Tag Archives: Real Estate

5 Reasons To Use A Real Estate Agent

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1. Paperwork and Contracts

Even for a savvy businessperson the contracts and paperwork associated with real estate can be confusing and every so often, there are new forms added to the mix. A competent and experienced real estate agent will be up to speed on all current forms and the first one to know when new ones have been added. It is important that you never sign anything you do not understand and if you are going it, alone you will either have to take a risk or hire an attorney, neither of which are necessary when you have an agent in your corner.

2. Negotiating

Have you ever been in a home that fit all your criteria and yet had the most hideous shag carpeting? If you were attempting to negotiate, a better price on this point by yourself there is the risk that you will seriously offend the seller ruining any chances of a successful negotiation. When you have an agent working for you they can present your concerns to the listing agent who will be better prepared to discuss it with the seller.

3. Simplicity

In most cities and towns, there are several real estate agents and potentially hundreds of listings. Going through each of these on your own means, you could be dealing with several different agents just to visit a few homes. Real estate agents across the country generally co-broke, which means you can choose one agent who can show you any of the properties on the multi-list.

4. Knowledge

Unless you are a real estate buff, you likely do not know the facts about all the neighborhoods around town. Which neighborhoods are up and coming, which are declining or which are perfect for children. These are the small facts that an experienced real estate agent will know, they will also know how these facts affect the pricing.

5. Price

Real estate agents work on commission; however, a responsible agent will be more interested in finding you a home you can afford. They will encourage you to fill out a budget and be realistic about how much home you can purchase. Most agents will tell you it is best to do this on the front end so that all the homes you visit are within your price range.

Conclusion

There are many reasons you should use a real estate agent for your next home purchase, all of which are for your protection. You do not want to get into a contract that you do not understand or get stuck with a home that is going to cost you a fortune to fix. Your agent will guide you through the unfamiliar territory of purchasing a home.

History of Vancouver’s Real Estate Market

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1981In 1981 there was a significant real estate market bubble. Back then, home buyers were faced with skyrocketing interest rates nearing 20%, and an annualized inflation rate of 12.5%. The unemployment rate was at 13%. This was the baby boomer period that saw a rise in demand for real estate.The housing prices at that time were of course almost 1/10th of what they are today, but the baby boomer bulge that stampeded into the housing market was also faced with increased closing costs. More than 20% of the homes bought were sold within 6 weeks, indicating a number of investors trying to realize a profit though a quick flip. A profit they wouldn’t see for years to come. The demographic shift led to prices being pushed up, and we can see afterwards from 1981 the market cooling off, or the bubble bursting. The market softened for about 7 years before it saw another significant spike.1990This year saw a drop of sales ranging from 20-25%. Those who invested back then, could only now realize an appreciation of their asset up to 5.3%. Interest rates in 1990 were also very unfavourable, topping somewhere near 14-15% for 1 and 5 year mortgage rates. The average price for a home was about $220,000-230,000. When the housing bubble burst, there was a national default rate of 0.28%.1990 was also the beginning of an increasingly strong housing market. Vancouver’s population as shown on the graph began to rise. It is estimated that about 14% of the properties bought at that time were sold within 6 weeks, indicating another frenzy of flipped properties and increased prices. The index of affordability was near 65%. There was a less dramatic jump in average prices compared to 1981, and a more modest levelling off until mid 1990′s.1998The housing market around this period was faced with a number of issues. The leaky condo crisis and the Asian Contagion both played a major role in Vancouver’s real estate market. MLS records have shown the number of sales only amounted to 16,000. Although 1998 was the beginning of a steadily increasing upswing, we will take a look at what brought the market into a slump.Real estate prices peaked in 1995 and the market saw a correction in the following four years. The market activity was exacerbated by the world economic environment. The ‘Asian Contagion’ began in Japan when lending institutions were stuck with bad loans. They were slow to react and couldn’t take decisive action.An inflation bubble occurred and they went into deep recession that also hurt overseas investors who held investment securities, and their economy went bust. The Asian financial crisis triggered the Russian financial crisis, and this domino effect brought worldwide economic trouble. We can see on the graph that around that time, real estate prices had bottomed out.The leaky condo crisis also brought demand down for detached homes, as households weren’t able to sell their condos and afford to make such a move. The world economy crisis led developers to capitalize on the market taking a dive, which in turn led to the reduced quality of housing structure.They didn’t build up to code which caused water to ingress through the roof, on top of unsuitable installation of membranes around the building envelope. This problem cost millions of dollars, forcing owners to shell out nearly $70,000 which they couldn’t afford.1999-2008Instead of isolating a specific year between this time period, it would be more functional to analyze all the events that led to a massive increase in home prices that we now face today. After the events surrounding 1998, there was a lot of pent up demand for housing that started a chain reaction with homebuyers.Sales of detached/ attached homes, and apartments increased 16% within a year, leading to a healthy recovery in the resale housing market. Interprovincial migration was also a factor in increased market activity, a net flow BC hasn’t seen for two years. In 2001, the Federal Government decreased capital gains taxes from 75%-50% to promote investing and increase sales volumes.In 2004, Greater Vancouver’s real estate market was impacted by record breaking activity. The continuing pent up demand, low interest rates, and word that Vancouver won the bid for the 2010 Olympics put the GVRD on the map as one of the hottest real estate markets to invest in, especially in Canada. All of this activity led to a burst of new home construction, seeing a 33% increase over the same period the previous year, or more significantly, a 137% spike from five years ago.In fall of 2007, real estate prices were at its peak. The benchmark price for a detached home was at an unheard of $771,250 according to MLS Link Housing Price Index. Sales in 2007 were upwards of 38,000. As we can see on the Real Estate Board of Greater Vancouver’s graph, the average home price for 2008 was $825,206.Vancouver’s growing economy, rising incomes, increased immigration, and higher employment had the market in a healthy position, but it began to cool down in the following months. The GVRD is still bound by its limited land base, surrounded by mountains, water and agricultural land reserve. The recession is also a determining factor as to why the prices are beginning to level off, and affordability is marginally improving as we enter a buyer’s market.

Where to get a Home Equity Line Of Credit Loan online

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A fixed rate home equity line of credit can help you out of a jam if you are strapped for cash. What would have to do if someone in your family were to be injured or to even lose a job? Do you have enough finances in the bank to cover your expenses including your mortgage payments for several months? If not, this is where a refinance home equity line of credit comes into play.

You can draw on the equity through a refinancing second mortgageloan to make all of your debt payments plus pay for your living expenses until the crisis is over. This is a much better alternative than using credit cards to live off of. Simply because the payments on a HELOC loan are typically going to be smaller. Plus the interest is typically going to be tax deductible.

It’s fairly common knowledge that banks are going to be more than willing to loan you money with decent home equity line of credit rates when you don’t really need it. However, if you hit a rough patch in your financial life and need cash desperately, it can sometimes be difficult to get the help that you need. A HELOC loan can help you out of this situation.

In other words it is going to be much easier for you to get a fixed rate home equity line of credit when you don’t really need one rather than to wait and try and get one when you really need it. This is the really great thing about a refinance home equity line of credit and makes this a fairly desirable mortgage loan. Is that there are no payments due unless you use it. This second mortgage for bad credit can also usually be free for those with good credit.