“Slow and Steady Numbers a Good Sign for 2024” – The latest headline from Edmonton Real Estate Association.
Welcome to our first real estate market update of the year for the Greater Edmonton area! As we dive into the data, it becomes clear that the market is already buzzing with activity. With a surge in sales, rising benchmark prices, and a low inventory level, homeowners and prospective buyers are in for an intriguing year ahead. Let’s examine the latest trends and indicators that are shaping the real estate landscape in the Greater Edmonton Area.
Sales Surge and Reduced Inventory
Compared to January 2023, the market saw a remarkable 46% increase in sales, showcasing a highly energized market. At the same time, new listings experienced a more modest 4% increase. As a result, inventory dropped by 13% year-over-year, resulting in the lowest inventory levels observed in January since 2015. With just 3.16 months of inventory available, Greater Edmonton is firmly seated in a seller’s market.
Rising Benchmark Prices
In January, single-family home prices climbed by 4%, while townhouses and apartment-style condos experienced even more substantial growth, with increases of 7% and 6%, respectively, compared to January 2023. These price shifts indicate a bus market, providing a solid foundation for current homeowners and challenging prospects for potential buyers.
The Interest Rate Landscape
The Bank of Canada has diligently maintained steady interest rates for four consecutive decisions amidst moderating inflation. However, forecasters widely anticipate that rates may begin to drop in the third quarter of this year. Even as rates remain stable, the exciting news is that lenders are already offering 5-year fixed mortgages below 5%, which we haven’t witnessed in quite some time. This development opens up new opportunities for homeowners to secure favourable financing terms, creating more demand from buyers.
Record-breaking Net Migration and High Demand
Record-breaking net migration into the province continues to fuel demand in the Greater Edmonton Area. As newcomers flock to this region, well-priced and well-marketed listings frequently sell with multiple offers after only a few days on the market.
✅ If you are interested in a free home evaluation or would like a market analysis on a potential property, call me direct at 780-777-9703!
Happy Monday! Taking a moment to appreciate these kind words by my amazing clients. It was an honour to help sell your home in Fort Saskatchewan. Our team works hard to make the process less stressful and getting the best possible results for our clients. Thank you for trusting me as your Realtor.
🏡 If you are interested in a free home evaluation or would like a market analysis on a potential property for rental, let’s have a chat! Call me direct at 780 777 9703!
Enter to win a $4,000 travel voucher from Realty Executives Focus when you Buy or Sell a property with one of our Agents.*
*Terms and Conditions:
1. Entry is valid to all Canadian residents who buy or sell a property with a Realty Executives Focus Agent between Jan 1, 2023 and Dec 31, 2023.
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, 2024. The winner will be notified 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 2024.
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.
Just wanted to share with you some of my current condo listings! Apartments and condos in Edmonton and Fort Saskatchewan! Whether you are a first time home buyer, upsizing/downsizing and/or investing, one of these beautiful properties could fit your criteria.
If you are interested in a market analysis for a potential rental investment, let’s have a chat. As a full service brokerage, we work with all kinds of rental investment properties. Check out my website for the latest rental market report for Edmonton and Surrounding Area!
Edmonton
Modern and Charming in Glenora
Welcome Home! Luxurious, modern and charming 2 Bedroom 1 Bathroom high rise unit with breath taking views of the city in beautiful community of Glenora. Fantastic location off Stony Plain Rd and 139 St provides easy access to transit, coffee shops, walking trails, River Valley, West Edmonton and Downtown Edmonton. Solid Concrete Condominium Building has tons of amenities and features including indoor pool, fitness centre, social rooms, underground parking, elevators and a sauna! Building is well managed and cared for. Primary bedroom has walk through updated ensuite bathroom, another ample sized bedroom and glass shower. This unit boasts all new kitchen appliances, large living room, stylish fixtures, barn doors, floating wood shelves and so much more. Huge glass patio doors to large balcony overlooking the city. Underground parking available. Perfect home for first time home buyers or investors!
