive-style houses constructed in the 1970s with above-average-sized lots and mature landscaping. Brookside homeowners enjoy the natural woodland habitat, skiing at the Snow Valley Ski Club and Rainbow Valley Park, access to river valley park trails, and other recreational facilities.

Ramsay Heights is Riverbend's oldest community located in a prime real estate location and features a mix of housing equally split between single-family houses and condominiums. Ramsay Heights offers a high elevation vantage point with panoramic views of Edmonton.

When originally built, Ogilvie Ridge was to be a private, elite, gated community until the city decided, Edmonton against any gated communities. It is bordered by Bulyea Heights, Whitemud Creek ravine, and west by Rabbit Hill. Ogilvie Ridge features a natural topography with an integration of the North Saskatchewan River Valley ravine system defining this southwest Edmonton neighborhood.

View Riverbend Edmonton Homes for Sale

Lake front properties in Summerside Edmonton

Summerside is an exclusive community in southeast Edmonton with a beautiful 28-ft. deep, 32 acre lake which was designed for swimming, fishing and paddle boarding, kayaking, canoeing exclusive to only members of the Lake Summerside Residents Association.

Summerside offers a variety of amenities and recreation options in all the seasons of the year including the beach for enjoying beach volleyball, a tennis court, mini golf for little ones to practice, playground, hall rentals, community parks, walking trails and green spaces for BBQ's.

Summerside is located within the Orchards district. It is bounded by Ellerslie Road, 66 Street, 25 Avenue and Parsons Road. Real estate construction of the Summerside neighbourhood began in the early 2000s and is a mix of all types of residential properties, commercial, institutional, and recreational land uses with a variety of parks and two schools.

The majority of residential real estate in this southeast Edmonton community consists of mostly single family detached houses. Want to live in the best southeast Edmonton community?

View our current Summerside homes for sale

What's a Zero Lot Line?

A zero lot line house is where the property structure comes up to or very near the edge of the property line. Townhouses are good examples of zero lot line structures. Over the last few decade, most houses for sale in Edmonton will have been built with a zero lot line. These houses offers buyers more square footage for indoor living space and smaller yards for less exterior maintenance.

These houses are popular due to the cost saving of a parcel of land within the city which is handed down to the purchaser via the cost of the house. Zero lot lines are also popular where builders able to construct duplexes and infills on land where revitalization has taken hold of our city. These dwelling encourage a sense of community among neighbors.

Other than cost benefits, there are drawbacks to living in a zero lot line property. Some of these drawbacks include limited parking, privacy, smaller yards, visitor parking and your neighbors getting to know you through your windows.

Have a question about real estate? Contact us

How much are closing costs in Edmonton Alberta

Are you ready to purchase your new home? Often, buyers find themselves overwhelmed with the cost of purchasing a home and should be aware of these extra home costs to ensure you won't be struggling at the last moment to find more cash to complete your purchase.

When a home is sold, the buyer incurs various closing costs in addition to the property sale price. Although most of the expenses of the house are paid for by the seller, usually including real estate commissions, the buyers pay a variety of fees such as mortgage origination charges, appraisal fees, title insurance, lawyer, home insurance, homeowner association fees (HOA) and property tax adjustments. Depending on the buyer and the home purchased, there may be additional fees including CHMC Fees, which can be added to your mortgage amount and other costs. agreed upon and not covered by the seller costs. Avoid extra closings costs due to a delayed closing. 

Don't forget your moving and utility hook-up costs. As a rule of thumb, one to two per cent of the cost of your home will cover all closing costs. If you have questions or would like to know more about purchasing a home, email us.

If you are waiting to purchase a home - Keep up to date on the proposed HST tax which will be an additional cost when purchasing a home in Edmonton.

How Realtor® Commissions are Divided

When an agent lists a property on realtor.ca, usually half of the commission is for the buyers agent and half is for the selling agent. Once the REALTOR® has sold the property (all conditions removed). They normally recieve their paycheck with a fews to a month after closing (possession day).

