So you’re thinking of buying a home-Exciting! You’ve done the math and can afford the mortgage payments within your budget (if you haven’t, and need help with that- we can help) Our Lore Group Agents can’t wait to help you get started on your journey to home ownership! But before you do, let’s chat a bit about money, debt, and affordability. Because it’s important to know that mortgage payments are not the only payment you’ll need to consider to sort out a feasible budget and what price of home to buy. Full disclosure: We’re Real Estate Agents, not financial experts….but that doesn’t mean we haven’t learned some helpful financial tips along the way, that we’d love to share with you (You should of course, seek the guidance and expertise of your financial advisor as well, before making any big financial decisions):

Tip #1  LEAVE YOURSELF WIGGLE ROOM: Consider not maxing out your limit. Certainly, we want you to find a home that you love, and will suit your needs for years to come (and we can’t wait to help you get started!) But while you can lock in your current monthly mortgage payments for a period of time (typically 2-5 years), you should be prepared in the future if interest rates were to increase. Similarly, property taxes rates, and utility costs can all fluctuate with inflation, so leaving yourself plenty of breathing room will come in handy should those situations ever arise. And if not, that just leaves you more vacation moneyJ

Tip #2 PLAN TO SAVE: Open a dedicated savings account for future home maintenance and repairs. Home ownership comes with many joys and responsibilities. Whether your home is new or old, unexpected repairs can and will come up that you’ll need to deal with right away; your hot water tank gave out and needs replaced (unless cold showers are your thing). Your dishwasher stopped working (who wants to wash dishes by hand). You’ve got a leak under your sink and need to call the plumber (duct tape doesn’t work. Seriously, it’s been tried). These types of things will happen at some point and saving for them can avoid a lot of financial stress and burden in the future. Consider setting aside at least 1-2% of your homes’ value, per year, in your home maintenance savings account.

Tip #3 PAY THE BANK LESS: Want to be mortgage free faster? Consider increasing your monthly mortgage payments. This doesn’t necessarily need to be a lot. You’d be surprised at how much you will save in the long run and how much faster you will pay off your mortgage, simply by adding a couple hundred dollars or more to your monthly payment. For example, on a $500,000 home purchase with 5% down, increasing your mortgage payments from $2282 to $2482 (that’s based on a 5yr. fixed rate of 3.14%) you’d have your mortgage paid off 3 years faster. Or if this is a starter home and you plan on upsizing into another home in the near future, you’ll have more equity available at the end of your term for your next home purchase.

Buying a home isn’t just about looking at beautiful houses (but it definitely is the FUN part). With the Lore Group, we’ll help you with the FUN part, and of course are happy to share our tips and real estate advice we’ve learned, not just from our careers, but from our own personal experiences in real estate along the way. Reach out to us today at 780-370-3325 for all your real estate questions and for your own personal buyer consultation with one of Lore Group Agents.

Condo living is a lifestyle that many homeowners enjoy. Like all types of Fort McMurray homeownership, there are pros and cons, and some important aspects to consider before jumping in; We will touch on two of these: CONDO FEES and RESERVE FUNDS.

First. Let’s clear up the most common misconception we hear from buyers in the market; that some nefarious “they”, is in charge of fees and can raise and charge you anything at anytime for no real reason at all. This is false. Condo corporations are all of the individuals who own units in a condominium complex. Each condominium corporation has a condominium board, which is basically a group of the owners in that particular condominium complex, who volunteer their time to be on the condominium board. Board members are voted in every year at the Annual General Meeting and should be approachable at any time of year when residents have concerns. As a governance board, this group calls the shots (within the rules established in your bylaws; and certain decisions require all owners input, in which case a vote must be made: like democracy, your vote counts! Because the Board members are volunteers and do not get paid for their time, and typically have regular jobs like the rest of us, it is common for a condo corporations to hire a professional condo management company. Under the board’s direction, the management company oversees the maintenance and day to day operations, and pay the bills, however some condo corporations do decide to self manage, even in Fort McMurray.

Condo Fees (also known as co-ownership fees), are billed to co-owners, typically on a monthly basis. They cover necessary expenses for the regular maintenance of common areas of the building which could include items such as window washing, insurance, common area cleaning, lawn maintenance, snow removal, repairs, management expenses, contributions to the reserve fund (piggy bank for future capital cost replacements or repairs-we’ll talk about this in a minute) and sometimes utilities. As an owner, you do have some say in how your condo fee is spent. Here are some MUST KNOW important information to help preserve and protect your Real Estate investment (because that is really what condo fees are all about):

How are condo fees calculated?