Downtown Living Edmonton
Welcome Home! Perfect concrete condo with great views of downtown and Rogers Place. 9th floor unit in very well kept and sought after building Alta Vista South. Unit has air conditioning and condo fees include gas and water utilities. Beautiful entrance ways and common areas. Offers 1 heated underground parking stall. Large entrance with in-suite laundry that also provides storage. Entrance way leads to full bathroom and bedroom/den with double doors. Gallery style upgraded elegant kitchen overlooks huge living space. Large upgraded kitchen. Living room overlooks downtown. Two patio doors to large covered balcony with gas bbq hook up. Master bedroom is wonderful with additional access to balcony. Master suite has ample closet space and access to full ensuite bathroom. Wonderfully located unit with amazing style. Great location quick walks to downtown, Oliver town centre, MacEwan, LRT access, Rogers Place, and so much more!! Other building amenities included guest suite, gym and social room!
Luxury Suite in Icon II
Luxury suite in Icon II condominium tower. This 2 bedroom, 2 bath 859 sq. ft. on the 7th floor. Close enough to Rogers Place for convenience but far enough for comfort, the building is situated amid some of Edmontons most popular eateries, bars and shopping venue. Icon 2 is the best place for you if you want to be at the heart of it all. Granite countertops; laminate hardwood; galley style kitchen with stainless appliances; top of line kitchen cabinets with backsplash; upgraded light fixtures; full closet shelving/hangars. Underground, heated, secure parking stall. Master bedroom with ensuite and in suite laundry. Heat and water included. Huge wrap around balcony with gas outlet for barbeque. Easy access to Grant MacEwan, NAIT; Royal Alexander Hospital. A few footsteps from LRT (light rapid transit) with access to University of Alberta Main and South campus; University of Alberta hospital and Health Sciences Center plus northbound to Commonwealth Stadium and Northlands/Rexall Place. Location; Location!
Downtown Edmonton Core at its Finest!
Luxury suite in Icon II condominium tower. This 2 bedroom, 2 bath 861 sq. ft on the 18th floor. Close enough to Rogers Place for convenience but far enough for comfort, the building is situated amid some of Edmontons most popular eateries, bars and shopping venue. Icon 2 is the best place for you if you want to be at the heart of it all. Granite countertops; laminate hardwood; galley style kitchen with stainless appliances; top of line kitchen cabinets with backsplash; upgraded light fixtures; full closet shelving/hangars.Underground, heated, secure parking stall. Master bedroom with ensuite and in suite laundry. Heat and water included. Huge wrap around balcony with gas outlet for barbeque.Easy access to Grant MacEwan, NAIT; Royal Alexander Hospital. A few footsteps from LRT (light rapid transit) with access to University of Alberta Main and South campus; University of Alberta hospital and Health Sciences Center plus northbound to Commonwealth Stadium and Northlands/Rexall Place. Location; Location!
Fort Saskatchewan
Rental Investment Opportunity
Welcome Home! Wonderful unit in Fort Saskatchewan West Park Location close to shopping, restaurants, and easy access to main highway. Unit comes fully furnished and move in ready which also makes great investment fully furnished rental property. Third floor unit comes with balcony and 1 above ground stall. Great secure building with elevator in awesome location. Visitor parking. Large entrance way leads to open floor plan with kitchen, living room, and dining. All appliances are included. 1 Large bedroom and full bathroom with in suite laundry. Great investment or place to call home.
Contact Me!
If you are interested in any of these properties or would like to chat about the current rental market, call me direct at 780 777 9703!
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.
Buying a home is an important financial commitment. Home ownership may be the biggest investment you’ll ever make, so it’s important to do your homework and take your time. There’s a lot to think about when choosing a mortgage including the size of the mortgage, the down payment you’ll make, amortization period (the amount of time you’ll take to pay off your mortgage), the term of the mortgage and whether you’re most comfortable with a fixed or variable rate of interest.
Different prices for different areas in Alberta. It is important to know what area of the city you are looking at and what you have to work with. I am extremely knowledgeable and well-informed of current market rates in Sherwood Park, Fort Saskatchewan, Edmonton, St. Albert, Spruce Grove and surrounding area. I have had experiences with a LOT of first time home buyers, investors and much more. I also have a property management division under our brokerage (including a few rentals of my own) so I will definitely be able to help you and guide you through the home-buying process.
Home ownership is a big decision. It’s important to do your homework and take your time when deciding on a mortgage. Click here for a mortgage calculator. Here is my beginner’s guide to mortgages!
Understanding Mortgages
What is a Mortgage?
When you buy a home, you may only be able to pay for part of the purchase price. The amount you pay is a down payment. To cover the remaining costs of the home purchase, you may need help from a lender. The loan you get from a lender to help pay for your home is a mortgage.
