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The Risks and Rewards of Homeownership
The Risks and Rewards of Homeownership. Homeownership is a big decision - one that comes with both risks and rewards. Risks include the possibility of your home depreciating in value, having difficulty selling it when you need or want to, or being forced to move if you can't afford the mortgage payments or property taxes. Rewards can include building equity, getting tax breaks, and having a place to call your own. The bottom line is that you need to carefully consider both the risks and rewards of homeownership before making the decision to buy a home. Weighing your options and understanding all of the potential outcomes is the best way to ensure that you make the right choice for yourself and your family. The financial commitment. One of the potential risks of buying a house is the strain it can put on your finances. Putting together a down payment for a home is no small task. Buying a house also usually means borrowing money in the form of a mortgage. Between the high upfront costs and the monthly mortgage payments, owning a home takes a significant amount of money. The purchase price is not the only thing to factor in when it comes to figuring out if you should buy a house. There are monthly payments, in addition to your usual mortgage payment, such as maintenance costs, homeowners insurance, title insurance, and property taxes. And don't forget one-time costs like closing costs once you secure a home. Whether you're dealing with an expensive house or not, the money you have tied up in your home is money that you cannot use for other investments. While other investment opportunities are not as safe in the long term, it will take years to be able to take out a good amount of money from a home equity loan, for example. Using your house's equity. After taking a property off the housing market, your home's equity can be used to spend more money than you would have on hand through home equity loans and home equity lines of credit. While you want to be careful about how much you house your home equity line of credit, since it uses your house to secure the loan, you can use the credit to make updates to the home or finance other projects. Home prices being what they are lately, it makes financial sense to use property values to your advantage. Once you build equity in your home by paying your mortgage regularly, you have more financial flexibility and can leverage the home purchase you made years prior to deal with things like renovations. Buying a money pit. Buying a home without a home inspection can be a massive mistake. Because of the recent housing crisis, some buyers have had to compromise a lot on their home buying journey. It got to the point where having a good investment in that market could have been something that makes little sense otherwise. Foregoing a home inspection means you're buying the property "as is." You're not getting a warranty for anything that might be wrong with the home - and there could be plenty of things wrong with it. If you find out after closing that the home has serious structural damage, you will have to spend even more money to repair it. This is just one example of the many ways in which buying a home without a home inspection can come back to bite you. These hidden costs of home-ownership can put a big damper on your enjoyment of the home if it's your primary residence or your ability to generate cash flow by renting the place out. If you intended to get some passive income to help pay off the mortgage interest then it could be an uphill battle before it all pays off. Passive income. If you buy a home, it might make more sense to turn it into a rental so that you can benefit from the rental income while paying off your monthly payments and building equity in the property. After taking care of mortgage basics, factoring in the interest rates, tax benefits and capital gains taxes, you may find that in the buying versus renting debate, you find yourself in a special position. Though difficult to pull off, you could buy a home and split it off into separate rental properties to establish a cash flow that fast tracks you toward your next house. If your mortgage terms allow it, you can also pay your mortgage faster, gaining more equity in the home faster than if you were living in it. There are low upfront costs when it comes to turning the investment property you bought into an Airbnb relative to the profit but these can easily be recouped if your home sits in a desirable area for tourists or young professionals. You might have to take out the trash on your way back home or hire someone to take care of that though. Being tied to one location. If your home is in an area that declines over time - increasing crime rates, neighbours that bring down home values through strange renovations, the construction of a factory upwind from your home, etc - or find that the housing market itself is starting to collapse, then you might be in a disadvantageous position. The issue with buying a house is that you're going to be stuck to that location for a while. Between the money invested and the cost of moving somewhere new, your budget is going to find itself squeezed like an orange on a Saturday morning - if you can still afford fresh orange juice. There's a reason why many investors buy up homes when the stock market takes a downturn since a house's value is something that is generally safe and less 'liquid', meaning it can't be turned into free-flowing cash easily. Still, if you were planning on selling or moving into a better neighbourhood, selling might mean taking on a loss instead of a profit. This is why it's a good idea to research the neighbourhood and its future before buying a home. View All Homes For Sale in Greater Vancouver >>> About Search Home Listings SearchHomeListings.ca has simplified the home buying and selling process by giving you superior tools with up-to-the-minute information including active homes for sale, sold homes, market reports, and a home valuation tool! We have a team of success managers on standby to support you with setting up your saved home search and agents ready to take you out on a tour. Tap into our industry experts from inspectors, to contractors to interior designers to provide you with the best prices and service possible. Everyone attached to our website has been rigorously vetted and is made up of caring, knowledgeable professionals that work tirelessly to help you to make your home buying experience as stress-free as possible. Contact us today to see how we can help! Sites We Follow Google Facebook Twitter
