10 Worst First-Time Homebuyer Mistakes

10 WORST FIRST-TIME HOMEBUYER MISTAKES

Are you gearing up to buy your first place? Arm yourself with these tips to get the most out of your purchase and avoid making 10 of the most costly mistakes that could put a hold on that sold sign.

Not Knowing What You Can Afford
 What the banks says you can afford and what you know you can afford or are comfortable with paying are not necessarily the same. If you don’t already have a budget, make a list of all your monthly expenses (excluding rent). Subtract this total from your take-home pay and you’ll know how much you can spend on your new home each month.

Skipping Mortgage Qualification
What you think you can afford and what the bank is willing to lend you may not match up, so make sure to talk to your mortgage broker and get pre-approved for a loan before placing an offer on a home. Beware that even if you have been pre-approved for a mortgage, your loan can fall through at the last minute if you do something to alter your credit score, like finance a car purchase.

Failing to Consider Additional Expenses
Once you’re a homeowner, you’ll have additional expenses on top of your monthly payment. You’ll be responsible for paying property taxes, insuring your home against disasters and making any repairs the house needs. If you’re purchasing a condo, you’ll have to pay maintenance costs monthly regardless of whether anything needs fixing because you’ll be part of a building strata.

Being Too Picky
Go ahead and put everything you can think of on your new home wish list, but don’t be so inflexible that you end up continuing to rent for significantly longer than you really want to. First-time homebuyers often have to compromise on something because their funds are limited.

Lacking Vision
Even if you can’t afford to replace the hideous wallpaper in the bathroom now, it might be worth it to live with the ugliness for a while in exchange for getting into a house you can afford. If the home meets your needs in terms of the big things that are difficult to change, such as location and size, don’t let physical imperfections turn you away.

Being Swept Away
Minor upgrades and cosmetic fixes are inexpensive tricks that are a seller’s dream for playing on your emotions and eliciting a much higher price tag. If you’re on a budget, look for homes whose full potential have yet to be realized. First-time homebuyers should always look for a house they can add value to, as this ensures a bump in equity to help you up the property ladder.

Compromising on the Important Things
Don’t get a two-bedroom home when you know you’re planning to have kids and will want three bedrooms. Don’t make a compromise that will be a major strain.

Neglecting to Inspect
Before you close on the sale, you need to know what kind of shape the house is in. You don’t want to get stuck with a money pit or with the headache of performing a lot of unexpected repairs.

Not Choosing to Hire an Agent or Using the Seller's Agent
Once you're seriously shopping for a home, don't walk into an open house without having an agent. Agents are held to the ethical rule that they must act in both the seller and the buyer parties' best interests.

Not Thinking About the Future
It's impossible to perfectly predict the future of your chosen neighborhood, but paying attention to the information that is available to you now can help you avoid unpleasant surprises down the road.

Victoria Safe from "Bubble," Real Estate Board Says!!

The capital region is largely insulated from economic factors affecting housing in other parts of the country, says the head of the Victoria Real Estate Board, responding to a warning from economists that home prices are showing signs of a "classic bubble."



"The important thing to remember is that real estate is local," board president Dennis Fimrite said Monday. Not only has B.C.'s economy proven stronger than those elsewhere in Canada, the local market is bolstered by the limited amount of land for construction.



"If you look specifically at Victoria, we haven't seen any slowing of the economy here, although there's a little bit of government downsizing. There are still developers who are breaking ground on new projects."



Victoria's economy is protected because this is a retirement town, a government centre with a strong high-tech sector and an attractive place to live, he said.



A new report from Bank of America Merrill Lynch economists Ryan Bohren and Sheryl King said that in contrast to the U.S., Canadian home prices set new highs this year and are "now showing the signs of a classic bubble.



The report estimates the housing market nationwide is 10 per cent overvalued, adding the number would be higher if mortgage rates weren't at record lows. "Under more normalized interest rates, home prices would actually look 25 per cent over-valued based on current prices."



Although Canada is somewhat shielded from the fallout of Europe's debt crisis, it is not impregnable, they said. The housing market is one of the most vulnerable sectors in a weakening economic environment as Canadians head into 2012 holding record debt and the unemployment rate shows potential to rise.



Bohren and King expect housing prices will decrease by about five per cent as demand slows in the first half of next year, with prices flattening by the end of 2012 as economic activity picks up.