A mortgage is a legal contract between you and your lender. It specifies the details of your loan and it’s secured on a property, like a house or a condo.
With a secured loan, the lender has a legal right to take your property. They can do so if you don’t respect the conditions of your mortgage. This includes paying on time and maintaining your home.
How a Mortgage Works When Buying a Home:
The buyer uses funds from a mortgage to pay the seller for the property and the buyer repays any money borrowed, plus interest and fees, over a set period of time (e.g., 5, 10, 15, 20 or 25 years).
The buyer pays the lender generally every month. A portion of the payment, the principal, is used to pay down the amount borrowed and a portion of the payment is applied to interest.
The mortgage is registered on the property with the applicable provincial or territorial land registry office.
In many cases, the buyer can move into the new home as soon as the closing is complete (contract terms can sometimes specify a later move-in date).
How Much Mortgage Can I Afford?
The rule of thumb is you can afford a mortgage where your monthly housing costs are no more than 32% of your gross household income, and where your total debt load (including housing costs) is no more than 40% of your gross household income. This rule is based on your debt service ratios.
Most lenders use two calculations to determine the maximum amount you can afford:
Gross Debt Service (GDS) Ratio. Housing costs such as your mortgage, heat, condo fees and property taxes make up your GDS.
Total Debt Service (TDS) Ratio. Adding any additional debt payments such as student loans and credit card debt to your GDS gives you your TDS.
Home buying programs, plans and incentives
Before you buy a home, consider the programs, plans and incentives available to you.
This plan allows first-time home buyers to withdraw up to $35,000 per person from their Registered Retirement Savings Plans (RRSP), without tax liability, to buy a home in Canada. You don’t have to start paying back your RRSP until two years after the purchase of the home. Before cashing in your RRSP to buy a home, weigh the pros and cons carefully. To be eligible for the HBP:
Written agreement to buy or build a home
You intend to occupy the home as your principal residence
First time homebuyer
Your HBP balance on January 1 of the year you withdraw has to be zero
*IMPORTANT Terms You Need to Know
Pre-Qualification: This is ideal when you’re only thinking about buying a home. A lender will collect basic information about your finances and then give you an approximate figure for how much they’d potentially be willing to lend you to buy a property.
Pre-Approval: Getting pre-approved for a mortgage is the next step after pre-qualifying. In this stage a lender will verify the financial information you provide them and run a credit check. If you are pre-approved, it indicates that the lender is committed to providing you with a loan. However, the final amount they’re willing to lend you and the terms of the mortgage are subject to change based on an actual property valuation as well as market fluctuations.
The Mortgage Stress Test: This is a calculation of whether you can still afford to pay your mortgage in the event that rates increase. The results of this stress test will determine your qualifications for the mortgage you’re looking to take and applies to all home buyers, including those who make a 20% down payment on their home.
Down Payment: This is the amount of money you’re required to pay upfront when buying real estate. The bigger your down payment, the smaller the mortgage you’ll need. The size of your down payment depends on the purchase price of your home. For example, if you spend less than $500,000 on a home, you’re only required to put 5% of the purchase price down.
Mortgage Rate: This is the interest rate you’ll pay on your mortgage. This will determine how much you pay in interest over the life of your mortgage. Your mortgage rate may change depending on if it’s fixed or variable (more on that below).
Closing Costs: These are expenses that you’re required to pay out of pocket leading up to your closing date (move-in day). Examples of closing costs include real estate lawyer fees, land transfer taxes, a home inspection, and movers. It’s a good idea to budget between 1.5% and 4% of a home’s purchase price towards closing costs.
Requirements for getting a mortgage
Whenever you apply for a mortgage, lenders are looking for three major things. As long as you have the following, you should be approved:
3 important factors: credit score, income, down payment!
A good credit score. Lenders want to ensure that you’re creditworthy. A lender is generally looking for a borrower with a credit score above 670 or 680 with no late or delinquent payments. However, if you have late payments, or, in some cases, if you’ve filed for bankruptcy or a consumer proposal, you may still be able to get a mortgage. A lender will usually want to know the reason why you have a credit blemish. If it’s due to life circumstances outside your control (e.g. you got sick or were laid off from work and fell behind on bills) and you can prove you’re a responsible borrower otherwise, you may still be able to get a mortgage.
