Realestock Blog

So you’ve discovered your perfect dream home and you’re wondering how much time you have to think about it before making your offer. Problem is, there are three other people interested in the exact same property and you’re not sure what to do. What do you need to know in order to stand the best chance at signing on the dotted “sold” line? Keep reading for the real deal on how to prepare before entering the multiple-bid realty trenches.

Loan Logic

Get pre-approved financing so you know the maximum amount of funds available to you. By doing that, you’ll be aware of the maximum amount you can bid and it allows you to shop around accordingly. An agreement to put down the largest down payment or deposit you can afford, along with a thumbs-up from the bank also helps to establish to seller’s that you’re serious about buying the property.

Keeping Up With the Market

Learn what the fair market value is considered to be for property you’re interested in; as well as for the similar homes in the neighborhood. When you find out what comparable homes are going for, you’ll know if you’re shopping beyond your means or within them.

Play Clean

Avoid adding unusual terms and conditions to your bid, like buying someone’s home on the off-chance that you’ll sell yours first.Additional clauses that depend on other circumstances will give vendors headaches and they may have another offer at your price, but without all the loopholes. By making a ‘clean’ offer, you stand a better chance at getting what you want.

Inspect the Home

Set aside money for pre-buy home inspections. If it turns out that the house you want to buy has a roof that’s about to fall in, better to find that out before you bid — especially since it might make you look twice at a similar property around the corner that is going for the same asking price, but with a recently renovated roof.

Don't Get Bogged Down by Decor

Fancy art may make a formerly drab house look fab, but none of these things will be there when you buy the house. Also, the color of the paint in the bedroom might look impressive, but might not suit your furniture…at all. Make sure you’re not being taken in by the smoke and mirrors of objects that are not part of the home’s architectural charm.

Uneven Steven
Don’t bid $250,000 on a house when you’re in a bidding war and your budget could easily permit you to extend $251,200. Bidding an odd number might seem strange, but your bid will stand out from the rest and may just beat an offer that came in at a slightly lower figure with a more common-sounding bid.

Revisit Kansas
Go back to see the house that felt so magical to you on the first visit more than once. One reason is that what strikes you as a great first impression may make a less favorable second or third impression. Another reason is that more than a few sentimental homeowners have sold their house to a young family that somehow reminds them of themselves. If you are able to meet the homeowner and they establish a connection with you, they may look upon your offer more favorably than that of another bidder — even if your competitor’s bid is higher.

Pull the Trigger
Figure out the vendor’s “trigger” — what would make them sell. If you know that the homeowner has a certain closing date in mind which is slightly different from yours, offer to meet their terms —sometimes that’s all it takes to be selected over another bidder, even if the competing offer is higher. And if you know the sellers are not looking forward to moving basement-assembled pool table because it’s expensive to move, ask about buying it to see if that will sweeten the deal.

Hide Your Hand
What helps is knowing the true value of the house. Let’s say you’re pre-approved for a $400,000 loan and the house you’re interested in bidding on would be fairly priced at $350,000 according to your Realtor's estimation, compared to other similar houses in the same neighborhood. You may be smart to bid higher than their asking price and more than fair market value but still less than $400,000.

Know Right from Wrong
There’s an age-old maxim: “buy the most expensive house you can afford.” This is a savvy real estate suggestion, because if you can afford a $325,000 three-bedroom home but instead settle for a $275,000 one-bedroom home thinking you’ve saved some money, you could regret it sooner than you think. In bidding wars, there’s a grave danger of overpaying if you get swept up in the auction-like fray — know when to fold ’em, walk away and run.

So before you engage in battle, arm yourself with credit pre-approval, a little research, an arsenal of financial strategies, heightened market value awareness and a great Realtor. Then cross your fingers and go forth to find your own home sweet home.

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Continuing with our regular monthly feature, here are the top ten property listings on Realestock that achieved the most popularity with motivated buyers over the holidays.

1. Mountain Spirit Resort and Spa, Kimberley, BC

For the third month running, Kimberley B.C.’s luxurious Mountain Spirit Resort and Spa has topped our list of most viewed listings. The combination of a four-season skiing mountain residence with a luxurious world-class spa and four-star slope-side restaurant is among the most exclusive of mountain resorts. And if that weren’t enough, it allows access to Trickle Creek’s championship golf courses, 1800 acre natural park with over 100 km of trails to explore, mountain biking, fly fishing and much more. With activities for everyone, Mountain Spirit is truly a winning destination.

