Documents Involved In Selling a Home in Fort McMurray

Wed, 06 Sep by The Lore Group

Working with a Real Estate Agent brochure

It is mandated in law that both buyers and sellers are given the working with a real estate agent brochure that spells out the relationship with the realtor or agency. You will sign on the brochure to acknowledge having the discussion with the agent. The signed disclosure statement can be torn off and safely kept.

The signed statement doesn’t place you under any obligation to the realtor. It is only a confirmation that you discussed the representation options with your agent.

MLS Listing Contract

Sellers sign a Multiple Listing Service (MLS) Listing Contract with their realtor outlining the terms of their listing. The contract will include the length of time for the listing, all the parties to the listing, the price, the commission to be paid, the address and the legal description of the property to be sold, how the seller is to be paid, the financial obligations, the preferred possession date, and other information regarding the property.

The contract is between the seller and the listing agency and not the salesperson. If the salesperson leaves the company, the seller and listing company make the decision to carry on with the listing or get it assigned to another salesperson.

Data Input Form

The Data Input Form is filled out by the realtor and will provide information required to list your property. The information includes the lot size, number and size of rooms, construction type, style of the house and more. The information is entered into the MLS database for matching the house with buyers.

Exclusive Listing Contract

The Exclusive Listing Contract is used to limit listing the property to only one Multiple Listing Service. The exclusive listing is only publicized by way of advertising and not through the catalog/computer.

Sellers are mistaken when they think that an exclusive listing will get more buyers and fewer “lookers.” In reality, Realtors working with buyers start by searching the MLS catalog/computer and overlooking the exclusive listing. Simply put, the greater the number of people who know about a property the greater the chance of landing many serious buyers who meet your terms and asking price.

Listing Amendment

The listing amendment form helps to make changes to the original MLS or Exclusive Listing Contract. The changes may include changing the price, extending the listing date, altering the wording on the print- out, correcting measurements, and correcting tax or financial information. The form is to be signed by both the seller and manager of the listing agency.

Listing Cancellation

The Listing Cancellation Form is filled out by the seller and the realtor to cancel a listing. The form carries a preprinted clause that states that if the property sells within 60 days of cancellation, or before the natural expiry of the listing (whichever comes first), the seller is liable for a commission. It makes sure that the realtor is compensated for the advertising dollars and hours spent showing a home prior to a listing cancellation.

The seller should talk to the manager of the listing agency about their concerns if they think they are dissatisfied with the service of a realtor. The listing agency will work to achieve satisfactory results.

Hold Action Form

Your realtor will help you fill out a Hold Action Form to temporarily stop marketing a home. The form is used to instruct other realtors who have access to your listing via the MLS system that you wish to delay the sale of your home.

Property Disclosure Statement (PDS)

The seller is legally bound to provide accurate information concerning the property put on sale. The information will include knowledge about the property, any upcoming expenses, defects that the owner is aware of and other assessments in strata-titles properties.

All this information is filled out by the seller on the Property Disclosure Statement form. All answers should be complete and correct to avoid liability on the seller. The buyer must make other inquiries to ensure that every aspect of the property is covered. The realtor is prohibited from filling out the PDS on behalf of the seller.

Limited Dual Agency Agreement

The limited dual agency agreement is completed where the agent represents both the buyer and the seller in a single transaction. The agreement will provide authorization to the agent to present the two parties in a limited capacity, while maintaining the confidences of the parties with regard to negotiating positions and personal information. The form is particularly used where two salespersons from the same company are handling a transaction.

Contract of Purchase and Sale

It is the standard contract that is signed by the sellers and the buyers. The contract of purchase and sale outlines all aspects of the transaction such as price, handling of existing tenants, terms and conditions, dates, the deposit and increases, inclusions and exclusions, and other legal matters such as matters added to the preprinted contract and added clauses.

Addendum

A special preprinted addendum is added to the basic sales contract if there is financing to be cleared from the title before the seller is able to provide clear title or where financing is required after the title is registered in the buyer’s name.

Addendum (without printed clause)

The basic blank addendum is used to include additional clauses to the contract where there is insufficient space on the contract. The buyer signs the form to indicate removal of the clause.

