How to Make Your Offer to Purchase More Attractive to a Home Seller

The Spring Real Estate Market appears to have started in Kitchener - Waterloo already.  In the last week I have been involved in 2 multiple offer situations...

So, if you find that perfect home and other people are putting offers on it and you have to compete, how do you make your offer more attractive?

Plan Ahead
You have to plan four months before you’re going to buy.  Check your credit for accuracy and avoiding making any big purchases or taking on any big debt during this time.

Debt brings down your credit score and increases your debt-to-income which are two critical things banks look at when qualifying and preapproving you for a loan.

If your debt-to-income ratio is too high, experts recommend paying down as much debt as you can to lower this ratio.

For more information on debt and credit score click these links debt service ratio and credit score

Set Your Home Price
“Don’t look at a $300,000 home if all you can afford is $250,000,” says Ameer. Less supply on the market increases the likelihood for multiple offers, and you won’t be able to compete. “If properties are selling at 95% of asking price, don’t think you’ll get a deal at 85% of asking price,” she says.
If you do spot a great deal on a house, don’t wait days to make an offer, warns Corbett. Since time isn’t on your side, learn how to spot a great deal by researching an area’s home prices.

“Do a little due diligence and go to open houses—do your homework,” says Corbett. Being educated will help you negotiate and could prevent you from paying more for a house than it’s actually worth because you’re emotionally involved.

Know that Cash is King
The more cash you have, the more appealing you are as a buyer. Putting 20% or more down makes you look more financially stable and gives sellers comfort that you’ll qualify for a mortgage, says Corbett.

Cash can cover a multitude of problems when you make an offer, whether it’s difficulty with the mortgage process or a lower-than-expected appraisal. “A buyer can contribute more cash to cover the different between the appraisal and offer price,” says Blomquist.

If your appraisal is low, don’t expect the appraiser to come up in value, says Ameer. “Appraisers are under scrutiny with the banks and they have to justify everything they do.” They’re required to follow Uniform Standards of Professional Appraisal Practice (USPAP) guidelines, as well as lender guidelines.

Appraisers use surrounding properties for comps, says Ameer, and if there are only foreclosures, that’s a bad hand to be dealt. You can always review the appraisal for discrepancies and suggest different comps but don’t expect the value to change.

Get Preapproved before Your Search
Getting prequalified for a mortgage gives a ballpark for what you can afford to buy and will streamline your search process.

If you’re financing your house with a mortgage, have a pre-approval letter with you and if you’re paying cash, have proof of funds that shows you’re good for it.

Getting preapproved will also help you to compete with an all cash buyer.

When you know what you can afford and are preapproved, you won’t be shopping outside of your price range. It makes you a much stronger buyer when you can turn in that preapproval letter with your offer.

Limit Your Conditions
Experts suggest having as few conditions as possible to be an alluring buyer. Don’t overcomplicate your offer to the seller. Certain conditions based on your ability to get a mortgage, the appraisal and home inspection are standard, but piling on more could make the seller less inclined to work with your offer.

Make your offer based on a satisfactory home inspection. It gives you the opportunity to walk away if you find in an inspection that there are too many problems with the house.

Making your offer conditional on you selling your house first will make you a less appealing buyer. If you need to sell your house before buying a new one, then sell your home first and rent or move in with family or friends while you look for your new home.  As a seller, you’ll sell that home quickly. Then as a buyer, you’re much more appealing than a buyer whose offer is conditional on a sale.

Add a Personal Touch
Sellers like to hear why you want to buy that house. You become a person who really loves and appreciates the home instead of just a number.

Be Flexible with Closing Dates
Let the seller know that you would be flexible on the closing timeline. Find out when the seller would ideally like to close on the house and see if you can match it.

As a REALTOR, my job is to provide the best guidance possible and help you reach your goal of being a home homeowner.

Please contact me today to discuss the market or to receive a free Home-Buyer's Toolkit.

The Canadian Housing Market Overview for 2013

Canadian Market: Overview

 

Resales: According to CMHC the market will be relatively stable in 2013, but rise along with economic conditions in 2014. The forecast for pricing on MLS should be equal to inflation, or slightly below, in 2013 and 2014. The average MLS® price is expected to rise to $367,500 in 2013 and then to $377,300 in 2014.

