advice and tips for buying and selling real estate and homes
TRANSCRIPT
Agenda• The Real Estate Market
• Financing/Mortgages• Interest Rates • Real Estate Agents
• Lawyers & Closing Costs• Deciding 3 steps• Offers & Clauses
• Building Inspectors• Pricing your Home• 4 Types of Buyers
• Prepare your Home for showing• Net Equity
Ask Ask QuestionsQuestions
Goals• Necessary tools • Help you through the Home Buying & Home Selling
…..process
The Real Estate Market
RatesPricesCosts
↑↑
0
20
40
60
80
1989 1993 1997 2000 2003 2006 2009Ratio
Seller’s Market
Buyer’s Market
50% Line
Law of Supply and Demand
# of buyers versus # of sellers
Balanced MarketBuyer’s Market
Guidelines to financing
Job Looking for Job Stability 3 years Time on Job
Credit Quality of credit management, repayment and utilization High beacon score
Down payment Minimum 5% Down payment from own resources, or gift from family member
Affordability Total Debt Service Ratio > 40%* Gross Debt Service Ratio > 35%
Services available to Buyers:Service Customer
Client Arrange property showings, Assist with financing Provide accurate information & Explain forms and agreements
Yes Yes Give advice and counsel, Keep bargaining positions confidential Negotiate best terms and price, Disclose info, Improve bargaining position Prepare offer favorable to buyer, Show unlisted properties
NoYes
A REALTOR® is legally obligated to look after the best interest of the person they are working for.
A REALTOR® may be your agent - if you have clearly established an agency relationship.
A Listing contract or a Buyers contract agreed and signed by both parties establishes a client relationship.
RECO, OREA, CREA
Finding Nemo
3 Steps…3 Steps…
1. Top 20 things you would like
2. Explain Why
3. Prioritize List
2. why…1) 4 Bedrooms2) 1 Floor Home3) School Area4) Family Room5) Central Air6) Fenced Yard7) Workshop8) Office9) 2 Bathrooms10) Shopping
11) Good Shape12) Bus13) Gardens14) Dining Room15) 2 Car Garage16) Decorated17) Safe Area18) $ Affordable 19) Wood Floors20) Bright Airy
Jim’s Top 201.1.
1) 4 BedroomsParents, Kids, Office/Guest
2) 1 Floor Stairs, Retirement
3) School AreaGrade 11 & 12
4)…5)…6)…→ 20)
12 1) 4 Bedrooms2) 1 Floor Home
14 3) School Area4) Family Room
11 5) Central Air6 6) Fenced Yard9 7) Workshop18 8) Office4 9) 2 Bathrooms19 10) Shopping
10 11) Good Shape20 12) Bus15 13) Gardens13 14) Dining Room5 15) 2 Car Garage17 16) Decorated8 17) Safe Area
18) $ Affordable 7 19) Wood Floors16 20) Bright Airy
2→3. Prioritize…3. Prioritize…
3→
1→
Never look at a propertyThat doesn’t have yourTop 3 & partner’s Top 3
Agreement of Purchase and Sale
Price…Terms…
Conditions…
(the offer)
3 things to do with any offer!1-accept 2-sign back 3-tear it up
Negotiating Strategy…
Have a plan!
Common ClausesThis offer is conditional upon “X” (amount spelt out) or satisfactory financing….
This offer is conditional upon home inspection Buyer’s sole and absolute discretion or report seller allowed to remedy or determine building and mechanics are sound or satisfactory report …
This offer is conditional upon buyer receiving satisfactory insurance quote…
Financing
BuildingInspection
Insurance
Watch the wording, ask questions
3 Ways to Hammer Interest Rates3 Ways to Hammer Interest Rates
Talk to the right personTalk to the right person
Know the marketKnow the market
Be prepared to invest in savings…Be prepared to invest in savings…
Make sure the person you are speaking with is a mortgage specialist.
Do your research. Know what the current 5 year fixed rates are, and the current prime rate. Information is power.
The best way to get a GREAT deal…Bring more pieces of business to the bank. The bigger the piece of pie, the more you save.
Building Inspections
Report on the state of the building…
Roof – ChimneyMold – MoisturePlumbing – ElectricalHeating – CoolingStructural
An Inspectors job is to identify problems & offer solutions
Honey… I think we should reduce the Price…
Honey, they just reduced the Price…we better act quick
Spring Market Summer FallWinter
When is the best time to sell?
Highest Activity
Lots of competition
VacationsKids out of school
Move before XmasNot as much competition
TransfersLittle or nocompetition
Best time to sell is when you are ready!
Pricing
SOLD FOR SALE
Examine Similar Properties
EXPIRED
REALITY HOPE FANTASY
Comparative Market Analysis
Bldg insp
Net Equity Selling Price __________
- Mortgage __________- Mortgage penalty __________- Liens and loans __________- fees etc. __________
= Net Equity $_________
less
less
less
less
How much $ you have left!
4 types of buyers
Serious motivated
Serious not motivated
Investors
Looky Lou’s aka tire kickers
All Marketing towards… - serious motivated - serious not motivated
Preparing Your Home For Showing
Do it yourself or hire a home stager…
72% of buyers first impressions is formed as soon as they step inside the house
- allow buyers to easily move into to their new home- help achieve highest dollar possible
Buyers are either spending money making changesor
Paying money (to you) not to
Your Real Estate SpecialistThomas (Tom) Dampsy
As Broker of Record and Owner of link 2 realty ltd, I As Broker of Record and Owner of link 2 realty ltd, I am able to guide you through the maze of am able to guide you through the maze of buying and selling your property.buying and selling your property.
My Commitment to you……My Commitment to you……
Counsel Availability Confidentiality
Honesty Integrity
Contact us today and let us be the link in your home buying purchase.