The Pros of Renting

Ease of Movement

When you rent a home, you are free to move on as soon as your lease is expired or you’ve given proper notice. This is one of the most common reasons for renting a home, rather than buying. If you are unsure of how long you will be living in an area, renting is usually your best option. Selling a home can take time, so it makes sense to buy a home when you are sure that you want to stay in the home for a few years. This allows you to build up equity and make money when you sell, which you cannot do when you rent.

No Property Tax

For many homeowners, next to their mortgage payment, property taxes are the second highest cost of owning a home with fire and property insurance being a close third for expenses. These are two costs that you do not have to pay when you rent a home…. or do you? It has often been said that the cost of property insurance and property taxes are enough to make people rent, rather than buy. But think about this, the landlord of the property that you rent is also paying property taxes and insurance. So, who is really paying for these? The tenant is! The cost of the tax and insurance are being passed on to the tenant and “included” in the price of rent. This means that tenants are unknowingly paying the taxes and insurance for their landlord, without the tax advantages of owning the home themselves.

No Maintenance

Over time, every home needs maintenance, and repairs. When you rent, the repairs are passed on to the landlord or property management company. This is one of the most popular reason to rent but, there are down sides to this as well. Some landlords are not very prompt or easy to work with which could have you waiting extended periods of time for repairs to be done or they don’t get done at all. However, if you have a good landlord, your maintenance worries are minimal.

The Pros of Buying

Make It Your Own

When you buy a home, you are free to paint, change fixtures and flooring, tear down walls, or even put up new walls. It’s your home and you can do whatever you want with it. When you rent, you are not allowed to remodel. Having the freedom to do what you want with your home is one of the greatest benefits of owning a home. A home is a place where we spend the bulk of our time, which is why we want it to reflect us and our design preferences.

No Payment Increases

When you agree to the terms of your mortgage, chances are that you will have a fixed rate. This means that your mortgage payment will not increase over the life of the loan allowing you to maintain a long-term budget. The security of knowing what your monthly payments will be over the next five or more years is very comforting whereas it’s likely your rental property will have a payment increase when the lease is resigned.

Build Equity

When you buy a home, a large portion of your payment goes straight to paying off your mortgage. Every time you make a payment, you earn equity in your home. As the value of your house increases, your mortgage goes down and your equity steadily rises.

When buying a home in an area that appreciates well, if you pay down your mortgage over 5 years, you will have a nice chuck of equity to use however you like. You can use your equity to move into a larger home, refinance, to buy an investment property, take out some cash for renovations or to pay off other debt, or leave it alone and let it grow. Essentially, buying a home is a forced savings plan where you will likely not be paying any more per month than you did when renting, however you are saving a good percentage of your payments to use down the road when needed.

The cons of Renting

Payment Increases

In Fort St John, rents have been steadily rising for years which is supported by the fact that our area has been consistently identified as one of the top investment markets in BC. This makes it hard to plan your long-term future finances when you don’t know what your rent payments are going to be year over year. Once a fixed term lease is expired, a landlord can raise the rent as high as they want. If you disagree to the new terms, you’ll need to find a new place to live, which brings the additional expense of reconnecting utilities, moving expenses and it is exhausting. The unknown future of rents can make tenants feel insecure and unsettled

Lease Deadline

When you sign a fixed term lease, it will have a deadline. Most leases are for a year. Once the lease is up, there is no guarantee that you will be able to renew. Perhaps the landlord will sell the rental property after a lease is expired to generate a hefty return on their initial investment. The future is uncertain when you are a renter, making long term life plans more difficult to plan.

No Equity

Every rent payment made goes straight to the land lord. You do not have any equity in the property. Knowing that every dollar of your rent is gone for good is hardest part of renting which is why tenants usually begin looking in to owning their own home. Imagine renting for 10 years at a conservative amount of $1000 per month. Over 10 years that will be a total of $120,000.00 paid that you will never see again. Compare the advantage of owning… At the same payment amount of $1000 per month with our current mortgage rates, a minimum of 1/3 of your monthly payments is applied to your principle and pays down your loan. Over a 10-year period you will have built an estimated $40,000.00 in equity all the while your payments remained the same as if you were renting.

The Cons of Buying a Home

Money For a Down Payment

When you buy a home, the mortgage company requires that you to put a certain amount of money into the deal as a down payment. This is a minimum of 5% of the cost of the home. There are down payment assistant programs and other mortgage options for those who qualify, so this is not always a con to owning a home. It is a misconception that all home buyers need 20% down. The best way to find out if you qualify for down payment assistance is to talk to a qualified mortgage lender and know your options

The Cost of Selling

Selling a home can be costly. If your home needs updates and repairs before selling, you’ll have to come up with the money to make those necessary improvements before you list the home for sale. Selling a home can be more stressful than buying a home. It requires planning and preparation with the help of your real estate agent to do it right and make the most amount of money when you sell. In addition to the legal fees associated with buying and selling a home, upon the sale of your home is when you pay your real estate agent. Take the time to discuss this in details with your realtor BEFORE you list your home for sale.

