advice and tips for buying and selling real estate and homes

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

519-642-0619tom@link2realty.ca

Contact us today and let us be the link in your home buying purchase.