Divorcing couples often end up selling their house. Mortgage Mike Schroeder tells us that there are programs in place to HELP divorcing couples, so that one of them can hang on to the home.
Interesting call with Vancouver agent Tam Barclay about the state of the real estate market in that city.
Also check https://boknows.homes/divorce for more tips.
Cert. Luxury Home Marketing Specialist
Accredited Buyer Representative
Ep151 Feb 25
Bo Kauffmann - REALTOR: [00:00:00] Welcome to Winnipeg's real estate podcast, episode one 51 for February 25th, 2021. Today, we're going to have a phone call with mortgage Mike, about options for divorcing couples and how to keep one of them in the house if they want to. And we're going to have a phone call with Vancouver agent 10 Barkley, but how crazy their market is very interesting staff today on Winnipeg.
[00:00:22] So real estate coming up.
[00:00:28] You're listening to the bone knows real estate podcast tips and advice for home buyers, sellers, and owners with award winning Remax agent Kaufman.
[00:00:43] Hello everybody. It's Bo Kaufman Remax performance Realty, residential real estate specialists. And let's get right into it today. People sell houses for a variety of reasons. Most of the reasons are happy ones. Most of the times, your family's growing. You want to buy a bigger house, you got a promotion, you can afford a bigger house, that kind of thing, or the other way you're downsizing.
[00:01:02] Your kids have moved out and you're ready to give up house ownership and maybe move into a condo. But sometimes the reasons aren't happy ones such as in the case of it, of course. And quite often couples end up selling the house and each having to go out and buy another house. But there are other options as I was just talking to , my buddy mortgage Mike a couple of days ago, and he was mentioning that there's actually programs out there that help one of the parties keep the house and buy the other party out.
[00:01:31] So let's give them a call and see what that's all about.
[00:01:37] Good afternoon. Hey Mike, it's Bole Kaufman calling. How are you? Hey , good. Hi. I was just telling the listeners that there are options for people that are going through a divorce on how to deal with the house, the communal house, , options, other than having to sell it. And because you, you put the bug in my ear.
[00:01:56] So what can you tell me about that? Sure. So
[00:01:58] Mike Schroeder - Mortgage Architects: [00:01:58] one thing couples often tells me when they're going through divorce is that they don't want to sell the house because that's the whole neck children are living in that is near where their schools are. They don't want to disrupt their lives, but they don't think they can keep the house.
[00:02:11] They actually can't. In fact, there's a special program in place that
[00:02:14] Bo Kauffmann - REALTOR: [00:02:14] allows them to do that. Okay. , walk us through the steps. What's the first thing they have to do.
[00:02:19] Mike Schroeder - Mortgage Architects: [00:02:19] So you have to have a separation agreement in place already. Who's actually going to be living in their house who is buying a, who? You also have to spell out who owes what part of what marital debt.
[00:02:30] Right? So if you have a thousand with a credit card, who's paying out child support, spousal support, all that has to be stored out with a lawyer in advance. Okay. But the key advantages is that usually when you refinance a house, you can only pull out. 80% of the home value and equity. So if you have a $300,000 home, you can only pull out 80% of that.
[00:02:50] Meaning you're leaving equity in there. If you need that money to pay off to the spouse, you can access it right with this program, you can actually access 95% of the equity in your home. So it allows one partner to stay in the marital home, maintain the civil in their lives. Pay with your other partner who can now go shopping for a new house and it makes the least bad option of a potentially
[00:03:12] Bo Kauffmann - REALTOR: [00:03:12] bad situation.
[00:03:13] Right? That's awesome news. So the person that's staying in the house still has to qualify for the mortgage. Are they still standard checks or are they relaxed? A little bit.
[00:03:25] Mike Schroeder - Mortgage Architects: [00:03:25] So it is a standard policies before in terms of income, credit, down payment. And that is one of the key reasons why you have to have a separation agreement spelled out with your lawyer and Vance.
[00:03:35] Is there child support? Is there a spousal support? And so talking to a mortgage broker while you're talking to a lawyer can be a good idea to make sure the numbers are assessed so you can actually qualify for mortgage afterwards. So we can actually offer consulting to you for what numbers do you have to get for child or spousal support to qualify for mortgage afterwards.
[00:03:54] Bo Kauffmann - REALTOR: [00:03:54] Interesting. So you're part of the process then for sure, when people unfortunately have to go through a divorce and we know that 50% of marriages end in divorce, unfortunately, but, uh, you can be part of the solution at that point.
