Tag Archives: kelowna real estate

In hot real estate markets, realtors are going to make you an offer — whether you want it or not

Kelowna! Our housing market has officially heated up…..it has begun, the controversial realtor practice of contacting homeowners in the hopes they MAY want to sell.  Now homeowners are left with a choice they may have not even been considering, love it or list it?

My daughter and son in law received a letter recently (from a local realtor we will not disclose) They live in Dilworth, have an income suite and are 10 mins from downtown. They have no intentions of selling, but real estate in Kelowna is heating up and realtors are making sure they have enough properties to show eager house hunters. And lets face it, sale prices are enticing even the most comfortable home owners.

There is nothing illegal about realtors directly approaching you to sell your home privately, but that doesn’t mean all homeowners appreciate the attention. Lets face it our local market is strong  and real estate agents dealing with clients trying to break into the market, the number of unsolicited offers is probably going to just keep growing in hot markets like Toronto and Vancouver.

Many eager house hunters are simply not willing to sit around and wait for product to come to them. While unsolicited offers may pay off for buyers, the real problem, as a seller, is it’s incumbent on you to determine fair market value for you property. The agent making the offer is just not on your side.

Risks aside, there are some advantages to selling directly and bypassing the MLS, which usually requires posting pictures of the inside and outside of your house online and open houses. On the financial front, agents soliciting business usually promise a break on commission too.

Whether this option come knocking or not, potential sellers be wary that this probably isn’t the safest strategy. Sellers really need to do their homework before agreeing to a private transaction — don’t get tricked into a quick timeline and don’t feel shy about requesting a large deposit of as much as 15-20 per cent.

As always, if you have any questions, especially if offers start knocking, never hesitate to get in touch, with me, a realtor, or a lawyer. For most of us the purchase and sale of a home is the biggest and most emotional transaction we will ever make. Everyone searching and selling needs to feel protected, happy and in control 🙂

They haven’t been built yet but Kelowna homes are being snapped up

The current housing market in the country is a hot topic, and nowhere is it hotter than in British Columbia, so it might be surprising to hear that real estate is being snapped up and sold out within a matter of hours after hitting the market.

There is more than enough data to show that the real estate market in the Okanagan is unaffordable for most, prompting developers to come up with unique ideas. Micro suites, eco-friendly buildings, and ranchers are just some of the new developments popping up in places such Kelowna and Penticton and they are selling out faster than anyone expected.

Continue reading here…… story via Kelowna Now

I’m Going to Buy A House. What Do I Do!?

Buying a home means finally being able to call a place yours, and making your decorating dreams a reality. But, before you can start moving in sofas and painting the walls, you have to actually purchase the home! And what a huge commitment that is, requiring you to research neighbourhoods, tour different properties, send in mortgage applications and file what seems like mountains of paperwork.

But, there is light at the end of the tunnel, and that is finally owning a home that you can use as an investment. Need some help preparing for this? Take a look at the tips below, which I’ve gathered through extensive research watching way too many home improvement shows.

Step 1: Figure out your Budget

You have to create a budget that is realistic for your income and the expenses you already have. If you don’t set this, then you could easily end up looking at dream homes that you could afford, if you’re willing to live without things like food… or heat… or electricity.

So, set your budget by taking into account your income each month. Then, subtract all your normal expenses (yes, add in dining out, gas, heat, etc.). Next, subtract your anticipated monthly mortgage payment along with taxes and insurance. You should have an idea of what you can afford when you do this, but be honest with yourself so you get the most accurate results.

Step 2: Set up Savings

How much money do you have set aside for a rainy day? You need an emergency fund, and that’s even more true when you own a home. You need to have money set aside for plumbing emergencies, a new roof, living expenses if you were to lose your job and other things that could happen (even though you don’t want them to). A good rule of thumb is to save half a year of living expenses.

Step 3: Figure out What You Want

Before buying a home, you need to think about what your priorities are with the actual home. For example, would you rather buy one that’s move-in ready, or one that is going to require some repairs? You should also think about the location, whether or not you will have to move in the near future (if you’re going to have kids), if you would want to do renovations and other things that impact your enjoyment with a home.

Step 4: Do Your Own Research

Your real estate agent will help you with finding a great home when you’re ready, but you can still research homes yourself to get an idea of what you really want. Take some time to look up information on different neighbourhoods, layouts of homes you might want and other things that will make the searching process easier in the future. Don’t rush yourself and remember that this is one of the biggest investments you’ll ever make, so you sure you’re satisfied with it.

Story via www.joesamson.com

All-in-one mortgage accounts & the benefit of putting your debt in one pot

The whole premise seems geared toward keeners.

All-in-one mortgage accounts – a kind of mortgage account that acts like a big line of credit – seem aimed at the kind of borrower who uses every trick available to pay off the mortgage quickly, the type who can play an online mortgage payoff calculator like piano keys.

Sounds like you?

Continue reading here…… Story via The Globe and Mail

As always never hesitate to give me a shout if you have any questions, I’m here to help 🙂

How to get a mortgage (when your not the ideal borrower)

If you’re a credit-worthy employee at a Fortune 500 company and don’t have much debt, the mortgage world is your oyster. Banks knock on your door looking to give you the best rates, most advantageous terms and any other perks they can use to get your business. You’re an A-lister. A borrower with impeccable credentials.

But what if you don’t quite fit that pic? It doesn’t mean you’re out of luck, it just means you have to learn how to work the system in your favour.

Truth: You can get a mortgage if you’re self-employed, got a poor credit history, or if you own more than three rental properties……

To help you, here is a list of some of the most common B-class borrower hurdles and the best ways to minimize the risks and get better mortgage rates and terms.

Have a read & as always, if you have ANY questions, never hesitate to get in touch.

