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Calgary First Time Home Buyer Needed

September 19, 2010 By Leave a Comment

Calgary First Time Home Buyers

Are you a Calgary First Time Home Buyer?

We are  currently in the process of looking for a Calgary first time home buyer to document their complete first time home buyer experience for broadcast.  You must be willing to be videoed as well as video the process of buying your first home. (a pocket video camera will be supplied) Your progress will be posted throughout your journey for your friends and family to see, all professionally edited with music and easy for you to share.

The journey of buying your first home is exciting and is a moment in time to celebrate. We are looking for a few individuals who are enthusiastic about this process and willing to share it with other potential first time home buyers. We want to show other potential home buyers that this doesn’t have to be a scary experience, it is another step in the journey of life,  and it doesn’t have to be stressful. You are in great experienced hands and together we will pave the way for others to learn from.

A lot of the websites out there stress that buying your first Calgary home is the “biggest” single expense of your lives – choose properly. That just makes it sounds so scary. While it is true that it is likely the single most expensive item you might acquire, it is also your home, and eventually it will be all yours with no mortgage or loan left owning.  My opinion is that you may as well start home ownership earlier than later, you’re going to do it at some point and the earlier you do the better you will be for it in the future.

We are here to guide you through the entire process from start right through to possession, so the only thing that you have to do, is simply contact us through the contact page to get the ball rolling in the right direction.

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Preparing to Buy Your First Home

December 4, 2011 By Leave a Comment

Today a potential first time home buyer contacted me with some concerns about their credit rating. They had some slow credit in the past and although a student in school, they are looking forward to the future of becoming a first time home buyer in the next few years. It is not a bad idea to consult a professional in the beginning stages while you are thinking about your options as a professional can help you get on track to reach your real estate goals. Contacting a professional for advice may even enable you to reach your goals in a faster amount of time.

Here are some tips to think about when you are considering purchasing your first home in the future:

Your Credit

Poor credit or no credit you will want to get it in check before any financial  institution will provide you with a mortgage approval. It is good practice to pull your credit yourself once a year to ensure that it has no errors and to correct any mistakes that might be reported incorrectly. This is always a good idea to make sure no one has stolen your identity as identity theft is also becoming more popular.

Having Balances on your existing credit also can lower your credit score, so if you have any credit cards or credit lines etc it is recommended that those balances do not go above 50% of the allowable credit.

Pay your bills on time – Keep your payments on time to ensure that your existing creditors are reporting positively to your credit bureau derogatory credit is the only reason why you will be turned down for a mortgage, after all why would a bank want to lend you money if you cannot seem to pay your bills on time.

Down Payment

You will require at least 5% down to purchase your new home. If you are currently saving for your down payment, consider getting an RRSP loan which is secured by the RRSP amount. These loans are relatively easy to acquire and assist in building good credit and in turn commit you to saving for your down payment. When your loan is paid in full you are then allowed to apply your RRSP as your down payment (max $25,000)

 

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Mortgage Management

October 12, 2011 By Leave a Comment

Mortgage management for your first Calgary home
When you are considering financing options for your first Calgary home you will want to ensure you are making the best decisions to save money and have financial stability into your future. There are many options when it comes to financing your home, you can choose from closed term mortgages or variable rate open mortgages as well as an abundance of prepayment options. To help you in making informed decisions I have outlined a few tips:

1. How much mortgage can you afford? When qualifying for a mortgage you must consider all your current financial obligations such as loans, credit cards, debts etc. This is an an opportune time to discuss your financial picture and obligations with a qualified mortgage professional.

2. Prepayment Options: Different lenders offer different terms and conditions in your mortgage. Just like those on any contract you need to be aware of your options and choose a mortgage that offers you the options that best suit your needs and lifestyle. Some lenders will allow you to prepay up to 10% per year of the original balance while others will go as high as 25%

3. Payment Acceleration : If you choose to pay your mortgage every 2nd week instead of monthly or bi-monthly at the end of the year you would have made an extra payment, this ‘extra” payment that you have made is directly applied to the principal of your mortgage and could save you a substantial amount of interest and overall shorten your mortgage amortization.