Amendment to Contract of Purchase and Sale

The document serves to remove conditions (subject removal) when they have been satisfied such as where the buyer must find financing by a specific date.

Leases

The lease is commonly used in commercial transactions as opposed to residential transactions. Some tenants and landlords will prefer to use the lease to guarantee the stability of tenure.

The commercial lease is a complex document that must be drawn by experts in the field and should be reviewed by lawyers of each party.

The residential lease is not entirely complex since it is simply an outline of rules and regulations in the building, the expectations of the owner and the tenant not captured in the Residential Tenancy Act.

Consult a Fort McMurray Realtor or lawyer if you encounter challenges in drawing up and in the interpretation of specific clauses.

Mortgages

Mortgages come in different formats depending on the lending institution. A simplified form is used whereas the larger form is used where deviations occur. Buyers are advised to check if document reflects the contents or terms agreed to when signing the commitment letter. Check and confirm the interest rate, the amortization period, the assumability of the mortgage if the property is sold, the prepayment privilege, the options (if any) for increasing the number of payments or making lump sum payments, and the portability of the mortgage if the seller wishes to use it on another property.

If you are a seller who is carrying financing for a buyer of your property, ensure that your lawyer reviews the documents before signing them. If you are a buyer who is asking a seller to carry financing, ensure that your own lawyer reviews the documents as well. It will help to avoid serious issues that may arise where the parties are unfamiliar with mortgage financing laws.

If you have any question regarding selling your Fort McMurray home, then consult with our experienced team of realtors at The Lore Group.

Documents Involved In Buying a Fort McMurray Home

Fri, 21 Jul by The Lore Group

Let have a look at the documents that will be required when buying a Fort McMurray home:

Working with a real estate agent

This is a brochure that is provided to both sellers and buyers at their first meeting with a realtor. Regulations have made it mandatory for real estate agents to explain their relationship with clients.

Following a discussion with the realtor, you will sign a statement on the brochure to acknowledge that the discussion took place. The signed statement doesn’t give you any obligation to the realtor.

Property Disclosure Statement (PDS)

The seller is legally bound to provide accurate information concerning the property put on sale. The information will include knowledge about the property, any upcoming expenses, defects that the owner is aware of and other assessments in strata-titles properties.

All this information is filled out by the seller on the Property Disclosure Statement form. All answers should be complete and correct to avoid liability on the seller. The buyer must make other inquiries to ensure that every aspect of the property is covered. The realtor is prohibited from filling out the PDS on behalf of the seller.

Exclusive Buyer’s Agency Contract

An exclusive buyer agency contract is signed by the buyer with their realtor. In the contract, the services that you will receive from the realtor will be outlined as well as the obligations of the buyer and realtor in the transaction.

Most listing contracts on the MLS provide compensation for the agent who obtains a buyer for the property. The realtor will demand that you have a written agreement regarding compensation.

The remuneration of the agent will be derived from the transaction and will be financed as part of the mortgage. The commitment between the client and realtor ensure better service and a wider selection of property to choose from.

Limited Dual Agency Agreement

The limited dual agency agreement is completed where the agent represents both the buyer and the seller in a single transaction. The agreement will provide authorization to the agent to present the two parties in a limited capacity while maintaining the confidences of the parties with regard to negotiating positions and personal information. The form is particularly used where two salespersons from the same company are handling a transaction.

Contract of Purchase and Sale

It is the standard contract that is signed by the sellers and the buyers. The contract of purchase and sale outlines all aspects of the transaction such as price, handling of existing tenants, terms and conditions, dates, the deposit and increases, inclusions and exclusions, and other legal matters such as matters added to the preprinted contract and added clauses.

Addendum

A special preprinted addendum is added to the basic sales contract if there is financing to be cleared from the title before the seller is able to provide clear title or where financing is required after the title is registered in the buyer’s name.

Addendum (without printed clause)

The basic blank addendum is used to include additional clauses to the contract where there is insufficient space on the contract. The buyer signs the form to indicate removal of the clause.

