Properties in Edmonton showing "Pending"
What does pending mean?
There recently was changes to Realtor.ca when a seller accept an offer. A pending property means that the seller has accepted a conditional offer. This does not mean it is sold. It is subject to conditions, usually finacning and inspection.
Can I still see a pending property?
Yes and no. This depends on the seller. The Seller makes the desicion whether or not they still want thier property shown. Personally, if I was selling my house, I would encourage showings during the pernding time frame due to the fact, that a large number of pending properties fall apart due to varies reasons.
Can I still to write an offer on the pending property?
Yes. You can still write offers on pending properties. If the seller accepts your offer in the province of Alberta is goes into second place and awaits the time frame pending status of the first offer. Your accepted offer to purchase is known as a "back-up" offer.
If you would like to write a back up or have other questions reguarding pending offers, contact us anytime!
Pros and Cons of Different Property Ownerships
Before buying a home, it’s important to consider what type of lifestyle you live. If you travel a lot, a house may not be the best choice. No matter what type of home you choose, there are advantages and disadvantages of all types and styles. It makes sense to review all the pros and cons of home you're looking for.
Advantages Of Buying Single Family Home:
- Investing in a tangible asset
- Building equity as you pay down your mortgage.
- Greater privacy and an option to renovate it to your personal style
- Stable monthly payments on a fixed mortgage mean you’ll pay the same monthly amount until the end of your mortgage term
Disadvantages of Single Family Ownership:
- Upfront closing costs (usually 1-2% of the total purchase price)
- It will be more difficult to accept an attractive job offer requiring you to pick up and move to another city.
- Maintenance costs are yours and over time, something will need to be replaced from a leaking faucet to new shingles
Advantages of owning a Condomium:
- Condo fees usually cover exterior maintanance cost
- Easier Upkeep
- Condo fees usually cover the cost of heat & water and sometimes electricity and cable costs
- Shared common area (Anywhere from shared road ways to a community pool)
- Communal living (you are part owners of a greater area and may even become part of the managment board)
Disadvantages of Condomium Ownership:
- Condo fees (In addition to your mogtgage you must pay monthly condo fees)
- Less Privacy (Depending on the style most Condos Share at least one wall with thier nieghbor)
- Restrictions (Depending on the Condo there may be restrictions such as noise, odor, pets, ect)
Depending on the type of property you choose to purchase there are also pros and cons:
- Freedom to do what you want from demolishing the house to adding additional rooms, gardens, garage or basement suites for residual income.
- Even if the value of the structure itself depreciates, the land on which it sits can become more valuable
- Backyard BBQs & entertaining outdoors
- You are responsible for all maintenance
- Semi-private yards
- If there is a major upgrade, the cost is sharded by each unit
- Your own parking spot/garage
- You can change anything in the interior of the home from kitchens to fresh paint
- Your neighbour can keep an eye on your property while you are away
- There will be a monthly condo fee
- You are responsible for maintaining the interior of the property
- You are living close to your neighbour
- Condo fees can increase
- Condo fees usually cover the cost of heat & water and sometimes electricity and cable costs
- No exterior yard work
- Less cost to homeownership
- Less privacy. Your neighbours will know when you come home and when you leave.
- There may be rules on the type of flooring you are allowed to put in your property
- Must abide by all bylaws
- Pet restrictions
- Condo fees can increase
- Alberta new home warranty
- You will be the first person to live there
- Everything is fresh
- New appliances
- The cost of new builds is higher than resale.
- Added GST (usually already hidden in the price)
- If there is an issue, you will need to deal with the builder
- You will be responsible for adding fences and completing landscaping
- The cost of finishing a basement
- Annual HOA Fees
- New builds are on the rise due to a higher lumber cost
If you have questions about buying a home in Edmonton or the surrounding area, we are here to help. Contact us today!
Living in an Edmonton Energy Efficient Homes
What is a Net Zero Home
Net Zero Homes produce as much clean energy as they consume. They are up to 80% more energy-efficient than typical homes and use renewable energy systems to produce the remaining energy they need. Every part of the house works together to provide consistent temperatures throughout, prevent drafts, and filter indoor air to reduce dust and allergens. The result: exceptional energy performance and the ultimate in comfort – a home at the forefront of sustainability. It all adds up to a better living experience.
Why choose a Net Zero Home?
