9 Home Buying Mistakes First Timers Make

9 Home Buying Mistakes First Timers Make

9. Shopping before getting pre-approved for a mortgage.

Many first-time homebuyers decide they’re ready to take the leap, and start touring open houses “just to see what’s out there.” While getting a feel for the market is certainly a good idea, you risk falling in love with a home that is not in your budget. Before you start seriously shopping the market, visit your bank, mortgage broker or lender, and get a mortgage pre-approval. You’ll know the exact amount you’ll qualify for, so when you’re ready to make an offer, you can do so with confidence and no “conditional of financing” clauses.

8. Skipping the mortgage pre-approval altogether.

We’re mentioning this one again, because it’s super important. Getting pre-approved not only informs you of how much you can spend on a home, but it also guarantees the current interest rate for about 90 days, giving you the freedom to shop knowing you’re safe from rate hikes in the near future. With interest rates on the rise, this step is more important than ever.

7. Making major life changes when applying for a mortgage.

Once you’ve filed your application, avoid changing jobs, making big-ticket purchases on credit, or taking out new loans. These can all alter your financial picture, and can impact your ability to qualify for the mortgage or the amount you had originally anticipated. If possible, wait until after you’ve crossed the ‘t’s and dotted the ‘i’s.

6. Not saving enough for a down payment.

It’s true that the minimum requirement in Canada is five per cent, but try to put down at least 20 per cent of the purchase price. Having 20 per cent or more means you won’t have to take out a high-ratio mortgage – and avoid the mortgage default insurance premiums that go with it. If you are unable to save this minimum amount, this could be an indicator that you’re shopping beyond your financial capacity. Consider lowering your budget, delaying the purchase until you’ve saved enough money, and consult a trusted financial advisor for advice tailored to your situation.

READ: https://blog.remax.ca/much-will-cost-buy-house/

5. Not accounting for the “extra” costs.

You can estimate to spend (approximately) between 1.5 to four per cent of the purchase price of the home. This includes costs such as the deposit, property insurance, title insurance, lawyer fees, home inspection fee, moving costs and more. Be sure to budget these into your purchasing plan.

Use this MONTHLY HOME BUDGET PLANNER to get started.

4. Not seeing enough homes.

Before you settle down, make sure you sow your oats, so to speak. Since you’ve never owned a home, and particularly if you’re moving from your parents’ place, you’ll want to tour lots of different home styles and neighbourhoods. Keep an open mind – you just mist surprise yourself! When narrowing down your home’s location, weigh factors such as proximity to work, family and friends; public transit and access to major roads and highways; and things such as shopping, services, green space, and your lifestyle. which will affect the liveability of the home, its current value, and the resale price of your home.

READ: Location Versus Home Style

3. Seeing too many homes.

Don’t get us wrong – it’s definitely a good idea to see what’s on the market, if only for the sake of comparison. You’ll gain a better understanding of what comparable homes are valued at, their condition, and your negotiating power. This is valuable intel, whether you’re buying your first home or your tenth. But buyer beware: particularly in a hot market, sitting on the fence can mean losing the property. A trusted, experienced real estate agent can best advise you on this.

2. Not getting everything in writing.

Under the right market conditions, negotiating may be part of your purchasing plan. Any conditions of the purchase and sale must be on paper. If it’s not in the contract, it doesn’t count. Your contract is your only way of holding the buyer and seller accountable. An experienced real estate agent can help advise you, and negotiate on your behalf.

READ: 7 Questions To Ask An Agent Before Your Commit

1. Biting off more than you can chew.

You’ve likely heard the term “house poor.” Buying a home is a huge financial commitment, so ensure you can afford it. As a first foray into home ownership, condos are a popular choice, thanks to their lower price point, smaller footprint (read: less maintenance and lower operating costs) and their central locations. But condos are a lifestyle choice as well as a financial one. Consider your purchase from all angles.

