Resale Homes
Resale Homes
Key issues to consider when selling your home
Supply and demand
Buying your home was probably the best investment you ever made. That's because, over the long term, real estate has proven to be a sound investment while at the same time offering you and your family shelter and a feeling of pride of ownership.
However, real estate is subject to the law of supply and demand, which creates cycles in the market. A shortage of homes generally means prices rise. This cycle is known as a "seller's market."
Alternately, a surplus of homes can result in a slowdown in sales or even a reduction in prices and is referred to as a "buyer's market."
Which market is best?
Obviously, you want to sell your home quickly and for the highest price. In a seller's market, you often see many buyers competing for the same house, resulting in it selling for well above the asking price.
While the profits can be high when selling your home in this market, if you're planning to purchase another home after the sale, chances are you'll have to pay higher prices as well.
In a buyer's market, you may have to wait longer to sell your home for a fair price. The upside to selling in a buyer's market is you'll have more selection and pricing options when you go looking for a new property.
Expect trade-offs
Some people are concerned that if they trade up to a larger home in a buyer's market, they will lose some of their home's equity in the sale.
While you may sell your home at a "discount," it's likely you'll purchase a larger home at an even greater discount, providing a greater potential for appreciation.
Changing seasons
In many parts of Canada, changing seasons can affect buyer demand. For example, fewer buyers may be out looking at homes during the cold, snowy winter months, but as a seller, you'll be competing with fewer homes on the market. Spring tends to be an attractive time for real estate sales as gardens start to bloom and people come out of hibernation. Buyers with school-aged children like to purchase in the spring so they can move in over the summer.
-- Canwest News Service
Resale Homes
Mortgage brokers seek best deal for buyers
Who are mortgage brokers and who do they work for? The question is one I hear a lot these days.
Here in Canada, about 25 per cent of mortgages originate through mortgage brokers (versus about 75 per cent of mortgage dealers in the U.S and Europe).
Most people just walk into their local bank and fill out the paperwork and believe they received the best deal.
Well, the best deal for you, or for the bank?
When you walk into the bank, you will be shown only the products the bank has to offer. With the vast number of lenders and mortgage options available today, this strategy just doesn't make sense anymore. You will never know what other options are available without working with a qualified mortgage broker.
As a mortgage broker, I don't only deal with the major banks but other financial institutions that specialize in mortgage lending. Today's educated borrower realizes that utilizing the services of a mortgage broker will not only save them time and aggravation, but in most cases save them a substantial amount of money throughout the term of their mortgage.
Mortgage brokers work with borrowers of all credit types and specialize in being able to find a mortgage of any size and type on any given day. Most also will work with their clients on credit issues to improve their ability to obtain financing. They connect you to a lender and help you navigate through the steps the lender requires of you as well.
There is a misconception that a mortgage broker costs you money. In 90 per cent of cases, a mortgage broker is paid by the lender based on the dollar amount of the mortgage. In cases where he/she has to go to a private lender, or a lender who does not provide compensation for the mortgage broker's service, payment is made by clients and taken out of the mortgage's proceeds.
If you are being charged for the services of a mortgage broker, ask if they are also being paid by the lender. An ethical mortgage broker will not double-end on fees.
Vic Cotton is a mortgage professional and managing partner with mortgagesbrokers.com.