 

Housing Starts: Total housing starts are forecast to decline in 2013 in Ontario before rising modestly in 2014. Improving employment, economic growth and net migration in 2014 will help stabilize or support modest rebounds in housing starts in 2014 for most provinces. 

(Housing starts is an economic indicator that reflects the number of privately owned new houses (technically housing units) on which construction has been started in a given period.)

 

OVERALL: The Key Factors as outlined by CMHC have noted an expected increase of 1.6% employment rate, overall increase in net migration and in Economic growth which are the key factors in maintaining a stable housing market. Their next report will compare up to date statistics to  the estimations made by CMHC of these three key factors. In addition, CMHC identifies a improving U.S. economy will benefit Ontario’s labour market. Keep a close eye on the U.S economy as it has significantly decrease its growth rate since 2012.

 

 

Key forecasts in Ontario

 

Price forecasted  MLS® price is $382,200 for 2013 and $390,000 for 2014.

 

sales expected to moderate to 191,300 units in 2013.

 

Single-detached starts will reach 23,300 and 24,600 units in 2013 and 2014, respectively

Contact me today to discuss current market conditions in YOUR neighbourhood.

Painting - How much paint to you need? Here is a simple paint calculator!

With Spring upon us many home owners, whether they plan to sell or not, put their mind to painting their homes.

 

You've decided on a colour, but how much paint to you need?

 

Paint Calculator: Multiply the height of each wall by it's width = wall area. One gallon for every 450 sq ft. – really good to know!

Outstanding Kitchener Home for Sale

Check out the video for this outstanding property.  Located on a court, backing on to a raving and walking distance to a Community Centre and Library.....

http://www.digitalnewmedia.ca/louie/oldcarriage

3 Common Home Buying Mistakes to Avoid

Buying real estate for the first time is a very exciting step in life.

It is likely to be one of the biggest financial commitments that you make, so it’s very important to navigate the purchasing process wisely.

Many first-time home buyers make rookie mistakes that bring on negative consequences and a lot of frustration.
Outlined below are common errors home buyers make, so you can learn from their missteps and avoid them yourself.

1. Buying More Than What You Can Truly Afford
Just because the bank says that you qualify a certain amount for a mortgage doesn’t mean that you have to choose a house at the very top of this price range.
Many people get carried away and buy the most expensive house that they qualify for.
If something unexpected happens, they may find it difficult to keep up with their monthly mortgage payments later on.
Remember that you will also have student loan payments, vehicle costs, credit card bills, health insurance, groceries, retirement savings and other expenses, so make sure that your mortgage payments will comfortably fit within your budget.

2. Failing To Get A Home Inspection
Before buying a house, you should always have a professional inspection done. Not doing so is a big mistake.
You don’t want to get stuck with hidden damage that could saddle you with the expense of ongoing repairs.
Hiring a professional to assess the home’s condition is absolutely essential before making your final decision.

3. Disregarding Your Future
When you are buying real estate, don’t just think about how the home will work for you in the immediate future.
Also consider what your needs will be five, ten or even 20 years from now.
Find out the development plans for the neighborhood.
Look for reputable schools if you intend to start a family.
And consider whether the street’s home values are likely to increase or decline in the future.

Your Next Step
Don’t let the home-buying process overwhelm you!
Learn from these common first-time home buyers’ mistakes, so you can avoid them.

Contact me today for a free Home-Buyer's Toolkit or to discuss current market conditions!

Home Inspections are a Critical Stage in Any Home Purchase

So, you’ve decided to buy a home, you even put in an offer. You’re excited because the home you’ve chosen has all of the amenities you are looking for and the location is perfect. Well, before you sign on the dotted line, be sure that you know what you’re getting yourself into. Many banks and other lending institutions require an inspection as part of the home buying process, but it is important that you protect yourself from unexpected repair costs by investing in a home inspection before you buy a house, even if you are purchasing the home with cash.

Choosing the Right Home Inspector

Finding a good home inspector is like finding a good doctor. It can be difficult to do, and unfortunately, you only have a small window of time to find one when you are buying a new home.

