Edmonton Homes

Edmonton Advanced Marketing DND BGRS REALTOR

CAN YOU AFFORD TO SELL YOUR HOME

The Edmonton real estate market is soft and house prices have been dormat for the last decade. Before you sell your home, do your homework and estimate your closing costs to ensure you have enough money to make your move. There is nothing worse than sitting with your lawyer and not having enough funds to close your sale.


Edmonton House Prices Image


When a home is sold, the seller incurs various closing costs in addition to paying out the remaining balance on their mortgage and payout penalties. Typical closing costs for a seller may include any property taxes which are in arrears, encumbrances, the cost of a real property report with compliance and/or title insurance, any permits which were not obtained earlier, real estate commissions, any provincial, GST revenue, agricultural or business taxes, liens and legal fees. If the property is a condominium, the seller may also have costs of condominium documents, unpaid condo fees, levies and the estoppel certificate. When selling a house, the seller's costs vary from a few thousand to several thousand.


Since our Edmonton economy is not in the best shape and buyers have become nervous about making large purchases, there are several ways to maximize the value in your home without major renovations including staging and a little bit of home maintance. Pricing your home correctly in todays Edmonton Real estate market is crucial and timing is also a factor. Read more on your community absorption rate.


If you are not sure if you have enough equity in your home, contact one of our real estate experts for a free home evaluation.

Read full post

Should I get title insurance in place of a real property report?

If possible, it is still 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.


Alberta Real Property Reports Image


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.


Alberta Real Estate Title Insurance Image

Title Insurance Benefits include

  • Intervening registrations – Anything registered on 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 favorable 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. /li>
  • 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 our Homes & Gardens Realtors.

Read full post

BUYING A HOME WITH A 5% DOWN PAYMENT

Investing in Edmonton's real estate market is relatively simple. For a small amount of money down, usually, five percent, (plus closing costs) and can own an asset worth significantly more and build your net worth. Your down payment must be from your own savings or a gift from a family member. You cannot use a loan or line of credit.


First Time Home Buyers Image

To use the 5% down payment option, the following rules apply:

The home must be your principal residence - in other words, you will actually live in the home. So if you plan on buying a condominium or other property for residual income, you won’t be eligible for the Canada Mortgage and Housing Corporation’s 5% down payment option.


To calculate your GDS or Gross Debt Service ratio, factor in your monthly mortgage payment, utility costs, property taxes and condo fees, if applicable. This number cannot exceed more than 32% of your gross taxable income. Plus, all your consumer debt, loans, and housing-related payments cannot exceed 40% of your gross taxable income: this is your Total Debt Service ratio or the TDS.


Finally, you must have good credit and a minimum of one year with your current employer.


ALSO SEE: 5 Steps to buying a home


Keep in mind, as of January 1st, 2018, the government has imposed more qualifying restrictions on Canadians and you must now qualify at two-per-cent higher interest than your current rate. Once you have your pre-approval completed. Contact an experienced real estate agent with their ABR designation and start house shopping!

Read full post

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.


Real Estate Questions & Answers Image


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.

Read full post

Why You Need a Property Title Search

When a real estate agent in Edmonton is working for either a buyer or a seller, a property title search needs to be pulled prior to listing a home or writing an offer to purchase to ensure the saleability of the property.


Real Estate Land Title Certificate Image


Basic information on a property title will include:

  • The current owners name: In the event of an estate sale, probate may or may not have been completed and your real estate agent will ensure the person selling the property does have power of attorney. In the event, there is only one person on the title in a marriage, a dower consent will also be needed to complete the sale.
  • The Legal description: The municipal or mailing address is different from the legal description and includes a block, lot and Plan number.
  • The amount of the last mortgage, any second or third mortgages or the original purchase amount at the time of purchase or there may be a nominal fee.

Other things which can be revealed on a property title search may include:

  • Outstanding or owing property taxes, special assessments, delinquent condominium fees which have not been paid by the seller.
  • Outstanding creditors including other financial institutions and businesses for things like unpaid vehicle loans, furniture stores, construction loans, personal loans, etc
  • A lis pendens, which is normally added by a lawyer during a divorce procedures and "freezes" the transfer of a property until all parties are satisfied.
  • Easements and Liens from a third party, such as the municipality, utility company or Environmental liens, who may have rights to use part of your property.
  • Covenants which are restrictions on the land that can limit what can be built on it, where it can be built and from what materials it may be built. Breaching a covenant can have serious consequences so it is necessary to be aware of any covenants on your property.

