Selling Your Home
There is a lot more than putting a For Sale sign up when trying to obtain the highest price possible for your home. Your Fredericton Military Relocation Realtor will become your business partner when selling one of your most valuable assets.
Pricing your Home
The Price must be right. This is where your Local Fredericton Real Estate expertise is so important. Military Personnel are typically on a very tight time line and pricing a home can create a stagnant listing. Price too low and your “Throwing away money“, let your Local Expert guide you to obtaining the Best Possible Price.
Spruce Up Your Home
Carefully inspect both the exterior and interior of home. Fix any minor problems and replace anything broken. Check plumbing, electrical, caulking, fixtures, lights, shingles, door and windows for any deficiencies. This will not only improve the looks of your home but also shorten the possible list of deficiencies identified by buyers home inspector. Updating outdated gold door knobs with newer knobs and changing some light fixtures can make a lot of difference in the presentation of a home.
Get Rid of Clutter
No one wants to live in a messy, cluttered house, so be sure to give your home a deep clean before inviting buyers in. Also, try to remove as many personal items, like trophies and picture frames. Doing so can make it easier for buyers to imagine themselves living in that home.
There is a lot of data that shows that having your home professionally staged leads to Faster Sales and Higher Selling Prices. Most professional Realtors will have a Home Stager and Professional Photographer as part of their team.
Estimate Your Closing Costs while budgeting for your next home purchase.
- Legal fees: Since a lawyer is a required part of your home-buying team, the work provided involves fees. Most legal fees include searching the title of the property ( Title Insurance ), arranging a property survey if necessary and handling other disbursements as required.
- Mortgage insurance and application fee: For any high ratio mortgage, which is any mortgage in which 75 % or more of the house’s purchase price is covered by the mortgage, the lender requires mortgage insurance.
- Mortgage broker’s fee: A mortgage broker may charge a fee to set up a mortgage for you. In some cases the fee may be included with the legal fees if your lawyer arranges the mortgage, or included in the lender’s fees if you deal directly with a lender such as a bank.
- Property insurance: This insurance covers the replacement value of your home and its contents. Most mortgage lenders will require proof that you have this insurance before processing a mortgage.
- Home Inspection: A professional home inspector knows what to look for and can confirm or add to the information you’ve gleaned from the REALTOR® or your inspection. Basic inspections on most houses are usually in the $150 to $300 range.
- Land transfer tax: Anyone buying property in Ontario must pay a land transfer tax. It usually runs between 0.5 to two per cent of the home’s purchase price, depending on that price.
- GST: GST is payable to some degree on the purchase price on all new homes, although partial rebates are available on the purchase of most homes. A resale residential home is usually exempt from GST. Various other closing fees, however, do involve payment of GST.
- Extra charges: You may also be required to pay the costs of such things as heating oil in the tank, or other costs incurred by the seller, but included with the house, prior to the closing day.
- Hook-ups: There may be hook-up charges required for appliances and services such as telephone, TV cable, hydro and other utilities.
- Moving costs: ( paid by Government) Don’t forget the basic costs involved in moving from your old place into your new home, particularly if you use a professional moving company.
- Military and RCMP personnel will have a all or part of some fees paid for, ie: Real Estate Fee, Home Inspection Fee etc.
A REALTOR® can explain further details on closing costs. Just remember to add them to your financial plan when saving to buy a home.
Real Estate Terms
These are the common terms used by Realtors, Lawyers and Mortgage Brokers.
Amortization: The number of years it will take to pay off the entire amount of a mortgage. In Ontario, most mortgages are amortized over 25 years.
Appraisal: An estimate of a property’s market value. This is used by lenders to determine the amount of your mortgage.
Assessment: The value of a property set by the local municipality. The assessment is used to calculate your property tax.
Assumable Mortgage: A mortgage held on a property by a seller that can be taken over by the buyer. The buyer then assumes responsibility for making payments. An assumable mortgage can make a property more attractive to potential buyers.
Blended Mortgage Payments: Equal or regular mortgage payments consisting of both a principal and an interest component.