Luckily, most qualified realtors have a rolodex of contacts that they know and trust, and should be able to recommend someone for you to use. If you are selling your home without a realtor, or would like to choose an inspector on your own, be sure to retain a home inspection company with top credentials.

A lot of information will be given to you at the time of inspection, much of it difficult to comprehend. With that in mind, it is important that you make sure your inspector will provide you with a written report, explaining each of the items in detail. If they tell you it is a basic checklist, you may want to choose a different inspector.

Be there! It is important that you attend the home inspection. You will be able to see how thorough they are, ask any questions you may have and understand what they are looking for and what they may find.

Equipment – If your home inspector shows up with simply a notebook and pencil in hand, you may want to send him on his way. A good inspector will come armed with a variety of tools and equipment; such as, electrical testers, gas and carbon monoxide detectors, a moisture meter, a ladder, flashlight, level, etc.

What will they look for? Be sure that all of the following points are fully covered. There’s nothing more important than knowing that the home you are purchasing is structurally sound including the framing and foundation. They should inspect the condition of the roof, the exterior facades, doors, windows, the land grading around the home, decks, patios, porches, driveways and sidewalks.

In addition to ensuring that the home is structurally sound, a good inspector will also inspect the plumbing, heating, air-conditioning, and electrical systems as well.

The interior should also be inspected for possible issues, such as past water damage or materials that may be contain asbestos.

All electrical and mechanical components of the home should be inspected as well. Things to look for include; aluminum electrical distribution wires, electrical systems that are not adequate for modern usage, lead and galvanized steel water supply pipes, aged and inefficient heating and air-conditioning units, etc. If the home has a well and/or septic system, these, too, should be evaluated.

If possible, you may want to consider optional testing of underground storage tanks, testing paint and/or drinking water for lead or bacteria, testing the air for radon gas and testing the foam insulation for urea formaldehyde.

The Results – At the end of the inspection, have the inspector give you a thorough summary of the findings. Most inspectors will have the final report available the following business day.

Next Steps – Upon completion, you will know the condition of the home you are purchasing (good and bad), what repairs are needed (if any) and if they require immediate attention. Don’t worry if they’ve found something – a good home inspector is sure find some defects (no home is perfect), but you need to weigh the positives against the negatives and determine your next steps. If there are significant issues, you may want to negotiate a better sale price based upon the defects uncovered by the inspector, or ask that the seller pay the repair fees.

For a free Home-Buyer's Toolkit or to discuss a possible home purchase, please contact me today.

"Ontario Renovates" - Forgivable Loans to Renovate Your Home

Home owners in Waterloo Region know how quickly repair costs can add up.

The good news is that there is now a program available to help cover certain expenses for low-to-moderate income households living in modest homes.  This may include condos, townhouses or free standing homes as long as they are owned by the occupant.

Qualified applicants may be entitled to forgivable loans up to $25,000 to housing repairs, energy-efficient upgrades or accessibility modifications.

check out www.regionofwaterloo.ca/housing for more information or contact me anytime.

Thinking of Buying a Condo - Here are the 4 "Rs" you'll have to consder

Consider These Four "R's" Before Buying a Condo

Condos offer first-time buyers an affordable entry into home ownership but buying a condo isn't the same as buying a house. One major difference is that, on top of your mortgage payments, you'll be responsible for maintenance fees for the building.

And there are other things to think about. Consider these four "R's" before committing to buying a condo.

Rules

Condo corporations have rules and it's important to understand them before you sign an offer to purchase. When you buy a condo, you are entering into a shared ownership arrangement and that means you'll have to get along with everyone else who lives in the complex. Thus, there are rules.

Condo rules cover everything from pet policies to whether or not you can rent your unit to someone else. The rules are spelled out in the official documents (Status Certificate) you'll receive and should be carefully reviewed with your lawyer.

Renovations

There will likely be restrictions on any renovation plans you may have for your unit. For example, you will probably need to have the approval of the condo's board of directors before you can move an interior wall.

Restrictions

Other restrictions may include things like what colour you can paint exterior features such as the door, what you can and can't have on your balcony, what you can do on the balcony, noise restrictions and what can and can't best stored in your locker.

