Sonia's Real Estate Blog

Many people think about just the cost and the interest rate at which they can get a loan while buying a new home. However, the lending process in extremely important and there are other costs that you should consider as you prepare to buy any property. As both a licensed REALTOR® and Mortgage Broker, I’ve come up with a few tips to keep in mind while buying a house:

1. Have a Trusted Realtor® It is no secret that Realtors® get a cut of the sale price of the house. This makes some buyers hesitant to hire one, believing it drives the overall rate up. The seller and not the buyer pays the commission rate. Listing agents (the agent who represents the seller) in most cases does not have your interests in mind and can simply keep both sides of the commission. It means that you are saving no money. Having a Realtor® in your corner can help you a great deal. The Realtor® will help negotiate the price and also inspect the home thoroughly for any defects.

2. Remember That Purchasing a House Involves Contracts There are many papers and documents to sign while going through the process of buying a home. Many of these papers look like standard contracts with no room for negotiation. However, this isn’t true; contracts are meant to be negotiated. There is no need for you to sign a standard agreement. Realtors® come in handy when you require more time for reviewing the house inspection, or wish to have a radon test or need a mortgage approval.

3. Focus on Your Future Plans Buying a house is one of the biggest financial commitments that you might make. However, before buying your dream house you should consider these points:

• Do you plan to continue working at your current job?
• Are you getting married in the near future?
• Are you considering having kids?

If yes, based on the market conditions and terms of the mortgage, you will end up paying for your mortgage over the duration of the loan. It’s important that you keep your future plans in view while considering buying a home.

4. Keep Commitment in Mind When you are planning to get married the laws generally determine how your assets will be treated & how will they be distributed if you get a divorce. These rules do not necessarily apply when you’re single. You have to think about the future. If you purchase a house with someone who isn’t your spouse, having an exit plan if things don’t go too well is a good idea. Make sure to have an agreement made with respect to mortgage payments, repairs, titling and liability. It is better to take the assistance of a lawyer and get all of this in writing.

Buying a home is a major financial commitment and getting it right is about taking a 360-degree view of your current and future situation and needs. This will help ensure you are able to make the proper provisions while purchasing your home, without straining your finances excessively.

Whether it’s your first time buying a home or you’ve bought and sold property a dozen times before, teaming up with the right Sherwood Park & Edmonton Area REALTOR® is the critical first step in making a great experience.

Sonia Tarabay puts her inner tiger to work for each and every one of her home­-buying clients, delivering outstanding 5 Star Service every time. When you’ve got Sonia on your side, buying a home is easier, faster, and way more fun!

When you buy a home, part of the buying process is the closing costs. These closing costs can be a significant chunk of your total amount owed. And it is important that people who are buying a home are taking their closing costs into consideration when it comes time to save for their home.

What are Closing Costs?
Closing costs are the costs that are paid at the end of the transaction when a buyer and seller have come to a decision on what is to be paid and everyone agrees. During this time, the home is transferred from the buyer to the seller. These costs are incurred by either the buyer or seller and sometimes even a combination of both.

What Fees make up the Closing Costs?
There are several fees that can make up the closing costs. These fees are not going to be seen in every transaction, it really depends upon your location, the type of property you are purchasing, and the type of loan that you may be using. Here are a few of the fees that could be included:
– An application fee
– Appraisal
– Fees for the attorney
– Closing fee or the escrow fee
– Courier fee
– Credit report
– A deposit into your escrow account
– Mortgage insurance premium
– Home inspection
– Lender’s policy title insurance
– Origination fee for the loan
– Transfer taxes
– Underwriting fee
– Recording fees
– Property taxes
– And so on…

How Much Should you be Saving?
If you are saving for a home, then knowing what closing costs could be, this can help you to save for these costs. The key is to know just how much your closing costs may be. The rule that most people follow is that the closing costs are often two to five percent of the total home cost. When you do get a loan, more than likely the payback will include your closing costs in the total amount. This loan estimate is only an estimate, and this may change as other fees may be added, increased or decreased. Therefore, don’t think that this is a concrete figure.

Once you have closed on a home, you will receive a Closing Disclosure statement that is going to state what fees are being included in the closing costs. You can then sit down and look at these for a concrete amount. This way, you are not going to be surprised by how much your closing costs are going to be.

So, how much should you be saving? If you have a certain amount that you are wanting to pay for a home, be sure to save up to five percent of this loan for the closing costs. There are times in which you can get the sellers to pay this closing cost but do not count on this. Instead, take the time to make a budget that includes an extra 5% of what you wanted to pay for a home. Not only can I help you find your next home, but I am a licensed Mortgage Broker with Invis in the province of Alberta. Let me help make your home buying experience easier, faster, and way more fun!! Sonia is your one-stop shop for all your Mortgage and Real Estate needs!

Millennials are in the job market and they are buying homes in Edmonton and Sherwood Park! But, what type of homes are millennials looking for? Knowing this can make all the difference for those who are trying to sell their home as the market is packed with millennials looking to buy. As one of RE/MAX’s Top 100 REALTORS® Worldwide, I have the expertise and experience to give you some great insights into what Millennials are looking for in a home.

The Kitchen and Bath Must Be Updated

Both the kitchen and bathroom must be updated for millennials to even be interested in looking at a property. What are they looking for in an updated bath and kitchen? New and updated fixtures, modern cabinets, and updated flooring is a complete package that turns their heads.

Large Kitchen

A large kitchen seems to be something that draws millennials into a home to buy. Years ago, people would dine in the dining room, but millennials would rather have a large kitchen that enables everyone to hang out in one space.

Open Floor Plan

An open floor plan is something that many millennials are attracted to. They like the space to flow easily from room to room, that way everyone is always included no matter where they are at in the home.

Furnishings that are Low Maintenance

What does this mean? Millennials are looking for furnishings that are low maintenance such as hardwood floors versus having carpets that require a lot more cleaning. They are also looking at the materials used in the kitchen and bathroom. They want countertops that are granite and easy to clean versus the laminate that may stain easily.

Energy Efficient is a Must

Millennials are all about being more energy efficient! If a home has solar panels or other cutting-edge efficiencies, or they find that the home is well insulated, they are going to put this into the win column for a home they are considering.

Technology

This includes the security of the home. A home with a technical side and a security panel are more received than those who do not have either!

Location with Walking Areas

The location is a big selling point with millennials. But, they are looking for a location that has nearby parks, walking paths or is within walking distance of something that interests them.

Room for a Home Office

Even a small bedroom can be a way for the millennial to have a home office. But, if a home already has this office in place, that is even better!

Ready to Move In

Millennials are often looking for a home that is ready to move in. They do not want to see items that they would have to fix…including anything that is simply décor. Keep this in mind when trying to sell to this group of people!

They Want to See it Staged

Yes…staging is really a selling point for millennials. They like to walk into a potential home and see how furniture and décor are already arranged before they commit to buying.

If you are selling a home and trying to reign in a millennial buyer, it may be time to make a few changes to make your home more acceptable to what they want! Get started today with a FREE HOME EVALUATION from me, Sonia Tarabay – RE/MAX’s Top 100 REALTOR® Worldwide!