Rarely in the Waterloo Region, do we ever hear of a home selling for less than asking price. In fact, most homes are selling for a significantly higher amount than their asking price.
Because of the higher home values, you should be prepared to have a larger down payment set aside, in the event that your bank appraiser doesn’t agree with the price you are going to pay.
For example, if you pay $500,000 for your home — but your bank appraises the home for $480,000, you will need to add $20,000 from your own or secondary source to make up the shortfall.
Aside from getting a mortgage, there are some other solutions available:
A) Secondary financing: Banks are not the only institutions that offer financing and mortgages. A good realtor will be able to point you in the right direction.
B) Family: Mother or Father, Brothers or Sisters, Aunts or Uncles, any kind of relatives!
C) Vendor Take-Back Mortgages.
Some of these options can be more expensive, but if you’re counting on the market continuing at the current pace of growth, it may be worth it!
If you have any questions about the current real estate market, the value of your home, or people who can help with financing – give me a call. I would be more than happy to discuss your situation – and come by your home and provide you with a FREE Home Evaluation!