What does Walk Score mean for a First Time Home Buyer

Walking is good for  health and savings

While I was showing homes  to my young couple clients, they asked me to get them a home with the lowest walk score. Heard this first time?! What is this walk score anyways? Most of us don’t know about it but believe me it is becoming a new concept in home buying or renting. Walk score is emerging as a new trend in the minds of people when they plan to buy/rent their first home. As you would have guessed, a walk score is a measure of closeness of many facilities close to your place of residence.  The walk score is measured over a scale of 0-100 with 100 being the best. A walkshed is defined as a distance from your place of living to the amenities like school, hospital, shopping centre/mall, arena, library, restaurants and eateries etc. A walkshed is believed to be less than 1 mile from your place of residence.

Walking is just a personal option. But, if Americans, as an example,  trade their cars for walking for at least 30 minutes each day, they might be able to reduce the carbon foot print by more than 58 million metric tonnes and 24 billion litres of gas. Isn’t that amazing? The world would be a better place to live in and enjoy.

All those amenities that lie within 1 mile (1.6 Kilometers) of distance are given the higher score while those beyond this are given zero scores. The culminating total of all such amenities together makes the walk score. A score of 90-100 could be termed as walker’s paradise where a resident doesn’t need a car to commute and meet daily needs.

Walk score is measured using  Google™ API and it has some limitations as well. The walk score doesn’t know about the topography of an area, might miss on a few amenities or places of interest like a newly opened Starbucks® or Tim Hortons® or a supermarket. You can always add these to the API to improve the score.  Walk score is only tells you how easy it is to live without a car.

Most of the newcomers to Canada  have difficulty getting a driver’s license which may take at least 8 months or more. Many newcomers can’t  buy a car for some time and want to save on commute expenses.

If you are a newcomer to Brampton, Mississauga or Greater Toronto Area, let me find you either a rental or a resale home with the highest walk score. You can save a lot of money and keep fit at the same time.

Sources
•Carter, Matt. "Gas prices pique interest in Walk Score." Inman News. 2008. http://www.inman.com/news/2008/06/25/gas-prices-pique-interest-in-walk-score
•Complete the Streets. http://www.completestreets.org/
•Forrest, Brady. "Neighborhood Leader Boards on Walkscore." O'Reilly Radar. 2008. http://radar.oreilly.com/2008/06/neighborhood-leader-boards-on.html
•"Frequently Asked Questions." The Walking Site. http://www.thewalkingsite.com/faq.html
•"Frequently Asked Questions." Walkable Communities, Inc. http://www.walkable.org/faqs.html
•­Slater, Dashka. "Walk the Walk." The Green Issue. The New York Times. 2008. http://www.nytimes.com/2008/04/20/magazine/20Act-t.html?_r=2&pagewanted=2&oref=slogin
•Smart Growth. http://www.smartgrowth.org/
•Steffen, Alex. "WalkScore and the Great Neighborhood Book." WorldChanging. 2007. http://www.worldchanging.com/archives/007055.html
•Walk Score. http://www.walkscore.com
•"Walking for fitness: How to trim your waistline, improve your health." Mayo Clinic. 2006. http://www.mayoclinic.com/health/walking/HQ01612
•"Walkscore.com." Environmental Building News. BuildingGreen.com. 2008. http://www.buildinggreen.com/auth/article.cfm?fileName=170319a.xml
•Weil, Richard. "Walking." MedicineNet. http://www.medicinenet.com/walking/article.htm

How to make sure you Really are in multiple offer situation? This could be a trap! Home Buyers, Beware!

Bidding war at Multiple offers

 I am in real estate for about 5 years now and have seen a lot of very interesting situations. The most significant of all is the multiple offer situation. The buyer likes a home and so does many others. The result; more than one offer on a property and all buyers and their agents pitting against each other, bidding war on and guess who's smiling? Definitely the seller and his listing agent. :-) This makes sense if you as a buyer are at the site and you see lots of car parked, whispers of other buyers with their agents or most secretive talks inside the cars. Even the most talkative and loudest person is speaking that is barely audible. Lol! In nutshell, no body wants the other buyer or his agent to get a wind of what he/she is offering and this makes perfect sane sense. My advise to all my buyer clients is to walk away from such situation. Why?  Well the only winner in this case is one and one only and that is the SELLER. All others lose! The one who gets the so called 'winning bid' and the others who can't make it. The winning bid buyer paid more than he should have from his hard earned money and in my personal opinion he did lose his many hard working hours, sacrifices of his family in making letting him spare time, away from his family and children and here in one go, he goes $5-20,000 over asking price. Not only this he is refrained from doing the most important diligence measure; the home inspection let alone putting him to risk of mortgage refusal and ultimately landing him trouble far serious than just getting the house.

The above scenario definitely tells you that there were more than one offer as you were witnessing all this activity. But now let me take you to a far more serious problem in buying a home.  Consider the following scene.

