It’s an awesome and exciting time for buyers and sellers out there! The market is ON FIRE. According to the Realtors Association of Edmonton, total residential unit sales jumped to 69.3% in February 2022 from January 2022! That’s an insane number – especially in the start of the year. There is no doubt that March will be extremely busy.
At Realty Executives Focus, we introduced a new program called, “Sell or Buy You Get to Fly!” It is an amazing opportunity for those interested in purchasing an investment property (whether it is a new home or for income purposes) or those looking to sell. Be sure to click here for more information!
Win a $4,000 travel voucher from Realty Executives Focus!*
All you have to do is buy or list your property with one of our Agents, contract must be firm (also known as conditions removed or sold) by December 31, 2022 and that’s it!
T&C:*
1. Entry is valid to all Canadian residents who buy or sell a property with a Realty Executives Focus Agent in 2022.
2. The property must be in a firm contract (also known as sold or conditions removed) by December 31, 2022.
3. The winning entry will receive a travel voucher to the value of $4,000.00.
4. Winner will be drawn on January 3, 2023. The winner will be contacted via E-mail.
5. The voucher can be used for any form of travel to be booked with our travel agent before the 31st of December 2023.
Each office is independently owned and operated. Not intended to solicit individuals under contract with another Brokerage. Draw and incentive offer subject to rules and eligibility agreement.
Now that restrictions are lifted and we are moving forward from the COVID-19 pandemic era – this is a great chance to start fresh!
Click here for a free market evaluation where we can take a look at your home and see what potential numbers we can work with. It is not an obligation to work with me as a Realtor but I would love to be your resource.
Click here for a mortgage calculator! It is a great tool to see your starting financial numbers and what you are budgeting for.
If you’ve been thinking about buying a house, you may be wondering you’ll know when it’s “the right time.” If you don’t have a 20% down payment saved up, is it still okay to consider buying? If you can’t afford your forever home, should you still jump into ownership now? Does the Covid-19 pandemic change the rules for first- time home buyers?
This is a summary of the advice I have received over the years (the good parts anyways) along with 15 years of my own industry experience.
1. Ease Into It
Go to a few Open Houses. If you’re with a partner, talk about what you both want and make a list. Try to rank the items. Check out realtor.ca to see listings in different communities in the city. Pay attention to local schools, parks and promixity to transit and retail shopping.
2. Know your numbers – make sure you can afford the home you want.
The more accurate you can be the better. Then develop a budget that includes your projected mortgage payment with estimates for property taxes and maintenance. Trust me on this. Twenty-five years is a long time to owe money. Developing a realistic and manageable budget now will save you a lot of money and stress over the long run.
Many of us dream of buying a home but we also need to be realistic about what kind of properties you can actually afford. Your household income, personal monthly expenses, and home costs like property taxes, condo fees, and heating and electricity bills all factor into the total amount you can borrow.
3. Get Pre-Approved.
Once you understand your cash flow and you have an idea of how much monthly income you want to commit to your mortgage, get pre-approved and lock in a rate for 120 days. While a pre-approval may not get you the lender’s best rate and it doesn’t guarantee that you will be approved on your full mortgage application (actually purchasing the house), it does give you some rate insurance, and at no cost.
If you’re serious about making an offer, get a lender to run your numbers in detail, to confirm what you can actually spend with confidence – and understand that the house or condo, too, must pass for the deal to work.
4. Don’t try to time the market.
If you buy a solid asset at a fair price and stay in the market for the long haul, you’ve set yourself up for success.
Referrals from someone you trust are always a good option, but if you are starting from scratch besides the usual vetting, try to find someone who does a lot of business in your neighbourhoods of interest (Fort Saskatchewan, Edmonton, Sherwood Park, St. Albert). One easy way to do that is to scan the names of realtors when searching MLS listings in your area. You’ll probably notice a few that pop up frequently, and the busy ones are usually that way for reason.
