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Closing Day Terminology You Should Know

You have an accepted offer on your new home, completed the home inspection and received your clean letter of finance.  Now what?

Sometimes it’s just a simple as waiting for the all important closing day to arrive.

Closing day should be an exciting time for you. After all, you’re moving into your new home! The last thing you need is to be confronted with something you don’t understand to make the day stressful.

So here is a quick list of common closing day terminology you should know.

Final Walkthrough – On closing day you and your REALTOR® will do one final walkthrough the house just to make sure it’s in the same condition as the day you wrote your offer. This is typically done first thing in the morning and the house will generally close closer to 5pm

Disbursements –  This is the allocation of funds to the appropriate parties, such as the Vendor. Your lawyer will take care of this for you.

Possession – This is the moment on closing day when you are legally able to take possession of your new home. It’s usually when your REALTOR® or lawyer hands you the keys.

Title –  This is a legal document that identifies the property and its owner.

Closing costs –  These are expenses, excluding the selling cost of the property, that are due on closing day, such as legal fees, reimbursement for pre-paid utilities, utility deposits, insurance, and taxes.

Closing adjustments –  These are expenses pre-paid by the seller that need to be reimbursed on closing. Typical examples of this would be your property taxes or oil remaining in an oil tank.

Remember this is your important day.  Relax and embrace the huge milestone in your life!

Having a good lawyer, mortgage professional and REALTOR® will help make the day go smoothly for you and your family.

Speaking of a good REALTOR®, you have three here at your disposal?

Contact us today for all your St. John’s Real Estate needs.

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Should You Worry About The St. John’s Real Estate Market Fluctuations?

You turn on the television and watch a news story about real estate house prices going down in St. John’s.  Then you receive a flyer in the mail about a property around the corner that sold for a decent price. Next you read a newspaper article about the St. John’s real estate market on the upswing again.

It’s a little like being on a roller-coaster ride!

Unfortunately the ride isn’t much fun if you’re thinking of buying or selling a home. In fact, it can be very confusing and frustrating. You just don’t know if “now” is the right time to make a move.

In reality, the housing market has been fluctuating for decades. Yet, people sell their homes every day throughout the St. John’s Metro Area for good prices. As well, just as many people get into their next dream homes affordably.

When you hear news of market fluctuations, there are two important things to consider.

First of all, a lot of media information about the housing market is national, or at least regionally for bigger cities. If the housing market is trending up or down nationally, remember that it doesn’t necessarily mean that the St. John’s real estate market is doing the same. This can even be relative to some subdivisions.  (ie Southlands or Clovelly etc)

In fact, it’s entirely possible for housing prices to be rising in your neighbourhood while they are falling nationally, and vice versa.

Secondly, if you’re selling a current property while buying another home, then the net effect of market fluctuations may cancel out.

Say, for example, that the St. John’s market is on the upswing. You’ll probably be able to sell your current home for a good price. However, the home you purchase will likely also be priced to reflect the upswing.

The same holds true when the market is down.

All that being said, there are some circumstances in which you need to consider market fluctuations when deciding whether or not to make a move. A good REALTOR® will help.

Looking for a good REALTOR®? You have three to choose from.  Give us a call and we’ll be happy to answer all your questions.