Choosing the Right Sales Representative/Broker

 

Choosing the Right Sales Representative/Broker


 

Choosing the Right Sales Representative/Broker
 

Your sales representative is a trained professional who knows all aspects of the real estate market. A sales representative will save you time, money and aggravation.

As with purchasing a home, you want to list with the sales representative who is the expert in your location. After all, potential purchasers will be calling this same "area expert" to inquire about houses for sale. There will be a few sales representatives who are knowledgeable about your neighbourhood. Call them up and interview them. You need to feel comfortable with him or her, after all, they will be working for you.


 

Should You Go With a Non-Exclusive or Exclusive Listing Arrangement?
If you enter into this type of arrangement with your sales representative, you are giving him or her the exclusive right to find a purchaser for your home. With this type of agreement, no other sales representative will bring potential buyers to your home, because only the listing sales representative is entitled to the commission.

You may consider this type of arrangement in a Sellers' Market during which time there are more people interested in purchasing a home than there are homes available.

Understand Market Conditions
The real estate market is in constant flux, not only as a whole but in particular areas as well. Knowing what is going on in the overall and local real estate markets will help you understand how these conditions can affect the sale of your home. We've designed the following comparison to help give you an overview of the three significant market positions. When you meet with your sales representative, ask about the current state of the market.

Buyers Market:
The supply of homes on the market exceeds demand.

Characteristics: High inventory of homes. Few buyers compared to availability. Homes usually stay on the market longer. Prices are stable or perhaps dropping.
Implications: Buyers spend more time looking for a home, and when they negotiate, they usually have more leverage.

Sellers Market:
The number of potential buyers exceeds the supply of homes on the market.

Characteristics: There is a smaller inventory of homes with many buyers. Homes sell quickly. Prices usually increase.
Implications: Prices may be higher or perhaps climbing. Buying decisions must be made quickly. Conditional offers may be rejected.

Balanced Market:

The number of homes on the market is roughly equal to the demand.

Characteristics: Demand equals supply. Sellers accept reasonable offers. Homes sell within a reasonable time period. Prices generally remain stable.
Implications: There is less tension among buyers and sellers. There is a reasonable number of homes to choose from. 

Jeet Nagi,Broker

www.pnagi.com

 


Buying A Home - Getting Started The Very First Step !!!

Getting Started The Very First Step

The first question you're bound to ask is, "How much home can I afford?" That depends on a number of factors:

Your selected location. Are you set on a specific area? Downtown? The suburbs? A rural setting?

Your preferred type of home. Detached? Semi? Duplex? High-rise? Link? Townhouse? New or Resale? There are a variety of home styles you will want to explore.

Your income. After all, it's not just the mortgage you have to take into account. There are property taxes, utilities, and in some cases condo or strata fees. As a general rule of thumb, your monthly home-carrying cost should not exceed 30-35% of your income.

Market conditions. Is it a buyer's, sellers or balanced market?

There are also additional costs to keep in mind. It's a good idea to work out exactly what you want and what you can afford before you begin the search. Be specific! After all, you don't want to suddenly come to the realization that your dream house has come with a nightmare of bills and expenses. Stick to looking at houses in your price range. The more you've thought it out, the better your sales representative can meet your needs.

A part of deciding just what you can afford can be accomplished by meeting with your bank or a mortgage broker and negotiating a pre-approved mortgage. There are many types of mortgages and many different terms. Research all of your options. This ensures that there are no surprises once you're ready to make an offer.

Once you've figured out your monthly expenses and what you can afford, you can start your search. It could happen that the first home you see is the one you want; or you might look at home after home with none of them catching your interest. Rest assured, the home you're looking for is out there, and when you find it, you're ready to make an offer. If your offer is accepted, the next steps are closing and moving into your new home.

Purchasing a home is easy once you put your plans into action.

Jeet Nagi, Broker

Remax Real Estate Centre Inc.

Ph: 1-866-456-1177

www.pnagi.com

 


Canadian Housing Market to Moderate

 

OTTAWA, August 14, 2012 — Canada’s new and existing home markets are expected to moderate through the end of 2012 and into 2013, according to Canada Mortgage and Housing Corporation’s (CMHC) third quarter 2012 Housing Market Outlook, Canada Edition1.

“Canada’s housing markets are expected to moderate over the rest of 2012 and into 2013 after showing sustained activity levels, specifically in the multiples segment, over the first half of 2012. Balanced market conditions in most local housing markets will result in a slowing in house price growth as well,” said Mathieu Laberge, Deputy Chief Economist for CMHC.

On an annual basis, housing starts will be in the range of 196,800 to 217,000 units in 2012, with a point forecast of 207,200 units. In 2013, housing starts will be in the range of 173,000 to 207,400 units, with a point forecast of 193,100 units.

Existing home sales will be in the range of 442,300 to 485,200 units in 2012, with a point forecast of 466,600 units. In 2013, MLS®2 sales are expected to move up in the range of 440,500 to 487,600 units, with a point forecast of 469,600 units.

The average MLS® price is forecast to be between $351,300 and $378,400 in 2012 and between $358,000 and $395,800 in 2013. CMHC’s point forecast for the average MLS® price is $368,000 for 2012 and $377,300 for 2013.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

For more information, call 1-800-668-2642. CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.

1 The forecasts included in the Housing Market Outlook reflect information available as of July 25, 2012. Where applicable, forecast ranges are also presented in order to reflect financial and economic uncertainty.

2 Multiple Listing Service® (MLS®) is a registered trademark owned by the Canadian Real Estate Association.


Major Changes To CMHC Rules !!!

 

Major Changes To CMHC Rules!!!

Finance Minister Jim Flaherty has just announced sweeping changes to Canada Mortgage and Housing Corporation (CMHC)Canada’s national housing agency. CMHC is Canada’s premier provider of mortgage loan insurance, mortgage-backed securities, housing policy and programs, and housing research.

The 3 major changes are as follows;

1) A reduction in MAX amortization for CMHC insured mortgages from 30 yrs back down to 25 yrs.  This is will result in Canadian home buyers paying less in mortgage interest payments over the course paying off your home.  The downfall is that fewer people will qualify for a mortgage as the payments will be higher, and more income will be required to qualify for a mortgage.

2) Homes priced over $1 million are no longer eligible for CMHC insurance.

3) MAX refinance has been reduced from 85% (Loan To Value) LTV to 80% LTV.

Read More ... The Globe and Mail

Paramjeet Nagi, Broker

www.pnagi.com

416-884-1770


House Hunting Down Payment Requirements

 

For many people, the hardest part of buying a home is saving enough money for a down payment. The bigger the down payment, the smaller the amount of your mortgage loan. If you've arrived in Canada within the last 36 months, you may qualify for Genworth's or CHMC  New To Canada  product, which allows you to buy with as little as a 5% down payment.

A down payment of 20% or more of the property will qualify you for a conventional mortgage. If it is less than 20% you will pay for mortgage default insurance. Mortgage default insurance enables buyers with low down payments access to the same competitive mortgage interest rates as buyers with larger down payments. It’s insurance which guarantees the mortgage by protecting the lender should you be unable to make your mortgage payments for unforeseen reasons.

Genworth Financial Canada is the largest private sector supplier of mortgage default insurance in Canada. Mortgage default insurance is also available from several other providers in Canada like CHMC. Your lender will both inform you about, and arrange for, mortgage default insurance.