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Edmonton House Prices Are Increasing

Maybe it's because Daniel Smith is fighting for us Albertan's or maybe its because the prices of real estate in other provinces are no longer affordable. Either way, people are relocating to Edmonton Alberta and it is increasing our home prices!

Edmonton's winters may be cold, but our summers are awesome with all of our river valleys and cultural festivals. The average house price for a single family detached homes is about $450,000. Single family houses have a vast price range from mature bungalows under $300,000 to multi-million dollar properties.


 

 Thinking of relocating to Edmonton Alberta, feel free to reach out anytime if you have questions.

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Two-Year Ban on Non-Canadians Purchasing Residential Property

According to the REALTORS® Association of Edmonton, as of January 1, 2023 a two-year ban comes into effect for non-canadians wanting to purchase residential property.

This means that non-Canadian citizens or non-permanent residents of Canada can not buy a home or any residential real estate for two years. This includes direct and indirect purchases. Anyone, as a part of the transaction, who helps a non-Canadian buy a house is subject to a fine of up to $10,000.

Read more at https://www.mltaikins.com/real-estate/its-not-just-foreign-buyers-wholl-be-impacted-by-canadas-residential-real-estate-ban/

This purchasing ban will include single family houses, townhouses, duplexes and condominiums. The $10,000 penalty will apply to REALTORS®, any directors, officers, agents, mandataries, senior officials or managers of a corporation or entity.

If you are a canadian resident and are planning on purchasing a home in 2023 or 2024, expect to provide your passport and drivers license for fintrac purposes to your REALTORS® when you are writing an offer - $10,000 is a big fine!

I found another interest article reguarding this bill at https://www.lexology.com with allowed exemptions:

The Act does contain a number of exceptions, described below:

  • Temporary residents who satisfy certain conditions: ... for international students undertaking studies in Canada that are conducive to future permanent residency.
  • foreign nationals working in Canada who have filed Canadian tax returns and continuously worked for three out of the past four years in certain qualified work.

  • Refugees
  • Diplomatic or consular purposes:
  • Non-Canadian individuals with Canadian spouses or common-law partners

I still don't completely  understand the foreign ownership ban taking place January 1, 2023, but will keep you updated as soon as I here more. Let me know your thoughts.

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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.

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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.

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Edmonton is known as the city of festivals. We have lived here for over 30 years and I can honestly tell you - winters are cold! Summers are full of fun!

Our biggest attractions are

West Edmonton Mall located in the Summerlea community. It takes more than a day to walk the mall and to accomadate you, there is the fantasy hotel inside West Edmonton Mall with themed suites from polenisian to space themes. The mall's main attractions are the zipline which crosses through the waterpark, Galaxyland's indoor amusment park and the underground aqaurium.

The Telus World of Science in Westmount is a place of dreams! The Zeidler Dome is the best experience to feel the night sky. Imax experiences are so real, you can feel your chairs move. There are alway new exhibits and events here. Plan to stay for a day or more.

The snow Valley Arial Park between Lansdowne and Brookside has a 15 metre high tower to crawl, climb, swing, and step your way through locally-themed elements up to the rainbow wall, ski-bridge and swinging picnic table.

In the downtown Edmonton area, there is also plenty of places to check out from the Rogers Place Ice District, Royal Alberta Museum, Boulders Rock Climbing Gym and the Art Gallery of Alberta.

The Muttart Conservatory in Cloverdale is one of Canada's largest bontanical gardens. You can enjoy unique themed displays and fabulous seasonal celebrations in the pyramids. Nearby is where the Edmonton Folk Music festivals are held and the freindship bench hiking trail.

Fort Edmonton Park in Brander Gardens has just undergone major upgrades. Here you can learn the story of why people were relocating to Edmonton while taking a ride on the historic street car or riding in a buggy driven by horses.

The Edmonton Valley Zoo and Saito Centre in Laurier Heights is home to more than 350 animals, focused on conservation, and offers fun and education for the whole family.

