Did You Know?
Q: Why should you buy a home vs. renting a home?
A: Continual rent increases, dealing with damage deposits, no economic security, no tax benefits and no price appreciation.
Q: How can a Realtor® help with your home sale?
A: Your home is your biggest asset. A Realtor® will help with steer you clear of the many pitfalls and most importantly, will save you time + money. Your Realtor® will:
- Help establish an agreeable & competitive price for your home.
- Establish a marketing strategy exposing your home to scores of potential buyers.
- Will advise you of your rights, responsibilities & obligations this saving you time.
- Is experienced with negotiation & will work to get you the best price available.
- Can recommend the best ways to improve your homes appeal.
Q: Can I view any listing, regardless of whose yard sign is out front?
A: Yes! Realtors® in Slave Lake all work co-operatively & we can show & sell any property no matter whose listing it is.
Q: How can I spruce up my home affordably to put it on the market.
A: There are many low-cost ways to make your home more inviting to a buyer...
- Buy a new doormat.
- Shovel walks/mow lawn, buy new pillows for the sofa.
- Empty laundry baskets.
- Put garbage out.
- Replace heavy curtains with blinds that let light in.
- Put out scented candles and or fresh flowers.
- Buy new towels for the kitchen & bathrooms.
- Be sure to put away kids toys and knickknacks' you have laying around.
- Be sure to put gardening tools/shovels out of sight.
Q: Why is knowing my credit rating important?
A: Lenders use credit rating info to verify your repayment history. A good credit rating can improve your ability to get loans & mortgages.
Q: What are closing costs?
A: These are costs that are to be paid upfront & are included in the mortgage on your down payment. They are things like the home inspection, property insurance, property tax adjustments, legal fees & moving costs. You need to be prepared for these costs so there are no surprises!
Q: Why do I need a home inspection?
A: Having a competent, licensed home inspector perform an inspection before you purchase gives you the security of knowing what to expect & helps you make an uniformed decisions about the value of the home and the costs of future keep up. If a major problem is discovered, you can bring it to the homeowners attention before waiving any conditions on your offer to purchase. Most Realtors® will tell you that hiring a home inspector to inspect the property you are interested in buying is one of the smartest things you can do!
Q: What is the benefit of getting pre-approved for a mortgage?
A: Getting pre approved for a mortgage lets you know how much of a mortgage you qualify for, it hold that rate for 120 days, speeds up the buying process once you find your new home.
Q:How much of a mortgage payment can I afford?
A: Generally banks allow you to use up to 32% of your monthly income towards a mortgage payments, property taxes, heating costs, and 40% of your monthly income towards mortgage payments, property taxes, heating costs along with any other debt payments, if applicable 1/2 of monthly condo fees would be included in the calculation.
Q: What is the minimum down payment needed to buy a home?
A: The minimum down payment requirement is generally 5% of the purchase price, however there are programs that allow you to put $0 down if you have excellent credit & job stability.
Q: Can I use gifted funds for a down payment?
A: Yes, gifted funds can be used providing they are a from an immediate family member. A gift letter will need to be signed by the donor confirming they do not have to be repaid in anyway.
Do you have a question about real estate you would like answered?
Call 780-805-3111 and one of our Realtors® would be happy to help you!
All Mortgage Information supplied by:
Kevin O. Waters
Manager, Residential Mortgages
cell: 780-893-3136 - Tel: 780-634-3470 - Fax: 780-669-7669
Toll Free: 1-866-924-2048 - Toll Free Fax: 1-866-924-2049
Understanding Real Estate Terminology
When you decide to buy a home, you'll probably discover a whole new language which is used to described the property, financing, legalities, and people involved in a home purchase. For your convienence, here's a list of the more common terminology used in real estate.
Agency: The legal realationship which exists between the client and the brokerage, the agent. The essence of the agency relationship is that the agent has the authority to represent the client in dealings with others. Agents are obligated to protect and promote the interests of their clients and also owe certain fiduciary duties to their clients.
Associate: A person who hold the qualifications of a associate (formerly "agent"), is licensed by the Real Estate Council Of Alberta and is employed by or associated with a licensed brokerage in Alberta. See also Realtor® below:
Amortization: The replacement of a debt over a period of time in a series of regular payments of principle and accrued interest.
Attached Good: An item that is attached to the real property so as to forma part of the land. Also know as a "fixture", it belongs tot he buyer, unless agreed in writing.
Broker: A person who holds the qualifications of a broker, is licensed by the Real Estate Council Of Alberta and is authorized to operate a brokerage and trade in real estate on behalf of that brokerage.
Brokerage: The body licenced by the Real Estate Council Of Alberta and authorized to trade in real estate in Alberta. The brokerage includes the broker and all associate brokers and agents registered to it.
Completion Day: The day the transaction ends and on which the buyer becomes the legal owner of the property (noted on the Purchase Contract)
Condition: Something that is demanded as an essential part of an agreement and has an end date that has to be unilaterly waived by the individuals\entities imposing that condition.
Consumer Agency: A situation that occurs when one brokerage (including the broker and all agents registered to it) represents both the seller and buyer with respects to the potential purchase of a property. Since the brokerage is working with both parties, it is necessary to limit the fiduciary duties owed to both clients. Consumer Agency must be acknowledgesdin writing by all the parties.
Easement: Grants a third party ther ight to enter into another person's property for a specified purpose.
Fiduciary Duties: The duties of loyalty, disclosure, confidentiallity, obedience, reasonale care and diligence and full accounting that are required by law of any agent to his/her client.
Latent Defects: Hidden defects that may have reasonably caused the buyer not to purchase the property if the defects has been made known.
Mortgage: An interest in land that is created by a contract as security for a loan made by the lender tot he borrower. There are several types of mortgages.
Multiple Listing Service® (MLS®): An cooperative listing system operated by a real estate board to relay information to REALTORS® and their clients about properties.
Offer: The purchase proce that the buyer suggests tot he seller that he/she would be willing to pay for a particular peice of proeprty. The seller may accept, reject or counter the buyer's offer.
Patent Deffect: Defects that should be obvious and visible tot he buyer when inspecting the property.
Qualifying: The provess of establishing the needs, wants, abilities and seriousness of the client. Ussually referred to as qualifying the buyer/seller.
Real Property: A combination of tangable and intangable elements. The tangible element is the real estate itself (physical, touchable land improvements). The intangible element is the real property rights which arise by reason of ownership of the property.
REALTOR®: A trademark used to identify professionally who are members of their local real estate board, the Alberta Real Estate Association and the Canadian Real Estate Board.
Unattached Good: Moveable personal property that goes with the seller (also known as a 'chattel').