5 Tips for Finding the Right Mortgage Professional for Your Needs

Finding the perfect Edmonton home is only the first step in the journey towards home ownership. The next step is a financial one and comes with many questions: Is the home being bought with cash or is a mortgage needed? Will the buyer be using a mortgage broker or going to a bank? If those questions don’t have definitive answers then maybe it’s time to turn to a mortgage professional for help. Here are five things to think about when searching for the right mortgage professional.

Talk to Recent Homeowners about Their Experience

Some people have negative experiences when buying a home, but most of them loved the team they assembled and would recommend them to anybody who asked. One of the best ways to find a mortgage professional is to talk to friends and family members who have bought a home in the last few years about their experience. It’s the easiest way to get honest feedback and everybody who loved their Edmonton mortgage professional will be more than eager to share that information.

Meet with a Wide Variety of Professionals

The best way to get to know somebody is to meet face to face. Websites, ads and personal recommendations can only reveal so much about a person and nobody can know how much they connect until meeting firsthand. Make sure not to jump the gun and settle after the first meeting, it’s important to talk to as many professionals as possible to make sure the right choice is being made.

Ask for a History of Lenders They do Business With

Mortgage brokers receive a fee from the bank or financial institution where the mortgage is set up. This is to be expected but it can lead to a broker giving preferential treatment to a lender that gives out a larger fee. A professional who does business with many different banks will probably look out for the client’s interest more than one who only does business with one or two financial institutions.

Look for a Professional with Years of Experience

The real estate market across Canada has gone through a massive boom in the last ten years, which resulted in plenty of people switching their professional focus to capitalize on the increased work. This is why mortgage brokers are so popular across the country now, which has benefits and drawbacks. The benefit is that the buyer has more choice.

Make Sure They Have Experience in the Community

Make sure any mortgage broker is local and has experience in the community, just because it’s the buyer’s first time doesn’t mean it should be their broker’s first time. Buying a new home can be scary and stressful, but if you’re surrounded by the right team it can be the seamless experience that other people brag about.

Bare Land vs Conventional Condos

The term “bare land condo” may be unfamiliar to you, so first let’s break the two definitions down, as defined by the Condominium Property Act.

• Conventional Condos are what come to mind when most people think of a condominium. It’s an apartment-style structure where each unit is the private domain of its owner. The boundaries of the unit are the walls, floors and ceiling, and the owner claims the area within these boundaries. Outside of that individual unit, the entire building is considered “common property,” owned by the owners of all the units. Real Property Reports are usually not drawn up for conventional condos. Instead, a Condominium Plan serves as a survey of the entire complex of condominiums. While the owner of a unit is responsible for the interior boundaries of his/her unit, he/she also shares the common responsibility for the entire complex, along with other unit owners.
• Bare Land Condominiums are actually defined by the size of the lot the building is situated on. A bare land condo, like freehold land, is identified by a Real Property Report from a surveyor, which will include the structure, landscaping, yard and garage. Like a conventional condo, areas outside of the free-standing structure are common property owned by all unit owners. In other words, a bare land condo isn’t much different from a house or duplex, since the real property includes the entire lot and not just the structure itself. In fact, a single-family house can be considered a bare land condominium.

As part of an entire condominium community, restrictions will apply to a bare land condominium; an owner doesn’t have carte blanche to do whatever he/she might want with the property. Bare land condominiums do have the advantage of enhanced privacy, however, and usually have lower condo association fees. In addition, builders can build units on an on-demand basis rather than having to wait until the entire complex is near completion before any units can be sold.

Condominiums offer a real attraction for many property owners, especially busy professionals who may not have the time to commit to yard work, maintenance, repair work and everything else that goes along with owning a conventional home.

Buying an Edmonton Home?

With today’s Edmonton real estate market, it’s not uncommon for a family to find the perfect home only to find out that their offer was not selected. It can be devastating, but especially frustrating if there is no way to discover why the offer wasn’t accepted. What was it that made the difference? Some buyers are really crafty when they submit an offer and use some tiny tricks that make their deal hard to ignore. Here are some ways to make sure any real estate offer is the first one considered.

Keep it Simple for the Seller

When the real estate market is slow and there aren’t many offers rolling in, the buyers have their pick of homes and can make deals or add clauses to the contract that benefit themselves. It wasn’t uncommon for a buyer to make an offer for a home that included a term dictating that they would need to sell their own home first. In some cases, any requests like this will automatically disqualify a potential homebuyer from a bidding war. Why would a seller agree to this if somebody else is willing to buy right now?

