Jason Rustand: Answering your real estate questions — Part 2
A: Unfortunately, there is no crystal ball to determine where the housing market is going to go in the future. Predicting the future value of your home is challenging due to numerous variables, including economic conditions, local market trends, and changes in interest rates. To estimate your home’s future value, consider local market cycles and upcoming developments in your area that could impact its value. While factors like location and economic conditions are beyond your control, you can influence your home’s value through maintenance and upgrades. For current valuation, consult a local Realtor who can provide insights based on your property’s specific characteristics and market context. Ultimately, the best time to buy or sell is when it suits your individual needs. A: Title insurance is a type of insurance policy designed to protect property owners and lenders against potential issues related to the ownership of a property. It ensures that your ownership rights are secure and can provide peace of mind by covering legal fees and potential financial losses arising from title defects. Title insurance covers various risks such as: unknown liens, fraud and forgery, errors in public records, title disputes, survey errors, unknown lack of permits, encroachments, and zoning issues. It is typically purchased at the time of closing when you buy a property, but can also be added at any point while you own it. You can purchase through an insurance company or through your real estate lawyer, who can arrange it on your behalf. Consulting with a Realtor or lawyer can help you understand the specific benefits and costs of title insurance for your situation. A: Pre-qualification and pre-approval are two stages in the mortgage application process that differ in their depth of analysis and level of commitment from the lender. Pre-qualification involves borrowers providing basic financial information, such as income, assets, debts, and credit score, to the lender or mortgage broker. This information is used to give borrowers a preliminary estimate of how much they may be able to borrow. A pre-approval is a more rigorous and formal process involving a comprehensive review of the borrower’s financial situation, employment history, credit score, and debt-to-income ratio. The lender provides a conditional commitment to lend a specific amount, pending appraisal of the property and other final checks. Pre-approval carries more weight in real estate transactions as it demonstrates financial readiness and commitment to the sellers, making it beneficial for borrowers when making offers on homes. A: Realtors in Alberta commonly earn their compensation through commission-based structures, depending on the final sale price of a property. Seller Representation: When representing sellers, realtors sign a listing agreement outlining the terms of the listing, including the commission rate. If both a listing agent (representing the seller) and a buyer’s agent are involved in the transaction, the total commission is typically split between them. Buyer Representation: Buyers sign a buyer representation agreement with their realtor, detailing the services provided and any fee arrangements. Buyers typically do not pay their realtor directly; the seller covers the commission for both the listing agent and the buyer’s agent from the proceeds of the sale. Realtors are required to disclose their fees and commissions to their clients as part of their professional obligations. It’s crucial for clients to have clear communication with their realtor regarding fees, commission rates, and any associated costs upfront before entering into any agreements. Navigating the real estate market can be complex, but with the right knowledge and guidance, you can make informed decisions. We hope this column has answered some of your burning questions and provided valuable insights. If you have more questions or need personalized advice, don’t hesitate to reach out to the Jason Rustand Team. We are happy to help! The Jason Rustand Team, RE/MAX Real Estate serves with the highest level of integrity and excellence every time. For more real estate advice follow Jason Rustand Team on Facebook & Instagram, contact us at 780.919.0004, email: jrustand@remax.net, or visit our website at WeSellLeduc.com