Learn about the The Royal Canadian Air Force who built the aircraft hangar that houses the museum during the Second World War in the Blatchford Aviation Museum. Explore the evolution of flight in Alberta from bush planes and bombers to jets.

No matter where you choose to relocate, there is something special about every Edmonton community. 

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The real estate absorption rate affects how long your property will be on the market and in return has a major effect on the sold price of your home ? It is also a way to predict future selling prices.


How to calcuate your absorption rate

Find the number of homes currently available for sale in your neighborhood. Then divide that number by the number of homes sold in your community in the last 30 days.

For example... If there are currently 20 houses for sale in Riverbend and there have been 5 house sales in the last 3- days... It means the absorption rate for Riverbend Houses is 4 months. That means there are enough Riverbend houses on the market for the next 4 months. 

Is it a buyers or sellers market?

An absorption rate of 0-4 months is considered a sellers market which means there is not a lot of inventory and prices will rise.

An absorption rate of 4-6 months is considered a balanced market which means supply and demand is pretty even.

An absorption rate of over 6 months is considered a buyers market which tends to decrease house prices a bit due to an over supply.

Currently in Terwillegar - Riverbend Edmonton (December 15th, 2022), there are 80 single family houses on the market and there have been 29 house sales, so the absorption rate is 2.76. It's still considered a sellers market and is one of our best neighborhood to purchase a home.

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Griesbach - North Edmonton

The Griesbach community has an identifiable architectural character that has been established to keep a consistent image throughout the mix of real estate uses. The theme is communicated through Architectural detail, massing, and color palettes that emphasize a combination of Heritage contemporary design with warm tones and accent colors at specific locations. There is an emphasis on stone or masonry finishes is encouraged on selected building elements. Griesbach has dedicated 26% of its land use to green spaces, retention lakes, and natural habitats.

Patricia Lake & Park

This Griesbach park site was created to honor one of Canada’s most accomplished military regiments – The Princess Patricia’s Canadian Light Infantry. It was created in memory of the almost 2,000 soldiers from (PPCLI) who have given their lives in the service of the regiment over the past 100 years.

On May 8th, 1915 the PPCLI (Princess Patricia’s Canadian Light Infantry) was attacked at Frezenberg and Bellewaerde Ridges. By the end of the final German assault, the Patricia’s were reduced from 554 to four officers and 150 men. The Memorial is a replica of the original monument to the Patricia’s which is located near their heroic stand at Bellewaerde. The original monument includes the inscription “Here 8th May 1915, the originals of Princess Patricia’s Canadian Light Infantry commanded by their founder Major A Hamilton Gault held firm and counted not the cost. 

Canada’s first soldiers died in Afghanistan in April 2002 when a “friendly fire “incident killed four and wounded eight members of the PPCLI. The four trees that surround Patricia Park represent not only the four Edmonton soldiers but all those killed and injured in Afghanistan and are a tribute to their sacrifice and courage. 

A time capsule containing regimental artifacts and items of significance is encapsulated in a specifically designed cavity in the Patricia Park Memorial with the intent that it will be retrieved from the memorial and opened on August 10, 2064, on the occasion of the 150th Anniversary of the Regiment. The artifacts represent the first 100 years of the service by the regiment. Also inside are three letters from Pte. Cole Lisowski, Pte. Mark Brushett and Pte. Dylan Renaud, three of the youngest members on active duty with the PPCLI, was given the task and honor of returning to the site 50 years from the unveiling to open the capsule.

The dedication of Patricia Park, in the community of Griesbach, offers Patricia’s and civilian citizens a place to reflect on both the achievements and sacrifices of the PPCLI, with over a thousand names of those Patricias lost because of active duty etched on a wall of honor. “This memorial will pay homage to that same courage and sacrifice of Patricias through the last hundred years and the next hundred years,” said Laurie Hawn, member of parliament representing Edmonton Centre.

View Current Griesbach Homes For Sale

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Closing Delays and How to avoid them

Whether you are buying or selling a property, it’s important to understand that there can be delays in a real estate closing. A closing delay is something you want to avoid. There are several reasons possession may not be possible on the date you have on your purchase agreement. Sometimes upexpected or negleted items occur and nobody wants to be left homeless on their possession date.

