With strong competition, you’ll want to stand out from other interested buyers and convince the seller to accept your offer. Consider these tips to help you make a confident and informed offer while avoiding some of the most common home buying pitfalls.

1. Check your emotions

Buying a home can be both exciting and stressful. And, after a long home search, it’s easy to overlook some red flags because you have fallen in love with a home that checks the boxes on your home wish list.  Remember to let your realtor guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.

2. Run the numbers - again

A pre-approval letter is a great tool to show the seller that you are a serious buyer, but that doesn’t mean you need to bid the entire amount you qualified for. Remember, the amount you are pre-approved for is simply the maximum amount your lender is willing to loan you, not necessarily how much you should spend.  Plus, if you go all-in on your first offer, you might lose room to negotiate if the seller responds with a counter offer.

The amount you borrow for a mortgage should depend on your comfort level given your unique financial situation. Talk with your lender to get a better understanding of how to budget for sustainable homeownership.

3. Come to a fair offer price

While you want the best deal, be careful about submitting a low-ball offer. If your offer is significantly lower than the home’s list price– particularly in a competitive market–  the seller may think you are not a serious buyer.

Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.

4. Put on your negotiating hat

After submitting your offer, the seller can accept, reject or counter your offer by requesting certain changes, such as a higher price or adjusted closing date. This is where negotiations come in.

Flexibility is key as you work with your agent through the negotiation process. Adjusting the closing date or accepting a higher price (within your budget) can help strengthen your offer and increase your chances of getting the home. Your agent will communicate between you and the seller to reach an agreement.

5. Remember contingencies

It’s recommended that you include contingencies with your offer, which are conditions that must be met before the purchase is finalized, to help avoid costly surprises down the road. For example, making your purchase contingent on a  home inspection and appraisal will ensure that the value of the home matches the sales price.

Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold "as-is", which means the seller won't pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can't afford to fix.

Finalizing your offer is one of the last steps before getting the keys to your new home. The home buying journey is different for everyone, so it’s important to do your homework and with your realtor throughout the process.

Making an Offer

When you’ve found a home that you’re interested in, it’s time to make an offer. As your buyer agent, we will draw up a contract with your offering price and necessary contingencies into a formal contract.

You will want to review this document carefully and make sure it states your terms exactly. If the offer is accepted by a seller, this contract will become a legally binding agreement.

In addition to an offer contract, you will need to provide an earnest deposit.

The deposit typically equals roughly 1-3% of the property purchase price. You will not be at risk of losing earnest money as long as you do not default on your contract. The amount will be credited towards the purchase price of the house at closing.

After you’ve made your offer, the seller will be able to:

• Accept your offer
• Reject your offer
• Counter your offer

In most cases, a seller will not accept your initial offer outright. Typical counter offers include modifications to:

• Purchase Price
• Closing date
• Possession date
• Inclusions

When you make an offer on a house, you should be prepared for the negotiations to go back and forth several times before both parties agree to the terms. You might also have to compete with other interested buyers in certain market conditions.

When an agreement is reached on all issues, and both the seller and the buyer have signed the offer, you are both under a legally binding contract.

As a buyer, you will be in a better negotiating position if:

• You have been pre-approved for a mortgage
• You are not selling a house at the same time
• You have not loaded your offer with other contingencies

Looking For More Space?

2020 has certainly made us aware of the home we live in.  Most families are spending much more time at home due to school closures and working from home.  Looks like some of these factors might become the new norm.  

Good time to consider a larger home.  Often we weigh this out with a renovation for additional space, but with building materials at an all-time high and interest rates at an all-time low, this problem needs careful thought on how to proceed.  If this is a question you have - call me to see if a move to a new home is your best move.  

Insured Mortgage Update!

CMHC rule change will affect home buyers and sellers
Canada Mortgage and Housing Corporation (CMHC) is tightening its rules to qualify for an insured mortgage. At least one applicant's credit scores will need to be 680, up from the previous minimum of 600. To ensure borrowers can keep up with payments, maximum total debt service ratios will be lowered from 44 to 42

The main changes to CMHC lending rules
Gross debt service (GDS) ratios must be under 35, down from 39.
Total debt service (TDS) ratios must be under 42, down from 44.
Borrower's credit score must be at least 680, up from 620.
Borrowed down payments will no longer be allowed.

On the heels of CMHC announcing it was changing some of its underwriting policies, Genworth, a private insurer has confirmed that it will NOT follow suit.  Genworth feels that measures that are already in place will keep them withing their risk tolerance.

GREAT NEWS!

For additional information about how this will affect you call me

I'll Know it When I See It!

Why Buyers Like Open Houses. 

Buyers like open houses because it gives them an opportunity to browse properties without engaging their Realtor.  Many buyers get their inspiration by seeing properties in person and open houses provide a great vehicle for this kind of buyer.  (this is the “ I’ll know it when I see it”  buyer)  Some buyers also prefer to direct their own search independent of a Realtor and engage a Realtor only at purchasing time.  Both of these buyer groups may “shop” casually for a property over an extended period of time but are still bonafide buyer prospects and a market segment not to be overlooked.  In many cases, open houses are the only way to attract these kinds of buyers.