A down payment. You need to have at least 5% of the purchase price saved to qualify for a mortgage. If the down payment funds are from a bank account, the lender will usually want to see a 90-day transaction history. If the funds are from investments or RRSPs, you’ll usually need to provide three monthly statements.
Secured income. Having a full-time job will prove that you have a steady income.Lenders are looking for borrowers with a stable source of income. You’ll need to be able to prove that your income is sufficient to regularly make mortgage payments.
Even if you don’t meet all the criteria, you may still have options. Some lenders are willing to work with borrowers with a lower credit score, but you may have to pay a higher interest rate. Freelancers and low-income individuals can still get a mortgage, but they may need to prove their income or get a co-signer.
Mortgage Stress Test
The official stated purpose for the stress test is to protect consumers and financial institutions from trouble when mortgage rates rise in future.
Regulated lenders determine how much you can borrow using a rate set by the federal government. As a result, the rate is set higher (currently much higher) than rates being offered by lenders. This buffer means consumers should be able to continue to pay their mortgage if rates go up.
Speak with a Mortgage Specialist to discuss all mortgage options available to you.
Refer: Mortgage Innovation Solutions
I have been working with Kris Crawford of Innovative Mortgage Solutions for a number of years and I would highly recommend his expertise. We will work hand-in-hand to provide you with the best options as a first time home owner!
Ready to start your home search? I have experience and knowledge in Edmonton and Surrounding area including but not limited to Sherwood Park, Fort Saskatchewan, St. Albert, Beaumont, Lamont, Bon Accord, Spruce Grove and more!
This article offers general information and should not be regarded as a complete analysis of the subject matter discussed. It is not intended as legal, financial or other professional advice. Consult a professional advisor regarding your specific situation.
While doing the work yourself can save you the significant commission rates many real estate agents command, for many, flying solo may not be the way to go–and could end up being more costly than a realtor’s commission in the long run. Buying or selling a home is a major financial (and emotional) undertaking.
1. Expertise & Experience
Even though you do not necessarily think that you need an expert to sell a home, hiring professional real estate agent who specializes in your area or property type is critical. With 16 years of experience as a Realtor and Property Manager, I have seen first hand hundreds of different scenarios when buying and selling a home. From all aspects of marketing and promotion to legal issues, a real estate agent can guide you through the process and in a lot of cases, saving you time and money. The key is to find the right agent that has all the professional and personal attributes that you require.
3333 28 Ave, Edmonton, AB sold at 99% List Price
2. The Selling Process
Real estate agents can be put in charge of all the listing and selling requirements as well as client visits. This saves you a lot of time and effort so that you can do more productive tasks while they are taking care of the matters related to your home. For example, if you were to list your property let’s say on Kijiji or Facebook Marketplace, you would have to respond to a lot of inquiries (both from serious and non-serious viewers!). If you had to be the only one to sift through property listing responses and all open house viewing, all your free time would go to that.
With a real estate agent, we can do the following:
Tap into their network and contacts for a potential buyer
Handle all of the required paperwork to sell your home
Double check the legal matters
3. Knowledge & Familiarity with the Neighbourhood
Real estate agents possess key knowledge and information about your neighbourhood. From Sherwood Park,Fort Saskatchewan, St. Albert, Edmonton and Surrounding Area, I have worked in these neighbourhoods gaining extensive knowledge of the market. We can help you identify:
Key selling points
Price points in the neighbourhood
Data on schools
Demographics
Your agent knows what kinds of upgrades will make your home look more attractive to buyers compared to other houses in the area. With a FREE Comparative Market Analysis (available here), we can take a look at the current listing/selling points around your neighbourhood – determining the current value of your property! This will give you an edge in terms of helping you sell your property more quickly.
4223 Prowse Way, Edmonton, AB – Pending within ONE hour of listing!
4. Negotiation Knowledge
When you find a potential buyer, a real estate agent will try to get you the best price in all market conditions. Negotiation skills are very important when selling your home, since this makes or breaks your deal. With a real estate agent, you can rest assured that not only do you have someone working on your side, the agent is there for your protection so it’s a win-win situation.
5. Future Business Relationships
A successful real estate builds credibility based on the results of forming good relationships with his or her clients. To this day, I am in constant communication with all past clients! Because of this, they give great importance and attention to detail to make sure that their clients are satisfied and happy. These positive client relationships result in referrals of an agent to friends and acquaintances which builds trust based on past performance. It also means that agents have an established set of potential buyers that you can potentially tap into from previous listings.
