As a buyer, having a house appraise for less than you offered can feel like the end of the world. The deal can’t go through as is, so what are you supposed to do now? 

First, don’t stress out. Tons of buyers (and sellers) go through this every day, so you’re not alone. Remember that appraisals are an art, not an exact science. That means that there aren’t any set adjustments that appraisers make. Appraisers use their knowledge and experience to make a judgment about how much the house is worth in a fair market (not leaning towards the buyer or the seller).  

When the house appraises for less than you made an offer for, you’ll be looking at something called an appraisal gap. In most cases, a mortgage provider will only lend you the home’s appraised value. When you have an appraisal gap, that’s less than what you need to buy the home at the price you offered. For example, say you offered $350,000 on a house, but it only appraised for $300,000. That $50,000 is the appraisal gap, and chances are, your lender won’t lend you that money–they’ll only lend you $300,000 or the appraised value of the house. 

So what are you supposed to do if you find yourself in this situation? You have some options to look at. First, the seller can come down in price to the appraised value.

If they say no, you, the buyer, can pay the gap yourself. Or you and the seller can meet somewhere in the middle. 

If none of those options work and you’re just not able to come to a good agreement with the seller, you can back out of the contract. As long as you have an appraisal condition, you can always cancel the purchase contract as a last resort. 

An appraisal gap isn’t fun to deal with, I’ll be honest, but it’s not the end of the world. Even if the worst case scenario happens and you have to walk away from the deal, your agent will help you find a home that will be even better for you. 

The perfect home is out there, I promise, and I can help you find it! Just reply to this email and let’s get you a home that meets all your needs and wants.

Emmy is a performer! Thanks to her Stollerific team, Emmy was given the chance to walk again and shine like the star she is.

Since 2016, Emmy has been followed closely by her team at the Stollery to monitor a rare congenital deformity in her spine. After a successful spinal decompression surgery in 2019, she went home to recover. Unfortunately, a few days later, she popped one of the rods they placed during the surgery – effectively breaking her back. While performing her repair surgery, Emmy’s team discovered her hips needed to be fully repaired for her to be able to keep the rods in place. After two body cast changes, Emmy had a successful hip surgery.

Today, Emmy is able to twirl and dance, and her family is grateful to her whole team at the Stollery.

I am happy to be donating a portion of all my sales to the Children’s Miracle Network. Every single real estate transaction makes a lasting difference in the lives of sick children right in Lloydminster & Area.

Summer is here, and doesn’t it feel great? It’s time to bring that summer freshness inside and give your home a summer detox! Here are a few of my favourite things to do in the summer to get my home feeling clean and fresh for the rest of the season. 

– Buy plants as natural detoxifiers for cleaner air. Snake plants and spider plants are great for this and they really freshen up the look of a space. 

– Clean your air vents and replace your HVAC filter. Bonus? This will save you money on energy costs and help you conserve energy!

– Brighten things by cleaning your windows inside and out. Then open them up to let the fresh air in. 

– Use a vacuum with a HEPA filter to catch all the dust and allergens hiding in your carpet or on your floors. 

– Switch to all-natural cleaning products. Baking soda and white vinegar can replace so many of your cleaning products, which is awesome for your wallet. 

– Switch your dryer sheets out for reusable dryer balls. This is another tip that will save you money and help to conserve resources! I also love dryer balls because they make towels so soft and fluffy. 

Refreshing your home for the rest of the summer with green, clean products is a great way to detox your living space to make it healthier for you and your family. And the added bonus is that you’ll probably end up saving some money on top of feeling better!

If you want more tips like this, make sure you’re following me on social media! I post great info like this all the time–you don’t want to miss out!

Welcome to my monthly real estate market update for Lloydminster. Let us look at what happened with the real estate market last month.

Tune in for the Market 411…

55 Properties Sold in June of 2022.

The average selling price range was $338,551, with an average of 64 days on the market. 

THE WEEK IN MARKETS (IN EMOJI) ✂️ Not as bad as some recent weeks, but still not good: the S&P fell another 2%, and the TSX fell 1%. Bonds rallied, as investors lowered inflation expectations and ratcheted up recession fears. In fact, market pricing now implies that the BOC and the Fed will need to shift to cutting rates in the second half of 2023. In crypto, if you really want to know, Bitcoin and Ether both fell and are trading near 2022 lows. “WS” Is now the time to sell? Of course, it is. Feel free to contact me for a market evaluation.

Have you checked in on your home’s equity lately? Now is a great time to see what your equity looks like because, chances are, it’s increased! 

But let’s review what equity is before we jump into how you can find out how much you have. Equity in your home is how much money you have in your home–it’s the amount of your home that you actually own. The more equity the better because that means you’ll get more money from the deal when you sell your home!

Your equity increases over time for two reasons: you pay money into your mortgage and the value of your home increases. Because home values have been skyrocketing over the past couple of years, your home’s equity is probably more than the money you’ve paid into your mortgage. And that’s why you should check on your equity! 

Here’s how to do a quick and easy equity calculation. First, find your home’s current market value. You can check with your real estate agent to get an accurate valuation. If you just want a rough estimate, you can find an online estimate.

