RE/MAX Escarpment Realty Inc.

English

Aldershot

Ancaster

Burlington

Dundas

Flamborough

Glanbrook

Haldimand County

Hamilton

Hamilton Mountain

Stoney Creek

Sara Petta

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Buyers

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First Time Buyers

First Time Sellers

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I was referred to Sara by a close friend of mine and she came highly recommended. The level of communication I experienced from our first phone call was second to none as she setup a call right away with me to best understand my situation and was able to shuffle her schedule to accommodate mine for a property viewing the same day as I was already in the city. Sara worked diligently in a tough sale market for my product and got my property sold when I really did not think that was going to happen. She is the sweetest woman and I cannot thank her enough for all of her hard work, not to mention the quality of photos and video work of the property itself. I cannot recommend Sara enough, she is a true professional!

100% CLUB

EXECUTIVE CLUB

Written by Sara Petta, Real Estate Broker | Re/Max Escarpment Realty Inc. You’ve thought long and hard, and decided - you want a change of scenery. Maybe it’s more space for the kids, a fenced yard for Max, a workshop in the country; or it could be less space, so you can travel south for the winter without a worry. No matter your motive, the goal is often the same. You want to move house with as little inconvenience as possible. The process of getting from point A to point B can look very different from one client to the next, and ultimately we must answer the question of should I buy or sell first?  Lets look at the pros and cons:  Buying First - For the particular buyer (but make sure your financing is in order!)  The majority of people need the equity in their current home to purchase a new home. When you buy first, with plans to sell later, you move forward with a number of assumptions: your home will sell before the closing date on the new home, the sale price will be enough to be approved for financing on the new purchase, and the market won’t drastically change. Although we can make educated predictions on these factors, there are no guarantees. This opens you up to potential risk if you aren’t prepared with a backup plan. So, ask yourself these questions: Can I carry two houses if my house does not sell before the closing date? Would I be approved for financing? Could I potentially rent the house, and keep it as an investment? If the answer to all three of these questions is no, the risk is high and you may want to consider selling first, or buying based on a condition of sale.  Selling First - Negotiate with strength! When you have a firm deal on your current home, shopping around for a home allows you to negotiate with strength. Your offer won’t need a condition of sale, making it more favourable to a seller, and much stronger if you happen to be in competition. You can shop with confidence knowing the exact sale price on your current home, and what the numbers look for financing approval on a purchase. Now, let’s look at the potential cons. When you sell first, you are committing to providing vacant possession of your residence to a buyer on a certain date, regardless if you’ve found a new place to live. If you are going this route, it is key to carefully consider the closing date. A longer closing of 90+ days is ideal for this situation, allowing you ample time to secure a new home or potentially bridge finance for a smoother move. Keep in mind, you can always ask for your preferred closing date when selling, but it may not be what you are offered in the end. So, ask yourself these questions: Can I usually find a handful of properties for sale that fit my criteria? ( Not super picky ) Do I have an alternative place to live if my closing dates do not line up?  If you answered yes to the questions above, selling first may be the best option for you. Another option may be to purchase based on a condition of sale.  Condition of Sale - An open deck  Exactly as it sounds - a condition of sale allows a purchaser to purchase a property, but will only firm up on said property if the sale of another property occurs. If a purchaser submits an offer based on a condition of sale, this does not mean they have to accept any offer, they have full control over what terms they will accept; for example: price or closing date. Buying based on a condition of sale creates an open deck of cards - before you firm up and make your final decision, you will know all the details of both contracts; your sale and your purchase. It sounds flawless, but we have to look at all angles. Condition of sale doesn’t work in all markets. In a strong sellers market, condition of sale offers can get put “at the bottom of the pile” since they are largely uncertain. Time limits and escape clauses on conditions of sale can also mean losing a property if you aren’t able to meet the necessary circumstances for you to firm up in time.  Ultimately, deciding if you should buy or sell first boils down to your specific circumstance plus the current market. As your realtor and advisor, we will weigh the pros and cons and decide what is best for you.  Notes From The Mortgage Professional Written by Brandon Woodward, Mortgage Broker | Bold Mortgage Group  When you are both buying and selling, there are a number of financial considerations that should be discussed with a mortgage professional to ensure you are informed of your options and limitations. 1. Is your current mortgage portable? Most lenders will offer to port your mortgage, which is essentially transferring your current mortgage term as is, to another property without change. This is more important now than ever before, as many clients have locked in fixed rates that are well below those available today. Typically clients are increasing their borrowing needs through this move, so you would also want to discuss options for blending your rate, or providing a 2nd mortgage to cover any additional borrowing needs in the move. 2. Are there any mortgage penalties or costs associated with the move? If you are not porting your mortgage to the new property, your mortgage will include a prepayment penalty. Most variable rate mortgages carry a simple three month interest penalty, however fixed rate terms are more often calculated by interest rate differential, which can result in penalties that are far higher than that of a variable rate mortgage. It is important to understand these in advance, so you aren’t hit with a surprise at closing, resulting in a shortfall in funds available to you from your sale. All mortgages would also include a standard discharge fee in addition to the penalty.  3. Is Bridge financing available? Bridge financing is required when you take possession of the new home, while still owning the previous home. This would allow you to access funds for the down payment on the purchase, before you have access to the proceeds from your sale. Bridge financing does require a firm sale on your home, so the lender knows there is a clear exit date to collect the funds they have advanced for down payment of the purchase. This is quite commonly used today, as it is convenient to hold both homes for 1-2 weeks to allow for a smoother transition, as opposed to closing the purchase and sale on the same day, limiting you to one day for the move. Bridge financing does have costs associated with it, so be sure to speak with your trusted mortgage professional to understand this, so you are better informed during the process.  Feel free to reach out to <a href="mailto:brandon@boldmortgagegroup.com">brandon@boldmortgagegroup.com</a> for any financing related matters. <a href="https://boldmortgagegroup.com/">https://boldmortgagegroup.com</a>

