Mortgage Qualifier Tool - Canada.ca

Mortgage Qualifier Tool - Canada.ca The information is provided by the Canada.ca website. It should be used only as a tool. Please check with your mortgage lender/bank for the most up-to-date information.

What Happens When You Go To Purchase A Foreclosure Property?

You see a foreclosure property on the market. Should you go for it? Perhaps you can get a deal on it. Before you take the plunge, here are a few things to consider. First of all, you are purchasing the property in "as is where is" condition. What does this mean? It means that the seller (usually the bank or mortgage company) does not warranty any information about the property. They have never lived there. Representatives of the bank may have never even seen the property in person. They do not usually know the history of the property, such as any leaks in the basement, structural issues, or whatever. When you look at purchasing a foreclosure property, you will be getting it in the same shape that you look at it. The seller is not going to fix it up for you. For example, the seller is not going to fix the roof, or repair a leaky faucet. This is why you should get a property inspection. At least this way, you will have an independent professional inspect the property and point out any defects that you may, or may not, have seen. Also, the seller will not be providing you a real property report. Remember those from a previous post? This is a survey of the lot, which shows the permanent structures and how they are situated in accordance to the property lines. If you are getting a mortgage to purchase a foreclosure property, you will be on the hook for getting a new RPR, as your lender will most likely want one. The risk is on the buyer, for pretty much everything. This may put some people off, but for others, purchasing a foreclosure property may end up being a great investment. If you get the property for a decent price, and can fix it up yourself (some people may leave the property in good condition, while others are usually leaving in not very good circumstances and may leave a mess and damage the property), you may have just made one of the best investments of your life. Just do your homework ahead of time. Do your due diligence during the buying process. Talk to the neighbours. Some may have some wild stories about the property (take them with a grain of salt!), while others may tell you that the previous owners took good care of the property, and just fell on hard times. Talk to the local municipality representatives, such as the town office, or city hall, to see if they have any history of the property. Talk to your real estate agent. Get as much history as possible about the property. Once you have done all that, then you should have enough ammunition to decide on whether the foreclosure property is right for you, or not.

We have more supply than demand

According the the Calgary Real Estate Board stats, the Vulcan region had seven sales report in July, while there were sixteen new listings. We have over 13 months of supply on the market for residential properties. Average days on market is 100. What does this mean? As a buyer, you have little pressure to purchase right away. You can take your time in making a decision to purchase. As a seller, you have lots of competition. What is going to make a buyer choose your place over the others? Price and curb appeal are two big factors. Taking a quote from the August 1, 2018 article from CREB link, "the Bank of Canada raised rates again in July. Rising costs, combined with a slow recovery, are weighing on the demand for resale homes in the city. At the same time supply remains high and is resulting in an oversupplied market.” That is based on what is happening in the Calgary market. We can apply some of this to our local market. This spring we had a lower than average inventory of properties on the market, and now we have above average. Good for buyers, while a challenge for sellers.

Coffee Shop Talk Pricing

I had a person catch me at the post offer the other day, letting me know his thoughts on the local real estate market. He explained to me how properties in Vulcan are being priced like properties in Calgary and that this is hurting our local real estate market. In particular, there is a lot that he would like to purchase, but it is priced like a lot in Calgary. I asked him what he is basing his information on, what is he comparing his pricing to. He could not give me details but insisted that the lot was based on Calgary prices and not Vulcan prices. I told him that the lot across the street from the one he was referencing sold for $38,000, and it is half the size of the lot that he wanted. We based that on the price that we listed at. Plus, the lot this "over priced" lot has a garage on it. He let me know that because of pricing to the Calgary market, house sales in Vulcan are suffering because of it, and that is why houses in Vulcan are not selling. We left it at that, and wished each other a good day. This is not unfamiliar territory for a real estate agent. Many of life's problems, including the local real estate market, as discussed and many of these are "resolved" if only people would listen to those who speak the loudest at the table. "Prices are too high." "What is that stupid, greedy, money hungry, real estate agent thinking?" Oh, except when those people are trying to sell their property. It can make a whole lot of difference if you are on the selling side of the fence, or the buying side. Then you can have a stupid, lazy real estate agent who has not shown your "exceptional" property that is priced higher than the others because you have done so much work to it, and it is way better than the one down the street that just sold for much less than what you have yours listed for. If you really want to know what is going on in your local market, check with your local real estate professional and discuss it. Check with your local mortgage broker. Check with your local real estate board. Get the facts, and you will have the tools to make a more informed decision for whatever you are doing. Period.

Inventory is Picking Up

Remember not that long ago when I said that I thought the warm weather would bring an increase in activity? Well, not to brag, but I may actually be right this time. Our overall residential market inventory has increased. We have seen some places that were taken off the market last fall, come back on. There are some potential sellers who have been patiently waiting for the right time to sell, and they seem to be ready to make a move. We have also seen a couple of places that had offers on them last fall, finally sell this spring, for a price which was close to the same as they were offered last fall. I guess hind site is 20/20. I guess sometimes sellers have to figure out whether it is worth it to sit on a property for a while, paying the utilities and taxes, putting your life on hold, in exchange for the hope of a few more thousand dollars.

State of Emergency for Vulcan County

There is a state of emergency in place for Vulcan County. For more information, please visit the Vulcan County website at: www.vulcancounty.ab.ca. There has been overland flooding due to high amounts of snow melt and some roads have washout areas.

Another Slow Start for the Market This Year

According to the Alberta Land Titles Registry, there was one single-family residential sale in January, and one in February. March saw things pick up a little bit. The longer than average "winter", with above average snowfall and colder temperatures, has had a negative effect on the real estate market throughout much of Alberta, a market which already was experiencing a weakening trend. However, with the blips of warmer weather we saw an increase in activity. So, I am hoping that once this crazy weather smartens up we will see a busier marketplace. People are wanting to get outside, make some changes, stretch their legs and do something! The weather has set many projects back a bit, including farming, so when it does dry up enough to move, you can bet that people will be hitting the ground running.