With a Net Zero Home, your utility bills will fall to an all-time low and stay low all year round, protects you from future increases in energy prices, and over time, that could be a very big deal. Net Zero Homes are built to higher standards than conventional new homes with high performance, warm windows, and better-insulated walls and roofs. Net Zero Home produces as much energy as it consumes and is up to 80% more energy-efficient than a home built to conventional standards with a built-in filtered fresh air system that reduces allergens and asthma triggers, such as dust, pollen, and outdoor air pollution.
Parts of a Net Zero Home
- If you improve your home’s overall lighting by installing larger windows and skylights, getting rid of the heavy drapes or curtains altogether, and painting the interior with brighter colors, it will make your home brighter and reduce the need of using electrical bulbs.
Types of Windows
- Most of the heat loss in a building escapes through the windows. With this in mind, good windows are critical in a Net Zero Energy home. Triple pane windows with a Low-E film, Argon insulating gas, and insulating spacers between panes are a good choice. In a northern climate, the glazing should be optimized to encourage solar energy to flow into the home while insulating to reduce heat loss to the outdoors. High-quality frames with certified sealing systems are recommended.
- Solar-electric systems use photovoltaic modules to generate electricity. The arrays can be grid-tied, meaning that the home will provide energy to the electrical grid during the day, while drawing from the electrical grid during the evenings or when the home needs more energy than can be generated. These Solar photovoltaic systems can also be connected to batteries to store excess energy. This opens up the opportunity to disconnect from the electric grid and eliminates the costs of line service charges from utility companies.
- South-facing windows allow more energy from the sun to be absorbed by the thermal mass of the concrete floor. This thermal mass gathers the heat energy in the daytime, releasing it in the nighttime hours. South-facing backyards in Edmonton have always been a hot item, now they are in more of a demand with Net Zero Energy homes.
- There are several insulation products used to insulate the Net Zero Energy homes. A few of them are the expanded polystyrene which is often used under the concrete floor in the basement. A combination of insulation materials contributes to a well-insulated Net Zero Energy home. Some of these materials are wall-time spray foam, compressed cellulose which is made predominantly from post-consumer recycled paper, and glass fiber batt insulation.
- Geothermal heating is a Ground Source Heat Pump or a GSHP and requires a higher initial investment, but with proper engineering and the right soil conditions, it can run at approximately 250% efficiency leading to long-term energy savings.
Air Source Heat Pump
- An air-source heat pump is a heating option used in Net Zero Energy homes which are designed for cold weather climates like here in Edmonton Alberta. Efficiencies range from 100%-400% depending on the outdoor temperature. The Belgravia Green home in Edmonton is an example of a Net Zero Energy home heated by an air source heat pump.
- High efficient heat recovery ventilators or HRV are also very important in a Net Zero Energy home that uses low electricity due to its commutated motors. These units provide fresh air by exchanging stale indoor air with fresh outdoor air. This allows the home to be both extremely energy efficient and a healthy environment.
- Replace household appliances that can drain a lot of power by choosing energy-star-rated ones, replace water wasters with low flush toilets and low flow showerheads & faucets and replace bulbs with energy-efficient bulbs.
Where to find an energy-efficient home in Edmonton
Most new builds in Edmonton are now energy-efficient homes which have arose from high demand in our city. The Blatchford community is an up-and-coming community near the downtown core that focuses on the environment and saving our natural resources. There are also several homes in both the University and Bonnie Doon areas where special attention has been given to mature houses making these homes net zero properties.
If you own a net-zero or energy-efficient home in Edmonton and would like to sell, please contact us. We have buyers waiting for houses like yours.
What Happens if Your Home Closing is Delayed?
The majority of closings happen on time or within a few days if issues need to be addressed. If closing is not completed, and buyers can be left homeless. This is a terrifying thought, however, it does happen. Below are five reasons which can lead to a delayed or canceled possession date.
REASON ONE: UNREALISTIC CLOSING DATE
Don't expect to write an offer and be in your home the next day. It takes time for lawyers in Alberta to clear and transfer the title to you. The actual registration process can take a day or two or a few weeks depending on how busy the Land Title Office is and the transfer of land process takes about 3-7 days. An experienced real estate agent will know whether the contract dates are realistic or not.
