4 "MYTHS" About Why You THINK You Can't Buy a Home...

A recent study by the Joint Center for Housing Studies at Harvard University revealed when renters were asked why they do no plan to own in the future, financial constraints were a more common response than the perceived lifestyle benefits they may receive from renting. Today, we want to go over those financial challenges and see if we can put some fears to rest and also clear up some misconceptions. Here are the top four financial hurdles that cause renters not to buy:

You Cannot Afford a Home

Well over 50% of renters consider this as a financial barrier to homeownership. However, study after study has shown us that there are major misunderstandings about what is required to purchase a home.
The biggest misconception is the amount of a down payment required. A recent survey revealed that 44% of respondents believed that a 20% down payment was required. In actuality, mortgages are available with as little as 5% down.

The same survey showed that 30% of respondents believe that only individuals with ‘high incomes’ can obtain a mortgage.

You Do Not Have Good Enough Credit to Get a Mortgage

The survey mentioned above showed that 64% of respondents believe they must have a “very good” credit score to buy a home. Most people don’t realize that the average credit score for closed loans has actually dropped 24 points in the last two years. For more information on credit scores click here.

It’s Not a Good Time to Buy a Home

Determining when is the right time to buy a home from a pure financial calculation can be difficult. There are two elements of the cost of a home: the price of the house and the mortgage interest rate. When considering a purchase, you want to have at least an indication where prices and mortgage rates are headed. According to over 100 experts, house values are expected to increase by almost 20% between now and 2018. And Freddie Mac recently projected that mortgage rates would be as much as one full point higher by this time next year.

With both prices and interest rates projected to increase, now is the perfect time to buy a home.

It’s Cheaper to Rent than Buy

This is a myth that doesn’t want to die. However, Trulia recently reported that, in fact, buying is actually dramatically cheaper than renting. Here is what they said:

 

Bottom Line

If you are even thinking about buying, get the facts from a trained professional. You may be pleasantly surprised by what you find out.




Contact me today to discuss your options or for a FREE Home-Buyer's Toolkit!

How to Remove Carpet Indents Left By Furniture

This is a great tip on removing the indents in your carpet left by furniture.  The slowly melting ice fills up the carpet fibres and makes them swell.

It doesn't show it in the video, but I recommend you gently massage the area with your fingernail   once it starts springing back and lightly blot with a clean towel and blot heavily around the edge of it.

It should be looking like new in no time!

You've Found the Perfect Home, But They Are Asking Too Much - Now What?

          

You’ve found a house you love. It’s the perfect size, layout, condition and even has your must-haves. There's only one problem. The seller’s asking price is too high. It's time for the phase of home buying that most people dread and even fewer are skilled at: the art of negotiation.

Make no mistake, negotiation is part skill and part art form. An experienced buyer’s agent will know how to finesse the contract negotiations and save you a lot of hassle. Your gut might tell you that the asking price for the house is too much, but you'll have a better chance of getting a lower offer accepted if your agent can back it up with facts.

A few key elements:



Comparables and Statistics
The best way to determine the fair market value of a house is to measure its asking price against similar homes that have sold in the same area, providing a set of numbers known as comparables or comps. Your agent will handle this, providing data from the local multiple listing service, or MLS. This gives you a baseline starting point. Your agent will also consider other factors, including the original listing price of similar homes versus their selling price, as well as the number of days the house has been on the market. All of this information can help make a better factual case for making an offer lower than the asking price.

Following a Process
Your agent will prepare a written offer to submit to the seller or seller’s agent. Along with this written proposal, your agent can present facts such as the comps and other data to justify your offer. When the seller sees this in writing, you have a much stronger case. Also, writing a letter to the sellers about your situation and your feelings about their home can make a big impression.

Seller Motivation
One of the strongest negotiating factors is understanding the seller’s motivation. This may be hard to do on your own, but your agent may be able to help. If your agent learns, for example, that the sellers are moving and have closed on a house elsewhere, this tells you they're probably motivated to sell quickly. Knowledge is power – especially in negotiations.

