Let the Showings Begin!

Shopping for a home can be both exciting and exhausting but doing some preparation before you hit the street to look at homes will help tremendously.

Scheduled Showings

It’s time to get out and see some of the houses you’ve been looking at in person. We will compile a list of the properties you’ve found, as well as options we’ve found of similar properties on the local Multiples Listing Service (MLS).

Here are some great tips to keep in mind when you’re viewing properties in person:

• Don’t try to schedule all the properties you want to view into one day

• Don’t be put off by interior decoration - they can and will change

• Bring a notebook, pen, camera etc. with you as you search

• Keep a folder with flyers or print-outs on properties that you’ve viewed

• Don’t hesitate to ask questions

Questions About the Property

When you find a home you really like, there are some probing questions you might want to ask. Remember, a professional home inspection will be neccessary to completly answer most of these questions.

General

1. When was the home built?

2. How many owners has it had?

3. How does the asking price compare to other houses in the neighbourhood?

4. What did the property sell for when the current owner purchased it?

5. What are the annual property taxes? Will the taxes increase with the transfer of deed?

6. Is there a builder’s warranty on the property? What are the details of the warranty?

7. Will there be additional structures built around the property that could distort the view?

Outside

1. What is the level of ground maintenance that will be required?

2. Are there any structural anomalies or problems with the outside area of the property?

Inside

1. Is there adequate insulation?

2. What improvements/additions has the homeowner made to the property since purchase?

3. What appliances is the seller offering in the sale?

Major Systems

1. What is the age and condition of each major system in the home (plumbing, electrical, heating and cooling)?

2. What type of fuel is the home heated with?

3. What are the average monthly utility costs? What are the winter and summer highs and lows

When it comes to listing your home, there’s no single set of black and white rules regarding potential property improvements that apply to every property and every seller. Any upgrade or changes you make should only be considered if the change is likely to have an appreciable effect on the market value of your property in the minds of most buyers.

Below are some common suggestions on Do’s and Don’ts on property improvements for your listing:

The Do’s

Painting - A fresh coat of a neutral-toned paint could make the sale easier. Let’s face it - we all like things looking fresh.

Minor kitchen issues - Things like plumbing leaks should be fixed, and small updates like swapping out light fixtures can make a big difference. You might even consider sanding, staining or painting worn-looking cabinets. Replacing old cabinet hardware is a low-cost improvement that makes a big difference in appearance.

Floors - From fixing scratched wood floors, to replacing cracked tile, to cleaning dirty carpet, a little money spent on sprucing up floors can be well worth the investment.

Don't forget outside painting - Fences, door frames and other trim around the house, when taken care of just a quick and easy fix to keep the outside of yuor house looking fresh and crisp.

The Don’ts

Major kitchen upgrades - Unless there are major structural issues, most new buyers would prefer to do something to their own taste.

New gardens or ornamental landscaping - It’s always a good idea to spruce up your outdoor space and make sure everything is orderly, but don’t waste your time adding anything new. If the potential buyer is not horticulturally inclined, new plants and flowers won’t add to the offering price. The same can be said for expensive fences and stone walls - they look nice, but buyers don’t pay up for them.

Don't go too bold with trends - they might not be to a lot of peoples taste, especially something that will cost a lot of money for people to change.

2 other things you should keep in mind when you’re selling your property!

Stay neutral in style:

No one wants to rip out home improvements that are obviously recent but don’t meet their personal tastes. Any changes you make should play to the largest possible audience.

Consider your neighbours:

Keep in mind that your property is going to be judged directly to other comparable homes in your area. Take a look at homes near you that are listed around the same price as your property whenever you’re considering making changes to your home.

Financing - How much home can you buy?

Step 1: Get pre-approved

Lenders and financial experts recommend that your monthly debts should be no more than 36% of your monthly income. If you have additional outstanding debts such as student loans, credit cards or vehicles, you will need to factor in those monthly payments into your total monthly debt payments. 

5 Reasons to be Pre-Qualified

• You won’t waste your time considering a home that you can’t afford

• You will know in advance what your payments will be

• You can select the best loan package without being under pressure. There are many options in today's market

• Being pre-qualified will make your offer more competitive, and sellers will view it more seriously

Step 2: Gather documents/Take a look at your assets and monthly expenses

Your credit history is one of the principal measures used by alender to determine your interest rate. The better your credit, the better lending terms your bank or lending institution will be able to offer you. A higher interest rate translates into  a higher monthly mortgage payment. 

What not to do

If at all possible, you should avoid making a major purchase or changing your job if you’re seriously considering buying a home in the next few months. This may negatively affect your credit score.

Step 3: Talk to a qualified lender

We offer mortgage service here in our office through Richelle Rogers, who is a licensed mortgage broker through The Mortgage Group. But it’s entirely your choice who you want to work with.

Step 4: Know Your Rate - And Your Terms

When you start shopping for a loan, you’ll start looking at interest rates. The interest rates, terms and fees for a mortgage will be based on your qualifications as a borrower and on the current lending market. Keep in mind though that finding the right loan is not just about finding the lowest interest rate possible. Mortgage institutions offer loans of varying terms - typically 30, 20, or 15 years. Shorter term loans can save you thousands of dollars over the life of your loan if you can afford a higher monthly payment.

Step 5: Know Your Down Payment and Private Mortgage Insurance

The largest upfront cost in purchasing a home is the down payment. Most traditional lenders expect borrowers to put at least 20% of a loans total amount down. Borrowers who are unable to do so are required to purchase Private Mortgage Insurance (PMI). This insurance protects the lender in case of default by the borrower. Be sure to get a clear indication of the down payment percentage required by your lender. You will also want to know what kind of documentation your lender requires to verify that you have funds for the down payment.

The Team here at Realty Executives Gateway is committed to helping buyers through the process of purchasing a home. Whether it’s your first time buying or your fifth, there are always some things you should and should not do. With that, here are 10 mistakes buyers make…

1. Making an offer on a home without being pre-qualified. Being pre-qualified will make your life easier. You will know exactly how much you can afford, and therefore what houses to view.

2. Not having a Home Inspection. A qualified home inspector will detect issues that you may have overlooked. Don’t try and save money now that can cost you much more in the future.

3. Limiting your search to open houses, ads, or the internet. Limiting your search allows you to view only a small percentage of the homes that are for sale. A realtor has up-to-date information that is unavailable to the public and is the best resource to help you find the home you want.

4. Choosing a Real Estate agent who is not full time and committed to forming a strong business relationship with you. Choosing the right Realtor is crucial. You need someone who is dedicated to serving your needs- before, during and after the sale.

5. Thinking there is only one perfect house out there. Buying a home is a process of elimination. New properties come on the market everyday, so be open to all possibilities.

6. Not considering long term needs. It is important to think ahead. How long are you planning to stay in this home? Will this home suit you in 3-5 years?

7. Not examining insurance issues. Purchase adequate insurance. Seek advice from an insurance agent.

8. Not knowing the total costs involved. Early in the buying process ask your Realtor for estimated closing costs.

9. Not following through on due diligence. Buyers should consider concerns they have relating to issues such as; schools, power lines, neighbors, environmental conditions, etc. Ask the important questions before you make an offer on a home. Be diligent so that you have confidence in your purchase.