4. Payment Stability: Many first time home buyers take solitude in knowing what thier payment will be over their term (typically anywhere from 3 to 7 years), which is why many will choose a closed mortgage which will guarantee the interest rates and payment for a preselected period of time. But just wait… those who are little more “daring” and go for a variable rate mortgage could potentially save thousands in interest as the variable rates are historically lower than locked term rates. The downside of course is that your payment could change if interest rates go higher.

5. Blended Mortgages: Now if I hadn’t confused you enough some lenders allow you the options to blend different mortgages together to meet your needs. As an example you could take a portion of your mortgage as a revolving credit line and leave another portion as a locked term. This would allow you to  have the best of both worlds essentially.

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When is it the right time to buy your first home?

October 1, 2011 By Leave a Comment

Calgary Real Estate first time buyersWhen is it the right time to buy your first home?

This is a question that does not have an easy answer and the answer can be different for each individual. When you are younger it is probably a better time to take more financial risk then when you are older and later have dependents. The economy over the last few years has been unstable making it a bit foggy to know when the right time to buy a home might be. While our neighbours to the south have had a rough ride in their real estate markets our Canadian real estate market has followed it’s own path and has seen a different faith.

While it is true we tend to follow suit with the united states on interest rates and other trends but our real estate market has been on it’s own course. We have seen correction in the marketplace here in Calgary over the past years but it overall has done relatively well considering some of the other cities.

As a first time buyer in Calgary taking advantage of the lower prices and all time low interest rates could certainly be advantageous. These opportunities were not available over the last years. The market is showing stability and prices are stable with moderate gains in average price proving that the Calgary real estate is still a viable and affordable option.

With stable real estate values it would appear that now is the time to get into the market as a first time home buyer and take advantage of some of those affordable property prices and all time low interest rates. But you still want to make wise decisions about the type of home or condo you will want to buy now more than ever. Location is important as well as community and the amenities available to you, you will want to choose carefully.

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What To Expect When Buying An Older Home

September 12, 2011 By Leave a Comment

Older Home vs New construction

Purchasing an older home can be a great way to save a little money while also enjoying the charm and character that only an older home can provide. At the same time, there are several things to keep in mind when purchasing an older home. Otherwise, you might find yourself feeling severely disappointed by your purchase.

Making Upgrades

While older homes are typically less expensive to purchase than older homes, they can be more costly in the long-run. This is because older homes often require many upgrades in order to be safe and to comply with regulations. The electrical system, for example, may need to be upgraded in order to meet your electrical needs. Not only do many older homes have ungrounded outlets, but they may not have enough circuits to handle your modern-day appliances. Even a home that is only 20 to 30 years old may not have an electrical system that is capable of handling your needs. It is also important to inspect the furnace and other appliances before making a purchase. If they are the original appliances, you should be prepared to replace these items in the near future.

Planning for the Future

One of the perks to purchasing an older home is that they are typically located in well-established neighborhoods, for instance Northwest DC real estate. As such, you likely will not have to travel far to find grocery stores and other community amenities. At the same time, there is often little room for expansion when purchasing an older home. If the neighborhood is well-established, it is unlikely that new amenities will be added any time soon. Similarly, there may be no space or opportunity for you to add on to the home. If you think your needs may change in the near future, purchasing an older home with little room for growth or change may not be the right option for you.

Purchasing an older home can be the right choice for many people. Before making this decision, however, it is important to consider the pros and cons of purchasing an older home in order to be sure it is truly what is right for you.

About The Author – Kevin Koitz is a Washington DC native & Realtor and specializes in Bethesda real estate.

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Advantages of a Home Warranty

April 18, 2011 By Leave a Comment

Home WarrantyAre you considering making an offer on a home? If so, you might want to consider negotiating a warranty as part of your offer. While home warranties often come standard when purchasing a newly constructed home, this isn’t the case with older homes. Yet, the reality is that there are many advantages to home warranties that can be enjoyed by both those who are purchasing a newly constructed home and an older home.

Clearly, there are many advantages to having a home warranty. After all, home warranties cover the expenses that are associated with costly repairs to major systems in your home, including your heating, plumbing, electrical and air conditioning units. Home warranties will also pay for the repair or replacement of built-in appliances, even if they break down simply due to normal wear and tear. Warranties are even typically extended to septic systems, which can be especially important for areas like Lake Austin or anywhere waterfront properties are prevalent.