If you are not represented by an Edmonton Real Estate Agent, with the legal description and a small fee, the public can pull the title of a property plus details on any registered documents attached to it. Also note, between the time a condition has been removed from an offer to purchase to the time a buying signs with their lawyer, there may be a change on the land title certificate.


Learn more about real estate contracts in Alberta

Read full post

Do you really need a property inspection when purchasing a home in Edmonton?

A real estate property home inspection is an objective visual examination of the physical structure and systems of a house, from the roof to the foundation. It is for the sole benefit of the purchaser and is usually subcontracted to a certified licensed residential real estate inspector, paid for by the buyer and can take one to four hours depending on the size and condition of the property. At the end of your inspection, a standard home inspector’s report will be supplied covering the condition of the home.


Home Inspections Image


A home inspection can identify the need for major repairs or builder oversights which can lead to unpleasant surprises and unexpected difficulties in the future. Buying a home can be the largest single investment you will make and spending a few hundred dollars for peace of mind is money well spent.


Home inspection components covered include:

  • heating system including furnace and hot water tank
  • central air conditioning system
  • carbon monoxide and fire alarm detectors
  • interior plumbing using both visual and water residue tools
  • mold issues and water damage
  • electrical systems
  • the roof & attic
  • visible insulation of walls, ceilings, floors, windows and doors using a thermal ray tool
  • foundation & basement
  • other structural components which may need major repair or replacement.

Depending on your chosen property inspector, there may be some things that will not be inspected such as things which can not be seen visually and appliances. You may want to check that these chattels are in working order.


Foreclosures:

If a home inspection is not allowed on a bank foreclosure, it is still a good idea to have one done, prior to putting in an offer.


New Homes:

In Alberta, builders must supply a new home warranty at closing, however, new homes should ALWAYS have a home inspection done. Building a house takes time and there are always things that get missed. It is easier to address these concerns before you remove your inspection condition.


What if the report reveals problems? No house is perfect. If the inspector identifies problems, it doesn’t mean you should or shouldn’t buy the house. Talk it over with your real estate agent. There are a few options to address any concerns you have.

Read full post

What is a Real Property Report?

A Real Property Report (also known as the RPR) is a legal document that clearly illustrates the location of significant visible improvements relative to property boundaries. It is a plan or illustration of the various physical features of the property, including a written statement detailing the surveyor’s opinions or concerns.


Alberta Real Property Reports Image


Who needs a Real Property Report?

Part of the standard real estate contracts in Alberta will have a term in the document states the seller will provide a current real property report with the compliance report to the purchaser upon closing. Prior to putting your home on the MLS System and/or Realtor.ca, Sellers should order a new RPR to protect themselves from potential future legal liabilities resulting from problems related to property boundaries and improvements. YourREALTOR® can assist you with this process to ensure your property complies with municipal requirements.

Do I need a Real Property Report for a Condominium?

Bareland Condominiums require Real Property Reports. Conventional Condominiums do not require an RPR.

How does a Real Property Report protect you?

Purchasing a property may be the largest financial investment you ever make. With a Real Property Report, owners are aware of any boundary problems. They know whether their new home is too close to the property line, or part of their garage is on their neighbour’s land or vice versa. Since legal complications may occur if a sold property fails to meet requirements, a Real Property Report protects the seller.

What is on a Real Property Report?

The legal location description of the property and municipal address, dimensions and directions of all property boundaries, any improvements on the property, right-of-way or easements, any visible encroachments, a duly signed certification and opinion by an Alberta Land Surveyor and a permit Stamp where applicable.

How much does a Real Property Report cost?

The amount of work to prepare a Real Property Report varies between properties. Lot size and shape, number of buildings, natural features, age and availability of the property boundary information all affect the cost. However, if you are planning on selling your home in the near future, the sooner you order your Real Property Report, the more economical it will be plus any problems can be identified and resolved before a sale is finalized.