To Buy or Sell First?

<blockquote>"A goal without a plan is just a wish." Antoine de Saint-Exupéry.</blockquote>If homeownership is on your wish list, it is never too early to start taking steps to turn that wish into a goal and help future YOU purchase your first home.  Step 1: Maintain Good Credit Maintaining a good credit score lays the foundation for a future home purchase. What you do today with your credit is vital for future approval and attractive rates.  Here are some tips to maintaining good credit: <ul><li>If you must hold a credit card balance, be diligent with your payments. Whenever possible, pay in full, and always pay on time. If you have trouble remembering to make the minimum payments on your debts, set up auto payment. You can do this even if you intend to pay the full balance, just to make sure you never miss a payment.</li></ul> <ul><li>Pay attention to how much credit you have access to vs how much you use on a monthly basis. This is your credit utilization rate. For example if you have access to $10,000 on a credit card, and monthly you charge $9000.00 to said credit card. Your credit utilization rate is 90%. You want to try and keep this rate around 30% or less. </li></ul> <ul><li>Choose your credit cards wisely. Stick with 1 or 2 solid cards, and skip the department store cards. The rewards, although enticing aren’t worth the inquiries on your credit which can ultimately affect your score. It can also be hard to keep track of them, risking a missed payment. Avoid opening and closing accounts frequently. </li></ul> Step 2 : Automate Your Savings  To purchase a home you will need a downpayment and closing costs.  Down payment A downpayment is the amount of money you put towards the purchase of your home, your mortgage is the loan you receive to cover the rest of the purchase price. Saving for a downpayment can seem overwhelming given the price of homes today, so let’s break it down. The best way to save is to make it automatic. Run your numbers and figure out today what you can afford to contribute to your first home on a monthly basis. Every dollar counts. Set up an automatic savings program that will withdrawal the funds into your downpayment account on a regular basis. Once you’ve figured out your contribution amount, decide where the best place to grow your downpayment is.  Here are two options to consider for your downpayment savings account;  1. Home Buyers Plan - Allows a homebuyer to borrow RRSP contributions for downpayment  Read more about this program here:<a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html">https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html</a> 2. *Tax Free First home savings account - A tax free savings account for first time homebuyers  Read more about this program here:<a href="https://www.cpacanada.ca/en/business-and-accounting-resources/taxation/blog/2022/november/faqs-tax-free-first-home-savings-account">https://www.cpacanada.ca/en/business-and-accounting-resources/taxation/blog/2022/november/faqs-tax-free-first-home-savings-account</a> Another option that some may qualify for is, borrowing your downpayment. You can read more here;  First Time Home Buyers Incentive - A downpayment loan  <a href="https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive">https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive</a>Closing Costs No body likes surprise fees. So let’s get it all out there and list the expenses you can expect when buying a first home.  1. Lawyer Fees 2. Land Transfer Tax *First time homebuyers receive a rebate 3. Home Inspection4. Appraisal5. Final Adjustments6. Moving Costs7. PST on Mortgage Insurance  Need help estimating your downpayment requirements and closing costs? Reach out to the professionals at Bold Mortgage Group or use their handy calculator below to help set up your goals.  <a href="https://bit.ly/boldmortgagecalculator">https://bit.ly/boldmortgagecalculator</a>

Two Steps To Homeownership To Take Today

Sara is amazing: she knows exactly what you want and the communication is extremely quick and efficient. She is so knowledgeable and will go above and beyond for you. An amazing professional and human being, I highly recommend her!

<blockquote>"Sara Petta is a knowledgeable, personable, and effective communicator. We felt safe and at ease during the entirety of our search for our first home with her!"</blockquote><blockquote>"Sara far exceeded my expectations of a realtor. We had the joy of dealing with her on 2 separate occasions during our property search and she was so professional and knowledgeable in both scenarios for a freehold and condo search. I trusted her opinion and knowledge and believe she had our back every step of the way."</blockquote>

Working with Sara was wonderful! She found us our dream home very quick. Very responsive and helpful. We had a great experience and I would definitely recommend her to anyone else looking to buy or sell a home!