One-Up the Competition with a Pre-Approved Mortgage

There is nothing worse than agreeing to sell a home only to discover the buyer does not get approved for a mortgage and then it’s back to square one. As a buyer, a quick way to move to the top of the list is to get pre-approved for a mortgage. This proves to the seller that if they accept the offer the home will more likely change hands and the deal will go through, it also has the added benefit of allowing the buyer to know exactly how much they can put down in advance.

Discover and Include the Seller’s Needs

Everybody has a reason for selling their home and some are more time-sensitive than others. A real estate professional will be able to find out exactly why the home is being sold and see if there’s any helpful information that can help when crafting the deal. For instance, some sellers have a closing date that they desperately need to hit and may be willing to accept a lower offer if it is guaranteed to meet that date.

Some Extra Incentives Won’t Hurt

Sometimes the seller will end up looking at multiple offers that are all for similar amounts. At that point, some tiny incentives might make the difference between a winning or losing bid.
Every community is different and every seller has different criteria that need to be met in order for them to accept an offer. By teaming up with a professional REALTOR® you will have somebody working with you to find out what the seller is looking for and what you can do to sweeten the deal and put it above any competition.

How to Assess Whether or Not You Need One

Home warranties are used to protect new owners from the costs associated with unforeseen repairs in their new house or condo. Like most costs associated with buying a new home, a warranty is one people don’t discuss until afterwards and is one nobody can agree on whether or not it’s necessary. There are benefits and drawbacks to buying a home warranty, for both buyers and sellers, and the decision changes drastically based on circumstances.

Peace of Mind When Buying an Older  Home

Old homes may be less expensive than new homes, but older homes will also have older appliances and foundations. Every warranty company and plan is different, but these are the things a home warranty will protect against. The cost of replacing all the appliances in a home is something that most people could never afford right after paying for the house, so the idea of a significantly cheaper warranty helps them rest easy at night knowing they are covered if something breaks down.

Don’t Expect Complete Repairs

While a home warranty looks good on the surface, especially considering how expensive brand new appliances can be, there are catches. Some people are shocked to learn that when their appliance breaks they will only be receiving a repair and not a new machine. Every company has different criteria for what warrants a new appliance, but in most cases they will do whatever they can to get the old appliance back in running order so that they won’t have to pay for a new one.

Warranties are not Just for Buyers

Home warranties are also available to sellers to cover any unexpected costs associated with the sale. Everything may appear like it’s going smoothly, but sometimes sales fall through at the last possible second or the closing is delayed for unforeseen circumstances. A home warranty can cover the seller for all the costs associated with this disaster, including legal fees, accommodations, moving and storage as well as bank, mortgage and interest payments.

Some Homes Will Have A Warranty Included

In order to make their home stand out and be more attractive to potential buyers, some sellers will make a deal with a warranty company to include the coverage in the cost of the home. Additionally, some REALTORS® may include the cost of warranty as a bonus when the home closes. Before shopping around with different insurers, all buyers should double check that the cost of the warranty isn’t already being covered by another party. This is especially true for new homes.

If the idea of home warranties has you confused and you really aren’t sure whether or not you need one, it will be best to speak with a professional real estate agent. We can tell you more about home warranties and why they may be right, or wrong, for your new home. Every situation is different and if you provide us with more information we can help you decide whether or not a home warranty is right for you.

Upgrading to a Larger Home – Are you ready?

Many homebuyers face the question of size when looking for their next home. Do they downsize, stay the same, or upgrade to a larger home? To help answer this question, here are some factors to take into consideration when determining if you should upgrade to a larger home.

Affordability

With larger homes come more financial responsibility. Typically larger homes will come with a larger mortgage, repair/maintenance, utilities, and insurance payments as well as increased property taxes. Are you ready financially for these larger expenses? Take into account these estimated expenses when going over your household budget. Remember, ideally you’ll want to be able to maintain a comfortable quality of life and still be able to save for the future when these larger expenses are taken into account with your budget.

Down Payments

There is a need in most cases during the property buying process to make a down payment and to pay for closing costs. You should include these expenses in your estimations while keeping in mind that selling the existing property and accessing equity will yield most or all of the funds that are needed to make a new purchase. Working with a real estate professional and a mortgage broker will help you to get more information about these two factors before making a sound financial decision.