Responsibilities of Home Ownership

When you own a home, it is your responsibility to maintain the property. Whether it is regular services of the heating system, annual maintenance of the drains and gutters or maintenance of the landscaping these are your responsibilities. If the home needs necessary flooring updates, replacing old or windows or shingles, or a much-needed bathroom renovation, when you own the home the costs of these repairs also falls on you. Many home owners prefer this if they can fix problems themselves. This is referred to as “sweat equity” and it is a great way to pay yourself for your labor and expertise with the increased value to the property in the form of equity.

The Conclusion

Both renting and buying have their advantages and disadvantages. It really comes down to the stability of your living situation and income. If you have a stable career and you feel like you are going to be in your current city for a while, buying a home simply makes sense. If your life is up in the air and you don’t know what next year is going to bring, renting a home for the short term may be a better option. Buying a home costs less overall and builds your financial future. Renting a home is expensive over time and leaves you without any ownership or equity.

Taking the time to look at all the pros and cons of each option will help you plan your life and move in the direction that benefits you the most. If you plan to buy a home in the Fort St John area contact me, I have a ton of information that will help you to begin the process of buying your first home. Good luck and happy house hunting

Buying and selling homes should be lucrative and fun... sometimes it turns into a roller coaster ride that you didn't sign up for

When you're buying, or selling without a Realtor, you probably feel like you're doing a great job. You're using all the information available to you, whether that means searching homes for sale online or putting that for sale by owner sign in your yard! Either way, you are convinced you are saving on the commissions you would normally have to pay to an experienced realtor. Even when a realtor will save you more money, than you'll save by not paying commissions.

If you become one of the lucky few who finds a home, or sell yours, without an agent you'll have that ' I did it all by myself' feeling. It's admirable, and then it’ll hit you... what contract do I use? Once I go under contract what happens next? Are the negotiations in my favor? What are the legal ramifications if I fill out paperwork incorrectly? 

Oh, and the best part of all is that you would have saved more money using a realtor to buy and sell. So, let's talk about a few more reasons using a Real Estate Agent is to your benefit.

Expertise

Would you hire an attorney to remove your tonsils? Then why hire anyone but a professional to sell your home? Expertise matters. 

What are the best ways to market your home? Which neighborhoods are the fastest up and coming?

There is a zero percent chance I would be better at your job than you are, and the same goes for buying and selling real estate. We are experts in or field for a reason.  

When you're buying, and selling homes, hundreds of thousands of dollars are at stake. Being incorrect by just a few percentage points is equivalent to tens of thousands of dollars, and if you're the buyer, a fraction of a percentage point on interest rates does the same!

Realtors are experts who are there to hold your hand when buying and selling homes. It should be obvious to you that working with a Realtor is the best decision, our clients certainly feel that way.

Data

If you have ever bought and sold real estate before then you understand just how important it is to have access to accurate data and information.

If you don't have access to the local MLS, you need it. This is where you will find the most up to date, and accurate information on SOLD homes and neighborhoods.

If you're selling your home and trusting your property tax assessment as an accurate value, just know that it’s values are an inaccurate sale price 98% of the time. Don't risk leaving tens of thousands of dollars on the table just to try and save on the Realtor commissions. Not only are you saving less by not using a Realtor, you're subjecting yourself, to even more harm once you go under contract.

Negotiations

Once you are under contract do you know what is considered fair during negotiations? If you're buying a home do you know what to look for? One of the most important jobs an Agent has is to keep everything legal, fair, and their client's best interests protected.

One of the biggest mistakes you can make is buying a home without an agent. Are you checking the resale values in the neighborhood? The zoning of the surrounding area? Do you know the history of the home? Has it ever had a flood?  Imagine what else you may not be checking that could cause you to invest hundreds of thousands of dollars into a home that is a lemon. 

If you're selling a home without an Agent there's a good chance you will end up working with one anyway. 9 out of 10 buyers is working with a Realtor, so you're likely going to pay a commission. In this instance are you going to know how to handle the negotiations? Do you know what the language in the contract means?

There is a lot of things that can go wrong in a transaction, make sure you're protected both from a financial and legal standpoint!

Connections Real Estate Agents are well connected. They are surrounded by a community of professionals that works in synchrony when it comes to paperwork, mortgages, attorneys, home inspectors, and everything else that is involved in the buying and selling of a home.

One of the most important aspects of our job is the ability to network and connect with people in the community. This is great news for those of you working with an agent since there is a good chance they know of potential buyers and sellers for your home, even before you list it!

