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.

Learn what Edmonton Remax REALTORS® can do for you!

Buying or selling a home is likely the largest and most important transaction you will ever make. That is why so many people trust RE/MAX: the most widely recognized real estate brand in the world. For more than 20 years, RE/MAX has been the leading real estate organization in Canada. By providing the best training, administrative and marketing support, brokers and agents are free to focus on what they do best: sell real estate.

Unrivalled Expertise

Our experienced and knowledgeable agents are the reason RE/MAX is consistently ranked number one in several markets across Canada. We provide our Edmonton RE/MAX REALTORS® with exclusive tools and training to ensure they have the skills they need to effectively guide you through the real estate process. In fact, Canadian RE/MAX agents averaged twice as many transactions as their competitors. (based on 2015 closed transactions source: CREA, RE/MAX) and have more specialized designations than any others, making them the most productive agents in Canada.

Tech Savvy

Edmonton RE/MAX REALTORS® have always been the leaders in the real estate industry, adopting the latest technology and creating innovative marketing programs. RE/MAX was the first brand to expand its reach to the global market through a revolutionary global listing site. With listings from more than 80 countries, displayed in over 40 languages, Edmonton RE/MAX REALTORS® have the opportunity to search and post listings internationally, making international transactions easier than ever.

Community Consciousness

At the heart of RE/MAX is a deep commitment to the communities we operate in. That is why we developed our exclusive Miracle Home Program, which allows Edmonton RE/MAX REALTORS® to directly donate a portion of their home sales toward quality healthcare for children. Edmonton RE/MAX REALTORS® also contribute millions of dollars to the Children Miracle Network through various cause-marketing programs each year.

Our Market Share

• Nobody in the world sells more real estate than RE/MAX.
• RE/MAX agents worldwide sell more real estate than any other brand.
• RE/MAX is the most productive real estate network in the world.
  (With the market share claims above, always use the footnote “As measured by residential transaction sides.”)

Our Real Estate Brand Recognition

• When asked to name a real estate brand, RE/MAX is the name people name first.
  (Source: MMR Strategy Group study of unaided awareness)
• RE/MAX: First on the minds of buyers and sellers.
• Buyers and sellers think of RE/MAX first.
• RE/MAX is who home buyers and sellers think of first.
  (Source: MMR Strategy Group study of unaided awareness among buyers, and sellers)

Why Our RE/MAX Agents are Great

• Every 30 seconds, a RE/MAX agent helps someone find their perfect place.
• With over 7,000 offices worldwide, RE/MAX serves homebuyers and sellers closer to home.
• RE/MAX offers support and services not available at other real estate companies.
• RE/MAX has helped millions of families buy or sell a home.
• Each year, RE/MAX agents help hundreds of thousands of families buy or sell a home.

Edmonton RE/MAX REALTORS® are Full-Time Realtors!

Your home is one of the biggest investments in your life. When you are ready to buy or sell, choose wisely and choose RE/MAX. Contact our Edmonton RE/MAX REALTORS® today.

Does Your Real Property Report Have Compliance?

If you are selling a home and have been told that there is no compliance or you have a non-conforming property, don't panic if you have not accepted an offer to purchase. Your Edmonton Remax REALTOR® can walk you through how to write or amend the purchase agreement to ensure you will not be penalized. However, if you have sold your home and are just finding out, you have no compliance or non-confirmation, talk to your lawyer.

The residential AREA real estate purchase agreements contain a clause that clearly outlines the factors of the real property report....

"The current use of the Land and Buildings complies with the existing municipal land use... buildings and other improvements on the Land are not placed partly or wholly on any easement ... do not encroach on neighbouring lands ... directly on the real property report ...location of Buildings and other improvements on the land complies with all relevant municipal bylaws, regulations or relaxations ... prior to the Completion Day, or the Buildings and other improvements on the Land are non-conforming buildings as that term is defined in the Municipal Government Act (Alberta) ...current use of the Land and Buildings and the location of the Buildings and other improvements on the Land comply with any restrictive covenant..."

Drawbacks of Non-Compliance or Non-Confirmation:

Knowing in advance that there may be an issue with compliance or non-confirmation on your real property report will save time, money and stress, by dealing with the issues in advance. Depending on the nature of the deficiency. A request to the municipality for a certificate may lead to a requirement for substantial alterations, relocation or destruction of certain structures.

The buyer may choose not to go ahead with the purchase until deficiencies are resolved. Under the AREA contract, the warranties provided by the seller only relate to development issues and not building code issues; and while there is some debate among lawyers on this issue, most take the view that any building code deficiencies including the lack of building code permits are the responsibility of the buyer.

