Posted by Michelle Connell on May 6, 2016 in Real-estate | Comments Off on Selling a property – hidden costs
Every purchase or selling of property involves a list of things that still need to be done or be paid in order to complete the whole circle. This is just an initial part; it doesn’t matter whether you are buying or selling a house a transaction will occur there and depending on the value, the final payment may be bigger than the one you expected.
There are few things on which you need to pay attention and to be ready to resolve them on time.
Land transfer tax is one of the things and it varies from city to city and from state to state. It is basically calculated as a percentage of the property price and the formula is regulated by the province, city or the state.
Make sure that all adjustment costs are prepaid when you take over a property. These can involve a variety of utilities, such as water, gas, hydro, lawn care and others. They all should be set up for the moment when the house changes the owner and you as a buyer should be in a position to verify how much the previous owner owe or still owns a utility company.
Check mortgage cost, nowadays most banks don’t charge mortgage plan or any type or mortgage request. In some cases, if you are planning to borrow more than 80% of the home price you will need to seek a mortgage insurance, this insurance also applies to mortgages that are over 25 years. If you request a mortgage through a mortgage broker, you may have to pay a finder’s fee, but this doesn’t occur really often, only if you are considered as a highly risked mortgage then this may apply to you.
If you decide to use a mortgage, then mortgage company will require from you to have home insurance. At some point, you may become highly grateful if some major theft or fire occur. Depending on what insurance policy you choose, your costs may become bigger. Some companies will offer you discount if you decide to insure more than one property with them.
Every change of ownership requires legal help and involvement of a lawyer. You will need someone to prepare your legal documentation in order for purchase to continue. By the law, the maximum amount the lawyer can charge you is one percent of the price you paid for the property. Through this documentation the lawyer will carry out the search which involves the vendor and is he a legal owner of the property, did he pay the utilities, are there liens on the property and he will have to register new title and mortgage. If the property is rural, he will have to check the septic tank and water supplies.
Before you buy a house be prepared to invest some money in it, even it’s in the top shape. There are always hidden flaws which you can’t see. Maybe it is a good decision to hire a home inspection so that they can check the house instead of you. read more
Posted by Michelle Connell on May 6, 2016 in Real-estate | Comments Off on All information you should know about buying or selling real estate
The real estate market is slowly finding its way to normalcy and recovering from the crisis that occurred during the recent years, but still, many people are unsure whether they should buy or sell a property. Despite all problems that may come into your direction, you shouldn’t stay put because this is one of those moments where you need to take a chance.
For future owners who are looking to buy a house, now is an excellent time, because mortgage interest rates are low. This fact is especially beneficial for first-time buyers because financial experts predict the increase in interest rates in the following months.
If you are thinking about buying a house, then you must realize that location is one of the most important things. At some point size may become irrelevant, for example, if you buy a small house on a very good location, it would be much easier to sell it latter and for the good money, opposite to the house on the less preferred location, in this case, your money will be trapped. Good choice of property would be near universities or public transits.
House doesn’t have to be your first choice because condo can also be a good solution. If you are buying a condo as an investor, New York, NY real estate agent suggests that you should leave at least four to five year a property before you decide to sell it. Experts on condo market state that apartments will be on the price in the following years, so why not reap all the money that you can before the final selling.
Another important part of this whole process is your credit rating. The rookie mistake many home buyers make is that they assume they credit rating is in order. Don’t just assume, check your credit rating to avoid any unnecessary problems that may occur in the future. There are special facilities where you can perform this check.
Various mortgage lenders have different prices and conditions and you should meet at least few of them before you make a final decision. It is preferred to do this before you go on your house hunting. Knowing how big of an amount of money is at your disposal will significantly narrow your choice, you will have more time on looking and less time on wondering. The best advice would be to stick to your budget and to buy within.
Depending on what type of property you are looking for and whether you are single or you have a family, you will have to choose a house that suits your needs. If you need a bigger space and you are tight with the money, then downtown location won’t be for you, as we said previously, stick with the budget. You will have to widen your views, many young people and families choose properties that are little further from the city, but still affordable.
Real estate agent is a must, it’s important to find a good and trustworthy real estate agent because he will give you constructive advice and point you out in the right direction. read more