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REAL ESTATE SERVICES

There is a big difference between buying a home and selling a home. They require tailored duties and services at each stage of the process. It's important that you work with a real estate professional prepared to meet those demands to ensure full value! 

HOW DO I BUY A HOME IN A COMPETITIVE MARKET

Don't look now but we are back in a competitive real estate market. Here's how to put in a winning bid without overpaying.

High rents and low interest rates have pushed many home buyers off the fence so we are back to a seller's market, making it tough for buyers, especially first-timers. Hi, I'm Lambros Demos from Royal LePage and if you’re in the market for a new home, you may want to follow these tips to give yourself a leg-up on the competition and increase your chances of securing the home of your dreams, even in a hot market.


1. GET PRE-APPROVED FOR A MORTGAGE


Before you even begin looking at houses, get pre-approved for a mortgage. An experienced and competent agent will not work with you if you are not pre-approved. A seller's agent will not even look at your offer if you are not pre-approved. Save yourself time - and disappointment - by speaking to a mortgage professional today to get the ball rolling. Just pause this video and do it now! That's how important it is.


2. MAKE THEM AN OFFER THEY CAN'T REFUSE


Once you are pre-approved and found the home of your dreams, you are ready to submit an offer that even Don Corleone would have a hard time turning down. Keep in mind, there are four main items that sellers look at in an offer and I will speak to each of them: The four items are: Purchase price. Deposit. Closing date. And conditions. I will speak to each of these:


PUT IN YOUR BEST PRICE

One of the biggest mistakes home buyers make is they put too much emphasis on the asking price. The asking price is not an indication of value. It is simply an arbitrary number. In some cases, the asking price is not even the end point but the starting point for offers. I understand everybody wants a deal but sometimes, the asking price is low on purpose, to generate multiple bids. And if you're in competition, guess what? The seller will not bother negotiating with a low ball offer. They will just take the best one.

To determine the market value of the property, make sure your agent does due diligence and gives your his or her estimated market value. It may be under asking or over asking. This is another reason why you need a good buyer's agent, to make sure someone is looking out for your best interests, not the seller's. The listing agent is working for the seller, so his or her job is the get as much money for the seller as possible. Saving a few bucks off the asking price may sound like a good deal but in reality, you may still be overpaying. That is why you need your own agent to do the research.


MAKE A SIZEABLE DEPOSIT
Sellers are more likely to accept an offer with a larger deposit because that speaks to the

seriousness of the offer. 5% of the purchase price should be enough but anything less than 3% will likely raise flags for the seller.


BE FLEXIBLE WITH CLOSING
The closing date usually takes a back seat to the purchase price but in some cases, the sellers will require either a long closing or a short closing. The more flexible you can be with closing, the better your chances of acquiring the property, even if you don't have the highest bid.


SUBMIT AS CLEAN AN OFFER AS POSSIBLE
The fewer conditions you have in the offer, the better your chances, but don't do anything your are not comfortable with. If your pre-approval comes in much higher than the purchase price, and you have at least 20% down payment, I would not recommend dropping the financing condition. I would also not recommend dropping the home inspection condition, unless an inspection report was already done by the seller and provided to you. If you are happy with that inspection report, and you can comfortably remove that condition from your offer, it will go a long way. If your are buying condo, you will absolutely need a status certificate condition but other than these three, sellers do not want to see any other conditions. For example, making your offer conditional on selling your current home will likely not fly, especially if you are competing against other offers. This is why you need a good buyer's agent. To help guide you through the process and give you valuable insight.


3. WRITING A LETTER


Writing a letter to the sellers is a nice idea and may push your offer to the top but it will not replace any of the previous items I just talked about. Where it comes in handy is in a tie-breaking situations. Go ahead and write one anyway, it's better to pull out all the stops.


4. SHOW UP!


You've heard the expression, "Showing up is half the battle", well, in a real estate offer situation, this couldn't be any truer. Many agents will just e-mail the offer in but if you want to give yourself an edge, your agent should present the offer in person to the seller, with you waiting outside, just in case a signature is needed. That shows commitment to the offer and a willingness to get a deal done on the spot. It also gives your agent an opportunity to speak to the sellers face- to-face and convince them why they should choose YOUR offer over all the others.


Hope these buyer tips help. For more info, please don't hesitate to contact me, I'd love to hear from you. Have a fantastic day and good luck on your next offer!

SHUTTING COST

What are shutting costs? An insider's manual for townhouse/condo buys and charges.


From time to time, a story will show up in the news: "Apartment suite purchasers found napping by shutting costs." Someone buys a condominium or a house without getting their work done. As the deal experiences, they're astonished to find that there are expenses that they didn't spend plan for.