As you can see, there are many extremely important benefits to hiring a real estate professional. The sale or purchase of a home can be one of the most important financial buying or selling decisions in a person’s life. As such, its extremely wise to get the help of a real estate professional working on your side.
If you are interested in working with me, feel free to give me a shout at 780-777-9703!
94 Ridgepoint Way, Sherwood Park, AB – SOLD at list price!
Want your own country oasis but still live within the city limits? Or how about having the space to jumpstart or grow your business? This Edmonton Acreage For Sale has tons of potential opportunity for you, your business and/or family!
Built: 1973
Price: The home and the one-of-a-kind city lot can be yours for $1,300,000.
Brief Description: Beautifully maintained home located in the Southeast corner of Edmonton, AB. This established property offers prime location with both a beautiful home and a large shop.
Impeccable kitchen and dining area!
Home Specs: 3 Bedrooms, Main Floor Office/4th Bedroom, 3 Updated Bathrooms, Updated Kitchen, Finished Basement, Double Heated Garage & So Much More! Air Conditioning included in the home.
28x50 Heated Hobby Shop
30x50 Cold Storage Building
For over 25+ years, the previous owners of this home used it for a General Contracting Business! The property boasts incredible potential for a new business.
Why Acreage Living within City Limits?
The thought of living on an acreage is incredibly appealing to many Canadians — to those who value the peace and quiet that acreage life can offer, the space between homes, and the fresh country air. Check out this awesome article to help in your decision!
Perfect living area to lounge around
For any more information on this property or would like to book a showing on this Edmonton acreage for sale, give me a call at 780-777-9703 or send me an email at expert@jarettjohnson.
Location of 3333 28 Avenue, Edmonton, AB:
CONTACT ME:
For the latest updates on this listing, would like to know more or schedule a showing, please give me a call at 780-777-9703 or email me at expert@jarettjohnson.com.
Before we get right down to the finances, take a moment and consider the advantages and disadvantages of owning a home. Are you ready for the costs involved in homeownership, such as mortgage payments, utilities, repairs, and maintenance?
Buying a home isn’t only about money, but money does have a lot to do with it. So how do you decide if you’re financially ready for homeownership? Here’s a step by step guide to get you started:
Calculate your current household expenses – add up all of your current costs such as rent, utilities, groceries, clothing, entertainment, transportation etc.
Calculate your current debt payments – car payments, student loans, credit cards, etc.
Add it all up – anything left over?
How much can you afford?
The first rule of affordability, is that your monthly housing costs shouldn’t be more than 32% of your gross monthly income. Housing costs include mortgage payments, property taxes and heating. If you’re thinking of buying a condominium, half the condo fees are also included in your monthly housing costs when a bank or broker is calculating what you can afford.
Secondly, your total monthly debt payments should not be more than 40% of your gross monthly income. Monthly debt payments include the housing costs noted in the first rule above, plus all other debt payments (student loans, car payments, credit cards, lines of credit etc).
A mortgage broker can help you work through all of these calculations, and give you a pre-approval or pre-qualification to buy a home. They can also give you advice to help you increase the amount you can qualify for, such as saving more money for a down payment or improving your credit score. I’d be happy to connect you with a good mortgage broker, contact me for details.
Step 2: Determine the Right Type of Home for You
Buying a home is a long term commitment, you need to think about your future needs when you buy a home. Think 5-10 years down the road and try to find a home that will grow with your needs. If you’re not ready for a 5 year commitment, you should probably re-think your home buying plans. Here are some basic considerations to help determine the type of home that’s right for you:
Size (including number of bedrooms & bathrooms)
Parking
Distance from work (do you also need a home office?)
Distance from school (what transit options are available?)
Outdoor space
Lifestyle needs
Type of home (single family, condo, townhouse etc)
Step 3: Find the Home
So you know what you can afford, and you know the type of home you want, now you just have to see if it’s out there. This is the step where many people start making mistakes, such as calling listing agents, visiting open houses and giving confidential information to agents who don’t represent them. The seller’s agent has a contract with the seller, and must represent their best interests, not yours.
