3 Real Estate Fact #1
[00:00:00] Host Ryan Peterson: Get ready for three interesting real estate facts you should know coming up in this episode of Winnipeg's real estate podcast. Cue the music
[00:00:11] Bo Kauffmann - REALTOR: you're listening to the bone knows real estate podcast tips and advice for home buyers, sellers, and owners with award winning Remax agent Bo Kaufman.
[00:00:26] Host Ryan Peterson: Hello, I'm your host, Ryan Peterson. Welcome to another episode of Winnipeg's real estate podcast with my friend and real estate expert, Bo Kauffmann of Remax Performance Realty
[00:00:35] Bo Kauffmann - REALTOR: Hey Ryan thanks for the great intro and anybody who's listening to this will notice right away that there's a bit of a change in the format here.
Ryan and I did a series of episodes a few years ago that were called a real estate round table. And what I always liked about him was the little back and forth and two different voices talking. So I wanna recreate that here and I thank you, Ryan, for agreeing to do this with me.
[00:01:04] Host Ryan Peterson: My pleasure. It's great to be back Bo. All right. So let's get right into it with three different facts about real. Okay,
You must hear this first question a lot from home buyers. When my possession data is coming up, how do I get the keys and get into my new home
[00:01:09] Bo Kauffmann - REALTOR: All right. So it really depends on where you are.
I hear that a lot of places in the states and different provinces and the real estate agent actually has the key and meets you at your door, but here in Manitoba, it's all done through the lawyers. So here's what happens is about a week before you possession date, you the. Meet with your lawyer, you sign a bunch of papers.
You give him a suitcase full of money that he's gonna tell you, just how much to bring and you sign the papers and then you just sit back and wait. At the same time, the seller meets with their lawyer signs, papers, and gives him the keys. And then the day before possession. The lawyers talk to each other and exchange those two items.
The buyer's lawyer sends the money. The seller's lawyer sends the key. You get another phone call and the day before possession, you show up at your lawyers and he'll give you the key and with strict instructions not to go into the house. Until right at the time that stated on the offer. I remember,
[00:02:01] Host Ryan Peterson: Getting my first home in 2000 and yeah, it was a plain Manila envelope that I got the key in.
And honestly I was expecting a little bit more fanfare, what are you gonna do? You're still excited about the new home now. Bo is the date usually hard and fast or is there some flexibility, say a buyer wants to swing by and get some measurements to make sure that the furniture is gonna fit certain way.
[00:02:20] Bo Kauffmann - REALTOR: Okay. That's a really good question. Answer that question. The date is hard and fast. Now, if it's important to you to take some measurements or to go in for one more, look, make sure that you're a real estate agent. That's the buyer's real estate agent writes that into the offer because the seller does not have to let you back in until let's say it's nine o'clock and not Tuesday morning when you're taking possession, you don't have the right to go back in there.
If you, some people want to do not only measurements, but they also might wanna get a contractor to go through. They might wanna be ready to do a new kitchen, make sure you write that into the offer. And that way the seller when they agree to it, have to let you in.
[00:02:55] Host Ryan Peterson: worst they can say is no.
That's right. And it's not one of those things that's gonna make or break a deal or make you lose out on a house, right? Nope. That's right. Okay. Great now. Okay. Let's look at the other side of the equation. Do home sellers get their money right away when the keys are handed over?
[00:03:08] Bo Kauffmann - REALTOR: All right. So Manitoba again was one of the worst provinces until about six or eight years ago.
You could basically wait a month. For your money. So if you're possession it, if you're moving outta your house on August 15th, you probably didn't get the money until mid-September that's. Because here in Manitoba, the new owner, which is the buyer, their lawyer has to register that house with land titles office.
And that is a slow, arduous time consuming process. That also depends on whether the lawyers are on break or whether they're on holidays or how busy they are, et cetera, but it usually takes a month. There's a new system came into place. Actually the system's been around for a while. Manitoba just came on board with it a few years ago.
It's called the Western Canadian protocol, otherwise known just as protocol. And now you can get your money within a few days. So best case scenario. If you move out on the 15th, you might have the money on the 18th or 20th. But it can take a couple of weeks still.
[00:04:05] Host Ryan Peterson: I remember my last move. I ended up owning both homes for a couple of months with some bridge financing. I know I couldn't wait to get my money fast enough. When it finally sold.
Now Bo, is there a season or time of year when it's better to buy or to sell? What picks market does seem hot all the time, but there's ups and downs that can be predicted or taken advantage of.
[00:04:25] Bo Kauffmann - REALTOR: Oh you betcha who was it that was credited was saying when everybody else is buying, sell, when everybody else is selling buy, I think that was Warren buffet, but I'm not sure.
Certainly the spring is the best time to sell your house. Now that being the case, that also makes it the worst time to buy your house because you are pretty much guaranteed to be up against eight, 10 other people.
It seems like in our market here, everybody waits till the spring to go out and buy a house. Start the year fresh. Worst time to buy. Best time to buy is right now, that's be like late summer, early fall. Anybody who wanted and needed a house is moving right now to start, the school year for their kids, buyers have really taken a, a break right now, and there's a lot more inventory on the market.
So best time to buy is the late summer, early fall. And that's just the way it is in Winnipeg. That's always how it's always been. It's
[00:05:13] Host Ryan Peterson: a you really put yourself in more of a power position at the end of the summer as a buyer, because at that point they're desperate to move on to the next thing they
[00:05:21] Bo Kauffmann - REALTOR: have planned.
