Real Estate Resolutions for 2015


Have you made your New Year’s Resolutions? If you’re planning to buy or sell a home in 2015, here are a few key resolutions that will help with a smooth transaction.
By Kara Kuryllowicz
To preempt the likelihood of unpleasant surprises, astute homebuyers should begin the financial education, preparation and assessment process the moment they start contemplating a purchase.
Homebuyers Help resolutions by Kara Kuryllowicz1
TIPS FOR BUYERS
1. Have Equifax, TransUnion or another credit reporting agency pull your credit report. If necessary, you can commit to improving a poor credit rating by paying off creditors and loans before applying for your mortgage.
2. Crunch the numbers! Can you afford it? Is this the right decision for you? Canada Mortgage and Housing Corp. (CMHC) offers tools at cmhc.ca to help you calculate your net worth, current household budget, monthly debt payments, and how much you can afford to spend on a home purchase.
Plan on a down payment of at least five per cent. However, your affordability assessment may indicate you need a larger down payment or need to reduce the price range you were considering for your purchase.
3. Get your mortgage and financing documentation in order. At the very least, lenders and mortgage brokers will require documentation that proves your personal information, your net worth, income, employment, the amount/source of your down payment, and your ability to pay the closing costs. Closing costs generally range from 1.5 to four per cent of the purchase price and your lender may provide a loan to cover those.
4. Get pre-approved for a mortgage to determine the amount you can afford based on the lender’s review of your finances. This will also provide written confirmation of the interest rate that will hold for around 90 days.
5. Search ads for homes in your desired location and price range with your preferred features. (You’ve already got a copy of New Condo Guide, so consider yourself a step ahead!) Visit presentation centres, and explore new communities in person to get a feel for what living there will be like.
Homebuyers Help resolutions by Kara Kuryllowicz2
“To preempt the likelihood of unpleasant surprises, astute homebuyers should begin the financial education, preparation and assessment process the moment they start contemplating a purchase.”
6. Find a reputable home builder. Ask friends and family for referrals, visit presentation centres, do some research online, and check with your local home builders’ association for a list of builders and reviews.
As if buying a new home wasn’t complicated enough, if you already own a home, you’ll need to add a sale to your to-do list.
TIPS FOR SELLERS
1. Review your mortgage agreement with your financial institution and/or a mortgage professional. If you’re in the first year of a five-year term, the payout penalty might be so high that you decide to wait until at least the mid-point, if not the end of that term, to make your move.
2. Assess the selling costs, which may include repairs, home appraisals and inspections, legal and Realtors’ fees so that you can budget and save for them.
3. Crunch the numbers and look ahead. Will your home’s proceeds cover your next home purchase? Do you plan to invest part of the proceeds?
4. Purge and de-clutter six or more months in advance, because when staging your home for the sale, over-stuffed storage areas suggest a lack of space rather than reflecting on the homeowners’ organizational skills and hoarding tendencies. In addition, if you’re moving from a larger house into a smaller condo, you’ll likely need to edit down your movables anyway, so consider this resolution two-for-one.
The more you give away, sell and donate to charity, the less you’ll have to pack, ship and unpack. Recycle or repurpose anything that hasn’t been used in the last 12 months. If necessary, hire an organizational expert to keep you focused and ruthless.
5. Identify items that are worn, outdated or don’t work, then repair or replace them. Ask friends or family to help you identify what needs to be done, but be aware that they may be uncomfortable with the level of honesty required. In this case, a professional home stager, organizer or even your real estate agent would be better suited to the task. Some common fixes include replacing stained switch plates, repairing old caulking and dingy grout in the bathrooms, and applying a fresh coat of paint. If things such as leaky roofs and basements aren’t repaired, buyers will expect a reduction in price.
6. Assess comparable homes in your neighbourhood no more than three months prior to putting your home on the market because the conditions can change relatively quickly.
7. Source and interview selling agents at any time, but ask them to evaluate your home no more than six to eight weeks before you plan to put it on the market. Making and sticking to these real estate resolutions can reduce the stress associated with buying and selling a home, and expedite matters once you officially launch the process.
Source: FEBRUARY 6 – 20, 2015 | METRO VANCOUVER NEW HOME GUIDE

Original article: The Province
Read original aricle here.