Buying Your First Home

Buying Your First Home, Knowledge is said to open doors. This is literally true when it comes to buying a home. To become a first-time homebuyer, you need to know where and how to begin the home buying process.

If your planning on raising a family, or have one already started, schools maybe the most important item on your list of required items. Check with your local school board or realtor to find out specific educational requirements in your area.

Choosing a home that meets today’s and your future needs can save you a lot of headaches down the road. Moving or expanding your current house selection to suit an expanding family can be expensive.

Finding a Realtor can be as easy as asking your friends for a referral or looking online for an agent in your area. When choosing your Realtor you want to ensure you find one who puts your needs and interests before their own.

Financial planning is an important part of buying a home and includes more than just the purchase price of the home. Most home buyers will go to their financial institution of choice and be Pre-Approved for a mortgage amount so that they know what price range of homes they can afford. In a competitive market, where time is essential, this can make the difference when bidding on a property when other buyers are interested.

After finding your new home you then have to consider the closing costs which will be added on to the price of your new home. There is the land transfer tax, HST, Lawyers fees and the Title Insurance which all have to be paid. Property taxes, home insurance, mortgage insurance and water bills are all recurring expenses you have to budget for.

Hire a professional home inspector to ensure your property is built according to the appropriate building code. Failure to inspect just this one area can cost you thousands of dollars and needless headaches if work was done in your home by un-licensed tradespeople. A home inspection is a small price to pay for the peace of mind you receive.

Your home inspection report, prepared by the Barrie Home Inspector will include a review of your heating system, electrical system, air conditioner, interior plumbing, roof, attic visible insulation, basement, foundation and any visible structure. The inspection will also include Free Thermal Imaging scan of home.

Want to find out more about The Barrie Home Inspector, then visit Roger Frost’s site on how to choose the best Home Inspector in Barrie for Peace of Mind.

Why You Need a Home Inspection

Why You Need A Home Inspection
by Roger Frost

A home inspection is a limited, non-invasive examination of the condition of a home, often in connection with the sale of that home. Home inspections are usually conducted by a home inspector who has the training and certifications to perform such inspections.

 

The inspector prepares and delivers to the client a written report of findings. The client then uses the knowledge gained to make informed decisions about their pending real estate purchase. The home inspector describes the condition of the home at the time of inspection but does not guarantee future condition, efficiency, or life expectancy of systems or components.

We know the home-buying process can be very stressful, and nothing could be worse than suddenly finding out that there are major defects with the property you just purchased. Having your property inspected prior to purchase can give you Peace of Mind knowing exactly what condition your home is in and what problems or repairs are required.

 

If you are buying a rural property it is always a wise decision to have your septic system and well inspected. Most professional home inspectors will suggest you hire a professional for both these inspections. Septic tank systems are located underground and a professional installer will typically pump out your tank and evaluate the bed from conditions he finds during this process.

 

GuaranteedResidentialInspections.com is located in Barrie ON, and offers a 100% Money Back Guarantee on every residential and commercial building inspection. They also offer Free Thermal Imaging scans with every inspection. As a Certified Building Code Official and a former Registered Builder with Hudac his experience far exceeds that of the competition. With over 4,000 building inspections the Barrie Home inspector should be your first choice when wanting to protect your investment.

 

The savvy home buyer will accompany the Home Inspector and learn about their new home. Asking questions is recommended and every item is discussed in detail to ensure a complete understanding of any issues covered by the home inspector. The client receives an overview of entire inspection at the conclusion, a computerized report and a PDF copy of his home inspection report for his records.

Want to find out more about <a href=”http://www.GuaranteedResidentialInspections.com”>Home Inspections in Barrie ON</a>, then visit www.GuaranteedResidentialInspections.com site. fChoose the <a href=”http://www.Infared-Detection.com”>Barrie Home Inspector</a> for your Peace of Mind.

Your Local Orillia Real Estate Agents

Your Local Orillia Real Estate Agents – Cashing in on the continuing increase of property values is one of the main benefits of owning your own home.  Home owners who only have a small equity investment in their homes can increase their equity as property values rise.   Just imagine if you owned a $150,000 house with 5% down ($7500) and house values increased by just 3%. In one year you would have had an increase in equity of over $5,000

For many, the rent-to-own home may be the best option. Also called a lease-to-own house, the process works similarly to a car lease : Renters pay a certain amount each month to live in the house, and at the end of a set period — generally within three years — they have the option to buy the house. Each month of rent they pay is income for the seller, while a portion of it goes toward a down payment to eventually buy the home.

In most agreements the renters have to pay an option fee and then a rent premium. The option fee is a set amount that the renter pays the seller. If, at the end of the lease period, the renter buys the house, the option fee becomes part of the down payment. If the renter doesn’t buy the house, the option fee becomes income for the seller. Rent premiums are an amount slightly above the typical rent, with a portion of that money going toward a down payment.
The Rent to Own program is typcially set up as the model here explains; The average house is worth $300,000, and typical rent would be $1,500 a month. Someone who’s renting to own might pay $1,700 a month in rent and then receive a $200 rent credit each month. Add the option fee, in this case $5,000. On a three-year lease, the renter would earn $7,200 in rent credits. Adding the earned rental credits to the option fee, the renter has accumulated $12,200 for a down payment.

As a Rent to Own buyer you will still be required to have a deposit for the property, which is usually a percentage of the purchase price or a lump sum. The monthly payment for a rent-to-own agreement will depend on your budget.  The larger your payments, and the longer you make them for, the larger the accumulated downpayment will be when you exercise your purchase option and get a mortgage in your own name.

