Welcome to the RE/MAX Waters Advantage! Orangeville Real Estate Blog

How To Buy a Home For Beginners in 12 Easy Steps

1) Locate a reliable, experienced, and hard working real estate consultant. The best way to do this is to ask for a personal introduction from someone you know and trust who raves about the real estate consultant they hired to help them buy a home.

2) Set up a time to meet with this real estate consultant in person and have them consult with you and have them recommend a mortgage consultant to you. Now contact this referral and begin to get your ducks in a row with your financing. A thing to look for is a real estate consultant that asks you questions about what's important to you in your home buying experience. Lastly, you will want to discuss "Buyer Agency" and other options on how you agree to be represented by your real estate consultant during this initial consultation.

3) Once you have a pre-qualification or pre-approval letter in your hand, and your real estate consultants hand you are ready to go shopping for a home.

4) Begin to narrow down your search by sections of town (especially if you in a big city), then subdivisions, then home choices. The best way to start this is to get suggestions from your real estate consultant by homes in your price range and have him/her suggest subdivisions for you to drive through. Then take some time to drive those areas and subdivisions.

5) Now that you have that done pick the areas or subdivisions you want to buy in. Imagine yourself living in those areas before you look inside any homes.

6) Have your real estate consultant pull up homes in those areas and/or subdivisions and have them e-mail you homes in those areas. Once you have that list pick for example approximately 20 homes to go drive by that are your favorites.

7) Now pick about 3-7 homes to view inside. If there is only 1 home that's fine. If there's more than 7 homes break up the home search with your real estate consultant in multiple days. You don't want to see too many homes in one day because the homes will just run together. You certainly don't want to exceed about 20-30 homes because at that point you just begin spinning your wheels. If you have done your research correctly even 20 homes is enough. There will be at least one home in that bunch you will like!

8) Select your favorite home and ask your real estate consultant what the "30 day price" would be (knowing this is critical!). He/she will now run the comparable home sales in the neighborhood and pull county records and help advise you and strategize with you your "Agreement to Buy" contract price and deadline date list.

9) Allow your real estate consultant to guide you through this negotiation process. This is where you really need someone to be your "Pit Bull" negotiator. You want a confident, professional, and firm consultant to guide you at this point. This is really where they earn their fee. You want someone at this point who makes you feel like they are worth every penny they are earning because this is their shinning moment for you! Even at this point is a great time to introduce some friends of yours to your real estate consultant, if you are happy with the results so far! They will love you for it and will work even harder for you if you do!

10) Now a true consultant will dot every i and cross every t as he/she oversees all the details of the transaction till the celebration...meaning the closing.

11) You may have two more opportunities for your real estate consultant to be a "Pit Bull" negotiator for you. That is at the inspection resolution period and the walk through and the closing celebration table.

12) Closing celebration! This is a new beginning for you. At the closing of your transaction you want to know about all the final figures before you sit down at the closing celebration table.Congratulations you are a new homeowner! You now have the confidence that you have made a sound investment and home for your family.

Who is the next person you know who could use this kind of help? Who comes to mind first?

David

P.S. You really want to ask your consultant when you're at your initial consultation if they offer after sale service? Will they be available for you after the celebration if a problem arises? You want someone who commits to after sale service to you for life!

1) Locate a reliable, experienced, and hard working real estate consultant. The best way to do this is to ask for a personal introduction from someone you know and trust who raves about the real estate consultant they hired to help them buy a home.

2) Set up a time to meet with this real estate consultant in person and have them consult with you and have them recommend a mortgage consultant to you. Now contact this referral and begin to get your ducks in a row with your financing. A thing to look for is a real estate consultant that asks you questions about what's important to you in your home buying experience. Lastly, you will want to discuss "Buyer Agency" and other options on how you agree to be represented by your real estate consultant during this initial consultation.

3) Once you have a pre-qualification or pre-approval letter in your hand, and your real estate consultants hand you are ready to go shopping for a home.

4) Begin to narrow down your search by sections of town (especially if you in a big city), then subdivisions, then home choices. The best way to start this is to get suggestions from your real estate consultant by homes in your price range and have him/her suggest subdivisions for you to drive through. Then take some time to drive those areas and subdivisions.