The home is listed for a while, say 60-90 days and suddenly you discover it, like it and ask your agent to put an offer. Then suddenly you hear from the listing agent that he has another offer on the property and the seller wants all the offers by fax/e-mail/any other means except physical presentation. Now what will you do? I advise a word of caution here.  Even if your agent suggests you to remove those important interest securing clauses like home inspection, mortgage, & re-visits to the property before closing, apart from offering a higher price, simply say NO or if you have a real interest in the house and it serves your long-term purpose, ask to be protected against the so called 'multiple offer' situation. Ask your agent to write a clause in the offer, if you agree on removing above conditions and pay more price than you were initially ready to pay, that would make sure that there indeed was another offer. The clause should give you a right to re-negotiate the offer is the listing agent couldn't prove existence of another offer/offers and keep your interest not just safe but I would say the safest.  I use this clause in such situation for all my  buyers that I heard from one of the training session at a convention and eventually fine tuned it for specific use. 

Many times such multiple offer scenes have been found to have been crafted and staged cleverly and it is not uncommon to fall for them. In summing up I would advise you:

1. Don't get attached emotionally to any property 
2. Walk away from multiple offer situation and look for another home. Maybe you find another great deal without making a big hole in your pocket
3. Ask your agent to take steps in the offer that leave no doubt about existence of another offer
4. Don't ever remove home inspection. Well if you are offer the highest price, what issue does the seller would have in allowing you to do the home inspection?! If not for 5 days, write the condition for 1 day. Most of the agents can provide a home inspector in as less as 2 hours and maximum of 24 hours and you will have the home inspection report at the site itself and finally
5. BEWARE! BEWARE!! & BEWARE!!!

Hope you buy a home and stay happy thereafter! For great resources don't forget to visit my website at www.quicksellnbuy.com.   Should you have any comments or questions, please feel free to post them.

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Never Buy a home without a home inspection

Never say yes till it is Inspected by certified inspector

Ontario’s hot housing market continues to spark bidding wars and, in many cases, buyers are being advised by agents to make “clean” offers to get the house they want. By 'Clean' offer means, no Home Inspection condition and no Finance Condition. How to make sure there really are multiple offers? Wait for my next blog or write me an e-mail.

Big mistake! I constantly hear stories from ‘successful’ home buyers, who bought without an inspection. They later uncovered major problems, many of which could have been identified with a proper inspection. This meant large repair bills and unfortunate lawsuits involving unhappy buyers, sellers and real estate agents.

The home inspection system is far from perfect, but it is the best way to safeguard your interest. It also helps to make you aware of different maintenance procedures for your home and acquaint you with each and every artery of the home you are buying.

Some of the things you get to know during home inspection are as follows:

1. Type of electrical wiring: the old homes may have a knob and tube wiring or the glass fuses. This might cause it a little harder to get home insurance or the rates could be higher
2. Old galvanized plumbing might be near the end of its life. Remember, addressing a plumbing problem could mean thousands of dollars
3. The type and condition of foundation: A cracked foundation might cost a fortune for a new buyer
4. Condition and work-ability of the windows
5. Age of the house: sometimes it might be difficult and is only approximated
6. Thermal imaging cameras with your home inspector will show you the moisture and condition of thermal insulation in the house
7. Type and condition of the roof
8. Air conditioner and Furnace and their condition. These cost a lot to the buyer

There are still more aspects to the home inspection. If you want to know them, please give me a call or drop me an email. Alternatively you can also contact me through my website by clicking here. 

In some cases the seller will conduct a pre-listing inspection and make a summary of the results available to any interested buyer. Real estate agents work with many home inspection firms, so they can normally arrange for an inspection for buyers within forty-eight hours.

So dear Home buyers, please do not get pressured into making an offer without a thorough home inspection for the home you are buying unless you are an investor and can take a risk. It is better to lose a home that has multiple offers on it rather than feel elated  as winner and then deflate when you have to pay your years' savings to get it in live-able condition. 

Know the Real Estate Terminology.

My next upcoming blog:

How to make sure you are really in to multiple offer situation? This could be a trap! Can't wait? Send me an e-mail or give me a call.

Inspired by and Includes some excerpts from the article written by Mark Weisleder

Read the original article

Building Credit- Buying Your First Home In Canada

Good credit is a big Asset in Canada

As a newcomer to Canada, it is important for you to understand how credit works and to build a good credit rating. The first step is to start building your credit history as soon as possible

Building Credit

When you apply for a new loan, you will hear most of the stuff like credit rating! Astonished!? This credit history of an individual plays a very big role in helping him buy big ticket purchases like real estate in Ontario, cars and the like.


What is credit history?

The credit  history means your shopping behaviour, personal spending habits and/or your payment history. In Canada and US, your credit rating affects on your credibility when you go for buying big purchases like a home or car or business financing. 

When you keep paying your credit card and other bills outstanding you keep on increasing your credit score.  The credit score is mathematical representation of your good economical behaviour.

Building Credit History

In order to help you build a credit history in Canada, you will need to apply for credit. One of the best ways to do this is to apply for a credit card. One of the challenges that most newcomers face is getting approved for a credit card. Since most newcomers do not have a credit history in Canada, finding an institution that will lend them money is difficult. As a result, building a credit history can be hard, at first.

