|
|
Your satisfaction is my future
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working with a REALTOR
A REALTOR must disclose to you in writing, who exactly they represent in any real estate deal. A REALTOR may represent you as a buyer or a seller; he or she may also represent both buyer and seller in the same transaction. Because all REALTORS are guided by a stringent Code of Ethics and Standards of Business Practice, a REALTOR will always treat you fairly.
As your agent, the REALTOR owes you the duties of utmost care, integrity, confidentiality and loyalty. Make sure you discuss agency with your REALTOR. In most provinces, if a REALTOR is showing you homes, they are automatically deemed to legally be your agent, and owe you all of the associated obligations.
How do I find the Perfect Home?
If you’ve decided to buy a home, start by determining what type of community, or specific neighbourhood, you’re interested in. List your space needs, including:
living space requirements (i.e. how many bedrooms);
what you're bringing with you from your old house;
how close to schools, shopping and other services;
the size of down payment you can afford; and, price range.
It's important to be realistic when you're thinking about a down payment and setting a price range. You don't want to be saddled with something you can't afford. At this stage, it's a good idea to talk things over with a real estate sales professional.
Once you’ve identified the features you want in a home, the search begins. A REALTOR will use various tools to try and find properties that meet your specifications. One of the important search tools will be the local MLS® system. By sitting down at a computer the REALTOR can key in your needs, choice of neighbourhoods and price range and immediately come up with a list of suitable properties available through the MLS® system. Also common are MLS® catalogues, which provide additional information about each property, along with its photograph. Both computer systems and catalogues are updated regularly.
You can also view MLS® listings posted to the national mls.ca web site. It features area maps, photographs of available properties and has links to the listing agent.
What OTHER things should I look for?
When you select a property and decide to visit a house, there are many things to consider. Does it have all the features you wanted? Is the neighbourhood what you expected? Try to picture your favorite furnishings in a room. Remember all of the technical considerations:
what type of wiring does the house have?
what about power outlets? Different appliances use different types.
what type of heating system does it use?
what about the roof and foundation?
what condition are the windows in?
what about the plumbing?
There are other things to look at as well...
Who should do the Home Inspection?
There are other things to look at as well. If you don't have time or don't feel comfortable doing it, home inspection services are available for a reasonable fee. Having a qualified home inspector look at the house is always a good idea. The older the home, the greater the need for professional inspection.
Preparing an Offer
Once you find the house you want to make your home, you can work with a REALTOR to develop an offer. In the offer, you should specify how much you're willing to pay. State when the offer expires, and suggest a closing date for the transaction. You can also propose some conditions on the offer. Some common types of conditions are:
getting a suitable mortgage (include the amount, interest rates and any other figures you feel important);
selling your current home (the seller may continue to look for a buyer, but will give you the right of first refusal);
the seller providing a current survey, or a "real property report," showing the location of the house on the property owned by the seller and that there are no encroachments;
the seller having title to the property (your lawyer will check this out when he or she conducts a title search to see if there are any liens on the property, easements, rights of way or height restrictions);
if there is a septic system, the seller should have a health inspection certificate, stating the system meets local standards;
if you still have any doubts about the home's safety and construction, you may wish to make the purchase conditional on an inspection by a qualified engineer;
any inclusions - basically, what stays and what goes.
Do Ineed to give a Deposit?
You will need to present a deposit along with your offer. An appropriate deposit will show your good faith to the seller. The seller's agent is bound by law to bring all offers to the seller's attention.
After your offer is accepted and all the conditions are met, the offer becomes binding on both sides. If you walk away from the deal at that point, you may lose your deposit. You may also be sued for damages. Therefore make sure you understand and agree with all of the terms of the offer before signing.
What about a Mortgage?
One issue for most buyers is the affordability of the mortgage. A quick way to calculate how much you can afford is to use the gross debt-service formula (GDS). Most financial institutions will require that the Principal, Interest and Taxes (PIT) on your mortgage loan not exceed 30 per cent of your gross income. Increasingly, financial institutions will factor energy costs into the PIT formula, moving the rule of thumb GDS from 30 to 32 per cent.
