Rob Smashnuk

Should you buy a home first or sell your old one? That’s a million dollar question and a pretty stressful one at that. Buying a property involves investing nearly all your savings. How do you invest before you sell if you don’t have enough saved up for your down payment? What if you find the home of your dreams before you sell?

Real estate and finance experts say that buying and selling involve a good deal of research and a clear understanding of all the pros and cons involved. The upside of selling first is that you will
be able to budget better. If you have the money in your hands, you can plan with purpose. However, if you face challenges selling your home but find just the one you were looking for at the budget you had in mind, does it make better sense to buy first? Let real estate expert in Edmonton, Rob Smashnuk from Remax, guide you.

4 Reasons Why You Should Buy a Home Before Selling

1. When you find your dream home: It is not uncommon to walk into a home and find everything you ever wanted inside. Sometimes you need to make the decision in a flash. If there are multiple buyers interested, it’s best to jump in and snap it up. It’s rare to find all you want under one roof. Why take a chance and lose it? You might regret the decision for the rest of your life.

2. When the home is within your budget: It’s hard to find your dream home within your budget or at a cost that you never thought possible. When you find such a home, you may as well take it. If you sit on it, chances are you will lose it to another buyer.

3. When it’s a sellers’ market: If it’s a good time for sellers, you may as well buy your home first if you find what you are looking for. You are assured of selling it quickly so why sit on it?

4. When you have enough savings to invest: If you have a large sum of money stacked away or are in a position to afford two mortgages, go for it. This is also possible when you have regular rental income from your current home that pays off your mortgage. Do your maths, assess the market, consult a real estate professional on the situation of home selling in your neighbourhood. If all looks promising, consult an experienced real estate agent and buy your dream home. You are lucky to be in such a position. Make the best of it!

Buying a Home in Edmonton? Call Rob Smashnuk Remax for Help

It can take hours to look through listings to figure out the right homes for you. If you are ready to invest, give me a call.

I can help you navigate the confusing landscape of Edmonton real estate market. I have the experience, education, and enthusiasm that’s needed to help you make the best decision possible in the neighbourhood of your choice. I have valuable connections in the Edmonton real estate industry with connections to the best mortgage brokers, real estate lawyers and home inspectors to work with and protect your investment. From negotiation to purchase, I will save you time and money and most importantly, help you get complete peace of mind, knowing you made the best possible choice. Give me a call. I look forward to discussing more with you.

Plans for an 80-storey condo tower proposed for the Quarters in downtown Edmonton were presented to the public Monday evening.

The Quarters Hotel and Residences would tower over Jasper Avenue and Grierson Hill Road, bordered on the west by the Shaw Conference Centre and on the east by 96th Street.

The building would be the tallest in Edmonton. The Stantec Tower stretches 66 storeys and is expected to open in 2018.

But the architect behind the new project, Brad Kennedy says despite the height, the river valley will still be in sight for people below.

“We designed the podium of the tower to be transparent, so the only piece of the tower that blocks six-and-a-half per cent of the view is the core for the elevators and the stairwells,” said Kennedy.

“Everything else is completely clear, so you can walk along Jasper Avenue and you can see down through the tower to the whole river valley.”

The project would include a hotel, condominiums, restaurants, fitness facilities, shops and two publicly accessible parks, stretching over 100,000 square feet.

Several amendments to the land-use bylaw would need to be made for the project to be approved, including removing a portion of the site from the North Saskatchewan River Valley Area Redevelopment Plan.

The Liberal government has announced sweeping changes aimed at ensuring Canadians aren’t taking on bigger mortgages than they can afford in an era of historically low interest rates.

The changes are also meant to address concerns related to foreign buyers who buy and flip Canadian homes.

Below is a breakdown of the four major changes Finance Minister Bill Morneau announced Monday.

The current rules

Buyers with a down payment of at least 5 per cent of the purchase price but less than 20 per cent must be backed by mortgage insurance. This protects the lender in the event that the home buyer defaults. These loans are known as “high loan-to-value” or “high ratio” mortgages.

In situations in which the buyer has 20 per cent or more for a down payment, the lender or borrower could obtain “low-ratio” insurance that covers 100 per cent of the loan in the event of a default.

Mortgage insurance in Canada is backed by the federal government through the Canada Mortgage and Housing Corp. Insurance is sold by the CMHC and two private insurers, Genworth Financial Mortgage Insurance Company Canada and Canada Guaranty Mortgage Insurance Company. The federal government backs the insurance offered by the two private-sector firms, subject to a 10-per-cent deductible.

