First Time Buyers – Read the return Policy on your House Receipt.
First Time Buyers – Read the return Policy on your House Receipt.
Or why you should interview three agents!
(Or just one great agent like me – just kidding)
Most of us will not buy more then a handful of houses in our lives. Unlike that fabulous yellow (spring’s hot colour this year) designer jacket that suits you perfect and turns out not to meet your fashion criteria at all but thankfully comes with a 7 day return policy.The return policy on the wrong home purchase is non existent.
In order to return it you have to sell it – and that is expensive. For example you have purchased your first home at $225,000. After hard work and saving you were able to put down a 5% down payment of 11,250. So you are left with a mortgage of 213,750.00 …Right or wrong – we will see.
Three months in you have cleaned, painted put up your art work placed your furniture and bought some chic home accent pieces with the cash from returning the yellow spring coat that is not such a hot color any more and you are very happy – fairly happy. Okay you really find the place dark and the kitchen layout is really not functional. The commute to work is longer then you thought………….. you regret you decision. Lets move and do a better job this time (beware of the emotional buy).
Okay lets look at the numbers over the past year values went up 2% in the area – so
$225,000 + 2% = $4500.You ask $228,000. (Because the market is shifting we will be)
Your Mortgage 213,000.00 (you a small principal reduction)
You paid 5,878.00 (in CMHC Fees 2.75% – added to mortgage)
Your penalty 3,500.00 (three months interest penalty to get out of current term)
TOTAL 222,378.00
And you have not even looked at lawyers real estate fees ……….so before some one says sign here press hard ****** STOP
Ask questions - Interview three agents – ask the right questions – what can you do for me if I don’t like my house in six months? –( I have a policy in place. )As of yet I have not had to use it .
What’s the right questions………..watch for my next post.