Real Estate Terms and Definitions Explained...

What are the following?

• Chattels - A "chattel" is an item of personal property that may or may not be connected to your home .Good examples of this are a washer,dryer,fridge,stove and dishwasher.
• Fixtures -"Fixtures" are items that have been permanently attached to the property in some way and have become part of the house,eg: Built-in shelving,wall-to-wall carpeting,light and plumbing fixtures.
• Adjustment Date - A date when property taxes,utility bills,condo fees that have been prepaid by the seller are pro-rated and paid to the seller by the buyer.
• Amortization Period - The number of years it takes to repay the entire mortgage,normally 25 years.
• Appraisal - A process undertaken by an independent appraiser hired by the bank to determine the value of the property and whether it meets lending criteria.This value may or may not match the purchase price of the home.
• Blended Payments - Equal payments made up of both principal and interest,paid each month during the term of the mortgage.The principal portion increases each month while the interest portion decreases.The monthly payment remains unchanged during the term of the mortgage.
• Bridge Financing - The granting of additional funds on a short term basis,using the equity in your current home as security.It can take the form of an unsecured loan or credit line.The actual amount that you can qualify for will depend on your financial situation and the time period.
• Subject To Clause - In Law also known as a condition precedent,an example would be "subject to financing".Once satisfied the condition precedent will "bind" the parties to the agreement;however,if the condition is not satisfied,no legal liability results.
• Easement - The right granted for access to or over another person's property for a specific purpose,such as a driveway or public utilities.
• Freehold Ownership  - Also known as "fee simple ownership".The owner of a freehold interest has full use and control of the land and buildings on it,subject to any rights of the Crown or local land use bylaws and other restrictions in place.
• Leasehold Ownership  - Is the right to use a residential property for a long but limited period of time.Also known as" leasehold interest",example single detached houses on indian reserves where you do not own an interest in the land component.Leasehold interests are commonly set for periods of 99 years or the less there of.depending on the remaining portion of the lease.
• Cooperative Ownership - In a cooperative form of ownership,each owner owns a share in a company or cooperative venture,where the company owns the property that contains a number of housing units.Individual shareholders are assigned a particular unit to reside.

   "BY OWNER" PITFALLS... 

SELLING PRIVATELY -  FOR SALE BY OWNER or (FSBO):

• Both parties (Buyer and Seller) are trying to save the same commission,but who really saves it? The Private Seller runs a high risk of selling below market value.  
• The type of Buyer that a "For Sale By Owner" attracks are usually bargain hunters /dreamers.Some Buyers may have other intentions aside from shopping for a home on their mind,ie theft,and other criminal intentions.  
• People shopping "By Owner" in many cases have been turned down by a financial broker or have not been qualified to purchase,or haven't enough money to buy,or do not qualify at all,so they avoid realtors and pursue "By Owners" as easy prey.
• Often uninformed Buyers dealing privately with Sellers can tie up a property for months and never consummate a sale,ie. "stringing the Seller along". 
• Most Private Sellers usually do a poor job exposing their property to prospective buyers.Most Buyers prefer to be represented by a Realtor® they trust, and fear buying directly from the Seller they don't know.
• Most Sellers prefer to deal with a specialist for advice and help when handling a large investment such as selling a home.Don't compromise your estate.Realtors follow a strict code of ethics and are governed by federal and provincial laws and standards of conduct set out to protect the public interest.
• Many Private Sellers can not differentiate between good lookers and legitimate buyers.Why be bothered by someone who can't buy?
• Many Private Sellers are unable to convert a Buyer's verbal offer to a properly written and enforcable contract of purchase and sale.Realtors are better trained to handle the negotiation process between Buyer and Seller. 
• Deposits from Buyers are better handled by a Realtor® (third party stakeholder).
• Private Sellers will have to be chained to their home and phone during the selling period,this can be very frustrating and inconvenient.Most Private Sellers tend to mishandle good prospects and pursue the bad ones. 

BUYING PRIVATELY- FOR SALE BY OWNER or (FSBO):

• Private Sellers often try to discourage Home Inspections in an attempt to hide defects or deficiencies relating to their property.
• Private Sellers often fail to provide Buyers with a written up-to-date Property Condition Disclosure Statement as to the condition of their home.This document usually forms part of the contract in most real estate transactions.
• Private Sellers often skip supplying rules and regulations,strata documents,mobile home park restrictions,home warranties,and tax liabilities to the Buyer.
• Private Sellers often skip supplying a Buyer with a copy of the Title Search pertaining to their property.This document reveals interests,charges,and liens that might be registered on title or to be registered on title that could affect the Buyer's use and enjoyment of the property,and completion of the sale.Examples include:easements,right of ways,liens,judgements,mortgages,and covenants etc...
• Private Sellers often fail to disclose to Buyer unregistered claims from individuals and or public bodies against the property being purchased.
• Buying a FSBO may result in the Buyer paying more than market value (too much) for the property.
• Verbal /handshake agreements struck between FSBO's often fail if not in written form,a simple change of mind from one of the parties is all it takes to derail a deal.This is also known as Buyer's or Seller's Remorse.A trained Realtor® can often overcome these issues.

If you are considering buying or selling a property privately reconsider your motives and hire a Real Estate Professional such as Michael or Murray Ferro at  One Percent Realty Ltd   and avoid all the pitfalls listed above.Our rates are the perfect solution for FSBO's.We treat both parties fairly.Contact us today to take advantage of our rates.Save Time and Money .

Email Us At: mferro@okanagan.net    or  Call Us Anytime: (250) 868-1728 / (250) 764-2156

SHOWCASE YOUR HOME WITH PRIDE...

Tips For A Faster Sale:(clean up,fix up,or toss out)

• Consider Renovations
• Make A Good First Impression
• Decorate For A Quick Sale
• Let The Sunshine In
• Make Small Repairs
• Remove Unnecessary Articles
• Keep Stairways Clear
• Bathrooms Must Sparkle
• Make Bedrooms Inviting
• Keep It Quiet
• Keep Pets Out
• Silence Is Golden
• Never Apologize For Your Home
• Do Not Sell Belongings To Buyers Before Home Purchase
• Do Not Oversell Features
• Three's A Crowd
• Stay In The Background