Home Decoration Theme Ideas To Let Your Quirks Shine
Home Decoration Theme Ideas To Let Your Quirks Shine. Just because more people keep their homes as conventional pieces of architecture doesn't mean that you have to. If it's your forever home, you should be able to make it look like what you want. Home decor ideas often focus on colour schemes and the right pillow covers that fall in line with current trends. However, if you're trying to break free of neutral colours and traditional living space layouts, here's what you can experiment with and take into account. Can you really do anything you want? Here come the three dreaded letters: HOA. Homeowners Associations are sometimes required when you move into a new neighbourhood and have some strict requirements when it comes to what is and isn't allowed with the exterior facet of your home. They can't tell you what to do with your interior design, however. Fighting with an HOA is often a painful and possibly costly affair. It's a very popular idea to 'take on the HOA' and it usually means fighting back against people abusing their power but, some HOAs are actually beneficial for your neighbourhood as a whole. Living in a historic building also comes with restrictions that seek to preserve the historic value of the home. You would also need to get a permit before renovations, even when it comes to the interior design of your home. If you're free of these constraints though, it's all up to you to express your personal style. Some key things to remember. While you're free to do what you want with your interior design, you still need to abide by some security practices to make sure that you live long enough to enjoy your home. There is a lot of value and style in nuance. There's also a big difference between garish and quirky. Common interior design tips and tricks are still applicable. If you intend to sell the home in the future, then remember that mint green kitchen cabinets are easy to 'fix' but adding a rope installation on the side of your home to make it look like a shape is not. The people who will buy that home will either buy it at a very low price or you will have found some new best friends who have the same expressive style as you. A floor lamp is easier to pack up but wood panelling painted to reflect scenes from your favourite movie can be a hard sell. Logistical concerns. It's easier to get completely lost for ten minutes and then find your way back to something more realistic when it comes to outlandish interior design ideas. Let's take a jungle or natural theme for example; adding a great number of plants or turning parts of a room into a little indoor garden sounds like a nice idea at first but you need to consider all the things that will need to be done in the long run to keep that idea looking as beautiful as the first day. If you have exposed wooden beams in a very humid room, like what you would have if you were to invest in an indoor garden, then you need to have a well-managed routine aimed at making sure that those beams are healthy and will last a long while. Humidity makes it easier for an intricate light fixture to grow mould in its crevices as well. When it comes to the layout of your house, can you let that indoor garden close to the kitchen? It makes it easy for the dirt from the garden as well as possible insects to get into the kitchen and contaminate your cooking or food storage areas. Style on a sliding scale. Maybe you don't want an actual tree growing through your dining room table or an entire room where, aside from a narrow pathway, the room is covered in dirt. There's nothing wrong with a large living room sofa and a TV after all. Essentially, you need to decide just how saturated your style is going to be. Instead of adding thick ropes and encasing the bottom of a massive aquarium in driftwood, you could pick up blue roman shades or other kinds of window treatments, and fill up the drab space on empty walls with paintings or a few key pieces that are reminiscent of the ocean. The sliding scale exists in a few forms but the easiest way to visualize it is when you go from obvious to understated. A console table made entirely out of wood reclaimed from old ships, sculptures of mermaids made from driftwood, turquoise accents in curtains or other fabrics can go a long way. If you want to add visual interest to a small room, there's no need to cram it with imagery. Work with colour. If you want to create a cohesive whole for your home's interior design, you don't actually need to be an interior designer. From the entrance hall to the powder room, you want to create a mood using colours throughout the home. Look at examples online of colour families and complementary colours - remember, it's not cheating to look things up online and take inspiration. If we're sticking with our nautical theme then your hardwood floors are already perfect the way they are. If a fresh coat of paint on your walls doesn't do enough to mask your empty wall space then you can add small accents of colour here. When it comes to big surfaces it's unwise to stay in the middle ground; either go all out with a mural full of bright colours or go with a simple pattern. Since we're thinking about ways to break from tradition and the norm here, paint