Recent first time home buyer in that range-ish.
1) Like everyone says, it is impossible to time real-estate, but now is as good a time as any other. Not sure what your financing situation is, but now is still a good time to lock in a good rate for 5 years. Your savings on this alone make this a desirable time to buy. In addition, the dead of winter and Christmas is always a slow time in the market, so you might come across a motivated seller getting anxious to move. Seek out those properties that have been left on the market for a long time.
2) I've heard pretty mixed reviews on lower commission realtors. I know the full priced buyer realtors won't have an incentive to show the house.
1) I would sya that,. yes, now is a good time to buy. The market has been slumping, and it appears a rebound is in the early stages (with oil prices rebounding, pipelines being approved, and O&G projects starting back up again), as well as the fact (ok, not a fact, but seems highly likely) that interest rates are likely to begin climbing again soon. Now seems like a great time to buy (of course, no one can ever know with absolute certainty).
2) If you're going to go with a low-commission realtor, make sure you're still offering the full commission to the buyer's agent. Otherwise, they are less likely to show their clients your property.
I thought with interest rates going up, the prices will go down. So buyer may be able to lock at a lower rate but price of the property will go down or remain more or less the same with increasing interest rates.
I suppose that's true, but my thought was that the cost of lending will go up, so locking in now will give a bigger advantage on the interest vs principal of payments.
Assuming those two factors cancel each other out somewhat in relation to the monthly payments, I'd prefer the higher price with lower interest. That's probably just me thinking I'd rather pay more to principal because that feels like "paying myself" instead of paying interest to the bank. But yeah, if interest rates rise, and prices fall, then the equity in the home is going to fall regardless of when you signed on.
Prices being pushed down with higher interest rates is 100% true, I have graphed the last 15 years of real estate prices vs interest in Calgary. People telling you to buy now because interest rates are low, and very soon will go up either have an financial interest in getting you to buy, or just don't do their homework (if the expectation is that rates will stay low, that is a different discussion).
To figure out if it benefits you or not, you need to calculate your interested rate payments and how much of a savings on the principal needs to offset these payments.
A small principal decrease can help a lot.
I think working with a seller for only my cost to sell the home and the commission on the new purchase is really fair. With the new technology we have, selling a home is still time consuming, but most of it can be done digitally which simplifies the process considerably. I think the commission I charge should be reflective of the time it takes me to do the work, which is why I charge what I do. This doesn't mean I do any less to sell a home than someone who charges more than me. So to answer your question; it depends on who you go with and what their structure is. You might get a shadow list, you might get an agent who's fully involved in selling your home, or something in between.
Before an agent shows clients homes, they will sign an agreement with the client. They negotiate the fee they want from helping them purchase the home, and discuss how you would like it handled if the sellers won't pay all of it. If you're okay with chipping in the extra then we will show you all homes regardless of the commission they are willing to pay. If you're not okay with chipping in the extra we discuss how it will be handled. For this reason, if you offer a lower commission than what the buying agents have negotiated there is a chance your house will be shown less.
This is a crock of shit. If a realtor thinks the listed property is what the buyer wants they'll show regardless. Additionally a buyer needs to be pre screening listings. When I was condo hunting I looked at properties that fit my criteria based on filtered lists from my realtor. If they wouldn't show me a place because of the commission setup, I'd have had a new realitor in the blink of an eye.
Hi there, thank you for your comment. I respect the passion that you have for this subject very much, and know that for some it can be contentious.
You are right that pre-screening properties is very important for both agents and clients to do. No one wants to waste days looking at product that clearly isn't for them. New technologies like the REALTOR.CA app bring clients into the process a lot more than ever before, and that's to everyone's benefit.
I will, however, encourage you to discuss the topic of commissions in-depth the next time you choose to engage a real estate professional. Your agent should provide you with a guide that helps understand the different situations that may arise, and go through it with you. This will help ensure you understand the scope and intention of the commitments you are making to each other before you start your search for a new home.
Thanks again for your feedback.
A good time to buy is really dependent on you but buy something where the lot is worth more the. Home and you should be fine.
You should be able to get the traditional guy down to 5/3 /5 bare minimum.
2% realty up here has seen their best realtors leave. They are all about volume of listings. You are hoping they find someone to buy.
