Sunday, November 6, 2016

Protect Yourself During the Home Buying Process

Tips - Help protect yourself while in the home buying process

Consulting experts on real estate and mortgages before you start hunting will help you avoid costly mistakes or losing out on your dream home.

Are you in the middle of a bidding war with buyers, can be stressful and costly. That’s why it’s helpful to have a sales rep to help you every step of the way.

Interesting article on thestar.com By Joseph Richer

Real estate bidding wars move really fast and can be an emotional roller coaster. How can one avoid making a decision that you’ll regret?

This question is asked a lot. In a hot market, buyers often feel like they don’t have the time to consider every step of the process and the same probably goes for sellers.

A couple of months ago, another first-time home buyer got overwhelmed during the process and hit a major snag that cost him his deposit — and his dream home.

Unfortunately, this person didn’t understand what they could afford and there wasn’t enough communication between them and their sales rep about what they were looking for in a home. Ultimately, this buyer could not get financing and the deal fell through.

Key tips about protecting yourself during the buying process.

Hire a real-estate professional who is right for you:

According to the Real Estate Council of Ontario (RECO), one of the things emphasized to consumers is the importance of getting expert help. Shopping around for the right salesperson is a lot like holding job interviews.

Sit down with at least three different sales agents, ask them questions, find out about the services they offer, and double-check their references.

That will put you in a better position to pick the person who best understands your needs, and whose approach aligns with your preferences.

Also, document in writing the services that will be included.

Being in the middle of a bidding war with one or more buyers is stressful and can be costly. That’s why it’s helpful to have a sales rep to help you every step of the way.

Know what you can afford

This buyer who had made a firm offer on a home, on the advice of his sales rep, and waived the financing and home inspection conditions — even though he only had 5 per cent for a down payment.

When the buyer tried to secure financing, the mortgage lender required a 15-per-cent down payment.

Very important for the buyer to seek expert advice. In this case, speaking to a mortgage professional and getting mortgage pre-approval and a firm number would have made it clear what was affordable during the house hunt.

In addition, if you are thinking of raising your offer price, the first thing you should consider is whether you have enough money in your budget to do so.

Keep in mind that the financial institution might be prepared to lend you what you want, based on your financial situation, but they will also want to ensure the home you are buying is worth enough to cover the mortgage.

Understand all costs with home ownership

First, there are the costs that come as part of the transaction:
  1. mortgage insurance
  2. land transfer tax
  3. home inspection
  4. appraisal and legal costs.

There are also the costs to make the home your own, including moving costs and home decor.

And there are recurring costs like:
  1. utilities
  2. home insurance
  3. rental fees for hot water tanks
  4. furnaces and air conditioning
  5. as well as home repairs and ongoing maintenance

See original article on thestar.com By Joseph Richer


Saturday, August 20, 2016

Selling Homes by Auction

Things to know about selling homes by auction

Ever wonder if you should try to sell our home by auction. What should you know about this type of sale?

In a typical transaction done through a real-estate brokerage, Ontario law prohibits one potential buyer from seeing an offer from another potential buyer.

In an auction, the bidding process is open. Potential buyers can submit a bid knowing the amount bid by other potential buyers. Some would argue this makes the process more transparent.

It also means you won’t get the protections that come with working with a registered real estate professional.

Why would a seller choose to sell through an auction?

It may be a faster way of selling your property: You will quickly learn what someone is willing to pay for your property, good or bad.

However, there is also no ability to deal with individual bids once the auction has begun. As soon as that hammer comes down, your property will be sold to the highest bidder, assuming it reaches any reserve bid.

Read full article

Sunday, July 31, 2016

Be A Smart Home Buyer

Buying and selling a home can be challenge, a little overwhelming and daunting.

This video, learn helpful advice and tips that will ensure you are home smart when buying a home.

Trouble viewing video above

Happy cottage hunting....

Home Selling Services

Home-selling services are not all standard

Not all real-estate brokerages deliver exactly the same suite of services, so sellers need to search around for the ideal brokerage to represent them .

You the seller really should understand and are satisfied with the contents of your listing agreement before you sign them, as they're legally binding contracts.

Here is some good advice
see original post

My brother and I both listed our homes recently and he’s getting different services than me from his real-estate salesperson. Aren’t they all standard?

Selling a home for most people is a rare occurrence and can be complicated, so hiring a real-estate salesperson to help you is a good first step to ensuring you have access to expert advice.

When you list your home, you typically sign a seller representation agreement, commonly known as a listing agreement. This agreement sets out the terms and conditions under which real-estate brokerage services are to be performed. It also contains the asking price for the home and any additional fees for the services to be provided, over and above the base commission rate.

All listing agreements have common elements, but there can be significant differences between contracts simply because each home is different and each seller is different. Some of these differences involve the level of service that the brokerage – through its salesperson – will provide to help you sell your home.

There are all kinds of services to consider.

For example, you may decide that the best way to showcase your home is by having a video shot of the interior and posting an aerial photograph of your property. You may also want to have a pre-sale home inspection done to potentially speed up the sale process. 

Your brother may not need a video, but wants his real-estate representative to hold a certain number of open houses over a set period of time — perhaps with specific security precautions — and have his home advertised in specific mediums, such as websites and real-estate publications. 

These are all common marketing services that can be offered to clients and need to be agreed to in the seller representation agreement. Not all brokerages offer the same suite of services, so shopping around is an important step to finding the right brokerage and salesperson to represent you. 

Since all agreements differ, the services you want and need may best be determined by having a conversation with your real-estate salesperson. Discuss how your property, given its unique characteristics, should be marketed and then decide on which marketing or other services you believe will be most effective.

Clarify the fees and costs related to these services and make sure all of the details of who pays for what service are included in the listing agreement before you sign it.

You should also be clear as to what your obligations are under the agreement and what your salesperson expects from you during the selling process.

It’s important to remember that a listing agreement is a legally binding contract between you and the salesperson’s brokerage. 

Therefore, make sure you understand and are happy with the contents of the agreement — including the services outlined in it — before you sign it. 

This is the best way to avoid misunderstandings between you and your salesperson or brokerage later on.

Happy cottage or home hunting...