The change

Expanding a mortgage rate stress test to all insured mortgages.

What it is

As of Oct. 17, a stress test used for approving high-ratio mortgages will be applied to all new insured mortgages – including those where the buyer has more than 20 per cent for a down payment. The stress test is aimed at assuring the lender that the home buyer could still afford the mortgage if interest rates were to rise. The home buyer would need to qualify for a loan at the negotiated rate in the mortgage contract, but also at the Bank of Canada’s five-year fixed posted mortgage rate, which is an average of the posted rates of the big six banks in Canada. This rate is usually higher than what buyers can negotiate. As of Sept. 28, the posted rate was 4.64 per cent.

Other aspects of the stress test require that the home buyer will be spending no more than 39 per cent of income on home-carrying costs like mortgage payments, heat and taxes. Another measure called total debt service includes all other debt payments and the TDS ratio must not exceed 44 per cent.

Who it affects

This measure affects home buyers who have at least 20 per cent for a down payment but are seeking a mortgage that may stretch them too thin if interest rates were to rise. It also affects lenders seeking to buy government-backed insurance for low-ratio mortgages.

Why

The government is responding to concerns that sharp rises in house prices in cities like Toronto and Vancouver could increase the risk of defaults in the future should mortgage rates rise.

The change

As of Nov. 30, the government will impose new restrictions on when it will provide insurance for low-ratio mortgages.

What it is

The new rules restrict insurance for these types of mortgages based on new criteria, including that the amortization period must be 25 years or less, the purchase price is less than $1-million, the buyer has a credit score of 600 and the property will be owner-occupied.

Who it affects

This measure appears to be aimed at lowering the government’s exposure to residential mortgages for properties worth $1-million or more, a category of the market that has increased sharply in recent years in Vancouver and Toronto.

Why

Vancouver and Toronto are the two real estate markets that are of most concern for policy makers at all levels of government. These measures appear to be targeted at those markets.

The change

New reporting rules for the primary residence capital gains exemption.

What it is

Currently, any financial gain from selling your primary residence is tax-free and does not have to be reported as income. As of this tax year, the capital gains tax is still waived, but the sale of the primary residence must be reported at tax time to the Canada Revenue Agency.

Who it affects

Everyone who sells their primary residence will have a new obligation to report the sale to the CRA, however the change is aimed at preventing foreign buyers who buy and sell homes from claiming a primary residence tax exemption for which they are not entitled.

Why

While officials say more data are needed, Ottawa is responding to extensive anecdotal evidence and media reports showing foreign investors are flipping homes in Canada and falsely claiming the primary residence exemption.

The change

The government is launching consultations on lender risk sharing.

What it is

Currently, the federal government is on the hook to cover the cost of 100 per cent of an insured mortgage in the event of a default. The federal government says this is “unique” internationally and that it will be releasing a public consultation paper shortly on a proposal to have lenders, such as banks, take on some of that risk. The Department of Finance Canada acknowledges this would be “a significant structural change to Canada’s housing finance system.”

Who it affects

Mortgage lenders, such as banks, would have to take on added risk. This could potentially lead to higher mortgage rates for home buyers.

Why

The federal government wants to limit its financial obligations in the event of widespread mortgage defaults. It also wants to encourage prudent lending practices.

Five previous federal housing moves since 2008

Monday’s package of announcements is the sixth time since the onset of the 2008 financial crisis that Ottawa has taken policy action in response to concerns about Canada’s housing market.

July, 2008: After briefly allowing the CMHC to insure high-ratio mortgages with a 40-year amortization period, then Conservative finance minister Jim Flaherty moved to tighten those rules by reducing the maximum length of an insured high-ratio mortgage to 35 years.

February, 2010: Responding to concern that some Canadians were borrowing too much against the rising value of their homes, the government lowered the maximum amount Canadians could borrow in refinancing their mortgages to 90 per cent of a home’s value, down from 95 per cent. The move also set a new 20-per-cent down payment requirement for government-backed mortgage insurance on properties purchased for speculation by an owner who does not live in the property.

January, 2011: The Conservative government under Stephen Harper tightened the rules further, dropping the maximum amortization period for a high-ratio insured mortgage to 30 years. The maximum amount Canadians could borrow via refinancing was further lowered to 85 per cent.

