Every industry has its tricks. Wanna know a few realtor tricks?
The real estate industry has many tricks. It is important to know these tricks, and how they may influence your decision as a buyer or seller. In this video I will discuss 4 tricks that should be disclosed when working with a realtor.
#1. Property Dimensions: Property dimensions are always approximate. And this is indicated in small print in all realtor advertising. Nothing is stopping a realtor from approximating these dimensions. Realtors can easily market say a 960 square foot condo for 1000 square feet. This is great for sellers but bad for buyers. I recommend referencing the strata plan for condos, and the building plans if you are purchasing a house.
#2. Number of Bedrooms - a defined as a bedroom is defined a a room with 4 walls, a closet and a window. Even though you may not care if that den is labelled a bedroom, you should care when it is time for you to sell that home. The number of real bedrooms will affect your homes value.
#3. Days on the market - Buyers typically at this stat. This stat indicates how long the home has been on the market. The lower the days on the market the better it is in the buyers perspective. If the Days on the market is greater than 30 days the buyers may feel that their is something wrong with the home and may shy away from viewing or writing an offer.
The seller and the realtor may decide to remove the property off the market. This would reset the days on the market back to zero so looking at days on the market is not an accurate figure. I would recommend looking at the property history on MULTIPLE LISTING SERVICE versus days on the market.
#4. Price- Like days on the market, buyers like to ask if the home has had any price reductions.
Their is nothing is stopping a realtor to list a home at 1.5 million and drop it to 1 million the next week. This makes it appear that a great deal can be had by the buyer. But the fact is that the price can be changed at anytime with the permission of the seller. It is always wise to look at the price history of the property and how it relates to market prices in the neighbourhood.
So there you have it the 4 realtor tricks you should know about if you are buying or selling real estate. If you have any questions please reach out to me.
Question of the day, what realtor trick do you come across that I didn’t mention? Please leave it in the comments below. I will try my best to personally answer all comments myself.
How to buy a house before selling your current house
Are you thinking about buying a new home but still need to sell your current one? Thats what I am going to talk about right now.
So your looking to upgrade, but need to sell your property as well. In this video I will tell you how to buy a house before selling your current one in 4 simple steps. Markets are always changing, but I would follow this approach during a buyers market. This is when there is lots of inventories and no bidding wars.
Step #1. First get approval in writing with your banker, that you would qualify for a new mortgage at the price point you are looking for. Most likely this mortgage will be approved subject to selling your current home. And if you current home has a mortgage if that can me moved to your new home, pay a penalty, or have that penalty included into your new mortgage. In Most cases if you terminate your current mortgage early it will cost your 3 months worth in interest payments.
Step #2. Find out the average days on the market and the value of your home. This way you will have a good estimate on how long it will take to sell your home and how much cash you will have to close on your new home.
Step #3 Look at new homes, and secure the property with an offer subject to sale of your current home. Also remember to negotiate for long move in dates. 2-3 months would be recommended.
Step #4 List your home, price the home at the market price, also make sure that if the buyer has a subject clause say for financing it is a few days before your subject to sale clause on the home buying side expires. This way you can ensure that your deal is firm on your home before proceeding to firm up your deal on the buying side of your new home. Also make sure that your move out dates match up with your move in dates of your new property.
There you have it, how to buy a home first before selling your current one and with zero risk of being on the hook for two homes. If you have any questions please reach out to me.
Question of the day, would you consider buying a home first or selling first? Please leave it in the comments below. I will try my best to personally answer all comments myself.
As always please like, share and subscribe and become smart savvy consumer. I make educational videos every Tuesday and videos every Friday. This is Alex from Vancouver and Thank you so much for watching this video eh?
I will show you the 6 reasons you should consider condos as an investment here in Metro Vancouver in 2018.
#1. Historical Prices ( See Chart) - Looking here at the graph, prices year over year across the over the last 10 years we have seen increases, impressive increases. Prices have almost doubled in 10 years. This is across the entire Greater vancouver. I don’t have a Chrystal ball but affordability is a major issue here, and I feel that prices in condos will continue to go up the long run. You will have your stagnant growth years but thats understandable, as every asset class you would need to have a longer holding period to reap the rewards. Timing the market as you see in this graph is difficult from years 2009 - 2015, then it took off.