Amendment to Contract of Purchase and Sale

The document serves to remove conditions (subject removal) when they have been satisfied such as where the buyer must find financing by a specific date.

Leases

The lease is commonly used in commercial transactions as opposed to residential transactions. Some tenants and landlords will prefer to use the lease to guarantee the stability of tenure.

The commercial lease is a complex document that must be drawn by experts in the field and should be reviewed by lawyers of each party.

The residential lease is not entirely complex since it is simply an outline of rules and regulations in the building, the expectations of the owner and the tenant not captured in the Residential Tenancy Act.

Consult Fort McMurray Realtor or lawyer if you encounter challenges in drawing up and in the interpretation of specific clauses.

Mortgages

Mortgages come in different formats depending on the lending institution. A simplified form is used whereas the larger form is used where deviations occur. Buyers are advised to check if document reflects the contents or terms agreed to when signing the commitment letter. Check and confirm the interest rate, the amortization period, the assumably of the mortgage if the property is sold, the prepayment privilege, the options (if any) for increasing the number of payments or making lump sum payments, and the portability of the mortgage if the seller wishes to use it on another property.

If you are a seller who is carrying financing for a buyer of your property, ensure that your lawyer reviews the documents before signing them. If you are a buyer who is asking a seller to carry financing, ensure that your own lawyer reviews the documents as well. It will help to avoid serious issues that may arise where the parties are unfamiliar with mortgage financing laws.

 

 

How to Create Income from Your Fort McMurray Home

Fri, 21 Jul by The Lore Group

A good number of Fort McMurray homeowners will be open to making some extra money from their home without necessarily selling it. With rent or mortgage payments being the highest bills each month, it will serve you well to generate an income from the home.

Creating an income from the home should follow a determination of financial and personal priorities and expert advice.

There are two main ways of creating an income:

Renting out the home or part of it

It is an option available to homeowners who have:

  • An additional property to rent out for all or part of the year,
  • An extra room to rent out, or
  • Enough space to set up a bed and breakfast.

How can you go about renting out the home to generate an extra income?

  1. Get a lodger: Rent out that extra room to a commuting lodger especially if your home is located in a suitable spot.
  2. Boutique hotel: That extra room can be let out to tourists on the short term or even for longer stays. You will always have the room when it suits you. Alternatively, you can let out the entire home when out on holiday helping to recoup some of your vacation expenses.
  3. Rent out the driveway: Homeowners near an airport and major cities can benefit from renting out parking spaces. There are also some huge amounts of money to be earned in this way.
  4. Offer storage solutions: Extra rooms in the home can be provided to people or entities that require economic solutions to their storage issues.

Borrowing against the equity in the home

The option will be best considered if:

  • You are averse to renting out your property,
  • You have paid off all or better part of your mortgage,
  • You can afford a reverse mortgage or some other form of debt, and
  • You wouldn’t mind taking the money away from your estate.

The amount of income generated will be dependent on factors such as:

  1. The amount borrowed
  2. Interest costs on your loan
  3. Amount of monthly loan payments
  4. Restrictions on the loan
  5. Return or rate of annuity on any investment made with the money.

In any case, if you need expert advice or looking to invest in Fort McMurray Real Estate then contact with our Realtors at The Lore Group today.

Commercial Real Estate Acquisition in Fort McMurray: 5 Tips for Success

Thu, 22 Jun by The Lore Group

Fort McMurray Commercial Real Estate

Due diligence should be practiced whenever you are buying real estate in Fort McMurray since it is a capital intensive undertaking. The lack of planning is linked to a number of challenges such as unexpected construction costs, inadequate financing, environmental lawsuits, and inefficient layout.

Entrepreneurs will always be better off buying property rather than renting. It doesn’t matter that real estate costs have risen substantially in the past decade. The advantages of purchasing property are avoidance of rent increases and the property will be appreciating in value. The value of loan, mortgage and depreciation can be deducted from company taxes which is not possible when renting.

The following tips will be important for successful real estate acquisition:

      1. Understand the Fort McMurray real estate market

Every local real estate market will have its own inventory, local tax rates, and environmental issues. You will need to research where you are buying before committing to buy. Do not forget to evaluate the supply of skilled labor in the area.