Broker: A real estate professional licensed in Ontario to facilitate the sale, lease or exchange of a property.
Bridge Financing: Money borrowed against a homeowner’s equity in a property (usually for a short term) to help finance the purchase of another property or to make improvements to a property being sold.
Buy-down: A situation where the seller reduces the interest rate on a mortgage by paying the difference between the reduced rate and market rate directly to the lender. Or, the difference can be paid to the purchaser in one lump sum or monthly instalments. A buy-down can make a property more attractive to potential buyers.
Closed Mortgage: A mortgage that cannot be prepaid, renegotiated or refinanced during its term without significant penalties.
Conventional Mortgage: A first mortgage issued for up to 75 per cent of the property’s appraised value or purchase price, whichever is lower.
Debt Service Ratio: The percentage of a borrower’s gross income that can be used for housing costs (including mortgage payments and taxes). This is used to determine the amount of monthly mortgage payment the borrower can afford.
Easement: A legal right to use or cross (right of way) another person’s land for limited purpose. A utility’s right to run wires or lay pipe across a property is a common example.
Encroachment: An intrusion onto an adjoining property. A neighbour’s fence, shed or overhanging roof line that partially or fully intrudes onto your property are examples.
First Mortgage: The first security registered on a property. Additional mortgages secured against the property are termed ‘secondary’.
High-Ratio Mortgage: A mortgage for more than 75 per cent of a property’s appraised value or purchase price.
Listing Agreement: The contract between the listing broker and an owner, authorizing the REALTOR® to facilitate the sale or lease of a property.
Mortgage: A contract between a borrower and a lender where the borrower pledges a property as security to guarantee repayment of the mortgage debt.
Mortgage Term: The length of time a lender will loan mortgage funds to a borrower. Most terms run from six months to five years, after which the borrower will either pay off the balance or renegotiate the mortgage for another term. Payments are calculated using the interest rate offered for the term, the amount of the mortgage, and the amortization period.
Multiple Listing Service (MLS®): A comprehensive system for relaying information to REALTORS® about properties for sale.
Open Mortgage: A mortgage that can be prepaid or renegotiated at any time and in any amount without penalty.
Partially Open Mortgage: A mortgage that allows the borrower to pre-pay a specific portion of the mortgage principal at certain times with or without penalty.
REALTOR®: A trademarked name describing real estate professionals who are members of a local real estate board and the Canadian Real Estate Association.
Transfer Taxes: Payment to the provincial government for transferring property from the seller to the buyer.
Vendor Take-Back Mortgage: A situation where sellers use their equity in a property to provide some or all of the mortgage financing in order to sell the property.
Zoning Regulations: Strict guidelines set and enforced by municipal governments regulating how a property may or may not be used.
While there is no such thing as a Military Realtor, there are Approved Military Relocation Realtors by Brookfield. Brookfield is under contract with Canadian Government to manage Real Estate Relocation transactions for both the Military and RCMP.
IRP-DND.COM is Canada’s largest directory of Military Relocation Realtors who are all approved by GRS Brookfield. These Local Experts are the top agents in their area which allows you to find the right Realtor for whatever Base or City you are posted to.
Why Do Military Personnel Buy Homes?
For most Military Personnel buying a home is more than a preference; the long list of government relocation benefits cover many of the fees associated with buying and selling their home. With so many of the costs and risks offset by a relocation package, choosing to own instead of rent can be a practical opportunity to build wealth.
Relocation benefits for military families cover the cost of the majority of moving expenses, including fees for home inspections and appraisals, land transfer taxes, moving costs, real estate commissions, legal fees, and more. The package also includes repayment of penalties for breaking a mortgage and a cushion to offset potential losses up to $25,000 if forced to sell and relocate in an unfavorable real estate market.
As soon as your receive your Posting Message, its time to get planning. Getting Pre-Approved for a mortgage is almost a must when going on a House Hunting Trip. This will also allow you to budget for the maximum price you will be paying for your new home. Assessing your priorities with your Realtor is one your first goals. Contact one of our Local Experts who can start an action plan and start providing valuable information on homes that will meet all your families requirements.