Experience can make the most dramatic difference during a home purchase.

Negotiating the purchase of your new home is one of the most crucial aspects of your real estate journey. It’s also when your real estate agent’s experience can make the most dramatic difference during the process of buying a home. RE/MAX agent Tony Iacoviello with RE/MAX Escarpment Realty in Hamilton, Ontario, shares four ways an agent acts as a professional negotiator, helping to ensure you’ll receive a fair closing agreement for your new home.

Being in the Know

Your real estate agent is a scholar when it comes to the real estate market. With their niche industry knowledge, they can take lead when it comes to negotiating a reasonable closing agreement based on the appropriate value of the home.

Objectivity

Your agent is trained to resolve conflict and knows how to remain cool, calm and collected during any intense moments of negotiation.

Knowing What to Ask For

Agents are well-versed in the language that surrounds negotiation. As your advocate, they’ll request maintenance, like concessions and repairs, in a manner that’s appealing to the seller.

Building Bridges, Not Burning Them

Negotiation isn’t about working against the seller, it’s about working with the seller to get the best and most appropriate closing agreement for you.

Source: https://news.remax.com/4-negotiation-tactics-your-real-estate-agent-knows

What not to do before the house is officially yours.

The end of the home-buying process is in sight! It’s only a matter of time before S-O-L-D takes over the “For Sale” sign of your future home. But don’t get ahead of yourself and make a careless error that could slow down or even kill the sale. To ensure your closing is smooth and successful, avoid the following all-too-common mistakes. 

Your home purchase agreement may include deadline-specific obligations, such as a home inspection or securing finances for an appraisal. It’s essential that you stay within the established timeframe as closely as possible. Don’t be afraid to follow up with your home inspector, mortgage loan officer and anyone else responsible for meeting the deadlines outlined in your agreement.

Making Big Purchases During Escrow

Messing with your income-to-debt ratio is a red flag for lenders. The ratio of your monthly income to your debt is one of the main factors a lender considers when qualifying you for a mortgage loan. Before closing on a home, your lender will most likely run your financials two or three more times. You’ll want your finances in tip-top condition during this process.

Opening New Credit Cards

While it’s tempting to buy new furnishings, dishware and appliances for your future home, be sure to hold off on opening new credit cards until after closing.

Changing Jobs

It’s good to help the lender feel confident in you before closing. What makes a lender confident? Stability. Changing jobs right before a closing can slow down the process or scare a lender out of the deal. Lenders typically want physical proof of a two-year work history, so this isn’t a wise time to make a big career change.

When you are inches away from sealing the deal on your new home, it’s critical to avoid making these mistakes that can bog down – or stall – the closing process.

Want the best help from “sale” to “sold”? Get in touch with a RE/MAX agent today!

Source: https://news.remax.com/4-mistakes-to-avoid-before-a-closing

When it comes to selling a home or preparing to move up to a larger space, your small house has the potential to make a big impression. The exterior and interior aesthetics of your house can play a significant role in capturing the interest of potential buyers. By creating an illusion of greater space, you can make your small house stand out, making it feel larger and more inviting.

There are numerous simple and effective ways to make a small house appear more spacious and open. By implementing a few straightforward strategies, you can transform your home into a more appealing and marketable property, ensuring that it catches the eye of every potential buyer who walks through the door. Let’s learn how to make your house look bigger, outside and inside.

Tips for How to Make a Small House Look Bigger

The Power of Paint

Paint is a powerful tool for making a small house appear larger. Strategically using paint colours, both inside and outside, can completely change the perception of space, making rooms feel open and airy and the exterior more inviting and expansive.

Opt for lighter shades such as beige, soft gray, and white for the bulk of the exterior. These colours reflect more light and can make the house look larger and more welcoming. Employ darker shades for trims, windows, and doors to add depth and dimension without overwhelming the overall appearance. Darker accents can highlight architectural features, making them stand out and add visual interest.

For the interior, light shades such as pastels, light greys, and beige can create an illusion of larger spaces. These colours reflect more natural and artificial light, making rooms feel airy and expansive. Ensure a cohesive colour palette throughout the interior to create a seamless flow from room to room. This continuity prevents visual interruption and makes the entire space feel more unified and spacious.