June, 2012: A third round of tightening brought the maximum amortization period down to 25 years for high-ratio insured mortgages. A new stress test was also introduced to ensure that debt costs are no more than 44 per cent of income for lenders seeking a high-ratio mortgage. Refinancing rules were also tightened for a third time, setting a new maximum loan of 80 per cent of a property’s value. Another new measure limited the availability of government-backed insured high-ratio mortgages to homes valued at less than $1-million.

December, 2015: The recently elected Liberal government moved to tighten lending rules for homes worth more than $500,000, saying it was focused on “pockets of risk” in the housing sector.

The package of measures included doubling the minimum down payment for insured high-ratio mortgages to 10 per cent from 5 per cent for the portion of a home’s value from $500,000 to $1-million.

The Valley Line LRT is a 27 km low-floor, urban line that will run from Mill Woods to Lewis Farms, crossing through Downtown. The Valley Line will be built in multiple stages, with the 13 km southeast portion being built first.

Phase one of the Valley Line will run from Downtown to Mill Woods, and will feature:

• 11 street-level stops.
• An elevated station with a 1,400-spot Park and Ride facility and a full transit centre located in the Wagner industrial area.
• The new Tawatinâ Bridge across North Saskatchewan River.
• A short tunnel from the north face of the River Valley through to the Quarters redevelopment.
• An interchange point at Churchill Square to access the existing Metro and Capital LRT lines.

The southeast portion of the Valley Line has a capital cost of $1.8 billion, and will be delivered as a public-private partnership. Construction will begin this year, with the line scheduled to open to the public by the end of 2020.

A REALTOR’s Commitment to High Standards of Professional Conduct Works to the Advantage of Buyers and Sellers Alike.
The internet has ushered in an age of readily accessible information and with dozens of discount self-serve brokerages popping up each day, you can easily be swayed into thinking handling the sale of real estate is a simple affair. BUT, remember its been proved that up to 80% of all For Sale By Owners eventually turn to the services of a real estate professional. And with good reason.

Licensed REALTOR‘s are professionally educated, and fully trained to guide you through the sales process with the least amount of risk possible. They are monitored and guided by their brokers and governed by real estate law. They are sworn to uphold to a strict code of ethics and have access to vast array of resources, including their strong network of real-estate-related professionals with whom they have worked with personally, often for decades. Successful transactions and happy clients are key to their livelihood and reputation. It is their business to know exactly what’s going on in their market, as well as in their community.

I have been in the business long enough to have been involved in the sales process of the same home more than once – I can anticipate issues with underground oil tanks, previously problematic roofing, zoning issues, flood zones and other un-disclosed situations which may affect the true value of your property. I have a database of experienced professionals to offer solutions that I have personally worked with in the past and have networks of affiliates to facilitate the sales process.
When Buying Your Property, I Will Help You With the Following:

Maximizing your Purchasing Power:
I will help you get the best possible property for your budget, notifying you of the newest well-priced properties on the market so that you don’t miss out on a great opportunity. I can put you in contact with the best lenders, who are up-to-date with the latest financing options and programs. I will also help you understand and be aware of the hidden costs associated with purchasing.

Home Search Resources:
REALTOR’s are the first to hear about properties as they come onto the market. Additionally, sometimes the perfect property for you is available but not actively advertised in the market. REALTOR’s have extensive networks of resources and knowledge that will assist you in finding the best property on the market. A real estate agent’s business is to know what’s going on in the market, have the network, resources and insider knowledge to assist you in finding the best property for you.

Objective Information:
I will provide you with valuable community information on utilities, zoning, schools, etc. They will help you determine whether the property will provide the right environment you want as a home or investment and will advise you on its resale value when you are ready to sell in the future. I understand the history of the property and the neighbourhood and can give you an honest assessment of what’s going on in the market and how this will affect your property as an investment. Depending on the area and property, this could include inspections for pests, mould, structural deficiencies, roof condition, septic or oil tanks and well tests, just to name a few. I can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. They will also assist you regarding the title of the property, which is the document indicates ownership of property, financial liens, legal issues, and details rights of access/easements. This knowledge can help you resolve issues that might cause problems at a later date.

Negotiating Skills:
Every deal requires patient and precise negotiating on such important factors as price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. As your agent I can advise you as to which investigations and inspections are recommended or required.

Contract Knowledge:
It is crucial to have a full understanding of the contract that you are entering into! I will explain the details, wording and meaning of these legal documents, and keep you aware of the deadlines, deposits, paperwork, etc. involved in the Contract of Purchase and Sale. I will make sure that your needs are protected, both now and in the future, and ensure that you get what you are paying for. Above all, I will guide you through the entire purchasing and closing process and make sure everything flows together smoothly.