A lot of Realtors use their social media connections to spread the right message to a specific audience. Whether that means using their network of connections, or specific audiences in sponsored ads.

One of the many techniques we use to sell homes in Fort St John is market our listings to other Realtors. When you list your home with an agent we market it so that that every potential Realtor, who is working with a pre-approved buyer and looking for a home like yours, knows about it! This is one of the best techniques for getting the home sold fast and for top dollar!

Therapy

Buying and selling real estate can be a roller coaster ride of emotions, brace yourself.

Realtors® are there for you with every twist and turn that is going to occur in a real estate transaction. Can't find your home warranty information? No problem, your Realtor will be there to help you find. Situations like this happen more often than you think.

It's moments like these where a Realtor® can help you anticipate the future, calm your emotions, and use their resources to ensure a smooth transaction for you.

So, whether you are buying or selling, take the time to educate yourself on the roll that a real estate agent plays in the transaction and ask yourself if the possibility of saving money on their fees is worth the risk of so many things going wrong in your real estate transaction.

No matter the reason for your move whether it be a job transfer, you’ve outgrown your space, a divorce, you are looking to move to a different neighbourhood or you are downsizing… you’ll be moving soon and you have children. It is always best to involve the children in the moving process as early as possible. Whether they are young children or adolescents they typically aren’t thrilled with the idea of moving. Fortunately, there are steps that you can take to ease the transition, the foremost being your attitude about the move and willingness to let your children share in the experience

1)Have a family meeting – gather for a casual family meeting with lots of conversation. Tell your children why you are excited about the move and encourage them to do the same.  Share with them your own feelings about moving and be sure to let them know that you will be depending on them for help during the move whether it be packing or settling in once you’ve moved. The more involved they are in the moving process the easier the transition will be for them

2)Get the kids feedback on the new home- depending on the children’s ages they undoubtedly have favourite features of their current home, ask them for a list of what those features are and attempt to replicate them in the new home if possible. If you will be looking at many homes or if you are moving to a new city it may be difficult to take the children with you to look at houses. Once you have narrowed the search to two or three homes, take the children to see the home with you or show them pictures online. You may be surprised by what they notice and can contribute to choosing your next home

3) Sold sign. If you sold your existing home to move or bought a new one, allowing the children to place the sold sign is a simple way to involve them in the process. Have your real estate agent take pictures of you and the children with the sold sign, not only does this involve the children but it will give you all a good memory to look back on together

4)Purge before packing- Moving is a great time to declutter. Involve the children by going room to room through your current home and deciding what items you will be taking with you and what you no longer need. Be sure to let them know that you don’t need to get rid of everything and those items that you no longer use can be donated locally or sold to go towards the purchase of something for the new house

5)Research the new place- Try to learn as much as possible about the new neighbourhood, community, or town. Share what you find with your kids. You don’t have to make everything seem wonderful but information about nearby parks, schools, recreation, sports groups and community amenities will help the kids to be excited about what they are moving to instead of focusing on what they are leaving behind

6)Room plans- to help your children become excited about the new house get them involved in planning their bedrooms at the new house. Take a trip to the hardware store to pick out a new paint color for their bedroom or if you are buying new furniture encourage them to help you pick it out. You don’t have to limit their involvement to just their own room, depending on their age they can be a big help with planning the design of the family room or dining room too

7)Do a site visit- if possible take the kids to the new place for a visit. If you’re just moving across town this could be as simple as an afternoon touring through the new house, neighbourhood, and their new school. If you are moving to a new city this may be more difficult however, you could simply go a couple of days prior to the moving truck arriving and have a staycation in your new town. Be sure to take advantage of the local amenities such as the swimming pools, movie theatres, parks, walking trails and the kid’s new schools.

8)Host a ‘see you soon” party- one of the most difficult things for a child of any age is saying goodbye to friends. Hosting a get-together with family and close friends can lesson this anxiety. During the party make sure to take plenty of pictures of the kids with their friends and be sure to exchange contact information with everyone. Between texting, emails and phone calls your children should be able to stay in touch and maintain old friendships.

9)Make a map- if you are moving far away make a map of the move and be sure to include several fun stops and detours along the way to keep the children engaged and entertained. The drive to the new home is the first step towards the new adventure and you want to help to make it as positive of an experience as possible.

10)Take the time to be a tourist- you have now moved in to the new house and are relatively settled. Set time aside roughly a week after the move to be a tourist in your new community. Whether it simply be walking through the new neighbourhood, meeting a neighbour or planning a day outing to discover the new local parks and recreation, if you make a day of it with the entire family, you will be creating new memories with the kids in a short amount of time.

