Edmonton Real Estate Blog

In the fast-paced Edmonton Real Estate market, it is vital that every serious buyer secure a written mortgage pre-approval from their lender in advance of ever looking at properties.  This will reveal what price range is within your grasp and will lock in a guaranteed interest rate for a period of 90-120 days.  Make sure, in advance of April 19, that your lending institution match a current mortgage broker’s discount rate!

The documents that you should take to your lender should include: (1) An employment letter from your company, dated and signed on company letterhead, which will indicate your employment history, the salary paid, the number of hours worked each week, the number of hours of overtime worked each week if applicable, and the employment prospects for the future.  The letter must be written after the company ‘probation period’ has expired; (2) A current pay-stub which shows your year-to-date income; (3) A T-4 slip for the most recent two year period together with your ‘Notice of Tax Assessment’ form; (4) Copy of your current RRSP investment statement that could be used to verify a source of the needed 5% [or more] cash down-payment and/or closing costs of 1.5% of the mortgage; (5) Copy ofyour previous three month’s bank statements; (6) ‘Void’ cheque to use when deciding the account out of which the mortgage payment will be made; (7) The name and address of your lawyer that the lender will use to forward mortgage documents to at closing; (8) If you are a current homeowner, a copy of your most recent mortgage statement indicating the amount owing and the monthly mortgage payment amount.

Hope this is helpful.  Many thanks to Norman Summerton for these important ideas.

Recently in Edmonton, I have been involved in several multiple offer situations on properties that have been on the Edmonton Real Estate Board listing site on the first day.   This is not an uncommon scenario in March 2010.  Many buyers are looking for homes ahead of the proposed mortgage changes coming in April.  This situation says two things to me.

First, a word to sellers.  It is a great time to be selling!  However to get the kind of activity that I have just described, your home must be in tip-top shape and priced aggressively.  Serious buyers have been searching for some time and are very familiar with good value and ‘over-priced’ listings.  Priced right at the beginning gives you a competitive edge.

Second, buyers need to be prepared to enter a real estate environment where the advantage is tipped in favor of the seller for the best properties.  In order to compete, buyers MUST have secured a written MORTGAGE PRE-APPROVAL in advance.  Next they need to be as flexible as possible to fit in with the seller’s wishes.  Then they must be prepared to put a substantial cash-down-payment of at least $5000 as part of their offer to purchase.  Furthermore, they must be prepared to put as few conditions to their offer to purchase as possible [eg., financing and a home inspection] and have them removed as quickly as possible [4 0r 5 working days].  Finally, on select properties, they must be prepared to offer more than the listing price.

How much higher should you offer?  The answer to that question depends on: (a) what your financial restraints might be; and (b) whether or not you can comfortably walk away from that home or condo if the other offer [or offers] out-bid you!  It would not be unheard-of to have an offer $5000 or more above the asking price.  If you lose one offer, move on quickly to the second with your realtor!

In this market, it is fun to be a seller and aggravating, at times, to be a buyer!

Need some professional help?  Call me!  I will be happy to guide you to a successful conclusion!

I have just listed a well located 3 bedroom, 2.5 bath 5 year old bareland condo half duplex with single attached garage in Summerhill Glens in SE Edmonton. The asking price is only $279,900 and the condo fees are a mere $75 per month. The home is well maintained with laminate floors on the main and carpeted floors in the upper storey.

Exciting details can be found at www.edmonton-real-estate-info.com

Sales activity was up dramatically for the month although the prices remain relatively static. Sales were up over 33% from the previous month and up 7.6% from one year ago.

The average home price was $369,500 which was up 1.4% from the previous month and 5.6% from the same month in 2009. Condominium prices were down 3.8% from January 2010 to an average of $231,500 while half-duplexes were up 3.5% tp $315, 400.

The sales-to-listing ratio was 47% with a month end inventory of 5,450 homes for sale. The average days on market dropped from 57 to 47 days.

The upcoming changes to mortgage lending rules will undoubtedly have an impact on the real estate market in the months ahead.

The previously announced mortgage lending policy changes of the Federal Government effective April 19, 2010 may kick in much sooner than the announced date. The major lenders have hinted at this in recent days.

Remember that all applicants will have to qualify on the basis of a 5 year posted rate, instead of the maximum discounted 5 year interest rate.

If your credit bureau beacon score is 680 or less, then principle, interest, property taxes, utilities, plus personal loans and credit card debt must not exceen 42% of the families gross income. If the beacon score is 680+, the percentage rises slightly to 44%.

All potential home buyers in Edmonton are urged to get a WRITTEN MORTGAGE PRE-APPROVAL [effective for a minimum of 90 days] as soon as possible to take advantage of the lower rates and easier qualifying rules!