READ: Buying A Home Without Breaking The Bank

Gelderman.ca Real Estate Team
RE/MAX Aldercenter Realty

Visit our Web Site: www.gelderman.ca

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Details courtesy of RE/MAX BLOG

How To Furnish Your First Home On A Tight Budget

How To Furnish Your First Home On A Tight Budget

You’ve just bought your first home, or you’re planning to purchase in the near future. You’re likely on a tight budget, but that doesn’t mean you have to sit on milk crates or sleep on a mattress on the floor. It just means you have to get creative about where to shop for your fashionable finds. Here are seven great places to find fab furniture on the cheap, leaving some money in the bank for those mortgage payments.

Auction Bargain

If you think auctions are just for those who have money to burn on museum quality pieces, think again. There are a number of auctions out there that cater to a variety of tastes and budgets - including cash-strapped first home buyers. Do some research beforehand by checking the online preview or catalog to see what might pique your interest. 

FIRST HOME HELP: If your eyeing a large furniture piece, such as a sofa or table, remember that you'll need access to a large vehicle to deliver it to your home. 

Garage Sale Finds

As the old saying goes, one man's trash in another man's treasure. Garage sales are a goldmine for small furnishings and accessories, and sometimes larger pieces too. Keep your spring and summer Saturday morning open, and start your search early in the morning to score the best finds. Garage sales are a great place to test you negotiating skills, and remember, cash is king. 

FIRST HOME HELP: You don't necessarily have to furnish your entire place with second-and third-hand finds, but when combined with some new items, these will be a budget saver. 

Estate Sale Savings

Just bought your first home? You'll definitely want to keep your eyes peeled for moving and estate sales, where you'll find some real bargains on big-ticket items. Checck your local paper for advertisements of these sales, and arrive early. 

FIRST HOME HELP: Wear your haggling hat, and don't be shy to ask for a discount on the price! Remember that these are used items, and the seller is eager to unload!

Antique Store Score

While the word "antique" might have you thinking Victorian furniture and hefty price tags, son't worry. Just because you come upon and antique store doesn't mean everything in there is a collectible. Take your tine and browse the collection. You just might find that rare gem you have been looking for, at a price you can afford. 

FIRST HOME HELP: Check back often. Pieces tend to trickle in, and you never know what you might find from day to day. 

Resale Shop Stop

Resale shops offer gently used items at discount prices. Take inventory of the resale stores in your area. These should become regular stops while you're out and about. As with antique stores, you never know what might land on the showroom floor, so visit frequently. 

FIRST HOME HELP: Get to know the store staff. Advise them of what you are looking for,m and ask them to call you when they come across a great find that could work in your home. 

Online Options

With the advent of online retail shops, it seems you never have to leave home to satisfy your shopping cravings. There are many online furniture retailers that offer a range of furniture retailers that offer a range of furniture at affordable prices. Many online retailers even offer free shipping. Read customer reviews to ensure you're doing business with a reputable company. 

FIRST HOME HELP: Once you have all the functional "core" essentials, infuse some personality and pops of color into your first home through artwork and accessories. Be creative and choose pieces that help tell your story and reflect your unique character. 

Floor Model Sell Off

You've got lots of options for finding great furniture at discount prices - but that doesn't mean you can't find a steal of a deal at your favorite furniture store. Next time you're browsing around, ask if they sell off floor models or "sold as is" items at reduced prices. This is a great way to get a brand name at a bargain price. 

FIRST HOME HELP:

A few pricey pieces go a long way. Dave up and buy that brand-name chair or coffee table that you love, and pepper these in wit your bargain finds to create an eclectic, trendy look in your home. 

It can be easy to get caught up in all the excitement of buying your first home, but remember to keep “things” in perspective – literally. Furniture doesn’t have to be brand new or brand name to do the job. Remember, Rome wasn’t built in a day, and your first home doesn’t have to be fully furnished right off the bat, either. Take your time, be selective and surround yourself with things you really love. You’re sure to make your place a feel like “home” in no time.

FIRST HOME HELP: Once you have all the functional “core” essentials, infuse some personality and pops of color into your first home through artwork and accessories. Be creative and choose pieces that help tell your story and reflect your unique character.