Buyers get to see a number of properties casually and can get a good idea of market value over time thus doing vital research by educating themselves on the market and home features most of interest to them.

Some potential buyers do not want to bother their own Realtor until they are really serious about buying.  Others prefer not to have a commission driven professional trying to hasten their buying process.

Create Interest in an Empty Room.  

Trying To Sell A Vacant House?
Staging adds value to any home...But what if it's vacant? How do you attract attention to an empty room? Virtual Staging is used to show buyers online what the home could look like. It is designed to attract attention to your home to have a potential buyer come and look. 
Virtual Staging is a strong tool in my toolbox to Get Listed! Get Sold! Call me today to see if this can benefit selling your home.

Discover What Buyers Will Pay In Today's Market

3 Tips for Making Your Dream of Buying a Home Come True

#1   Automate Your Down Payment

       The Down payment is one of the biggest barriers to home ownership.  Jumpstart your savings by automatically having a small amount of your paycheck be transferred into a separate savings account or “house fund”

Down payment takes discipline & perseverance, but setting up automatic savings can make it easier.  If you never see the cash, you won’t spend it.

#2   Build Your Credit History and Keep it Clean

       When you apply for a mortgage, lenders will want to see that you have been able to pay off past debts.  This means staying on top of paying your student loans, credit cards, and car loans on time! 

Credit bureaus recommend using no more than 32% of the credit available to you.

#3 Practice Living on a Budget

      Downsizing your spending now will allow you to save more for a down payment and pay down other debts to improve your credit score.  “95% of first time home buyers are willing to make sacrifices to buy their home faster” 

The top 3 sacrifices are “New Clothes”  “New Car”  and “Traveling” 

• Setting up an automatic savings plan that saves a small amount of every check is one of the best ways to save without thinking too much about it.
• Living within a budget right now will help you save money for down payments while also paying down other debts that might be holding you back.
• What are you willing to cut back on to make your dreams of homeownership a reality?

Staying On Track When Buying A Home

Home Buying is such a confusing time, riddled with uncertainty and fear.  You are juggling so many interests.  So before you even begin your home search it's always best to have a clear goal in mind of what your deal breakers are and what you can live with.  Knowing your criteria in advance will help to make quick informed decisions and ensure you stay on track of your ultimate objective.

That’s where I can help!  After discussion about your wants and needs, I can help you stay on track.  It is so easy to get distracted by a beautifully staged home and choosing to pursue it when in reality it is not at all what you wanted.  Sometimes it is the best choice, but often we get so confused that we forget to focus in on our real needs. 

As a knowledgeable expert i can help you prepare the best deal, avoid delays and costly mistakes.  I subscribe to a strict code of ethics and can make a difference in your home buying experience. 

Objective Information And Opinions.  I can provide local information on utilities, zoning, schools, and more. I can often provide objective information about each property. I can provide data to help you determine if the property has what you need.

Negotiation Knowledge. There are many factors up for discussion in a deal. I will look at every angle from your perspective, including crafting a purchase agreement that allows you the flexibility you need to take that next step.

Up-To-Date Experience. Most people sell only a few homes in a lifetime, usually with quite a few years in between each sale. Even if you’ve done it before, laws and regulations change. I have handled hundreds of transactions over my career.

I Will Be Your Rock During Emotional Moments. A home is so much more than four walls and a roof. And for most people, property represents the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you.

Learn more by contacting Susan Kramm at Realty Executives Battlefords Today!

SusanKramm.com The Website That Offers More Local Information

With the cold weather upon us,  showing -33 this morning chances are good that home buyers will be drinking hot chocolate and not venturing out.  It leaves a perfect time to check out some changes I have made to my site SusanKramm.com.  The site shows all mls listings... Neighbourhood infomation, market reports, buyer and seller info and even open houses listed daily.  Hope you'll take the time to see if some of this additional information will help you with your realestate needs.  

New Dreams--New Goals--New BeginningsNew Dreams--New Goals--New Beginnings

Very excited to have 2019 starting.... I consider New Years as a new beginning... a chance to make changes... make new goals... and fulfil some new dreams...A new start.  

I have some really great ideas for the year on both a personal level and ways to help my friends and clients achieve their real estate dreams.  Happy New Year to All!  

What Do You Hate About Renting? 

Every year around this time, we take time to reflect and plan for next year. If you are renting your current home but have dreams of homeownership, your plan for the new year may include buying, and you wouldn’t be alone!

Everyone should realize that unless you are living somewhere rent-free, you are paying a mortgage – either yours or your landlord’s. Buying your own home provides you with a form of ‘forced savings’ that allows you to use your monthly housing costs to increase your family’s wealth.

Every month that you pay your mortgage, you are paying off a portion of the debt that you took on to purchase your home. Therefore, you own a little bit more of your home every month in the form of home equity. As your home’s value increases you also gain home equity.

Bottom Line is if you are one of the many renters who is fed up with rising rents but may be confused about what is required to buy in today’s market, contact Susan as I can help you on your path to homeownership.