is an inexpensive way to experiment, not to mention that it is relatively easy to revert back to something more subdued. It's also important not to let elements of the room get lost in each other. This is why you want dining chairs and a dining table as a set that doesn't blend in with the floor or the walls. Throw pillows are a good example of how to add splashes of colour with low risk as well. A patterned brown and green area rug can do wonders to accentuate an earthy theme, it helps bring the whole room together and area rugs in general help provide a lot of focus for defining points of interest. Define focal points. One of the key things that make a space feel put together is the presence of a clear focal point. If you're feeling the pulling toward a certain theme then you probably have an item that embodies that theme already in your home. A focal point is meant to draw the eyes of anyone within a room toward it - it doesn't matter if you're working with a small space or a big open-plan living room. It could be a coffee table on which a model plane rests or an accent wall adorned with picture frames in the empty spaces drawn by the branches and leaves of a painted tree like a gallery wall. Maybe it's an end table where a drawer pulls out to reveal a stack of old photo albums that tell your family's history. The idea is to create an ambiance in every room from the moment someone walks through the front door. They don't all have to be paintings or mirrors or incredibly fancy or old, these items serve double duty as both decoration and guides throughout your home. Try to weave stories using them, create a narrative supported by the rest of the room but that exists because of the item serving as a focal point. If that's suitable, use them to draw attention to high ceilings which can make any room appear much bigger. Experiment! It's your home, if you have a big effusive love for something, make it as evident as you want it to be. There are ways to be tasteful and have a beautiful home all while following what makes your heart sing. A home library that takes over the whole house, why not? Family photos from different eras with rooms that add interest to specific little factoids? Very classy, tough to pull off, but very classy. As long as you and your family feel at home and not like you're all walking through a museum or an exhibit room in a theme park, you're sure to win over the hearts of the people exploring your home. View All Homes For Sale in Greater Vancouver >>> About Search Home Listings SearchHomeListings.ca has simplified the home buying and selling process by giving you superior tools with up-to-the-minute information including active homes for sale, sold homes, market reports, and a home valuation tool! We have a team of success managers on standby to support you with setting up your saved home search and agents ready to take you out on a tour. Tap into our industry experts from inspectors, to contractors to interior designers to provide you with the best prices and service possible. Everyone attached to our website has been rigorously vetted and is made up of caring, knowledgeable professionals that work tirelessly to help you to make your home buying experience as stress-free as possible. Contact us today to see how we can help! Sites We Follow Google Facebook Twitter
What's The Smartest Move When The Housing Bubble Bursts?
What's The Smartest Move When The Housing Bubble Bursts? The housing bubble burst will have the effect of a tidal wave on the Canadian housing market. Are you prepared for what that means? There's a Canadian real estate bubble? Depending on when this goes live, it's either just burst or it's still going on. But first, let's look at what a bubble is in this case. Basically, a bubble happens when price appreciation goes off the rails and starts to fly. Much like a real soap bubble, the prices go up and up and like every bubble, eventually burst and reduce prices significantly. For the last couple of years, there has been a housing crisis that saw buying power collapse and runaway price acceleration. The housing crisis saw housing prices rise and rise, the upward pressure raising prices out of many people's financial reach. Neither rising interest rates nor low-interest rates seem to be able to keep up with home prices that somehow kept getting sold. It affected most facets of the real estate market, including the luxury market. The one market that seemed to escape the trend was the rental market in specific locations. What caused the bubble to form? Population growth outpaced new developments, but that's just one part of the problem. Housing demand in the Canadian economy inflated prices because home buyers were faced with a seller's market. A seller's market is one where the sellers have the upper hand at the negotiating table. Think of them like tiny, short-lived housing bubbles. In these markets, rising prices for the same house are not uncommon as the areas where those seller's markets are located are in high demand. However, there is something else that drives price increases and in the case of the residential real estate bubble in Canada, the issue was limited supply. The real estate industry keeps turning when homes are sold between people but when land development is all but halted and building materials are stuck abroad, it creates a barrier that limits how many houses there are. It's no secret that, like the rest of the world, Canada dealt with the COVID-19 pandemic. International trade slowed down and despite strong demand for new construction materials to build houses, everything but demand was delayed. As harbours reopen and the world returns to its interconnected state in the near future, we are likely to see an uptick in supply. But the damage might have already been done. The pandemic has not hit everyone equally and in the months following the reopening of the country, we may see a period of economic recovery and economic growth