Making Your Lower Offer Work for Them
Sometimes buyers can make their lower offers more palatable to sellers by offering concessions or compromises. Something as simple as being flexible on a closing date can be attractive. If, for instance, the sellers are facing a one-month gap between the sale of the current home and their purchase of the next, they might appreciate it if your offer included an extension of the closing date or an opportunity to lease their home back from you for a month. If you don't need assistance from the sellers to pay closing costs, they could see this as a big plus. Also, having a pre-approval letter from your mortgage lender is one of your best advantages. This tells sellers that your financing is secure and not likely to fall through.  It can be a gamble for sellers to accept an offer from someone who hasn't yet secured financing.

Making the Asking Price Work for You
Depending on how far off the asking price is from your budget and your understanding of the home's value, you and your agent might consider agreeing to the full asking price but requesting additional concessions from the sellers. For instance, your agent could include in the offer a request for the sellers to pay your closing costs. Perhaps there are household items, such as the washer and dryer, you would be interested in keeping; these also can be written into an offer. A home warranty is another item sellers may agree to purchase for you. These types of seller concessions could offset the gap you and your agent see between asking price and the fair market price.

A Backup Plan
Not all negotiations result in an agreement. Sometimes the parties are too far apart in price, and there’s nothing to be done. In these cases, your agent can be ready with other properties that fit your needs. In any negotiation, you have more leverage if you're willing to walk away.

The End Game
Above all, remember that negotiating the price you're willing to pay for a house is just that – a negotiation. You're trying to reach an agreement that's acceptable to both you and the sellers. The object isn’t to beat the sellers or win the negotiation. The object is to purchase the house. Good agents know this – and will use their expertise to make it happen.

Contact me today for a free Home-Buyer's Toolkit!

6 Steps to prepare your credit before purchasing a home.

If one of your future goals is to purchase a home, it’s never too early to start preparing yourself financially. One of the major factors that goes into getting approved for a home mortgage is your credit score and credit history. All lenders will look at your credit worthiness to determine how much they will lend to you. The following are steps you can start taking now to prepare your credit for buying a home in the future.

1. Check and update your credit report: Consumers are guaranteed at least one free credit report a year; get a copy of yours to see where you stand. If you find errors, you can contact the creditor or the bureaus to address any invalid information.

2. Make payments on time: Your credit report shows your current creditors and your payment history with them. Payment histories are one of the most important components of your credit score, so it’s important to maintain on-time payments with all of your creditors.

3. Pay down high accounts: Making payments on time is only one aspect of credit worthiness. The amount of outstanding debt, and the percentage of your available credit that is outstanding, are equally important.  If you have credit cards that have been maxed out that can affect your credit score, whether you’re making payments on time or not. Focus on paying down accounts with the highest percentage of credit used.  Getting these outstanding balances below 35% of the available credit line can improve your credit score.

4. Take care of existing liens or judgments: If you have any liens or judgments, you may want to pay them off or try to settle them before you apply for a home loan. Lenders will consider you if you have an outstanding lien or judgment, however, they’ll likely require it be satisfied before the loan is finalized. Therefore, avoid the headache and go ahead and take care of those in advance.

5. Avoid opening new accounts: New accounts can be a red flag – lenders want to see a history of payments, and new accounts mean you have a new need for credit. However, if you don’t have credit yet, this is an exception. A couple of credit cards with low balances and on time payments often times can appear better than no credit cards at all. But, avoid making a big purchase like a car just before applying for a home loan – a recent large purchase can alter your overall financial picture.

6. Talk to a lender and get pre-qualified now: This will help you understand how much home you can afford, and what steps you can take to increase your purchasing power.  If there are any issues with your credit history or your credit score, the lender may be able to show you what you can do to improve your situation.

Taking steps in advance to improve your credit score will help ensure lower rates and better terms which may mean huge savings for you during the life of your home loan.

Contact me today to discuss your home purchase or for a FREE Home Buyer's Toolkit!

How Do Real Estate Commissions Really Work?

Here is a great explanation of how commissions work. 

If you don't know what your Realtor is doing to earn his or her commission, ask!

I know how hard I work and I know the value I offer. 

Price is what you pay, value is what you get!

Advice from Actual First-Time Homebuyer's After They've Purchased.

Here are seven pieces of advice:

1. “After you get your mortgage approval, sit down and make a list of needs, must haves and wishes, work with a realtor who can find you your dream home.” —Denise F.

2. “Work with an agent that is experienced with first time homebuyers. There is a lot to know and navigate. A good agent is essential to making the transaction as smooth as possible.” —Toni M.