You can work it out in reverse: multiply the monthly payment on principal, interest and taxes (include any condominium maintenance fees) by 40. So if your monthly payment for these items is $1,000, you'll need a gross annual income of at least $40,000. Discuss your mortgage limit and different types of mortgages with your REALTOR or financial advisor before you seriously begin the search for a home.
Through the mls.ca web site, home buyers can automatically calculate their estimated mortgage payments on listings. Simply find your desired property and click on the mortgage calculator to determine what your estimated monthly mortgage payment is on that specific listing.
Are there any other Expenses?
No matter what type of home or property you’re buying, plan on some extra expenses. In some provinces, you may have to pay a land transfer tax (a sales tax on property).
You may also have to pay:
a mortgage broker's fee:
an appraisal fee;
surveying costs (if the seller couldn't come up with a current survey); and, a high-ratio mortgage insurance premium. an interest adjustment.
Mortgages are normally calculated from the first of each month: if your closing date is the same as the beginning of your mortgage, there will be no adjustment. However, if your closing date is July and you move in on June 15, those last 15 days are the interest adjustment period. Your lender will expect you to cover the cost of the interest during that time.
You'll also have to reimburse the seller for the unused portion of any prepaid property taxes or utility bills. As well, you must also pay any legal fees, and, if applicable, any REALTOR fees. Be prepared to furnish proof to your lender that you have insured your new house as well.
You will need a Lawyer, and here's why:
Before the property can formally change hands, there are still a few things to do. On or before closing day, your lawyer and the seller's lawyer will arrange to transfer title of the property from the seller to you. The mortgage money will be transferred to your lawyer's trust account, and then to the seller, and your lawyer will bill you all additional expenses such as land transfer taxes or outstanding legal fees.
At this time, be sure to check with your lawyer that everything is as stated in the offer-to-purchase. Once you're satisfied and the keys to the front door are in your hands, there's nothing else to say... except welcome home!
|
|
|
If you need help finding your next home, contact Mehdi Tavakoli, at 604-720-4381or E-mail me at mtavakoli@sutton.com .
|
|
| Advantages of Bigger Down Payments |
 | |
|
|
As mentioned above, when you put a 25% down payment on your purchase you can avoid the CMHC premium. More importantly the larger the down payment, the lower the amount of interest you will pay over the life of your mortgage. It is important to note that it may not be wise to stretch yourself to increase your down payment and end up borrowing on credit cards or a line of credit at a higher rate. |
|
Bi-weekly and weekly payments |
| |
|
|
Most mortgages have the option to allow payments to be made on a weekly or bi-weekly basis. This option may be desirable for two reasons. The first is it can save you money as you can expect to pay off your mortgage about 4 years sooner. This can save you dramatically over the life of your mortgage. The other reason why these options are so popular is that if your employer pays you on a weekly or bi-weekly basis, you can simplify your budgeting by making the payment line up with the way you paid. |
|
Short Term Rates vs. Long Term Rates |
| |
|
|
The options for mortgages available can be very confusing for most mortgage shoppers. Terms for mortgages vary between variable and fixed rate, 6-month terms to 10 year terms. Taking a variable or floating rate mortgage can have savings. Typically the shorter the term or guarantee of the rate, the lower the rate will be. This does not always happen, depending on the market place and the economy, but history has shown that short-term rates tend to be lower than long-term rates. The up side of variable rate is the strong potential for interest rate savings. The down side is the fact that you are accepting the interest rate risk without a guarantee. If you are considering a variable rate mortgage you need to look at your own risk tolerance, and your cash flow available to deal with potential increased payment. Considering projections of rates and where we see interest rates heading can also be important in this decision. Make sure you talk to an expert when you are making this decision. |
| Reducing the CMHC fees on your purchase |
| |
|
|
When you require a mortgage for more than 75% of the purchase price of a property, that mortgage must be insured by Canada Mortgage and Housing (CMHC) or GE Mortgage insurance. The premium charged by these company`s decreases as the down payment increases. When you finance your property at 95%, a premium of 3.75% is added to the mortgage. By increasing the down payment to 10% of the purchase price the premium can be reduced to 2.5%. If you can put down 25%, you can avoid any additional insurance fee. Depending on your situation there are ways that you can structure this financing to avoid the CMHC or GE insurance premium. | |
Tips for Selling your place
|
|
|
|
|
20 Tips for Selling Your Home As a homeowner, you can play an important part in the timely sale of your property. When you take the following steps, you'll help your Sutton Sales Associate sell your home faster, at the best possible price. |
|
|
|
|
|
|
1. Make the Most of that First ImpressionA well-manicured lawn, neatly trimmed shrubs and a clutter-free porch welcome prospects. So does a freshly painted - or at least freshly scrubbed - front door. If it's autumn, rake the leaves. If it's winter, shovel the walkways. The fewer obstacles between prospects and the true appeal of your home, the better.