accompanied by a drop in house prices. Are there similarities with the 2008 financial crisis? Don't panic, the situations are not the same though there are some similarities. The good news is that, while it was hit with a recession as well, Canada weathered the storm relatively well. Still, it's a good thing to learn about the crisis' effect on housing. This is a huge oversimplification but the previous crisis was caused by what is infamously now known as subprime loans. Those were loans given to people with low credit scores, and they had very high interest rates. To cut a long, and very complicated story short, it was a story of runaway greed. Part of it had to do with expanding access to mortgages even to people who were probably not going to be able to pay them back. Part of it had to do with uncertainty with the stock market that led to investors buying up houses and driving housing prices upward. Once investors sold, property prices plummeted and mortgage-backed securities lost almost all value. Subprime borrowers found themselves unable to make their mortgage payments because of the high-interest rates of these loans which meant that they were going to lose their homes with nothing to show for it. It was a spiralling feedback loop of extreme greed. Is the same thing going to happen to Canada? No, as we've said before our financial system managed to tackle the financial crisis much better than our neighbours down south. That and the housing crisis on hand has a very different cause. So the next time you're annoyed about credit score requirements, remember what happened when American banks were just loaning untenable loans to people with low credit. Still, if you're stretched out on your monthly payments and using a HELOC to pay for something big, it might be best to reign in your spending and be a little more conservative with your credit lines to be safe. What should you do to prepare for the housing bubble's burst? When the days of endless home price growth have to come to an end and when that happens you want to be in the best position possible to take advantage of that. When houses will be valued for less, as a potential buyer you want to find the money so that you can put together a down payment on a new property. Keep in mind that you still need to show your financial stability to the right financial institutions before they will approve you for a mortgage and that you need to do adequate research about mortgage rates as you head onto the house hunt. Don't expect the housing market to suddenly become affordable. Housing will still be valued at a premium even after the housing bubble burst. Your best bet to figure out what you can do with your budget is to get in touch with real estate agents sooner rather than later. When that bubble bursts they are going to be busier than ever with the number of home sales that will suddenly become more affordable. It would be a good idea to keep up to date on real estate news because the low supply of housing is something that will be solved in tiers. As the excess demand decreases with more and more people being able to buy homes, there's a good chance that you will find yourself in a buyer's market in some areas. This is a market where there are fewer buyers than there are sellers. That situation is advantageous because it means that you have more negotiating power and can drive the price of the home you want down. If you're a seller or planning on selling then it may be a good idea to hold off if you're able to. While there will be an initial dip, prices are sure to climb back up - just not to the same extent as before. The issue, as for any living market, is that no layman knows where the bottom is or the truly optimal time to sell. In essence, buyers should try to get pre-approved ASAP and sellers should see if there's a chance of selling relatively high while getting approved for a bigger property. Real estate prices are likely to fluctuate for a moment before settling and depending on what side of the aisle you find yourself you may find either patience or decisiveness to be the best guide for the following days. View All Homes For Sale in Greater Vancouver >>> About Search Home Listings SearchHomeListings.ca has simplified the home buying and selling process by giving you superior tools with up-to-the-minute information including active homes for sale, sold homes, market reports, and a home valuation tool! We have a team of success managers on standby to support you with setting up your saved home search and agents ready to take you out on a tour. Tap into our industry experts from inspectors, to contractors to interior designers to provide you with the best prices and service possible. Everyone attached to our website has been rigorously vetted and is made up of caring, knowledgeable professionals that work tirelessly to help you to make your home buying experience as stress-free as possible. Contact us today to see how we can help! Sites We Follow Google Facebook Twitter
Things You Should Not Do Before Closing
Things You Should Not Do Before Closing. There are things you should not do before closing in real estate. For example: investing all of your savings in the stock market before the home sale goes through - although it would probably be best to just not do that ever. One of the big mistakes buyers and sellers make before the closing date is that they either spend money that they don't have yet or make a purchase contingent on a specific move-in date. It might seem like a slam dunk and your real estate agent might do all they can to hype you up but all the paperwork, all the time you spent finding and getting approved to finance your new home can all be for nothing if the sale falls through. So what are the things you should not do before closing? Read on to find out. As a home seller, selling before knowing where you're going to live. When the market seems hyper-inflated, some sellers get excited far too much and