5) Now that you have that done pick the areas or subdivisions you want to buy in. Imagine yourself living in those areas before you look inside any homes.

6) Have your real estate consultant pull up homes in those areas and/or subdivisions and have them e-mail you homes in those areas. Once you have that list pick for example approximately 20 homes to go drive by that are your favorites.

7) Now pick about 3-7 homes to view inside. If there is only 1 home that's fine. If there's more than 7 homes break up the home search with your real estate consultant in multiple days. You don't want to see too many homes in one day because the homes will just run together. You certainly don't want to exceed about 20-30 homes because at that point you just begin spinning your wheels. If you have done your research correctly even 20 homes is enough. There will be at least one home in that bunch you will like!

8) Select your favorite home and ask your real estate consultant what the "30 day price" would be (knowing this is critical!). He/she will now run the comparable home sales in the neighborhood and pull county records and help advise you and strategize with you your "Agreement to Buy" contract price and deadline date list.

9) Allow your real estate consultant to guide you through this negotiation process. This is where you really need someone to be your "Pit Bull" negotiator. You want a confident, professional, and firm consultant to guide you at this point. This is really where they earn their fee. You want someone at this point who makes you feel like they are worth every penny they are earning because this is their shinning moment for you! Even at this point is a great time to introduce some friends of yours to your real estate consultant, if you are happy with the results so far! They will love you for it and will work even harder for you if you do!

10) Now a true consultant will dot every i and cross every t as he/she oversees all the details of the transaction till the celebration...meaning the closing.

11) You may have two more opportunities for your real estate consultant to be a "Pit Bull" negotiator for you. That is at the inspection resolution period and the walk through and the closing celebration table.

12) Closing celebration! This is a new beginning for you. At the closing of your transaction you want to know about all the final figures before you sit down at the closing celebration table.Congratulations you are a new homeowner! You now have the confidence that you have made a sound investment and home for your family.

Who is the next person you know who could use this kind of help? Who comes to mind first?

David

P.S. You really want to ask your consultant when you're at your initial consultation if they offer after sale service? Will they be available for you after the celebration if a problem arises? You want someone who commits to after sale service to you for life!

Has the trading of real estate changed over the years?

Has the trading of real estate changed over the years either than the prices?

Considering the internet, cell phones, faxes and virtual offices, I’m sure we all agree it has.

Real estate however is still a personal business, a face to face meeting and mutual agreement of 2 parties to purchase and sell a property. That being said, let’s overhear a conversation about changes.

One evening a grandson was talking to his grandfather about current events. The grandson asked his grandfather what he thought about the shootings at schools, the computer age, and just things in general. The Grandfather replied,

'Well, let me think a minute, I was born before: Television, penicillin, polio shots, frozen foods, Xerox contact lenses 'Frisbees and the pill.

There were no: credit cards, laser beams or ball-point pens.

Man had not invented: pantyhose, air conditioners, dishwashers, clothes dryers and the clothes were hung out to dry in the fresh air and man hadn't yet walked on the moon.

Your Grandmother and I got married first. And then lived together. Every family had a father and a mother.

Until I was 25, I called every man older than me, 'Sir'. And after I turned 25, I still called policemen and every man with a title, 'Sir.'

We were before gay-rights, computer- dating, dual careers, daycare centers, and group therapy. Our lives were governed by the Ten Commandments, good judgment, and common sense. We were taught to know the difference between right and wrong and to stand up and take responsibility for our actions.

Serving your country was a privilege; living in this country was a bigger privilege.

We thought fast food was what people ate during Lent.

Having a meaningful relationship meant getting along with your cousins.

Draft dodgers were people who closed their front doors when the evening breeze started.

Time-sharing meant time the family spent together in the evenings and weekends-not purchasing condominiums. 

We never heard of FM radios, tape decks, CDs, electric typewriters, yogurt, or guys wearing earrings.

We listened to the Big Bands, Jack Benny, and the President's speeches on our radios. And I don't ever remember any kid blowing his brains out listening to Tommy Dorsey.

If you saw anything with 'Made in Japan ' on it, it was junk. The term 'making out' referred to how you did on your school exam. Pizza Hut, McDonald's, and instant coffee were unheard of.