REASON TWO: REAL ESTATE APPRAISAL ISSUES
When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal. A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage. It is normally completed prior to a buyer removing the finance condition. If the property does not appraise out, the bank will not forward the mortgage.
REASON THREE: TITLE PROBLEMS
Your Realtor should be doing their due diligence by pulling the title prior to you writing the offer. However, between the time you have satisfied and removed conditions, it has been known to have items placed on the title. These items can include a second or third mortgage, a lien from a collection agency, or a lis pendens. (A Lis pendens is the Latin term for a Notice of Pendency of Action. It means that a lawsuit is pending against the title of a property. The lis pendens is a public notice letting buyers know there is a dispute over the ownership of the property and is commonly used in divorce situations).
REASON THREE: REAL PROPERTY REPORTS
Another task that a real estate attorney will perform is a review of an instrument survey or real property report (RPR). An RPR can be defined simply as a drawing of the land a home is situated on. Real estate closings can be delayed in the event there is a discrepancy in line encroachments such as a neighbor's fence or there is an addition added to the property such as a deck or storage shed without compliance.
REASON FOUR: YOUR BANK DID A SECOND CHECK
When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right? In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute or a buyer has made a large purchase and their debt ratio qualifying has changed.
REASON FIVE: TERMS OF SALE
There are many reasons why home buyers have home inspections to ensure the property they are purchasing doesn’t have any major deficiencies that can cost a large amount of money in the future. After a home inspection is completed, the buyer can request repairs be completed at the seller's cost. If a seller agrees to make repairs, it’s important that these repairs are done prior to the buyer moving into the new home. These terms can range from the replacement of shingles to picking up dog feces.
THERE ARE STEPS YOU CAN TAKE TO MINIMIZE THIS RISK BEFORE REMOVING YOUR CONDITIONS
In the province of Alberta, the real estate contracts which Realtors use have several safeguard clauses for both the buyer and the seller. In lament terms - If a delay is caused due to the fault of a seller, the seller is responsible for compensating the buyer. This can include all costs accrued until the property has been transferred. Some of these costs can include, interest rates, storage, hotel rooms, and meals. The real estate contracts also work in favor of the seller and if for any reason, the buyer has delayed the closing, the buyer will be liable for compensating the seller.
- Ask for a copy of the real property report. The seller should have this in their possession within 10 days of putting the property on the market.
- Have your financial institution send you documentation that all financing requirements have been met
- Don't make any big purchases
- Ensure you have the dower signed if needed. This is a standard document Edmonton RE/MAX Agents use often.
- Complete a walk through prior to possession when required
- Ensure all paperwork including addendums are at your lawyer's office (With Remax Elite, we have a complete conveyancing department to ensure, there are no delays and help make the real estate sale process seem seamless.
- If you have questions about buying a home in Edmonton or the surrounding area, we are here to help. Contact us today!
Zero lot line homes mean zero compromise on square footage, design and location
Edmonton homebuyers are moving up to larger, single-family homes for less by building zero lot line homes.
Happy Planet Zero Lot Line, Rear Attached Garage Home in Arbours of Keswick. PHOTO BY ROHIT LAND DEVELOPMENT
Edmonton homebuyers are moving up to larger, single-family homes for less by building zero lot line homes.
A zero lot line option means zero compromises on the square footage and style of the home and significant benefits in price and lifestyle. It can also put living in a popular Southwest Edmonton Community, like Arbours of Keswick and Ridgecrest at Glenridding Ravine, within reach for most buyers.
“The difference between a zero lot line and a standard lot is how the house is positioned. It’s the same house when compared to other front-attached or rear-detached homes in the area,” says Doug VandenBrink, senior project manager for Rohit Land Development.
A typical home has a four-foot yard on each side. A zero lot line home is right on the property line on one side, with a five-foot side yard on the other. That three-foot net difference means the home takes up less land, saving the buyer thousands of dollars on the price of the lot.
This article is Sponsored by Rohit Land Development
Currently, we have several zero lot line new homes for sale in our city and they are selling fast! To view these great properties - start your online Edmonton house hunting in Keswick and Glenridding.
Did your Home Get Stigmatized?
In real estate, a stigmatized property is a property that buyers may shun for various reasons other than its physical condition or features. These reasons can include the death of someone who was occupying the home to a murder that has taken place inside the property. Some buyers believe the house may now be haunted.