Next, look at your last mortgage bill and find how much you have left to pay on your mortgage. Once you have that number, you’ll just subtract that from your home’s current market value. 

The resulting number is the amount of your home that you actually own–how much you have in equity! For example, if your home is worth $350,000 right now, and you have $225,000 left on your mortgage, you would have $125,000 in equity. And the odds are good that the amount you have in equity is way more than you’ve made in mortgage payments. That’s the beauty of real estate–you can make money by doing nothing more than living in your home. 

If you want to talk about what to do with your home’s equity now that you’ve calculated it, just reply to this email!

Have you heard that interest rates are rising? Recently, the federal reserve raised interest rates to help curb
inflation. Experts are now projecting that standard interest rates will range from 3.5% to 4.5% in 2022.

For many buyers, this news can feel incredibly discouraging. Home prices are already high, but now you have
to pay higher interest rates on top of it, right?

Not so fast. Our interest rates right now are actually super low, especially when we compare them to the
interest rates of the 1970’s-2000’s.

Right now, you’re probably hearing a lot about the “good old days” of real estate. But for interest rates, those
good old days weren’t very good. Homebuyers in the 70’s were actually paying tons in interest with a rate of
11.05%, and even in 1980, the interest rates were 13.71% — that’s a giant number compared to today’s
rates. It’s just been the last decade or so that interest rates have started to go down.

So yes, interest rates are rising. But that’s no reason to be discouraged. When you compare those rates to
the interest rates your parents or grandparents had, you’re still getting a great deal!

My advice? Don’t let high interest rates stop you from buying a home. And if you’re able, try to lock in a low
interest rate now by buying a home and getting a fixed-rate mortgage.

However, if buying this year isn’t in the cards for you, don’t worry! Even if you buy a home when interest rates
are high, you can always refinance down the line when interest rates are low. When it comes to real estate,
it’s a good idea to keep an eye on interest rates. But don’t let them dictate whether you buy a house or not.

If you’re ready to buy a house and lock in low interest rates, feel free to reply to this message. I can get you in
touch with a great lender and start finding you the home of your dreams!

For most sellers, this is the big question when it comes to selling their house. How much money are they actually going to walk away with once the house is sold and the deal is closed? The money you get after the sale is called your net proceeds. That’s the profit from the home once you take out all the closing costs and other associated fees.

Luckily, it’s pretty easy for sellers to estimate what their net proceeds will be using a simple calculation! First, you’ll need to get your numbers ready. Your real estate agent can help with this if you need it!

• Selling Price: This number is what you think the house will sell for, AKA the purchase price. For example, let’s say the house sells for $350,000.
• Current Mortgage: This is how much you owe on your current mortgage. Let’s say that the amount you owe is $150,000.
• Prep Costs: This is the amount it will take to get your home ready for market including repairs. For example, let’s say this amount is
  $10,000.
• Closing Costs: These usually run around 9 – 13% of the sale price and include real estate agent commissions (for buyer and seller’s side). We’ll go with the higher end for our example and say this cost is $45,500.

Then, you simply plug those numbers into this equation: [selling price] – [remaining mortgage] – [prep costs] – [closing costs] = your net proceeds!

If you don’t want to do the math, there are several free calculators online that will do the math for you. Just Google “home sale calculator” for a shortcut.

Here’s an example using the numbers above:
$350,000 – $150,000 – $10,000 – $45,500 = $144,500. That means that after the sale is closed and you’re free and clear, you’ll walk away with $144,500. That’s a pretty sweet down payment!

Using this equation, you can find what your net proceeds will be, which makes knowing how much you can spend on your next home so much easier! For more help on selling your home and getting the most
money from your home, just reply to this email!

When it comes to selling a house, one of the most exciting parts is when the offers start rolling in. But then you’re faced with a problem. How do you choose the best offer?

Hint: the answer isn’t the offer with the highest purchase price.

To choose the best offer, keep these 4 factors in mind in addition to the purchase price.

1 Preferred financing method.
Some sellers will only consider cash offers right now, and that’s totally fine. Some sellers don’t care how the house is financed as long as they get money in their pocket by the end of the sale. If you have a strong preference on how the purchase of the house is financed, make sure to consider the financing method in your offers

2 Trust money deposit.
You want a buyer who really wants the house and has the funding to go through with the sale. Pay attention to the amount of Trust money deposit (the money that comes in with the original offer), because typically, the larger the amount of money put into Trust deposit, the more serious the buyer.

3 Conditions.
This is a big one. Sometimes offers will come in with a list of conditions that seems to go on for days. Generally speaking, you’ll want to avoid these offers, even if they offer a high purchase price. When buyers are really picky about conditions, they will usually find something wrong with the house and then try to bargain with you to get the purchase price down, making their original offer worthless.

4 Timeline.
As a seller right now, you have a lot of choice when it comes to timing. If you want to be out of the house super quickly, look for a timeline with less time before closing day. Or if you need time to find a new house after you sell, find an offer that has more time built in.

As you can see, the highest offer does not necessarily mean the best offer. There are several factors that you should consider before making your choice. And don’t worry, your agent will analyze each offer and provide recommendations on the best one.