Strategically placing darker colours in a room can paradoxically create an impression of greater space by adding depth and dimension to the environment. For instance, painting one wall in a darker shade while keeping the other walls light can draw the eye outward, elongating the perceived dimensions of the room. By carefully selecting where to place these darker colours, homeowners can transform a small, constrained room into a visually dynamic and seemingly larger space.

Utilize Architectural Details

Several elements can work together to maximize natural light, create a sense of depth, and enhance the visual flow between indoor and outdoor spaces:

Horizontal Siding – Incorporating horizontal siding can elongate the visual width of the house, making it appear broader and more spacious.

Large Windows – Installing larger windows is key to bringing in ample natural light, making any room feel larger and more inviting. Large panes minimize obstructions and offer unobstructed views, helping blur the lines between indoor and outdoor spaces.

Sliding Glass Doors – Sliding glass doors, especially those that open onto a patio or garden, can significantly enhance the sense of space. These doors serve as functional barriers that can be easily moved to merge indoor and outdoor living areas. The transparent barriers ensure that they don’t disrupt the visual continuity even when closed.

French Doors – French doors offer the additional benefits of elegance and aesthetic appeal. Opening both doors can provide a wide entryway that facilitates easy movement between spaces, enhancing the overall flow and feel of a larger area.

Free Up Floor Space

Improving the flow and usability of each room can contribute to a cleaner, more organized appearance, which naturally enhances the sense of space. Choose pieces that serve more than one purpose, such as ottomans with storage compartments, sofas that convert into beds, or dining tables with built-in shelves. Multi-functional furniture saves space by reducing the number of items needed, making the room less cluttered. However, make sure it fits the scale of the room. Overly large furniture can overwhelm a small space, while appropriately sized pieces can make the room seem more spacious.

To maximize space, utilize built-in storage options like recessed shelves, under-bed drawers, and wall-mounted cabinets. These solutions help keep belongings organized and out of sight, keeping the living areas free from clutter. Use vertical space by installing tall shelves, hanging storage units, and stacking storage boxes. Vertical storage draws the eye upward, emphasizing the height of the room and making it feel larger.

Arrange furniture to create clear, unobstructed pathways through rooms. Avoid placing large pieces in high-traffic areas to ensure easy movement. This layout not only improves the functionality of the space but also prevents it from feeling cramped.

Whether you’re wondering how to make a small house look bigger before you list it for sale, or you’re ready to make your move into new home, partnering with a real estate expert can make all the difference. Contact your local REMAX agent to start your journey toward a successful home sale and your dream upgrade.

Source: https://blog.remax.ca/how-to-make-a-small-house-look-bigger/?fbclid=IwY2xjawOVYUdleHRuA2FlbQIxMABicmlkETFBenhlOEZ6VG84ajVCZGc1c3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHqgbe6YLWAoqIm92W8IABh-ti7lUrfgk49hS8fVF3sOv_dRU66Uz-pOspPr8_aem_kSDQU7DMfuQ8UEve7slSfA

Help your wallet (and your peace of mind!) by hiring a professional inspector before signing on the dotted line.

Buying a home is expensive, so why spend more money on a home inspection? Well, having a professional perform a home inspection can actually help your wallet in the long run. You’ll improve your chances of avoiding unwanted housewarming “gifts” -­ like a surprise rain shower from a broken pipe – and decrease your chances of experiencing buyer’s remorse. Need a few more reasons for why home inspections matter? Read on!

No Surprises

The excitement of homeownership can skew perspective – as though you’re seeing through rose-colored glasses. Thankfully, a certified home inspector has no emotional attachment to your soon-to-be residence and can objectively identify structural, electrical and plumbing issues. 

Bargaining Power

Since home inspections are typically conducted after an offer is accepted, the inspector’s detailed report can – and should – be used as a negotiating tool with the seller. 

Save Money Down the Road

Inspections can help you gain bargaining power, and with this bargaining power you can save hundreds or even thousands of dollars down the road. It’d be quite a burden to skip a home inspection only to later find out the entire home needs rewiring. 

