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Monthly Archives: May 2018

Which Impact Home Buying

1. Supply: When the supply, of house’s available, on the real estate market, exceeds the demand, we have a Buyers Market, which generally, lowers selling prices, and helps buyers, purchase more house, for less money! The economic theory of Supply and Demand, is extraordinarily, relevant, when it comes to real estate, and often, fluctuates, considerably, from time – to – time. Sometimes, this occurs, gradually, over a period of time, while at other times, it changes, dramatically, rather quickly. This is why, one must carefully evaluate and consider, pricing, not, merely, in terms of what has been, or what is, but also, what might be!

2. Demand: When the demand for houses, exceeds the supply, it creates a Sellers Market, For the past couple of years, we have been experiencing that type of market. Many factors effect this, including competition, job market, overall economy, public perceptions and comfort zone, and the specific, local market. We must all beware, and prepare, for factors which might impact real estate and the housing market, including the capping of so – called, SALT deductions, as well as rising mortgage interest rates.

3. Perceptions: Buyer and seller perceptions, are, often, quite different, The best thing for a homeowner, to do, is, go, to, some Open Houses, in the neighborhood, in order to get a better idea of the competition. Many owners over- value their house, while most buyers, seek the best possible price. In addition, perceptions of the overall economy, trends, etc, have a significant influence!

4. Financial considerations: Many financial considerations, are relevant to this discussion. This may include: the overall economy; the specific, local, one; mortgage rates and trends; real estate taxes; the employment/ job markets, etc.

Banks Are Approving Buyers

These days, when the banks send in their evaluators, they don’t just assess value. They also report back about any cracks in foundations, or major up-keep issues. This raises red flags on the file and the loan officer will likely ask to see the building inspection report.

Inspection report can bring up more problems than expected

The state of a property tells a story. Overdue maintenance on brickwork, cracks in the foundation, a deteriorating leaking roof will all significantly lower the value of a property.

When a property is flagged and the loans officer requests the inspection report, you must oblige, even if you put in an offer that was not conditional upon an inspection.

You must go back to the vendors and explain that the bank is insisting on a report.

Of course, this usually happens near the end of your timeline to get the mortgage approval.

If the inspection wasn’t part of the initial deal, the vendors can refuse to let you do an inspection.

This happens quite often because reports often bring up more problems than expected, which can scare off any skeptical buyer.

If the deal ends up falling through, the vendor now has a legal duty to declare all of its findings to any future prospects.

You need skilled brokers to navigate around problems

As you can see, the waters become muddy very quickly. The offer may have been accepted under a condition of multiple offers. The vendor may have purposely accepted because it did not have an inspection clause and the buyer’s plan may have been to renovate the whole place anyway.

In these cases, the mortgage condition timeline is often extended and buyers change banks, hoping that the outcome is different. Most times it’s not.

I once put in an offer on a duplex where three other offers fell through due to the state of the building. I was lucky because my mortgage broker was very experienced and suggested getting a renovation loan to make sure that any major issues about the property were taken care of right away to ensure the bank’s investment.

As well, the mortgage broker sent my clients to the bank with which the property was already mortgaged. That was the edge that we needed and the mortgage approval was finalized.

Up front communication about potential problems with a property and smart skilled service providers are more necessary now than ever as banks continue to put new policies in place to protect themselves.

House Staging

1. Benefits/ possibilities: As the lyrics of the song, go, Accentuate the positive, eliminate the negatives, staging is often done, to achieve, the objective, of being able to show off a home, in its finest light! Sometimes, this means, simply, de – cluttering, or adding accent lighting, etc, while, at other times, a larger effort might be indicated. Sometimes, one hires a home – stager, to bring in, furniture which will make rooms appear, warmer and friendlier. larger or more, user – friendly! The height of chandeliers, often makes the room’s dimensions, appear, considerably different. When potential buyers are viewing a house, many lack the ability and/ or perception, to visualize, what the possibilities of a home, might be, and, thus, staging helps these people, see things as they might be., Selling a home, professionally, and proactively, often, means, ensuring, every viewing, is, appealing to the potential buyer!

2. Marketing: Many potential buyers, make their decision, whether to look at a particular house, is based on how a house, looks, in the pictures, posted on the Internet. Therefore, professionally staged houses, often, have a marketing advantage, because they attract, more qualified, potential buyers, to consider, proceeding forward, and taking a look. Selling a property, often is enhanced, when there are more people, viewing it!

3. Imagination: Because many potential buyers, lack the necessary, relevant imagination, to see, beyond – the – surface, and, focus, on lesser items, such as the color of the paint, and whether, they like the furniture and furnishings, professional home – staging, is, often, indicated! The reality is, when a home, is staged, to appear, to the best of its potential, more potential buyers, seriously consider it, as the home, of their dreams, and needs!

Avoid Buying A Money-Pit

1. Qualified, experienced, recommended, home inspector, and/ or engineer: Since most of us, are not experts, nor qualified, to examine the condition of your prospective house, before purchasing, nearly every attorney strongly recommends, getting a home inspection, before agreeing to purchase any real estate. Ask around, to others, you know, personally, as well as your real estate professional, and find the best one, to assist you, and direct you, properly! The more you know, in advance, the better, off, you will be!

2. Major, versus minor renovations/ repairs: While, nearly every house, needs some work, you should identify, routine things, from big projects, and deal – breakers! However, when you know, in advance, as much details, as possible, you should use this information, in order to add, these costs, to your purchase price. Can you afford this total cost? Are you getting what you need, and the best, bang – for – the – buck?

3. Needed, versus cosmetic changes: Most home buyers make some changes, to best meet their personal tastes, etc. This includes minor renovations, painting, and addressing, perhaps, certain appliances, flooring, etc. These are regular, expected, cosmetic changes, and must be distinguished from expenses, which will arise, because of necessary issues, etc.