#2 Rental Rates are constantly rising. For this year, a new three-bedroom rental on the West Side of the city with a starting rate of $3,702 per month is considered affordable.
Also regarded as affordable rental rates in the same part of the city are $2,756 for a two-bedroom unit; $1,903, one bedroom; and $1,646, studio.
For 2018, a new rental in East Vancouver with three bedrooms with a starting rate of $3,365 is deemed affordable by the city.Also for the same part of the city, the following rates will be considered affordable: $2,505 for a two-bedroom rental; $1,730, one bedroom; and $1,496, studio.
#3 Supply and Demand - show active to sales ratio. The supply can’t keep up with the demand. Condos are perfect for first time homebuyers, downsizes, other investors, and new immigrants. In Vancouver our estimated population growth per year is about 100k.
#4 Lower Money Down - in general condos are more affordable than houses. The price gap between a detached house and a condo is about $750,000. That means your downpayment would be much much less. You would need a minimum of 5-10% down to purchase a condo.
#5 Pre-sale Condos - with this type of purchase, you would buy a property directly from a developer in exchange for a deposit. It takes about 3 years to build, and you don’t have any carrying costs except if you borrowed your deposit money from a line of credit. The bonus of this type of investment is that you can assign the contract to another buyer before the building completes if the value has increased.
#6 Its Trendy: The trend now is to live in brand new smaller condos close to rapid transit. Some young folks have given up on the idea of buying that big detached home because of its affordability. This trendy ness will further contribute to the demand for condos.
There you have it the 6 reasons your should consider a condo purchase now as an investment. If you have any questions please reach out to me. If you are thinking of buying a condo, please watch my video here as I explain the 20 questions I would ask if I were to purchase a condo.
Question of the day, would you consider investing in a condo now? Yes or No Please leave it in the comments below. I will try my best to personally answer all comments myself.
Can’t find the home your are looking for in your price range? You should start looking at over priced listings, and write lowball offers on that house coming up next. (Me pointing to the camera)
If you have been house hunting for awhile, you may not be finding much available in your price range. I know it sucks……Why not look for properties at a higher price range and write low priced offers? In this video I will show you 5 things to be on the look out for so you can write that low ball offer.
#1 Look for Over priced properties - these are properties you know should be worth much much less but the seller has dreams of selling it for over market price. If you are searching for condos look at increments of over fifty to hundred thousand. If you are looking for a detached home look for homes that are over your price range by $100,000 to $200,000.
#2 Look for Stale Properties that have been listed for over 90 days - When properties are listed this long the sellers start to doubt themselves. At this time they maybe more vulnerable and look at low ball offers. Its best to keep tabs on these type of homes, because you want to write an offer on them before they do a price adjustment. In most cases you may get the home for much less than the sellers price reduction.
#3 Look at the realtor comments in the description - a realtor usually has a sense of what the market is doing, but if the realtor is unconfident on the pricing of the home, they may reveal this in the realtor or public comments. Be on the the look out for comments such as will look at all offers, and motivated seller.
#4 Look for Vacant homes - these are homes that you can tell nobody lives in. There is no furniture, no food in the cubboards, and maybe nobody maintaining that lawn outside. The sellers most likely already purchased another property, or this is just an investment property. They may look at your low offers. As these sellers may need the cash from the sale to fund other investments.
#5 Look for Tenant Occupied homes - Sometime selling tenant occupied properties can be a nightmare. The tenants usually restrict the amount of viewings and this also hurts the realtors marketing. Look for these types of properties for writing offers as the sellers may begin to get desperate with the low viewing activity.
Question of the day, What other strategies have you ? If not why? Please leave it in the comments below. I will try my best to personally answer all comments myself.
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As you may know purchasing real estate is already really expensive and closing costs can add thousands of dollars to your purchase price. Closing costs should really be considered first before planning your real estate search. In this video I will show you the 12 closing costs you should expect and the estimated costs of each.