When a death occurs inside a home, it may not always be disclosed to a buyer. Although when there has been a murder, it is usually public information and can be found on the net. According to the Real Estate Council of Alberta, a murder on the property does not need to be disclosed.
Many jurisdictions recognize several forms of stigmatized property and have passed resolutions or statutes to deal with them. One issue that separates them is disclosure. Depending on the jurisdiction of the house, the seller may not be required to disclose the full facts.
When a home is considered a stigmatized property, the selling value may be decreased to attract more buyers. These houses are priced accordingly and purchasing one for a lesser real estate cost, financially benefit the buyers.
Types of stigma may include houses formally used in a crime, such as a drug house or brothel. Foreclosures where debt collectors are unaware that a debtor has moved out of a residence and may continue their pursuit at the same location.
The wrong starting price can also stigmatize a property when selling your Edmonton home. When a residential dwelling sits on the market for long periods of time, buyers assume there is something wrong with it. Learn how to price your Edmonton home properly from the start. Contact us today to receive a free in-home pricing evaluation.
What classifies as a luxury Edmonton home?
Luxury home prices vary from city to province to state to country. What classifies a home in the luxury market consists of a few variables. Luxury homes are no longer based on price alone. To classify property into the luxury home category, it mush have desired indulgences. A home can be considered "a luxury property" when it offers these features:
- A grand foyer with soaring ceilings to greet your guests.
- Adequate nanny/guest living quarters which are private and away from the main living area.
- Personal conveniences and amenities such as pools, in-home gyms, Imax movie theatres, arcade rooms, wine cellars, decontamination showers, backyard tennis courts, solarium, and game rooms. There are several homes in Edmonton with personal amenities which can be found in Cameron Heights and Glenora.
- State of the art kitchens. With duel ovens, smart refrigerators to keep track of your food items, wine storage, ample counter space, built-in computer screens.
- Technology. Homes controlled with voice activation or the touch of a bottom from anywhere in the world are now one of the must-haves with elite buyers.
- Privacy. Many elite home buyers require privacy, especially media icons who get accosted by paparazzi.
- A prime location. A view is one of the things that make homes fall into the luxury category no matter where you live. It can be an unobstructed view of a mountain, beachfront, or overlooking the sparkling lights of the city. Beachfront properties in Edmonton can be found in Summerside.
- Premier quality, reputable builders and renowned architect. The construction materials, lighting, finishes, appliances, and design all must be a cut above what's considered standard. Dominate renowned Edmonton communities include Griesbach and Windermere.
A luxury home can mean different things to different people. Bottom line, a luxury home is where you can relax and retreat from the rest of the world, enjoying a dwelling that fits your lifestyle. View our Edmonton luxury homes for sale by the district.
How Do Edmonton Realtors Earn their Commissions?
In the life of a real estate agent, there is much more than showing homes, meeting with potential buyers and sellers and receiving a commission. There is plenty that happens behind the scenes. Being a REALTOR® is extremely time-consuming.
If you have ever tried to buy or sell a house on your own, you may have an idea of how hard real estate agents work. Imagine if you were selling more than one house at a time. A good Edmonton real estate agent will make the process of buying or selling a home flow smoothly, leaving the impression that their job is fairly simple. The fact is, this is not at all what really happens. If you have spent social time with a REALTOR®, you may understand how difficult their job actually is.
There are definitely REALTORS® out there who cut corners, do not take care of their clients well, and they should not define or be in our industry. The real estate industry is also loaded with competent professionals with whom I am proud to work with.
Below is a list of common activities REALTORS® perform on a daily basis:
Schedule Property Showings
Scheduling showings require contacting the listing agent who will inform their seller they have a showing in order for the seller to vacate the premises prior to the availability of the buyer and the buyers real estate agent. It also gives the showing agent an opportunity to find out any relevant information related to the property. All showings must be time blocked which most agents have down to an art form, so we are not early or running behind with our buyers.
Schedule and Prep For Listing Appointments
Once a listing appoint has been scheduled, REALTORS® work behind the scene gathering all pertinent information about the property including the property history, information about the community, current real estate statistics, establish the absorption rate, acquire the title of the property which will show applicable encumbrances such as easements, liens, or covenants, and confirm the registered owners, and comprise a comparative market analysis. The agent will pre-fill paperwork, double-checking everything is correct in order to save time while on the listing appointment. The agent will gather all necessary real estates tools such as yard signs, the CMA and key boxes.
