“ We have to prove that democracy still works ”
So, have you sold your house? What comes next isn’t always smooth navigation
Michael Margaritis just sold his 1.8 hectare property in Oldcastle, just south of Windsor, Ont., For $ 1.35 million. Suddenly he and his family were in a race against time to buy a new home. “I was a rich man with no home,” Margaritis said. He went from being a seller cashing in a hot market to a buyer trying to get a home in the same environment, a difficult transition that surprises sellers. Margaritis has submitted bids on four or five houses to no avail – and has resisted bidding wars, which he says are pushing house prices up unfairly. “It’s unethical or dirty,” he said, adding that he had been told, “If you don’t go up [in an offer], you will never get a house. We had to buy a house because we have to get out of here. Margaritis sold her property for $ 1.35 million, but struggled to find one to move into in a booming real estate market. (Katerina Georgieva / CBC) Eventually, he and his wife made an offer of $ 804,000 on a Windsor home listed at $ 700,000. On the day the offers were reviewed, he said, his real estate agent told him to go up to $ 850,000 to close the deal. Margaritis resisted, but ultimately went for $ 825,000 and the house was theirs – although Margaritis insists the house is not worth what he paid for. “I was a poor man when I came to this country, and I don’t like throwing away money, especially thousands, hundreds of thousands.” He said he bought this particular house because it was big enough to house his daughters and their spouses – he worries they may never be able to buy a house on their own, given the market. Funding issues What followed was another roadblock. He takes possession of the new home May 13, with his current home closing in late June, meaning he needed a bridging mortgage to help cover costs in the interim. Since he and his wife are retirees and together earn around $ 75,000, this has been a difficult process. Margaritis says it was stressful navigating the bridging mortgage he needed to make up the period between his current home’s closing date and his new one. (Katerina Georgieva / CBC) “With this money the bank can’t even look at you,” he said, despite having a number of other assets. eventually secured a short-term mortgage to cover the period between the closing dates, it was a stressful experience that left them feeling stranded. According to Damon Winney, president of the Windsor-Essex County Realtors Association, some of this stress could have been alleviated if the current home had been sold after the new home was purchased, to ensure the closing dates were in sync. Some sell, then find themselves stranded for renting Mortgage Broker Rasha Ingratta says that in the past it was always advisable to sell first. But this is reversed in the current climate. “Make sure you buy a house before you sell your house, as we find that a lot of people are selling their house. house – but [don’t] »Ingratta said. There are more declining sales than ever before. – Rasha Ingratta, Mortgage Broker She said a number of her clients sold their homes first, but unable to buy what they wanted with that money, are Rasha Ingratta, of Mortgage Intelligence, says she is seeing more sales drop than ever before. (CBC) Transition from seller to buyer Margaritis is stunned by the state of the market. “It’s easy to sell,” he says. “But when you buy, you will find that the money you have is probably not going to be enough.” He is frustrated that many homes are listed well below market value to gain more attention, suggesting it is to “fool” people. But Winney said that ultimately, realtors serve their clients by offering advice, never straining their hands. Damon Winney, president of the Windsor-Essex County Real Estate Association, says it’s rare for sales to fail, but it does happen. (CBC) “We can’t force them to do anything. We can just provide them with advice. If the seller and / or buyer wants to take our advice, it is in their best interest, the customer. Winney also recognized the difficult transition from seller to buyer. “Their euphoric high that they just got when they ‘just cashed in on the sale of their home, it’s a wonderful time,” he said. said. “But it’s the realization shortly after that now you’re in the mix with everyone. But what they have in their back pocket that a lot of people don’t have is knowing that ‘They have a lot of equity in the sale of their home. ”According to Ingratta, another growing problem is not all sales are working.“ There are more falling sales than ever before. ”Money goes through Winney said that it is rare for sales to drop, but it does happen. “When you put your heart and energy into ns buying and selling one at home, because it’s a very emotional process, when that happens it’s absolutely devastating for the parties involved, “said Winney. It’s a sellers’ market, which means the sell-first, buy-later strategy has shifted. (Katerina Georgieva / CBC) Funding is one of the main reasons a sale may not go through. A buyer can be funded for a certain amount, so they place a bid in that price range. If this offer is accepted at $ 500,000, for example, but following an appraisal the bank decides that the house is only worth $ 450,000, you will not get the fu All the necessary financing, leaving the buyer have to make up the difference. “And it’s tough sometimes when it’s, say, $ 50,000,” Ingratta said. She said it was difficult to encourage customers to put any kind of financing condition on their offers because it usually means killing any chance of getting the home. This is a risk not only for the buyer, but also for the seller. This forces them to consider whether to accept an offer well above the estimated market value, at the risk that it depends on a mortgage approval that could go wrong. What happens when a sale goes wrong? In cases where financing fails and the buyer withdraws, the seller retains the deposit and may elect to sue for damages. According to Ingratta, however, normally the house would be put back on the market and, in this climate, would likely sell for the same price or more. She said some mortgage brokers have access to their own systems to help them do a “desk appraisal” to see if putting an offer on a home is worth it by helping determine if it will be priced at. the offer. Ingratta advises her clients to do this before making an offer – particularly in a market where homes sometimes sell tens of thousands of dollars above asking price.