      2.Work with an accountant

Find an accountant who will work to determine your budget since affordability is a big component in Fort McMurray commercial real estate. The budget should include any hidden costs. The accountant will also help you navigate tax matters which are generally complex in real estate transactions.

Other issues to work on are transition financing, succession planning and the decisions on how the property will be treated when the business is sold.

     3. Prepare your financing

It is not easy to get approved for commercial real estate financing. The bank of your choice will want to look at your financial statements and ensure that profits are retained within the company. A warning is sounded that you should not have overly optimistic forecasts to avoid payment problems down the road.

Shop around to find the best financing package without forgetting that the interest rate is an important consideration but not the whole story. Do not forget to evaluate the percentage of the purchase that the bank is willing to finance.

    4. Plan your layout

Layout has a role to play in the operational efficiency of a business. You should hire a professional to design and optimize your layout whether you are renovating or working on a new building.

    5. Work with the right builders

Choose and work with builders who have experience, knowledge of the industry, a good reputation, timeliness and are responsive to client needs. This implies that if the building must meet food industry standards, you must work with builders that have expertise and experience in the industry.

Look at other factors such as the financial history of the builder. A credit check will help eliminate any doubt. You will not want to work with a contractor that takes your deposit to fund a previous job.

If you need any help with commercial real estate acquisition in Fort McMurray then consult with our Fort McMurray realtors today and we are here to make the process easier for you.

 

Real Estate Investing for Novices

Tue, 13 Jun by The Lore Group

Real estate investing is about putting money to work today so that it may increase with time to give you more money in future. The return on your real estate investment must be sufficient to cover costs such as the risk you take, taxes you pay, and the costs associated with real estate such as utilities, regular maintenance, and insurance.

With a good understanding of the basic factors of investment, economics and risk, real estate investing can be as simple as playing monopoly. The basics are buying properties, avoiding bankruptcy and generating rent to buy even more property. Simple will not always imply easy and any mistakes will lead to major disaster.

4 Ways Real Estate Investors Make Money

  1. Appreciation: Changes in the Fort McMurray real estate market will often lead to increases in value of a property. Notable changes include land becoming busier or scarce and upgrades made on the real estate investment to make it more attractive to buyers and renters. The appreciation of real estate is more risky than investing for cash flow income.
  2. Cash Flow Income: The focus here will be on buying real estate property such as an apartment and collecting rent from tenants who use the property over time. You can generate cash flow income from well managed office buildings, storage units, car washes and rental houses.
  3. Real Estate Related Income: Real estate industry specialists such as brokers make money through commissions by buying and selling property. Others such as real estate management companies retain a percentage of rent in return for running the day to day operations of a property.
  4. Ancillary Real Estate Investment Income: This form of income is generated from things like vending machines in office buildings or laundry facilities in low-rent apartments. They are mini-businesses within a bigger real estate investment and can make you huge profits.

Tips for Purchasing Real Estate Investment Properties

  • There are many different ways of purchasing your first real estate investment. The use of debt by taking out a mortgage against a property is the most popular way. A majority of real estate investors use leverage since it helps them acquire properties they otherwise could not afford.
  • The use of leverage is not without risk since in a falling market, the interest expense and regular payments can drive the real estate investor into bankruptcy.
  • Never purchase real estate investment in your name to help manage risk. Instead, the property should be held through legal entities such as limited liability companies or limited partnerships. It helps in circumstances that the investment goes bust or someone slips and falls, resulting in a lawsuit, you can protect your personal assets. The worst that could possibly happen is to lose the money you’ve invested. Your 401(k) plan assets, Roth IRA investment, and other retirement accounts should be out-of-reach.

The Types of Real Estate Investment to Make

You will need to carry out extensive research to decide the type of real estate investment that is appropriate for you. You must be in a position to understand and differentiate real estate investments.

If you are thinking about investing in Real Estate and need more information or need suggestion regarding the type of Real Estate Investment to make then contact with our Fort McMurray Realtors and they can guide you through the whole process.

