9 Quick Tips on Finding a Great REALTOR®
Trish Pritchard • February 6, 2020
So, you want to buy a home. Or maybe you want to sell your home. Either way, working with a real estate professional or REALTOR® is a really good idea. But with all the agents out there competing to earn your business, how do you find the right one? Here is a quick list of tips that should help you narrow down the list of potential suitors. From there, it's up to you!
Do Your Research.
Hands down, the best advice available is simply do your research. It sounds so basic, but regardless of how many more of these tips you read and follow, if you do your homework and gather as much information about working with a potential REALTOR®, you will lessen the chance of getting a dud while increasing the chance of finding someone who will really work hard for you.
Ask your friends and people you trust.
If you know someone who has recently bought or sold a property, ask them who they used. From there, ask about their experience, get them to explain both the positives and negatives, ask how the agent communicated, were they easy to reach, were they responsive. And so on. If you feel comfortable with their recommendation, get the agents name and proceed to google them.
Just Google Them.
This is great advice on almost any subject. If you are looking at hiring an agent, you will want to google them first. Don't simply look at the first few results, take a look a couple pages deep. You will be surprised by what comes up down the line, maybe they have been involved in legal action in the past, these things are good to know and discuss with them if you want to extend an interview to them.
Check Out Online Reviews.
A lot of sites like Google, Facebook, Yelp, and various local media publications will have sections where client testimonials are shared. Because these are shared publicly on independent 3rd party sites, they tend to be more reliable than say the testimonial section on an agents website. The more reviews you can find the better, just as you shouldn't let one rave review sell you, don't let one bad review deter you. The key here is balance.
Check Out Their Website and Social Media Presence.
It's no longer 2006, a good website that is mobile friendly is necessary. A REALTOR'S® job is to sell your property or find you the best property available on the market before someone else scoops it up. How they communicate online and how they use technology is a window into how well they will be able to represent you in an online world. You want to find an agent who is up to speed and understands how information is shared online.
Check Out Their Credentials. Have they won any industry awards? Have they won any local awards or people's choice awards? There is probably a reason for it. Good agents tend to get recognized.
Do they Sell Real Estate Full Time? In order to be extremely successful at selling real estate, they have to put in the time. It is very hard to do that working part time hours. You will want to find an agent that works full time in real estate so they are available when you need them to be.
Have an interview.
After you have spent the time finding an agent that comes highly recommended by friends, and you have done your research, you should have an informal interview to see if you get along with them. If you are looking to buy a property, you might want to meet in a local coffee shop in the area you would like to buy in and ask questions about the area. If you are selling, consider having the agent over to your property and have them provide you with an estimated sales price. You can also discuss their commission structure and the plan they would have to sell your place.
Don't Feel Any Pressure.
Finding a great agent is important, if you feel uncomfortable with someone, chances are other people will as well. Sometimes it works out and you simply "click" with a certain agent, while other times you might have to interview 3 or 4 agents before finding someone you want to work with. Not all agents are created equal, some are better than others, and some are A LOT better than others.
The key to finding a great REALTOR® is to do your research ahead of time. Make sure this is someone you feel comfortable with. This will save you time, heartache and money down the road. The last thing you want to have to do is find another REALTOR® half-way through the process.
Of course if you would like an introduction to a REALTOR® or two that I have worked with in the past and highly recommend, please let me know, I would be happy to pass some names on to you. Contact me anytime!
Dreaming of owning your first home? A First Home Savings Account (FHSA) could be your key to turning that dream into a reality. Let's dive into what an FHSA is, how it works, and why it's a smart investment for first-time homebuyers. What is an FHSA? An FHSA is a registered plan designed to help you save for your first home taxfree. If you're at least 18 years old, have a Social Insurance Number (SIN), and have not owned a home where you lived for the past four calendar years, you may be eligible to open an FHSA. Reasons to Invest in an FHSA: Save up to $40,000 for your first home. Contribute tax-free for up to 15 years. Carry over unused contribution room to the next year, up to a maximum of $8,000. Potentially reduce your tax bill and carry forward undeducted contributions indefinitely. Pay no taxes on investment earnings. Complements the Home Buyers’ Plan (HBP). How Does an FHSA Work? Open Your FHSA: Start investing tax-free by opening your FHSA. Contribute Often: Make tax-deductible contributions of up to $8,000 annually to help your money grow faster. Withdraw for Your Home: Make a tax-free withdrawal at any time to purchase your first home. Benefits of an FHSA: Tax-Deductible Contributions: Contribute up to $8,000 annually, reducing your taxable income. Tax-Free Earnings: Enjoy tax-free growth on your investments within the FHSA. No Taxes on Withdrawals: Pay $0 in taxes on withdrawals used to buy a qualifying home. Numbers to Know: $8,000: Annual tax-deductible FHSA contribution limit. $40,000: Lifetime FHSA contribution limit. $0: Taxes on FHSA earnings when used for a qualifying home purchase. In Conclusion A First Home Savings Account (FHSA) is a powerful tool for first-time homebuyers, offering tax benefits and a structured approach to saving for homeownership. By taking advantage of an FHSA, you can accelerate your journey towards owning your first home and make your dream a reality sooner than you think.