2. 1235 East Lake Drive, Fort Lauderdale, FL

This spectacular estate in Florida has made several jumps in our list in recent months. It includes 9 bedrooms, 9 full and 4 half bathrooms. Spectacular features include a state-of-the-art nightclub, putting green, gym, massage room and spa, wine cellar, infinity pool and 9-car garage. A vantage light system, top grade impact glass, limestone floors, clay barrel tile roof and Pecky Cypress balconies embellish the luxurious feel of the estate.

3. Cannery Lofts Condominium, Astoria, OR

The best river view in Astoria has jumped to number 3 on our list. It offers 10’ ceilings, loft design, granite counters, bamboo floors, gourmet kitchens, glass window walls and gas fireplaces. With easy access to the river walk, quaint shops and amazing restaurants, Cannery Lofts Condominiums is the ideal location for luxury living.

4. Dockside Green, Victoria, BC

A name synonymous with green living, Dockside Green is a LEED® Platinum-targeted project. All of the community’s luxury condominiums feature renewable bamboo floors, low-flow toilets and energy efficient appliances. Dockside Village itself offers even more features, with solar-water heating, small building wind turbines, floating dock with a launch area for canoes and kayaks and a community amphitheatre.

5. Landings at Las Olas, Fort Lauderdale, FL

Number five is a new entry on our list from Fort Lauderdale, Florida. The Landings at Las Olas is a brand-new waterfront corner residence located on Hendricks Island. With spectacular water views, exquisite marble flooring and a separate breakfast and dining room, the Landings at Las Olas has everything you could want in a waterfront home. What’s more, there’s also a swimming pool and central air conditioning for your enjoyment, all year round.

6. Highbury-Tower Residences at Fish Creek, Calgary, Alta.

Quality building materials blend with simple contemporary forms to convey a certain level of sophistication. Its vertical planes of brick and glass work together to create a sense of grandeur; one that brings to mind thoughts of a modern day castle. Highbury's private amenities building is complete with spa & fitness facilities, theatre with tiered seating, an entertainment lounge, hobby rooms and meeting rooms, plus an in-building carwash.

7. Motif at Citi, Burnaby, B.C.

Citi is a combined commercial and residential development located in the heart of the lower mainland's fast growing urban centre, the Brentwood community of Burnaby. Motif, the residential tower, is a pinnacle of contemporary elegance. Rising 30 storeys, it showcases stunning panoramic views day and night. In total there are 148 spacious suites and 5 multi-level townhomes, all of which are exquisitely finished.

8. February Point Resort Estates, February Point, Exuma, Bahamas

February Point Resort Estates is among the most coveted oceanfront properties of the Caribbean. It comprises an exclusive private, 80 acre peninsula on the unspoiled Bahamian island of Great Exuma. Enjoy your luxurious villa right on a pristine, powder-white, sandy beach. Luxurious living space and grand ocean-facing verandas, simply spectacular ocean, beach, sunrise and sunset vistas from every room combine to make the purchase of a dream oceanfront home at pre-construction prices, truly a once-in-a-lifetime opportunity.

9. Vista Lago at the Hammock, Kendall, FL

An amazing location with beautiful hardwood and marble floors, swimming pool and separate breakfast and dining area is one of the best kept secrets in all of Florida. A luxurious living space in a gated community, Vista Lago at the Hammock has everything you’re looking for in a dream property.

10. Sullivan Stone Lodge, Kimberley, BC

This luxury mountain chalet at Sullivan Stone Lodge is mountain living at its finest! With spectacular windows overlooking 50 miles of The Rocky Mountains, 2 spacious decks, a private heated garage, and your own private out door hot tub, you'll want to return again and again! The spacious open plan lounge and dining area with large table and 6 chairs makes this a great place for entertaining. The lounge is complimented with a stone gas fireplace and large TV with DVD and surround sound theatre system.

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Choosing a mortgage can be an incredibly complicated process. Fixed rates, variable rates, deposit percentages and repayment plans options can make your head spin. Check out these expert tips on getting through the mortgage minefield with your dreams-and your sanity-intact!

Choose a Broker or a Bank
Brokers operate independently from banks and have access to many different lenders and borrowing programs – which means he or she may often be able to find you the best bang for your buck. A broker will create a loan, process it and then pass it along to the lender, who will sell it to you for the negotiated rate.

Plan Ahead
Get pre-approved, the current rate will be protected for 120 days while you look for a home. Just contact your broker or lending institution. Don’t worry – you’re not under any obligation and if the time limit on your pre-approval runs out, you can simply sign on for another one.