 

 

 

The Ultimate House Hunting Checklist

Mon, 29 May by The Lore Group

The following are important components of your Fort McMurray house hunting checklist that will help in finding a house that meets your specifications.

1. The Home’s Exterior

You will want to look at:

  • The lot shape and size
  • The orientation of the house on the lot
  • Is the driveway private or shared?
  • General condition of the exterior including the front yard, the rear yard and the side yard.
  • Condition of the landscaping
  • Type of home
  • Type and condition of soil
  • Type of home, is it detached or duplex?
  • Number of stories for the home
  • Type and condition of siding and the paint
  • Condition of walkway to the front door. Is it a covered or enclosed porch?
  • State of the backyard. Is it fenced, does it offer privacy, is there a patio/decking?
  • The type of roof, the general condition and its age. Have there been recent repairs?
  • Type of foundation. Is it raised? Does it have cracks?
  • Structural appearance of the house

2. The Interior of the Home

  • What are the sizes of the rooms?
  • Is there soundproofing between shared rooms?
  • Are there separate hallways?
  • Are there closets for winter clothing?

Kitchen

  • The general size and color scheme
  • Check for features such as eat-in area, Food Preparation Island, sufficient cupboard space and condition, pantry, single sink or double sink.
  • Condition of the kitchen
  • Is the countertop space sufficient?
  • Type of countertop and its condition

Doors/windows

  • The types of windows – single pane or thermopane?
  • General condition
  • Do they open and close without sticking
  • Do the locks and latches work

Bedrooms

  • The number of bedrooms in the home
  • The type and condition of the floor
  • The number and size of windows

Bathrooms

  • The number of bathrooms in the home
  • Are there ensuite bathroom?
  • The type and condition of the bathroom floor

Family/living rooms

  • Is there a fireplace or wood-burning stove
  • The type and condition of the floor
  • Is there a separate dining room?

Basement

  • What is the general condition
  • Is there adequate headroom?
  • Is the basement finished, does it have a door to the outside?
  • Is there a storage area or utility area (washer/dryer sold with house)?
  • Are there cracks in wall or floors?
  • Is it drained or does it have a sump pump?
  • Evidence of flood or moisture?
  • Signs of recent renovations. Were they done by the seller or professionally?

3. Systems

Electrical Systems

  • Check for amperage, adequacy of outlets, fuses and circuit breakers
  • General condition and if they meet the current codes

Plumbing

  • Check for signs of leaks
  • Are pipes made of copper or other material?
  • Does plumbing meet the current codes
  • The age of the plumbing system and signs of recent repairs

Water Service

  • Is water city-supplied or well—drilled?
  • Does it ever run dry?
  • Has water quality been recently tested for potability?
  • Capacity, age of pump, size of feeder line from well to house, water agreement?
  • Sewer or septic system, City sewer?

Septic

  • Where is septic field?
  • Has the holding tank and system been recently checked?

Heating

  • Type of heating (oil, gas, electric, steam, baseboard combination, heat pump)
  • The age, output, and recent repairs

Air conditioning

  • Type (window, central), age, size, recent repairs

Hot water heater

  • Is it leased or owned, gas or electric,
  • Number of gallons, efficiency, age

Insulation

  • Type, rating, any asbestos or UFFI?
  • Ask to see copies of recent utility bills

Cable TV service

  • Adequate room outlets

4. Community

Is the home close to:

  • Schools
  • City services (fire, police, hospital)
  • Medical (doctor, dentist, optometrist)
  • Shopping (grocery, pharmacy)
  • Parks
  • Playgrounds
  • Day care

Recreation centers

  • Public swimming pool
  • Public tennis courts
  • Golf course
  • Skating rink
  • Hockey arena, ball park
  • Restaurants
  • Theatres
  • Public library
  • Places of worship
  • Major roads, highways
  • Public transportation
  • Possible problems (traffic congestion, train tracks, industrial sites)

Local neighborhood

  • Urban, suburban, rural
  • Older or newer—estimate age
  • Quiet streets
  • Adequate street lights
  • Visible power and telephone lines
  • Well-cared-for homes and yards
  • Sidewalks—general condition
  • Space between homes
  • Adequate street parking, overnight parking restrictions?
  • Possible problems (junked cars, poorly maintained roads, poor drainage)
  • Types of homes (detached, link or semi-detached, apartments)
  • Age group of homeowners

 If you are in the middle of your house hunting in Fort McMurray and need some general information or need more information about any particular property then don’t hesitate to contact with our Fort McMurray Realtors at The Lore Group.

