If you’re currently considering buying real estate it’s good to be aware of the market so that you can take advantage of the opportunities when they present themselves. With a significant investment such as real estate, taking a bit of extra time to read up or consult with a lawyer could mean a difference of thousands of dollars in savings.
Current State of the Market
From May to June the volume of real estate transactions in York Region dropped by approximately 50%. This has led to more real estate properties being available on the market, which has caused prices to drop accordingly.
With more inventory available, there is more competition for your dollar. Given the state of the market, it is important to take the time to carefully explore all the available options. Once a deal is firm, you are bound to that agreement regardless of any changes that happen in the real estate market immediately afterwards.
Usually, a mortgage lending bank will appraise the home sometime after you’ve signed the deal. If the market has dipped in that time, the bank will require you to pay the difference if your house is appraised for less than you’ve purchased it for.
For that reason, make sure to consider making your agreement to buy conditional on mortgage approval. This is another area where minor details can result in considerable losses or savings, depending on the time you take to prepare, plan ahead and negotiate.
Failing to Close a Deal
If you fail to close a deal to buy a property, your liability is more than just the loss of your deposit. It is the difference in the price you agreed to pay for the property and what it eventually re-sells for. You will also be responsible for your lawyer’s legal fees and those of the seller’s lawyer.
Trusting the Experts
If in doubt, it doesn’t hurt to find some professional advice that you can rely on. Epstein & Associates is available to meet with you to review an offer before it is made. Letting an experienced eye take a look at all the details gives you the reassurance you need to go ahead and submit your offer for your new real estate!