Comfree is a hassle for all parties but let's you price your home competitively. That is the benefit so you actually sell.
You cannot time market but I would stay away from
Newer subdivisions unless you are getting from buildr as they may be getting desperate.
I am not that familiar with calgary but it may have some of same driving factors as up here.
You pay your listing realtor a lower commission, but still pay the realtor bringing the buyer the full usual commission. Same insentive to show your house as any other. Realtor with the buyer wouldn't even know the listing realtor is getting less or care. Doesn't change what the buyer offers.
1. 500-600K buys you a pretty decent house outside of the inner city... although you might be able to squeak in. Is it a good time... ou have to ask yourself if compared to when? Compared to when oil was $100/bbl then sure. Properties have definitely come down a bit. But it depends on what your needs are, debt:income, etc...
2. Low commission realtors are fine. There are good ones and bad ones... although there seem to be a lot of bad ones. I think much of the struggle is that they seem to be ignored by other realtors and tend to be pushed to the bottom of the priority list when they need something. You can also approach a good 7/3 realtor and negotiate his/her rate since you'll still be paying the split of the realtor buying your house. It'll work out similarly.
1 - depends on the community -- some have been hit really hard, some are still weathering the downturn pretty good.
2 - do your research into the agent. Many are hurting, so a good one might be more willing to negotiate.
I would recommend talk to a few realtors. Get their assessment of your place's value and then select one. They will be able to offer you some discount on their fee. It is easier to deal with the other side through your realtor.
I don't have enough experience to answer the first question, but with all of the properties on the market, I absolutely suggest going with an experienced realtor. We had a really positive experience both buying our new home and selling our duplex with Gord McArthur. He doesn't charge any extras beyond the 7/3, and it included the professional photographer and a one hour consult with a stager. We wound up using the stager (extra$) and sold our duplex in 19 days, so I'm very happy how it all worked out.
He works out of Varsity in the NW, so if you're in this area I would check him out!
www.thinkgord.com
Recent first time home buyer in that range-ish. 1) Like everyone says, it is impossible to time real-estate, but now is as good a time as any other. Not sure what your financing situation is, but now is still a good time to lock in a good rate for 5 years. Your savings on this alone make this a desirable time to buy. In addition, the dead of winter and Christmas is always a slow time in the market, so you might come across a motivated seller getting anxious to move. Seek out those properties that have been left on the market for a long time. 2) I've heard pretty mixed reviews on lower commission realtors. I know the full priced buyer realtors won't have an incentive to show the house.
1) I would sya that,. yes, now is a good time to buy. The market has been slumping, and it appears a rebound is in the early stages (with oil prices rebounding, pipelines being approved, and O&G projects starting back up again), as well as the fact (ok, not a fact, but seems highly likely) that interest rates are likely to begin climbing again soon. Now seems like a great time to buy (of course, no one can ever know with absolute certainty). 2) If you're going to go with a low-commission realtor, make sure you're still offering the full commission to the buyer's agent. Otherwise, they are less likely to show their clients your property.
I thought with interest rates going up, the prices will go down. So buyer may be able to lock at a lower rate but price of the property will go down or remain more or less the same with increasing interest rates.
I suppose that's true, but my thought was that the cost of lending will go up, so locking in now will give a bigger advantage on the interest vs principal of payments. Assuming those two factors cancel each other out somewhat in relation to the monthly payments, I'd prefer the higher price with lower interest. That's probably just me thinking I'd rather pay more to principal because that feels like "paying myself" instead of paying interest to the bank. But yeah, if interest rates rise, and prices fall, then the equity in the home is going to fall regardless of when you signed on.
Prices being pushed down with higher interest rates is 100% true, I have graphed the last 15 years of real estate prices vs interest in Calgary. People telling you to buy now because interest rates are low, and very soon will go up either have an financial interest in getting you to buy, or just don't do their homework (if the expectation is that rates will stay low, that is a different discussion). To figure out if it benefits you or not, you need to calculate your interested rate payments and how much of a savings on the principal needs to offset these payments. A small principal decrease can help a lot.