When Selling Your Property, a I Will Help You With the Following:

Market Evaluation:
My business is to know what’s going on in the real estate market in your neighbourhood, and will provide you with accurate and up-to-date information on pricing and market activity, including details on the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

Advertising:
I have the right tools and know-how to get the word out to other real estate agents and to qualified buyers. I will help you with staging your property so that it shows in the best possible light. I can also recommend repairs or cosmetic work that may increase your property’s selling price and saleability. I can take advantage of the Multiple Listing Service, as well as their own websites and buyer networks. I can host open houses for other REALTOR’s and homebuyers, and will assist in coordinating appointments to show your home to pre-screened, qualified buyers and accompany prospects through your home to point out the properties strengths, answer questions and to ensure the security of your home.

Contract Negotiation:
I will objectively evaluate every buyer’s offer without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing –a lot of possible pitfalls. I can help you write a legally binding, win-win agreement that will be more likely to make it through the process and protect you in the long run.

Closing Process:
Between the initial offer and the final closing (or settlement), questions and issues may arise. For example, unexpected repairs, financing snags or an issue in the title is discovered. The necessary paperwork alone is overwhelming for most sellers. I’m the best person to objectively help you resolve these issues and move the transaction to completion.

Don’t Be Fooled By Low Fees:
REALTOR’s and their related Brokers charge various fees for services. Some Companies will claim to offer the same services as their competitor for a lower fee. Make sure before you list with any company that you get a written marketing plan that details all of the services provided. The more exposure your property receives the more likely you are to achieve a higher selling price.
Can You Do It by Yourself?

Although it is true that a few people have been able to stick a For Sale sign on their lawn and sell it themselves in a reasonable amount of time, the level of effort, expense and hassle often isn’t broadcast. For both buyers and sellers, stop and think about how much you trust the honesty, abilities and legal knowledge of the layperson with whom you are about to enter into one of the most important transactions of your life. As with any profession if you decide to take on the role yourself, you must fully comprehend the potential legal and financial risks, as well as weigh up the potential savings against the extra work and time.

Food, games, Beer Gardens, Music & More.

Secord Community League Memberships available for purchase at the event.

We want to thank Hopewell Residential Edmonton for their continual support of our community and their generous donation towards food for our Epic Block Party! ** Upon arrival please check in at our welcome/membership table to receive your food ticket. Fat Franks will be on location.

For legal reasons we will also need to check for ID and community membership before entrance to the beer tent, so please remember to bring with you. (Kids are not permitted inside the tent.)

We will have many activities including bouncy castle, inflatable soccer TBC, games hosted by CIty of Edmonton, glitter tattoos and activity tables hosted by the EPL and Allstate Grange.
Beer available for purchase in the beer gardens.

Thank you to our many sponsors of the event including: All Weather Shelters Inc., Rob Smashnuk Realty, Relife, All State Grange, AdaptAbilities, RBC Webber Green, EPL, City of Edmonton. Big thanks to Hopewell Residential Edmonton for being our food sponsors of the event!

Location, Location, Location & Weather: We all know it is all about location when it comes to finding your dream home, but before you find the right location, you need to consider the weather. Planning your search too late into the season may mean you are battling Mother Nature so the earlier you begin your search, the better.

Timing is Key: Although your busy summer is winding down, you certainly aren’t working with a clear schedule. Between back to school and the holiday season, finding the perfect time to begin your search is imperative to your overall success and is something you should expect as a buyer this fall.

Decision Time: Although there isn’t as much inventory as you would typically find in the spring, there are still many homes to choose one which is why narrowing down your options can be challenging. Using these tips and a House Hunting Comparison Checklist will help when it comes time to make your decision.

The Price is Right: As we get closer and closer to the holidays, you may begin to worry you are running out of time. With the added pressure, you may be tempted to make a decision by increasing your budget, but that will come back and haunt you in the long run. Make sure you plan your budget early in the buying process with help from my Monthly Home Budget Planner.

Make the Move: If you got a head start on the fall selling season and are ready to make your move, we have just the thing you need. Getting home and organized before the holidays is your main goal, and a moving checklist will help you do just that as quickly and efficiently as possible.

As we begin to see the leaves fall off the trees and the familiar sights and sounds of this beautiful season, these tips will be exactly what you need to find a new house to call home this fall.