With regards to noise restrictions, one would hope that, as you'll be living in close proximity to others, late-night parties can be avoided and tv volume levels can be kept to acceptable levels.

Repairs and Maintenance

The documents (known as a Status Certificate) you'll receive will also make clear what repairs and maintenance you are responsible for and what is covered by your maintenance fees.

In general, the association will take care of all of the exterior upkeep of the buildings, grounds and common areas such as the pool, tennis courts and play areas. These areas are called the Common Elements. This can vary somewhat from association to association, so be clear about what exactly will and won't be covered.

As the owner of a unit, you will be responsible for any maintenance and repairs inside your unit, such things as interior partitions, fixtures and improvements, paint, tiles, wallpaper, etc. In other words, it's pretty much the same as it would be if you owned a house.

 

Please contact me today if you have any questions or would like to receive a free Home-Buyer's Toolkit.

Top 10 Worst Home-Showing Offenses - Trying to sell your home? Don''t do anything on this list!

When it comes to presenting a home to buyers, some sellers are clueless.

Some sellers are leaving buyers with a bad impression?  These offences can cause buyers to run for the exit and not give your home a chance.

1. Leftover home owners

By far, one of the top offenses cited by buyer’s agents was home owners still lingering around when agents arrived with clients to preview the home. Awkward encounters ranged from buyers finding sellers taking a shower, asleep in the bed, to even the “stalker sellers” who liked to follow buyers and the agent all over the home to see what they thought.

With the exception of the “stalker seller,” many of the home owners who were still at home blamed their listing agent for not giving them enough advance notice about the appointment prior.

2. Pets and their messes

Numerous agents also cited the not-so-friendly dog and kitty encounters as a top offense. Even pets left in a crate can pose a distraction since they might make noise the entire time others are in the house. Plus, if they seem mean, the buyer might not even step in the room.

Remember, a potential buyer should leave your home with a good impression, not one where they were uncomfortable.

3. Bad smells

A displeasing smell can really turn buyers off. Common offenses include cooking smells lingering around the home, such as garlic, fried bacon, or fish. Also, watch for cigarette smoke and animal smells - which tend to be the worst.

Sellers get immune to the smell that their pets have embedded on their property. Anyone opening the door will smell it immediately -- even if there are air fresheners trying to cover up the smell. If you have a pet, there will be an odor. Don’t send your buyers away: Paint and clean the carpeting. Take the odor seriously and do what is needed, even if it means replacing the carpet.

4. Critters running wild

Wild animals and pests roaming around is a surefire way to send buyers running. Deal with these issues before listing.  Mouse and ant traps laying around the home won't entice potential buyers into making an offer.

5. Odd home makeovers

Do-it-yourself disasters are also prevalent, like doors opening the wrong way or unprofessional paint jobs. Also, rooms not being used for their intended purposes can confuse buyers, such as an office being used as a bedroom even though it has no closet.

6. Dirt and clutter

There were a number of offenses cited when it came to cleanliness: Dirty laundry piles, unflushed toilets and toilet lids in the upright position, dishes on the counter or in the sink, unmade beds, clothes scattered about, soiled carpets, dirty air conditioner filters, and overflowing trash cans.

7. Personal information left in plain sight

Sellers should be careful not to leave in plain sight important documents that may pique buyers’ curiosity. Some agents say they’ve seen personal information like bank and credit card statements—even mortgage payoff notices—left on the kitchen counter.

8. Too dark

Dark or dimly lit houses aren’t showing the home in the best light.  Trying to be energy efficient while trying to sell your home is not a good idea.  Don't use energy efficient bulbs, have all the lights on for showings and use extra lighting if needed.  Also, all the bulbs should be the same, not a mish mash of different wattage and types.

9. Keys missing from lockboxes

All too often, agents arrive at a listing appointment with their client only to find there’s no key to get in. Make sure the agents showing have easy and clear access to get into the property.

10. Distracting photos

Be careful of the photos displayed on the walls too.  Nothing racy (please take down your "boudoire" photos.  Plain abstract prints are the best, and they making adding a splash of colour in each room easy with a throw or pillow that draws a colour from the artwork.

To discuss staging ideas or for a complimentary home evaluation, please contact me today!