A REALTOR® usually attends the property inspections with or in place of the agents' buyer, unless agreed upon by the seller. A property inspection normally takes a few hours. In the event there are any concerns with the inspection, it can take several hours to days to come to an agreement that both the buyer and the seller are comfortable with prior to removing and contingencies are conditions.
Delivery of Deposits
Once an offer has been agreed upon, time is crucial in the deliverance of the deposit. A late deposit can result in the agreement becoming voided and the buyer losing their dream home.
REALTORS® are held by a high code of conduct and ethics and no matter how much you may disagree with the opposing REALTORS®, negotiations must be dealt with in a professional manner while working in the best interest of the client. There is much more to offer and counter-offer negotiations than just the price of a property. Negotiations also include terms, possession, conditions and sometimes contingencies. Parties involved in the negotiations can also include lawyers, mom and dad, someone with power of attorney on behalf of a client or the "handyman special" uncle.
REALTORS® have trail and trails of paperwork. Each change on an agreement, amendment or addendum must be documented and kept for at least six years. Agents must ensure everyone involved in the transaction has a copy of each document change including the buyer, the seller, both real estate agents, the financial institution, both real estate offices, both lawyers representing the buyer and seller.
Follow-Ups & Inquiries
A good real estate agent will follow up on email, texts and missed calls in a timely manner. REALTORS® can easily receive dozens of emails every day and it is so important not to get sidetracked with the unnecessary emails which can gobble up an agents valuable time.
Closings require toe follow-ups with lawyers to ensure they have all the necessary documents including any recent amendments, walk-through with builders and buyers prior to the closing date and making arrangements for keys once the title has been transferred. And of course,e re-arranging the real estate agents schedule to accommodate the meeting time with the buyer.
Other Related Services
Meet up with other real estate affiliates which help listed properties sell such as a professional photographer, mandatory measuring company employees, home stagers, putting up signage, open houses, or helping a client get their property ready to be shown. Other meetings may including attending financial institutions with a client if needed, property inspections, verify completion of repairs, and other closing related meetings.
After scheduling showings, a real estate agent needs to accommodate the time set aside to show their buyer the homes without them feeling rushed. This may be one or two properties or may consist of a complete day or a few days such as a house hunting trip - HHT.
Attend Listing Appointments
A professional REALTORS® attends all listing appointments as though it is a job interview because that is exactly what it is. The seller is interviewing the real estate agent and the agent is interviewing the seller. Prior to the listing appointment, an agent should be prepared for any questions or concerns a seller may have as well as have all necessary tools needed, should a seller be in a position to list the property. Each listing appointments should take an hour or two - sometimes more depending on how much information is presented to the seller or how many concerns they may have.
Keeping Clients Updated
This can include and newly listed homes which may be a hot commodity and must be shown immediately to sitting down at the computer for a few hours to perform a new market analysis and research back office syndication sites to forward to clients.
More phone calls
On any given day, a good real estate agent will be on the phone to other agents looking for property specific feedback on their listings, updating clients, addressing any on-going concerns, dealing with offers, mortgage brokers, real property report companies, condominium management companies, dispute low property appraisals and other real estate activities.
Maintain Required Continuing Education
Yes. Edmonton real estate agents are still required to maintain and continue education which is mandated by the real estate council of Alberta. The cost of maintaining a real estate licence and updating an agents education criteria is the responsibility of each REALTOR® and not the real estate brokerage.
Marketing and Property Syndication
If you are lucky enough to find a real estate agent in Edmonton who is an e-pro and is familiar with search engine optimization, they will spend several hours syndicating your home through various search engines and websites to ensure your property reaches the first page of google.
Attend Real Estate Conferences
There are dozens of real estate conferences annually and attending these help your REALTOR® stay up to date on the latest technology, real estate systems, and tools to help them with time management and gaining an advantage over their peers.
Maintain Active Social Media Profiles
Although social media and blogging play a key factor in the life of a real estate agent, if the only thing you see on an agents site is personal posts - you might wonder if they are actively doing any real estate. Many agents will hire this out to maintain an internet presence.