Banks don’t provide proper pre-qualifications. Mortgage brokers do!

Mortgage tip of the week & food for thought for those who are considering house hunting…

Before you run to the MLS listings, talk to a mortgage broker. First time home buyers should confirm their eligibility to purchase through a mortgage pre-approval in conjunction with their real estate agent. Mortgage brokers ensure FTHB’s are pre-approved prior to searching for property so a REAL budget is established and a pre-approval rate hold is tied down. If the client is already working with a realtor, that realtor can rest assured that the client is motivated, and looking in their appropriate price range. It saves all 3 parties involved a lot of time, and headache. A mortgage broker can be considered more valuable in this regard, as banks do not provide proper pre-qualifications based on a full application or review of documents, simply put, it leaves room for error.

If you have any questions NEVER hesitate to get in touch & stay tuned for more tips :

Costs to expect when buying & selling a house

The purchase price you negotiate when buying or selling a home is just one part of the ultimate cost for a home. In addition to the purchase price there are a number of other fees—known as closing fees—that need to be factored in to any purchase or sale price. To help you plan the purchase or sale of your property, here’s a snapshot of the extra fees you can expect to pay out of pocket once you’ve settled on the home sale price.

Buyer’s Closing Costs

→ Land Transfer Tax

Most provinces and some major cities impose a land transfer tax that is calculated as a percentage of the home’s purchase price. The formula varies from province to province (and from city to city) so it’s best to use an online calculator. For this example, we’ll assume the purchase of a $350,000 home in Toronto, Ontario. Based on the calculator, a buyer would have to pay a provincial and a city land transfer tax that equates to $6,950. If, however, you were a first-time home buyer, you’d get $5,225 in rebates on those fees.

→ Mortgage Costs

Most banks won’t charge a fee to set-up a mortgage or to do a mortgage-related appraisal, but some still do. If your bank does charge you, expect to pay between $250 and $500 for a mortgage-related appraisal. Also, if you’re putting less than 20% down on the home you’re buying, you will need to pay mortgage default insurance—and the less money you use to purchase the home, the more money you’ll be charged in default insurance fees. To help you calculate here is the sliding scale fee charged by Canada Mortgage Housing Corporation and Genworth—the two largest mortgage default loan insurance providers.

80% to 85% of purchase price: 1.80% of mortgage + PST

85% to 90% of purchase price: 2.40% of mortgage + PST

90% to 95% of purchase price: 3.60% of mortgage + PST

over 95%: 3.85% of purchase price + PST

Keep in mind, too, that mortgage default insurance fees will also be charged on amortization that is longer than 25 years, even if you put more than 20% down on a home. According to one mortgage broker, for every extra five years (above 25 year amortization), the premium increases by 0.2%. Also, some high-risk borrowers, such as self-employed or those with large debt loads, may end up being charged a mortgage broker fee—a finder’s fee that can add an extra $1,000 up to $9,000 on your mortgage closing costs.

Visit MoneySenseWeek.ca for more great money tips »

→ Adjustment Costs

Once a sale is finalized, your lawyer will need to calculate the adjustment costs. These are costs the seller prepaid and can include property taxes, utility bills, heating oil, lawn care or property maintenance services as well as other annual contracts. For metered services, such as hydro, gas or water, the meters are read on closing day (the day the house changes ownership), to verify down to the last cent what the seller and buyer owes. For other annual charges, an adjustment—which looks like a credit—is given to the seller, meaning they will get reimbursed for the expenses they have already paid to maintain the home.

→ Home Insurance

If you’re buying a home and getting a mortgage, you will be required to get home insurance coverage. While the cost varies widely depending on the home you buy, where it’s located and the type of coverage you require, expect to pay at least $800 per year for coverage.

→ Legal Costs

A lawyer will do a series of searches and generate a slew of documents when processing a home sale transaction. This includes: a title search (which verifies that a seller legally owns the property and searches utility and tax departments to make sure there are no liens against the property), registering the title deed and mortgage, where applicable septic tank and potable water searches. In most cases, lawyers will charge anywhere from $500 to $1,500 for this portion of the work. But on top of these fees there are also disbursement costs, fax/phone and mail costs and other costs of doing business.

→ Title Insurance

While title insurance is not mandatory it is a very good idea. It protects you against mortgage fraud, identity theft and forgery and can protect you against fees and costs that were not caught in the searches your lawyer conducted prior to the sale (and this happens!). The typical cost is about $300 on a $500,000 home.

Seller’s Closing Costs

→ Realtor’s Commission

The biggest fee sellers will have to pay are the commission fees of the realtors involved with the sale of the property. Generally speaking, the total commission cost is 5%—2.5% for each agent (although, this split is different in the province of B.C.). That said, you can always try and negotiate a lower commission rate, but this needs to be agreed upon prior to the listing and sale of your home. Remember, too, that GST is added to these fees.

→ Lawyer’s Fees

You will need a lawyer to discharge the title for the property and the mortgage and to verify that all prepaid expenses are returned to you and that utility and other services are up to date in payments. Expect to pay $500 to $1,500 for an uncomplicated transaction (although, most lawyers charge less for a sale than a purchase), plus disbursements.

→ Mortgage Discharge

If you ended your mortgage—known as a “closed” mortgage—before you mortgage matures you will need to pay penalties and discharge fees. For a variable rate mortgage, the penalties equate to three months worth of mortgage payments, plus a discharge fee of $200 to $600, depending on the lender. For a fixed rate mortgage, the penalties can be much, much higher so it’s a good idea to call your lender and ask what you will need to pay to break your mortgage. Keep in mind, if you’re looking at a high penalty to break your mortgage you may be able to transfer it to a new property for a significantly smaller fee.