The Psychology of Buying and Selling a House in Fort McMurray

Mon, 29 May by The Lore Group


Don’t let your heart make the decisions when it’s time to buy or sell your home.

Use your head to come out on top of this tremendous milestone

It should come as no surprise that the purchasing of a home is not only a massive financial investment, but an emotional one as well. In every aspect, the home that you choose is an active investment toward your future, your stability and your legacy, which makes it a pretty big deal when the time comes to sign that final paperwork and begin moving your life into a new place.

From here on in, this is where you will make many of your family’s best memories and share great times with loved ones. The walls will become filled with your photographs and every square inch of your home will become filled with stories to tell and memories to smile fondly on for years to come. Sometimes, you fall in love with a house from the second you step inside it for the first time. You envision your life taking place here, your furniture filling the space and barbecues in the front yard. You just know that this is where you want the rest of your life to take place.

It’s so easy to get wrapped up in the grand vision that a beautiful house can invoke, and it’s normal to feel a swelling of excitement in your chest when you think you may have found the one. But don’t let your emotions blind you to the realities of your situation. The house might be sheer perfection down to every plank in the floor, but there are factors to consider that extend to the world outside of your prospective new home.

How far will you have to commute to work? Is the neighborhood a good fit for your family? You must consider the priorities that have driven you toward finding a new home in the first place. If your ambition is to increase the time you get to spend with your family, it’s probably not best to buy a house that requires you to commute two extra hours a day to work, for example.

Believe it or not, psychology has a massive role to play in the process of buying or selling a home.

Obviously, the decision to purchase a new home in Fort McMurray is a huge undertaking that you wouldn’t consider too lightly. But no matter how diligent you feel you might be in this process, that cozy breakfast nook or spacious back yard could send a bit of your rationality flying outside the illuminating bay window. Don’t agree to anything before you have a chance to think rationally and calmly about the huge decision that you will soon be making.

This is your future, after all. Take a few notes from the mistakes of others to avoid making expensive or frustrating mistakes when you’re buying or selling a home.

Think about the long-term.

The house is perfect. Every amenity you could ever want and enough well-lit space for every member of your household has you seeing this place through rose-colored glasses.

But will it make you happy for the rest of your life?

Everything in the house might be all that you’ve envisioned for the future, but will it satisfy you in the long-term? While so much of your life is conducted inside of your home, it’s not just the structure itself that needs to make you happy. Will updating your home mean moving far away from family or friends? Will your children have to change schools, and will you have to commute even further to work each day? All of these things can and will impact your overall happiness. Don’t let being enamored with a charming home blind you to this fact.

In the world we live in, many associate a bigger, fancier abode with being genuinely happier, but this is not the case. It doesn’t matter how lovely the home is if you’re pulled away from things that make you happy in order to make the move. Don’t sacrifice the things you love just for a bigger house.

Your social relationships are important to your well-being. Sometimes we might find ourselves in positions where it is necessary to move further away from the ones we love, but generally it should be avoided when at all possible. The social element of living should not be forgotten, as it is critical to our happiness. No matter how big or small our individual social circles are, to suddenly no longer be a part of them due to distance can be shattering.

Factor in all of your expenses.

Buying a Fort McMurray home usually means dropping a serious amount of money at once. Down payments, moving expenses, furnishings and more add up consistently through the process of buying your new home, but many people don’t calculate their final expenses until they’re left staring in astonishment at a surprisingly high final tally.

Don’t let the expenses sneak up on you. Make a list, write it down and keep it close by any other materials you have related to your home-buying venture. Calculate costs early on for everything that you will need to move your life from House A into House B, including the seemingly minor things. It all adds up in the end, and a wise investor is careful to make sure they know how much they are spending as early on as possible.