commit too early to selling their homes. Speeding right through the process of open houses and skipping over the key takeaways critical to a good sale. Of course, as a seller real estate agents that you hire can help you both sell your home and find a new one to buy. Still, no matter your interest, your income, your credit history, it's best not to lose your head. If you find yourself in a situation where you're both a buyer and a seller, listen to your agent's advice about your timeline. Most buyers have a hard time finding a properly priced home in a seller's market so while you may sell your home easily, buying one may be much more complicated. Before closing, long before closing, explain to your real estate agent what your housing situation looks like after the sale. It can avoid a very awkward scenario where you are not able to move out while the buyer is getting ready to move in. Legally, if you signed the paperwork, the home is no longer yours - keep that in mind. As a potential buyer, ignore the red flags. As buyers, you're always told to put your best foot forward, to show up with a mortgage pre-approval and a credit report to open houses, and generally seem irreproachable. Still, the home also needs to meet your needs. A home sale is a very emotional process and just because you can afford a house, that doesn't mean it's in your best interests to go for it. Your financial future for the next few years hinges on the viability of your final decision. Not everyone in the business is looking out for the risks incurred by the potential buyers. If you need a second opinion on the home, if you gave up the chance to have a home inspection, go ahead and find that out before signing on the dotted line. Backing off, if only for a reasonable reprieve, that late in the process can mean that your dream home will slip away. This is why most people recommend keeping the option to have a home inspection for as long as possible. Counteroffers that waive that right may be tempting to the sellers but what you're paying the home inspector and what you're planning to pay your mortgage lender can save you thousands upon thousands. Repair costs can be a horrible drain on your personal finance. Don't let a fresh coat of paint fool you. Keep a cool head and determine if the price, not just in terms of money, is worth the debt. As a seller, pay off substantial debts. It might be tempting to finally pay off the last of your student loan debt or get a headstart on your retirement planning before signing that last signature but doing things in advance here could actually be something that bites you in the behind. Wanting to meet your financial goals quickly is a great idea and using the seller's net sheet - something real estate agents give sellers so that they know how much to expect in income from the sale - to approximate what you'll be able to spend once the sale goes through is common sense. However, things don't always go according to plan. Some buyers, despite their agents checking with them, might be simply lying about their ability to pay for the home. And while you may feel sympathetic, your lenders won't be able to cash in that sympathy. Real estate is a wild game and it's best to make sure that money has actually changed hands before making any sort of big payment. As a buyer, don't make a down payment on another big purchase. The state of your finances is supremely important when it comes to buying a property with the help of a lender. When lenders are asked to approve a loan they look at more than just interest rates and your credit score. As potential buyers, your lender will need to know about your cash flow and incoming debts. Taking on extra debt to buy a car, for example, can drastically change what your lender thinks you're able to pay in terms of your mortgage. When you're talking to a mortgage broker when you're looking for a new house, also explain to them what other debts you're thinking of taking on. As a seller, make last-minute changes to the home. Selling a house is a long and emotional process. Sometimes sellers may feel tempted to add a fresh coat of paint to the home so that the potential buyers about to sign on the dotted line, don't do that. The sale of the home can be contingent on a variety of factors and the amount paid by the buyer can vary based on the condition of the property. If those conditions change, then it can invalidate the sale. Once the agreements have been laid down on paper and both parties are reviewing the contract, don't make any sorts of changes to the house that would violate the agreement. For example, if you added the furniture in the offer but find that you cannot part with certain pieces, don't just take them without notifying the buyer. The purchase and the money exchanged should all account for every single thing that was promised. If you're changing your mind about some pieces of furniture, a common regret during the last phases of selling a home, get in touch with your agent immediately to figure out if you can negotiate with the buyers. That might mean paying more money than expected to compensate for the lack of furniture though, so make sure your mind is set before laying out the details of the contract. The rule of thumb is patience. Wait for the ink to dry. Wait to see the numbers change in your bank account. Wait to see if you need the money for something other than what the hype was pulling your head toward. If you can secure a home with a home inspection, do it and save money. If you're thinking of keeping some of the furniture you promised in the purchase agreement, negotiate with the buyers and offer either financial compensation or something else that works for them. Be patient, swift, and communicative. It will help you navigate this monstrous process as unscathed as someone can be. View All Homes For Sale in Greater Vancouver >>> About Search Home Listings SearchHomeListings.ca has simplified the home buying and selling process by giving you superior tools with up-to-the-minute information including active homes for sale, sold homes, market reports, and a home valuation tool! We have a team of success managers on standby to support you with setting up your saved home search and agents ready to take you out on a tour. Tap into our industry experts from inspectors, to contractors to interior designers to provide you with the best prices and service possible. Everyone attached to our website has been rigorously vetted and is made up of caring, knowledgeable professionals that work tirelessly to help you to make your home buying experience as stress-free as possible. Contact us today to see how we can help! Sites We Follow Google Facebook Twitter
What You Should and Shouldn't Compromise On When It Comes To Real Estate
What You Should and Shouldn't Compromise On When It Comes To Real Estate. First-time homebuyers enter a complicated world when it comes to real estate. Everyone has their dream home but between them and those floor-to-ceiling windows overlooking the ocean are property taxes, other prospective buyers, and costly mistakes along the way. Home values themselves are something that can vastly change when it comes to the exact same home. Buyers have to contend with market conditions, mortgage companies, and the allure of future developments. A dream home isn't where people start and this is where you need to think about the compromises you're willing to make and which things are worth it. Before you spend money you don't have for square feet you don't really need, let's take a look at the things you should and shouldn't compromise on. Don't compromise on the number of bedrooms. When a real estate agent wants to make you understand what compromise in real estate looks like, they may show you a house that's within your purchase price, gorgeous, but is missing something key. What that real estate agent didn't count on is you falling in love with that home. If you have kids, not having enough space for all of them to have their own privacy is going to put a strain on everyone in the new house. If your agent showed you a home with three bedrooms to set your expectations right, it's to get you to really take a look at the budget and your possible future home. Buying something that's missing a critical room is just asking to be unhappy for a long time. Compromise on cosmetic fixes. Imagine now that your agent takes you to a home that might not have the crown moulding that you want or the right paint job. This is where you need to picture what you can realistically change in the home with some elbow grease. The seller's agent will have an easy time finding potential buyers for a property that has all the little finishes, including a beautiful garden or a beautiful little swing in the backyard. The truth is that it could be in your best interest to take on a home that doesn't have all the little things. That way, you can add the cosmetic details that you want. You might be thinking about the time it takes and the additional costs but they can be spread out over time. When you buy a home that's in a great location, at a good price, but without the right tiling for the bathroom - you get a chance to customize your home as needed. The money you save on the cosmetic aspects is money you can invest in making the home your own. After all, if it's your mortgage loan, you should be living in your house, not now that the seller left behind. Don't compromise on critical systems. Must-haves change from buyer to buyer but a functional kitchen, bathroom, and HVAC system in addition to the right number of bedrooms should be your minimum. Remember, you don't want to regret your down payment and the monthly payment toward your mortgage. Even if you fancy yourself a handyman and think you will save a lot on your mortgage payment by doing everything yourself, you need to make sure that the home is habitable. Good electrical wiring throughout the house and good waterproofing around the electrical panel can prevent disasters like electrical fires. No one wants to pay closing costs, an appraisal fee, and more just to see it all go in literal flames. Of course, there are less serious versions of this. If a real estate agent tells you the previous owners had a vibrant personality, run. There's a toilet in the middle of a common area separated off only by a half-wall. You're not being picky if you don't want to come across someone doing their business by making a wrong turn in a house. Yes, that house is real, it's in the US and it's selling for 460K USD but make no mistake, we're not immune from that in Canada. Compromise on space. The home buying process is tough, and both the buyer and the real estate professional tagging along can feel it. House hunting escalates into a bidding war more often than either party is reasonably ready for but there are ways to make sure you don't send your budget to an early grave while you dine on dollar-store ramen for a few years to afford your mortgage payments. More space, that's what many buyers are all looking for but when you're really attached to particular area there's a good chance many other buyers are also looking for that space. The popularity of a certain location can make the price of your new home skyrocket. At this point, you really have to think about whether you want to stay firm and look for a gem a little longer or shrink the vision of your dream home just a little so that the purchase price doesn't break the bank. The right property can be a little smaller than what you anticipated and that's okay. As long as there's enough space for the whole family and no one starts to hate each other because of how much they're on top of each other, the location of the property can more than make up for it. The cost of a home purchase has many variables, that's why you pay a mortgage application fee and need to get pre-approved by a mortgage lender for your offers to be taken