[00:04:07] Mike Schroeder - Mortgage Architects: [00:04:07] Exactly. So think of me as an independent consultant that can show you the numbers you need.
[00:04:11] So both parties leave making the best of a bad situation. That's what we're here for as mortgage brokers, and then you would get to stay in the home and that's, what's important to them.
[00:04:19] Bo Kauffmann - REALTOR: [00:04:19] All right, we're going to cut it off here, but you told me that there's , more to this topic that maybe we're going to talk about next week.
[00:04:25] We want to kind of set that up right now.
[00:04:27] Mike Schroeder - Mortgage Architects: [00:04:27] So we all, all, we also may have options to pay us another marital debt, uh, and, uh, we can do a few more things with it as well. So these are conversations we have for next time.
[00:04:35] Bo Kauffmann - REALTOR: [00:04:35] All right. Excellent. I'll give you a show next week. Thanks Mike. Sounds good. Have a nice day.
[00:04:39] You too. So what we learned here is that there are options. If you are getting a divorce, there are options for one of you perhaps to stay in the house, make it a little easier on the children. Uh, so they don't have to find two new places, , and consider making a mortgage broker or a mortgage specialist part of your team when you're getting a divorce.
[00:04:58], hopefully it's amicable because that will save you a lot of money in the end. In fact, I wrote an article about how you can save money by keeping things amicable as much as possible. And that article is available on my blog. Just go to Bono's dot Holmes slash divorce. Up next. We're going to phone Tam Barkley, , an agent in North at the North shore in Vancouver.
[00:05:20] And, uh, see what the market's all about. So a couple of days ago, I'm an agent out of Vancouver, reached out to me to be on the podcast and her name is Tam Barkley. And as you're going to hear from the accent, she is a, , a Londoner who moved to Canada about 10 years ago. And she was actually an agent in , London, England.
[00:05:41] So I want to take this opportunity to find out what the differences are, because I have heard that there's quite a difference between real estate in England or even in Europe, in general, but especially in England when compared to how we do things here. So I wanted to take the opportunity to talk to her.
[00:05:56] And at the same time, talk about the Vancouver market. It's I think you're going to find this very interesting. Here we go. So, let me ask you this. I've got a, , you have a unique insight into this. You were an agent in London and now you've been here for 10 years. What are the biggest differences between a London?
[00:06:13] I'm not talking about a letting agent, but a selling era listing or a buyer's agent. What's the big differences in real estate between them?
[00:06:19] Tam Barclay - Vancouver Agent: [00:06:19] Well, what happens is it with the letting agent? Is that you, when you want to sell a property, you take it to a. A brokerage and that brokerage sells it and acts for the buyer and seller.
[00:06:31] So you don't have a person that works you're on both sides and what is very frustrating in the UK because I've sold my property. And what I found difficult was that there was no commitment from, , from a buyer. So you. Agree a price and people can dump you because they tell each other the price you don't go in and bid.
[00:06:53], I can go into dancy, right? I want to pay eight, five, eight, and somebody will say, right, I'm going to pay eight, six, eight. And we all know what each other offering. So it's
[00:07:01] Bo Kauffmann - REALTOR: [00:07:01] almost like an auction, whatever. Yeah. But
[00:07:04] Tam Barclay - Vancouver Agent: [00:07:04] when you agree a price with a buyer, you then say to them, you need to take it off the market.
[00:07:09] We've got an accepted offer, but the contracts will take a good couple of months to do it. And there's no deposit. So they could remove your property. You agree to do this. And three months later they can pull out and you've got nothing to go. Why is there
[00:07:24] Bo Kauffmann - REALTOR: [00:07:24] no deposit?
[00:07:25] Tam Barclay - Vancouver Agent: [00:07:25] Cause they don't do it deposits like that is a commitment.
[00:07:28] So you can pull out a week, a day before you're about to complete, Oh my God.
[00:07:33] Bo Kauffmann - REALTOR: [00:07:33] Yes. It's really stressful. That seems really backwards. And did you pain? It's very stressful. No kidding. Would you say that your bro, like if let's say you're the home seller and you call this brokerage and they're selling it for you, they act for both the buyer and the seller?
[00:07:48] Yes. Okay. So do you even have buyer's agents out there? Yep.
[00:07:53] Tam Barclay - Vancouver Agent: [00:07:53] Yep. There's no bias. And your listing is with that brokerage. So the only they can sort of sell it really. You can't see, you won't see it.
