Have a great day!
I spoke with a good friend of mine recently who was looking into pursuing a home that was offering an assumable mortgage. He explained to me that this was the absolute best way to get into his first home without putting any money down. Just thought I’d make some suggestions on the topic as a result of that conversation.
Assumable mortgages offer an attractive option to anyone who doesn’t have enough money for a down payment on a home. There are some things to keep in mind when looking into the option of assuming a mortgage. One important consideration is the fact that you still must qualify for the mortgage, so all of the traditional factors come into play, income verification, credit check etc (which can still make this a difficult scenario). Also consider the interest rate on the mortgage, right now rates are tantalizingly low, so it may be beneficial to look into a new high ratio mortgage on a new property (depending on when the assumable mortgage was issued there rate may be a point or two higher).
There are alternatives to assumable mortgages with respect to putting zero down like seller financing or “seller take back mortgages”.
Before pursuing any assumable mortgage scenario speak with your licensed mortgage broker to get the details and discover if an assumable is the right option for you.
Many people are already aware of the major multi-million dollar east village development project taking place east of city hall downtown. This project looks absolutely amazing and I will be taking it upon myself to provide updates on the construction progress as it happens. Demand for a cultural and social hotspot in Calgary has been growing tenaciously over the years and now Calgarian’s can look forward to a new fresh and hip area of the city to take advantage of. Check out this video to see the master plan, very cool.
During the past months
there has been a rise in the average time it takes from the time a property is
listed to when it sells (DOM). The
average time it took to sell a single family home in August 2009 was 42 days
while August 2010 was 50 days, showing a 16% increase in the time it takes to
sell year over year. Single family sales for the same months respectively were
1275 units Aug 09 compared to 866 units for Aug 2010, showing a rounded 32%
decrease year over year (keep in mind this number is a decrease in the number
of solds, not price).
This isn’t exactly shocking news as inventory has increased since the same time period last year resulting in the heightened DOM for sold properties. With the end of the year slowly approaching and the infamous December slowdown in real estate activity coming with it, sellers should be thinking about pricing more effectively and ensuring their property shows as well as possible.
In this buyers market doing your due diligence as a seller and making sure your property stands out as soon as it hits the market will be an essential aspect to selling their home in the coming months.
This information deemed very reliable but not guaranteed
I spoke with a client
of mine who mentioned that prices have declined drastically from the same time
last year based on an article he had read on the decline of the actual single
family units sold. With respect to the 32% decrease in sold units year over
year from Aug 09 to Aug 10, I think a little more information would be helpful
for clarification. In a recent post I spoke
of the decline from Aug 09 year over year to Aug 10 from 1275 units down to 866
for the number of successful single family transactions.
Keep in mind this is
simply that, the number of “units sold”, the actual average price of a Single
family home in Aug 09 was $453,520 and for Aug 2010 Average SF price was $445,797
actually showing a very slight increase of 2% year over year. It is a very incremental
increase, however it displays that although the number of sales is down,
average SF price has remained stable. Keep in mind this is ONLY for August
based on a year over year comparison.
This simply illustrates that a number of different factors need to be considered when analyzing the market to determine if now is a good time to buy/sell, or even just to ensure your getting the right information for your research. Newspapers tend to cite specific statistical data which can make it hard to decipher what has been occurring in the broader scope of the market.
Information herein deemed reliable but not guaranteed
There is no doubt that in the last 5 years the internet has seen some major advancements namely in the area of social media. Whether its face book, Twitter, Stumble Upon, or websites like Dig.com, there is an overwhelming sense that the way we communicate not only personally but in business as well, is changing. These sites offer an easier more effective way of staying in touch in a way reminiscent of the invention of the cell phone. Advancements like these, so amazing in their effectiveness and viral nature are forever changing how we do business and more specifically business in real estate. There are waves of people taking advantage of these medians to help boost home exposure and buyer receptiveness in the marketplace. Naturally the question of whether or not this booming trend is as effective as it’s cracked up to be arises, however in my own opinion I would say most certainly yes!
Real estate has always been about communicating, advertising and marketing and this new paradigm shift online is making it easier to do by the day. Utilizing these social media sites is an excellent way to get in touch passively to hundreds of thousands, heck even millions of people around the world who could potentially be the right match for a home you are trying to sell. On the other hand buyers now have even greater access to properties at the click of a button.
So what are the downsides to such marketing tactics, in my opinion it is hard to find a reasonable answer except for real estate agents and homeowners who are not taking advantage of it. Considering the way the last 2 years has been more creative and innovative ideas will always be a help, even if only a little. Whether its utilizing Youtube for video exposure of your property or advertising on Facebook to increase your homes exposure, this social media mindset needs to be taken advantage of for the simple fact that it’s not going anywhere (not to mention how effective it is).
With the increased levels of listings in Calgary many buyers, especially first timers are being very cautious in their decisions to buy a home. With such high inventory the market has sided with buyers offering opportunities to pay less than list, which a recent Royal LePage survey helps confirm. This expectation, citing the survey, outlines that 71% of Albertan buyers expect to pay less than list price which is above the 65% of people nationally.
These numbers simply reinforce what many already know about the market situation in our city. With the reduced number of sales year-over-year and so much inventory sellers are going to have to be more in tune with their listings. Over pricing in a market like this will no doubt result in a long term “stagnant” listing, with buyers opting for more competitively priced homes. This is an obvious mistake and could result in a seller “chasing the market” so to speak with gradual price reductions which will only lessen their market exposure. The fact that only 26% of Albertans surveyed said they would pay asking price for a Calgary home offers insight for sellers and should prompt them to be very objective when listing.
If you are selling your home in this market an intuitive approach to the process will greatly increase your chances of selling. Overlooking minor repairs or anything else that could leave a negative impression (cluttered house, paint chips, scent of animals etc..) will only deter buyers who as we know, have no lack of product to choose from.
Highlighting all the best your home has to offer is paramount because the features and unique touches of a property are often times what sway a buyer to purchase a specific home. Highlight absolutely EVERYTHING that you have enjoyed about your property and make it easier for a buyer to want it more than your competitors. In short effective pricing, staging, and high exposure marketing should be a home owner’s main focus now more than ever to gain an edge over competing listings. The market will turn around and gain pace as it always has, but if you are selling your home, now is always better than later.
In the Calgary real estate market buyers have a few options when deciding what type of property they would like to purchase. With each of these options there are pros and cons to living situation depending heavily on what type of lifestyle the buyer wants for themselves. A single family home offers the highest privacy factor but also yields a high maintenance lifestyle, larger lawns to up keep, shoveling sidewalks and a responsibility for all repairs are some examples of what some home buyers just don’t want to deal with. Condos offer another avenue for the potential buyer offering a community based lifestyle with many neighbors and a lot less maintenance, yet still some purchasers avoid condos one reason is that owners have to be very cautious about noise pollution in their unit. Then we find the real estate mid ground, the townhome, townhomes offer many of the benefits of a home and condo wrapped into one. Some you own the lot and not just airspace as with a condo some have condo fees while others do not. Townhomes are versatile and offer a more private lifestyle than a traditional high rise condo but typically demand less maintenance than a detached home. There are many more reasons why townhomes are such a great option for home buyers and there are certainly some great aspects to selling a townhome as well. Calgary’s real estate market is saturated with high-rise condo units making a high-rise condo somewhat of a commodity, this leaves a very viable option open in the townhome sector. With fewer units and better curb appeal to some buyers, townhomes offer an excellent pairing for those buyers with particular taste. If you’re looking at purchasing a Condo, it would be wise to entertain a townhome as an option for your first home, or even your next home.