REALTORS® are aware of these delays (because we don't get paid until after possession day), we help our clients avoid closing delays for a smooth transaction and a happy buying and selling experience. Below is a list of possible closing delays.

You choose the wrong lawyer

Not all lawyers are familiar with real estate transactions and this can cause delays in the transfer of title. At EdmontonHousesAndHomes, we encourage our clients using real estate lawyers.

Unreal closing dates

Unlike other provinces in Canada, Alberta's land title transfer process begins prior to you meeting with your lawyer. In the province of Alberta, it takes time to process a the title of a property to another person. This time frame will vary according to the market and land titles processing time. As a rule of thumb - a good closing date is 1-2 months after you write your offer to purchase.

Your bank revokes your mortgage

Yes. This does happen. The bank has the right to secure their mortgage and in the event that something changed, such as a job loss or the buyer also purchased a vechicle, changing their debt-ratio, the bank can pull your mortgage. REALTORS® will remind their clients not to make any big purchases until they recieve their house keys.

Real Estate Appraisal Issues

Sometimes (usually in a busy market), the bank did not send out the appraiser prior to telling you your mortgage has been approved. If the property does not appraise out at your offer price or higher, the bank can refuse to forward funds, the seller will need to reduce the price of the property or the buyer must come up with the diffence between the offer price and the appraised value.

Terms or contingiencies of the contract

If you have a walk through term written into your agreement and you find out the terms after the contract have not been fullfilled, this can be considered a breach of contract. These items could be as simple as the seller removing the dog feces in the back yard to more substantial issues such as a builder not finishing the completion or repairs. It is always best to have a walk through clause written into the offer prior to the buyer removing their conditions.

Problems with the title

Edmonton REALTORS® are obligated to pull title when they are writing an offer to ensure the persons selling the property is correct as well as ensuring there is enough equity in the property to be sold. Sometimes, prior to closing, after conditions have been removed, the seller has taken out a second or third mortgage and there is not enough equity to close. If this happens, there is major liablity issues that your lawyer will discuss.

The RPR does not have compliance

In the REALTORS® purchase agreements, there is a cluse reguarding the real property report and compliance which the seller has signed and agreed to. In the event the seller does not have compliance, there is an issue. A common one is when the seller has change the deck or a non-movable shed had been added to the property.

Homeowner insurance is not secure

The buyers lawyer will ask the buyer to bring in the insurance binder. This is basically a peice of paper saying the buyer has insurance on the property. If there is no insurance, the bank can not forward the mortgage funds.

Closing costs

If either the buyer or the seller does not have enough cash to close, there's a problem. Read more on closing costs.

Unclear terms

When writing an offer to purchase, the terms, conditiond, amendments and addendums must be crystal clear to avoid misunderstandings. The interpatation of the buyers lawyer may not be the same as the sellers lawyer. If the written phrase is not cytal clear, have your REALTORS® re-write it in lamens terms.

The buyer changes their mind

During the last Edmonton real estate crash, we seen this happen often due to the crashing real estate prices and buyers did not want to pay the agreed amount when the value of the property had substantially decreased. In our REALTORS® contracts, there are items put in place with the consequnces of such action. To avoid this in a soft market, be reasonable with your negotitaions. - The buyer can walk away.

The seller is unable to vacate on time

Alberta REALTOR® purchase contracts state that the property must be vacant by noon on the day of possession. However, sometimes the seller is still in the property due to circumstance beyond their controll. If this happens, it is a breach of contract. The best thing do is take your lawyers advice, there is some conpensation.

Not working with a qualified REALTOR®

The majority of Edmonton Remax REALTORS® have closed hundreds and hundreds (some have closed thousands) of real estate transactions. Using an experienced REALTOR® can be the differnce between being homeless and a seemless closing.

We pride ourselves on helping our clients with a smooth real estate transaction and a great buying and selling experience. If you or thinking about buying or selling and need experienced Edmonton Remax REALTORS®, email us. We are here to help.

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Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.