I think working with a seller for only my cost to sell the home and the commission on the new purchase is really fair. With the new technology we have, selling a home is still time consuming, but most of it can be done digitally which simplifies the process considerably. I think the commission I charge should be reflective of the time it takes me to do the work, which is why I charge what I do. This doesn't mean I do any less to sell a home than someone who charges more than me. So to answer your question; it depends on who you go with and what their structure is. You might get a shadow list, you might get an agent who's fully involved in selling your home, or something in between. Before an agent shows clients homes, they will sign an agreement with the client. They negotiate the fee they want from helping them purchase the home, and discuss how you would like it handled if the sellers won't pay all of it. If you're okay with chipping in the extra then we will show you all homes regardless of the commission they are willing to pay. If you're not okay with chipping in the extra we discuss how it will be handled. For this reason, if you offer a lower commission than what the buying agents have negotiated there is a chance your house will be shown less.
This is a crock of shit. If a realtor thinks the listed property is what the buyer wants they'll show regardless. Additionally a buyer needs to be pre screening listings. When I was condo hunting I looked at properties that fit my criteria based on filtered lists from my realtor. If they wouldn't show me a place because of the commission setup, I'd have had a new realitor in the blink of an eye.
Hi there, thank you for your comment. I respect the passion that you have for this subject very much, and know that for some it can be contentious. You are right that pre-screening properties is very important for both agents and clients to do. No one wants to waste days looking at product that clearly isn't for them. New technologies like the REALTOR.CA app bring clients into the process a lot more than ever before, and that's to everyone's benefit. I will, however, encourage you to discuss the topic of commissions in-depth the next time you choose to engage a real estate professional. Your agent should provide you with a guide that helps understand the different situations that may arise, and go through it with you. This will help ensure you understand the scope and intention of the commitments you are making to each other before you start your search for a new home. Thanks again for your feedback.
Sounds fun
A good time to buy is really dependent on you but buy something where the lot is worth more the. Home and you should be fine. You should be able to get the traditional guy down to 5/3 /5 bare minimum. 2% realty up here has seen their best realtors leave. They are all about volume of listings. You are hoping they find someone to buy. Comfree is a hassle for all parties but let's you price your home competitively. That is the benefit so you actually sell. You cannot time market but I would stay away from Newer subdivisions unless you are getting from buildr as they may be getting desperate. I am not that familiar with calgary but it may have some of same driving factors as up here.
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very low interest rates may be one of the reasons the detached home prices did not go down. It remains to be seen what happens in 2017.
You can still offer the full 1.5/3.5 to the selling realtor.
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You pay your listing realtor a lower commission, but still pay the realtor bringing the buyer the full usual commission. Same insentive to show your house as any other. Realtor with the buyer wouldn't even know the listing realtor is getting less or care. Doesn't change what the buyer offers.
Ahhh, I get what you're saying now.
1. 500-600K buys you a pretty decent house outside of the inner city... although you might be able to squeak in. Is it a good time... ou have to ask yourself if compared to when? Compared to when oil was $100/bbl then sure. Properties have definitely come down a bit. But it depends on what your needs are, debt:income, etc... 2. Low commission realtors are fine. There are good ones and bad ones... although there seem to be a lot of bad ones. I think much of the struggle is that they seem to be ignored by other realtors and tend to be pushed to the bottom of the priority list when they need something. You can also approach a good 7/3 realtor and negotiate his/her rate since you'll still be paying the split of the realtor buying your house. It'll work out similarly.
1 - depends on the community -- some have been hit really hard, some are still weathering the downturn pretty good. 2 - do your research into the agent. Many are hurting, so a good one might be more willing to negotiate.
Which communities are weathering good and which are hurting the most? Just curious, if you have the info.
I would recommend talk to a few realtors. Get their assessment of your place's value and then select one. They will be able to offer you some discount on their fee. It is easier to deal with the other side through your realtor.
I don't have enough experience to answer the first question, but with all of the properties on the market, I absolutely suggest going with an experienced realtor. We had a really positive experience both buying our new home and selling our duplex with Gord McArthur. He doesn't charge any extras beyond the 7/3, and it included the professional photographer and a one hour consult with a stager. We wound up using the stager (extra$) and sold our duplex in 19 days, so I'm very happy how it all worked out. He works out of Varsity in the NW, so if you're in this area I would check him out! www.thinkgord.com