Safety

You’ve heard it before: “Safety first!” This is especially true for your new home. Home inspections not only uncover minor damages to the house but also life-threatening issues like lead paint, asbestos, radon and mold.

As you continue your path to homeownership, it will be important to have an agent guide you through the process. Find an agent in your area today!

Source: https://news.remax.com/4-reasons-why-home-inspections-matter

7 tips for easing the stress once the house is yours.

You’ve finished signing papers and it’s official – the house is yours! Time to prepare for the big move. At this stage, initial feelings of excitement may soon give way to anticipation, chaos and long to-do lists. To prepare yourself and relieve the stress of moving, follow these seven tips.

Create a Moving Binder

With the countless expenses, receipts and packing lists that accompany the moving process, it is critical to keep your records organized. Use a binder to store and organize all documents related to the move.

Declutter and Purge

Close your eyes and envision your new space – how do you want it to look and feel? When you start packing up your belongings, be cognizant of what’s valuable to you versus what’s just clutter. If you’re unsure of how to pare down, ask yourself – honestly – if it will enhance your new space. A new home is an opportunity to start fresh and create an environment you love.

Labeling Boxes

Labeling your boxes with their corresponding rooms will make unpacking much less complicated. Mark your fragile items clearly to avoid them being damaged during the move. 

Decide Your Method of Moving

Do you want to hire a moving company or are you more DIY? Weigh the pros and cons: How much are you willing to spend, and how much time and energy do you have to complete the move yourself? If you’re uncomfortable with heavy lifting, consider a professional mover to do the job for you

Change Your Address

Be sure to forward your mail a few weeks prior to moving (to begin on your move-in date) and update your address on important documents and accounts, including your driver’s license, subscriptions, newspaper, credit cards, bank accounts and other online accounts.

Transfer Utilities

Consider what services you need up and running on the day you move into your new home and contact those providers weeks in advance. Make gas and electricity a priority, followed by services like cable and internet.

Research Things to Do in Your New Area

Get familiar with your new neighborhood by researching the best restaurants, cafes and activities in town. It will get you excited about the move and also make the area feel more navigable once there.

Reduce your stress during the home-buying process by working with a RE/MAX agent.

Source: https://news.remax.com/how-to-prepare-for-a-move

Regardless of where you’re buying or the market conditions, there’s one thing every homebuyer has in common: you have to make an offer to purchase a home.

Whether you’re still in the browsing stages or have started to put your plan into action, as a prospective buyer, it is wise to do some legwork and gain insight into the process of how to make an offer on a house in Canada. While your real estate agent is there to guide you, the more you know about the home-buying process, the smoother it will be.

An efficient process is especially pivotal in a seller’s market, where you’ll need to take quick and decisive action when you find a property that interests you.

Preparing for Making an Offer

Having all your ducks in a row makes home hunting easier and allows you to pounce on the perfect property when you find it.

Get Cash Ready for Your Down Payment and Deposit

Part of understanding the ins and outs of how to make an offer on a house, is ensuring you have cash on hand for both your upfront and closing costs. Don’t know the difference between an upfront deposit and a down payment? Since a more robust deposit could be the key to winning a bidding war, it’s vital that you do.

Ideally, you’ve placed your savings in either a regular savings account, a TFSA (tax-free savings account) or an FHSA (first-time home buyer’s savings account), as withdrawing the cash outright, or selling investments within these accounts and then withdrawing the money, will be tax-free.

On the other hand, if you need to take money out of an RRSP or sell investments to come up with the cash you’ll need, you should understand the tax implications of those actions and include it in the next step.

Creating a Purchase Budget

When you visit your bank or mortgage broker, they’ll let you know how much mortgage you’re pre-qualified/pre-approved for. But that doesn’t mean you should ante up the total amount when you make an offer on a house. You’ll need to create a purchase budget to better understand what you can afford.

Break out your favourite spreadsheet software, drop in your current savings plus all your expected sources of income over the next twelve months, then add in what you’ll need for your downpayment, deposit and closing costs – including any tax repercussions from liquidating registered accounts, etc.

Calculate what your monthly property tax, insurance, utilities, condo or homeowners association (HOA) fees would be, then calculate the monthly mortgage payments for various offers. For example, if you pre-qualified for an $800,000 mortgage, you’ll want to determine how offers from $650,000 to $750,000 affect your monthly mortgage payments.