Knowing in advanced provides certainty for both buyer and seller at the time of closing regarding compliance with development issues and provides the opportunity for a buyer to have the seller remedy any deficiencies in this regard prior to or in conjunction with the closing.

It can be used to address the validity of permits that may or may not have been pulled to add, replace or alter a deck, garden shed, gazebo or greenhouse. Any concerns or questions regarding issues with your real property report, please contact your real estate lawyer. Note* The town of Morinville no longer requires compliance.

Alberta REALTOR® Fiduciary Duties

Real Estate Agents in the province of Alberta who are in an agency capacity for buyer or seller clients have duties mandated by the legal system called fiduciary duties. The position of the REALTOR® is a fiduciary capacity, acting in the best interests of the client.

• Obedience: Your real estate agent must obey your instructions as long as it is legal and in accordance with your brokerage agreement.
• Loyalty: Your real estate agent must be loyal and keep your best interests ahead of those of any other party, including themselves.
• Disclosure: In the province of Alberta, the law requires real estate agents, whether in an "agency" capacity or not, to disclose material facts to their client. Material facts are those that, if known by the buyer or seller, might have caused them to change their purchase or sale actions. In a signed agency agreement, your real estate agent must disclose more than the material facts. They must disclose all known or suspected information regarding the purchase of the property.
• Confidentiality: A real estate agents fiduciary duty of confidentiality means that nothing learned about you can be disclosed including your business, financial, personal affairs or motivations. This confidentiality fiduciary duty must be maintained for eternity.
• Accounting: Your real estate agent is accountable for all documents and funds in the transaction. Accurate reporting of the whereabouts of all monies pertaining to the transaction and the ultimate disposition. All documents are to be kept for at least six years.
• Reasonable Care: The words "reasonable care" are only finally fully defined in many cases by a judge or jury when it's too late to change your actions. Most Edmonton Real Estate Agents, as a rule of thumb, go by the ethics code "What we know, you know" when acting in an agency relationship.

Whether you work with a REALTOR® in Edmonton under a "customer status" or a "client status with a buyer brokerage agreement", before signing any paperwork including writing an offer, it is a regulatory requirement to present and discuss our Consumer Relationship Guide with you which includes the real estate agency relationship you have chosen to work under.

Why You Should Always Pull a Land (Property) Title Search

Basic information on a property title will include:

• The current owners' name: In the event of an estate sale, probate may or may not have been completed and your real estate agent will ensure the person selling the property does have power of attorney. In the event, there is only one person on the title in a marriage, a dower consent will also be needed to complete the sale.
• The Legal description: The municipal or mailing address is different from the legal description and includes a block, lot and Plan number.
• The amount of the last mortgage, any second or third mortgages or the original purchase amount at the time of purchase or there may be a nominal fee.

Other things which can be revealed on a property title search may include:

• Outstanding or owing property taxes, special assessments, delinquent condominium fees which have not been paid by the seller.
• Outstanding creditors including other financial institutions and businesses for things like unpaid vehicle loans, furniture stores, construction loans, personal loans, etc
• A lis pendens, which is normally added by a lawyer during divorce procedures and "freezes" the transfer of a property until all parties are satisfied.
• Easements and Liens from a third party, such as the municipality, utility company or Environmental liens, who may have rights to use part of your property.
• Covenants are restrictions on the land that can limit what can be built on it, where it can be built and from what materials it may be built. Breaching a covenant can have serious consequences so it is necessary to be aware of any covenants on your property.

It is important to pull the land title certifictae prior to writing an offer. If you wait until you go in to sign with your lawyer, it can cause closing delays.

What is a CMA & How to Use it

Edmonton real estate agents can provide comparative market analysis, also known as a CMA, for any property including properties subject to divorce, civil enforcement, foreclosures, estate sales, city tax purposes, etc. It takes time for real estate agents to complete accurate home evaluations. Unless you have plenty of experience in buying and selling real estate, online home evaluations may be completely misleading and should never be used as a realistic asking price.

Seller Comparative Market Analysis

When working with sellers, a comparative market analysis is used to determine a realistic and accurate asking price. A Seller CMA is based on comparable properties which are currently active (homes for sale), recently sold homes (usually within the last six months), expired (homes that did not sell for various reasons) and the history of these homes. Other factors will include the current market, supply and demand, condition of the property, location, community absorption rate and many other factors. Experienced, professional agents will take the time to go through all of this data with you, together with determining a true asking price for your Edmonton Home.

Buyer Comparative Market Analysis

When working with buyers, a comparative market analysis is similar to a bank appraisal and is used to write a reasonable offer to purchase. A buyers CMA is based on both current homes for sale and recently sold home price in Edmonton taking into consideration all relevant factors including the condition, size and location. For new builds, this process is a bit different and is based more on the cost to build, economic factors, building quality, and the reputation of the builder.

