Real estate can be complicated. First of all, we’re talking about a bundle of your hard-earned and harder-saved money. Second, there are many different factors that can affect the trajectory of the housing market, including economics, politics and others. It’s vital that homebuyers and sellers assemble a knowledgeable team of professionals to help answer all the questions that will inevitably arise. In the meantime, here are some common real estate myths – and truths!
Test your knowledge!
Can you spot fact versus fiction? Here are some common perceptions, and the real deal on real estate.
While spring signals the start of the busy real estate season, activity is far from finished by the time fall rolls around. In fact, many buyers who didn’t take the plunge in the spring or summer are very motivated to buy a home before the snow hits the ground, which could result in a quicker sale or a higher price!
To those who think there’s a right and wrong season to buy or sell a home, “There really isn’t,” says Eli Skaff of RE/MAX Core in Ottawa, Ont. According to Skaff, prices depend more on factors such as supply and demand, which vary between cities and neighbourhoods. Rather than season, look to days on market as the best indicator of your negotiating power.
Over-pricing your home means many potential buyers won’t ever see it. Nowadays, most homebuyers start their search for a home online, filtering by region, housing type and most importantly, price! In fact, in a recent RE/MAX survey revealed that price was most important factor when shopping for real estate. This highlights the importance of doing your research and getting comparables when setting your listing price.
Your credit score is a measure of your financial health. According to the Government of Canada, your rating indicates the risk you represent for lenders, compared with other consumers. Credit-reporting agencies like Equifax and TransUnion rate you on a scale from 300 to 900 to gauge your financial health. High scores are good news, and will typically secure a better mortgage rate, since you post a lower risk.
While the purchase price is main focus for the majority of homebuyers, closing costs can add anywhere from 1.5 to four per cent on top of the home’s price. Budget for legal and administrative fees, home inspection, mortgage default insurance when down payments are less than 20 per cent of the purchase price, Land Transfer Tax, property tax, appraisal fee, home insurance, moving costs and more. On a $500,000 home, closing costs can range from $7,500 to $20,000. Make sure you budget for this.
Buyer beware! While this is true, buying a home with no down payment is not advisable. There are private lenders offering mortgage loans with zero down, but the interest rate is usually higher, and the total cost to you over the life of your mortgage will be greater. The best advice is to save the minimum five-per-cent down payment, and if you are unable to save this minimum amount, consider decreasing your home-buying budget or delaying the purchase.
Contrary to popular belief, mortgage loan insurance protects the lender against defaults in payment, not the borrower. If your down payment is less than 20 per cent of the purchase price, you’ll need to purchase mortgage default insurance, which can be paid upfront in full, or added to your mortgage payments.
Work with a team of trusted professionals to dispel some of those real estate myths, and turn your dream home into a reality.
RE/MAX Fit to Sell Learn how pre-packing your personal items and de-cluttering can help increase buyer potential.
The National Association of Realtors conducted some research that solidifies what we already know: most people these days shop for homes online. If the listing doesn’t appeal to prospective purchasers in their initial online tour, they won’t waste their time seeing it in person. They say a picture is worth a thousand words, so make sure you’re making a great impression with listing photos that set you up for a successful sale.
Great listing photos are the first step to bringing buyers in for a closer look. Your real estate agent may recommend a real estate photographer as part of the services they offer. Ask about this, and regardless if you’re doing it yourself or going with a pro, keep these five photo tips in mind!
Avoid these 10 mistakes and discover easy steps to make your home "Fit To Sell." These simple concepts can help you and your RE/MAX Sales Associate get the most on the sale of your home. Visit remax.com - Get Advice - Home Selling to download the full RE/MAX Fit to Sell Checklist. http://www.remax.com. #remaxFitToSell
Phase 2 of the exclusive RE/MAX program Fit to Sell features 9 new videos of tips on how to properly prepare your home for sale from expert home stager, Carla Woolnough. Visit www.remax.ca for more details or to find a RE/MAX agent today.
The following is the September Press Release from the Fort McMurray Real Estate Board.
AUGUST 2018 STATISTICS RELEASE
Statistics include Fort McMurray and surrounding area.
Fall is upon us and as the season’s change we expect to see our Real Estate Market remain stable.
August finished off what was a busier summer than we typically see. Unit sales were up while inventory is still down compared to same time period in 2017. August has seen a slight decrease in the average sale price over last August (-0.54%), these are all positive indications of a stabilizing market. We expect to continue to see similar activity throughout our region this fall.
Contact your friendly neighborhood real estate professional for up to date information and expert advice.
Complete statistics are posted monthly on our website www.fmreb.com.
Hi, my name is Dana McAroe. I'm a Real Estate Agent in Fort McMurray. I help people get the best possible outcome from their real estate transaction - whether they are selling or buying or a house.