READ MORE ON THE DIFFERENCES BETWEEN REAL PROPERTY REPORTS AND TITLE INSURANCE

Read full post

EXTRA HOME COSTS FOR BUYERS


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.


Edmonton House Prices Image


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. Learn more about how to buy a home in Edmonton.


If you would like to know more about purchasing a home, contact one of our Edmonton Real Estate experts today for help and free advise.

Read full post

The first step to buying a home is deciding if you are ready to become a homeowner and start building equity for your future. There is a lot to know when it comes to buying a home in Edmonton. Whether you are buying your first condo, moving to a bigger house or downsizing, our in-depth 5 step home buyers Guide will take you through all the steps.



  • First: Get pre-qualified for a mortgage and choose a financial lender
  • Second: Choose the best Buyers Agent or Edmonton
  • Third: House hunt like a real estate professional online and in person
  • Submit an offer with confidence by understanding Alberta Real Estate contracts
  • Fifth: Be prepared for other costs associated with buying a home in Alberta

STEP 1: Financing - Pre-approval and choosing a financial lender

Not all financial institutions are the same. If you choose to use a who works at your personal branch, keep in mind, most persons who work in a bank get paid by the hour, unlike a mobile mortgage specialist who only gets paid when they have completed, processed and get your mortgage application approved. For a list of mortgage brokers, contact us.


The first step to buying a house or condo in Edmonton is finding out how much your bank is willing to lend you based on the lenders' rules. Keep in mind with the change of Canada's new mortgage qualifying rules. You must qualify at two per cent higher than what your current interest rate will be.


Your lender will look at your income, your debts, your down payment and your credit rating. Having a verbal or online pre-approval is a waste of time and is not a real pre-approval. Your lender/Mortgage Broker will ask for a list of items to be provided including a recent bank statement, pay stubs, job letter, last 2 years of T4's for a true pre-approval.


A mortgage pre-approval will be in writing which is normally valid for 90 or 120 days. Pre-approvals will also include an interest rate guarantee - get this in writing from your lender to ensure you have documentation in the event interest rates rise prior to purchasing your new Edmonton home.


LEARN MORE ABOUT MORTGAGES

Our Edmonton Real Estate Agent Team is here to help you. We have several mortgage brokers we deal, feel free to reach out and ask us for a list of mortgage specialists.

STEP 2: Choosing the Right Buyers Agent

If you are like most people, you want to find a Realtor who is a good fit. Both real estate agents and Realtors have had to undergo a certain amount of training in order to qualify to help you buy or sell real estate. However, in Canada, in order to be considered a Realtor, a real estate professional must be a member of the Canadian Real Estate Association (CREA). There are several Realtors in Edmonton who choose not to work with buyers, while others choose to work solely with buyers. These Realtors are known as Buyer Agents.


There are several ways to find a buyers agent who will be a good fit. Most Realtors in Edmonton have their own websites. Some of these websites are very generic, while others provide personalized extensive real estate information. Some Realtors will also specialize in a specific part of Edmonton or have a real estates specialty such as condominiums, luxury homes, relocation moves or acreages. Another great way to find a buyer's agent is to visit open houses. However, if you fall in love with the house, it is in your best interest to seek out a different agent.


Interview a few different Realtors before signing a commitment called a "Buyer Brokerage Agreement". Remember this agent will be helping you make the biggest investment of your life and you should make sure they have your best interests in mind. Below is a list of questions which may help in the interview process when buying.

  • How long have you been a REALTOR?
  • Do you have any other real estate designations?
  • How much commission do you charge?
  • Will you show properties that are at a lesser commission offered?
  • How will you keep me informed on new properties which meet my search criteria?
  • What is your real estate niche or specialty?
  • Do you have a list of references I can contact?
  • How many homes are you willing to show me (If this number is less than ten - move on to another agent)
  • If I cancel my agreement, is there a fee?
  • When are you available to show me homes (Note* Part-time Realtors may not be able to accommodate your schedule)

LEARN MORE ABOUT BUYER BROKERAGE AGREEMENTS


To book an appointment for your personalized Edmonton home buying consultation, contact us.

STEP 3: House Hunting like a Real Estate Professional

Let's face it. You have been house shopping for your home online and have seen a few "bad real estate photos", or a property with no photos or wonder why a particular house has been on the market so long. The reality is, there may be great homes, but the sellers chose the wrong agent to market their home.


