As Founder of the Wealth Trifecta in Victoria BC, and Licensed Real Estate Agent who is a member of the MacGreen Earth Friendly Real Estate program offered exclusively through Macdonald Realty, Aaron Hall has real life experience in working in an ever more paperless office.

“Paperless” is a big buzzword in our industry these days and there are options for Real Estate transactions to be completed in a digital world. There are Brokerages in North America using systems such as Nuance (http://www.realtynuance.ca/site/) that allow all aspects of the Brokerage to be run paperless, and I do know Agents who have sold property without printing a single sheet of paper.

Aaron Hall.

Setting price is often the first and most heavily discussed question from Buyers and Sellers throughout the real estate transaction. This makes perfect sense as most real estate transactions represent the largest single financial decision a person will make in a very long period of time. I have found that using accurate and current market data is the most successful approach to obtain the outcome you are looking for.

Market conditions are also a very large part of the decision making process and have significant impact of the approach we take in marketing property. For example, if the market is slow and you are interested in moving but no fixed date is attached to this move we may put the property on the market with expectations of selling within a 90-120 day window. For people who need to sell within 30 days in a slow market it is very important to research what has sold, what is currently for sale, and what has not sold in the recent past when deciding on an asking price. When I am consulting someone who is having trouble selling their property I always go through these same motions to find out what is the missing ingredient to the sale. Often times it is price, but almost as often it is an inaccurate presentation of the property that is steering people away.

Presentation of properties for sale is of paramount importance, often we have the property staged with furniture to help potential buyers visualize what the potential of the home is when the property is vacant.

I have found hiring a staging company when selling typical downtown condo is not as important than when selling a house, for the most part people seem to understand the purpose of each room in a condo without staging. Also when you factor in the additional cost of staging we see that it is not something that is prudent in this type of sale.

Hiring a Real Estate can be a tough question for many people who are considering a sale or purchase of real estate. The question of whether or not you need to hire a real estate agent is popular, and the answer is no. People choose to hire one with the intention of hiring a qualified person to guide and assist in the sale or purchase of their real estate. In my practice the consultation I offer is usually considered to be the most valuable aspect of my services, but if you are in a position to buy or sell a property without the help of a real estate agent there is nothing stopping you.

Often enough we see House For Sale Signs where home owners are selling their own property. I talk to these sellers when representing my buyers and the conversation seems to always include them telling me the reason they have not hired an Agent is they are trying to save the brokerage fee. Here is Victoria we see fees typically ranging from 3%-4%, but there are also some discount brokerages offering packages as low as $600. I am always up front and honest with my fee which is 3% of the gross + $3000. I feel this makes sure that everyone who works with me knows what kind of value they are receiving.

The best tip on finding the right Agent for you is to ask around within your family and groups of friends for recommendations. When I find work through recommendations of Family, friends, or past clients it helps me feel comfortable in offering service that is reserved for people who are close to me. Trust is a big part of my work, if I don’t have a trusting relationship with my client I am hindered in my role. If you are going to hire a real estate agent hire one you trust, and interview as many as you need to until find someone you are comfortable working with.

For further information, please do not hesitate to call/email.

Aaron Hall

Macdonald Realty Victoria

Founder at Wealth Trifecta

Phone: 250.361.6986

Email: aaron@wealthtrifecta.com

Website: www.wealthtrifecta.com

Many lenders have internal guidelines regarding interest rates they can offer to clients based on credit score. The difference between a decent credit score (generally 620 or higher in today’s market) or a low credit score (less than 620) determines if you are a candidate for a “prime mortgage rate” or “sub-prime mortgage rate.”  Prime mortgages rates are those rates you generally see being offering by various lenders online, in the branch or in print. However, if you credit score is low, then you maybe only eligible for sub-prime rates. Depending on the type of house you purchasing, the mortgage amount and the area it is located in, sub-prime mortgages can as much as 1% to 4% higher than Prime mortgage rates.

For example, a $350,000 mortgage with 30 year amortization and a 5 year fixed term at 3.50% equals a monthly payment of $1566/mo. 57,806

If your credit score is low and you qualify for a sub-prime mortgage, you pay as little as 5.00%, which would equal to $1867/mo. A difference of $301 Principle and Interest.

Assuming you don’t break your 5 year term and don’t make any lump sum payments your 5 year total interest cost on a 5.0% mortgage would be  $83,240.  A rate of 3.50% has a total 5 year interest cost of $57,806. This is a difference of $25,434.

You’d be paying an extra $25,434 because you didn’t have a high enough credit score to qualify.

So, how do you improve your score to avoid hefty interest charges?

First of all always make your minimum payment required of your credit facility such as credit cards or loans. Try to make the payment within the windows of payment opportunity to avoid any late charges and late payment recordings on your credit report.  How?:  Setup automatic pre-authorized payments from your bank account to your credit facility.

If your overall monthly payments are hindering you from qualifying for a loan, then try to apply for a consolidation loan which will lower your overall monthly payment. Make sure the consolidation loan is activated right away and pays off your existing debt. It takes up to 30-31 days (or the next payment cycle) before the new consolidation loan payment appears on your report and the other past credit facilities disappear. You will start to see your score improving

Finally, if you have the time to get a pre-approval allow the Mortgage expert to structure your outstanding loan payments in the manner that best fits the type of home you are purchasing. Managing your credit before the actual application is made is the key difference between an approval or not in most cases as well.

Hot tip to improve your credit score:  Order a copy of your credit score before you make your application and review the loan amounts and payments. If there are any errors, and there usually are (Canadian Student Loan departments I’m looking at you), then order an investigation from Transunion or Equifax. The investigation will look into the mistakes made by the lenders and will follow up with them to make sure they are erased from the report. For example, many Canadians apply for those “ 1 year do not pay interest  “furniture credit cards. Sometimes if you pay them off within the year the payment may not disappear from your credit report on time.

For further information, please do not hesitate to call/email.

Sean Dhillon

Mortgage Advisor, CIBC Mortgages and Lending

P.(250) 818 1943

F.(250) 727 0121

E. seandhillon@shaw.ca (personal)

E. sean.dhillon@cibc.com  (work)