Buyers - what you need to know before buying!

Professional Pricing Analysis - what is a fair price to pay?

image36

Worried about overpaying? Concerned that the purchase of your Dream Home will be thwarted by 'red tape' or that you'll 'miss something'?

That's why we offer Buyer's Services to all of our current and past clients - and to their friends and families!

You work hard everyday managing your world, so let us help take some of the strain off managing a Real Estate transaction. 

It's what we do!

Besides, in most circumstances the costs associated with hiring a real estate professional are paid for by the Seller of the home! (ask us more).

Automatic Notifications - Email / Text

realtor.ca search for homes

We don't want you to miss out on that perfect home in that perfect location! So, once we have evaluated your needs, we can set you up on an automatic notification that can be programed to alert you via text and/or email the moment a home meeting your needs is listed on MLS. This will allow you to 'cut to the front of the line' and be among the first to view a newly listed property! 

Now you can have your nights back, instead of scrolling through hundreds of listings on REALTOR.CA, we will send you only the listings that fit you! 

CONTACT US!

Common Questions for Buyers

image37

Common Questions For Buyers

What price home can I afford?

As  a "rule of thumb" you can afford to buy a home equal in price to twice  your gross annual income. More precisely, the price you can afford to  pay for a home will depend on six factors:

  1. Your income
  2. The amount of cash you have available for the down payment, closing costs and cash reserves required by the lender.
  3. Your outstanding debts
  4. Your credit history
  5. The type of mortgage you select
  6. Current interest rates

Lenders will analyze your income in relation to your projected cost  of the home and outstanding debts. This will determine the size loan you  can borrow. Your housing expense-to-income ratio is determined by  calculating your projected monthly housing expense, which consists of  the principal and interest payment on your loan, property taxes and heat  (utilities). The sum of these costs is referred to as "PITH."

We highly recommend the services of a good mortgage broker! Please ask around to family or friends. We currently work with Billie Aaltonen of Verico Compass...

How and what do I negotiate?

image38

How and what do I negotiate?

Different  sellers price houses very differently. Some deliberately overprice,  others ask for pretty close to what they hope to get and a few (maybe  the cleverest) underprice their houses in the hope that potential buyers  will compete and overbid. A seller's advertised price should be treated  only as a rough estimate of what they would like to receive.

If possible try to learn about the seller's motivation. For example, a  lower price with a quick closing may be more acceptable to someone who  must move due to a job transfer. People going through a divorce or are  eager to move into another home are frequently more receptive to lower  offers.

Some buyers believe in making deliberate low-ball offers. While any  offer can be presented to the seller, a low-ball offer often sours a  prospective sale and discourages the seller from negotiating at all. And  unless the house is extremely overpriced, the offer probably will be  rejected anyway.

Before making an offer, also investigate how much comparable homes  have sold for in the area so that you can determine whether the home is  priced right.

What about my down payment?

image39

What about my down payment, should I put more or less down, if we can afford it?

Buyers  using a small down payment also have a reserve for making unexpected  improvements. It may be more prudent to make a larger down payment and  thereby reduce the amount of debt that must be financed. Once a buyer  puts twenty percent or more as a down payment on their desired home,  they will waive the requirement for mortgage insurance.

Mortgage loan insurance is typically required by lenders when  homebuyers make a down payment of less than 20% of the purchase price.   Mortgage loan insurance protects lenders against mortgage default, and  enables consumers to purchase homes with as little as 5% down payment -  with interest rates comparable to those with a 20% down payment.

To obtain mortgage loan insurance, lenders pay an insurance premium.   Typically, your lender will pass this cost on to you.  The premium  payable is based on a percentage of the home's purchase price that is  financed by a mortgage.  The premium can be paid in a single lump sum or  it can be added to your mortgage and included in your monthly payments.

Mortgage insurance should not be confused with mortgage life  insurance which guarantees that your remaining mortgage at the time of  your death will not be a burden to your estate. 

Ask Billie Broker for any of your Mortgage Needs! ASK

Fixer-Uppers - Are they good or bad?

image40

Fixer-Uppers - Are they good or bad?

Planning  is the key to a successful renovation. To help you plan your renovation  project, your RE/MAX® REALTOR® has information and easy-to-understand  tips that can help you assess your requirements and learn the key  questions before you get started.

Distressed properties or fixer-uppers can be found everywhere. These  properties are poorly maintained and have a lower market value than  other houses in the neighbourhood. It is often recommended that buyers  find the least desirable house in the best neighbourhood. You must  consider if the expenses needed to bring the value of that property to  its full potential market value are within your budget. Most buyers  should avoid extremely run-down houses that need major structural  repairs. Remember the movie "The Money Pit?" These properties should not  be tackled without the professional guidance and assistance of trades  persons who are in the repair business.

REALTOR* MLS* PREC* Disclaimer

The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by CREA and identify real estate professionals who are members of CREA (The Canadian Real Estate Association). We are proud members in good standing with CREA. MLS®, Multiple Listing Service®, and the  associated logos are all registered certification marks owned by CREA  and are used to identify real estate services provided by brokers and  salespersons who are members of CREA. Where it states PREC*, this means Personal Real Estate Corporation. We only use PREC when there is not room to display Personal Real Estate Corporation.