We had 5 &10-cent stores where you could actually buy things for 5 and 10 cents. Ice-cream cones, phone calls, rides on a streetcar, and a Pepsi were all a nickel. And if you didn't want to splurge, you could spend your nickel on enough stamps to mail 1 letter and 2 postcards.

You could buy a new Chevy Coupe for $600, but who could afford one? Too bad, because gas was 11 cents a gallon! Our first house was $8,900 and taxes were $83.00.

In my day: ''grass' was mowed, ''coke' was a cold drink, ''pot' was something your mother cooked in and ''rock music' was your grandmother's lullaby. ''Aids' were helpers in the Principal's office, '' chip' meant a piece of wood, ''hardware' was found in a hardware store and ''software' wasn't even a word.

And we were the last generation to actually believe that a lady needed a husband to have a baby. No wonder people call us 'old and confused' and say there is a generation gap... And how old do you think I am?

How old do you think this person is? Is he your father? Is he your grandfather?
I bet you have this old man in mind...you are in for a shock! Read on to see -- pretty scary if you think about it and pretty sad at the same time.

This man would be only 53 years old! Real estate may be the second oldest profession in the world and business is still done the same way, trying to reach an agreement. The tools are different but the results are the same.

So when it is time to purchase or sell a property, choose a Real Estate Consultant.

Bank of Canada Hinting That Mortgage Rates Might Rise Sooner Than Expected

 

Anyone who’s been involved in a Orangeville, Oakville, Brampton, Caledon and Toronto home or condo purchase (to name just a few areas) in the last three months or so knows that the market is very busy. So busy in fact that multiple offers are happening between 20-50% of the time, depending on the area.

One of the main reasons for all this activity is the low, low mortgage interest rate. Currently a savvy buyer can arrange a 5-year fixed-rate mortgage for just under 4.0% OR get a variable rate mortgage at prime (currently at 2.25%).

Just a few months ago, fixed rate mortgages were around 4.4% and variables were at Prime + 0.5% or + 0.75% for a 5-year term.

Until now, the Bank of Canada had stated that they would hold the line on raising the bank rate (which directly impacts the prime rate) until the end of the second quarter of 2010. There’s now been some tidbits of information coming from the Bank of Canada governor Mark Carney that they would take into consideration undue rises in real estate prices as a signal to increase their bank rate sooner than planned.

The Reserve Bank Of Australia suprised many economists earlier this week when they raised interest rates and cited ’significant growth in housing credit and dwelling prices’ as part of their justification.

So how can a future Toronto home buyer protect themselves against any upcoming rate increases?

The best way is to get a written mortgage pre-approval from the bank of your choice. That pre-approval should state the maximum amount of mortgage you’re approved for, the rate that’s guaranteed and the amount of time the rate is guaranteed for. Most banks will issue that guarantee for 60-, 90- or 120-days.

Make sure you do it right - provide your bank with employment letters, your last Notice Of Assessment from Revenue Canada and authorize the bank to pull your credit bureau.  This way they can issue your full mortgage pre-approval without any conditions in it.

If you want the name of three great mortgage consultants who can help you with this (and who I trust quite a bit), just email me at David (at) searchorangevillehomes.com with the subject line "Best 3 Mortgage Consultants".

TD Economics yesterday released an excellent report talking about this very subject.  To read their complete report, CLICK HERE

Anyone who’s been involved in a Orangeville, Oakville, Brampton, Caledon and Toronto home or condo purchase (to name just a few areas) in the last three months or so knows that the market is very busy. So busy in fact that multiple offers are happening between 20-50% of the time, depending on the area.

One of the main reasons for all this activity is the low, low mortgage interest rate. Currently a savvy buyer can arrange a 5-year fixed-rate mortgage for just under 4.0% OR get a variable rate mortgage at prime (currently at 2.25%).

Just a few months ago, fixed rate mortgages were around 4.4% and variables were at Prime + 0.5% or + 0.75% for a 5-year term.

Until now, the Bank of Canada had stated that they would hold the line on raising the bank rate (which directly impacts the prime rate) until the end of the second quarter of 2010. There’s now been some tidbits of information coming from the Bank of Canada governor Mark Carney that they would take into consideration undue rises in real estate prices as a signal to increase their bank rate sooner than planned.