seriously. The home search will involve trading square footage for amenities like a good school district. More space doesn't mean much if you and your family spend a lot of time out of the home, reducing commuting or transport costs can be more than worth it in the end. Should you compromise on a home inspection? The market being the way it is, some buyers make the decision to send offers that waive their right to have a home inspection done. It can be something you can do if there are no other good homes within the range of good schools and that shortens your long commute. However, you need to make a rational decision about what you can spend in order to deal with the repairs. A chimney inspection might seem superfluous but could be critical before it's fit for use. Homes that have structural problems can suck up valuable time and money and rash decisions about not doing a home inspection can turn your new home into a money pit. A chimney full of soot or structurally unsound will cost more than a measly thousand dollars if you try using it. What if you're on the market for a fixer-upper? Realistically, there are many different levels to what a fixer-upper is. A ramshackle collection of four walls and a roof in an unkempt literal urban jungle is a fixer-upper if your ambitions are big enough, but so is a home with an unfinished basement and outdated appliances. The only part, really, that you need to take care of is whether your family can live in the home while the renovation work is happening. If not, then it's time to budget out extended motel stays as repairs continue. At the end of the day, whether it's a dream home or just a stepping stone, there are things every buyer needs to think through and balance before making one of the biggest financial decisions of their lives. Just don't buy a home for the price, especially if a countertop is held up by a banister and a giant window faces the highway - there has to be better out there. View All Homes For Sale in Greater Vancouver >>> About Search Home Listings SearchHomeListings.ca has simplified the home buying and selling process by giving you superior tools with up-to-the-minute information including active homes for sale, sold homes, market reports, and a home valuation tool! We have a team of success managers on standby to support you with setting up your saved home search and agents ready to take you out on a tour. Tap into our industry experts from inspectors, to contractors to interior designers to provide you with the best prices and service possible. Everyone attached to our website has been rigorously vetted and is made up of caring, knowledgeable professionals that work tirelessly to help you to make your home buying experience as stress-free as possible. Contact us today to see how we can help! Sites We Follow Google Facebook Twitter
8 Questions To Ask Before Buying a Property
8 Questions To Ask Before Buying a Property. It's normal to have questions before buying a property but they range from strange, like asking if the house is haunted, to the essential like asking about necessary repairs. Read on to find out some of the questions you need to ask before getting ready to pay the down payment. What is included in the sale? Some home sellers will include appliances, furniture, and window treatments with the sale of the home while others will not. You'll want to make sure that you know what is and isn't included to budget properly. Not having to pay for a couch that fits just right in the living room of your new house is something that saves you time and money. Your total budget needs to account for all the money involved in the transaction; meaning that you need to factor in the offer price, closing costs, and more. Knowing exactly what you're getting from the sale can help you budget out repair costs or look into replacing a light fixture or two. What is the house's repair history? A home with a lot of repair needs is not only going to be costly to bring up to current code, but it may also require extensive work that you weren't expecting. By knowing the repair history of a property, you can get an idea of what kind of hidden costs you might have down the road. If any known major repairs need to be made, you'll want to factor those into your offer price. You don't want to be blindsided by a broken furnace or roofing that will need to be replaced shortly. In a seller's market, the buyer's agents - meaning your agent - will try and get you your dream home but the reality is that buying a house in market conditions that favour sellers is going to take more money than you anticipated. The listing price you see online is likely not the price you will get the home for. Though the market is expected to turn soon where the seller's agent would be the one making the concessions instead, the best advice in either situation is to figure out what the house's history is concerning its major issues over the years. A home inspector will be about to tell you most of the serious issues that are apparent now, such as immediate problems with electrical systems but knowing about any major renovations will help you decide if the home is worth the asking price. A water heater failing a couple of months after your move-in date is definitely not ideal but if you expected it by taking a look at how long ago it was inspected, repaired, or replaced then you can take the proper precautionary measures. It's important to make the distinction between cosmetic repairs and things like removing lead paint from the home. CLUE, Comprehensive Loss Underwriting Exchange, is a great resource for prospective buyers. It lists all the insurable incidents that have happened on the property. This can be a great way to find out whether any major systems failed unexpectedly in the last seven years or if something like a tree fell on the house. Is the neighbourhood in a good location? Location is key when it comes to purchasing a home. You'll want to think about things