Find Your Dream Home
The value of your home may dictate your financial security in the future, so choose this purchase carefully. If you choose to renovate, talk to your broker or lender about working the costs into a mortgage. Many institutions offer lines of credit for renovations.

Determine What You Can Afford
Most lenders set lending ratios that guarantee the mortgage payments never exceed more than 1/3 of a person’s income. Once you find a home you love, start crunching numbers. Can you really afford the mortgage payments? Mortgage rates fluctuate and life situations change so strapping yourself with debt may not be the best move.

Think About the Consequences
Review your current mortgage situations before entering into a new agreement. Before you jump into a new mortgage, it’s crucial to understand how your next move may affect agreements you may have with other lenders.

Learn About Fixed Mortgage Rates
The first and most conservative option for investors is a fixed mortgage rate, which means monthly mortgage payments on interest and a principal balance that doesn’t change. The interest rate is set for a defined period of time so homebuyers can rest easy if lending rates start to climb. If lending rates fall, though, those bound in a fixed rate agreement won’t benefit.

Learn About Variable Mortgage Rates
Investors who choose a variable rate agree to pay the current lending rate, which changes often. If you set up payments at a higher rate, you build a cushion in case rates go up. In the long run, you may be able to pay off your mortgage faster this way. But, it’s impossible to predict what the next 15 years will bring in terms of rate fluctuation – so if you can’t stand the uncertainty, it’s better not to gamble.

Make a Decision

Brokers and banks will lay out the pros and cons of each option, but they won’t lead you in one direction or the other. Remember, you don’t have to lock into one type of mortgage rate for the rest of your life. You can try out one option for a year or two, and then switch over if it isn’t working for you or lending rates appear to be taking a turn for the worse.

Establish a Deposit and Repayment Plan
Often, the best move is to put down as large a deposit as you can afford. This will lower your interest payments and get you started off on the right foot when it comes to paying off debt. It’s also a good idea to think seriously about a long term repayment plan rather than paying the minimum each month.

Relax!
As the years go by, be sure to stick to your repayment plan and apply cash windfalls to your mortgage whenever possible, thereby shortening the length of your days in debt.

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A few weeks ago, we posted an entry with 10 tips on what to include-and how you should take a great set of photos to showcase your property for sale.

While I was writing that particular blog post, I stumbled upon a website known as Lovely Listing.com. Their tagline is ‘Odd Finds in Real Estate’.

After taking a look at the website, I would say that it’s definitely ‘odd finds’ in real estate.There are features, items and issues that should never be showcased in photos to sell a home and yet, are taken by actual real estate agents and homeowners wanting to sell their properties.

As a tribute to Lovely Listing.com, here’s a list of the top 10 features you should never include in photos of your property.

1. Bathrooms with uncovered windows. Now, there may be prospective home buyers who desire to have natural light and air circulating through their bathrooms. That being said, I don’t think they would appreciate having an open window in their bathroom that faces the neighbors and allows them to share the intimacy.
2. Kitchens under renovation. Understandably, many homeowners want to renovate before putting their homes on the market to boost its value. But is it necessary to include a photo time line of every step of the renovation? Buyers want to see the finished product, not the process.
3. Bedrooms with lava-colored carpeting. Now, we understand that that particular carpet color was all the rage back in the 80s. Nowadays though, buyers are interested in modern and contemporary features and lava-colored carpeting just doesn’t cut it.
4. Guns hanging next to the kitchen window. Everyone has their own interests and we’re not discriminating against anyone. But, really, guns? What if the potential homebuyer has children? Not the safe haven we all imagined our dream home would be….
5. A family barbeque on the back patio. Homeowners have lives and the right to enjoy their homes with anyone they wish. But, personal photos of your family memories really have no business being in the real estate listing to sell your home. After all, people want to imagine their family having a meal in the backyard, not yours.
6. Mold in the basement. Common sense tells us to remove all harmful substances or debris from our homes for our family’s safety. Why would you want a picture of the evidence to end up in your listing?
7. House in a bubble. I understand the desire to be creative with your photos. Really I do, but how is putting your house in an actual bubble adding to the appeal? If anything, it does lend itself quite well to jokes about the current housing market.
8. Dark photos of people. I mentioned in the previous post about being careful in including people in your photos. It doesn’t help for a prospective buyer to imagine what their new home may look like with people breaking in.
9. Outhouses in the backyard. See my above comment about the lava carpet, it still stands for this.
10. Living rooms with couches on the ceiling. Remember what I wrote in the previous post about taking a lot of photos so you can fix what’s wrong in the room? This is exactly why you should do that.

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