It is important to note that a home warranty is different from homeowner’s insurance. While homeowner’s insurance pays for things such as theft and disasters, a warranty covers the cost of repairing and replacing appliances and systems that have simply stopped working due to wear and tear. Whether the home being purchased is new or not, there is always a chance that certain items will stop working properly. Furthermore, for those who are purchasing a used home, the original warranties that came with the appliances and other systems may not transfer to the new owner. With a home warranty, these items are still covered even after they have changed hands.

While home warranties are usually in place for just one year, you might be surprised by how often you use it during this timeframe. In fact, many experts estimate that the average homeowner uses his or her home warranty more than two times per year. When moving into a new home, the last thing you want is to have to pay for unforeseen repairs and replacement costs. This can be especially true for older homes, such as those in Central Austin, which may already be prone to difficulty. Having a home warranty in place provides the peace of mind you need as you transition into your new home. Furthermore, if you wish, you can choose to extend your warranty for another year once the initial year is up.

While home warranties offer many benefits to home buyers, they offer benefits to the seller as well. Namely, a seller can significantly increase his or her chances of selling the home by offering a home warranty. With today’s market being so saturated with homes for sale, sellers are continually looking for ways to make their home stand out. By offering a home warranty with the purchase of the home, the seller sweetens the deal while also showing that he or she stands behind the quality of the home. In fact, people who offer home warranties with their homes typically sell their homes far more quickly and at a better cost than sellers who do not offer a warranty.

About the Author – Eric Bramlett is broker and co-owner of One Source Realty, a boutique real estate firm that services Steiner Ranch and the greater Austin area.

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Five Tips to Finding a Great Home in One Month

April 12, 2011 By Leave a Comment
first time home buyers

first time home buyers

The real estate market is in shambles in many parts of the US. Home prices have never dropped this much. Sellers have been hit hard over the last 5 years. Despite all of the blood in the streets it might be the perfect time to be a homebuyer.
Billionaire Warren Buffet once said, “Be fearful when everyone is greedy and be greedy when everyone is fearful.”

Buying a home is a big decision. You are signing up for a long-term commitment when you purchase real estate. There is absolutely nothing wrong with being a little cautious. You may not need to find a home within the next 30 days but you also do not want to be one of those home buyers that can never make a decision. I am a Sarasota Realtor and have had many clients search years for a home ultimately to never buy one. Usually, if you cannot find a home within a few months you are probably unrealistic, have paralysis of analysis, are afraid to make a mistake or simply just scared of commitment. Here are 5 tips to help you from becoming a lifelong home searcher.

1) Hire good help

If you get sued you hire a good attorney. If you have heart surgery you hire a good doctor. If you need retirement advice you hire a good financing advisor. Since you are about to embark on one of your largest financial transaction isn’t it smart to hire an experienced and qualified Realtor?

Unfortunately, getting a real estate license is not that hard. So many people have them but very few of them treat it like an actual business. Do you really want to entrust your largest financial transaction with someone who does it in his/her spare time?

2) Establish Your Needs and Wants

If you have a family of five with a large dog and cat should you really be looking at that 2 bedroom condo on the beach? Probably not. Sit down with all of the decision makers and write down the things you would like to have and then write down the things you must have. Knowing what you want and need is a crucial first step. It will save you tons of time and wasted energy if you actually look at property that suits your needs and wants.

3) Figure Out How To Pay For It

Don’t go out looking at $500,000 homes when in reality you can only afford one for $350,000. If you are paying cash this step is obviously relatively easy. If you need to borrow money then get this step out of the way before you view homes.

Lending has changed over the last 5 years. Back in 2003 to 2005 anyone that could fog a mirror could borrow money for a home purchase. Now, things are different. You need to be able to prove that you can pay the money back.

As a Sarasota Realtor I am contacted all of the time by people who want to immediately hop in the car and start looking at property. They want to figure out how to pay for it later and just assume that a bank will lend them money. Unless you can pay cash you need to arrange financing first before you spend a lot of time and energy. Your real estate agent, the listing Realtor and home seller will appreciate it.