Networking with Edmonton Home Builders
There are several different home builders in Edmonton and this is a great way for real estate agents to keep up-to-date with home demand trends, especially in our current real estate market. Recently many Edmonton home builders have implemented garden suites that offer new home buyers a great way to pay off their mortgage quicker.
Stay in Touch with Past Clients
If your REALTOR® stays in touch with you on a regular basis, you have a great real estate agent. With so many things to do, it is hard to find time to stay in touch with all of our clients!
Several people take education and start a career in real estate under the assumption that it is easy money. In reality, real estate agents are in a brutal time consuming, competitive business. The net commissions are not enough to keep people in the business, in fact, most people get out of real estate because they cannot afford to be in it. REALTORS® who survive to do so because they have a passion for the real estate business, and enjoy helping people make their real estate dreams a reality. It’s a great business to be in, but it’s NOT EASY!
What is the difference between a garage suite and a garden suite?
The official city description a garage suite is "a self-contained accessory dwelling above or attached to a rear detached garage, on a single detached lot which usually comes in the form of apartment-sized living space, with its own kitchen, bathroom, and living space, on the second floor of your garage".
The city description of a garden suite is "an at-grade self-contained, accessory dwelling located in a building that is physically separate from the principal dwelling." Typically, garden suites are single-story structures built in the backyards of single detached homes and must have their own kitchen, bathroom, and living space.
There are several benefits of purchasing a house with a garage or garden suite or building on an existing house in Edmonton including ...
- Garage and garden suites are great ways to add some rental income to your property to help pay down your mortgage. It eliminates the shared interior space the way you would with a basement suite. These smaller living spaces are also a great way to add some diversity to your community because they allow different demographic access to housing options on your street.
- Garage and garden suites can keep family members nearby, yet allows for more personal space. It can be a great option for keeping your parents or your children close, while still maintaining some privacy by ensuring everyone has their own space. Alternatively, some ageing empty nesters have decided to downsize into their own garden or garage suite, and allow their children’s family to live nearby, in the main house.
- As with any good infill project, it is all about creating more flexible living options so every Edmontonian can choose the community that suits them best. For more information on Garage and Garden suites, visit the city of Edmonton's Infill website.
How Realtor Commissions are Divided
Let's pretend for a moment, your Edmonton home sells for $400,000 and you are paying 7% on the first $100,000 and 3% on the balance of the purchase price. The total commissions payable would be $16,000 plus GST. To understand, how much money real estate agents actually make, we need to look at how agents real estate commissions really work.
First - Half of the commission is given to the buyer's agent. Out of the buying side, the buyer's agent does not receive the total $8000. Depending on how the agent splits their commissions between a team or office split, many buyers agents in Edmonton will receive half of the remuneration of $4000. Out of this sum, the buyers' agent will have to pay their monthly desk fee, vehicle maintenance, gas, and insurance. There are also annual licencing fees for Edmonton Realtors, buyer closing gifts, title searches, other fees associated with selling a property and of course Revenue Canadas share.
The other half of the commission goes to the listing agent. Out of the listing side, the Realtor usually has more expenses than a buyers agent including the cost of marketing the property, (which is not cheap!), the cost of hiring a professional photographer, the cost of accurately measuring the property, cost of a third company putting up and removing real estate signs, key boxes, promotional items, website maintenance, property-specific webpages, etc. Same as the buyers' agents, the listing agent also pays for annual licencing fees for Realtors, seller closing gifts, title searches, other fees associated with selling a property and Revenue Canadas portion of the commission.
There are real estate companies in Edmonton who will charge a flat fee or a lesser commission to put your home on MLS, and other Realtors will charge a higher fee. Understanding how much money Edmonton Realtors make will depend on how many homes they sell and how much commission they receive on each property sold.
The net commissions left for the real estate agent is what they get to take home to feed, shelter and clothe their families. Today, in Edmonton's soft real estate market, many agents are now changing companies to a "lesser fee structure" company due to the cost of doing business. Many of these agents can no longer afford to be Realtor, simply because they are not doing enough business, don't want to work as hard to earn a higher commission, are licenced only to buy and sell real estate for themselves or are on their way out of the business.
Now that you have a better understanding of how commissions work and how much Realtors actually net, let's pretend again for a moment, you are a real estate agent. Although it is against the Realtors Code of Conduct not to show properties based on commissions, it can be a buyers discretion not to view them (read more about buyer brokerage agreements). If you were a Realtor in Edmonton, would you show a property with a lesser commission?