Fees are normally set annually by the condominium board after budgeting yearly operating expenses and reserve fund contributions. The total amount required to cover the condominium’s expenses and contribute to the reserve fund is divided amongst the unit owners. Most commonly, how much you pay is based on the unit factor assigned to their specific unit. Unit factors are proportional to the size of the unit (the larger your unit, the higher your unit factor). Your board should supply you with yearly financial statements and a budget for the upcoming year that will support the required condo fee.

What is a RESERVE FUND and how is it used?

A reserve fund is basically a savings account(that capital replacement piggy bank we referred to earlier), that can only be used for replacement and non routine repairs of common elements of the condo that are the condominium corporations responsibility. In Alberta, all condominium corporations must establish and maintain a reserve fund (that big savings account) to cover the costs of its common property. A reserve fund study, report and plan determines the lifespan and cost of the elements of the condo that the condominium corporation will need to repair or replace in the future, to budget accordingly how much money will need to be contributed to the reserve fund every year. This reserve fund study and plan is required by Alberta law at least once every five years and should be available to owners to review. It is very important that purchasers (and owners!) understand the importance of the reserve fund, as these funds are built up over time and can have financial impact in the future if the plans are not followed.

Additional costs can occur.

Just like owning any other type of home, the unexpected can happen regardless of the best financial planning and maintenance. When the unforseen occurs (such a huge hail storm or the rising insurance costs that homeowners across North America are experiencing) If there are not enough money in the reserve fund or the operating budget, the condo corporation could charge a special assessment. This often comes as an unpleasant surprise because it means having to contribute an additional (sometimes large) sum all at once. Think of it this way. If you bought a home, and the hot water tank had just been replaced 2 years ago, based on average lifespan of a hot water heater you shouldn’t need to replace it for at least another 5-7 years. But if your hot water heater fails early- you as the home owner, would need to pay to have it repaired or replaced immediately (unless you like cold showers), even though it wasn’t in your budget. The same concept applies to condominiums.

Is the condominium corporation in a good position?

As a condition of your offer, you can have the advantage of looking at the reserve funds and all of the condo documents that are available such as reserve fund plans, financials, budgets, meeting minutes and bylaws. As a potential future owner, you should thoroughly review all of these documents to familiarize yourself with the ongoing business and financial position. To avoid surprises and reduce risk, we recommend you also have these documents looked at by a Condominium Document Analsyt that will review the facts and information found in the Condominium documents and create a simple to understand report for review.

Consider this…Owners of single family homes should set aside at least one percent of your home’s value every year for home maintenance. For example a $360,000 house, this works out to $3,600 per year, or $300 per month. This does not include utilities, like many condos. So if water, power or gas is included you need to factor that into what you could reasonably expect condo fee to cost. Also factor in any additional amenities. Does the condo you are considering have a gym, pool, workshop or other amenities that may save you $$$$ in outside membership fees? Regardless of what housing type you choose, costs to maintain, repair and insure must always be factored in. This is exactly what a condo fee is intended to do.

Is Condo Life for you?

Condo life can offer a Maintenance- FREE life style. If you would like to explore the Fort McMurray condo market and discuss whether a condominium is the right choice for you feel free to reach out to one of our experienced Lore Group Real Estate Professionals

If you’re considering Purchasing a Fort McMurray Condo, there are some awesome deals to be had right now; But how do you know you aren’t buying into a problem? Reviewing the condo documents is vitally important, as it is the only tool you have to assess the stability of the condominium corporation.

Once you find a condo you love, and are ready to make an offer, ensure a review of the documents is a condition in your offer to purchase. Buyers should read and do a thorough review of the documents themselves, but often the piles of documents can be overwhelming. Your Lore Group Real Estate Agent also recommends a professionally review, and don’t worry, our group can provide contacts for Company’s where reviewing pages and pages of documents is there specialty.

A Condominium Document Review can save you $1000’s of dollars. The Condo Document reviewer conducts an analysis of the reserve fund (the big savings account meant for common capital expenses), to determine the financial condition of the corporation. The professional reviewer also looks at bylaws and identifies items such as pet policies, age restrictions, insurance details and other items that may be important in deciding if the complex is a good fit for you. Meeting minutes are reviewed to ascertain whether any upcoming changes, issues or potential special assessments or increases in condo fees are have recently been discussed.