4) Learn the market

Before you can make a very large financial decision it helps to have some market knowledge. Sit down with your Realtor with your list of needs, wants and budget and then figure out the very best neighborhoods. Have your agent set you up on an automated email system so you receive an email when a home sells, goes under contract or comes on the market in the areas that you are focusing on. Seeing what other people are willing to pay will help you figure out what you will probably need to pay.

If you have chosen the Harbor Acres neighborhood and everything in there is selling from $400,000 to $1,000,000 then you will probably need to spend that amount to buy a home there. Trying to find something there for $200,000 is probably a tremendous waste of time.

Most people need a dose of realism when it comes to buying real estate. You have to be realistic now or later. Don’t expect to find a seller willing to let his home go for $250,000 when it is really worth $500,000. Sellers typically always want more than their home is really worth. It is next to find impossible to find one willing to sell it below for a large discount from appraised value.

Don’t waste your time looking for the deal that will never be. This sort of thinking prevents people from buying. They are always looking but will never purchase unless they accept reality. The real estate remains to be pretty efficient.

5) Get in the Car

You have made a list of your needs and wants. You hire a fantastic Realtor. You have figured out your budget and have either been pre-approved for a mortgage or have set aside funds. Finally, you are realistic and up to speed on the real estate market. Now it is time to start looking at homes. It is pretty much that simple.

Purchasing a home can be daunting. However, if you are organized, prepared and knowledgeable then you can find a fabulous home within a short amount of time. Following these 5 tips and you can be enjoying your new home in no time.

Marc Rasmussen | Michael Saunders and Company | 941.812.6272 cell | marc@luxurysarasotarealestate.com | LuxurySarasotaRealEstate.com

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Calgary First Time Home Buyers Report by RE/MAX

April 6, 2011 By Leave a Comment

Calgary First Time Buyers Report 2011 -by RE/MAX

Kelowna, BC (April 5, 2011) — Driven by the threat of higher interest rates down the road, first-time buyers are contributing to strong upward momentum in residential housing markets across the country, according to a report released today by RE/MAX.
The RE/MAX First-Time Buyers Report, highlighting trends and developments in nineteen major Canadian centres, found that low interest rates and balanced market conditions have provided significant impetus in 2011, particularly at lower price points. Just over 30 per cent of markets are reporting sales in excess of 2010 levels as a result, while almost 70 per cent have experienced an upswing in average price. Leading the country in terms of percentage increases in the number of homes sold are Western Canadian markets, including Saskatoon (up close to 15 per cent), Greater Vancouver (up close to 12 per cent), and Winnipeg (up just over 11 per cent). With an average price hike of close to 20 per cent year-to-date (February), Greater Vancouver continues to show unprecedented strength, followed by Hamilton-Burlington (eight per cent), Quebec City (seven per cent), Winnipeg (close to seven per cent), Greater Toronto (five per cent), and Greater Montreal (five per cent).

“With the Canadian economy on firmer footing overall, residential real estate is well-positioned moving into the traditionally busy spring market,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Consumer confidence is climbing in conjunction with economic performance, and concerns over a secondary recession fade with each passing day. The mood is cautiously optimistic as first-time buyers enter the market.”

Inventory levels, while tight in several larger centres, are more balanced overall, giving first-time buyers a good selection of housing product from which to choose. Not surprisingly, condominium apartments and town homes have become the first step for many entry-level purchasers, especially in Greater Vancouver, Victoria, Kelowna, Edmonton, Calgary, London-St. Thomas, Hamilton-Burlington, Greater Toronto, the Island of Montreal, and Halifax-Dartmouth where average prices have risen unabated in recent years.

“Despite homeownership rates approaching 70 per cent, there is clearly room for growth as entry-level buyers make their moves from coast-to-coast, undeterred by higher housing values and changes to lending criteria” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “Many purchasers intent on realizing homeownership are scaling back on expectations or are willing to sacrifice location, quality and/or size to make their dream a reality – not unlike generations before them.”