2. Invest a Few Hours for Future DividendsHere's your chance to clean up in real estate. Clean up in the living room, the bathroom, the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor redecoration. Fresh wallpaper adds charm and value to your property. Prospects would rather see how great your home really looks than hear how great it could look, "with a little work."
3. Check Faucets and BulbsDripping water rattles the nerves, discolors sinks and suggests faulty or worn-out plumbing. Burned out bulbs leave prospects in the dark. Don't let little problems detract from what's right with your home.
4. Don't Shut Out a SaleIf cabinets or closet doors stick in your home, you can be sure they will also stick in a prospect's mind. Don't try to explain away sticky situations when you can easily fix them. A little effort on your part can smooth the way toward a closing.
6. Make Room for SpaceRemember, potential buyers are looking for more than just comfortable living space. They're looking for storage space, too. Make sure your attic and basement are clean and free of unnecessary items.
7. Consider Your ClosetsThe better organized a closet, the larger it appears. Now's the time to box up those unwanted clothes and donate them to charity.
8. Make Your Bathrooms SparkleBathrooms sell homes, so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added allure, display your best towels, mats and shower curtains.
9. Create Dream BedroomsWake up prospects to the cozy comforts of your bedrooms. For a spacious look, get rid of excess furniture. Colorful bedspreads and fresh curtains are a must.
10. Open up in the DaytimeLet the sun shine in! Pull back your curtains and drapes so prospects can see how bright and cheery your home is.
11. Lighten up at NightTurn on the excitement by turning on all your lights - both inside and outside - when showing your home in the evening. Lights add color and warmth, and make prospects feel welcome.
12. Avoid Crowd ScenesPotential buyers often feel like intruders when they enter a home filled with people. Rather than giving your house the attention it deserves, they're likely to hurry through. Keep the company present to a minimum.
13. Watch Your PetsDogs and cats are great companions, but not when you're showing your home. Pets have a talent for getting underfoot. So do everybody a favor: Keep Kitty and Spot outside, or at least out of the way.
14. Think VolumeRock-and-roll will never die. But it might kill a real estate transaction. When it's time to show your home, it's time to turn down the stereo or TV.
15. RelaxBe friendly, but don't try to force conversation. Prospects want to view your home with a minimum of distraction.
16. Don't ApologizeNo matter how humble your abode, never apologize for its shortcomings. If a prospect volunteers a derogatory comment about your home's appearance, let your experienced Sutton Associate handle the situation.
17. Keep a Low ProfileNobody knows your home as well as you do. But your realtor knows buyers - what they need and what they want. Your realtor will have an easier time articulating the virtues of your home if you stay in the background.
18. Don't Turn Your Home into a Second-Hand StoreWhen prospects come to view your home, don't distract them with offers to sell those furnishings you no longer need. You may lose the biggest sale of all.
19. Defer to ExperienceWhen prospects want to talk price, terms, or other real estate matters, let them speak to an expert - your realtor.
20. Help Your AgentYour realtor will have an easier time selling your home if showings are scheduled through his or her office. You'll appreciate the results!.
Mehdi Tavakoli / 604-720-4381 / mtavakoli@sutton.com |
|
| |
|
|
|
|