Posts Tagged resale homes
Moving has Become 25 Percent Harder to do; Why the Mortgage Changes Effect Everyone
Posted by Top Home Loans in Mortgage Advice, Mortgage News on April 20, 2010
The Bank of Canada has made many changes to mortgages in the last few weeks. Many changes to people refinancing, property investors, and new home buyers. Almost everyone was affected by the recent mortgage changes. Some unintended consequences of the changes are starting to be revealed; however, more of these unintended consequences include the ability to move.
In the past, it has been fairly easy for a home seller to be able to purchase a new property. Most people would get a fixed or variable rate, and as their mortgage terms decrease, their chance at getting their mortgage approved increases; however, this is no longer the case.
With the new rule changes, the mortgage qualifying rate is much lower on a 5 year fixed mortgage rate. This means that after a few years, when the home owner decides to move, they will be able to purchase a property that is up to 25% lower than what they could buy originally. In most cases, this would cause the home owner not to move because they do not want to move in to a smaller property. This can make it extremely difficult to find a better property.
Fortunately, there is a few ways to avoid this problem. The first way to avoid this issue is very easy to complete, if you have 20% or more of your property paid off, then you can contact a smaller lender, and they may be able to do this for you; while other bigger lenders will not let you do this.
The second way to correct this is by discharging your existing mortgage early. By doing this, you will be paying off your existing mortgage, and you will be setting up a new mortgage early. This will allow you to qualify under the five year discount rate versus the five year posted rate. This should allow your purchase price to be much higher, but it comes with a penalty.
The new mortgage changes had many unintended consequences, and the real scope of changes is yet to be seen. In several months we will see how the market adapts to the changes, and we will see if the market can continue to rise; however, it is most likely that there will be a decline due to the changes in the market.
Do you have any suggestions on how one could move their mortgage? Do you agree with the changes that the Bank of Canada have made?
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Mortgage Bits: The Highest Bidder doesn’t always Win when Selling a Property
Posted by Top Home Loans in General Business, Real Estate on November 8, 2009
When you hire a real estate agent, you hope that they will be working in your best interests. You hope that they will get you top dollar for your property, and make the sale easy and stress free. You would never expect your realtor to be under handed or do something that is less than ethical.
However, the fact is at the end of the day, the realtor has to look our for themselves, so what key factors will a realtor look for when selling your property?
Selling Speed: realtors love quick closes and no conditions on the mortgage. This means they get paid faster and with less hassle. If a realtor has an open house, and the offer falls though, then that means they will have to start from scratch. A realtor is willing to take a lower bid with less conditions over a higher bid for your property.
Commission Amounts: a realtor will make a certain amount of commission on the sale of the property. When there is both a buyer’s agent and a seller’s agent, the commission is shared between the two agents; however, when the agent is shared by both the buyer and the seller, then the real estate agent gets both commissions.
In most cases the realtor would take a lower bid to get a higher pay cheque. This is true in most professions, so it is true in the real estate world as well.
How can you protect your bottom line as a seller? Keep your house on the market longer, refuse more bids, etc. Have a target price for your property and don’t settle for anything less.
What strategies did you use when selling your house? Did you get more or less money than you expected?
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Mortgage Bits: Property Listing Tips
Posted by Top Home Loans in General Business, Mortgage Advice, Real Estate on November 5, 2009
The most critical part of selling your home is the property listing online. When home buyers are looking for a home to purchase, the property listing is the first thing that they will see. This will determine if your house gets viewed or doesn’t get viewed.
Pictures: like a new car, you should take pictures when your property is looking its very best. Staged properties do well, and the consumer would prefer more pictures than list. Don’t want to include a picture, then don’t expect to get too many offers.
Description: More is more when it comes to a description, the more details provided to the buyer the better. Use descriptive words of the property, textiles, hardwood, etc. Instead of words like wonderful, great spacious, etc. Everyone has a spacious house…
Specifications: When shopping for a computer, you would expect to see all the specifications for it before purchasing it, so why not a house as well. Provide age, sq ft, rooms. Fixtures, includes, etc.
Virtual Tours: these act as an extra credit addition to your listing; however, it is not required to have it to get the sale.
Listing Agent: the listing agent must be easy to reach. If they never call back or answer, then expect to miss out on many perspective buyers.
These are just some great ways to improve your conversion ratio on home sales. What other ways can you improve your property listings?