You’ve already found the best web site to find homes for sale in the Edmonton, Fort Saskatchewan, Sherwood Park and St. Albert area, a real estate agent can help narrow down your search, to homes and areas that will work the best for you. Don’t just work with the first agent you meet, select an agent that knows the areas you’re interested in, is qualified, has experience, is well trained, responds to questions quickly, sells lots of homes, has time to work with you. Our team of agents at Realty Executives Focus have years of experience working with first time home buyers and sellers alike!
Step 4: Write an Offer
Your real estate agent will help you go through the important steps of writing a good offer on a property. There are some important parts of the offer to think about in advance, such as the deposit, down payment, conditions, possession date and more. There are far more elements to writing and offer than can be covered in a guide such as this, so here are some general points to consider. Although a deposit is not technically required, the seller in almost every case expects one within a few days of the offer being accepted; the deposit will eventually make up part of your deposit. You can write conditions in your offer, such as an inspection condition or a financing condition. If you don’t remove the conditions by the time agreed to in the offer (usually 7-10 days) the deal “collapses” and you’ll get your deposit back (usually in a week or so). If you remove your conditions, the deal will proceed and you’ll be a proud homeowner in the near future (the agreed possession date). Of course, all of these points are general examples and will likely differ when you actually write an offer on a property.
Step 5: Closing
Closing, also known as possession day, is the day that you and the seller agreed in the purchase contract as the day you’d take possession of the home. Most of the time, closings go smoothly, and buyers get their home on the agreed date, but sometimes there are problems. Assuming there are no problems, the day will generally go something like this: 1. Your lawyer (yes, you need a lawyer!) will request that your lender to releases the funds. 2. Your lawyer will send the funds to the seller’s lawyer. 3. When funds are received, the seller’s lawyer will “release the keys.” 4. Your agent will obtain the keys and meet you at the property. 5. Welcome to your new home!
Many times things don’t go quite as planned, and your real estate agent can guide you through all the ins and outs of getting qualified, finding a home, writing and offer, removing conditions and taking possession. Contact me when you’re ready and we’ll get you started in the right direction.
Fallacies about the buying process keep many renters from exploring the possibility of buying a home, but savvy real estate agents know a little education can go a long way in turning many of these would-be renters into lifelong homeowners. Many renters consider home ownership out of reach, have concerns about economic uncertainty and fear of a housing downturn as reasons to sit on the sidelines, with many preferring to watch the market before making a move to buy.
1. “Renting makes more sense because I may move in 5 years.”
Sure, while it may make more sense to rent than to buy over a short term of a few months, the equation can easily flip with buying being the best value for a homeowner planning to stay for at least five years and, in some cases, as few as two years!
2. “I don’t make enough money to buy.”
Income is important but not as limiting as people may think. Just as there are high income earners who are “house poor” (spending more than 30% of their income on their mortgage), there are people with modest incomes who are able to live comfortably in their own home.
Also, renters must bear in mind that rent is almost always guaranteed to go up, while the payments on a fixed-rate mortgage will not, making ownership the more budget-friendly approach over the long term.
3. “I can’t save enough for a down payment.”
Many are not aware of the many programs such as Home Buyers’ Amount ($5,000), Home Buyer’s Plan (withdraw from RRSP), GST Rebate, and Government Equity Program that allows first-time buyers to close on a house with almost nothing down!
4. “There’s nothing in my price range.”
Once a renter has been pre-approved for a mortgage, they have a good idea of their target price range. Then, when they start looking at the entry-level inventory, they find themselves up against a competitive market.
Here’s where I can help you out! I will guide you as a first-time buyer into looking at different areas where homes are in your price range, but also help you find those rarer listings where a home that’s not necessarily move-in ready yet in a nicer neighbourhood is selling for less.
I have been working alongside Kris Crawford at Innovative Mortgage for a long time and I highly recommend contacting him for mortgage related information!
5. “The perfect house is waiting for me.”
Renters who have watched many real estate TV episodes may have unrealistic expectations about buying a property.
First, they may not be aware that every property has pros and cons. It’s important to remind them that finding an affordable home is going to involve some trade-offs, but ultimately, will offer the security and accomplishment of ownership.
Second, good houses go fast, so first-time buyers must be financially, mentally and emotionally ready to act.
Check out my current listings or if you see a house you like – let’s make something work!
Be sure to check out our new Renter-to-Homeowner program launching soon!