When the time is right for you to upgrade to a larger home, you should consider working with an experienced real estate agent to sell your existing property and help you in the process of buying a new home.

Giving a Smaller Home a More Roomy Feel

Smaller rooms can create a decorating challenge for homeowners. While some may be dealing with a space that is smaller overall – such as an condo or apartment – others may have just a couple of smaller rooms that look and feel cramped. While enlarging these rooms may not be an option, there may be a few upgrades to consider that can give these rooms a more spacious and open feel.

Light Paint Colours

Dark colours can add dramatic flair to a room, and they certainly will make a bold statement. However, they also can create the feeling that the room is smaller than it is. It is best to paint with light paint colours on the walls or even to choose a lighter colour for the ceiling. In addition to these colours, a lighter floor colour can also add the feeling of depth to the space. If the use of bolder, brighter hues is preferred, consider adding a pattern in combination with lighter colours to the ceiling. Another idea is to use stripes with alternating darker and lighter hues on the walls to create the illusion of space.

Shelving Installed Close to the Ceiling

Storage space is often a concern with smaller rooms, and cabinets and bookshelves can take up valuable floor space in any room. A smart idea for smaller rooms is to install shelving or even cabinetry closer to the ceiling. This can enable the space below it to be kept open or to be used for other purposes, such as for other furnishings that must be kept on the floor.

Recessed or Flush Lighting

Lighting is an important element in any room, and brighter lighting can make a space look larger in many situations. Darker shadows cast about a room can make the space feel closed off. More than that, overhead lights that hang down, such as pendants or chandeliers, can create a visual illusion that makes the room feel smaller than it is.

To achieve the goal of casting light throughout the room more evenly while removing these hanging light fixtures from the space, install recessed or flush lights into the ceiling. These can be combined with small table lamps if necessary to brighten up any areas that may still be dark or shadowy. Avoid tall, imposing lamps when decorating a smaller room.

Decorating a smaller room is rarely easy to do, and there are many things that homeowners can do when decorating that actually may make a smaller room appear to be even smaller. These are a few tips that can be followed to make the space appear to be more roomy and spacious, but there are also other ideas for decorating as well as built-in upgrades to consider. Ideally, the fully decorated room will be stylish and functional as well as appear to be spacious.

With proper research and planning, a homeowner can achieve the desired results. 

A home inspection, while not required in all areas, should be an indispensable part of your home buying or selling process. It is worth the cost up front to save you money and headaches down the road.

What a Home Inspection Entails

A home inspector will provide a thorough inspection of the home’s interior and exterior to alert you to any damage that may cause potential problems in the future. He or she will look at the house as a whole and evaluate how the different components work together and affect each other. The inspector will identify any areas that need repairs or are unsafe and advise you on what your next steps should be.

Benefits for a Home Buyer

When you are purchasing a home, you want to know that it is going to be safe for you and your family for many years to come. Obviously, you don’t want to buy a home that is rotting from the inside out. A home inspector can alert you to issues that are minor right now but could potentially become much more serious in the future. Purchasing a home is a major decision. The results of the inspection may lead you to reconsider buying a particular house if it is likely to have a lot of problems in the future. It can protect you from huge unexpected expenses.

Benefits for a Home Seller

If you are the one selling the home, it is a good idea to request a home inspection prior to listing your home on the market. Potential buyers of your home are likely to have an inspection done, and you don’t want there to be any surprises. If there are issues with the house, buyers may rescind their offers or make offers only on the condition that you repair the problems before they finalize the purchase. It is better if you know about any problems in advance. An inspection gives you the opportunity to make sure the house is in its best possible condition when buyers start coming to look at it. This will streamline the purchasing process and make potential buyers feel much more confident that your home is the right choice for them.

When you are ready to buy or sell a home, or have any questions regarding home inspections, get in touch!

Why a Realtor Streamlines the Process of Selling Your Home

So, it is time to move onwards and upwards in life and move house! Moving is a dynamic process that involves much more than a simple transaction. From marketing to proper evaluations and inspections, it is advisable to use the services of an experienced professional realtor to make sure everything goes smoothly.