Consider renting, instead of buying.

Many homeowners say that owning a home causes a lot of undue stress that they didn’t expect to have to deal with until they were in the thick of it. Maintaining a home requires a great deal of time and effort that some people just are not capable of putting forth for one reason or another, and there’s nothing wrong with opting out of the responsibility.

A lot of people go into buying a home beaming with pride because they’ve “made it,” they’ve accomplished the American Dream of being a home-owner, and they are rightfully excited. But then the excitement begins to fade as they start to be weighed down by the burden of maintenance and expense. Unforeseen costs and repairs will happen, and not everybody is capable of or willing to deal with that. Some aren’t prepared to deal with the large monthly mortgage payments that come with their new home.

It’s better to hold off on buying a home, than diving in and realizing that you don’t know how to swim.

If you’re selling a home, don’t bet everything on a big return.

When the time comes for a homeowner to sell their house, many individuals expect incredibly high returns for their property without taking matters such as inflation into account. They view their home with rose-colored glasses and don’t want to part with it for a price that they feel is unsuitable. It’s understandable. The home might have deep sentimental value for you that you can’t even begin to put a price tag on. Still, it is unwise to place the future of something important-say, your retirement-on the return you will get from selling your home.

If enough people are to engage in this type of thinking when they go to sell their home, this can actually cause a distortion in the market by leading to speculative booms.

Researchers believe that this over-optimism is caused by what is called the “money illusion,” which occurs when person tries to sell a property for a certain price without taking inflation into account. For example, say you are selling a property that had originally been purchased for $10,000 a long time ago. The value in this time has increased to $40,000. You think, wow, that’s a big return!

But when you consider the cost of everything caused by inflation, it really might not be that much.

You might come out ahead, but consider that you might not.

A huge emotionally-driven factor of selling one’s home is an aversion to getting less than they spent on the property to buy it in the first place. It makes sense. You want to make money, not lose it, in the sale of your home. Taking a loss financially might hurt, but it happens sometimes.

When a seller refuses to budge on the asking price of their home, this can result in the house staying on the market for a really long time. Some sellers can’t wait that long, but the ones that can, and do, can profit. This is, of course, if they sell the house at all. Sticking with too high of a price can come back to bite you, forcing you to reduce the price anyway if you want to make a sale.

When it comes to determining a price for your home in Fort McMurray and what you may be willing to settle for, it’s important to be flexible and realistic in your goals. Evaluate Fort McMurray Real Estate market wisely and understand that you might end up not being able to recuperate everything that you have put into buying and maintaining the home. Being stubborn is a risky maneuver that can yield great reward, but this is never a guarantee.

To summarize, it is essential to use level-headed rationality rather than emotion when making decisions about buying or selling a home. It can be easy to fall into these behaviors, but it is important to set aside the time and focus to make sure that the home and its location are a suitable fit for yourself, your family, and the next chapter of your life. Don’t forget to consult and take expert options of Fort McMurray Realtors before making the final decision.

Consider buying vs. renting.

Mon, 06 Feb by The Lore Group

HELP TURN YOUR RENT PAYMENTS INTO YOUR OWN PAYMENTS

Renting is like borrowing a home from someone else – it’s never really yours. Owning a home gives you the satisfaction of knowing you’re making a smart investment. Buying doesn’t necessarily cost more than renting. And since a home is something that can increase in value over time, the sooner you become a homeowner, the sooner you can benefit.

If you are renting, you may be surprised at how much of a mortgage you could afford.

TAKE A LOOK AT THE EXAMPLES BELOW:monthly
rent

IF YOUR MONTHLY RENT IS YOU CAN AFFORD

$1,300 $231,612
$1,500 $267,245
$2,000 $356,327
$2,500 $445,409
$3,000 $534,490
$3,500 $623,572

** These examples are based on a sample annual interest rate of 4.64% (Annual Percentage Rate of 4.60%), calculated semi-annually not in advance, and assume the interest rate remains constant for the full 25-year amortization period of the mortgage.

READY TO EXPLORE HOW HOME OWNERSHIP COULD BECOME A REALITY FOR YOU?