[00:08:02] Bo Kauffmann - REALTOR: [00:08:02] No cooperation. There's no MLS there's
[00:08:04] Tam Barclay - Vancouver Agent: [00:08:04] Oh, very different. , in the way that they do it. , and I couldn't believe how quickly you could buy property here.
[00:08:10] I was very shocked. , I remember doing a deal with a chap and I was bidding on something and
[00:08:16] Bo Kauffmann - REALTOR: [00:08:16] I thought this is in
[00:08:17] Tam Barclay - Vancouver Agent: [00:08:17] Vancouver. I had only met the chef on Monday. We went out to my Tuesday, we found something and we offered her on stay. Right. And so, , I think he was a cash buyer and I knew I wasn't going to be the highest price, but I wanted to be the fastest, I , knew he wanted keys like ASAP.
[00:08:35] So rang the notary and I said, look, how fast can I do a deal? And she said, you can, if it's a cash buy, you can actually close on Friday and pick up the keys on Saturday. I know you fell off my chair. And so I said, okay. So I wrote the offer. There was about six offers and the realtor called me and said, you're not the highest, but we're going to go with you because you're fast is right.
[00:08:54] And we got an accepted offer on Wednesday. We closed on Friday and I shouldn't gave him the keys on Saturday and it took me nearly three, four months to buy my property in the UK. And yet here I did it in three days.
[00:09:07] Bo Kauffmann - REALTOR: [00:09:07] Wow. What do you like better?
[00:09:10] Tam Barclay - Vancouver Agent: [00:09:10] I'm very quick on my feet by the speed.
[00:09:14] Bo Kauffmann - REALTOR: [00:09:14] Yeah, no kidding.
[00:09:15] Yeah. That's, that's probably the fastest I ever heard. So, , usually that doesn't cause, well, it's, it helps that your bio is a cash buyer. You didn't have to wait for bank mortgages to come through and all that kind of stuff. So. Nope.
[00:09:26] Tam Barclay - Vancouver Agent: [00:09:26] That's awesome. That's awesome.
[00:09:30] Bo Kauffmann - REALTOR: [00:09:30] Okay. So you said you have to offer, like you're working for a brokerage has two office , North shore and downtown.
[00:09:35] Tam Barclay - Vancouver Agent: [00:09:35] Yes. They have one in East Vancouver, just on main street, just out, just on the outside of the downtown. And they've just opened a new office in the North shore, in, in Lynn Valley mall.
[00:09:46] Bo Kauffmann - REALTOR: [00:09:46] Okay. So pretend cause it's, it's a real thing. Pretend I don't know anything about Vancouver. I've never been there. What's the North shore.
[00:09:53] What's the market there? Like, is it luxury homes or is it.
[00:09:57]Tam Barclay - Vancouver Agent: [00:09:57] , it is, luxury is definitely a premium, um, market in the North shore. Um, and it's just got such a lovely lifestyle and environment, very safe, uh, very children friendly, beautiful trails. You can ski. There's got three ski Hills. It's a huge draw to people.
[00:10:14] And what's funny is if a lot of, um, I've noticed a lot of children that grew up on the North shore tend to move away and then come back and buy on the North. Sure. Yeah. Um, it's it's yeah, it's always been a premium market and the houses. I mean, I have a story for you a happened about two weeks ago in my neighborhood.
[00:10:34] So I'm in a neighborhood called COVID hall and, um, Actually one of my clients did a pre-inspection the listing came on, it was an old house we're talking needed work. The pre-inspection setting consider. This is
[00:10:48] Bo Kauffmann - REALTOR: [00:10:48] always interesting to me. What do you consider old?
[00:10:51] Tam Barclay - Vancouver Agent: [00:10:51] It was an, this one was a, , this one was a 1922.
[00:10:56] Bo Kauffmann - REALTOR: [00:10:56] I agree. Yeah, we have those too. Sure.
[00:10:59]Tam Barclay - Vancouver Agent: [00:10:59] , it had needed probably about a hundred grand's worth on the outside. And the whole place needed gutting in. So you're looking at about two 50 here to do a cold gut and my husband's a builder, so I kind of approximate prices. Right. And, , they listed at one, four and really old houses, you know, maybe 1950s,
[00:11:20] Bo Kauffmann - REALTOR: [00:11:20] no, you're talking 1.4 million.