Free Comparative Market Analysis

If you are thinking about selling your home or if your home did not sell due to other factors, feel free to contact us for a professional no-obligation Edmonton home evaluation. We also service Morinville, Bon Accord, Gibbons, St. Albert, Spruce Grove, Beaumont and Devon. Our Edmonton Houses and Homes Agents will take the time to help, educate and inform you on all real estate aspects of your property to determine the right value for your home, ensuring you receive the highest possible price.

Should I get title insurance in place of a the real property report?

If possible, it is best to have a current real property report with compliance when buying or selling a home to ensure all property buildings are within the municipality guidelines. If an RPR is not an option, title insurance is a good substitute.

Title insurance without a real property report and compliance is acceptable to most major mortgage lenders and will often provide coverage for the lender for known defects. Unlike other insurance products, there is only one premium paid at the time of closing which provides coverage to the owner throughout their ownership of the property. It also offers a wide range of protection for issues that are not covered by an RPR and compliance.

Title Insurance Benefits include

• Intervening registrations – Anything registered on the title between the time the lawyer submits to the Land Titles Office and the time of actual registration.
• Unknown Liens, encumbrances, tax arrears or defects in the title to a property.
• Unknown special assessments on condos that were implemented prior to closing.
• If an RPR or compliance is not obtained, it covers any defects that would have been revealed by an accurate up-to-date RPR and compliance.
• The forced removal of an existing structure with the exception of a boundary wall or fence where there is only limited coverage
• Forced compliance with work orders or deficiencies on an existing building permit.
• Loss of priority due to matters such as construction liens, agreements on a title, and other mortgages.
• Another party claims an interest in the property.
• Protection against title defects or encumbrances that were unknown or undiscovered at the time of closing.
• Protection against identity theft, mortgage fraud, and fraud against the title.
• Cost savings. Typically, the cost for title insurance is far less than the cost of an RPR and compliance and is available on short notice

Drawbacks of Title Insurance

• It is an insurance product. This means when an issue arises, it may not be covered by the policy and if there is coverage the insurer can decide the method used to solve the issue which may not be the preferred choice of the insured party.
• There is a lack of disclosure and certainty, especially for the buyer, at the time of closing. If an issue is discovered later, it is more difficult to pursue the seller for a fix after closing.
• There is no coverage for known defects, except for some coverage for the lender only.
• There must be some form of enforcement or government action to trigger coverage in most cases. For example, the previous owner did renovations that do not meet the requirements of the building permit or development permit. The title insurance will only pay for the cost to fix these deficiencies if there is some form of enforcement and not simply due to the deficiencies.
• It does not guarantee that all structures will remain in the current state. For example, if the municipality mandates the alteration or destruction of a certain structure, the title insurance company may pay for the cost of appealing that decision however they cannot guarantee a favourable result.
• The coverage of title insurance is for the buyer only (not the seller).
• If a buyer or their lawyer purchases a lender only policy that is sufficient to close the deal however the buyer still has no title insurance protection.
• There is no specific protection or coverage for the seller. If a claim is made and the title insurance company determines it is the seller who created the deficiency, the title insurance company can pursue the seller for recovery of the costs they have paid.
• In most instances, title insurance only defers the need to deal with a particular issue. It does not solve it. The issues will still be there when the property is resold.
• Title insurance cannot be passed onto a new owner. Every new owner must purchase their own policy.

For more information on real property reports and the effects on the resale of your residential dwellings and a free Edmonton Home Evaluation,  contact one of Remax Elite Realtors.

Does Your Bank Require an Appraisal?

Appraisals are an important part of buying and selling homes in Edmonton. Real estate appraisals establish Edmonton sold properties market value prices. Banks and financial institutions require property appraisals when buyers require a mortgage on their new homes as security and provide financial institutions with a cost-effective assurance of the properties value for lending purposes. 

Appraisals are detailed reports compiled by licensed real estate appraisers. Don't confuse a comparative market analysis, or CMA, with a real estate appraisal. A CMA is a sales report based on data entered into the multiple listing service, or MLS. Real estate agents use CMAs to help their clients determine realistic asking and offering prices.

An appraisal is also not the same thing as a property inspection. Home inspectors test appliances and outlets, check the plumbing and electrical, confirm heating and cooling system are in working order, use inspection tools to look for any moisture issues, missing insulation, etc. Such information is helpful for the buyer to know before moving in.

If your real estate appraisal comes in low, the bank may not lend you the money you need to satisfy your finance condition. You may need to come up with the difference in cash or re-negotiate the sale price of the property.