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Q: Thanks for the insight into the LRT’s effect on Kitchener’s real estate values.
I also have a question, not directly relating to that article. It’s about Tarion Warranty on new homes.
Firstly, my doubt comes from the fact that most new home-owners not necessarily buy ‘everything’ from the builder ex appliances, etc. Now if a home owner buys 3 out of 4 kitchen appliances from the builder, that should technically void the Tarion. So that would mean that almost all the new home-owners are kept under dark by the builders. So if you could possibly explain to me as to what happens on that front, that’d be great.
Secondly, branching off from the same topic, are model homes covered in the Tarion? Because the warranty excludes new homes/properties that are/were being used for any purpose before the actual home owner moved into it.
I would really appreciate your response.
A: I don’t get involved in new home sales very often (once this year) as I always advise my clients not to buy from the builder. The reasons are many
1) Buying a new home is like buying a new car. The price is inflated. If you try to sell it, in 3 or 4 years (or longer if the builder is still building in the neighbourhood) you will certainly lose money.
2) A real estate lawyer friend of mine says, “the Tarion Warranty was written by builders, for builders”. It is basically a sales tool and unless the whole neighbourhood is underwater, useless for new homeowners.
3) Since 2000, the quality of new home construction has steadily and consistently declined.
4) New neighbourhoods are devoid of trees, community and street parking. Neighbourhoods have personality but they take a decade or two to develop.
You’re crazy to buy a new house. I hope I’m clear on that. Bad investment. Bad lifestyle.
Two blog posts you should read:
Open Houses have a long tradition in real estate sales. They are a great chance for anyone interested in perhaps buying your home to have a look at it without having to make any phone calls or other arrangements. But how useful are they in selling houses?
After many years of going through the courts and our organized real estate governing bodies, (the Real Estate Council of Ontario), well-known real estate agent Kelly Da Costa had his real estate license revoked last week.
As a realtor, I know that there are many ways we can go wrong. There is a lot at stake and many pitfalls lie in our path to getting the deal done. Realtors have to be cautious and detail oriented and prudent. We cannot be negligent and we cannot put our own self interests before those of our clients. Kelly Da Costa was found to have breached his professional obligations in exchange for personal gain in contravention of the Real Estate and Business Brokers Act.
And one video you should watch:
In this video, “Two things you should know about appliances”, I discuss why you should either include or exclude appliances in your offer to sell, as opposed to making them negotiable and the value of appliances in real terms.