In Alberta, all real estate commissions are negotiable, up or down and when hiring a real estate agent to sell your Edmonton home, a few thousand dollars in real estate commissions can make the difference between selling and not selling your home - Choose your Realtor based on the value they offer and interview more than one. Do they have the tools to market your home? Are they giving you a discount based on services that will be eliminated? Are they asking for money upfront, prior to doing anything? How is their internet presence?
Always interview a few real estate agents, ask lots of questions especially about their marketing plan and how they attract buyers. Find out what they have to offer. Not all Realtors are the same, each agent is different. If you use a Realtor or a real estate company to sell your home, there will be a fee. The big question you need to ask yourself is - "HOW MUCH MONEY WILL YOU NET AT THE END OF THE DAY?"
Most REMAX Realtors in Edmonton have the highest monthly real estate fees and are working hard to help you sell or buy your home, staying on top of their game, a doing what it takes to get your home sold including paying for the costs of marketing your property. Keep in mind, Realtors do not get paid by the hour, their real estate companies DO NOT pay them for working there. Realtors work very hard to earn their commissions and only get paid once your property is SOLD (usually on possession date) and not on the day it is sold!
If you have any questions on real estate commissions in Edmonton or what like an in-home real estate interview with myself, feel free to contact us at 780-237-7074.
Retired or Retiring Soon?
The truth about a Reverse Mortgage
Financing your home is probably one of the least fun aspects of homeownership. Nevertheless, it is essential. And when it comes to a reverse mortgage, things get a little more interesting. With a reverse mortgage, you can take advantage of the value of your home without selling it. Sounds pretty good, doesn’t it? Before you call your bank, here are all the facts about how reverse mortgages work.
What is a Reverse Mortgage?
A Reverse mortgage refers to an equity release. It allows a homeowner to borrow a percentage of the current value of your property. This percentage is based on certain criteria which include your age, the appraisal of your home, financial institution, and current market trends in your municipality. All of these factors will contribute to the amount of money you will be allowed to access.
Can a Reverse Mortgage Be Paid Off?
The reverse mortgage loan is not usually required to be paid off until the time of death. This is one of the things that appeal to older homeowners, especially if they plan to live for a long time. However, if you are planning to leave your property for your children at your time of death, equity takes out maybe a better option. Reverse mortgages do not have regular monthly payments. Keep in mind, interest will be charged to the original loan amount until your loan is paid in full and will continue to increase the loan amount over time. When you sell your home, or you no longer use your home as your primary residence, you will be expected to pay the entire amount owing.
Who is Eligible for a Reverse Mortgage?
In order to apply for a reverse mortgage, you must:
Own your home, which must be your primary residence
Be at least 55 years old if you are single
Both must be at least 55 years old if you own the home with a partner/spouse
Both must be on the mortgage application if you own the home with a partner/spouse
Pay off your mortgage once you receive a reverse mortgage
How Do I Access My Money Once I Qualify?
Once you qualify for a reverse mortgage, you are required to pay off your mortgage as well as close outstanding loans or lines of credit that are secured by your home, which includes your mortgage as well as a home equity line of credit. That might sound scary, but you use the money from your reverse mortgage to pay everything off. The balance of your reverse mortgage can then be used for whatever you like. There are also other fees which include a high-interest rate, home appraisal fee, setup fee and legal fees.
Should I get title insurance in place of a real property report?
If possible, it is best to have a current Real Property Report with compliance when buying or selling a home to ensure all property buildings are within the municipality guidelines. If an RPR is not an option, title insurance is a good substitute.
Title insurance without a Real Property Report and compliance is acceptable to most major mortgage lenders and will often provide coverage for the lender for known defects. Unlike other insurance products, there is only one premium paid at the time of closing which provides coverage to the owner throughout their ownership of the property. It also offers a wide range of protection for issues that are not covered by an RPR and compliance.
Title Insurance Benefits include
- Intervening registrations – Anything registered on the title between the time the lawyer submits to the Land Titles Office and the time of actual registration.
- Unknown Liens, encumbrances, tax arrears or defects in the title to a property.
- Unknown special assessments on condos that were implemented prior to closing.
- If an RPR or compliance is not obtained, it covers any defects that would have been revealed by an accurate up-to-date RPR and compliance.
