The list price is simply the value that the seller wants to get, or thinks they can get for the property. An important factor in this is the seller’s level of motivation to find a buyer for the home.

Keep in mind that, whatever the circumstance, the list price can and usually should be bargained and negotiated. After all, when there’s thousands or even tens of thousands of dollars involved, it’s well worth taking a bit of time to negotiate.

It is also important to remember that just because you get a home for less than the list price doesn’t necessarily mean that you’re getting a good deal. Prices can be vastly overinflated in many cases, and it’s important to look at a property’s assessed value, and compare it with other homes before settling on a final sale price.

“Never make an offer you think they will accept,” says Thomas Early, who is president of the National Association of Exclusive Buyer Agents.

Although this might not work in a very competitive buying climate, making a low ball offer, getting rejected, then making a slightly higher offer a few days later can seal the deal in many cases.

Another important principle is not to go too far over your head on a single piece of property. If you can’t get a house for a fair price that is within your spending limit, it is important to know when to bow out of the bidding and consider other options.

Low interest rates, coupled with rising household incomes and a strong economy has caused demand for home ownership — and hence property prices — to climb significantly, especially in the last few years.

“Despite some economic slowdowns and a recession, the average family income increased by 11.5 per cent in real after-inflation terms from 1986 to 2004, leaving households with extra wealth for home purchases,” according to Statistics Canada analysts, Louis-Philippe Verenka and Don Little, who authored the report.

Just 3 out of 10 households rented their homes in 2005, down from 4 out of 10 in 1986.

Regionally speaking, every province by Prince Edward Island and Newfoundland has experienced an overall decline in renters. Alberta, Saskatchewan, and Manitoba have see the highest jump in home purchasing.

The government announced late last week that it was reducing the minimum down payment on an uninsured mortgage from 25% to 20%. This should save homebuyers an average of $2,500 in mortgage insurance premiums on a piece of property worth $300,000.

Existing Bank Act regulations, which have been in place for 40 years, prevent banks from loaning customers more than 75% of a property’s value, unless the buyer has purchased mortgage insurance.

“We see a number of customers scrambling to meet the 25 per cent down payment, in order to avoid paying the insurance premium,” commented Bank of Montreal executive, Cid Palacio. “These changes will allow those home buyers to reduce their down payment and get into their new home faster.”

The change in legislation will affect not only homebuyers, but also existing homeowners due to refinance a mortgage.

Statistics Canada credits high consumer demand, as well as rising construction costs, for the continued increases.

Prices rose in 15 of Canada’s top 21 metropolitan areas for the month of June. Calgary continued to lead the way with growth of 6.9% for the month, followed by Edmonton at 4.7%, and Saskatoon and Regina with 1.6% and 1.2%, respectively.

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“Since we started doing this report in the ’70s, we’ve never seen this kind of price appreciation in one year, ever,” said Royal LePage president and CEO, Phil Soper, when interviewed about the findings.

Century 21’s president, Don Lawby, meanwhile, credited the growth to Alberta’s oil-rich economy, as well as severe housing shortages in the area. “The Alberta housing market is truly reacting to the fact it is by far the best-performing economy in Canada,” he said.

Edmonton showed the second largest appreciation with growth of 39%, while Vancouver prices grew by 20% in anticipation of the 2010 Winter Olympics.

Toronto’s real estate prices grew by a much more subdued 4.4% in the last year, with the average two-story home now costing $474,766 in Canada’s largest city.

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Demand, and thus prices, for recreational properties has spiraled out of site in most markets throughout the country, the report says, fueled by retiring baby boomers and young families alike.

Almost 25% of those surveyed by Royal LePage said that they were ready and willing to pay more for a recreational property than for their home.

“Escalating recreational property prices are evident in the majority of markets across the country and do not show signs of decreasing in the near future,” said Royal LePage CEO, Phil Soper, in a news release.

The average cost of a two-story single family dwelling in Canada now stands at $340,956, according to a recent survey of housing prices, while the average recreational cottage now sells at a whopping $413,694.

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The market for these loans in Canada and the U.S. has decreased only slightly in the past few months, but there are definite differences in the borrowing strategies being used.

For the full story, check out Real Estate A Handy Piggy Bank, a recent article in the San Francisco Chronicle.

The Coalition After Property Tax Reform (CAPTR) has proposed a plan limiting growth in a home’s assessed value to 5% p.a., even if the property’s increase in property value is well above that mark.

“We’re not asking for a rollback, we’re not asking for a tax freeze, and we’re not asking for a cap on tax increases,” said CAPTR founding member, Bob Topp. “What we’re asking for is a five per cent cap on annual assessment increases.”

The group says that such a plan would reduce volatility for homeowners who have recently seen their tax bills skyrocket due to higher assessments, even though tax remains have remained more or less the same. This effectively amounts to the government penalizing people for their homes rising in value.

The CAPTR is planning to survey all of Ontario’s members of provincial parliament on the issue before the next provincial election. The province’s property taxation policies have been under fire for the past several months, and the issue of reforming them will very likely play a role in the next election campaign.

Raleigh, North Carolina broker, Chris Edwards, says that one of the best ways to find a motivated seller is to look at properties that have been on the market longer than average. The simple rule is that the longer a home is on the market, the more motivated the seller will become.

Buying a difficult-to-sell home means that you might have to settle for a few imperfections, but it’s important to look at the bright side, and think about the long-term benefits of owning real estate.