Oh, absolutely. And just think about it this way. If you're up against 10, 10 offers in the spring, your offer has to be clean. It has to be big, it has to be stand out. So now we actually get listings, come on the market where they've had one or two showings, not offers just showings in a week.
Wow. So it's definitely a great time to.
[00:05:40] Host Ryan Peterson: And you're probably likely waving a home inspection in the spring. Where you could get that luxury in the fall.
[00:05:43] Bo Kauffmann - REALTOR: That's right. Absolutely home inspection, better financing condition longer time to make a decision. So it's better all around
[00:05:51] Host Ryan Peterson: My wife and I are always keeping an eye on E saying Paul, and it seems rare when something goes up for sale.
What do you recommend to people that are in the market buyers that are in the market that want an. But there's not a lot really going on there. What can they do to get on the radar so that the first person in, when
[00:06:06] Bo Kauffmann - REALTOR: something pops. Okay. So the best thing to do is get ahold of a real estate agent, somebody, or somebody you've heard of, or somebody you've worked with in the past, get 'em to set up a search and they can do it by geography like geographical location.
So if you only want a house in a certain radius, right around Cher farm roads, or around hot, not or birds hill or whatever they can set up a search and anything that comes up. Comes directly to your computer and you can see the listing come fresh.
[00:06:31] Host Ryan Peterson: That's excellent. And fortunately, I know a great real estate guy who happens to be sitting across the table from me.
Okay. Thanks Ryan. before we sign off, what are the current mortgage rates doing?
[00:06:39] Bo Kauffmann - REALTOR: Ryan for that, I'm gonna turn to my mortgage expert. That's Mike Schroeder with mortgage architects. When we come right back, we'll be right back after this short announcement.
All right. We're here with Mike Schroeder of mortgage architects to talk about some of the lowest rates available at this point in time, which is like mid August, 2022.
Hi, Mike. How you doing? Hey, doing well with yourself. Excellent. All right, let's get right to the point. So you've got somebody that comes to you and says, Hey, I wanna buy a house. And I need a $300,000 mortgage. So what is the absolute lowest rate you can get?
[00:07:40] Mike Schroeder - Mortgage Expert: So lowest rate I have is a variable rate.
You're looking at about 3.8% effective today. And on a $300,000 mortgage gives you a pay of about $1,545 a month.
[00:07:51] Bo Kauffmann - REALTOR: And that's principle and interest taxes of course would be extra.
[00:07:55] Mike Schroeder - Mortgage Expert: Yes and that's on a 25 year amortization
[00:07:56] Bo Kauffmann - REALTOR: And that was 1545, correct? Yes. Okay. So now what if I'm nervous and I'm not the kind that wants to keep an eye on the mortgage rates every day. What are fixed rates right now?
[00:08:09] Mike Schroeder - Mortgage Expert: Youre looking at about4.59% and so same mortgage amount, same terms. You're looking at about 1675 a month.
[00:08:16] Bo Kauffmann - REALTOR: So that’s about $130 a month. Difference between the two. 130 for what some people might think is peace of mind, but of course there's ups and downs. There's a downside to being locked in for five years.
[00:08:26] Mike Schroeder - Mortgage Expert: At the end of the day, you want to have a full conversation with your lender. You want to go over your risk appetite, your credit, your income likely changes the next five years and get a solution customized for youy
[00:08:37] Bo Kauffmann - REALTOR: Risk appetite. That's gotta be the term or the day.
[00:08:42] Mike Schroeder - Mortgage Expert: absolutely
[00:08:43] Bo Kauffmann - REALTOR: absolutely gun to your head.
Where do you think rates are gonna go? Like right now, the variable is lower than the fixed. Do you think that's gonna stay that way? No, I don't.
[00:08:53] Mike Schroeder - Mortgage Expert: So there's the next bank account rate announcement's coming up in September. I believe it's September. The seventh. Most predictions are, is that the rate will increase that month.
Now it may increase by lower amount due to the last inflation numbers, but by whatever does increase. The gap between fixed and variable is gonna be reduced to a very slim margin. There are still other reasons to pick variable or fixed, and that gets down to your risk appetite. So all part of that bigger conversation.
[00:09:16] Bo Kauffmann - REALTOR: Thanks a lot, Mike. We'll talk to you next time. Anytime. Take care. Bye bye. All right. Ryan, I think that's it for this week.
[00:09:24] Host Ryan Peterson: It's been fun as always Bo and we've learned a few things about real estate this week until next time. This is Ryan Peterson with Bo Kaufman of Remax performance Realty, reminding you that you're never alone when you're buying or selling a home, as long as you tune in to the next episode of Winnipeg's real estate podcast, take care.
[00:09:41] Bo Kauffmann - REALTOR: All right. Take care. Byebye Ryan. I hope you've enjoyed listening to this episode as much as I've enjoyed creating it. Cause I really do love. If you found the information helpful, why not download my free podcasting app? That way you never missed another episode and I've made it super simple too.
Just go to Boknows.homes/apps. That's A P PS available for apple and Android devices. And finally, please give this podcast a five star rating again. We've made it super simple. Just go to love the podcast.com/boknows. Thank you so much for listening. Let's do this again next week. I.
You've been listening to Bo Kauffmann of Remax performance Realty. Are you thinking of buying or selling a house or a condo in Winnipeg? Call Bo at (204) 333-2202. Remember Bo knows real estate.
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