It's sad that high shutting costs shock a few people. Be that as it may, it shouldn't come as an astonishment. Purchasing property can be a difficult procedure, and it's one of the most costly. In case you're going through such cash, you ought to do your research!

Closing expenses can be somewhat beguiling now and again. That is the reason in the present article, we'll assist clear with increasing the perplexity around shutting costs. Here are probably the most expensive costs that financial specialists should factor in their bookkeeping.


Deposit:

The store should not shock anyone. You'll have to address a specific level of the cost of the condominium on marking, and all through the structure procedure. Ensure you know precisely what the instalment structure is, and request this recorded as a hard copy in advance. One bit of leeway to new apartment suite constructs is that developers separate the store structure into littler sums. That way, you don't need to pay the store at the same time. You can space it out into three or four littler instalments over a couple of months to a couple of years. A 20% dump of money can be a touch of scaring! Yet, numerous developers, acknowledge four 5% instalments throughout the structure procedure. This is considerably more manageable!


The deposit makes up a huge piece of the charges, yet don't get settled – the little stuff includes up!


Land Transfer Taxes:
Land move assessments can be the executioner. This is particularly valid in Toronto. We do not just need to pay the Ontario Land Transfer Tax yet in addition to the Toronto Land Transfer Tax.
Here's what you'll pay for the Ontario Land Transfer Tax:

  • 0.5% on the first $55,000
  • 1.0% on the sum somewhere in the range of $55,000 and $250,000
  • 1.5% – on anything somewhere in the range of $250,000 and $400,000
  • 2.0% – on anything over $400,000


There is some alleviation for first-time purchasers, as they may qualify and get a credit worth up to $2000.

If you are passing by the benchmark cost of an apartment suite ($352,000), you'd pay $3,755 for the Ontario Land Transfer Tax and $3,245 for the Toronto Land Transfer Tax. That implies you'll pay $7,000 aggregate in Land Transfer Taxes alone.

Tarion Warranty Fee: Tarion, while a significant layer of assurance for your townhouse/condo, doesn't come free. On a new build condo, there is an enlistment expense. The charge relies upon how a lot of the price tag of your townhouse is. The enlistment charge is $802.30 for an apartment suite that expenses somewhere in the range of $300,000 and $350,000. The expense is $881.40 for a condominium that expenses somewhere in the range of $350,000.01 and $400,000.00.

While the enlistment charge may appear to be somewhat of a torment, trust us – it's justified, despite all the trouble. If there are any issues with your condominium that are the consequence of poor workmanship, they can cost you much more than $800.

It is conceivable that the developer has considered this in their price.


CMHC Insurance Premium:
Are you going to put under 20% down on your condo/townhouse? Provided that this is true, the Canadian Mortgage and Housing Corporation (CMHC) will charge you a premium on your home loan insurance.

This fluctuates from area to region, yet it is normally somewhere in the range of 0.5% and 2.5% of the head of the home loan insurance.

Often, this expense can be figured into your home loan and you don't need to pay it in advance. Most land speculations require at least 20%, so you likely won't have to consider the CMHC fee.


Legal Fees:
Legal charges are another standard shutting cost. Contingent upon the legal counsellor you use, you'll pay somewhere in the range of $1,000 and $2,500 in legitimate fees.

It's essential to pick a skillful attorney to deal with your apartment suite's end. Apartment suites are a major buy. You need to ensure you dab those I's and cross those t's!


Other Fees the Builder May Pass to You:
A clever financial specialist realizes how to pose the correct inquiries when purchasing a property. There are some significant inquiries you, as well, ought to inquire. What different charges are the manufacturer passing on? Will the manufacturer top shutting costs?

Other charges you have to consider, however, may not be important relying upon your circumstance are:

  • Home inspection
  • HST, where applicable
  • Title protection, and Utility assistance deposits
  • Builder and Educational levies


Generally, shutting costs typically add down to 1-4% of the price tag. Although a 1% distinction in shutting cost may appear to be little, it could be a large number of dollars. The more schoolwork you do, the better set you'll up be for your buy. What's more, the more outlandish expenses will amaze you.

 If you decide to buy 

  • Educate you about the current housing market conditions.

  • Discuss and analyze best alternatives that best fit your budget and criteria

  • Resolve any challenges that may arise when purchasing a new home.

  • Provide the highest quality of service so that you feel comfortable and confident in the process.

If you decide to sell

  • Expertly market your home through channels like social media, websites, and multiple listing services.

  • Conduct a comparative market analysis to demonstrate what other homes in your area have been sold for in the recent months.

  • Secure the assistance of other professionals for completing the paperwork accurately and while meeting critical deadlines.

  • Complete a property profile of your home, including current conditions, surroundings and special features.

Daniele Sica

Sales Representative

Century21 Miller Real Estate Ltd., Brokerage

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