If you have a variable rate mortgage and recent economic news has you thinking about locking into a fixed rate, here’s what you can expect will happen. You can expect to pay a higher interest rate over the remainder of your term, while you could end up paying a significantly higher mortgage penalty should you need to break your mortgage before the end of your term. Now, each lender has a slightly different way that they handle the process of switching from a variable rate to a fixed rate. Still, it’s safe to say that regardless of which lender you’re with, you’ll end up paying more money in interest and potentially way more money down the line in mortgage penalties should you have to break your mortgage. Interest rates on fixed rate mortgages Fixed rate mortgages come with a higher interest rate than variable rate mortgages. If you’re a variable rate mortgage holder, this is one of the reasons you went variable in the first place; to secure the lower rate. The perception is that fixed rates are somewhat “safe” while variable rates are “uncertain.” And while it’s true that because the variable rate is tied to prime, it can increase (or decrease) within your term, there are controls in place to ensure that rates don’t take a roller coaster ride. The Bank of Canada has eight prescheduled rate announcements per year, where they rarely move more than 0.25% per announcement, making it impossible for your variable rate to double overnight. Penalties on fixed rate mortgages Each lender has a different way of calculating the cost to break a mortgage. However, generally speaking, breaking a variable rate mortgage will cost roughly three months of interest or approximately 0.5% of the total mortgage balance. While breaking a fixed rate mortgage could cost upwards of 4% of the total mortgage balance should you need to break it early and you’re required to pay an interest rate differential penalty. For example, on a $500k mortgage balance, the cost to break your variable rate would be roughly $2500, while the cost to break your fixed rate mortgage could be as high as $20,000, eight times more depending on the lender and how they calculate their interest rate differential penalty. The flexibility of a variable rate mortgage vs the cost of breaking a fixed rate mortgage is likely another reason you went with a variable rate in the first place. Breaking your mortgage contract Did you know that almost 60% of Canadians will break their current mortgage at an average of 38 months? And while you might have the best intention of staying with your existing mortgage for the remainder of your term, sometimes life happens, you need to make a change. Here’s is a list of potential reasons you might need to break your mortgage before the end of the term. Certainly worth reviewing before committing to a fixed rate mortgage. Sale of your property because of a job relocation. Purchase of a new home. Access equity from your home. Refinance your home to pay off consumer debt. Refinance your home to fund a new business. Because you got married, you combine assets and want to live together in a new property. Because you got divorced, you need to split up your assets and access the equity in your property Because you or someone close to you got sick Because you lost your job or because you got a new one You want to remove someone from the title. You want to pay off your mortgage before the maturity date. Essentially, locking your variable rate mortgage into a fixed rate is choosing to voluntarily pay more interest to the lender while giving up some of the flexibility should you need to break your mortgage. If you’d like to discuss this in greater detail, please connect anytime. It would be a pleasure to walk you through all your mortgage options and provide you with professional mortgage advice.
Credit. The ability of a customer to obtain goods or services before payment, based on the trust that you will make payments in the future. When you borrow money to buy a property, you’ll be required to prove that you have a good history of managing your credit. That is, making good on all your payments. But what exactly is a “good history of managing credit”? What are lenders looking at when they assess your credit report? If you’re new to managing your credit, an easy way to remember the minimum credit requirements for mortgage financing is the 2/2/2 rule. Two active trade lines established over a minimum period of two years, with a minimum limit of two thousand dollars, is what lenders are looking for. A trade line could be a credit card, an instalment loan, a car loan, or a line of credit; basically, anytime a lender extends credit to you. Your repayment history is kept on your credit report and generates a credit score. For a tradeline to be considered active, you must have used it for at least one month and then once every three months. To build a good credit history, both of your tradelines need to be used for at least two years. This history gives the lender confidence that you’ve established good credit habits over a decent length of time. Two thousand dollars is the bare minimum limit required on your trade lines. So if you have a credit card with a $1000 limit and a line of credit with a $2500 limit, you would be okay as your limit would be $3500. If you’re managing your credit well, chances are you will be offered a limit increase. It’s a good idea to take it. Mortgage Lenders want to know that you can handle borrowing money. Now, don’t confuse the limit with the balance. You don’t have to carry a balance on your trade lines for them to be considered active. To build credit, it’s best to use your tradelines but pay them off in full every month in the case of credit cards and make all your loan payments on time. A great way to use your credit is to pay your bills via direct withdrawal from your credit card, then set up a regular transfer from your bank account to pay off the credit card in full every month. Automation becomes your best friend. Just make sure you keep on top of your banking to ensure everything works as it should. Now, you might be thinking, what about my credit score, isn’t that important when talking about building a credit profile to secure a mortgage? Well, your credit score is important, but if you have two tradelines, reporting for two years, with a minimum limit of two thousand dollars, without missing any payments, your credit score will take care of itself, and you should have no worries. With that said, it never hurts to take a look at your credit every once and a while to ensure no errors are reported on your credit bureau. So, if you’re thinking about buying a property in the next couple of years and want to make sure that you have good enough credit to qualify, let’s talk. Connect anytime; it would be a pleasure to work with you and help you to understand better how your credit impacts mortgage qualification.
