Canada Housing and Real Estate Information
When looking for housing somewhere in Canada, the first things you need to organize are your finances. It is often the case that many people, whether existing homeowners or first buyers, think of buying a new home as though it were a routine purchase. Purchasing real estate in Canada requires that investors do considerable planning and research first. One of the first steps to take is to make an appointment with a real estate mortgage broker or financial institution lender in order to find out what sort of finance you qualify for.
In your search for real estate properties in Canada, you will hav e to present all the facts about your annual income, amount of cash you have for a deposit, other auto, home, or personal loans, credit card information, and any other outstanding debts or collateral assets, if any exists. A prospective Canada real estate investor should also be fully aware of the different factors that may affect their spendable income such as child or spousal support, tax obligations, and insurance.
When thinking of buying real estate in Canada, it is always advisable that you are pre-qualified first. This is because many sellers will ask you for a pre-qualification letter when you make an offer for their property. Pre-qualification will always add credibility to your purchase offer and the seller will be more willing to take your offer more seriously. Your real estate pre-qualification can be done at your bank or via a mortgage broker. In any case, the process is normally a straightforward one since it can be done quite often over the phone.
Once you have given the bank or mortgage broker the required information, they will be able to provide you with an approximation of what you qualify for. At this junction, it is important to mention that most Canada real estate investors think that they are qualified after this point even though this is not the case. Pre-qualification does not mean you can obtain any loan that you require. It is only after all credit checks and verifications have been accomplished that you become qualified.
When you eventually find a house that you would like to make an offer for, there are a few processes you will have to go through. First of all, you will have to put forward a deposit check or a certified check. The value of this deposit depends upon on the seller’s own estimation or discretion. You should bear in mind that the higher the amount of the deposit you are able to make, the more the seller would take you seriously. In the active Canada real estate market, as a rule, the deposit should always be a minimum of 2 of the total purchase price.
After you have made an offer in writing, the real estate seller must now decide what line of action they wish to take. They can accept your offer, reject your offer, or make a counter-offer. If the real estate seller makes a counter-offer, then negotiations can re-commence. This type of Canada real estate negotiation is normally conducted verbally until both parties come to an agreement. As soon as an agreement has been reached, both the buyer and seller have a legally binding agreement for the sale of that property.
When making an offer for a Canada real estate property, you should endeavor not to make too low an offer. This is because a very low offer will always attract unwanted results. For example, if you make a low offer and the seller of the property rejects or counter-offers, you may not have enough time to re-negotiate before another buyer makes a better offer. In which case, the home could be sold before you can act.
When looking to purchase real estate in Canada, it is always prudent to work with a single realtor. But you must make sure that the realtor has access to every home that is in the Multiple Listing Service. Moreover, you should always patronize a realtor who is not on an expense account, but who only gets paid after they have found you a property. Making sure of these things will help safeguard your best interests.
If you are selling a Canada real estate property, then you should be aware that housing in Canada is a very competitive market. This means that buyers will make their decision to buy a property solely based on the comparative price of the property and other properties. The supply of Canada real estate properties is always changing every week and each month, so you need to take note of the current overall market conditions when placing a value for your home. You should bear in mind that timing and the condition of a property can make the difference between making a sale or not. With proper help from a realtor and adequate marketing, there should not be any problem selling your property.