Changes to recent financing criteria have not created the anticipated run up in activity in most markets. From a financial standpoint, most rookie home buyers remain quite prudent. Those making the leap are not doing it lightly, buying within their means. While this most recent round of policy tightening will likely have a negligible effect on demand, the message is getting across.
Affordability remains a growing concern in most markets, and—aside from first-time purchasers—no one is more in tune with that than housing planners and developers. In fact, the growing demand for reasonably-priced product is creating a shift in the country’s housing mix. That trend is expected to gain traction in coming years, as builders look to create greater options for those seeking to realize homeownership. In recent years, builders have helped ease the move to homeownership by concentrating on intensification—condominium buildings with smaller suites and small-lot subdivisions offering detached, compact homes at a fraction of the cost of a traditional single-family home. On the flip side, the affordability factor is also breathing new life into tired older neighbourhoods, and that, in turn, is contributing to rising values.

As prices escalate, first-time buyers are indeed spending more—some out of necessity, but others are simply in a position to do so. Unlike in years past—a greater percentage of today’s first-time buyer pool is comprised of dual-income, college or university-educated couples with solid earnings. They’re spending close to average price or slightly more to secure—in most cases—a better location or a home that will grow with them. Yet, the fact remains that those on a tighter budget can get in for considerably less, with reasonable choices in every major market across the country. While some may feel discouraged by eroding affordability levels, the underlying confidence in the concept of homeownership is rising.

“While market conditions are one thing that influences first-time buyers, few things trump the fundamental belief in homeownership,” says Sylvain Dansereau, Executive Vice President, RE/MAX of Quebec. “Today’s entry-level buyers are steadfast in their mindset. They know they have to live somewhere, but they simply don’t want to pay someone else’s mortgage. Savvy or practical, they remain a driving force. The bottom line is that the demand for entry-level product will remain steady. The role of starter homes in the marketplace is becoming ever more vital.”

First Time Home Buyers Report

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Multiple Offers with Calgary First Time Home Buyers

January 16, 2011 By Leave a Comment

Calgary First Time Home Buyers

In the Calgary Real Estate market many would be surprised that there would be any multiple offer situations. But for those of us dealing in the Calgary real estate market on a daily basis know that good homes with decent price tags attract buyers and in some cases multiple buyers.

Today marks a hard day for Calgary first time home buyers Berni and Andy. We found their perfect home and contacted the list agent immediately to let them know that we wanted to proceed with an offer. But of course this was a great home at a good price and we were not the only buyers to show interest and want to offer on this property. There was in fact another interested buyer who was in the process of writing their offer. After discussing the options with our first time home buyers we decided to go ahead and write what is called a competing offer. For those of you who don’t know what a competing offer is, please see blog post on Multiple and Competing Offers. We proceeded to write a very solid offer to be presented by the list agent to the seller. I drove the offer over and arrived just in time to present the offer. Berni and Andy arrived just minutes after. As we waited in the car I confirmed with the sellers agent that my clients were in the car with me and really wanted to buy this house to make it their very first home.  To my surprise our offer was not the offer that was accepted. The sellers decided to go with the other offer, we wrote the best offer we could and did everything  possible in light to give us the best chance to get this offer accepted but to our chagrin it was not accepted.

I have been representing Calgary first time home buyers for years and many in multiple offer situations, that is what sometimes happens when you find the very best homes at the best prices for your clients. And if sometimes the offer does not come together, you have to know that it is for a reason. Sometimes those reasons are unknown at the present time but in the future they always come together and make sense and more times than not turn out to be for the better.

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Mutiple and Competing Offers in the Calgary Real Estate Market

January 16, 2011 By Leave a Comment

Calgary Real Estate Mutiple Offers

Multiple and Competing Offers in the Calgary Real Estate Market

Something we have not dealt with too much lately in the Calgary real estate market is the multiple offer or competing offer situation. But since the market seems to be picking up some steam and it is becoming a bit more common to see more than one buyers with interest in a property I thought it was time to address this topic. A competing offer situation can be confusing even for the most seasoned buyer the confusion is not limited to the first time home buyer. A multiple or sometimes referred to as a competing offer occurs when there is more than one offer on a property at a time. How these offers are dealt with can vary depending on province and in some cases by local real estate board. For the purpose of this blog and information this is how things are handled here at home in the Calgary real estate market. This process can be a bit overwhelming so I will break it down into steps so that it makes it easier to follow we will assume that our buyers love the property and want to move forward with an offer.

