Fewer First-Timers Get Pre-Approved
If TD Canada Trust is right, first-time home buyers haven’t been preparing for mortgages like in the past.
TD’s annual First Time Homebuyers report found that only 76% of respondents said they got pre-approved for a mortgage before house shopping, down from 91% in 2010.
Depending on your qualifications and purchase timeframe, skipping the pre-approval step when buying can open you up to rate risk and disappointment.
That disappointment can occur if you’re unexpectedly declined for a mortgage after signing a purchase agreement.
Other findings in the report:
• 72% of first-timers said they spoke to a mortgage lender before shopping, down from 84% last year.
• 50% of respondents said they won’t compromise on price when buying a home
• One third (33%) said they bought or plan to buy a home with a rental unit
o 71% of those said they will use the income generated from their rental unit to pay off their mortgage faster.
The TD survey was conducted online by Environics Research Group between April 29 and May 16. A total of 1,000 Canadians were polled who had either bought a home in the past 24 months or planned to buy one in the next 24 months.
Friday 24 June 2011
Tuesday 15 March 2011
Home Buyer Beware
It amazes me how greedy and unprofessional the residential real estate industry has become. In spite of efforts by our governing bodies and associations to enhance and better educate real estate practitioner's, there are growing numbers of sales people who just don't appear to give a damn. Many putting the almighty buck ahead of the interests of their supposed, clients.
Here's a perfect example that's happening in my own backyard. Milton has been growing exponentially the last few years and with growth in housing there always comes a boom in Realtors coming to collect their share of the resale business. The unfortunate part is we're seeing Realtors coming from as far out as Whitby, New Market, Barrie and Niagara Falls for that one sole deal. The big question here is: "How the hell do these Realtors propose to know anything about Milton and Milton real estate?" Important things like housing, market prices, areas, schools, recreation, etc., etc, etc. How about potential pitfalls like: decommissioned garbage dumps, future development, rezonings, HCA and NEC restrictions, farming practices, etc., etc. You catch my drift. Let me ask you this: Would you spend your budget, say $300,000. on a home because it was in your price range, it was what you were looking for and possibly because your Realtor told you it was a fair or good buy?? . . . Now what if you bought this home and found out later that there were two other homes two streets over just like the one you bought and for $30,000. less? What, you didn't know about them because your Realtor didn't know about them? How does that make you feel?
To this day (25 years in the real estate business) I have been building a network of trusted professional Realtors in other areas that I do not know enough about and will not service. To these trusted professionals I refer my clients because I know they will be properly taken care of. And for that I receive a referral fee from my colleges. This is taking care of the client and is good business practice.
My advice is: "BEWARE". The real estate industry is currently ballooning with sales people and with boat loads down the pipe waiting to complete there schooling. Starving sales people I might add. And many of these with an average income just shy of a MacDonald's hamburger flipper and monthly expenses in some cases double most people's mortgage payments, Do you know, I read an article from the National Association of Realtors which stated that the average Realtor only sold 4 houses in 2009. I challenge them not to put their interests before their clients'.
Here's a perfect example that's happening in my own backyard. Milton has been growing exponentially the last few years and with growth in housing there always comes a boom in Realtors coming to collect their share of the resale business. The unfortunate part is we're seeing Realtors coming from as far out as Whitby, New Market, Barrie and Niagara Falls for that one sole deal. The big question here is: "How the hell do these Realtors propose to know anything about Milton and Milton real estate?" Important things like housing, market prices, areas, schools, recreation, etc., etc, etc. How about potential pitfalls like: decommissioned garbage dumps, future development, rezonings, HCA and NEC restrictions, farming practices, etc., etc. You catch my drift. Let me ask you this: Would you spend your budget, say $300,000. on a home because it was in your price range, it was what you were looking for and possibly because your Realtor told you it was a fair or good buy?? . . . Now what if you bought this home and found out later that there were two other homes two streets over just like the one you bought and for $30,000. less? What, you didn't know about them because your Realtor didn't know about them? How does that make you feel?
To this day (25 years in the real estate business) I have been building a network of trusted professional Realtors in other areas that I do not know enough about and will not service. To these trusted professionals I refer my clients because I know they will be properly taken care of. And for that I receive a referral fee from my colleges. This is taking care of the client and is good business practice.
My advice is: "BEWARE". The real estate industry is currently ballooning with sales people and with boat loads down the pipe waiting to complete there schooling. Starving sales people I might add. And many of these with an average income just shy of a MacDonald's hamburger flipper and monthly expenses in some cases double most people's mortgage payments, Do you know, I read an article from the National Association of Realtors which stated that the average Realtor only sold 4 houses in 2009. I challenge them not to put their interests before their clients'.
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