Bite Sized Regina Real Estate Advice

Easily Digestible Advice You Can Squeeze Into Your Head in one Sitting

They sound similar and are often confused.

The down payment is the amount you intend to pay upfront when purchasing a home. The rest will be in the form of a loan. The minimum down payment required to buy a home is 5% of the total purchase price. This money can come from savings, an RRSP or in the form of a gift from a family member. You can’t borrow the down payment.

The deposit is a cheque written at the time the offer is made. The deposit informs the seller that the buyer is acting in good faith and has the resources to buy the home. The deposit also acts as security should the buyer attempt to back out of the sale as the deposit is non-refundable once the sale is finalized.

The deposit usually ranges from $5000-$10,000 depending on the purchase price of the home and the amount of the buyer's down payment. A larger deposit indicates a position of financial strength to the seller and makes an offer look more attractive. A poor down payment does the opposite.

When an offer is accepted the deposit will be held in trust at the buyer's real estate brokerage. Once the sale is finalized the deposit becomes non-refundable and forms part of the total down payment. Should the sale not become final for any reason the deposit is returned, in full, to the buyer and the home goes back on the market.

Curtis

Your home is up for sale and you have a viewing request, bingo! It's showtime...Imma bake a cake.

Don't bake a cake. It makes buyers think you're up to something. If buyers think you're trying to trick them they form a negative impression of you. They wonder what else you're trying to hide.

The best smell is no smell.

When you have a showing, just make sure you don't cook a smelly meal, clean the cat litter, and take your smoke break outside.

Maybe open the doors and windows for a few hours and let the fresh air do its thing.

Don't bake a cake.

Curtis

How much do you think they’ll take for it? It’s a great question and one I get asked all of the time.

Here’s the answer: How should I know?

Several years ago I was representing a buyer purchasing a condo in Windsor Park. He had split up with his wife and was looking for something with enough room for his kids when they stayed with him.

We found a great place and made an offer of $247,000 for a condo priced at $259,900. We received a counter offer of $255,000. This was more than my guy was willing to pay and he asked me if I thought they might take something in the low $250's.

As are the rules, when an offer is made and a counter offer presented a buyer cannot then counter the counter offer. If the buyer wants to pursue it further they need to re-open negotiations with a new offer.

I called the listing agent first to see if we would be wasting our time writing a new offer or if there was room to move, responded flatly “how should I know”.

How should I know? You’re her REALTOR®, don’t you guys ever talk. Then I thought about it some more.

First of all, the answer I got was partly self-serving on the listing agents behalf. Instead of getting on the phone with the seller he wanted me to write a new offer. This way all he had to do was email it over to her and he was done for the evening.

But, I could also see he was right.

Realtors don’t know what people will take for their home. We can gather clues as to motivation from past conversations but we don’t own the home. People don’t always do what’s good for them. Selling is an emotional time. Have you ever got caught up in situation and made a decision that, looking back on, wasn’t your finest? People blow it occasionally, sometimes more so when money is involved.

A better question, and one that I can answer is “how much should they take for the home”. Base your buying decision (in part) on how much a home should sell for and not what the seller is asking. What people should do and what they actually do doesn’t always line up.

Instead of getting angry with the Realtor, which was my first reaction, I took it as an opportunity to learn.

We ended up getting the condo for $253,000. My guy still lives there.

Curtis

P.S. Whether you agree or disagree with this I would welcome your feedback. Let’s start the conversation and get you moving in the right direction.

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All information, design and website by Curtis Bonar 

REALTOR® Realty Executives Diversified Realty.

For informational purposes only.

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Common questions people ask are: where can I find out what my home is worth, what do REALTORS® charge, do I need to sell before I can buy, how long has that house been on the market, is it a good time to buy a house and more.

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