While there are no guarantees, having a review BEFORE you purchase will help give you confidence and PEACE OF MIND. The cost is around $400.00, but could SAVE YOU BIG DOLLARS AND STRESS IN THE FUTURE.

Have more questions about condos? Reach out to our team, we are happy to help 780-370-3325

What is the forecast for Fort McMurray’s housing market? As we enter the 3rd quarter of 2018, it’s cautiously optimistic for those both selling and buying a house in Fort McMurray, the active spring and summer markets suggest a steady path to recovery.

If you’re considering selling your Fort McMurray home, here is some positive news: Sale to list price ratios: Sellers are receiving an average of 95% of their list price thus far in the month of July and  number of sales are strengthening. You should be noticing more of those lovely red sold signs recently, as June posted the highest number of sales for Single Family Detached Properties so far in 2018, with nearly the highest since 2015. 70 Sales= a whopping 45.85% increase over 2017 numbers. Prices fell only an average of 2.5% year over year, with Inventory down year over year.

Pricing your home properly remains essential to gaining the highest and best price and a timely sale, and those that do are selling in very reasonable time frames with the average days on market at 92 days. To stay competitive, conside

r scrutinizing recent sales data for your street and neighbourhood (your Realtor can provide this data) and discuss with your Lore Group Real Estate Agent competitive pricing and marketing strategies.

Buyer confidence is noticeably returning to the Fort McMurray Real Estate Market, with an increase in 1st time home buyers entering the market and scooping up homes while prices have reached a level that is more affordable, renting no longer makes sense for many. There are generally plenty of options out there for a variety of home buyers and incomes. Interest rates remain attractive with Scotia’s Prime lending rate posts at 3.70%. With the expectation that mortgage rates will increase throughout the year, now is the time to take advantage and get pre-approval while rates are low!

What are the hot properties in Fort McMurray? Where can I find deals? The condo market saw the biggest decline, year over year as the average list price of an apartment condo in the month of June was $170,335; representing a 22.81% drop in pricing from June 2017. Condo life has never been more affordable. Vacant lots continue to move with prices falling 15% from May 2018. The average price of a city lot is in areas such as Stone Creek, North Parsons Creek, Beaconhill, Abasand and Waterways is $106,629. Saprae Creek Estate recently rolled back pricing on country residential 2 acre lots starting at $124,900. Keep an eye o

n the repo market, there is currently 45 Fort McMurray foreclosures and more anticipated in the coming year.

Oil has far exceeded what most experts said would happen this year with prices jumping past $71.00 a barrel however the Fort McMurray housing market has been slow to respond as investors continue to exercise caution.The housing market in Fort McMurray isn’t necessarily booming, but it’s not a weak market either. If you’re getting ready to buy or sell and would like more information contact one of The Lore Group, Coldwell Banker Fort McMurray experts to help guide you.

TIPS FOR SELLING YOUR HOME QUICKLY

Want a sold sign on your front lawn sooner? Here are some helpful Tips

• Ensure your home shows well, inside and outside. Eliminate clutter. Shovel the driveway, sidewalks and steps. Make sure every room has adequate lighting. Imagine that a special guest is visiting your home, and clean up and prepare accordingly.
• Get things fixed. You probably don’t have time for a major renovation. So just make sure everything in your home is in good working order. Deal with any obvious maintenance issues, such as a leaking faucet or a gate hanging precariously on one hinge. Having a pre-listing home inspection can help you identify items that need attention prior to putting your home on the market and save you from having to negotiate on home inspection items when a buyer brings an offer.
• Be realistic with price. If you set the listing price higher than the current market value of your home, then you’re not going to get many, if any, viewers. You want the list price to be attractive, which means listing at the current market value. Ask us for a Free Market Evaluation so you can better understand where your home should be positioned in the marketplace.
• Be flexible with viewing times. You want as many potential buyers as possible to see your home. Do your best not to restrict showings. Make sure your home is as “available” as possible for showings. This may cause you and your family some inconvenience, but the reward will be selling your property sooner.
• Work with a Lore Group real estate professional who understands the area and the local market. One of our knowledgeable and experienced Team members will be able to recommend a variety of strategies that will help sell your home faster.

There is no certain timeframe that your home with sell in. With these tips and a Comprehensive and Aggressive Lore Group Marketing Program you will certainly increase the chances that you will sooner and for a good price.