6. Location, location, location.
It’s a well-known cliche, but doesn’t that also make the ultimate proof statement?
7. Future-proof your buying decision.
Think seriously about what your plans for the future are! That means assessing where you’re going to be comfortable today, and for the next five years – without underestimating what the next few years will bring.
It’s important to consider not only what you can afford now, but what you’ll be able to swing if a baby comes along, your career goes off-track, the property you buy needs a major repair or something so unexpected as the COVID-19 pandemic!
IIs the commute that seems tolerable when you test it on a Sunday still manageable at 6 a.m. on a Monday in February? If you hate the kitchen in a place you buy, and proceed with the deal anyways because “we’ll just renovate it later,” have you got a solid plan for the $20,000 to $30,00 price tag—or more—for that renovation? And if you don’t, can you live with the unrenovated kitchen for the foreseeable future?
“Future-proofing” the deal means getting into a situation you can enjoy not only now, but as your life inevitably changes over time.
8. Consider using a Mortgage Broker.
Did you know mortgage brokers can get you a mortgage with a Big Bank, but at lower rates?
Mortgage brokers compare mortgages from a variety of banks and financial institutions, to find the best options for their clients.
In addition to the Big Banks, mortgage brokers have access to mortgage products and special rates from trust companies and credit unions. They also work with smaller lenders who don’t have the same overhead costs as the Big Banks (and therefore often have lower rates and fewer fees).
The best part? Most mortgage brokers don’t charge you for their services. It is the lender that pays the broker’s commission. All the negotiating and paperwork is handled by the broker and they will assist you in the application process, from pre-approval to home appraisal.
9. Get a Home Inspection.
A good home inspection costs about $500 but is worth every penny. If you only have 5% down, and you are stretched to pull it together, you can’t afford a house with unknown problems that come to light after you buy – because you don’t have enough money to fix them. Do your homework beforehand. Specifically, ask about the experience and background of the person the inspection company is sending out.
In order to make your home-buying situation work, you need to make sure you have the resources available to handle the inevitable extra costs (leaks, breaks, and unavoidable maintenance and repairs) that come with home ownership.
I have a great list of vendors if you are looking out for any! Feel free to reach out at 780-777-9703.
10. Consider taking out a First-Time Home Buyer’s RRSP loan.
This allows you to borrow up to $35,000 from your RRSP (each), and the funds can be put toward your down payment or used to cover closing costs, moving expenses and/or home renovations. Borrowers should especially consider this option if it will increase their down payment to 20% of their purchase price and eliminate the need for high-ratio default insurance.
11. Take advantage of Firs-Time Home Buyer programs.
As a first-time homebuyer, you’ll want to be familiar with various programs that apply to your situation. Whether it’s a rebate you may qualify for or a tax-efficient way of funding your down payment, there are a number of government programs listed below that can help you potentially save some money when you buy your first home:
The Home Buyers’ Tax Credit currently works out to a rebate of $750 for all eligible first-time home buyers.
The Canadian government’s Home Buyers’ Plan (HBP) allows first-time home buyers to know up to $5,000 from your RRSP for a down payment, tax-free.
12. Don’t rush a major renovation.
If at all possible, live in your house for a while before you renovate. You’ll develop a better sense of where you want things to go and how you want to use each part of the home.
13. Have fun with it!
Buying your first house is an adventure of discovery and an experience you’ll remember for the rest of your life. There will be times when the process is stressful (especially on offer night) but done right, it can fun and very rewarding.
The Bottom Line:
We make our best decisions when we feel secure in the knowledge that we have planned properly and have approached big decisions in a methodical, measured way. Do that, and you give yourself the best possible chance for success and happiness.
The COVID-19 pandemic has added new uncertainties for today’s prospective homebuyers. The price of housing, the stability of income, and the overall health of the Canadian economy have all been impacted by the pandemic – and the effects are still unfolding. However, these 13 tips of practical advice can help you out during these strange and unexpected times!