The financial institutions, like banks, may give you a secured credit card at first. You should go for it as this is the easiest way to start building your credit. It gives you all of the advantages of a credit card, but requires that you set aside a certain amount of money or other cash-like asset to provide the bank with the security that you will pay the money back. For example, if the bank gives you a secured credit card with a spending limit of $1,000, you could set aside $1,000 in a short-term investment, which the bank will hold as security. Over time, you can build your credit history by paying your credit card bills on time, and eventually your credit rating should be high enough that you can confidently apply for and be approved for an unsecured credit card.When it comes to value and convenience, credit cards are a useful way to pay for everyday purchases—most retailers in Canada will accept them. There are also situations when a credit card may be the only way to pay: for example, when buying items online. Some services, such as car rentals, also require payment by credit card. So getting a credit card and managing payments can help in building your life in Canada.

Do you need any help?

If you need any help in applying for these credit cards, you can contact me through my website or give me a call.

For First Time Home Buyers in Ontario, Canada

Buying a home in Ontario  with the Right Real Estate Sales Representative
can be Exciting , Fun, and Assurance for life.

Buying a new home?
It doesn’t have to be hard. Buying your first home can be a very exciting time! With tons of things to know and learn however, it can seem overwhelming. Which is why Paul Cheema is doing his very best to simplify the whole process. What you want to know, what you need to know, and perhaps a few things you've never even considered.

Neighborhood and Type of House??

What neighborhood you’re interested in? Single detached or townhome? Square footage and upgrade packages? If you’ve never purchased a home before these are things you may never even know you had to think about.

Where do you want to live?

It may sound like a simple question but it seems to be the most obvious: where do you want to live? Consider the city’s convenience versus more relaxed rural settings. Suburbs versus downtown. As a rule, considering the needs of your family is the best way to decide where to live. In fact, a recent study by found that 90% of first-time buyers settled on the neighborhood where they wanted to live before choosing the actual home they wanted to buy.

What type of home to buy?

Once you know where you want to live you need to decide what you want to live in. Detached, semi-detached, townhome, condo? Semi-detached homes or townhomes are usually less expensive than comparably sized detached single family dwelling. If having neighbors close to you are OK then this is perfect. If you prefer a little more space to call your own however perhaps a detached home would be more to your liking. The Detached appreciate more in value than the Semi-detached because of more units sale compared to Semis.  Condos are great if you’re looking for extensive fitness and social amenities but remember, you pay for them in the initial cost and in the monthly condo fees, whether you use them or not.

Figuring out what you can afford

The easiest way is to figure out what you can afford is by examining your income, expenses, investments, savings and debt. When you do that, try to keep in mind inevitable expenses such as a wedding, new car, etc., etc.) And always keep a little extra for items such as legal fees, real estate agent fees, land transfer fees, and mortgage insurance to name but a few. To get an approximation of how much you would be paying, you can use these mortgage related calculators.

New home buyer's RRSP Plan

This program simply allows prospective homebuyers to borrow money from their own RRSP's to buy a home. Similar to a loan this money must be paid back within a specified time frame. You must be an RRSP holder, a resident of Canada and a first-time homebuyer to qualify. The plan allows you to withdraw up to $20,000 tax free from your RRSP to purchase your home, provided it is paid back within 15 years. If these funds are going to be used for a down payment they must have been deposited at least 90 days before you sign your agreement of purchase and sale. Both you and your spouse may withdraw up to $20,000 for a total of $40,000. To apply, talk to your bank or contact:

Canada Customs and Revenue Agency

1-800-959-8281, New home RRSP Plan

CMHC (mortgage insurance)

Many first-time buyers face unique financial challenges along the way. We know saving up for a down payment in these expensive times can be difficult, and every penny counts. Luckily there are a variety of programs available from both the provincial and federal governments to help simplify and make the process much easier.

For more info, speak to your bank or visiting CMHC website.

Home land transfer tax refund

This program applies to newly-built or Re sale (Old) homes and gives eligible purchasers a refund of their land transfer tax up to $2,000 based on the purchase price of their home. To be eligible, you and your spouse must be first-time home buyers.

For more information, ask Paul Cheema, Sales Representative, RE/MAX Professionals Inc., Brokerage at 647-333-2273 or contact the Ontario Ministry of Finance 1-800-263-7965

Whatever home you choose, whichever route you take, buying a new home is one of the most exciting and dynamic experiences of your life. So have fun and remember if you have any questions, the expert Paul Cheema is just a phone call away!

Visit my other blog sites for more valuable information:

• Mississauga, Ontario Real Estate, Updates and More
• GTA Condo market information
• Condo project launch in Mississauga, Toronto, & Neighbourhood
• Get information, Search Properties, Ask for reports and consultation before buying

It is easy to contact with Paul Cheema. To send him an e-mail click here.  Download CMHC booklet on What Newcomers Should Know