[00:11:28] Tam Barclay - Vancouver Agent: [00:11:28] I had 10 pre-inspections, 31 offers. There must have had a lot of homework to do, and it went for 1.8. Wow. And really you can buy at 1.8 house, at least it's a little bit more renovated and put together. I mean, they need to spend a good load of money to bring it up to par. Um, I was shocked myself.
[00:11:51] Bo Kauffmann - REALTOR: [00:11:51] It was it, , was it the location that sold it or just the character of it?
[00:11:56]Tam Barclay - Vancouver Agent: [00:11:56] , it was a nice lot. So it was a flat lot with a view, uh, close to a school. Um, so it was a nice lot, yeah. Location,
[00:12:05] Bo Kauffmann - REALTOR: [00:12:05] location. , what's that, what's an average home , in that North shore area. Did you happen to know what the average sale is?
[00:12:13]Tam Barclay - Vancouver Agent: [00:12:13] , I think we're about one, five, 1.585. Is this bridge point , for a home
[00:12:19] Bo Kauffmann - REALTOR: [00:12:19] here?
[00:12:19] What about your other location? More towards central downtown
[00:12:23] Tam Barclay - Vancouver Agent: [00:12:23] condos. And so you're just looking at the TA detached you're yeah, you're looking at a similar price point, really 1.6, 1.5 to 1.6, really? In the day in a downtown condos it's 85 or something like that.
[00:12:36] Bo Kauffmann - REALTOR: [00:12:36] Wow. Okay. Yeah, we don't have numbers like that at all, so.
[00:12:40] Okay. So you had 31 offers for that house?
[00:12:43] Tam Barclay - Vancouver Agent: [00:12:43] Sure. There's a real lack of properties. That's the problem. There's not enough stock coming on. , and because there's not enough stock, people don't want to move instead of listing.
[00:12:52] Bo Kauffmann - REALTOR: [00:12:52] No, I know it's , yeah. We're seeing exactly the same thing. So last year, this time for Winnipeg numbers, our average at this time of year, mid February is about 1100 houses on the market in Winnipeg.
[00:13:03] Okay. Not the surrounding areas in Winnipeg, 1100 detached houses. , this, this, , week we have 500, so it's a much, it's less than half. , and like you say, I've got, , three or four buyers. That need to find something before they put theirs on the market. So it's kind of , you know, somebody has to take the first step.
[00:13:22] And I think once this cold smell drops, it'll start coming. We've had last year. It was a really bizarre near the end of the year. People bidding on everything. , that came up. If it was straight and level, even if it needed a ton of work, it was getting multiple offers. I think that's the year we're going to have again this
[00:13:39] Tam Barclay - Vancouver Agent: [00:13:39] year.
[00:13:39] Yeah. It's hard. I'm working with a lot of buyers and, , yeah, I mean, I, I can act very quickly, but obviously when you're competing with so many people and you know, , it's difficult because they're looking at a price point, but if it exceeds so much on that price point, it's, you're already. You know, pushing the lot of the limits with your clients to try and get them into that price point that they really want in the era they want.
[00:14:01] So , if they're now bidding 150 to 180 over asking in some of the detached homes that are going then knowing now having to look at something like at 1.2 and they're looking at 1.4,
[00:14:12] Bo Kauffmann - REALTOR: [00:14:12] right? Yeah, exactly. No preaching to the choir, just lower numbers here, but it's the same, it's the same process.
[00:14:22] Well, let's, I really hope you've enjoyed this information. I really liked making phone calls to other agents in other cities, especially in this case where Tom had information on what business was like in London, England. So I thought I found it interesting. I hope you did too. Come back next, , episode one 52, where we're going to continue our discussion with Mike Schroeder about, , different avenues and different things that divorcing couples can do to save money until next time, this has been Bo Hoffman, Remax performance Realty.
[00:14:50] If you're looking to buy or sell a house or a condo in Winnipeg, give me a shout at two Oh four triple three, two two zero two. Till next time. Bye. Bye. Are you thinking of selling your Winnipeg house or condo work with the listing agent who goes beyond the MLS Bo Kaufman of Remax performance has a marketing plan.
[00:15:09] That is second to none. Book your free marketing planning evaluation today. Beau knows real estate.
[00:15:20] you've been listening to Boak Hoffman of Remax performance Realty. Are you thinking of buying or selling a house or a condo in Winnipeg called Bo at (204) 333-2202. Remember Bo Knows Real Estate.