3. “Put together a really good Real Estate Agent, Mortgage Broker, Attorney team that will take the time to explain the entire process to their client. If they can explain it; they can do it.” —Ronald S.

4. “Work with a knowledgeable agent who cares about his or her clients, not just dollar signs. See your banking institution 1st. Ask a lot of questions. Consider the  location. Hire a reputable home inspector! Arm yourself with knowledge and really think before you leap since it is one of the biggest decisions you will ever make. It is a key in avoiding buyers remorse!” -Cheryl C.

5. “Choose a quality agent, practice self-restraint, look at the quality and condition, not just how pretty it is, know your budget and your comfort level and, for heavens sake, if you are going to listen to everyone else’s opinion besides your agents then they should be with you on every showing, not just the house you want to buy!” -Paul S.

6. “I’m not a realtor but I wish someone would have told me to make practice payments. I jumped from $1500 per month to $2400 per month on my first house. The extra $900 wasn’t the big deal as much as everything else, utilities, yard maintenance, etc. I think making 6 months of increased payments while you are still renting, saving that money and putting it as a down payment would have helped me. I try to tell every person wanting to buy a new home that.” -Darin P.

7. “Pre-approval is step number one. Look at homes in your price range. Nothing worse than falling in love with a home you can’t afford.” -Linda Z.

Contact me today for a FREE Home Buyer's Toolkit!

A Welcoming Winter Exterior for Your Home (Without the hassle of putting up lights!)

Home heating and hydro costs are continuing to spiral upwards, leaving many Canadians looking for more cost efficient and environmentally friendly ways to decorate the exterior of their homes for the winter season. Here are some decorating ideas to add a warm and welcoming touch to your home’s exterior without the expense and hassle of putting up holiday lighting.

Your front door is the focal point of your home’s exterior, so plan on a showpiece item here to draw attention and make an impact. Choose a dramatic piece, such as a large winter floral arrangement in a standing urn to place beside the door. You may even have an empty urn already, leftover from your summer plantings. If not, you can still pick them up at garden supply shops at this time of year. Resin or plastic versions are very inexpensive and you can even upgrade their look by painting them with black or copper spray paint to add to the drama. Let the base colour dry. Finish the look by applying a coloured glaze wash, and then wipe it off, leaving the glaze only in the crevices for a realistic aged effect.

Fill the base of the urn with any weighted material, such as sand or gravel, so it won’t tip over. Fill the remainder with oasis and then top it with decorative ground cover such as Spanish moss, available from any florist or garden store. Decorate your urn just as you would a floral centerpiece. Begin with low-sitting items to form the core of your arrangement. A dramatic choice could be a large decorative cabbage, that’s full of soft green and purple colours. Add some fragrant fresh evergreen branches for height and edging. These can easily be found at this time of year at any Christmas tree lot. Next, fill in with your accent pieces, which can be a collection of real and artificial items. Make sure you add a few tall pieces such as spray-painted twigs or pussy willows to add height and drama. Pine cones, acorns, bunches of dried berries or flowers, clippings from evergreen shrubs and plants in your own garden will all combine to create the look, with perhaps a few floral picks from the crafts store to add the finishing touch. When choosing your accent pieces, you’d be wise to choose items that aren’t specific to the festive season, so you can enjoy your welcoming display throughout the winter months, and not just for the holidays.

If you’re good at crafting, you may want to create a matching door wreath in similar materials. A simpler, more cost effective alternative is updating your existing wreath by introducing a few of the same elements used in your urn.

You could also create a coordinating swag to place above your front door. Tie a bundle of several evergreen branches together and wire it in the center. Then cover the wiring with a large wired-ribbon bow and a cluster of accent items, and you’ve got an original and high-impact selection of pieces that look beautiful day or night. And if you want to add some illumination to your home’s exterior, you can do it very economically with just one or two strategically placed floodlights.

Contact me today for a Free Home Value Report and Staging Advice!

Sweet Ideas for What to Do With Leftover Halloween Candy

 

Keep that sugar rush going!

                     

It’s been a week since Halloween. If you have mounds of candy leftover at home from Halloween, we have ideas that will please even the most sour patch kids. Now at this point I hopefully made you snicker and laffy at all of my sweets puns. Or perhaps you just think I am an airhead from Mars. Anyway here are some of the best ideas for leftover candy from across the milkyway...well actually just the internet. Enjoy!