For many buyers, mortgages can seem intimidating, confusing, and even a bit scary. Even if you’ve dealt with a mortgage before, it can be hard to know which mortgage type is the best for your situation. And that’s where I can help! Here’s your handy cheat sheet with several of the most popular loan types available to Canadians.

If you have 20% or more of the purchase price for a down payment chances are that’ll you’ll be able to apply for a traditional (conventional) mortgage. Depending on the lender you may have to have insurance on the home as well.

An open mortgage allows you to pay off part of the debt or pay it back in full without having to worry about any penalties. An open mortgage will often have term lengths ranging from six months to a year with interest rates on this type of mortgage being comparable to those of a closed mortgage.

When you first get a variable rate mortgage your payments calculated by the lender which includes interest and principal. These payments will remain consistent throughout the term of the mortgage. As the rare of the market changes, so will your mortgage rates. So, when the interest rates drop, you’ll notice that less of your payment will going to the interest with more coming off the principal.

Capped rate mortgages offer a variable rate that is capped by the lending institution. Markets will fluctuate with rates rising and falling but the lending institution offers a guarantee that you’ll never pay more than the capped interest rate. On average these mortgages will hit you with a penalty if you decide to pay your mortgage back in full.

If you’d like a little more stability in the type of mortgage you take on, the closed mortgage could be a viable option. With a closed mortgage you’ll be able to lock in your interest rate over the length of the loan. Bringing peace of mind with the benefit of lower rates than an open mortgage. If you feel like interest rates may increase, you’ll want to choose a loan with an extended term.

In a convertible mortgage, with a term of 6 months to a year you’ll receive a fixed rate with the options of locking in for an extended term or continue for a short term with a more flexible rate.

Simply put, reverse mortgages afford you the opportunity to transfer the equity in your home into cash value. You won’t have to worry about selling or leaving in your home in the process, but you’ll need to be at least 62 years of age to qualify for this type of mortgage. Depending on the age of a homeowner, the amount of money you can borrow will vary; the older the homeowner is, the more money they’ll be able to borrow.

There can be a few variations of the above loan types and some banks offer their own style of lending, but it all basically boils down to these 7 types of mortgages. The right loan for you is out there, but I know it can be confusing to know which one is best. That’s why I always recommend that my buyer clients work with a lender to see which mortgages will be the best choice. If you want to be connected to my favourite, trustworthy lenders, just reply to this email!

Even if you’re an amazing planner, moving can range from a mild headache to a huge nightmare. It’s best to go into a move knowing that things won’t always go according to plan and that things will get mixed up at some point. 

But you can make moving so much easier and more organized with these 3 tips!

Tip #1: Give each box a number. By numbering each box individually, you’ll be able to make sure that each box ends up in the right place. This is especially important if you’re not the one moving the boxes. And numbering the boxes makes tip #2 a breeze!

Tip #2: Make an inventory. You can do this in a notebook, make a spreadsheet, or use an app like BoxMeUp, but whichever way you do it, make sure you keep track of all your items and which boxes they end up in.

This is especially useful if you’re shipping any of your belongings or storing them for a long period of time. Just look at your inventory, and you’ll know where each item is stored!

Tip #3: Give each room a colour. Colour coding is an organizer’s best friend, and it’s so nice for moving. Giving each room a colour makes it so easy to get your items moved into their new rooms, and all you have to do is glance at the box to see where it goes! To colour code your boxes, get a different colour of packing tape for each room. This also makes finding the right boxes so easy if you have to store them. 

With these tips in your moving arsenal, you’re sure to have the most organized move of your life. And while moving won’t ever be as fun as buying and closing on a new home, you can make it as smooth as possible by keeping organized!

Need some help to find the perfect place to move into? Just reply to this email and I’ll help you out!

Whether you’re a new homeowner or have owned a home for decades, lowering your utility bill is one of the fastest ways to save money on your housing costs. But with electricity rates getting higher and higher, this can feel like an uphill battle. Here are my best tips on how to lower your bill just in time for summer air conditioning costs: 

– Get an energy audit. Most energy companies will do a free audit of your home to see where you can reduce your energy usage and save money. 

– Install dimmer switches. By reducing the amount of power the lighting takes, you’ll save energy and money. Bonus: your rooms will automatically feel much cozier. 

– Install ceiling fans. Ceiling fans have an upfront cost, but they’ll save you money by circulating the cool air throughout your rooms. 

– Change the HVAC filter regularly. When your HVAC filter is dirty, your air conditioner has to use more power to suck in the air. If you live in a hot area where the air conditioner is on for long periods of time, try changing the filter monthly. 

– Get regular maintenance for your HVAC. Save yourself from melting away because of a broken air conditioner and save money on energy by getting your HVAC system serviced each year. 

– Switch to LEDs. LED light bulbs use much less energy than other lights and they don’t put off much heat, which will decrease your air conditioning needs. 

– Add landscapes for shade. Spend a little money this summer putting in shady plants around your house. Your house will stay cooler, and you’ll reap the rewards for years to come!

Now that you’ve saved money on your electric bill, you can put that money somewhere more fun like a vacation or savings for a new home!