The following challenges are what a professional can help you avoid when selling your home:

Time Spent on Potential Buyers

Selling a home by yourself will be a significant time commitment that should not be underestimated. Perhaps the greatest commitment to your time will be in scheduling and hosting viewings of your property. Are you ready and able to pick up the phone every time you have an inquiry? Are you able to sift out the simply curious from real potential buyers to avoid unnecessary viewings? Realtors are experienced in asking the kind of qualifying questions that sort out the wheat from the chaff. And how many evenings, weekends, and weekday hours are you able to give up to show interested parties your home? You’ll then have to pro-actively follow up on interest after viewings.

Marketing and Valuation

As well as the time involved in doing your own marketing, there are also practical considerations around how successfully you will get the information out there. Yes, you can list your property on various websites and specialist portals that realtors use. However, realtors also have extended networks of active potential buyers that they will reach out to with information on your property, a channel you will almost certainly not have access to.

You would have to be confident that you could realistically value your property correctly if you chose to put your home on the market yourself. Things you may be oblivious to can be widely considered as flaws by potential buyers. A professional realtor has the experience to point those out and suggest small changes which will make your property more attractive.

Negotiating

Realtors are both objective and experienced, having negotiated hundreds or thousands of real estate transactions. They know how to spot the signs a potential buyer has formed an emotional attachment towards your property and how to leverage that to your benefit. They also know how to spot signs of nervousness that might pose a threat to the eventual sale and how best to allay such fears. They won’t make compromises because they have been charmed by a prospective buyer, or behave irrationally because they don’t like them on a personal level.

Avoiding Getting Sued

This is a genuine concern that owners operating without a realtor must be acutely aware of. There is a lot of paperwork involved in the sale of a property. Getting it wrong can at best delay the sale and at worst lead to putting yourself in danger of legal proceedings. Seller’s disclosure is a particular concern. What can be considered a defect, hazard, or nuisance varies depending on where you live. Realtors know exactly what is required of the seller. If a mistake is made, then they have insurance, ensuring that a seller does not personally suffer.

2014 is coming to a close, but it’s been a great year for the Edmonton Home Pros Real Estate Group and we hope it’s been a fantastic year for you, too! As we head into the holiday season, we hope you’ll have a very Merry Christmas and a Happy New Year, spent surrounded by friends and family. Our homes are a central part of the festivities of this season, and now is the time when some of our most treasured memories will be made within our walls. This time of year, we all understand what makes a “house” a “home”.

We’d like to thank all our new and returning clients who worked with us this year, and we look forward to working with you again on your next Edmonton real estate transaction, whether it be in 2015 or years in the future. If you are considering buying or selling and Edmonton home in 2015, you can access all the information on our website 24 hours a day, 7 days a week, 365 days a year. Check out current Edmonton homes for sale, find out more about our buyer and seller services, or book an Edmonton home evaluation and consult for the new year.

Homes like these energy efficient Oxford area homes are becoming more affordable in Edmonton Photo credit: CTV

This week, RBC Economics released a report that states that overall, Canada’s real estate has become slightly more affordable.

Even with the fast-rising prices in Vancouver and Toronto (and to a degree Calgary), the country is still in relatively good shape.

RBC Economics says that rising household incomes, lowered utility costs and low interest rates are making it easier for people to enter the market.

As you might have seen in our last post, there are many factors at play that can influence affordability and pricing of real estate. The Canadian Real Estate Association quoted a 7.1% year-over-year increase over October 2013. The MLS home price index posted price gains of 5.5% over last year (which is quite a bit lower than CREA’s numbers).

Either way, with the big three markets influencing our national landscape, it may seem easy for some to believe that home affordability is slipping away.

It isn’t.

Across the western provinces, homes have slightly risen in price—once we remove Calgary and Vancouver from the equation. Both cities’ markets have witnessed growth far beyond the national average. In many other markets, we’ve seen only slight to moderate growth at rates that are very comfortable for those markets.

We call the prices respectable because the drop in fixed mortgage rates is keeping the market strong. Also, the gradual rising incomes in the west are also helping to keep homes affordable.

So many of us are preparing to hear panic about the market, but the price conditions of Edmonton homes—as well as other western cities—are robust with a firm foundation.

We have settled into a solid growth trend, and affordability for Edmonton home buyers is improving. It’s never been a better time to get into the market.

If you are thinking about buying or selling your Edmonton home, get in touch with the Edmonton Home Pros team.

We’ve got the experience to help you make sense of the market and find the home that’s right for you and your family.