The Reserve Bank Of Australia suprised many economists earlier this week when they raised interest rates and cited ’significant growth in housing credit and dwelling prices’ as part of their justification.

So how can a future Toronto home buyer protect themselves against any upcoming rate increases?

The best way is to get a written mortgage pre-approval from the bank of your choice. That pre-approval should state the maximum amount of mortgage you’re approved for, the rate that’s guaranteed and the amount of time the rate is guaranteed for. Most banks will issue that guarantee for 60-, 90- or 120-days.

Make sure you do it right - provide your bank with employment letters, your last Notice Of Assessment from Revenue Canada and authorize the bank to pull your credit bureau.  This way they can issue your full mortgage pre-approval without any conditions in it.

If you want the name of three great mortgage consultants who can help you with this (and who I trust quite a bit), just email me at David (at) searchorangevillehomes.com with the subject line "Best 3 Mortgage Consultants".

TD Economics yesterday released an excellent report talking about this very subject.  To read their complete report, CLICK HERE

Why Are You Pricing Your Home Like Clothing At The Mall?

Sellers who really want to sell their property NOW so that they can move on, are more involved with analyzing their price point than ever before.  It seems that most sellers want to price their property with something that ends in '99'--$599,000 or $599,900, etc.  Here's what I ask them:

"You're about to move to Orangeville and your Realtor has set up a search for you through his/her MLS.  Can you tell me what your price parameters are for that search?  When you're searching online at night for homes in Orangeville (or destination city of choice), what price points do you use in your own search?"

They'll say, "We're moving up a bit so, we enter $600,000 - $700,000."

"What if you were searching from $600,000 to $700,000 here in Orangeville?  You would completely MISS this home in your search!  Had you priced it at an even $600,000, you would capture buyers from both the $500,000 - $600,000 AND the $600,000 - $700,000 ranges.  Setting the price at $599,000, will cause you to lose an entire group of buyers for your home!"

They look at me for a minute and my analytical-minded clients have an ah-ha moment!  Then, they competely agree with me!

Try it, it WORKS!  I recently listed a home in a very high price range.  We tried a little higher, and then dropped to $550,000 (not $549,999) and got multiple offers within a few days.  If you searched MLS for the even number, either way (least price or highest price) you would catch this listing!  When you look at another identical model with slightly less features, it was listed for the "wrong" price, with an 'off-beat' number, which was missed by 1/2 of their prospective buyers. 

Stop pricing your homes as though they were sale-price clothing at the mall!  Use those 'round' numbers and see how it works for you.  You'll instantly expand your pool of buyers!

Orangeville MarketWatch Program

Visit http://www.SearchOrangevillehomes.com to get started. Orangeville MarketWatch is a home buying plan developed for you to make your home search simple. If you're looking to buy a home in Orangeville and the surrounding areas.

Starting to Look for a House in Orangeville?

MarketWatch is a home buying plan developed for you to make your home search simple.  It's about gathering information and learning about the market so that when you're ready to buy a home in Orangeville, you are fully prepared.

If you’re looking to buy a home in Orangeville in the next 6-12 months, MarketWatch is for you.  Best of all, it's FREE and easy.

If you are not currently a MarketWatch subscriber, visit SearchOrangevillehomes.com to sign up today.

Here's what Jim A. from Brampton said about MarketWatch:

"Your "MarketWatch" is the best comprehensive listing service that I have seen anywhere.  There is absolutely no need to look elsewhere for listings in the Orangeville market area."

You'll have access to our "members only" website, plus regular updates by mail and email about listings, information and lots more.

Sign up today at SearchOrangevilleHomes.com!

If you’re looking to buy a home in Orangeville in the next 6-12 months, MarketWatch is for you.  Best of all, it's FREE and easy.

If you are not currently a MarketWatch subscriber, visit SearchOrangevillehomes.com to sign up today.

Here's what Jim A. from Brampton said about MarketWatch:

"Your "MarketWatch" is the best comprehensive listing service that I have seen anywhere.  There is absolutely no need to look elsewhere for listings in the Orangeville market area."

You'll have access to our "members only" website, plus regular updates by mail and email about listings, information and lots more.

Sign up today at SearchOrangevilleHomes.com!