By creating a budget that spans a full year (or more), you can play around with different offer amounts and know whether you’ll have enough cash left over every month to renovate or redecorate as needed or whether you’ll be “house poor” – meaning almost all your income will go towards just getting by – versus being able to truly enjoy your new home.

The maximum budget for your offers will become apparent, ensuring that you don’t get caught up in the heat of the moment and make an offer that’s beyond your ability to afford.

Do Another Walkthrough at a Different Time of the Day

If you liked what you saw on your first showing and plan on making an offer on the condo or house, do another walkthrough at a different time of the day.

A home inspection will tell you what you need to know about the “fitness” of the structure, electrical and plumbing, so what you’re evaluating on your second go-round is not just whether the look and location are better than homes you’ve seen before, but whether this house will suit your needs now and at least five years forward.

Visiting at a different time of day is crucial, as you might watch a neighbourhood that seemed serene and peaceful in the morning, transform into a maelstrom of constant noise and traffic after dark.

Chatting up the neighbours can also help you learn about the property and the surrounding area. 

How Long to Make an Offer on a House After a Property Viewing?

If you’re happy with what you’ve seen, there’s no reason to wait to make an offer. In fact, in a hot market with multiple daily showings, the sooner you can get an offer on the table, the better.  

How to Make an Offer on a House 

Mortgage Pre-Approval:

New home buyers often wonder if they need pre-approval before making an offer on a house. Unless you plan to pay cash for the house, you’ll need to secure financing, and that’s where pre-approval comes into play. It will also help if you need to move quickly with your offer.

Once you plug your pre-approved mortgage amount into your purchase budget, you’ll know exactly how much you can spend, and you’ll also be able to reassure the seller that you won’t have to back out of the purchase based on financing. 

A pre-approval also locks in the current interest rate for up to 120 days, so you can shop with peace of mind, knowing that you’re insulated from rate hikes in the near future. If interest rates drop before you buy, your lender should honour the new lower mortgage rate when you’re ready to make your purchase. 

Decide on an Offer Amount:

When considering how high or how low an offer to make on a house, a crucial step is understanding the property’s value. To do that, you’ll want to get your real estate agent to conduct a Comparative Market Analysis (CMA), which compares the property with similar homes in the area that have recently sold, are currently on the market, or were on the market and didn’t sell. This analysis helps you gauge the house’s fair market value based on factors such as location, condition, size, and unique features. 

While determining the offer amount, it’s essential to balance the property’s market value with your budget, but the current market conditions also influence the decision.

In a buyer’s market, you may have more leeway to negotiate BELOW the asking price, whereas in a seller’s market, you might need to offer at or ABOVE the asking price to be competitive. Your offer should reflect both the property’s worth and what you can afford, keeping in mind that your initial offer sets the stage for all future negotiations. 

Additional Considerations:

When making an offer on a house, there may be additional considerations beyond the offer amount – such as a home inspection, mortgage financing and an agreement on a closing date – which are crucial for a successful transaction. When thoughtfully addressed in your offer, they protect your interests, demonstrate your commitment to the seller, and make your offer more appealing. We’ll go into more depth on some of these conditions below. 

Real Estate Paperwork:

When you’re ready to make an offer on a house, your agent will draw up the necessary paperwork, typically referred to as a Real Estate Purchase Agreement, though its name differs across the country. According to Canada Mortgage and Housing Corp., your offer documents must include the following specific details in order to be valid: 

• Your legal name, the name of the seller and the address of the property 

• The amount you’re offering to pay (the purchase price) and the amount of your deposit 

• Inclusions and exclusions (for example, are the window coverings included in the purchase?) 

• The date you want to take possession (“closing day”) 

• A request for a current Land Survey 

• The date the offer expires 

• Any other conditions that must be met before the contract is finalized (for example, a satisfactory home inspection)

The Price:

When making an offer on a house, be prepared to negotiate. Your negotiating power will depend on a few factors. The current market conditions in the immediate neighbourhood will dictate whether you can make a lowball offer – a likely scenario in a buyer’s market – or perhaps an offer that’s higher than the asking price, which became common in the record-breaking seller’s market brought on by the pandemic. 

