If you’re thinking of buying a home in the Kawartha Lakes area this winter, here are three things you need to know:
Offers with Conditions
Kawartha Lakes home sales have certainly changed since the spring rush, and I’m seeing more and more conditional offers being accepted. Prior to low interest rates and covid, It wasn’t uncommon for buyers to make an offer on a home with certain conditions, such as obtaining financing, selling their current home, or inspections. With rising interest rates and the uncertainty of selling your current home, it is important to carefully consider any conditions you include in your offer and to be prepared for the possibility that they may not be met.
Offering a Fair Price
When making an offer on a home, it’s important to strike a balance between getting a good deal and not low-balling the seller. Since the height of the market back in February 2022, there has been a steady decline in the average percentage a seller is receiving compared to list price, which now sits at 95.6%. A fair price is one that takes into account the condition of the home, its location, time on market and the current market conditions. It’s a good idea to do your research and get a sense of what similar homes in the area are selling for. When working with a real estate agent, they can help assess the current market value by providing recent comparable home sales and market trends.
Budgeting in Higher Costs
Buying a home is a significant financial commitment, and it’s important to be prepared for the various costs involved. In addition to the purchase price, you will need to budget for closing costs, legal fees, and other expenses. It’s also a good idea to consider the ongoing costs of owning a home, such as property taxes, utilities, insurance and maintenance. This is especially important when putting in an offer on a rural home that does not have municipal services. With rising interest rates, it is a good practice to estimate what your costs would be if rates were to rise beyond the mandated stress test of 2 percent. Make sure you have a clear understanding of your budget and what you can afford before making an offer.
Overall, buying a home in the Kawartha region this winter can be a great opportunity, but it’s important to be well-informed and prepared. Working with a knowledgeable real estate agent and doing your homework can help you make the right decision for you and your family.