Best Time to Find Sellers?

Generally, if a home owner has been paying down a mortgage on their home for more than 7-10 years… they have increased the equity in your home considerably. Also despite some minor and major market corrections, due either to a housing bubble or a recession, the value of their home has also appreciated to a similar degree.

A Seller's MarketSo, if they have owned their home at least 7 years, and haven’t refinanced with a second mortgage, any time should be a good time, with some major exceptions. Let look at some.

Is the market soft?

In a country as large as the US, there are different types of housing markets. But most urban centers have similar markets. There are major exceptions like Detroit, but as people are moving to the city more and more (for access to better amenities and health care

So if you are unsure, you may want to contact a well known real estate agent in your area. They are quite likely willing to give you an idea of what your home is worth, and can even perform a CMA (comparative market analusis) to give you an idea of what your home would sell for.

Buyers markets

If you are in a buyer’s market – you may find your property sits on the market for a long time. It may be worth your while to wait until conditions improve, meaning you make several thousand dollars more for your property.

Time of Year?

When considering the time of year for selling – there really is no bad time. Since, while it’s true that December has the smallest number of people looking to buy each year, it  is also the time of year with the least homes for sale. So even in a smaller market – the advantage still goes to the seller, since the proportion of buyers to sellers might be the same

Condering the Rental Market

The good news for some owners is that the rental market is far more stable than the buy/sell market. Even during the housing bubble, rents usually remain the same.

If you find yourself needing to move and aren’t sure it is a good time to sell, you might consider renting your real estate.

It’s not without its risks. Renters do not care for a property like an owner does, and there is usually some wear and tear even with great tenants. But it can be a nice second income if you know what you are doing.

Some tips for renting;

  • check references, do not rent to someone without references
  • check credit. Potential renters should submit to a credit check
  • where applicable, do a court check. This is to determine if there has ever been an eviction forced by the courts
  • A realtor can perform these checks for you

Use these flags to screen out problem tenants. Rent to those with clean records only.

Hire a property manager. For a monthly fee (usually between $100 and $150) a professional service can screen your potential tenants, and they know how to act immediately if there are problems.

Steps for Finding Ready Buyers

Down Payment

When buying property, it is helpful to have a basic understanding of real estate terms involved in a purchase.
Pre-Approval Lender Letter – a writing from a lender stating that a potential buyer has approval to borrow a stated amount of money from his firm based on having documented all the personal information needed.  Final approval is subject only to the lender’s receiving a copy of a contract to purchase real estate, a satisfactory appraisal of that real estate, and its underwriting department’s review of all pertinent information.  In other words, the buyer qualifies so long as the property does and no changes occur.

Real Estate, or Real Property – ground, any plants growing in it, any minerals under it, and any buildings or other improvements built on it.Title Insurance – insurance which will compensate the insured for the value of his ownership or collateral position in real property if a person not thought to be a current owner materializes as an owner.  (I’ve seen this come into play when property was owned by many heirs a generation or two ago.)

Making An Offer

If you have decided that this is the right home for you, decide on a figure and have your agent prepare the Offer (Agreement of Purchase And Sale). With your agent, list everything you want included (i.e., conditions on financing and inspection, survey clause, appliances, light fixtures, etc.). At this time, you may want your lawyer to check it out, and certainly prior to waiving any conditions to make the offer firm.

A firm offer: means that you will buy the property as outlined in the offer of purchase and that there are no conditions attached. Once the vendor accepts the offer, you are both bound to the agreement.

A conditional offer: means that you will buy the property if those certain conditions are met. We recommend that a condition on financing is included, especially for high-ratio insured mortgages. If you have a condition on financing clause, get in contact with us right away. We’ll get right on it to finalize the mortgage approval. At this time, you will need the following information:

• Copy of the accepted Offer To Purchase
• Copy of MLS listing (if listed on MLS service)
• Completed and signed application (if one is not on file yet, so that we can run a credit check).
• Confirmation of your earnings: if you are salaried, a signed letter of employment, 3 years tax returns and assessments if commissioned, and 3 years tax returns and financial statements if self-employed.
• Confirmation of your down payment: it may be from your savings, RRSP, equity from sale of another home (copy of sales agreement), a gift letter for any money gift.
• If purchasing a condominium, a copy of the financial statements for the condominium corporation

Once all conditions have been satisfied (the offer has been accepted), a deposit is required as a symbol of commitment to the offer of purchase, and it is made payable to the listing Real Estate Firm “In Trust”. Interest on the deposit can be requested, and this deposit will be applied towards your down payment on closing.