The Top 5 Tips For Buyers in a Seller’s Market
In this hot market, it’s understandable that buyers feel like they don’t have as much control over their bottom line as they’d like; but never fear – there are ways to stay in the black. Here are my top five tips to help save you thousands in a seller’s market.
Get a second quote when obtaining a mortgage
Time and time again, I witness buyers who go with the first mortgage option that’s presented to them without investigating other options. Mortgage brokers are a great resource to buyers because their job is to shop multiple banks in search of the right mortgage for you. Don’t count your bank out – there are times when your bank can beat the rate a mortgage broker presents, so consult multiple sources before you lock into an agreement. Remember to compare the terms of the mortgage; eager buyers sometimes get stuck with mortgage agreements that charge a large penalty if broken.
Opt-out of your bank’s life insurance policy
Buyers can often secure a life insurance policy that offers more coverage for less money if they work with a financial advisor or insurance broker. As with shopping for a mortgage rate, don’t subscribe to the first insurance package presented to you.
Have your Realtor® conduct a CMA (Comparative Market Analysis) on the property you are purchasing
A professional CMA will ensure that you do not overpay for a property. When you’re empowered with recent sale prices of homes similar to the one you’d like to buy, you’re better equipped to make a confident and fair offer. There’s nothing worse than taking a loss on your home when you go to sell because you overpaid.
Ask to split the difference
Even when a seller states they won’t budge any further, there is often still room to negotiate. Asking to split the difference is a strategy I’ve seen succeed many times. Meeting in the middle can bring swift resolve to most matters, and saves buyers money on their bottom line.
Do your research!
The Government provides various programs to help you financially, with the purchase of your home. Check out the following opportunities:
Land Transfer Tax Refund for First-Time Homebuyers: http://www.theglobeandmail.com/news/national/ontario-economic-update-includes-small-rebate-for-first-time-homebuyers/article32838191/
Tax Free Savings Account (TFSA): http://www.cra-arc.gc.ca/tx/rgstrd/tfsa-celi/menu-eng.html
Home Buyer’s Plan (HBP): http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.htm
Goods & Servies Tax (GST)/Harmonized Sales Tax (HST) New Housing Rebate: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/hsng/rbts/nwhsng/menu-eng.html
CMHC Green Home Program Benefits: https://www.cmhc-schl.gc.ca/en/co/moloin/moloin_008.cfm
No matter how hot the market, these steps will help any buyer save thousands and lock in the right property to call home.
For more information, check out other resources on at www.faristeam.ca, including our Home Buying 101 and First-Time Homebuyers guide with lots of beneficial information or visit our Ask Faris page to submit a question and one of our knowledgeable sales representatives will answer your question in a timely fashion.