After your Rent to Own agreement expires you will have improved your credit rating enough to obtain your own mortgage.  The sum of your initial deposit and your monthly payments will count as a downpayment for your own mortgage.  To know exactly how much of a downpayment you will need to consult with a mortgage broker to discuss getting the best possible rate.

Your local Orillia Real Estate agent can help you find a property that will fit your budget.  Choosing a Professional agent with local knowledge and experience will greatly enhance your real estate shopping experience.  Choose from our Best Orillia Real Estate Agents to ensure your receive the best possible advice when making your next property investment.

Energy audits a waste of energy

Forcing energy audits on sellers is both inefficient and problematic

  By Vince Brescia

To many people, the Ontario government’s recent announcement that all homes must have an energy audit before being sold must sound like a good idea. In fact, the legislation states that an energy audit is required prior to all real property transactions, including leases. So much the better, some may say.

The legislation does not actually specify that an independent audit is required. That intention was announced by the government, and would have to be spelled out in regulations. The legislation actually specifies that sellers must provide “information, reports or ratings” on “energy consumption and efficiency.” The government says the audits should cost about $300. However, a province-wide audit infrastructure does not yet exist so the market price for audits once they are in demand is yet to be determined.

There are certainly positive aspects to mandatory audits. Everyone who buys a home will get some information on the energy efficiency of the home (property) they are buying. It will increase consumers’ awareness about this aspect of real estate. And it will incent some potential sellers to take steps to improve the energy efficiency of their properties.

However, forcing energy audits on sellers is both inefficient and problematic.

Firstly, not all purchasers will want or make us of this service, regardless of whether or not some think they should have it. The intent of the legislation is to provide value to purchasers. However, energy efficiency may not be a priority for the purchaser, because they are interested in the property for other reasons. Therefore, the expense will be wasted in many circumstances, making it inefficient.

A second problem is that the scheme will create a considerable amount of energy consumption. There are about 460,000 real estate transactions in Ontario every year. Most audits will require a return truck or van trip by auditors to each property, consuming energy. The infrastructure of a bourgeoning home audit industry will also generate significant energy consumption.

A third problem is that many homes (properties) do not really need an audit. If they are relatively new homes, they will have had to meet building code standards for energy efficiency, making the information provided of little use to the buyer. Another example is condominiums, where neither buyer nor seller has much control over the energy efficiency of the condominium unit. In condominiums, the main parts of the infrastructure that determine energy efficiency are controlled by the condominium corporation, not the unit owner.

Another problem is that information from a standardized system like this often does not provide customers with the information they are interested in, or in a format that meets their needs.

Adding to the last problem, the audit will be paid for by the seller, not the buyer, making the seller the client. This introduces moral hazard into the system, where sellers look for auditors who provide favourable audits, and find auditors willing to comply. The legislation does not indicate whether or not there will be standards for, or policing of energy auditors.

A final key problem is that the new cost associated with the energy audits must come at the expense of something else. In the language of economists this is the “opportunity cost.” The money spent on the audit may come out of capital expenditures on energy efficiency, which already have a high priority with Ontarians. Or it may come out of other important priorities, such as improving the building’s health and safety. The point is that it is not a free new benefit. It comes at the expense of something else. Given that it does so inefficiently, it is not a great idea.

In this age of growing consumer awareness and interest in energy conservation, a mandatory audit approach is not necessary. The most efficient option is to let those who value energy audits to pay to have them done. The consumer is the best one to judge when such audits will have value, what specific information they need, and in what format.

Given that so many purchasers these days already have independent inspections done before buying, it is clear that consumers are not shy about paying to get the information they value prior to making an important purchasing decision. In fact, purchasers can easily ask their home inspector to opine on energy efficiency, without necessitating a second inspection.

Financial Post
Vince Brescia is president & CEO of the Federation of Rental-housing Providers of Ontario .

Inside Secrets To Finding The Right Real Estate Agent

2009 is anticipated to be the year when the property market bounces back. If you’re getting ready to sell a home, you’re in luck! The first step in selling your place is to find the right property agent.

It is their job to get you the hottest deal possible. When they successfully sell your house, they get a commission, so you know they’ll work as practical to get you the best price . They’ll barter for you with possible purchasers. This is your property agent.

Referrals: Selling a house is a big thing, and if an agent does a good job, their former clients will be more than happy to get them more business. Ask around with your pals and family.

Ask around with your friends and family. If you know somebody, even a pal of a pal of a friend, who has sold a place recently, pick their brains. You don’t have to handle a total stranger. Open Houses. Visit open houses and meet as many real estate brokers as you can. This gives you an opportunity to compare. You’ll have an opportunity to check out the house they are showcasing, as well as checking them out. You can not see what sorts of deals they have gotten their previous clients, but you can get a good overall feeling for an agent by meeting them face to face. Are they friendly and simple to chat to? Are they professional? These are things that will go a long way when you are selling your own house.

Check Local property Offices. Going to the estate office to find a Realtor could be a small tough. A good Realtor should know the area well, particularly the area where you live. If they have sold homes there before, that’s a large bonus.

Communication is important, so you need a broker who understands your requirements for size and location. They should have an interest in these concerns and ask you lots of questions. They should also have good ideas about the simple way to present your house to potential buyers. If they don’t seem interested, or don’t offer ideas, you could be in a position to find somebody better.

You can e-mail them your questions, and shop for a Realtor simply without even leaving the comforts of home.

The truth about choosing a great real estate agent is finally revealed! Visit us at Real Estate Agent Wildwood NJ to get all the free insider information.