#1 the Appraisal fees - Before your lender approves your mortgage, you may be required to have the property appraised. Sometimes your lender will cover this cost. If not, you're responsible. The fee ranges from $300 to $450 plus GST.
#2 the Land survey fees - Lenders may require a survey of the property. This is usually when you purchase a detached home. The fee ranges and is typically $500 plus GST.
#3 Home inspection fees- A home inspection is a report on the condition of the home and includes structural and moisture problems, as well as electrical, plumbing, roofing and insulation. The fees range and is typically $500-$900 depending on the size of the home and the complexity of the inspection. Some inspectors also charge an additional fee for an older home or a home with a secondary suite, a crawlspace, or a laneway home. Check out the cards here on how to find a good home inspector.
#4 GST, Expect to pay 5% GST on all brand new homes with a purchase price of over $450,000.
#5 Property Transfer Tax - which is calculated at 1% of the first 200k and 2% on the balance up to 2million, and 3% on the amount over 2 million.
Qualifying first-time home buyers may be exempt from paying the PTT if the purchase price of their home is priced up to $475,000. There is a proportional exemption for homes priced between $475,000 and $500,000. At $500,000 and above the rebate is Zero
Qualifying buyers of new homes may be exempt if the purchase price of their home is priced up to $750,000. There is a proportional exemption for homes priced between $750,000 and $800,000. At $800,000 and above there's no rebate.
#6 Foreign Buyers Tax - This is an extra 20% applied onto your purchase price of your home if you are not a citizen of BC or a Permanent resident.
#7 Mortgage insurance
The federal government requires high-ratio mortgages with less than 20% down payment to be insured against default. The cost ranges between 0.60 to 4.5 %of the mortgage amount which is added to the mortgage principal. As of February 15, 2016, the federal government requires a 10 per cent down payment requirement on homes valued at $500,000 - $1 million, that need mortgage insurance. Homes valued at $1 million+ require a minimum down payment of 20 per cent. Mortgage insurance is not available for homes in this price range
#8 Mortgage life insurance
If the owner dies, this type of insurance will pay off the balance owing on their mortgage. You can purchase mortgage insurance from your lender or term life insurance.
#9 Home insurance
Most lenders require property buyers to carry fire and extended coverage insurance and liability insurance. I would recommend that your insurance also cover water damage. As one small water leak can cause up more than $50,000 worth in damages.
#10 Moving fees
Moving fees vary depending on the distance moved and whether professional movers do all of the packing. Rates vary.
Depending on the Contract of Purchase and Sale, a property buyer will likely be required to reimburse the seller for any prepaid property taxes. The lender may require the buyer to add property tax instalments to monthly mortgage payments. Utility bills, A buyer is typically required to reimburse the seller for any prepayments for municipal sewer and water fees.
Rent and security deposits - If you are purchasing a tenant occupied property and the tenancy continues, the buyer receives the security deposit from the seller with accrued interest because the buyer is responsible for reimbursement when the tenant leaves.
#12 - The Lawyer or notary fee, this fee is necessary as they are the ones that process the paperwork at the land title office and transfer your money to the sellers lawyer. Expect to pay about $1000 for their services.
So thats it, the 12 closing costs here in Vancouver, if you are interested in viewing my buyers video please click the playlist in the description below or on top in the cards.
If you liked this post you can subscribe to my youtube channel here
Did you just miss out on your dream home? Let me show you how to use back up offers to your advantage, coming up next. As you may know purchasing real estate can be very competitive. When you finally find a property that you are interested in, their is a good chance that other buyers are interested in the same property. But as soon as you decide you want to purchase the property another buyer may have already tied it up. Hey, I understand!!!!! Its a bad feeling. As a realtor in this situation I would suggest writing a back up offer. In this video I will show you why you should write a back up offer and how it may save you money. New Videos: Real Estate Tips Every Tuesday, and Market Report Fridays. Subscribe: https://bit.ly/2yqdfVf
Buying a condo is a lot different than buying other residential properties. Do you want to buy a condo, but you’re not sure where to start? If that’s the case, there are 20 questions you should ask before you move forward with your purchase. For example, how many condos in the building are for sale? A high number may indicate some problems with the condo. To learn more, watch this short video.