However, a grimmer scenario could see home prices slide by 10 per cent if unemployment rises above eight per cent and the S&P/TSX falls below 10,000, the report said.



Greater Victoria's employment rate of 6.1 per cent is better than that for Canada as a whole, at 7.4 per cent.



Last month, a total of 482 properties sold through the Victoria Real Estate Board's multiple listing service. The average price for a single-family house was $592,034 and the median was lower at $530,000. The average price of a condominium was $320,558 and the median was $296,000.

Casey Edge, executive officer with the Canadian Homebuilders Association's Victoria office, noted that Bohren and King singled out the condominium market as being vulnerable, specifically mentioning Toronto. "But if you look at B.C.'s overall housing starts for the year, condos are also driving the B.C. numbers, mostly coming from the Lower Mainland.

Single-family housing starts in most B.C. communities, including Vancouver, have seensignificantdeclines this year, said Edge, blaming the province's harmonized sales tax and transition back to the provincial sales tax. "As a result, single-family-housing starts are the lowest in 10 years."

By the end of the year, Edge expects between 616 and 626 new single-family homes will have been built in 2011 in Greater Victoria. Previously, the lowest number of starts was 629 in 2001, followed by 635 during the 2008-2009 global meltdown.

"The silver lining in this very dark cloud is a buyer's market has emerged," Edge said.

cjwilson@timescolonist.com

LAWLESS BROWN MORTGAGE TEAM at CityHub Victoria

LAWLESS BROWN MORTGAGE TEAM at CityHub Victoria:
Here to help you! The mortgage process can be stressful and overwhelming;
we've been there and that's why we are here for you!

LAWLESS BROWN MORTGAGE TEAM at CityHub Victoria

LAWLESS BROWN MORTGAGE TEAM at CityHub Victoria:
The mortgage process can be stressful and overwhelming; we've been there and that's why we are here for you!

3 Classic Mistakes Sellers Make when Staging a Home for Sale

Posted by Carole VanSickle on Tuesday, October 11th 2011

According to numerous surveys, potential buyers make critical judgments that determine whether or not they are going to purchase a home within just minutes of entering that home. Some research indicates that they make that decision within seconds of opening the front door! In order to maximize a property’s appeal, it is vitally important to enhance the advantage initiated with good “curb appeal” by staging the interior of the home as well. You have probably heard real estate agents talking about baking cookies to give a home a, well, “homey” feel, but baking alone does not stage a home adequately in today’s competitive market. In this report, we’ll review some of the “classic” mistakes that people make when staging a home and how to fix them for optimal buyer appeal.

Classic Mistake #1: Mistaking Clutter for Décor

You know that you’re supposed to remove your personal items from a staged home when possible to make it easier for buyers to imagine living there themselves. However, you also should stick to minimalism when it comes to “décor” items. The seller’s personal taste should be as little in evidence as possible, which means that not only should the million “Precious Moments” figures be packed away for the sales process, but excessive containers, sprays of dried flowers and even lighting should be removed. Does this mean that you should eliminate all lamps and flour canisters? Not at all! But it does mean that the five tiffany lamps could probably be thinned to one or two and outside of the classic “flour, sugar, coffee and tea” canisters, extra kitchen storage should be out of sight as well. When it doubt, pack it up! Your buyers want to see clean, clear surfaces that are open for their own personal decorative interpretations.

Classic Mistake #2: Out of Sight is Not Necessarily Out of Sight

When you consider purchasing or renting, do you simply walk through a property and then leave? No! You look around; you open closets and you peer inside cabinets to check out the storage options. And in today’s competitive market, storage is huge. So you need to stage the interior of your closets and cabinets the same way you stage the rest of the rooms in a home: with clean, clear lines and surfaces. If cabinets are full of dishes, that’s definitely life. But you want it to be very clear to buyers that they will have plenty of room for storage. Pack up extra dishes, seasonal items and any non-uniform glasses or storage containers so that your cupboards are neat and organized. Is this the way your buyer likely lives? Probably not. Is it how they wish their cupboards looked? Probably so. And giving them the cupboards, cabinets and closets of their dreams could be the thing that pushes a buyer toward your property and away from another one.

