Across Canada, housing markets are very robust with demand outstripping supply in most areas. Here are our top tips to compete in a Hot Market.
- Understand exactly what you can afford! Make sure you file your income taxes ASAP. Your mortgage broker or banker will want to see 2 years of tax returns and the Notice of Assessment showing you don’t have any outstanding taxes due.
- Get an up-to-date pre-approval for a mortgage. The rate is usually held for 90 days, this is the time frame in which you must purchase a home and close on it for the rate to be honoured by the lender.
- If you have a home to sell, and you also want to buy, it is important you know if your mortgage can be transferred to a new property and if there are any costs for doing so. You will need to know the amount owing, realtor fees for selling and moving costs. Finally, you need to know what equity you have available to use for your next home. This is called a Sellers Net Sheet and using a spreadsheet program can really help.
- You should BUY FIRST in a hot market, and look at price points 10-15% below what your top end is so you have room to compete in negotiations.
- Work with Realtors who understand the Buy-Sell transaction strategy and will help you prepare your home to sell, while you are in the process of looking for homes to buy. Make sure your home is list ready before you start looking to buy, and always confirm with your lender that you can make an offer without a subject to sale clause.
Shelly Smee, Integrity Real Estate Group, http://www.integritygrp.ca