The Lore Group has access to the finest lenders that are ready to turn your home into your own. Stop paying the landlords mortgage and talk one of our Fort McMurray Realtors today about how.

IT’S EASIER THAN YOU THINK

CMHC to hike mortgage insurance premiums starting March 17

Wed, 18 Jan by The Lore Group

The Canada Mortgage and Housing Corporation will charge borrowers a few dollars more every month to insure their mortgages, starting in March.

The housing agency made the announcement in a release Tuesday.

Starting March 17, CMHC will charge mortgage holders slightly more every month to insure their loans.

By law, anyone putting down less than 20 per cent of the purchase price of a home in Canada must pay mortgage insurance, even though the homeowners themselves don’t benefit from that coverage. Rather, it’s a fee borrowers pay so if they default on loans, their lenders aren’t on the hook. Instead, an insurance payout would cover any defaulted loans.

Royal Bank hikes mortgage rates
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Premiums are calculated based on the amount borrowers are getting versus the size of the down payments.

Typically, CMHC fees are as little as 0.6 per cent of each loan’s value. But on smaller down payments and larger loans, the fees can mount to 3.6 per cent — more than six times as much as the lowest rate.

In an expensive market such as Toronto, for example, where the latest figures show the average house price is $730,472, a borrower with a small down payment of less than 10 per cent would have to borrow $682,425 to buy the average house in that city, mortgage comparison website RateHub.ca calculates.

Under current rules, the CMHC charges 3.6 per cent to insure that mortgage, or $24,567 over the life of the loan.

Under new rules starting March 17, the CMHC will charge four per cent of that loan’s value to insure the loan. That pushes the premium to $27,297, an increase of $2,730 or $12 a month.

Different borrowers will pay different amounts depending on how much they are borrowing, and how much equity they have.

The fee changes are outlined below:

CMHC MORTGAGE INSURANCE PREMIUMS RISING

CMHC says the average loan on its books is for about $245,000. It expects the changes announced Tuesday to work out to an extra $5 a month, on average, per borrower.

“We do not expect the higher premiums to have a significant impact on the ability of Canadians to buy a home,” said Steven Mennill, CMHC’s senior vice-president of insurance. “Overall, the changes will preserve competition in the mortgage loan insurance industry and contribute to financial stability.”

How to score the best mortgage to wipe out that debt

The changes will only affect mortgage applications received as of March 17. Anyone who already has a mortgage or has applied for one will be grandfathered into the old rates.

As of Jan. 1 of this year, Canada’s top banking regulator the Office of the Superintendent of Financial Institutions (OSFI) requires banks and insurers to hold more capital against the mortgages on their books. One of the easiest ways to do that is to pass those costs on to borrowers by charging them more to insure loans.

The last time the housing agency hiked premiums was in 2015, when it hiked premiums by as much as 15 per cent for some borrowers.

Contact with our Fort McMurray Realtors to learn more about this new announcement from CMHC and how your home buying can affect from this.

Happy New Year!!

Thu, 05 Jan by The Lore Group

At last 2016 is in the rear view mirror! It’s been a tough one for Fort McMurray folks and most are glad to say goodbye. As we do so we would like to reflect on a few of the many things we are grateful for. For the great strength that we found in ourselves and each other during our most difficult times while fleeing a massive fire that decimated the community we love. For shoulders to lean on and the gracious and giving hearts of strangers we now call friends that reached out to the Fort McMurray community in our time of need. For the hope that inspires us as we work through the difficulties of the rebuild.

We look forward to the coming year. As we do we are reminded that many are still in need and not in their own homes. 2017 will be full of challenges to be sure, we want you to know we are here for you!

The Fort McMurray Real Estate Market will be forging new unprecedented ground this year as we enter the rebuild process aggressively in the coming months. There will be new opportunities and challenges. As a home owner it may be important for you to keep informed.

Our group will be monitoring the market, building on our preferred trades and trusted builders list from amongst the most reputable home professionals.

Please feel free to reach out to member of our group for information. No question is too small and we are here to help.

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Ft. McMurray Real Estate Board. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.