Real estate is the most expensive investment most people will ever make in their lifetime. We have become a Consumer Society and the Laws are there to protect members of the Public from fraud, misleading advertising, unethical behaviour and incompetence.
The basic rules of the transferring of property rights are quite simple.
It is the level of expertise of the people involved who complicate the normally smooth transition by their lack of experience, knowledge and sometimes their integrity. Whether the last time you purchased or sold a piece of real estate was a pleasant experience or a nightmare, it is hoped that the content of this site will give you the knowledge to realize that the difference of the out-come may be equally your responsibility.
Real Estate Is An IndustryThe business of real estate is not something most people dwell on from day to day unless they are thinking of buying or selling.
The Standards of Business Practice and Code of Ethics have changed dramatically over the past 10 years in preparing members of the real estate community and the public, for a level of professionalism that is expected by the consumer in today’s fast paced and high tech world.
Whether you are a novice in the real estate experience or a seasoned participant, it is important for you to realize that the rules do change periodically and always usually in your favour.
From AGENCY101 where you will realize that as consumers, you have a right to be professionally and exclusively represented by the Realtor of your choice and through to to the intricacies of PROCESS101 where clarification of some of the behind the scenes quirks, philosophy and subtleness of what you may think is a complex procedure.
Before you start looking for a home you should ask yourself a few questions.
Where do you want to live? Do you want to be close to schools, shopping, or work?
What kind of house would you like (need)? Are you looking for a particular style? How many bedrooms and bathrooms do you want? Do you want a yard?
How much house can you afford?
Have you figured out the size of the mortgage you would qualify for?
Maybe it is time for you to speak to a mortgage broker before you go to your bank.
Here are a few tips you may not have thought about:
Verify the credit report on yourself and make sure the information is accurate. If you find any errors take steps to correct them immediately.
Browse through real estate advertisements in the newspaper and Homes magazines. This will give you a good feel for the types of homes that are on the market and what they cost.
In many communities, REALTORS® may have television programs or interactive phone systems which will allow you to find out information anonymously.
Take some time to visit open houses on the weekend. It doesn't cost anything to look, and looking at a few different homes might give you some ideas for things you'd like in a house but haven't considered.
Above all, do not obligate yourself to any Agent just yet because if you aren't sure what you want, how will they know what to look for? Back to top
BUYERS101
How To Buy A House
It's Only Financial
If you are short of cash, start saving money. You can figure out how much the Principal & Interest payments of a mortgage will cost by using this calculator.
You'll need to have money available for a down payment and this could be in stocks, retirement plans or assets you may consider converting to liquid cash when the time comes.
The Royal Bank has attempted to provide a reasonable presumption of what a typical Buyer should expect to pay for various closing costs and what they can afford to buy.
Try not to add any additional debt. You may have to pay off your credit cards to offset your net worth into a more positive picture. Avoid making any major purchases on credit until after you have bought your new home.
Any competent REALTOR® can help you determine how much you can afford, and they can provide you with information on homes that may of interest you.
Basically, you can estimate the size of mortgage you qualify for by calculating your gross monthly income by the a formula called a GDS or Gross Debt Service Ratio.
Mortgage companies use this formula to determine how much they'll lend you. Most of the lenders use a 30/40 ratio. A Buyer or Seller may find it advantages to visit the Canadian Government Site of CMHC Canada Mortgage & Housing Corporation
There is no doubt that if one can sell their principle residence without paying a commission the extra savings would feel better in their pocket.
Both Seller and Buyer feel they are saving something. But are they?
There are circumstances when selling privately is a definite advantage and then there are times when it is not.
Hot Market In a hot market everyone gets caught up in the frenzy of escalating prices but the only way to know what your property will go for is to expose it properly to the market place. That means listing it for sale on the local MLS (Multiple Listing Service) with an experienced Realtor.
Not only are all the eligible Buyers informed about the availability of the property but through the services of their own Agent they can be guided through the organized process in which there is protection for all consumers.
Down Market When the market is down and listings take months to even get viewings never mind offers, selling privately is almost never a consideration.
No matter what you are think your property is worth, there is almost no one who will agree with you.
Conclusion
In either type of market, You may be tempted to just get a free evaluation from the local Realtor and then sell the place to your relative or friend for around that price. If you want to maximize the equity, this may not be the best way to do so.
From a Buyer’s perspective, a hypothetical price is more apt to be an unrealistic one in relation to the prevailing conditions.
The services provided by the local Realtor are like any other service in any other business and is only as valuable as the recipient believes it to be. There are some things that are best left to those who do it every day. All you really need to know about:
