Offers - It's not always about Price

When it Comes to Offers, it’s Not Always about Price.

When considering which of two or more competing offers to accept for your

home, there is no doubt price plays a huge role.
After all, if Offer #1 is $10,000 higher than Offer #2, that’s an enticing difference that puts
thousands of extra dollars in your pocket.

However, price isn’t the only thing you should think about when comparing multiple offers. There are other factors you need to consider as well.

For example, what conditions are in the offer? If Offer #1 is conditional upon the Buyer selling his current property, then what if that doesn’t happen?

You could end up with an offer that expires and be forced to start all over again.
In that circumstance, accepting the lower offer may be your best move.

There’s also financing to consider.

Most Buyers have discussed their mortgage qualifications with their lender and will likely

secure financing with little difficulty. If you get an offer where the ability of the Buyer to get financing is in doubt, that’s a red flag.

The closing date is another important factor. Offer #1 might propose a closing date that’s perfect for you, while Offer #2 is four weeks later. If you’ve already purchased another home, you might require a month of bridge financing if you accept Offer #2. There’s nothing wrong with that per

se, but the costs and additional hassle are factors you should consider.

As you can see, assessing competing offers isn’t as easy as it looks and it's not always about price.

Fortunately, we are here to help and will guide you toward making the decision that will best serve you.

 

If you would like to know what's happening in the housing market or would like an update on what your home is worth, call us anytime  519-495-1541.

 

 

Richard Thyssen, Broker of Record

Colleen Thyssen, Sales Representative

Direct: 519-495-1541

Email: richardthyssen@kw.com

www.thyssengroup.com

 

 

 

 

 

 

What's the Better Mortgage Rate Choice - Fixed or Variable

In today’s market, variable and fixed rates are not too far apart. This makes most people think that the fixed rate is the way to go as it’s often viewed as the safest option.

Many believe that variable rate mortgages are for the daring and at any time your rate could double leaving you high and dry in the cash flow department. Many don’t realize that isn’t the truth at all.

The great thing about a variable rate is you have the option to lock into a fixed rate at any time you start feeling panicky, but I can assure you your interest rate will not be doubling over night. Even if your rate did go up by .25% the savings you would have already earned would put you on level playing ground, or you’d possibly still be in the lead.

Over the last 40 years variable rate mortgages have proven themselves to be the better choice for saving money and flexibility. I would also say that you’ll be given ample warning in the news and media that the Bank of Canada is planning a move on rates. When the rate does increase, I’m certain it will be slowly creeping up with just a quarterly rate increase at a time.

Where you’ll save the most money choosing a variable rate compared to a fixed rate is with the penalty.
With a variable rate, you’ll only ever be charged 3 months interest at any given time you choose to break your mortgage during the term. With a fixed rate it’s always the greater of Interest Rate Differential (IRD) or 3 months interest, and believe me those IRD penalties can be insanely large!

Statistics show that the majority of Canadians break their mortgage before the 5 year term is up, so save yourself some dough and consider going variable. There’s more to it than just the lower rate.

Richard Thyssen, Broker of Record
Colleen Thyssen, Sales Representative
Direct: 519-495-1541
Email: richardthyssen@kw.com
www.thyssengroup.com

Souce of information contained above from Robert Stanfield, Mortgage Agent. Agent License: M08009050 LondonMortgageGuy.ca

Viewing your home from a Buyer's prospective

Richard Thyssen Broker of Record  Colleen Thyssen, Sales Representative Keller Williams Lifestyles Realty Inc. Phone: (519) 495-1541 Office:     (519) 438-8000 Email: richardthyssen@kw.com Website: www.thyssengroup.com

When most people think of the word “REALTOR®“, the image of a professional helping someone buy or sell a home comes to mind. Of course, that’s a big part of the job! But as your REALTOR®, I also consider it my job to help you enjoy your home between transactions. How do I do that? This informative newsletter is one way. Another is to invite you to give me a call when you have questions about the real estate market or want to know the current market value of your home. If you need some work done around the property, I may also be able to recommend a good contractor from amongst the reputable home professionals I know. Is there any other way I can be of service? Please let me know! Richard Thyssen, Broker of Record (direct) 519-495-1541

Viewing Your Home From A Buyer’s Perspective

There is an old adage in marketing and sales: Before trying to sell something, you need to put yourself in the buyer’s shoes. When it’s time to sell your home, you’ll need to do the same thing. Imagine that you’re the potential buyer and then view your property from that perspective. Start with what a buyer sees first, the outside of your property from the curb. Does your home look inviting and attractive? Are there ways you can improve the look of your home from this vantage point? It may be as simple as trimming the hedges. Then, walk into your home through the main entrance. What is your first impression? Does your home look clean, uncluttered, and appealing from the foyer? Is there anything you can do to improve the look? Even a small change, such as moving a coat rack that is cluttering the space, can be a significant improvement. Finally, tour the rest of your home. Most buyers viewing homes will visit the kitchen, the living room, and other rooms on the main floor and then check out the upstairs bedrooms. As you are pretending to be a potential buyer and looking around, what impression are you getting? What features do you especially like? What don’t you like? Are there any issues that concern you? Don’t forget to view your garage and backyard too. By doing this simple exercise, you’ll be able to see what changes and improvements will make your home show better.

Imagine The Home In Five Years

When you view properties listed on the market, you will see them as they look today. Yet, once you purchase a new home, you’ll likely plan on living there for years to come. Since homes and neighbourhoods change over time, it’s a good idea to imagine what the property and the surrounding area will be like over the years you plan to be there. How do you do that? To begin, take a close look at potential maintenance issues that may be coming up. Will the roof shingles need to be replaced in a couple of years? Is the furnace more than 15 years old? Will the bathrooms need to be renovated in four or five years? Then, take a look around the neighbourhood. Find out what construction projects, road improvements, and other improvements are underway or will be happening soon. Are there plans for a new school nearby? Is there a major shopping centre due to be built down the street? Also try to get a sense of the trends in the neighbourhood. Does it seem like it will be a nice place to live over the next few years? Do the homeowners take good care of their properties?

Understanding How Homes Are Priced

Whether you plan on putting your home on the market someday soon, or you’re just interested in how much your property is worth from an investment perspective, it makes sense to know how homes are priced. When a home goes on the market, there is an overwhelmingly high probability that it will sell for somewhere close to its market value. If a three bedroom, detached home in a neighbourhood sold for X dollars, then you can expect a similar home down the street to sell for roughly the same price. That’s why we look closely at recent home sales in the area in order to advise clients on the best listing price. Are there other factors that determine selling price?  There are many. Home improvements, special features such as a large deck as well as the general attractiveness of your home, can all increase its value to potential buyers. While some of these characteristics may help boost its selling price, others may simply help you sell your home more quickly.

notable, quotable... quotes! “There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.” Albert Einstein “The good life is inspired by love and guided by knowledge.” Bertrand Russell