- The forced removal of an existing structure with the exception of a boundary wall or fence where there is only limited coverage
- Forced compliance with work orders or deficiencies on an existing building permit.
- Loss of priority due to matters such as construction liens, agreements on a title, and other mortgages.
- Another party claims an interest in the property.
- Protection against title defects or encumbrances that were unknown or undiscovered at the time of closing.
- Protection against identity theft, mortgage fraud, and fraud against the title.
- Cost savings. Typically, the cost for title insurance is far less than the cost of an RPR and compliance and is available on short notice
Drawbacks of Title Insurance
- It is an insurance product. This means when an issue arises, it may not be covered by the policy and if there is coverage the insurer can decide the method used to solve the issue which may not be the preferred choice of the insured party.
- There is a lack of disclosure and certainty, especially for the buyer, at the time of closing. If an issue is discovered later, it is more difficult to pursue the seller for a fix after closing.
- There is no coverage for known defects, except for some coverage for the lender only.
- There must be some form of enforcement or government action to trigger coverage in most cases. For example, the previous owner did renovations that do not meet the requirements of the building permit or development permit. The title insurance will only pay for the cost to fix these deficiencies if there is some form of enforcement and not simply due to the deficiencies.
- It does not guarantee that all structures will remain in the current state. For example, if the municipality mandates the alteration or destruction of a certain structure, the title insurance company may pay for the cost of appealing that decision however they cannot guarantee a favourable result.
- The coverage of Title Insurance is for the buyer only (not the seller).
- If a buyer or their lawyer purchases a lender only policy that is sufficient to close the deal however the buyer still has no title insurance protection.
- There is no specific protection or coverage for the seller. If a claim is made and the title insurance company determines it is the seller who created the deficiency, the title insurance company can pursue the seller for recovery of the costs they have paid.
- In most instances, title insurance only defers the need to deal with a particular issue. It does not solve it. The issues will still be there when the property is resold.
- Title insurance cannot be passed onto a new owner. Every new owner must purchase their own policy.
For more information on real property reports and the effects on the resale of your residential dwellings and a free Edmonton Home Evaluation, contact one of Remax Elite Realtors.
How much are closing costs in Edmonton Alberta
Are you ready to purchase your new home? Often, buyers find themselves overwhelmed with the cost of purchasing a home and should be aware of these extra home costs to ensure you won't be struggling at the last moment to find more cash to complete your purchase.
When a home is sold, the buyer incurs various closing costs in addition to the property sale price. Although most of the expenses of the house are paid for by the seller, usually including real estate commissions, the buyers pay a variety of fees such as mortgage origination charges, appraisal fees, title insurance, lawyer, home insurance, homeowner association fees (HOA) and property tax adjustments. Depending on the buyer and the home purchased, there may be additional fees including CHMC Fees, which can be added to your mortgage amount and other costs. agreed upon and not covered by the seller costs.
Don't forget your moving and utility hook-up costs. As a rule of thumb, one to two per cent of the cost of your home will cover all closing costs.
If you would like to know more about purchasing a home, contact one of our Edmonton Real Estate experts today for help and free advice.
If you are waiting to purchase a home - Keep up to date on the proposed HST tax which will be an additional cost when purchasing a home in Edmonton.
Does Your Bank Require an Appraisal?
Appraisals are an important part of buying and selling homes in Edmonton. Real estate appraisals establish a property's sold market value price. Banks and financial institutions require property appraisals when buyers require a mortgage on their new homes as security and provide financial institutions with a cost-effective assurance of the properties value for lending purposes. Appraisals are detailed reports compiled by licensed real estate appraisers.
Don't confuse a comparative market analysis, or CMA, with a real estate appraisal. A CMA is a sales report based on data entered into the multiple listing service, or MLS. Real estate agents use CMAs to help their clients determine realistic asking and offering prices.
An appraisal is also not the same thing as a property inspection. Home inspectors test appliances and outlets, check the plumbing and electrical, confirm heating and cooling system are in working order, use inspection tools to look for any moisture issues, missing insulation, etc. Such information is helpful for the buyer to know before moving in.
If your real estate appraisal comes in low, the bank may not lend you the money you need to satisfy your finance condition. You may need to come up with the difference in cash or re-negotiate the sale price of the property.