Classic Mistake #3: Small Repairs can be a Big Deal

While it may not be necessary for you to oil the hinges on the front gate in order to get a good price on your home, it could make a huge difference in how a would-be buyer perceives your property. Often, sellers are so consumed with major repairs on their homes that they forget the little things. And, unfortunately, it’s the little things that buyers tend to notice. Hit all hinges with a little WD-40 and if you have cracks in the wall, dripping faucets or burnt-out light bulbs in the bathroom vanity, take a few minutes – or even a few hours – to address these tiny cosmetic details before a buyer comes to view your home. It will make the property more inviting and can even make bigger issues like the fact that you couldn’t afford to paint this year seem like something easily-remedied because the buyer has already started to imagine living there.

Staging is definitely a delicate “science,” and there are a lot of schools of thought out there on how to get the most out of your home when it comes to presenting it to buyers. Generally speaking, “less is more” in nearly all staging decisions, so if you opt not to hire a staging professional, just go with your gut when it comes to removing items from the general viewing area and not your emotional attachment to an item. Remember, you get to take that item with you, so if it attracts you personally rather than contributing to the look of a room you are better off removing it so that your buyer can better imagine themselves in that setting.

Thank you for reading this article in the Bryan Ellis Real Estate Letter’s Educational and Training Series.

lawlessbrown.com

No rate hikes until 2013: BMO

·· By Eric Lam, Financial Post

BMO Capital Markets pushed its rate hikes forecast back to 2013 on Tuesday, citing continued serious economic risks both home and abroad.

The new forecast pushes the expected time frame for the Bank of Canada to raise its benchmark interest rates back from previous expectations of the second half of 2012.

As recently as this spring, economists had been speculating about a rate hike before the end of 2011, but the market turmoil of the past few months sparked by the eurozone debt crisis has changed all that.

"As global economic risks have escalated, casting commodity prices and the Canadian dollar much weaker, the Bank of Canada's diminishing tightening bias has probably diminished further," Michael Gregory, senior economist with BMO Capital Markets, said in a report.

Mr. Gregory noted that the market has now actually swung all the way into cut territory pricing in two 25-basis point rate cuts by April 2012. But with inflation slightly below target, a weak loonie and credit markets still functioning, movement in either direction is unlikely.

"The policy easing bar remains high. Short of signs of imminent recession, the bank should remain on hold," he said.

Mr. Gregory also forecasts the loonie to tumble further, down to US93¢ before recovering to parity by 2013.

Read more: http://www.ottawacitizen.com/business/fp/rate+hikes+until+2013/5500200/story.html#ixzz1ZuLldhA5

lawlessbrown.com

It’s Time to Think About Winterizing Your Ride

          Driving in the colder months will require you pay attention to a few things on your car. Winterizing your car is important if you want it to continue to be reliable.

Get a Good Tune up    

(we can help you with this)
           

Nothing is worse than breaking down in the dead of winter. Instead of chancing this, have your vehicle looked over and tuned up. Check for cracked hoses, dry belts, water pumps, spark plugs, and the battery. If any of this needs to be replaced do this before the cold weather rolls in.

Check the Cooling System   

Antifreeze will protect your car in extreme temperatures. It's not a bad idea to flush the system and start new before winter comes. While this isn't necessary, it's going to save you from a frozen engine block. At the very least, check the levels and make sure the system isn't leaking.

Replace Wiper Blades  

 Have you ever tried to drive in freezing rain or snow with worn down wiper blades? No fun! Wiper blades are inexpensive and there is no reason to not have them replaced before cold weather sets in. Also be sure to turn the blades off before stopping your car. If they end up freezing to the window while the car is parked you can burn the motor out when you turn the car back on.

Keep your Gas Tank Full 

Keeping your tank full during the winter serves a few purposes. First, keeping a full tank will allow you to start up the car more easily on very cold mornings. Secondly, if you do happen to break down or get stuck you will have fuel to keep the engine idling and keep you warm while you await rescue.

Test your Rear Defroster    

Driving with an icy rear window isdangerous.. Be sure your defroster is working before you need it. Also keep a good ice scraper handy for the other windows.

Understand Your Car   

It should go without saying, but many people drive around not knowing if they have front wheel or rear wheel drive. In the winter, this is pretty important to know. You should also know if you have anti lock brakes, traction control, stability control, and other features that may change the characteristics of your car while driving on ice or snow.

If you have any questions, come in and chat or give us a call.  We also answer Facebook and email.

Cheers

Chris and Blaine

5252 Motorsports

Where Torque and Horsepower Meet