When you come across those bad real estate photos, try to look beyond the photographer, the horrific lighting and the messy house with clothes on the floor, pets or worse yet, the seller's children in those photos. If the selling agent has not taken the time to properly market a home, the sellers are not happy and want their home to be sold.


When there is only one exterior photo on a property, read the comment section. Odds are, this home is tenant occupied, or not in show-able condition (Very messy) or the sellers have chosen really ugly paint colors for the walls. These homes are usually fantastically priced properties that need a little TLC and some cleaning. If you are looking for a home in a particular area, learn to calculate the absorption rate to make the best financial purchase and make a great real estate deal.


Don't be fooled by pretty homes. Both a Seller and the Sellers Realtor want as many potential buyers into their home, but don't be fooled by how lovely it looks inside with that sparkling granite counter-top, cutest little girls rooms or awesome man cave. Take a deep look at the finishing. This is the best indicator for how well the home has been built and taken care of. A great buyers agent will point out imperfections they notice.


Don't overlook homes which have been on the market for a while. These properties may have had several price adjustments, especially in Edmonton's real estate market and may now be below or at the proper market value. Take a second look. There may also be other reasons which factor in a long time on the market which can include the property was "tied up" a few times with other offers which have fallen apart on financing or an inspection. Remember, when a pending offer is on a home, it can be conditional for a few weeks at a time. Another reason, a property may be longer on the market could be due to a "lis pendens", probate, civil enforcement or other government enforcement contingencies.


HOW TO CALCULATE THE ABSORPTION RATE IN ANY NEIGHBORHOOD

STEP 4: Submitting the Offer

Normally there are two basic (three when purchasing a condominium or more with rural properties and acreages) conditions or "subject to's" when purchasing a home in Edmonton.


  • Financing: Although you have completed your pre-approval, this does not mean you have been qualified to purchase that dream home. Once an offer has been accepted, your financial institution will need to submit your offer to the underwriter and your credit will be checked again. Do not go out and purchase any major items which would require financing such as a new vehicle during this time frame. If you are obtaining a CHMC Mortgage, the credit check will be done for a minimum of the last seven years.
  • Inspection: Hire a certified residential property inspector with a good reputation and credentials. The cost in Edmonton for a certified residential home inspector usually costs between five to six hundred dollars. No matter what type of home you are buying, including foreclosed properties to new builds. This small fee can save you thousands of future dollars.
  • Condominium Documents (Condo purchases): Always double check you have received all condominium documents and review them. If you do not understand the legality or do not have the time, have your real estate lawyer review them for you. There is a lot of information in the condominium documents and you do not want to be surprised with a $30,000 special assessment when you move in.
  • Rural and Acreage: Septic inspections are beyond the scope of a standard home inspection but when purchasing an acreage in Alberta, they are crucial. Other conditions you should add to your rural purchase agreement include a satisfactory water well, water flow, water quality tests and pumping equipment inspections


STEP 5: Buyer Beware & Other Closing Costs

Calculating the cost to purchase a home in Edmonton is pretty simple. Calculate your total down payment plus add one and a half per cent of the total purchase price of your home. For example on a $300,000 home, with a five per cent down payment, you will need a total of $19,500. Your financial institution will ask to see this additional amount to ensure you have enough money for closing costs such as lawyer fees, title transfers, mortgage application, and appraisal fees. Additional mortgage fees like CHMC can be added into your mortgage or can be paid up front.


If you have added certain terms into your purchase agreement, such as "Seller to repair a broken window, steam clean carpets, remove dog feces from the backyard, etc, you may also want to add an additional clause


"Seller will allow the purchasers to complete a satisfactory walk-through regarding the terms of the property prior to possession"


In Alberta, the transfer of real estate titles is processed a bit different than other provinces and keys do not get released until monies have been received by the Sellers lawyer. In the event and terms were not completed, it is more difficult for remediation this after.


Note* If you are purchasing a foreclosure, keep in mind, that this property is sold "As Is, Where Is".


If you have any other real estate question about purchasing a home in Edmonton or the surrounding area, contact us by email.

Read full post
Copyright 2019 by the REALTORS® Association of Edmonton. All Rights Reserved.
Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.