Everyone wants to sell their home fast and for the most money possible. Accomplishing this does not always mean having to spend money. Below are a few tips to help you turn your home from listed to sold that will cost little to no money!

Clean

This is one of the first and least expensive you can do to help your home sell faster. A deep clean of the entire house from top to bottom will make it shine and sends the buyer the message that the home is well cared for and maintained. Don’t forget about the outside of the house! First impressions are the most important and if the outside of the house doesn’t send the message “come on in” there is slim to no chance that you will have a successful sale.

Depersonalize

You are moving anyways so why not pack and depersonalize now? For some buyers, it is difficult to look beyond the family photos, religious items, and personal papers throughout a home. Art work is a great way to show case feature rooms and walls, however if using art work, ensure the it is simple, appropriate for all ages and neutral.

Your favourite color may be orange but that doesn’t mean that your buyer will like it. In fact, a home with loud or distinct colors throughout is less likely to sell at top dollar and could very well chase off a potential buyer.   If you are listing your home for sale it is because you are committed to selling it, right? So now is the time to put your preferences aside and focus on making your home the most likely to appeal to a buyer. A large part of depersonalizing a home is a fresh coat of neutral paint throughout. This is a relatively inexpensive way to update and depersonalize the home.

Arrange furniture

Moving your existing furniture is a free and simple way to accomplish 'staging' the home, you can simply arrange the furniture in a way that opens the room and is more inviting to buyers while show casing available space and features of the home.  Simply put, rearranging furniture can help you sell the house.

Landscape

You never get a second chance to make a great first impression! Because of this your landscaping is a crucial part of selling your home.  By ensuring the house exterior is clean and organized your home will sell faster and for more money. There shouldn't be items laying around in the front, side, or backyard.  All debris from plants, shrubs, trees, leaves and non-seasonal items should be removed before your listing photos are taken. No matter what part of the country you're in you need to pay attention to the exterior of your home and its appearance, you know buyers will!

Presenting your house

One of the best analogies I’ve seen regarding this is pretending that your home is going on a date. If you were to be going on a date with someone for the first time you would ensure that you are clean, well groomed, and presentable… the same theory applies when you are selling your home.

Hide all signs of pets

I know that your pets are important members of your family however when it comes time to sell, the best thing to do is to make sure there is absolutely no way of knowing a pet lives there. One turn off for buyers is the smell of cats, dogs, and any other pets you may have at home. You will want to remove all signs of odors and stains your pets have caused. If there is any damage that they may have caused you may want to be sure you fix it.

While these tips are a great way to help sell your home, there is nothing better than professionally marketing your property. Selling homes is not as easy as people think, and many don't receive the right amount of views by potential buyers, simply because they were not marketed correctly. If you're going to spend money anywhere on the sale of your home, make sure it's on the way your home is marketed for sale by hiring a professional local real estate agent who uses a variety of marketing techniques.

Congratulations! You have decided it is time to either buy your first home or upgrade/ downsize to another.  Maybe you are tired of paying rent, your family has grown, your location no longer works for you or you are moving for your career… whatever the reason when you begin your home search with your trusted local agent, you need to take some time to make a list of your “must have items” in your next home.

When dreaming of a home the options are endless. From a backyard oasis with a pool, a gourmet kitchen with plenty of room to entertain friends or a gorgeous master bedroom, everyone’s wish list will be different.

Know your budget

The reality is that your wish list and your budget may not be realistic. The first step to creating your list of must haves is to know your budget and be informed of what is available in your price range. Once your real estate agent is helping you in your home search this will become easier as they are an expert in the area and can help you to determine if your list is budget friendly by viewing comparable homes that have sold within your budget and what features and amenities they offer

Find the perfect location, location, location

This is the well know real estate agents mantra and it is so important that we say it three times. Although a homes appearance can improve over time, the physical location will always remain the same so be sure to determine ahead of time what you will need from your location. Proximity to school, works, family, recreation and transit are all important factors to consider

Determine how much space is needed

Having the space for the entire family in your new home is an absolute must have. If you are a family of 6 a three-bedroom home may not be enough for you. Or if you work from home having a designated space to use as home office will be a non-negotiable feature of the house that must be met

Lifestyle

Once the most important needs have been identified (budget, location, and space requirements) you should now take some time to consider your lifestyle and what your home must provide you with to accommodate this. If you enjoy entertaining, an ample amount of space to do so will be a priority.  If you like to cook, then an appropriate kitchen will be a key feature for you. No matter what your lifestyle and preferences, make sure to take the time to identify them prior to picking your house

Focus on the floor plan

When looking for a home, buyers can easily be distracted by decorations, paint colors and flooring. Remember, these items can be changed relatively easily, however you can’t change the location of the home and it may be much more difficult to do a large-scale renovation to meet your lifestyle needs