If you have been following my blogs, you will know that a flood of buyers have come on the market hoping to take advantage of lower prices and record low interest rates. The mistake many new home buyers make is forgetting to calculate the additional cost associated with real estate purchases and sales.
There are many things a first time home buyer should consider well before they start searching for a home. You will have to think about your down payment (anything less than 20% will cost you an additional CMHC insurance payment), mortgage pre-qualification and other costs and fees associated with closing a real estate transaction. The following is a check list of all things to be considered throughout the entire process:
1) Find a local expert realtor you are confident will work hard in your best interests.
2) Arrange financing with a bank or mortgage broker so you know how much you can afford to spend. You realtor will be able to make suggestions, but make sure you shop around for the best rates available.
3) Find a local real estate lawyer. Ensure that the lawyer you choose actually specializes in real estate transactions!
4) Call the company that insures your cars to ask them about home insurance. Call a few companies to find the best rates, but you can often get a discount if you bundle your car insurance with your home insurance.
5) Call utility companies. You will have to arrange gas, hydro, water, cable, phone, internet, etc.
6) Arrange movers. Moving companies cost much more than a case of beer and a box of pizza.
Purchasing a home costs much more than the price of the home and these costs must be factored in before you sign an agreement of purchase and sale. As buyers, you are exempt from paying your realtor (the sellers pay agent’s fees) and as first time buyers, you are also exempt from paying land transfer tax.
Lawyer fees can run approximately $1000 but they are very integral to the process. They search and confirm title to the property, physically close the transaction, register and prepare any mortgage documents. Another expense to consider is the initial property deposit, which is part of the down payment. 24 hours after an accepted offer, you are obligated to provide a deposit on the property. That can range from a few thousand dollars to a certain percentage of the purchase price.
By sitting down and making a list of all of the expenses associated with a purchase, you should be able to work out what you are comfortable paying. Also, when you are working out how much you can afford as your monthly mortgage payment, please do not forget to factor in your property taxes and your insurance!
Your realtor should be the person you look to for this advice which makes choosing your realtor one of the most important decisions you can make in this entire process. First time homebuyers should choose a knowledgeable local realtor with a good reputation and one that has come highly recommended by someone you know and trust. I often hear ‘He was alright’ when asking people about their previous experiences with realtors. For an investment of this magnitude you want to choose someone who provided service above and beyond the expectations of the person referring the realtor. You also want to hear an emphatic “YES” when asked if they would use that realtor for their next real estate transaction.
When buying, confirm your realtor thoroughly researches past neighbourhood sales, explains the costs of work that will need to be done to the property and also has a thorough knowledge of the current real estate market in your area to ensure you do not over pay for the property. When selling, have the realtor provide you with a written report of recent solds and properties that are currently active in your neighbourhood so you can establish a reasonable list price that will get your home sold in the shortest period of time.
For new home buyers, the Ontario government plans to blend the federal GST with the provincial sales tax next year, which could significantly increase the final price as many of the services that currently do not charge PST, will now get 8% more expensive. On new homes, where GST is already included, the tax harmonization will apply another eight per cent provincial tax to houses worth more than $500,000. New homes worth under $400,000 will not face the additional tax, while those between $400,000 and $500,000 will pay the tax but get a rebate.
I am not trying to scare anyone away from home purchasing, but I would be remiss if I didn’t make you aware of all the costs that must be considered when purchasing a home. For more information on buying or selling real estate in Burlington, Hamilton or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs. I can also be reached at www.realestatechat.ca as I am now a moderator on the Ontario Real Estate chat forum as well as the Burlington, Ontario sub-forum.
Happy house hunting!
JUST REDUCED to $189,000 - 21 East 16th Street on the mountain in Hamilton
Great family home located in a prime central mountain neighbourhood. This recently updated detached 3 bedroom, 2 bath, 2.5 storey beauty offers a separate dining room and living room, main floor den, with a large eat-in kitchen with walk-out to large deck and private backyard. Recently painted and updated. Up on the mountain, but close to downtown! Minutes to shopping, school, recreation and other amenities.
This beautiful home will go quickly now at $189.000!
Own this Hamilton mountain beauty for payments as low as $344.28!
Call today for your private viewing, but book soon as this property won’t last long!
To visit your community real estate resource centre, click here.
For more information on buying or selling real estate in Burlington, Hamilton or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or www.seankavanagh.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
JUST REDUCED to $333,900
Open house at 4886 Verdi Street in Burlington on Sunday May 24th between 2:00pm and 4:00pm.
Upscale Alton Village corner lot beauty with 1900 ft2 of living space. 3 bedroom + Den and 2.5 bathrooms. Oversized Master bedroom with ensuite including soaker tub, separate shower and large walk-in closet. Eat-in kitchen with walkout to the fenced in yard. Separate dining room, bedroom level laundry and high end upgrades throughout. Inside garage access. Close to highways, shopping and schools. Great property for young families who need the extra space!
JUST REDUCED! Bring all offers! Come see it before it sells. A beautiful home for only $333,900!
With interest rates on a 5 year fixed mortgage at 3.54%, you can…..
Own this Burlington Beauty for payments as low as $608.22!
For your community real estate resource centre, click here.
For more information on buying or selling real estate in Burlington, or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or www.seankavanagh.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Term Rate
6 Months 4.25%
1 Year 2.90%
2 Years 2.85%
3 Years 3.05%
4 Years 3.59%
5 Years 3.59%
7 Years 4.95%
10 Years 5.05%
Prime 2.25%
Variable 2.85%
Let me help save you money! Send me your email address or give me a call and I’ll send you periodical interest rate updates, along with any other market information you may be interested in.
Buyers and sellers can find everything they need to make the most informed choices on properties in Burlington or Oakville by calling 905-220-9198 or by visiting my real estate resource centre at www.seansells.ca.
Burlington, Ontario: The nice weather and the emergence of spring coupled with the effects of record low interest rates and low housing prices have renewed life back into Burlington real estate!
Average prices are steadily rising and gradually catching up to the prices of last year. Average prices were $351,203 in April of 2008 compared to $345,400 in April 2009. This also represents a 2% increase from last month. The number of units sold also jumped from last month by 25% to 314 units from 252 units in March. It is encouraging to see that in many areas in Burlington, housing prices and the number of units sold are approaching or have surpassed 2008 totals.
If you were looking for the time to buy a home in the beautiful city of Burlington, this is it! Find your dream home at an affordable price if you start looking today!
For market information specific to your area in Burlington, or any other area of interest, please call or send me an email so I can send this valuable market information to you on a regular basis.
Sean Kavanagh
Building lasting relationships and exceeding expectations.
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