like the surrounding area, public transportation, schools, and more when choosing a neighbourhood. If you're looking for a family-friendly neighbourhood, you'll want to make sure that there are good local schools in the area. If you're looking for a home close to public transit, you'll want to find out what kind of bus or train routes are available. You'll also want to think about your commute and how long it will take you to get to work or other places that you frequent. Crime statistics are also something you want to factor in. It's something your real estate agent should be able to provide you with but you can also find them rather easily online. What is the zoning for the property? Zoning laws can be a bit confusing, but they're important to know when buying a property. Zoning laws dictate what kind of uses are allowed for a piece of land. For example, a residential property will usually have zoning that doesn't allow for commercial use. That means you wouldn't be able to open up a business out of your home unless you applied for and were granted a change in the zoning. Knowing what the zoning is for a property will help you avoid any surprises down the road. It's also important to know if the zoning for a property will allow you to do what you want with it. For example, if you're interested in building a home or doing major renovations, you'll want to make sure that the zoning for the property will allow for that. What are the property taxes like? Property taxes can vary greatly from one municipality to another. They can also increase over time. It's important to know what the current property tax rate is for a municipality and whether or not it has increased in recent years. You'll also want to find out how the taxes are calculated. Some municipalities use a mill rate while others use a percentage of the assessed value of the property. Knowing what to expect when it comes to property taxes can help you budget for your new home. Why are the owners selling? The answer to this question can help you get a better price for the home. If the owners are moving because of job relocation, they may be more willing to negotiate on the price. If the owners are going through a divorce, they may be eager to sell the property and may be open to a lower offer. Knowing if you are dealing with a motivated seller is a great way to know what you can leverage in the negotiation phase of the home buying process. Has the house ever been flooded? This applies to all kinds of natural disasters that may have had an impact on the home. Health or safety hazards can arise even years after a good or other natural disasters come to pass. A home inspection can snuff out some key details that will let you know what issues you can encounter but sometimes even the current homeowner may not be aware of some damage through no fault of their own. If you're a first-time homebuyer, you need to save money in an emergency fund separate from what your home insurance covers. If you uncover in the home inspection that the home has been damaged in the past, you can use that to get a better price on the home or get the seller to pay for the closing costs. A home inspection report goes a long way but if you find out that the seller paid to bring the house back up to standard can make you feel safer about completing a costly real estate transaction. Insurance claims can be a pain to navigate through so when thinking of your future home, take the time to figure those out. If you're thinking that homeowners insurance is the same thing as a home warranty, think again because they cover different things. Homeowners insurance covers things like floods, storms, burglaries; a home warranty helps you reduce the replacement cost of major appliances replaced because of normal wear and tear. What have other homes sold for? Real estate agents know the ins and outs of a home sale, which should be expected but their real asset is their knowledge of the real estate market around different neighbourhoods. Knowing what other homes sold for and with what kind of contingencies, not just the listing price, is a great way to know if you're going to pay a fair price for the home. Of course, it's always best to defer to your real estate agent because the down payment you're going to put down is not going to differ by just a few hundred dollars if the new house you're looking at has had more repairs and renovations than most sellers offer up. Light fixtures, recently updated flooring, and a new water heater will all hike up the price quite a bit. On top of that, monthly payments in the form of ongoing costs (mortgage, utility costs, etc) can change the way you view a home's asking price. Overall, here's what you need to ask. Think about the near future and what it holds for you and the home. It's more than just the water heater, the fuse box or annoying neighbours, that home inspection and other precautions you will take can have a big impact on your personal finances for the terms of your mortgage. So don't be shy, and ask away. View All Homes For Sale in Greater Vancouver >>> About Search Home Listings SearchHomeListings.ca has simplified the home buying and selling process by giving you superior tools with up-to-the-minute information including active homes for sale, sold homes, market reports, and a home valuation tool! We have a team of success managers on standby to support you with setting up your saved home search and agents ready to take you out on a tour. Tap into our industry experts from inspectors, to contractors to interior designers to provide you with the best prices and service possible. Everyone attached to our website has been rigorously vetted and is made up of caring, knowledgeable professionals that work tirelessly to help you to make your home buying experience as stress-free as possible. Contact us today to see how we can help! Sites We Follow Google Facebook Twitter
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