Gelderman.ca Real Estate Team

RE/MAX Aldercenter Realty

Visit our web site: www.gelderman.ca

Know someone moving ANYWHERE in the WORLD? Call me today--I know the BEST agents everywhere!!

Serving Abbotsford, Chilliwack, Mission, Langley, Surrey and the WORLD!

Office Phone: 604-743-7653

Article courtesy of RE/MAX Commercial

RE/MAX Presents a 2019 Canadian Housing Market Outlook

RE/MAX Presents a 2019 Canadian Housing Market Outlook

Findings from the RE/MAX 2019 Housing Market Outlook Report: ·         Rising interest rates will be a key factor affecting housing affordability in 2019 ·         36% of Canadians are considering a home purchase in the next five years, down from 48% at the same time last year ·         65% of Canadians said they do not want to live near a retail cannabis store

Modest price increases are expected in 2019, as the RE/MAX 2019 Housing Market Outlook estimates the average price to increase by 1.7 per cent. Housing markets across the country have stabilized in 2018, after the unprecedented increases in in average price that many markets experienced in 2017. However, there continue to be some outliers in 2018 average sales price gains, particularly in areas outside of the main city centres, such as Chilliwack (+13 per cent), Windsor (+13 per cent), London (+17 per cent) and Charlottetown (+11 per cent). It is anticipated that the market will continue to stabilize, as Canadians will start to feel the pinch of higher interest rates as they move forward with their home-buying plans in 2019. A recent survey revealed almost one-third (31 per cent) of Canadians said higher interest rates have not affected their ability to get an affordable mortgage thus far. However, this is expected to change in 2019. A separate survey of RE/MAX brokers and agents found 83 per cent predict rising interest rates will make it more difficult for Canadians to purchase a home next year.

British Columbia

Reduced foreign buyer activity has opened up more opportunity for local buyers in Greater Vancouver’s condo market. While average residential sale prices for all properties increased by two per cent, from $1,030,829 in 2017 to $1,049,362 in 2018, the number of sales dropped by 30 per cent. The low absorption rate is expected to bring down average residential sale prices in 2019 by three per cent.Similarly, the number of sales year-over-year has dropped by 33 per cent in Kelowna. Rising interest rates, government policy changes and the mortgage stress test were all factors that contributed to the decline, which is expected to continue into 2019. Average residential sale prices increased by six per cent year-over-year from $674,930 in 2017 to $718,915 in 2018, with prices expected to decrease by three per cent in 2019.

For the Full Report and to see data from across the Country click HERE

You can also view the overview video on our Facebook Page HERE

Gelderman.ca Real Estate Team
RE/MAX Aldercenter Realty

Visit out Web Site : www.gelderman.ca

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14,500-square-foot King Road home is the fourth largest to ever hit the market in Abbotsford

A 14,500-square-foot King Road home is the fourth largest to ever hit the market in Abbotsford

Last month, the province announced that it intends to pass legislation that will ban the building of new mansions over 5,400 square feet on farmland unless the owners can show they will benefit agriculture. Most homes that have been built on agricultural land over the last three years would have been barred under the proposed new rules, which aim to discourage estate homes from gobbling up the region’s precious farmland.

This week, one such estate home – a 14,500-square-foot, six-bedroom, 10-bathroom house on King Road – went up for sale this week. The house is the fourth largest to ever be put up for sale in Abbotsford, according to realtor Jonathan Gelderman. The mansion was built by the owner of an adjacent farm. The home also functions as a bed-and-breakfast and has a ground floor with a commercial-style kitchen and rooms that can host conferences.

The cost of agricultural land in the Lower Mainland, Gelderman said, is that those who farm are either rich or have pooled their resources with extended family.

“To own a farm you have to be wealthy in the valley. You’re not going to get a five- or 10-acre farm, fully operational, without millions of dollars … so people here farming are wealthy and for you to tell a wealthy person they can’t have a nice home is insane,” he said.

Those who aren’t individually wealthy, but have bought land with extended family, are not allowed to build multiple non-modular homes on the Agricultural Land Reserve (ALR). Construction of single, larger houses is the natural result of that policy, Gelderman said.