Deposit:

While “deposit” and “down payment” are often used interchangeably, they are different. At the time of the offer, the buyer should come prepared to put a deposit on the home they hope to buy. 

The deposit will be rolled in with your down payment, showing the seller that you’re serious about buying the home and that you have your finances in order. If the buyer walks away from the deal, they will forfeit their deposit in most cases. 

There’s no standard deposit amount. It will vary based on the property type and the buyer’s desire for the particular home. The deposit is generally given to the seller’s agent to be held in trust until the deal is firm, but some sellers require a deposit to be placed in an escrow account.  

Down Payment:

A down payment is the amount of money paid up-front as a lump sum when you buy a home. It is calculated as a percentage of the total purchase price.

In Canada: 

• For homes with a purchase price of $500,000 or less, the minimum down payment is five per cent. 

• The minimum down payment for homes priced $500,000-$999,999 is five per cent for the first $500,000 and 10 per cent for the remaining portion. 

• Homes over $1.5 million require a 20-per-cent deposit. 

Keep in mind that this is the bare minimum required to qualify for a mortgage. However, anything below 20 per cent is considered a “high-ratio” mortgage and requires mortgage loan insurance.

Mortgage default insurance, or mortgage loan insurance, protects the mortgage lender if you aren’t able to make your monthly mortgage payments. While mortgage loan insurance is required if you have less than a 20-per-cent down payment, a lender may still require it – even if you put the complete 20-per-cent down – especially if you’re self-employed or have a poor credit history. 

Firm Versus Conditional Offer in Real Estate:

With the competitive market brought on by the pandemic, it was common to hear of bidding wars where buyers would make an offer without any conditions. This is called a firm offer. The buyer is 100 per cent certain of the purchase. They do not require any conditions for a home inspection or financing. Once the offer is made, the buyer can’t back out of the deal. 

Conversely, a conditional offer requires specific terms to be satisfied for the offer to be valid. These conditions protect the buyer; some common conditions include: 

• Purchase conditional on financing: This is a common condition for first-time homebuyers making an offer on a house, and it requires the sign-off of the mortgage lender for the deal to go through. The buyer will have a few days to get this, and the process will include a home appraisal. If the lender does not agree to finance the property, the buyer will notify the seller, and the offer becomes null and void.

• Purchase conditional on home inspection: A home is likely the biggest purchase you’ll make in your lifetime, so it’s always recommended that the offer be dependent on a satisfactory home inspection. A professional home inspector will look at things in and around the home that are openly visible (they will not be opening up walls or floors). The inspector will examine the structure, roof, plumbing, heating, and electrical systems to ensure the house is in good condition. If the home isn’t up to par, this condition allows the buyer to return to the seller and request repairs, a reduction in the price, or rescind the offer entirely.

• Purchase conditional on the sale of a home: If a prospective homebuyer already owns a home, they may want to ensure it is sold before agreeing to purchase a new property. This isn’t ideal for the seller, as every condition has a potential domino effect. 

A firm offer is typical in a hot market. With all other things being equal, a seller is more likely to accept an unconditional offer over one that could fall through for several reasons. 

Negotiations:

An experienced real estate agent will be able to advise you on what you can realistically negotiate, depending on the market conditions. In a buyer’s market, you hold the cards, knowing that there are plenty of other options on the market. In a seller’s market, you compete with other buyers vying for the same property, so quick action and a strong offer are more likely to work in your favour. 

Legal:

Your offer is a legal document, so ensure you read and understand everything outlined within it. If you don’t, you shouldn’t sign until you review the offer with a lawyer.  

Feeling Better About How to Make an Offer on a House?

Buying a home is a big deal, from the shopping and vetting process to the financial and emotional commitment you’re about to make. The offer is also a legally-binding document.

All your questions about making an offer on a house are valid, as even seemingly minor details will have a domino effect throughout the rest of the purchasing process and even long after you’ve taken possession.

Don’t go it alone. Work with an experienced RE/MAX agent and an experienced real estate lawyer to avoid potential pitfalls and ensure your best interests come first.