Candy Cookie Cake

Combining Cookies AND Candy?! Stop the madness! Get the recipe for this sinful creation from Baker by Nature.

Snickers Ice Cream Popsicles 

Summer may be over but that doesn’t mean you can’t enjoy a decadent popsicle. Get the recipe for this frozen treat from A Pumpkin & A Princess.

Candy Caramel Apple Pie

Have leftover snickers? This caramel apple pie is a total party pleaser. Get the recipe from iheartnaptime here.

Don’t feel like you can possibly consume even one more sweet morsel of Halloween goodies? Here are some other ideas:

• Bring it to the office (your co-workers may not like you for this)
• Stuff a pinata (because kids totally need more sugar after their Halloween binge)

Continued Increases in Homes Sales Numbers and Values in Kitchener-Waterloo - What's Your Home Worth?

Home sales surged in the month of October with a total of 563 home sales through the Multiple Listing System (MLS®) of the Kitchener-Waterloo Association of REALTORS® (KWAR) compared to 481 during the same period in 2013, an increase of 17 percent.


Year-to-date 5,800 homes were sold, which is the second highest number of units sold in the last 10 years and represents a 2.9 percent increase compared to the same time last year and 4.8 percent above the 5-year average for sales year-to-date.
Single detached homes in October sold for an average price of $377,895 an increase of 7.1 percent compared to last year. The average sale price for a condominium was $212,877 a decrease of 0.6 percent compared to October of last year. The average sale price of all residential sales through the KWAR’s MLS® System increased 5.4 percent to $330,121 compared to October 2013.


The large increase in average price was due partly to the 57 homes sold in the $500,000 - $999,999 price category compared to 25 in 2013.

We’re continuing to see strong sales in the Region, with the second highest number of units sold in October on record. This fall sales rush reinforces the fact that the traditional spring market was pushed into the late summer months and Waterloo region continues to be a desirable place to invest in homeownership.

Residential sales in October included 375 single detached homes (up 19.4% from last October), 29 semi-detached (down 34.1%), 35 townhomes (on par) and 117 condominium units (up 37.6%). Dollar volumes for October and year-to-date sales were both at all-time highs with increases of 23.4 percent and 7.1 percent respectively.

Contact me today to find out what your home is worth!

A Winter Tune-up for Your Home

Winter is a time of year when many of us resolve to get ourselves in trim, whether it’s joining the gym or a dance class, or perhaps buying some exercise machinery for our home.  We devote a lot of attention to our cars too, putting on the snow tires, changing to winter anti-freeze, loading a bag of salt in the trunk.  But what about a ‘tune-up” to get your home operating at top efficiency?  While we’re snuggled in at home during the winter months, its a good time to make a few home ‘tune ups’ that could save you money while helping your home to run more efficiently.  

 
A good place to start is by making your home more energy efficient. There are many ways to do it for very little expense.  For a modest investment in the $50 range, a thermostat timer will allow you to pre-set your thermostat to turn itself down a few degrees after you go to bed each night, and turn the temperature back up before you get out of bed each morning.  If you’re normally out of the house all day, you can achieve even greater savings by repeating the process when you leave your home each day.

Another simple and inexpensive way to improve energy efficiency is to wrap your water heater in insulating material to reduce heat loss.  This small task can deliver savings that will really add up over the course of a year.  You can also reduce heat loss by installing small pre-cut insulating pads under the cover plate of wall plugs and switches on the walls around your home’s perimeter.  Dimmer switches, and the energy-efficient light bulbs will also reduce energy and save you money too.

 

Your home ‘tune-up’ should include a check of the fire alarms and carbon monoxide detectors throughout your home.  You should be sure that you have a working smoke alarm (and that means testing the batteries at least twice a year). installed on every floor of your house.  Also, clean the air filters on your furnace.  You should also consider having a furnace inspection to ensure its running safely and performing at top efficiency.  Again, your energy savings may even cover the cost of the inspection, and the peace of mind it delivers is priceless.

 

Want to know more about keeping your home running at optimum levels, and preserving its future resale value? 

 

Contact me today for a Free Home Value Report!