Step 1: Buyers agent calls sellers (or list) agent and informs them that the buyers would like to make an offer. Sellers agent informs buyers agent that there is an offer being written by another agent. (in Calgary all names and brokerages are provided to the buyers agents for other agents representing other buyers writing offers on the property) The sellers agent will contact all buyers agents and inform them of the competing or multiple offer situation and confirm that the intent from each buyers agent is to in fact compete. (some buyers may walk away as they don’t want to be in a bidding war over a home)

Step 2: Once confirm that the other buyers intent to compete, we work with our buyers to write the best offer given their personal situation, sellers information we have obtained through listing and or verbally from sellers agent, financial information and conditions etc

Step 3: Your offer is presented to the seller. This can happen in a multiple of ways. It can be faxed to the list agent, emailed, presented in person etc. The seller reviews all the offers at the same time then picks which offer they want to work with, counter or reject.

You will want to write your very best offer on your property of choice to ensure you have the best chance of acceptance. But even more so you can discuss all the options with your own buyers agent. This is just a guideline of how the process goes, but in real estate things can change very quickly and you and your agent might have to react quickly to situations as they arise. Each Realtor has their own way of handling multiple offers and may vary from the steps a little that I have outlined above.

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Getting advice from your Family is not always smart!

November 27, 2010 By Leave a Comment
First Time Home Buyer Advice
Apparently, getting advice is all in the family. While one-third of current homeowners turned to the bank as their primary source of mortgage advice, those planning to buy turn to Mom, Dad and other family members to better understand mortgages. That’s not always smart.

Looking for your first home? Then do your homework before hitting the open houses.

“A first-time homebuyer can save a lot of time by knowing in advance how much they would qualify for and what they can afford,” says Marcia Moffat, RBC’s VP, Home Equity Financing, Canadian Banking.

RBC recently surveyed 1,050 Canadians, half who bought their first home in the past two years and half who intend to do so within the next two years. While two-thirds of future buyers said they hoped to purchase a single detached home, those who had already bought ended up in a townhouse or a condominium. The difference, suggests Ms. Moffat, comes down to dollars and sense.

“Affordability isn’t just the house price — it’s thinking about maintenance of the home, taxes, legal feels on top of it and, if it’s a young family, factoring in childcare costs,” she says. “Sometimes when someone is in the market of intending to buy, they haven’t thought through all those elements. Then, when they actually come down to buying, it’s part of the whole approval process. Yet if they get pre-approval, it strengthens their credibility with the realtor and means they’re not spending all of their time looking at homes that they can’t reasonably afford.”

Apparently, getting advice is all in the family. While one-third of current homeowners turned to the bank as their primary source of mortgage advice, those planning to buy turn to Mom, Dad and other family members to better understand mortgages. That’s not always smart, says Ms. Moffat, since what was right for your parents when you were a kid might not be right for you now.

“I’ve heard parents say, ‘You should go into a 10-year fixed,’ but those were parents who lived through the late ’80s at a time of very high interest rates and uncertainty,” she says.

Of course, managing cash flow becomes a much more pressing concern once the sale is final. According to the survey, those planning to buy fret most about three things: being approved for a mortgage, affording the downpayment, and rising housing prices. Once in the market, though, they get cash-flow anxiety, worrying considerably about rising mortgage rates, being able to make their regular monthly mortgage payments, and declining housing prices. With all that stress, it’s not surprising that 85% of first-time buyers said they intend to stay in their new home for the long-term.

As for mortgages, the study reveals that first-time homeowners are more likely to opt for fixed or variable rate mortgages — though older first-timers are more comfortable with variable rates than their younger counterparts. Future buyers go for a combination of the two, which RBC concludes may reflect their uncertainty.

Ms. Moffat says there are many simple ways for first-time homebuyers and those planning to buy to make the experience more soothing. For those unsure if they’re ready to buy, mortgage specialists can offer budgeting advice while online mortgage calculators can compare monthly rental payments to mortgage payments.

Ms. Moffat also suggests setting mortgage payments for the highest amount possible.

“If you are concerned about rising rates, a good rule of thumb is to plan for the worst case scenario for the next five years and build your financial plan around that number,” she says. “If things turn out better, you’ll be ahead of the game because you’ve already paid down a good chunk of your principal and you’ve tested your budget for higher payments.”

Source: The Calgary Herald

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