He said a more effective means to ensure the productive use of ALR land would be to increase the amount of farm income a property owner needs to show in order to qualify for significant tax breaks.

“I know a lot of people – quote, unquote – farming in Abbotsford and the reason they farm – in quotes – is because they want to pay less property tax,” Gelderman said.

That so-called farming, he said, isn’t actually productive.

“If you took that threshold and bumped it up to … something meaningful, then what’s going to happen is, if they’re not actually operating a farm and you have to tax them on the full value of their estate, they’re going to be paying gobs of money.”

The province has said that the proposed changes may not be the end of new rules, and a panel aimed at “revitalizing” the ALR has highlighted the issue. The City of Abbotsford did the same in a letter to the Minister of Agriculture earlier this year. Meanwhile, Gelderman says the value of mansions like that which he is selling on King Road will only increase.

“Homes like this are going to go up [in value] because you can’t build them anymore,” he said. “Right now, people who want a home of this magnitude want to build it themselves. But if the government takes that right away, houses like this are going to jump up.”

Cilck Here to see News Video



Credit: Tyler Olson - Abbotsford News

Gelderman.ca Real Estate Team
RE/MAX Aldercenter Realty

www.gelderman.ca

  

Know someone moving ANYWHERE in the WORLD? Call me today--I know the BEST agents everywhere!!

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Office Phone: 604-743-7653

How to Stage Your Home During the Holidays

How to Stage Your Home During the Holidays

Are you currently up for sale?...or are you planning to list your home before Christmas and all the Holiday Fun?

The holiday season gives most people the feels – “most” being the operative word. It’s important to keep this in mind when selling your home during the festive season. It’s easy to go overboard. (If you’re not sure what we mean, watch the notorious house-lighting scene from National Lampoons Christmas Vacation for a reminder). An open house is a great opportunity to welcome eager homebuyers and show off your home in all its warm, wonderful glory. Here are some tips to stage your home for a sale, while keeping it tasteful.

Light It Up!

First, make sure all the year-round outdoor lights are functioning — winter days are short, so having the walkway and front door lit up for evening viewings is a must. Second, when it comes to seasonal light displays, keep it simple. String white lights to highlight an architectural feature or a fir tree in the front yard… and make sure those light-up reindeer stay in the garage.

Festive Front Door!
Any home stager worth their salt will tell you first impressions are key — and since the front door is often the first thing a potential buyer will see, make it count! Give that dull door a quick holiday makeover by hanging a tasteful wreath or swag. Inside, stage your home with a seasonal arrangement placed in the entryway, to make buyers feel like they’re coming home for the holidays, rather than just touring another open house.

Holiday Flare!

Even though year-round home staging is all about a less-is-more philosophy, when the holidays roll around ramping up your ornament game is a must. But don’t go overboard. A bowl of fragrant pinecones, some strategically placed sprigs of holly, or a bowl of shiny glass baubles should do the trick. Oh, and stay away from overtly religious displays as it might put off some people. Remember, this is about them, not you.

Pretty Palette!
Your eclectic collection of Christmas tree ornaments may hold great sentimental value to you and your family, but they may clash horribly with your home décor and should stay securely packed away. To stage your home for the holiday season, consider your living room’s colour palette and find ornaments that complement it. If the walls are white, opt for a faux white tree, or if the room is decorated in darker tones, consider gold or green holiday accents.

Warm Up!
Stepping out of the biting cold and into a warm, cozy home is one of the few pleasures of wintertime. Enhance the corporeal experience of your potential buyers by making sure the thermostat is turned up a couple of extra degrees. If there’s a fireplace, ensure it’s lit for open houses, showings and staged photos.

Seasonal Fragrance!
Thanks to human physiology, the quickest way to access memories is through the sensation of smell — so stage your home by ensuring buyers are getting a good whiff, from the moment they walk through the door. Simmering apple cider or baking a batch of ginger cookies are good standbys, but take it a step further and sparingly spritz a winter-scented home fragrance throughout and breathe deeply.

It’s possible to enjoy the festivities and stage your home to sell. Now, enjoy creating this seasonal (and sellable) sanctuary.

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