Real Estate Spring Market Tips

The Real Estate Spring Market is almost upon us! Over the past 6 weeks, we’ve noticed that the Market has strengthened enormously, with multiple offers once again starting to become commonplace. We hadn’t expected this – after all, virtually every economist and commentator on real estate has been releasing negative statements about the market. However, we learned a long time ago: never argue with the data. And the data is strongly indicating that the Real Estate Spring Market will be a rocking strong one! So with no further ado, here are our thoughts for those planning to buy or sell during the spring…

TIPS FOR SELLERS

Pets:

We love your furry family members! However, you should know that their presence can make preparing to sell a little more complicated. Buyers need to be able to visualize themselves living in your home, and noticing pet odours, hair or mess takes away from that. So here is a quick checklist to ensure your home shows brilliantly well!

• Hide all pet accessories before photos are taken and before showings.
• Deep clean your carpets and use air fresheners. You probably don’t notice any pet odours in your home, but that’s because you’ve become accustomed to them! Having any fabrics such as carpets, rugs and upholstery professionally cleaned (or at least spraying with pet specific deodorizers) will go a long way to eliminating pet odours. Using an air purifier with a HEPA filter will also help greatly.
• Repair any pet related damage. Hardwood floors scratched up by dogs, curtains shredded by cats or baseboards nibbled by rabbits are a part of owning pets. However, they also cause buyers to think your home is poorly maintained.
• Clean up your yard to eliminate any pet feces, toys or dug up lawns.
• Avoid perfumed products such as scented candles to hide pet odour – many people are allergic to these.

Safety Tips:

Selling your home can be a little overwhelming. Between keeping your home clean for showings and negotiating offers as they come in, you may find yourself paying less attention to safety concerns than usual. Realtors will do their very best to keep your home safe during showings, but there are a few steps that you need to take also:

• Remove your valuables or lock them in a safe. This is particularly important for small, valuable items that are easily stolen: cash, jewellery, credit cards, expensive watches, electronics and the like. As Realtors, we make a pass through the home before any showings looking for such items, but we don’t know where all your valuables are, and may miss some.
• Remove your pets or secure them before showings. You don’t want any liability issues if your pet should attack someone!
• Always have your Realtor present for showings. Never show your home by yourself.

TIPS FOR BUYERS

Buying activity has grown stronger each week for the past six weeks. The Real Estate spring market might be quite hectic, so you should be well prepared and ready to move quickly if you are hoping to buy a home during the spring market!

The most important thing you need to do is to have your mortgage pre-approved. Pre-approval allows you to lock in an interest rate for up to 120 days while you’re shopping for a home, protecting you from any interest rate increases during that time. Pre-approval also sends a strong signal to the seller that you will not have any issues obtaining financing. In a multiple offer situation, sellers will look much more favourably on offers from pre-approved buyers.

Seven Steps to Getting a Mortgage

1. Credit Score. Having a strong credit score is vital to obtaining a mortgage from a bank, credit union or other financial institution. If you are going to be a high-ratio borrower (in other words, your down payment is less than 20% of the value of the home you want to purchase), at least one of the borrowers should have a credit score of 680 or better. If your down payment is over 20%, banks will lend even with a lower score. (If your score is low, do not despair! We can put you in touch with good mortgage brokers who can guide you through improving your credit score.)
2. Consider Your Budget. Just because you can afford an enormous mortgage doesn’t necessarily mean you should! Purchasing a home that consumes nearly all your budget will leave you house rich and cash poor – which can make for a terrible standard of living and tremendous stress if unexpected expenses occur.
3. Down Payment. The down payment for your home can come from a savings account or RRSPs. The Federal Government’s Home Buyer’s Plan allows first time home buyers to withdraw up to $35,000 from your RRSP ($70,000 for a couple) for a down payment. Gifts from immediate relatives are also acceptable but be aware that the banks will often ask for a letter proving that the money is, indeed, a gift.
4. Mortgage Options. Do consider using a mortgage broker. They have access to hundreds of lending institutions, and can often find a mortgage that’s a better fit for you than you can. Also be aware that mortgage terms differ greatly from institution to institution – consider the terms of the mortgage, not just the rate. A low advertised rate may wind up costing you tens of thousands later!
5. Documentation. You will need to gather quite a bit of documentation for the lender before a mortgage is granted, including: government issued ID, recent pay stubs for all applicants, letters of employment, your last two CRA filings, three months of bank account statements and your down payment.
6. Pre-Approval. Get pre-approved! It guarantees your interest rate, and you will know what you can afford. It also give you credibility with the sellers of homes of interest.
7. Let’s go Shopping! Once you’ve completed the first six steps, it’s time to go find your affordable dream home!

Check our other blogs under Real Estate 101 – that might give you answers about buying or selling a home.

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.