FREQUENTLY ASKED QUESTIONS
BUYERS
Getting pre-approved for a mortgage is the best way to know how much you can afford to spend when buying a home. Lenders take your real-life financial situation and consider your debt-to-income ratio to give you a realistic idea of what you can afford with the current mortgage interest rates. In many cases, they will even lock this approval in place for at least a couple of months so you can start your home search without the pressure of a fluctuating market.
The first step to buying a home is to determine what it is you are looking for. Compile a list of your wants and needs, including the location, size and style of the home you want, how many bedrooms and bathrooms you would like, and any additional features you’d like to have. Then, ideally with a mortgage pre-approval in place, decide on your budget and use these criteria to filter your home search.
Using a real estate agent is invaluable when buying a home. As a licensed industry professional, they provide knowledge and experience specific to where you are buying. They keep you informed on market conditions and help you stay up to date on the newest listings as they become available, so you never miss out on opportunities. They also take care of all the paperwork and negotiating to help you get the best deal possible.
Plus, as a buyer, you won’t need to pay for their services! All buyer’s agent fees are paid by the seller as part of the home-selling process.
While a home inspection isn’t required to buy a home, it is one thing you definitely shouldn’t skip. It reveals critical information about the condition of the property, including repairs, maintenance, and costs you can expect. This helps you to make a more informed decision before finalizing your purchase and can even be used as a negotiating tool.
To buy a home, you will need a minimum down payment of 5% of the purchase price to qualify for a CMHC insured mortgage. To qualify for an uninsured mortgage, you will need at least a 20% down payment.
Closing costs are the additional fees incurred in the home-buying process that happen on closing day. These often include legal costs, land transfer taxes, property insurance, and costs related to moving.
There are many things to consider in choosing a neighbourhood in which to buy a home. These factors include transportation, amenities, and schools. You should also consider the age of the neighbourhood, property taxes, and crime activity. Take into consideration which of these are most important to you and look at neighbourhoods most aligned with your lifestyle.
SELLERS
To find out what your home is worth, you’ll need to consider the local real estate market. This includes looking at comparable homes to yours to see what they are (or aren’t) selling for. Access to this information can be hard to compile and interpret, however, so it is best to consult with a local REALTOR® for a free home valuation.
Many believe that in listing their home as for sale by owner, they will yield more of a return in the sale. True, you will forgo commission fees, but studies have actually shown that homes listed with a REALTOR® will yield an average of up to 23% more than when sold by the owner.
This higher return usually comes down to a quicker and more expertly negotiated sale. When listing with a real estate agent, your home will have a proper market valuation to determine the best price from the beginning. It will also receive maximum exposure using a custom marketing plan to find and attract more buyers. Plus, you’ll save precious time on paperwork and negotiations when it is all taken care of for you.
Most home renovations aren’t worth the investment before selling, since they don’t often yield a significant enough return. However, touch-ups and repairs can go a long way in increasing the attractiveness of your property. Valuable projects to consider before selling your home include painting and repairing any holes, plumbing leaks, broken windows, or faulty appliances. Replacing damaged carpet and flooring has also been shown to increase sale value.
If you feel a renovation is essential to getting a better sale price on your home, the kitchen is where you will see the best return on your investment.
How long it will take to sell your home will depend on the current real estate market conditions. A well-priced property in a healthy market could see offers within a few days or even hours. In a slower market or less competitive price range, however, you could see longer wait times. To get an idea of where your home fits in the current housing market, contact your local REALTOR® today.
The best tip for staging a home to sell is to declutter and depersonalize. Your goal is to make the home as open for interpretation as possible, so buyers can better envision themselves living there. Organize and tidy up as much as possible, and try to reduce personal items (photos, children’s art, etc.) by at least 50%.
Beyond that, you should do a deep clean throughout the house, putting extra care into the kitchen and bathroom. Boost curb appeal with some yardwork, make the beds, and take care of unpleasant odours. Before showings, set a comfortable temperature, turn on the lights, and open the curtains to allow as much light as possible.
The best time of year to sell a home depends on real estate market conditions and what works best for you and your family. Each season has its own advantages and disadvantages.
Spring is usually the busiest season in real estate, with more potential buyers for your property. However, it also means more competition for your listing.
Winter is usually the slowest season in real estate, with less demand and a colder moving process. However, there may also be buyers hoping to take advantage of tax breaks, which could mean a quicker sale.
Summer is usually another calmer season in real estate, with more buyers taking off to enjoy family holiday time. However, it can also mean more flexibility for showings and eager buyers looking for a new home before school starts.
Fall is usually a slow season in real estate, but Saskatoon often has another boost in sales. Kids back in school means buyers are spending more time close to home and those considering a move start feeling the pressure of settling in before the holidays.
MORTGAGES
A mortgage is a type of loan you can get from a bank or lender to use when buying a property. Real estate is a costly investment that most people can’t afford to pay all up front. A mortgage allows you to borrow what you need and pay it back over a number of years with regular payments that include interest.
A mortgage pre-qualification is only an initial estimate of how much you could qualify for, based on information you provide to a lender. It is a simple calculation that doesn’t run a credit check and can usually be done in minutes using an online form. Some lenders will even provide a pre-qualification letter, but it is important to note this is not a commitment to lend. Information in this process is not verified and because of this, this is not always an accurate representation of affordability.
A mortgage pre-approval is a true measure of affordability determined through an in-depth evaluation of your financial situation. It verifies your information provided by documents (proof of income, tax returns, etc.) and includes a credit check to assess your history and score. A mortgage pre-approval letter is a commitment by the lender stating that in your current financial standing, they will approve you for a loan up to a certain amount. It is important to note, though, that the final loan approval is not guaranteed simply because of this, and may change if your financial situation changes at all.
To get pre-approved for a mortgage, you will need to provide some basic information to a bank, lender, or broker. Usually this will include proof of income and some personal information to conduct a credit check. Contact your preferred lender to request a mortgage pre-approval for more details about what they require.
CENTURY 21 Fusion
INFO & SERVICES
CENTURY 21 Fusion
Dianne Peters | REALTOR®
#210 - 310 Wellman Lane
Saskatoon, SK S7T 0J1
dianne.peters@century21.ca
INFO & SERVICES
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