It’s been more than two months since New Mortgage Rule Changes came to life and there has been a lot of speculation on how it would affect Real-estate Market. Naturally, if you are a seller you might be worried on how this will affect you and the ability for you to sell your home? The best way to calm yourself is to hire a trustworthy Real-estate Agent who is up to date with the latest market changes and everything that could potentially affect your property.
Is Your Potential Buyer Pre-Approved?
New changes might concern you because your potential buyers are now worrying if they can even be pre-approved and pass the new stress test for uninsured mortgages, meaning, mortgage consumers with down payments 20% or greater than their home price. These changes will affect first time home-buyers the most, since they can now afford 20% less houses than they could up until January 1st.
If your potential buyer is affected, you are affected as well. Taking this into consideration, you will have to make sure that the buyers who give you an offer for your property are pre-approved under the NEW RULES.
Let’s put it like this, you have a lovely family interested in your house, they seem like a perfect fit, you think you are all set and you’ve put your property on hold. Later on, you find out that your perfect buyer didn’t pass the new stress test, and actually isn’t able to buy your property. Your house has been off the market for some time now. You’ve wasted your time and energy. In this case, time was actually money, since you could have find other buyers while your house was on hold. Additionally, new potential buyers don’t like seeing a house on hold and then back to market, as they will suspect that something may be wrong with the property.
Your Agent can help you avoid mistakes like these. Professionals working with Real Estate know new rules in dept and know that it is crucial to check client`s status before agreeing on all the terms and putting your house off the market.
Should You Adjust The Price Of Your Home To The New Rules?
You want to be available on the market, but you don’t want to lose on the value, just because you want to catch all those first-time home buyers that will be mostly affected with these changes. Think about your priorities, and what your house has to offer.
At the end of it all, buyers also have their priorities and they won’t change them all because of these new changes. They will wait a little bit longer to save more money, or move on to a more affordable solution. If your home is smaller it will work better for the seniors, or first time home buyers. If a growing family is looking for a big home, your affordable price won’t make them buy the house that is too small. On the other hand, if you own a bigger property, you will have different set of clients interested in it.
This is why, once again, your Real-estate Agent is the person you should trust and consult with when creating a price for your property. They are the ones that have all the information and can find the optimal solution for you.
The point is, buyers won’t give up their dream house because of the new rules, they will just change their priorities a little bit, or wait a little bit longer, but they will still want to buy a home at the end of the day. As a seller you need to work with a professional who can help you find a way to a perfect buyer.
Whether you are looking to buy or sell in Barrie and surrounding areas, Michelle Weller is here to help you every step of the way. Contact Michelle today to get your information package emailed to you.