Unless you own your own brokerage, there are fees to be paid to your office, depending the brokerage contract, the brokerage can take up to 50% of the total payable to the agent. There are also other expenses (buy side & sell side). Once all costs are payed out, the real estate agent will need to pay their share of taxes to revenue Canada on the remainder. There are additional cost as well including licencing fees.

As a buyers agent, there may be another agreement in place, where the REALTOR® who brought in the has recieved the client from a referral and a refferral fee is payable. Normally this is between 25% - 30%. Other than time, gas, vehicle maintance, maybe a gist basket, the buyers REALTOR® will receive what ever is left.

The other half of the commission goes to the listing agent. Out of the listing side, the Realtor usually has more expenses than a buyers agent including the cost of marketing the property, (which is not cheap!), the cost of hiring a professional photographer, the cost of accurately measuring the property, cost of a third company putting up and removing real estate signs, key boxes, promotional items, website maintenance, property-specific webpages, etc. Same as the buyers' agents, the listing agent also pays for annual licencing fees for Realtors, seller closing gifts, title searches, other fees associated with selling a property and Revenue Canadas portion of the commission.

• MYTH 1: REALTORS® Make alot of money. The average Edmonton REALTOR® does less than one transaction per month.
• MYTH 2: Brokerages do not pay REALTORS® - REALTORS® pay the brokeragae to work there.
• MYTH3: Putting your home on our MLS sells your home - this couldn't be further from the truth.

The net commissions left for the REALTORS® is what they get to take home to feed, shelter and cloth their families. Today, in Edmonton's soft real estate market, many agents are now changing companies to a "lesser fee structure" company due to the cost of doing business. Many of these agents can no longer afford to be REALTOR®, simply because they are not doing enough business, don't want to work as hard to earn a higher commission, are licenced only to buy and sell real estate for themselves or are on their way out of the business.

There are real estate companies in Edmonton who will charge a flat fee or a lesser commission to put your home on MLS, and other REALTORS® will charge a higher fee (or more equivilant to other provinces). Understanding how much money Edmonton REALTORS® make will depend on how many homes they sell and how much commission they receive on each property sold.

Now that you have a better understanding of how commissions work and how much REALTORS® actually net, let's pretend again for a moment, you are a real estate agent. Although it is against the REALTORS® Code of Conduct not to show properties based on commissions, it can be a buyers discretion not to view them read more about buyer brokerage agreements). If you were a Realtor in Edmonton, would you show a property with a lesser commission?

In Alberta, all real estate commissions are negotiable, up or down and when hiring a real estate agent to sell your Edmonton home, a few thousand dollars in real estate commissions can make the difference between selling and not selling your home - Choose your REALTORS® based on the value they offer and interview more than one. Do they have the tools to market your home? Are they giving you a discount based on services that will be eliminated? Are they asking for money upfront, prior to doing anything? How is their internet presence?

Always interview a few real estate agents, ask lots of questions especially about their marketing plan and how they attract buyers. Find out what they have to offer. Not all Realtors are the same, each agent is different. If you use a REALTORS® or a real estate company to sell your home, there will be a fee. The big question you need to ask yourself is - "HOW MUCH MONEY WILL YOU NET AT THE END OF THE DAY?"

Most REMAX REALTORS® in Edmonton have the highest monthly real estate fees and are working hard to help you sell or buy your home, staying on top of their game, a doing what it takes to get your home sold including paying for the costs of marketing your property. Keep in mind, REALTORS® do not get paid by the hour, their real estate companies DO NOT pay them for working there. REALTORS® work very hard to earn their commissions and only get paid once your property is SOLD (usually within a few weeks after possession date) and not on the day it is sold!

If you have any questions on real estate commissions in Edmonton or what like an in-home real estate interview with myself, feel free to contact us at 780-237-7074.